Anderson, B., was excused.

The Chief Clerk proceeded to read the Journals of the preceding days. Tomassoni moved that further reading of the Journals be suspended and that the Journals be approved as corrected by the Chief Clerk. The motion prevailed.

S. F. No. 1622 and H. F. No. 1749, which had been referred to the Chief Clerk for comparison, were examined and found to be identical.

Macklin moved that S. F. No. 1622 be substituted for H. F. No. 1749 and that the House File be indefinitely postponed. The motion prevailed.

S. F. No. 2067 and H. F. No. 2315, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.

Macklin moved that the rules be so far suspended that S. F. No. 2067 be substituted for H. F. No. 2315 and that the House File be indefinitely postponed. The motion prevailed.

S. F. No. 2267 and H. F. No. 2549, which had been referred to the Chief Clerk for comparison, were examined and found to be identical.

Ostrom moved that S. F. No. 2267 be substituted for H. F. No. 2549 and that the House File be indefinitely postponed. The motion prevailed.

S. F. No. 2698 and H. F. No. 2758, which had been referred to the Chief Clerk for comparison, were examined and found to be identical.

Orenstein moved that S. F. No. 2698 be substituted for H. F. No. 2758 and that the House File be indefinitely postponed. The motion prevailed.

The following communications were received:

February 15, 1996

The Honorable Irv Anderson

Speaker of the House of Representatives

The State of Minnesota

Dear Speaker Anderson:

It is my honor to inform you that I have received, approved, signed and deposited in the Office of the Secretary of State the following House Files:

H. F. No. 2079, relating to the city of New Market; permitting the city to incur debt not subject to the general debt limit.

H. F. No. 2308, relating to state government; providing a condition on participation in the state employee combined charitable campaign.

H. F. No. 2150, relating to liquor; authorizing the city of Stillwater to issue one additional on-sale license.

H. F. No. 2239, act relating to local government; allowing the city of Morristown to maintain and pay for certain electrical power outside the city.

Warmest regards,

Arne H. Carlson

Governor

The Honorable Irv Anderson

Speaker of the House of Representatives

The Honorable Allan H. Spear

President of the Senate

I have the honor to inform you that the following enrolled Acts of the 1996 Session of the State Legislature have been received from the Office of the Governor and are deposited in the Office of the Secretary of State for preservation, pursuant to the State Constitution, Article IV, Section 23:

                                    Time and          

S.F.         H.F.   Session Laws    Date ApprovedDate Filed

No.           No.    Chapter No.             1996      1996

2079 267 10:28 a.m. February 15February 15

2308 268 10:30 a.m. February 15February 15

1862 269 10:27 a.m. February 15February 15

2150 270 10:32 a.m. February 15February 15

2239 271 10:35 a.m. February 15February 15

Sincerely,

Joan Anderson Growe

Secretary of State

Kahn from the Committee on Governmental Operations to which was referred:

H. F. No. 1303, A bill for an act relating to bilingual communication services; requiring the Spanish-speaking affairs council and the council on Asian-Pacific Minnesotans to report on coordination with the department of administration; requiring all public agencies that deal directly with non-English-speaking people to provide information and services in the language of the non-English-speaking people; amending Minnesota Statutes 1994, sections 3.9223, subdivision 7; 3.9226, subdivision 7; and 15.441.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [COMMUNICATION SERVICES.]

Subdivision 1. [STATE AGENCIES; NON-ENGLISH-SPEAKING PEOPLE.] Every state agency that is directly involved in furnishing information to the public, in rendering services to the public, or in the enforcement of state laws shall identify the languages of the non-English-speaking people most frequently served by the agency. Each state agency shall appoint a person within the agency to serve as a liaison between the agency and the non-English-speaking communities in the state. The appointed liaison shall work in cooperation with the Spanish-speaking affairs council, the council on Asian-Pacific Minnesotans, the council on Black Minnesotans, the Indian affairs council, and other organizations that represent non-English-speaking people in the state, to identify the languages of non-English-speaking people most frequently served by the agency.

Subd. 2. [COMMUNICATION SERVICES PLAN.] Each state agency that is directly involved in furnishing information to the public, in rendering services to the public, or in the enforcement of state laws shall prepare a communication services plan to ensure provision of information and services in the languages spoken by a substantial number of non-English-speaking people in Minnesota as defined in Minnesota Statutes, section 15.441. The plan must indicate the current status of the agency's compliance with Minnesota Statutes, section 15.441, the means to improve that status, the current costs for providing those communication services, and an estimated cost of implementing each improvement.

Each agency shall submit its plan to the commissioner of administration and the attorney general by September 1, 1996.

Subd. 3. [REPORT.] The commissioner of administration and the attorney general shall review the reports submitted to them under subdivision 2 and shall comment on the agency communication services plans to the legislature by January 15, 1997."

Delete the title and insert:

"A bill for an act relating to bilingual communication services; requiring state agencies to appoint persons to serve as liaisons with non-English-speaking people served by the agencies; directing agencies to prepare communication services plans; requiring the attorney general and the commissioner of administration to review and comment on the plans."

With the recommendation that when so amended the bill pass.

The report was adopted.

Brown from the Committee on Environment and Natural Resources Finance to which was referred:

H. F. No. 1897, A bill for an act relating to forests; creating a program to restore the white pine; amending Minnesota Statutes 1994, section 89.37, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 89.

Reported the same back with the following amendments:

Page 1, line 10, after "cut" delete "or" and insert "by the commissioner or sold for cutting or harvesting on public land, except as approved by the commissioner for thinning to prevent disease."

Page 1, delete line 11

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Ways and Means.

The report was adopted.

Long from the Committee on Local Government and Metropolitan Affairs to which was referred:

H. F. No. 1922, A bill for an act relating to highways; authorizing cities to establish a municipal involvement process for certain trunk highway construction or reconstruction projects; providing for appointment of task forces for those projects and prescribing their powers; amending Minnesota Statutes 1994, sections 161.172; 161.173; 161.174; and 161.177.

Reported the same back with the following amendments:

Page 2, line 18, after the period, insert "The municipality must approve the task force's report before an appeal under section 161.177, subdivision 2, may be initiated."

Page 4, line 34, delete everything after "project" and insert "until the commissioner and the task force have reached an agreement concerning"

Page 7, line 27, delete "unless" and insert "until"

Page 7, line 28, delete "has adopted" and insert "and the task force have reached an agreement concerning"

Page 8, line 9, delete "Except in the case of projects"

Page 8, delete line 10

Page 8, line 11, delete the new language

Page 8, line 12, after the second "the" insert "task force established under section 161.172, subdivision 2, or"

Page 8, line 36, delete "unless" and insert "until"

Page 9, line 1, delete "has approved" and insert "reaches an agreement with the commissioner concerning" and before the period, insert "or the appeal process under sections 161.175 and 161.176 is completed"

Page 9, line 2, after "no" insert "task force established for the project under section 161.172,"

Page 9, line 3, after "municipality" insert a comma

With the recommendation that when so amended the bill pass.

The report was adopted.

Brown from the Committee on Environment and Natural Resources Finance to which was referred:

H. F. No. 1964, A bill for an act relating to game and fish; requiring a turkey stamp; setting a fee; directing use of proceeds; amending Minnesota Statutes 1994, sections 97A.075, by adding a subdivision; 97A.475, subdivision 5; and 97B.721.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1994, section 97A.055, subdivision 4, is amended to read:

Subd. 4. [ANNUAL REPORTS.] (a) By November 15 each year, the commissioner shall submit to the legislative committees having jurisdiction over appropriations and the environment and natural resources reports on each of the following:

(1) the amount of revenue from the following and purposes for which expenditures were made:

(i) the small game license surcharge under section 97A.475, subdivision 4;

(ii) the Minnesota migratory waterfowl stamp under section 97A.475, subdivision 5, clause (1);

(iii) the trout and salmon stamp under section 97A.475, subdivision 10; and

(iv) the pheasant stamp under section 97A.475, subdivision 5, clause (2); and

(v) the turkey stamp under section 97A.475, subdivision 5, clause (3);

(2) the amounts available under section 97A.075, subdivision 1, paragraphs (b) and (c), and the purposes for which these amounts were spent; and

(3) money credited to the game and fish fund under this section and purposes for which expenditures were made from the fund.

(b) The report must include the commissioner's recommendations, if any, for changes in the laws relating to the stamps and surcharge referenced in paragraph (a).

Sec. 2. Minnesota Statutes 1994, section 97A.055, subdivision 4a, is amended to read:

Subd. 4a. [CITIZEN OVERSIGHT COMMITTEES.] (a) The commissioner shall appoint committees of affected persons to review the reports prepared under subdivision 4 and other relevant information and make recommendations to the legislature and the commissioner for improvements in the management and use of money in the game and fish fund.

(b) The commissioner shall appoint the following committees:

(1) a committee to review the annual game and fish fund report and address general game and fish fund issues;

(2) a committee to address funding issues related to fishing;

(3) a committee to review the report on the small game license surcharge and the report required in subdivision 4, paragraph (a), clause (2), and address funding issues related to hunting;

(4) a committee to review the trout and salmon stamp report and address funding issues related to trout and salmon;

(5) a committee to review the report on the migratory waterfowl stamp and address funding issues related to migratory waterfowl; and

(6) a committee to review the report on the pheasant stamp and address funding issues related to pheasants; and

(7) a committee to review the report on the turkey stamp and address funding issues related to wild turkeys.

Sec. 3. Minnesota Statutes 1994, section 97A.075, is amended by adding a subdivision to read:

Subd. 5. [TURKEY STAMPS.] (a) Ninety percent of the revenue from turkey stamps must be credited to the wild turkey management account. Money in the account may be used only for:

(1) the development, restoration, and maintenance of suitable habitat for wild turkeys on public and private land including forest stand improvement and establishment of nesting cover, winter roost area, and reliable food sources;

(2) acquisitions of, or easements on, critical wild turkey habitat;

(3) reimbursement of expenditures to provide wild turkey habitat on public and private land;

(4) trapping and transplantation of wild turkeys; and

(5) the promotion of turkey habitat development and maintenance, population surveys and monitoring, and research.

(b) Money in the account may not be used for:

(1) costs unless they are directly related to a specific parcel of land under paragraph (a), clauses (1) to (3), a specific trap and transplant project under paragraph (a), clause (4), or to specific promotional or evaluative activities under paragraph (a), clause (5); or

(2) any permanent personnel costs.

Sec. 4. Minnesota Statutes 1994, section 97A.475, subdivision 5, is amended to read:

Subd. 5. [HUNTING STAMPS.] Fees for the following stamps are:

(1) migratory waterfowl stamp, $5; and

(2) pheasant stamp, $5; and

(3) turkey stamp, $5.

Sec. 5. Minnesota Statutes 1994, section 97B.603, is amended to read:

97B.603 [SMALL GAME PARTY HUNTING.]

While two or more persons are hunting small game as a party and maintaining unaided visual and vocal contact, a member of the party may take and possess more than one limit of small game, but the total number of small game taken and possessed by the party may not exceed the limit of the number of persons in the party that may take and possess small game. This section does not apply to the hunting of migratory game birds or turkeys, except that a licensed turkey hunter may assist another licensed turkey hunter for the same zone and time period as long as the hunter does not shoot or tag a turkey for the other hunter.

Sec. 6. Minnesota Statutes 1994, section 97B.721, is amended to read:

97B.721 [LICENSE AND STAMP REQUIRED TO TAKE TURKEY; TAGGING AND REGISTRATION REQUIREMENTS.]

(a) Except as provided in paragraph (b), a person may not take a turkey without a turkey license and a turkey stamp in possession.

(b) The requirement in paragraph (a) to possess a turkey stamp does not apply to persons under age 18.

(c) The commissioner may by rule prescribe requirements for the tagging and registration of turkeys.

Sec. 7. [EFFECTIVE DATE.]

This act is effective March 1, 1997, and applies to licenses issued beginning with the 1997 license year."

Delete the title and insert:

"A bill for an act relating to game and fish; requiring a turkey stamp; setting a fee; directing use of proceeds; amending Minnesota Statutes 1994, sections 97A.055, subdivisions 4 and 4a; 97A.075, by adding a subdivision; 97A.475, subdivision 5; 97B.603; and 97B.721."

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Ways and Means.

The report was adopted.

Munger from the Committee on Environment and Natural Resources to which was referred:

H. F. No. 2052, A bill for an act relating to game and fish; permitting the commissioner of natural resources to enter a reciprocal agreement with North Dakota for the issuance of youth small game licenses; modifying youth small game licensing provisions; amending Minnesota Statutes 1994, section 97A.045, by adding a subdivision; Minnesota Statutes 1995 Supplement, section 97A.451, subdivision 3.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1994, section 97A.015, is amended by adding a subdivision to read:

Subd. 25a. [GUARDIAN.] "Guardian" means a legal guardian of a person or a person age 18 or older who has been authorized by the parent or legal guardian to supervise the person.

Sec. 2. Minnesota Statutes 1995 Supplement, section 97A.451, subdivision 3, is amended to read:

Subd. 3. [PERSONS RESIDENTS UNDER AGE 16; SMALL GAME.] (a) A person resident under age 16 may not obtain a small game license but may take small game by firearms or bow and arrow without a license if the person is a resident is:

(1) age 14 or 15 and possesses a firearms safety certificate;

(2) age 13, possesses a firearms safety certificate, and is accompanied by a parent or guardian; or

(3) age 12 or under and is accompanied by a parent or guardian.

(b) A resident under age 16 may take small game by trapping without a small game license, but a resident 13 years of age or older must have a trapping license. A resident under age 13 may trap without a trapping license.

Sec. 3. Minnesota Statutes 1994, section 97A.451, is amended by adding a subdivision to read:

Subd. 3a. [NONRESIDENTS UNDER AGE 16; SMALL GAME.] (a) A nonresident under age 16 may obtain a small game license at the resident fee if the nonresident:

(1) possesses a firearm safety certificate or equivalent document issued by the state of residence; or

(2) if age 13 or under, is accompanied by a parent or guardian when purchasing the license.

(b) A nonresident under age 13 must be accompanied by a parent or guardian to take small game.

Sec. 4. Minnesota Statutes 1994, section 97B.021, subdivision 1, is amended to read:

Subdivision 1. [RESTRICTIONS.] (a) Except as provided in this subdivision, a person under the age of 16 may not possess a firearm, unless accompanied by a parent or guardian.

(b) A person under age 16 may possess a firearm without being accompanied by a parent or guardian:

(1) on land owned by, or occupied as the principal residence of, the person or the person's parent or guardian;

(2) while participating in an organized target shooting program with adult supervision;

(3) while the person is participating in a firearms safety program or traveling to and from class; or

(4) if the person is age 14 or 15 and has a firearms safety certificate.

(c) For purposes of this section a guardian is a legal guardian or a person age 18 or older that has been authorized by the parent or legal guardian to supervise the person under age 16."

Delete the title and insert:

"A bill for an act relating to game and fish; modifying the small game provisions for residents under age 16; allowing nonresidents under age 16 to obtain a resident small game license; modifying the definition of guardian; amending Minnesota Statutes 1994, sections 97A.015, by adding a subdivision; 97A.451, by adding a subdivision; and 97B.021, subdivision 1; Minnesota Statutes 1995 Supplement, section 97A.451, subdivision 3."

With the recommendation that when so amended the bill pass.

The report was adopted.

Munger from the Committee on Environment and Natural Resources to which was referred:

H. F. No. 2065, A bill for an act relating to the environment; repealing the used motor oil and used motor oil filter law; amending Minnesota Statutes 1995 Supplement, sections 239.011, subdivision 2; 239.54; 325E.10, subdivision 1; and 325E.11; repealing Minnesota Statutes 1995 Supplement, sections 325E.112; and 325E.113.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Laws 1995, chapter 220, section 142, is amended to read:

Sec. 142. [EFFECTIVE DATES.]

Sections 2, 5, 7, 20, 42, 44 to 49, 56, 57, 101, 102, 117, and 141, paragraph (d), are effective the day following final enactment.

Sections 114, 115, 118, and 121 are effective January 1, 1996.

Section 119 is effective September 1, 1996.

Sections 119, 120, subdivisions 2, 3, 4, and 5, and 141, paragraph (c), are effective July 1, 1996.

Section 120, subdivision 1, is effective December 31, 1999.

Section 141, paragraph (b), is effective June 30, 1999.

Sec. 2. [REPORT.]

By September 1, 1996, the retailers subject to Minnesota Statutes, section 325E.112, must provide to the environment and natural resource committees of the house of representatives and the senate, the office of environmental assistance, and the pollution control agency a plan for recycling at least 90 percent of all used motor oil and used motor oil filters being sold in the state. The plan must include:

(1) an explanation of the proposed system for collecting and recycling used motor oil and used motor oil filters;

(2) a clear assignment of responsibility and accountability for implementation;

(3) a strategy for educating the parties responsible for implementing the elements of the system;

(4) a strategy for educating the public on how it can recycle its used motor oil and used motor oil filters;

(5) proposed legislation, if necessary; and

(6) a description of government's role, if any.

The plan must be implemented by June 1, 1997, and the retailers must submit a report by December 31, 1997, to the environment and natural resources committees of the house of representatives and the senate, the office of environmental assistance, and the pollution control agency showing that reasonable compliance with the recycling goal has been achieved by that date. By December 31, 1999, the retailers must submit a report to the environment and natural resources committees of the house of representatives and the senate, the office of environmental assistance, and the pollution control agency on the amount of used motor oil and used motor oil filters being recycled.

If the commissioner of the pollution control agency finds before December 31, 1999, that compliance with this section has not been achieved, the commissioner may publish a notice in the State Register stating that compliance has not been achieved. The commissioner may publish a notice each time that compliance is not achieved. Ninety days after the date of publication of the notice, notwithstanding section 1, Minnesota Statutes, section 325E.112, subdivision 1, becomes effective, except that if the commissioner finds that substantial compliance has been achieved in the 90 days, the commissioner shall publish a notice in the State Register stating that compliance has been achieved, withdrawing the earlier notice, and rescinding the new effective date."

Delete the title and insert:

"A bill for an act relating to the environment; delaying the effective date for certain used motor oil and motor oil filter provisions; requiring a report; amending Laws 1995, chapter 220, section 142."

With the recommendation that when so amended the bill pass.

The report was adopted.

Carlson, L., from the Committee on Education to which was referred:

H. F. No. 2156, A bill for an act relating to education; clarifying education finance statutes; clarifying school transportation statutes; clarifying revenue used in calculation of community education and early childhood education reserve accounts; modifying name of high school graduation incentives program; repealing law addressing relationship between technical colleges and school districts; amending Minnesota Statutes 1994, sections 120.17, subdivision 9; 120.73, subdivision 1; 121.906; 124.195, subdivision 8; 124.2711, subdivision 6; 124.2713, subdivision 10; 124A.0311, subdivision 3; 124A.22, by adding a subdivision; and 256.736, subdivision 11; Minnesota Statutes 1995 Supplement, sections 120.064, subdivision 9; 120.17, subdivision 6; 120.181; 120.74, subdivision 1; 121.911, subdivision 5; 124.155, subdivision 2; 124.195, subdivision 12; 124.223, subdivision 4; 124.225, subdivisions 8l, 14, 16, and 17; 124.243, subdivision 2; 124.273, subdivision 1d; 124.314, subdivision 2; 124.3201, subdivisions 1 and 2; 124.3202; 124.323, subdivisions 1 and 2; 124.918, subdivision 2; 124A.22, subdivisions 10 and 13b; 124A.23, subdivision 4; 126.22, subdivisions 2 and 5; and 169.01, subdivision 6; Laws 1995, First Special Session chapter 3, article 1, section 61; article 2, section 51, subdivision 7; and section 53.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

Section 1. Minnesota Statutes 1995 Supplement, section 13.46, subdivision 2, is amended to read:

Subd. 2. [GENERAL.] (a) Unless the data is summary data or a statute specifically provides a different classification, data on individuals collected, maintained, used, or disseminated by the welfare system is private data on individuals, and shall not be disclosed except:

(1) pursuant to section 13.05;

(2) pursuant to court order;

(3) pursuant to a statute specifically authorizing access to the private data;

(4) to an agent of the welfare system, including a law enforcement person, attorney, or investigator acting for it in the investigation or prosecution of a criminal or civil proceeding relating to the administration of a program;

(5) to personnel of the welfare system who require the data to determine eligibility, amount of assistance, and the need to provide services of additional programs to the individual;

(6) to administer federal funds or programs;

(7) between personnel of the welfare system working in the same program;

(8) the amounts of cash public assistance and relief paid to welfare recipients in this state, including their names, social security numbers, income, addresses, and other data as required, upon request by the department of revenue to administer the property tax refund law, supplemental housing allowance, early refund of refundable tax credits,

and the income tax. "Refundable tax credits" means the dependent care credit under section 290.067, the Minnesota working family credit under section 290.0671, the property tax refund under section 290A.04, and, if the required federal waiver or waivers are granted, the federal earned income tax credit under section 32 of the Internal Revenue Code;

(9) to the Minnesota department of economic security for the purpose of monitoring the eligibility of the data subject for reemployment insurance, for any employment or training program administered, supervised, or certified by that agency, or for the purpose of administering any rehabilitation program, whether alone or in conjunction with the welfare system, and to verify receipt of energy assistance for the telephone assistance plan;

(10) to appropriate parties in connection with an emergency if knowledge of the information is necessary to protect the health or safety of the individual or other individuals or persons;

(11) data maintained by residential programs as defined in section 245A.02 may be disclosed to the protection and advocacy system established in this state pursuant to Part C of Public Law Number 98-527 to protect the legal and human rights of persons with mental retardation or other related conditions who live in residential facilities for these persons if the protection and advocacy system receives a complaint by or on behalf of that person and the person does not have a legal guardian or the state or a designee of the state is the legal guardian of the person;

(12) to the county medical examiner or the county coroner for identifying or locating relatives or friends of a deceased person;

(13) data on a child support obligor who makes payments to the public agency may be disclosed to the higher education services office to the extent necessary to determine eligibility under section 136A.121, subdivision 2, clause (5);

(14) participant social security numbers and names collected by the telephone assistance program may be disclosed to the department of revenue to conduct an electronic data match with the property tax refund database to determine eligibility under section 237.70, subdivision 4a;

(15) the current address of a recipient of aid to families with dependent children may be disclosed to law enforcement officers who provide the name and social security number of the recipient and satisfactorily demonstrate that: (i) the recipient is a fugitive felon, including the grounds for this determination; (ii) the location or apprehension of the felon is within the law enforcement officer's official duties; and (iii) the request is made in writing and in the proper exercise of those duties;

(16) the current address of a recipient of general assistance, work readiness, or general assistance medical care may be disclosed to probation officers and corrections agents who are supervising the recipient, and to law enforcement officers who are investigating the recipient in connection with a felony level offense;

(17) information obtained from food stamp applicant or recipient households may be disclosed to local, state, or federal law enforcement officials, upon their written request, for the purpose of investigating an alleged violation of the food stamp act, in accordance with Code of Federal Regulations, title 7, section 272.1(c);

(18) data on a child support obligor who is in arrears may be disclosed for purposes of publishing the data pursuant to section 518.575;

(19) data on child support payments made by a child support obligor may be disclosed to the obligee; or

(20) data in the work reporting system may be disclosed under section 256.998, subdivision 7.; or

(21) to the Minnesota department of children, families, and learning for the purpose of matching department of children, families, and learning student records to public assistance records to determine students eligible for free and reduced price meals, meal supplements, and free milk pursuant to United States Code, title 42, sections 1758, 1761, 1766, 1766a, 1772, and 1773; to produce accurate numbers of students receiving aid to families with dependent children as required by section 124.175; and to allocate federal and state resources that are distributed based on income of the student's family.

(b) Information on persons who have been treated for drug or alcohol abuse may only be disclosed in accordance with the requirements of Code of Federal Regulations, title 42, sections 2.1 to 2.67.

(c) Data provided to law enforcement agencies under paragraph (a), clause (15), (16), or (17), or paragraph (b), are investigative data and are confidential or protected nonpublic while the investigation is active. The data are private after the investigation becomes inactive under section 13.82, subdivision 5, paragraph (a) or (b).

(d) Mental health data shall be treated as provided in subdivisions 7, 8, and 9, but is not subject to the access provisions of subdivision 10, paragraph (b).

Sec. 2. Minnesota Statutes 1994, section 121.906, is amended to read:

121.906 [EXPENDITURES; REPORTING.]

Subdivision 1. [RECOGNITION.] School district expenditures shall be recognized and reported on the district books of account in accordance with this section.

There shall be fiscal year-end recognition of expenditures and the related offsetting liabilities recorded in each fund in accordance with the uniform financial accounting and reporting standards for Minnesota school districts. Encumbrances outstanding at the end of the fiscal year do not constitute expenditures or liabilities.

Deviations from the principles set forth in this section subdivision shall be evaluated and explained in footnotes to audited financial statements.

Subd. 2. [ACCOUNTING.] Expenditures for any legal purpose of the school district not accounted for elsewhere shall be accounted for in the general fund.

Sec. 3. Minnesota Statutes 1995 Supplement, section 121.911, subdivision 5, is amended to read:

Subd. 5. [DEFICIT FOR CAPITAL PROJECTS.] Upon approval by the commissioner of children, families, and learning, a district may incur a deficit in the capital expenditure fund reserve for operating capital account for a period not to exceed three years to provide money for capital projects. A description of the project and a financial plan to recover the deficit shall be approved by the commissioner prior to the initiation of the project.

Sec. 4. Minnesota Statutes 1995 Supplement, section 121.917, subdivision 4, is amended to read:

Subd. 4. (1) If the net negative undesignated unappropriated operating fund balance in all the funds of a school district, other than statutory operating debt pursuant to section 121.914, capital expenditure, building construction, debt service, trust and agency, and post-secondary vocational technical education funds as defined in section 124A.02, subdivision 25, calculated in accordance with the uniform financial accounting and reporting standards for Minnesota school districts, as of June 30 each year, is more than 2-1/2 percent of the year's expenditure amount, the district shall, prior to September 15 January 31 of the next fiscal year, submit a special operating plan to reduce the district's deficit expenditures to the commissioner of children, families, and learning for approval. The commissioner may also require the district to provide evidence that the district meets and will continue to meet all of the curriculum requirements of the state board.

Notwithstanding any other law to the contrary, a district submitting a special operating plan to the commissioner under this clause which is disapproved by the commissioner shall not receive any aid pursuant to chapters 124 and 124A until a special operating plan of the district is so approved.

(2) A district shall receive aids pending the approval of its special operating plan under clause (1). A district which complies with its approved operating plan shall receive aids as long as the district continues to comply with the approved operating plan.

Sec. 5. Minnesota Statutes 1994, section 124.09, is amended to read:

124.09 [SCHOOL ENDOWMENT FUND, APPORTIONMENT.]

The school endowment fund shall be apportioned semiannually by the commissioner, on the first Monday in March and October September in each year, to districts whose schools have been in session at least nine months. The apportionment shall be in proportion to the number of pupils in average daily membership during the preceding year; provided, that apportionment shall not be paid to a district for pupils for whom tuition is received by the district.

Sec. 6. Minnesota Statutes 1995 Supplement, section 124.155, subdivision 2, is amended to read:

Subd. 2. [ADJUSTMENT TO AIDS.] (a) The amount specified in subdivision 1 shall be used to adjust the following state aids and credits in the order listed:

(1) general education aid authorized in sections 124A.23 and 124B.20;

(2) secondary vocational aid authorized in section 124.573;

(3) special education aid authorized in section sections 124.32, 124.3201, and 124.3202;

(4) secondary vocational aid for children with a disability authorized in section 124.574;

(5) aid for pupils of limited English proficiency authorized in section 124.273;

(6) transportation aid authorized in section 124.225;

(7) community education programs aid authorized in section 124.2713;

(8) adult education aid authorized in section 124.26;

(9) early childhood family education aid authorized in section 124.2711;

(10) capital expenditure aid authorized in sections 124.243, 124.244, and 124.83;

(11) school district cooperation aid authorized in section 124.2727;

(12) assurance of mastery aid according to section 124.311;

(13) homestead and agricultural credit aid, disparity credit and aid, and changes to credits for prior year adjustments according to section 273.1398, subdivisions 2, 3, 4, and 7;

(14) attached machinery aid authorized in section 273.138, subdivision 3;

(15) alternative delivery aid authorized in section 124.322;

(16) special education equalization aid authorized in section 124.321;

(17) special education excess cost aid authorized in section 124.323;

(18) learning readiness aid authorized in section 124.2615; and

(19) cooperation-combination aid authorized in section 124.2725; and

(20) district cooperation revenue aid authorized in section 124.2727.

(b) The commissioner of children, families, and learning shall schedule the timing of the adjustments to state aids and credits specified in subdivision 1, as close to the end of the fiscal year as possible.

Sec. 7. Minnesota Statutes 1995 Supplement, section 124.17, subdivision 1d, is amended to read:

Subd. 1d. [FISCAL YEAR 1997 AFDC PUPIL UNITS.] AFDC pupil units for fiscal year 1993 and thereafter 1997 must be computed according to this subdivision.

(a) The AFDC concentration percentage for a district equals the product of 100 times the ratio of:

(1) the number of pupils enrolled in the district from families receiving aid to families with dependent children according to subdivision 1e; to

(2) the number of pupils in average daily membership according to subdivision 1e enrolled in the district.

(b) The AFDC pupil weighting factor for a district equals the lesser of one or the quotient obtained by dividing the district's AFDC concentration percentage by 11.5.

(c) The AFDC pupil units for a district for fiscal year 1993 and thereafter equals the product of:

(1) the number of pupils enrolled in the district from families receiving aid to families with dependent children according to subdivision 1e; times

(2) the AFDC pupil weighting factor for the district; times

(3) .67.

Sec. 8. Minnesota Statutes 1994, section 124.17, subdivision 1e, is amended to read:

Subd. 1e. [FISCAL YEAR 1997 AFDC PUPIL COUNTS.] AFDC pupil counts and average daily membership for subdivisions 1b and 1d shall be determined according to this subdivision:

(a) For districts where the number of pupils from families receiving aid to families with dependent children has increased over the preceding year for each of the two previous years, the number of pupils enrolled in the district from families receiving aid to families with dependent children shall be those counted on October 1 of the previous school year. The average daily membership used shall be from the previous school year.

(b) For districts that do not meet the requirement of paragraph (a), the number of pupils enrolled in the district from families receiving aid to families with dependent children shall be the average number of pupils on October 1 of the second previous school year and October 1 of the previous school year. The average daily membership used shall be the average number enrolled in the previous school year and the second previous school year.

(c) Notwithstanding paragraphs (a) and (b), for charter schools in the first three years of operation, the number of pupils enrolled from families receiving AFDC shall be those counted on October 1 of the current school year. The average daily membership used shall be from the current school year.

Sec. 9. Minnesota Statutes 1994, section 124.17, is amended by adding a subdivision to read:

Subd. 1f. [AFDC PUPIL UNITS.] AFDC pupil units for fiscal year 1998 and thereafter must be computed according to this subdivision.

(a) The AFDC concentration percentage for a district equals the product of 100 times the ratio of:

(1) the number of pupils residing in the district from families receiving AFDC according to subdivision 1g, paragraph (a), to

(2) the number of pupils in average daily membership according to subdivision 1g, paragraph (a), residing in the district.

(b) The AFDC pupil weighting factor for AFDC pupils residing in a district equals the lesser of one or the quotient obtained by dividing the district's AFDC concentration percentage by 11.5.

(c) The AFDC pupil units for a district for fiscal year 1998 and thereafter for each pupil enrolled in the district from a family receiving AFDC according to subdivision 1g, paragraph (b), equals the product of:

(1) the AFDC pupil weighting factor for pupil's district of residence; times

(2) .67.

Sec. 10. Minnesota Statutes 1994, section 124.17, is amended by adding a subdivision to read:

Subd. 1g. [AFDC PUPIL COUNTS.] (a) AFDC pupil counts and average daily membership for subdivision 1f, paragraph (a), shall be determined according to this paragraph.

(1) For districts where the number of resident pupils from families receiving AFDC has increased over the preceding year for each of the two previous years, the number of pupils residing in the district from families receiving AFDC shall be those counted on October 1 of the previous school year. The average daily membership used shall be from the previous school year.

(2) For districts that do not meet the requirement of clause (1), the number of pupils residing in the district from families receiving AFDC shall be the average number of pupils on October 1 of the second previous school year and October 1 of the previous school year. The average daily membership used shall be the average number of pupils residing in the district in the previous school year and the second previous school year.

(b) AFDC pupil counts for subdivision 1f, paragraph (c), shall be determined according to this paragraph.

(1) For districts where the number of pupils from families receiving AFDC enrolled in the district has increased over the preceding year for each of the two previous years, the pupils enrolled in the district from families receiving AFDC shall be those counted on October 1 of the previous school year.

(2) For districts that do not meet the requirement of clause (1), pupils enrolled in the district from families receiving AFDC shall be those counted on October 1 of the previous school year times one-half, plus those counted on October 1 of the second previous school year times one-half.

(3) Notwithstanding clauses (1) and (2), for charter schools in the first three years of operation, the number of pupils enrolled from families receiving AFDC shall be those counted on October 1 of the current school year.

Sec. 11. Minnesota Statutes 1994, section 124.195, subdivision 8, is amended to read:

Subd. 8. [PAYMENT PERCENTAGE FOR REIMBURSEMENT AIDS.] One hundred percent of the aid for the last fiscal year must be paid for the following aids: special education special pupil aid according to section 124.32, subdivision 6; special education summer school aid, according to section 124.32, subdivision 10, for the previous fiscal year must be paid in the current year.

Sec. 12. Minnesota Statutes 1995 Supplement, section 124.195, subdivision 12, is amended to read:

Subd. 12. [AID ADJUSTMENT FOR TRA CONTRIBUTION RATE CHANGE.] (a) The department of children, families, and learning shall reduce general education aid or any other aid paid in a fiscal year directly to school districts, intermediate school districts, education districts, education cooperative service units, special education cooperatives, secondary vocational cooperatives, regional management information centers, or another. Any district or cooperative unit providing elementary or secondary education services that is prohibited from receiving direct state aids by section 124.193 or 124.32, subdivision 12, is exempt from this reduction. The reduction shall equal the following percent of salaries paid in a fiscal year by the entity to members of the teachers retirement association established in chapter 354. However, salaries paid to members of the association who are employed by a technical college shall be excluded from this calculation:

(1) in fiscal year 1991, 0.84 percent,

(2) in fiscal year 1992 and later years, the greater of

(i) zero, or

(ii) 4.48 percent less the additional employer contribution rate established under section 354.42, subdivision 5.

(b) In fiscal year 1991, this reduction is estimated to equal $14,260,000.

Sec. 13. Minnesota Statutes 1995 Supplement, section 124.2131, subdivision 1, is amended to read:

Subdivision 1. [ADJUSTED NET TAX CAPACITY.] (a) [COMPUTATION.] The department of revenue shall annually conduct an assessment/sales ratio study of the taxable property in each school district in accordance with the procedures in paragraphs (b) and (c). Based upon the results of this assessment/sales ratio study, the department of revenue shall determine an the ratio of the aggregate equalized net tax capacity to the three-year average sales ratio for the various classes of taxable property in each school district, which tax capacity shall be designated as the adjusted net tax capacity. The adjusted net tax capacities shall be determined using the net tax capacity percentages

in effect for the assessment year following the assessment year of the study. The department of revenue shall make whatever estimates are necessary to account for changes in the classification system. The department of revenue may incur the expense necessary to make the determinations. The commissioner of revenue may reimburse any county or governmental official for requested services performed in ascertaining the adjusted net tax capacity. On or before March 15 annually, the department of revenue shall file with the chair of the tax committee of the house of representatives and the chair of the committee on taxes and tax laws of the senate a report of adjusted net tax capacities. On or before June 15 annually, the department of revenue shall file its final report on the adjusted net tax capacities established by the previous year's assessments and the current year's net tax capacity percentages with the commissioner of children, families, and learning and each county auditor for those school districts for which the auditor has the responsibility for determination of local tax rates. A copy of the report so filed shall be mailed to the clerk of each district involved and to the county assessor or supervisor of assessments of the county or counties in which each district is located.

(b) [METHODOLOGY.] In making its annual assessment/sales ratio studies, the department of revenue shall use a methodology consistent with the most recent Standard on Assessment Ratio Studies published by the assessment standards committee of the International Association of Assessing Officers. The commissioner of revenue shall supplement this general methodology with specific procedures necessary for execution of the study in accordance with other Minnesota laws impacting the assessment/sales ratio study. The commissioner shall document these specific procedures in writing and shall publish the procedures in the State Register, but these procedures will not be considered "rules" pursuant to the Minnesota administrative procedure act. For purposes of this section, sections 270.12, subdivision 2, clause (8), and 278.05, subdivision 4, the commissioner of revenue shall exclude from the assessment/sales ratio study the sale of any nonagricultural property which does not contain an improvement, if (1) the statutory basis on which the property's taxable value as most recently assessed is less than market value as defined in section 273.11, or (2) the property has undergone significant physical change or a change of use since the most recent assessment.

(c) [AGRICULTURAL LANDS.] For purposes of determining the adjusted net tax capacity of agricultural lands for the calculation of adjusted net tax capacities, the market value of agricultural lands shall be the price for which the property would sell in an arms length transaction.

(d) [FORCED SALES.] The commissioner may include forced sales in the assessment/sales ratio studies if it is determined by the commissioner that these forced sales indicate true market value.

(e) [STIPULATED VALUES AND ABATEMENTS.] The estimated market value to be used in calculating sales ratios shall be the value established by the assessor before any stipulations resulting from appeals by property owners and before any abatement unless the abatement was granted for the purpose of correcting mere clerical errors.

(f) [SALES OF INDUSTRIAL PROPERTY.] Separate sales ratios shall be calculated for commercial property and for industrial property. These two classes shall be combined only in jurisdictions in which there is not an adequate sample of sales in each class.

Sec. 14. Minnesota Statutes 1994, section 124A.02, subdivision 25, is amended to read:

Subd. 25. [NET UNAPPROPRIATED OPERATING FUND BALANCE.] "Net unappropriated operating fund balance" means the sum of the fund balances in the general, transportation, food service, and community service funds minus the balances reserved for statutory operating debt reduction, bus purchase, severance pay, taconite, reemployment insurance, maintenance levy reduction, operating capital, disabled access, health and safety, and encumbrances, computed as of June 30 each year.

Sec. 15. Minnesota Statutes 1994, section 124A.029, subdivision 4, is amended to read:

Subd. 4. [PER PUPIL REVENUE OPTION CONVERSION.] A district may, by school board resolution, request that the department convert the levy authority under section 124.912, subdivisions 2 and 3, or its current referendum revenue, excluding authority based on a dollar amount, authorized before July 1, 1993, to an allowance per pupil. The district must adopt a resolution and submit a copy of the resolution to the department by July 1, 1993. (a) The department shall convert a each district's referendum revenue authority for fiscal year 1995 2002 and later years to an allowance per pupil unit as follows: the revenue allowance equals the amount determined by dividing the district's maximum revenue under section 124A.03 or 124.912, subdivisions 2 and 3, for fiscal year 1994 2001 by the district's 1993-1994 2000-2001 actual pupil units. A district's maximum revenue for all later years for which the revenue is authorized equals the revenue allowance times the district's actual pupil units for that year. If a district

has referendum authority under section 124A.03 and levy authority under section 124.912, subdivisions 2 and 3, and the district requests that each be converted, the department shall convert separate revenue allowances for each. However, if a district's referendum revenue is limited to a dollar amount, the maximum revenue under section 124A.03 must not exceed that dollar amount. If the referendum authority of a district is converted according to this subdivision, and the question on the referendum ballot did not provide for an expiration date, the authority shall expire according to section 124A.0311.

(b) The referendum allowance reduction shall be applied first to the authority with the earliest expiration date.

Sec. 16. Minnesota Statutes 1994, section 124A.03, subdivision 2b, is amended to read:

Subd. 2b. [REFERENDUM DATE.] In addition to the referenda allowed in subdivision 2, clause (a), the commissioner may authorize a referendum for a different day.

(a) The commissioner may grant authority to a district to hold a referendum on a different day if the district is in statutory operating debt and has an approved plan or has received an extension from the department to file a plan to eliminate the statutory operating debt.

(b) The commissioner may grant authority for a district to hold a referendum on a different day if: (1) the district intends to conduct a bond election under chapter 475 on that same day; and (2) the proceeds of the referendum are intended to provide only additional operating revenue necessitated by the facility for which bonding authority is sought.

(c) The commissioner must approve, deny, or modify each district's request for a referendum levy on a different day within 60 days of receiving the request from a district.

Sec. 17. Minnesota Statutes 1994, section 124A.03, subdivision 3b, is amended to read:

Subd. 3b. [FISCAL YEAR 1997 REFERENDUM ALLOWANCE REDUCTION.] For fiscal year 1997, a district's referendum allowance under subdivision 1c is reduced by the amounts calculated in paragraphs (a), (b), (c), and (d).

(a) The referendum allowance reduction equals the amount by which a district's supplemental revenue reduction exceeds the district's supplemental revenue allowance for fiscal year 1993.

(b) Notwithstanding paragraph (a), if a district's initial referendum allowance is less than ten percent of the formula allowance for that year, the reduction equals the lesser of (1) an amount equal to $100, or (2) the amount calculated in paragraph (a).

(c) Notwithstanding paragraph (a) or (b), a school district's referendum allowance reduction equals (1) an amount equal to $100, times (2) one minus the ratio of 20 percent of the formula allowance minus the district's initial referendum allowance limit to 20 percent of the formula allowance for that year if:

(i) the district's adjusted net tax capacity for assessment year 1992 per actual pupil unit for fiscal year 1995 is less than $3,000;

(ii) the district's net unappropriated operating fund balance as of June 30, 1993, divided by the actual pupil units for fiscal year 1995 is less than $200;

(iii) the district's supplemental revenue allowance for fiscal year 1993 is equal to zero; and

(iv) the district's initial referendum revenue authority for the current year divided by the district's net tax capacity for assessment year 1992 is greater than ten percent.

(d) Notwithstanding paragraph (a), (b), or (c), the referendum revenue reduction for a newly reorganized district is computed as follows:

(1) for a newly reorganized district created effective July 1, 1994, the referendum revenue reduction equals the lesser of the amount calculated for the combined district under paragraph (a), (b), or (c), or the sum of the amounts by

which each of the reorganizing district's supplemental revenue reduction exceeds its respective supplemental revenue allowances calculated for the districts as if they were still in existence for fiscal year 1995; or

(2) for a newly reorganized district created after July 1, 1994, the referendum revenue reduction equals the lesser of the amount calculated for the combined district under paragraph (a), (b), or (c), or the sum of the amounts by which each of the reorganizing district's supplemental revenue reduction exceeds its respective supplemental revenue allowances calculated for the year preceding the year of reorganization.

Sec. 18. Minnesota Statutes 1994, section 124A.03, is amended by adding a subdivision to read:

Subd. 3c. [REFERENDUM ALLOWANCE REDUCTION.] For fiscal year 1998 and later, a district's referendum allowance for referendum authority under subdivision 1c is reduced as provided in this subdivision.

(a) For referendum revenue authority approved before June 1, 1996, and effective for fiscal year 1997, the reduction equals the amount of the reduction computed for fiscal year 1997 under subdivision 3b.

(b) For referendum revenue authority approved before June 1, 1996, and effective beginning in fiscal year 1998, the reduction equals the amount of the reduction computed for fiscal year 1998 under subdivision 3b.

(c) For referendum revenue authority approved after May 31, 1996, there is no reduction.

(d) For districts with more than one referendum authority, the reduction shall be computed separately for each authority. The reduction shall be applied first to authorities levied against tax capacity, and then to authorities levied against referendum market value. For districts with more than one authority levied against net tax capacity or against referendum market value, the referendum allowance reduction shall be applied first to the authority with the earliest expiration date.

(e) For a newly reorganized district created after July 1, 1996, the referendum revenue reduction equals the lesser of the amount calculated for the combined district, or the sum of the amounts by which each of the reorganizing district's supplemental revenue reduction exceeds its respective supplemental revenue allowances calculated for the year preceding the year of reorganization.

Sec. 19. Minnesota Statutes 1995 Supplement, section 124A.0311, subdivision 2, is amended to read:

Subd. 2. [CONVERSION TO MARKET VALUE.] (a) Prior to June 1, 1997, by June 1 of each year, a school board may, by resolution of a majority of its board, convert any remaining portion of its referendum authority under section 124A.03, subdivision 2, that is authorized to be levied against net tax capacity to referendum authority that is authorized to be levied against the referendum market value of all taxable property located within the school district. At the option of the school board, any remaining portion of its referendum authority may be converted in two or more parts at separate times. The referendum authority may be converted from net tax capacity to referendum market value according to a schedule adopted by resolution of the school board for years prior to taxes payable in 2001, provided that, for taxes payable in 2001 and later, the full amount of the referendum authority is levied against referendum market value. The board must notify the commissioner of children, families, and learning of the amount of referendum authority that has been converted from net tax capacity to referendum market value, if any, by June 15, of each year. The maximum length of a referendum converted under this paragraph is ten years.

(b) For referendum levy amounts converted between June 1, 1997, and June 1, 1998, all other conditions of this subdivision apply except that the maximum length of the referendum is limited to seven years.

(c) For referendum levy amounts converted between June 1, 1998, and June 1, 1999, all other conditions of this subdivision apply except that the maximum length of the referendum is limited to six years.

(d) For referendum levy amounts converted between June 1, 1999, and June 1, 2000, all other conditions of this subdivision apply except that the maximum length of the referendum is limited to five years.

Sec. 20. Minnesota Statutes 1994, section 124A.0311, subdivision 3, is amended to read:

Subd. 3. [ALTERNATIVE CONVERSION.] A school district that has a referendum that is levied against net tax capacity that expires before taxes payable in 1998 may convert its referendum authority according to this subdivision. In the payable year prior to the year of expiration, the school board may authorize a referendum under

section 124A.03. Notwithstanding any other law to the contrary, the district may propose, and if approved by its electors, have its referendum authority reauthorized in part on tax capacity and in part on referendum market value according to a schedule adopted by resolution of the school board for years prior to taxes payable in 2001, provided that, for taxes payable in 2001 and later, the full amount of referendum authority is levied against referendum market value. If the full amount of the referendum is reauthorized on referendum market value prior to taxes payable in 1998, the referendum may extend for ten years. If the referendum becomes fully reauthorized on referendum market value for a later year, the referendum shall not extend for more than the maximum number of years allowed under subdivision 2.

Sec. 21. Minnesota Statutes 1994, section 124A.035, subdivision 4, is amended to read:

Subd. 4. [COUNTY APPORTIONMENT DEDUCTION.] Each year the amount of money apportioned to a school district for that year pursuant to section 124.10, subdivision 2, excluding any district where the general education levy is determined according to section 124A.23, subdivision 3, shall be deducted from the general education aid earned by that district for the same year or from aid earned from other state sources.

Sec. 22. Minnesota Statutes 1994, section 124A.036, is amended by adding a subdivision to read:

Subd. 6. [CHARTER SCHOOLS.] (a) The general education aid for districts must be adjusted for each pupil attending a charter school under section 120.064. The adjustments must be made according to this subdivision.

(b) General education aid paid to a resident district must be reduced by an amount equal to the general education revenue exclusive of compensatory revenue.

(c) General education aid paid to a district in which a charter school not providing transportation according to section 120.064, subdivision 15, is located shall be increased by an amount equal to the product of: (1) the sum of $170, plus the transportation sparsity allowance for the district, plus the transportation transition allowance for the district; times (2) the pupil units attributable to the pupil.

(d) If the amount of the reduction to be made from the general education aid of the resident district is greater than the amount of general education aid otherwise due the district, the excess reduction must be made from other state aids due the district.

Sec. 23. Minnesota Statutes 1995 Supplement, section 124A.22, subdivision 10, is amended to read:

Subd. 10. [TOTAL OPERATING CAPITAL REVENUE.] (a) For fiscal year 1997 and thereafter, total operating capital revenue for a district equals the amount determined under paragraph (b), (c), (d), (e), or (f), plus $68 times the actual pupil units for the school year. The revenue must be placed in a reserved account in the general fund and may only be used according to subdivision 11.

(b) For fiscal years 1996 and later, capital revenue for a district equals $100 times the district's maintenance cost index times its actual pupil units for the school year.

(c) For 1996 and later fiscal years, the previous formula revenue for a district equals $128 times its actual pupil units for fiscal year 1995.

(d) Notwithstanding paragraph (b), for fiscal year 1996, the revenue for each district equals 25 percent of the amount determined in paragraph (b) plus 75 percent of the previous formula revenue.

(e) Notwithstanding paragraph (b), for fiscal year 1997, the revenue for each district equals 50 percent of the amount determined in paragraph (b) plus 50 percent of the previous formula revenue.

(f) Notwithstanding paragraph (b), for fiscal year 1998, the revenue for each district equals 75 percent of the amount determined in paragraph (b) plus 25 percent of the previous formula revenue.

(g) The revenue in paragraph (b) for a district that operates a program under section 121.585, is increased by an amount equal to $15 times the number of actual pupil units at the site where the program is implemented.

Sec. 24. Minnesota Statutes 1994, section 124A.22, is amended by adding a subdivision to read:

Subd. 11a. [USES OF REVENUE.] Except as otherwise prohibited by law, a district may spend general fund money for capital purposes.

Sec. 25. Minnesota Statutes 1995 Supplement, section 124A.22, subdivision 13b, is amended to read:

Subd. 13b. [TRANSITION ALLOWANCE.] (a) A district's transportation transition allowance for fiscal year 1997 equals the result of the following computation:

(1) if the result in subdivision 13a, paragraph (a), clause (iii), for fiscal year 1997 is less than the fiscal year 1996 base allowance, the transportation transition allowance equals the fiscal year 1996 base allowance minus the result in section 124A.22, subdivision 13a, paragraph (a), clause (iii).

(2) if the result in subdivision 13a, paragraph (b), for fiscal year 1997 is greater than the fiscal year 1996 base allowance and less than 110 percent of the fiscal year 1996 base allowance, the transportation transition allowance equals zero.

(3) if the result in subdivision 13a, paragraph (b), for fiscal year 1997 is greater than 110 percent of the fiscal year 1996 base allowance, the transportation transition allowance equals 110 percent of the fiscal year 1996 base allowance minus the result in subdivision 13a, paragraph (a), clause (iii).

(b) A district's transportation transition allowance for fiscal year 1998 equals the result of the following:

(1) if the result in subdivision 13a, paragraph (a), clause (iii), for fiscal year 1998 is less than the fiscal year 1996 base allowance, the transportation transition allowance equals the fiscal year 1996 base allowance minus the result in subdivision 13a, paragraph (a), clause (iii); or

(2) if the result in subdivision 13a, paragraph (a), clause (iii), for fiscal year 1998 is greater than or equal to the fiscal year 1996 base allowance, the transportation transition allowance equals zero.

(c) For fiscal years 1997 and 1998, a district's training and experience transition allowance is equal to the training and experience revenue the district would have received under Minnesota Statutes 1994, section 124A.22, subdivision 4, divided by the actual pupil units for fiscal year 1997 minus $130. For fiscal year 1999 and later, a district's training and experience transition allowance equals zero.

If the training and experience transition allowance is less than zero, the reduction shall be determined according to the following schedule:

(i) for fiscal year 1997, the reduction is equal to .9 times the amount initially determined;

(ii) for fiscal year 1998, the reduction is equal to .75 times the amount initially determined;

(iii) for fiscal year 1999, the reduction is equal to .50 times the amount initially determined;

(iv) for fiscal year 2000, the reduction is equal to .25 times the amount initially determined; and

(v) for fiscal year 2001 and thereafter, the transition allowance shall not be less than zero.

(c) (d) A district's transition allowance for fiscal year 1997 and thereafter is equal to the sum of its transportation transition allowance and its training and experience transition allowance.

Sec. 26. Minnesota Statutes 1995 Supplement, section 124A.23, subdivision 4, is amended to read:

Subd. 4. [GENERAL EDUCATION AID.] A district's general education aid is the sum of the following amounts:

(1) the product of (i) the difference between the general education revenue, excluding transition revenue and supplemental revenue, and the general education levy, times (ii) the ratio of the actual amount levied to the permitted levy;

(2) transition aid according to section 124A.22, subdivision 13e;

(3) supplemental aid according to section 124.214, subdivision 2;

(4) shared time aid according to section 124A.02, subdivision 21; and

(5) referendum aid according to section 124A.03.

Sec. 27. Minnesota Statutes 1994, section 124A.26, subdivision 1, is amended to read:

Subdivision 1. [REVENUE REDUCTION.] A district's general education revenue for a school year shall be reduced if the average of the district's net unappropriated operating fund balance as of June 30 in the second prior year and the estimated net unappropriated operating fund balance as of June 30 in the prior school year exceeds 25 percent of the formula allowance for the current fiscal year times the average number of fund balance pupil units defined according to section 124.17, subdivision 1f, in the prior and second prior year. For purposes of this subdivision and section 124.243, subdivision 2, fund balance pupil units means the number of resident pupil units in average daily membership, including shared time pupils, according to section 124A.02, subdivision 20, plus

(1) pupils attending the district for which general education aid adjustments are made according to section 124A.036, subdivision 5; minus

(2) the sum of the resident pupils attending other districts for which general education aid adjustments are made according to section 124A.036, subdivision 5, plus pupils for whom payment is made according to section 126.22, subdivision 8, or 126.23. The amount of the reduction shall equal the lesser of:

(1) the amount of the excess, or

(2) $250 times the actual pupil units for the school year.

The final adjustment payments made under section 124.195, subdivision 6, must be adjusted to reflect actual net operating fund balances as of June 30 of the prior school year.

Sec. 28. Laws 1993, chapter 224, article 1, section 34, is amended to read:

Sec. 34. [GENERAL EDUCATION REVENUE REDUCTION; SLAYTON.]

Subdivision 1. [QUALIFICATION.] Independent school district No. 504, Slayton, is eligible for revenue under this section if the district has an approved plan for cooperation and combination. If the referendum required under Minnesota Statutes, section 122.243, subdivision 2, fails, the aid adjustment required in subdivision 2 cancels and the department of education children, families, and learning shall make a negative adjustment to the following year's aid payments for any amount actually paid to the district. If the referendum fails, the district's levy authority under subdivision 3 is canceled. If the levy has already been certified, the department of education children, families, and learning shall make a negative levy adjustment to the following year's general education levy limitations.

Subd. 2. [AID ADJUSTMENT.] For fiscal year 1994 1996 only, the department of education children, families, and learning shall include in the general education aid calculation for independent school district No. 504, Slayton, or its successor district, the sum of the amounts by which the district's general education aid was reduced for fiscal years 1992 and 1993 year 1994 under Minnesota Statutes, section 124A.26.

Subd. 3. [LEVY ADJUSTMENT.] For 1993 1996 taxes payable in 1994 1997 only, independent school district No. 504, Slayton, or its successor district, may levy an amount not to exceed the sum of the levy reductions for fiscal years 1992 and 1993 year 1994 resulting from the general education revenue fund balance reduction under Minnesota Statutes, section 124A.26.

Sec. 29. Laws 1995, First Special Session chapter 3, article 1, section 61, is amended to read:

Sec. 61. [FORMULA ALLOWANCE.]

Notwithstanding the amount of the formula allowance for fiscal year 1997, in Minnesota Statutes, section 124A.22, subdivision 2, the commissioner shall use the amount of the formula allowance minus $300 for fiscal year 1997 in determining the payments under Minnesota Statutes, sections 123.3514, subdivisions 6 and 8 6b; 124A.02, subdivision 21; 126.22; and 126.23.

Sec. 30. Laws 1995, First Special Session, chapter 3, article 1, section 63, is amended to read:

Sec. 63. [REPEALER.]

Subdivision 1. [JULY 1, 1995.] Minnesota Statutes 1994, sections 124.17, subdivision 1b; 124.962; 124A.04, subdivision 1; and 124A.27, subdivision 11, are repealed July 1, 1995.

Subd. 2. [REVENUE FOR FISCAL YEAR 1997.] Minnesota Statutes 1994, sections 121.912, subdivision 8; 124.243; 124.244; 124A.26; and 126.019, are repealed effective for revenue for fiscal year 1997.

Sec. 31. [TRANSPORTATION AND CAPITAL EXPENDITURE FUNDS; DISSOLUTION.]

Effective July 1, 1996, the transportation fund and the capital expenditure fund of each school district or other unit reporting under Minnesota Statutes, section 121.908, is dissolved. The June 30, 1996, balance of the unreserved transportation fund shall be transferred to the general fund unreserved balance. The June 30, 1996, balance of the reserved for bus purchase account shall be transferred to the general fund reserved for bus purchase account. The June 30, 1996, balance of the capital expenditure facilities account and capital expenditure equipment account shall be transferred to the general fund reserved for operating capital account. The June 30, 1996, balance of the reserved for health and safety account shall be transferred to the general fund reserved for health and safety account. The June 30, 1996, balance of the reserved for disabled accessibility account shall be transferred to the general fund reserved for disabled accessibility account. Effective July 1, 1996, all revenues and expenditures formerly accounted for in the capital expenditure fund and the transportation fund shall be accounted for in the general fund.

Sec. 32. [REFERENDUM AUTHORITY; PARK RAPIDS.]

Subdivision 1. [REVENUE.] Notwithstanding the reduction required by Minnesota Statutes, section 124A.03, subdivision 3b, the referendum revenue allowance for independent school district No. 309, Park Rapids, is $315 per pupil unit. This referendum authorization is available for the number of years specified on the district's referendum ballot held during June 1995.

Subd. 2. [LEVY RECLASSIFICATION.] Independent school district No. 309, Park Rapids, may reclassify as payable 1996 referendum levy other payable 1996 levies. The amount reclassified may not exceed the difference between the levy authority authorized in subdivision 1 and the amount of referendum levy certified by the district for taxes payable in 1996. Any reclassified levy is not subject to the market value requirement in Minnesota Statutes, section 124A.03, subdivision 2a.

Sec. 33. [REPEALER.]

Section 18 and Minnesota Statutes 1994, section 124A.03, subdivision 3b, are repealed.

Sec. 34. [EFFECTIVE DATE.]

Sections 1, 6, 8, 12, 16, 18, 21, 28, 30, and 31 are effective the day following final enactment.

Section 13 is effective for revenue for 1997-1998 and later school years.

Section 27 is effective the day following final enactment for revenue for 1995-1996 and later school years.

Section 32 is effective for fiscal year 1997 and later years.

Section 33 is effective for revenue for fiscal year 2002.

Section 1. Minnesota Statutes 1995 Supplement, section 120.17, subdivision 6, is amended to read:

Subd. 6. [PLACEMENT IN ANOTHER DISTRICT; RESPONSIBILITY.] The responsibility for special instruction and services for a child with a disability temporarily placed in another district for care and treatment shall be determined in the following manner:

(a) The school district of residence of a child shall be the district in which the child's parent resides, if living, or the child's guardian, or the district designated by the commissioner of children, families, and learning if neither parent nor guardian is living within the state.

(b) When a child is temporarily placed for care and treatment in a day program located in another district and the child continues to live within the district of residence during the care and treatment, the district of residence is responsible for providing transportation and an appropriate educational program for the child. The district may

provide the educational program at a school within the district of residence, at the child's residence, or in the district in which the day treatment center is located by paying tuition to that district.

(c) When a child is temporarily placed in a residential program for care and treatment, the nonresident district in which the child is placed is responsible for providing an appropriate educational program for the child and necessary transportation within the district while the child is attending the educational program; and shall bill the district of the child's residence for the actual cost of providing the program, as outlined in subdivision 4, except that the board, lodging, and treatment costs incurred in behalf of a child with a disability placed outside of the school district of residence by the commissioner of human services or the commissioner of corrections or their agents, for reasons other than for making provision for the child's special educational needs shall not become the responsibility of either the district providing the instruction or the district of the child's residence.

(d) The district of residence shall pay tuition and other program costs, not including transportation costs, to the district providing the instruction and services. The district of residence may claim general education aid for the child as provided by law. Transportation costs shall be paid by the district responsible for providing the transportation and the state shall pay transportation aid to that district.

Sec. 2. Minnesota Statutes 1994, section 120.17, subdivision 9, is amended to read:

Subd. 9. [SPECIAL INSTRUCTION.] No resident of a district who is eligible for special instruction and services pursuant to this section shall be denied provision of this instruction and service on a shared time basis because of attendance at a nonpublic school defined in section 123.932, subdivision 3. If a resident pupil with a disability attends a nonpublic school located within the district of residence, the district shall provide necessary transportation for that pupil within the district between the nonpublic school and the educational facility where special instruction and services are provided on a shared time basis. If a resident pupil with a disability attends a nonpublic school located in a another district contiguous to the district of residence and if no agreement exists pursuant to section 124A.034, subdivision 1 or 1a, for the provision of special instruction and services on a shared time basis to that pupil by the district of attendance and where the special instruction and services are provided within the district of residence, the district of residence shall provide necessary transportation for that pupil between the boundary of the district of residence and the educational facility where the special instruction and services are provided within the district of residence. The district of residence may provide necessary transportation for that pupil between its boundary and the nonpublic school attended, but the nonpublic school shall pay the cost of transportation provided outside the district boundary.

Sec. 3. Minnesota Statutes 1995 Supplement, section 120.181, is amended to read:

120.181 [PLACEMENT OF NONHANDICAPPED CHILDREN WITHOUT DISABILITIES; EDUCATION AND TRANSPORTATION.]

The responsibility for providing instruction and transportation for a pupil without a disability who has a short-term or temporary physical or emotional illness or disability, as determined by the standards of the state board, and who is temporarily placed for care and treatment for that illness or disability, shall be determined as provided in this section.

(a) The school district of residence of the pupil shall be the district in which the pupil's parent or guardian resides or the district designated by the commissioner of children, families, and learning if neither parent nor guardian is living within the state.

(b) Prior to the placement of a pupil for care and treatment, the district of residence shall be notified and provided an opportunity to participate in the placement decision. When an immediate emergency placement is necessary and time does not permit resident district participation in the placement decision, the district in which the pupil is temporarily placed, if different from the district of residence, shall notify the district of residence of the emergency placement within 15 days of the placement.

(c) When a pupil without a disability is temporarily placed for care and treatment in a day program and the pupil continues to live within the district of residence during the care and treatment, the district of residence shall provide instruction and necessary transportation for the pupil. The district may provide the instruction at a school within the district of residence, at the pupil's residence, or in the case of a placement outside of the resident district, in the district in which the day treatment program is located by paying tuition to that district. The district of placement may contract with a facility to provide instruction by teachers licensed by the state board of teaching.

(d) When a pupil without a disability is temporarily placed in a residential program for care and treatment, the district in which the pupil is placed shall provide instruction for the pupil and necessary transportation within that district while the pupil is receiving instruction, and in the case of a placement outside of the district of residence, the nonresident district shall bill the district of residence for the actual cost of providing the instruction for the regular school year and for summer school, excluding transportation costs. When a pupil without a disability is temporarily placed in a residential program outside the district of residence, the administrator of the court placing the pupil shall send timely written notice of the placement to the district of residence. The district of placement may contract with a residential facility to provide instruction by teachers licensed by the state board of teaching.

(e) The district of residence shall include the pupil in its residence count of pupil units and pay tuition as provided in section 124.18 to the district providing the instruction. Transportation costs shall be paid by the district providing the transportation and the state shall pay transportation aid to that district. For purposes of computing state transportation aid, pupils governed by this subdivision shall be included in the handicapped disabled transportation category.

Sec. 4. Minnesota Statutes 1994, section 120.73, subdivision 1, is amended to read:

Subdivision 1. A school board is authorized to require payment of fees in the following areas:

(a) in any program where the resultant product, in excess of minimum requirements and at the pupil's option, becomes the personal property of the pupil;

(b) admission fees or charges for extra curricular activities, where attendance is optional;

(c) a security deposit for the return of materials, supplies, or equipment;

(d) personal physical education and athletic equipment and apparel, although any pupil may personally provide it if it meets reasonable requirements and standards relating to health and safety established by the school board;

(e) items of personal use or products which a student has an option to purchase such as student publications, class rings, annuals, and graduation announcements;

(f) fees specifically permitted by any other statute, including but not limited to section 171.04, subdivision 1, clause (1);

(g) field trips considered supplementary to a district educational program;

(h) any authorized voluntary student health and accident benefit plan;

(i) for the use of musical instruments owned or rented by the district, a reasonable rental fee not to exceed either the rental cost to the district or the annual depreciation plus the actual annual maintenance cost for each instrument;

(j) transportation of pupils to and from extra curricular activities conducted at locations other than school, where attendance is optional;

(k) transportation of pupils to and from school for which aid for fiscal year 1996 is not authorized under Minnesota Statutes 1994, section 124.223, subdivision 1, and for which levy for fiscal year 1996 is not authorized under Minnesota Statutes 1994, section 124.226, subdivision 5, if a district charging fees for transportation of pupils establishes guidelines for that transportation to ensure that no pupil is denied transportation solely because of inability to pay;

(l) motorcycle classroom education courses conducted outside of regular school hours; provided the charge shall not exceed the actual cost of these courses to the school district;

(m) transportation to and from post-secondary institutions for pupils enrolled under the post-secondary enrollment options program under section 123.39, subdivision 16. Fees collected for this service must be reasonable and shall be used to reduce the cost of operating the route. Families who qualify for mileage reimbursement under section 123.3514, subdivision 8, may use their state mileage reimbursement to pay this fee. If no fee is charged, districts shall allocate costs based on the number of pupils riding the route.

Sec. 5. Minnesota Statutes 1995 Supplement, section 120.74, subdivision 1, is amended to read:

Subdivision 1. (a) A school board is not authorized to charge fees in the following areas:

(1) textbooks, workbooks, art materials, laboratory supplies, towels;

(2) supplies necessary for participation in any instructional course except as authorized in sections 120.73 and 120.75;

(3) field trips which are required as a part of a basic education program or course;

(4) graduation caps, gowns, any specific form of dress necessary for any educational program, and diplomas;

(5) instructional costs for necessary school personnel employed in any course or educational program required for graduation;

(6) library books required to be utilized for any educational course or program;

(7) admission fees, dues, or fees for any activity the pupil is required to attend;

(8) any admission or examination cost for any required educational course or program;

(9) locker rentals;

(10) transportation of pupils (i) for which state transportation aid for fiscal year 1996 is authorized pursuant to Minnesota Statutes 1994, section 124.223 or (ii) for which a levy for fiscal year 1996 is authorized under Minnesota Statutes 1994, section 124.226, subdivision 5.

(b) Notwithstanding paragraph (a), clauses (1) and (6), a school board may charge fees for textbooks, workbooks, and library books, lost or destroyed by students. The board must annually notify parents or guardians and students about its policy to charge a fee under this paragraph.

Sec. 6. Minnesota Statutes 1995 Supplement, section 124.223, subdivision 4, is amended to read:

Subd. 4. [PUPILS WITH DISABILITIES.] School districts may shall provide transportation or board and lodging of a pupil with a disability when that pupil cannot be transported on a regular school bus, the conveying of pupils with a disability between home or a respite care facility and school and within the school plant, necessary transportation of pupils with a disability from home or from school to other buildings, including centers such as developmental achievement centers, hospitals and treatment centers where special instruction or services required by sections 120.17 and 120.1701 are provided, within or outside the district where services are provided, and necessary transportation for resident pupils with a disability required by sections 120.17, subdivision 4a, and 120.1701. Transportation of pupils with a disability between home or a respite care facility and school shall not be subject to any distance requirement for children.

Sec. 7. Minnesota Statutes 1995 Supplement, section 124.225, subdivision 8l, is amended to read:

Subd. 8l. [ALTERNATIVE ATTENDANCE PROGRAMS.] A district that enrolls nonresident pupils in programs under sections 120.062, 120.075, 120.0751, 120.0752, 124C.45 to 124C.48, and 126.22, may shall provide authorized transportation to the pupil within the attendance area for the school that the pupil attends. The resident district need not provide or pay for transportation between the pupil's residence and the district's border.

Sec. 8. Minnesota Statutes 1995 Supplement, section 124.225, subdivision 14, is amended to read:

Subd. 14. [SPECIAL PROGRAMS TRANSPORTATION REVENUE.] A district's special programs transportation revenue for the 1996-1997 and later school years equals the sum of:

(a) the district's actual cost in the base year for transportation services for children with disabilities under section 124.223, subdivisions 4, 5, 7, and 8, times the ratio of the district's average daily membership for the current school year to the district's average daily membership for the base year; plus

(b) the greater of zero or 80 percent of the difference between:

(1) the district's actual cost in the current year for transportation services for children with disabilities under section 124.223, subdivisions 4, 5, 7, and 8; and

(2) the amount computed in paragraph (a).

Sec. 9. Minnesota Statutes 1995 Supplement, section 124.225, subdivision 16, is amended to read:

Subd. 16. [NONPUBLIC PUPIL TRANSPORTATION REVENUE.] (a) A district's nonpublic pupil transportation revenue for the 1996-1997 and later school years for transportation services for nonpublic school pupils according to sections 123.39, 123.76 to 123.78, 124.223, and 124.226, equals the sum of the amounts computed in paragraphs (b) and (c). This revenue does not limit the obligation to transport pupils under sections 123.76 to 123.79.

(b) For regular and excess transportation according to section 124.225, subdivision 1, paragraph (c), clauses (1) and (3), an amount equal to the product of:

(1) the district's actual expenditure per pupil transported in the regular and excess transportation categories during the second preceding school year; times

(2) the number of nonpublic school pupils residing in the district who receive regular or excess transportation service or reimbursement for the current school year; times

(3) the ratio of the formula allowance pursuant to section 124A.22, subdivision 2, for the current school year to the formula allowance pursuant to section 124A.22, subdivision 2, for the second preceding school year.

(c) For nonregular transportation according to section 124.225, subdivision 1, paragraph (c), clause (2), excluding transportation services for children with disabilities under section 124.223, subdivisions 4, 5, 7, and 8, and late activity transportation according to section 124.226, subdivision 9, an amount equal to the product of:

(1) the district's actual expenditure for nonregular and late activity transportation for nonpublic school pupils during the second preceding school year; times

(2) the ratio of the formula allowance pursuant to section 124A.22, subdivision 2, for the current school year to the formula allowance pursuant to section 124A.22, subdivision 2, for the second preceding school year.

(d) Notwithstanding the amount of the formula allowance for fiscal years 1997 and 1998 in section 124A.22, subdivision 2, the commissioner shall use the amount of the formula allowance less $300 in determining the nonpublic pupil transportation revenue in paragraphs (b) and (c) for fiscal years 1997 and 1998.

Sec. 10. Minnesota Statutes 1995 Supplement, section 124.225, subdivision 17, is amended to read:

Subd. 17. [TARGETED NEEDS TRANSPORTATION AID.] (a) A district's targeted needs transportation aid is the difference between its targeted needs transportation revenue under subdivision 13 and its targeted needs transportation revenue levy under section 124.226, subdivision 10.

(b) If a district does not levy the entire amount permitted, aid must be reduced in proportion to the actual amount levied.

Sec. 11. Minnesota Statutes 1995 Supplement, section 124.227, is amended to read:

124.227 [INTERDISTRICT DESEGREGATION OR INTEGRATION TRANSPORTATION GRANTS.]

(a) A district that provides transportation of pupils between resident and nonresident districts to and from an interdistrict program for desegregation or integration purposes may apply to the commissioner of children, families, and learning for a grant to cover the additional costs of transportation.

(b) A district in the metropolitan area may apply to the commissioner for a grant to cover the costs of transporting pupils who are enrolled under section 120.062 if the enrollment of the student in the nonresident district contributes to desegregation or integration purposes. The commissioner must develop the form and manner of applications, the

criteria to be used to determine when transportation is for desegregation or integration purposes, and the accounting procedure to be used to determine excess costs. In determining the grant amount, the commissioner must consider other revenue received by the district for transportation for desegregation or integration purposes.

(c) Grants may be awarded under paragraph (b) only if grants awarded under paragraph (a) have been fully funded.

Sec. 12. Minnesota Statutes 1995 Supplement, section 169.01, subdivision 6, is amended to read:

Subd. 6. [SCHOOL BUS.] "School bus" means a motor vehicle used to transport pupils to or from a school defined in section 120.101, or to or from school-related activities, by the school or a school district, or by someone under an agreement with the school or a school district. A school bus does not include a motor vehicle transporting children to or from school for which parents or guardians receive direct compensation from a school district, a motor coach operating under charter carrier authority, a transit bus providing services as defined in section 174.22, subdivision 7, or a vehicle otherwise qualifying as a type III vehicle under paragraph (5), when the vehicle is properly registered and insured and being driven by an employee or agent of a school district for nonscheduled transportation. A school bus may be type A, type B, type C, or type D, or type III as follows:

(1) A "type A school bus" is a conversion or body constructed upon a van-type compact truck or a front-section vehicle, with a gross vehicle weight rating of 10,000 pounds or less, designed for carrying more than ten persons.

(2) A "type B school bus" is a conversion or body constructed and installed upon a van or front-section vehicle chassis, or stripped chassis, with a gross vehicle weight rating of more than 10,000 pounds, designed for carrying more than ten persons. Part of the engine is beneath or behind the windshield and beside the driver's seat. The entrance door is behind the front wheels.

(3) A "type C school bus" is a body installed upon a flat back cowl chassis with a gross vehicle weight rating of more than 10,000 pounds, designated designed for carrying more than ten persons. All of the engine is in front of the windshield and the entrance door is behind the front wheels.

(4) A "type D school bus" is a body installed upon a chassis, with the engine mounted in the front, midship or rear, with a gross vehicle weight rating of more than 10,000 pounds, designed for carrying more than ten persons. The engine may be behind the windshield and beside the driver's seat; it may be at the rear of the bus, behind the rear wheels, or midship between the front and rear axles. The entrance door is ahead of the front wheels.

(5) Type III school buses and type III Head Start buses are restricted to passenger cars, station wagons, vans, and buses having a maximum manufacturer's rated seating capacity of ten people, including the driver, and a gross vehicle weight rating of 10,000 pounds or less. In this subdivision, "gross vehicle weight rating" means the value specified by the manufacturer as the loaded weight of a single vehicle. A "type III school bus" and "type III Head Start bus" must not be outwardly equipped and identified as a type A, B, C, or D school bus or type A, B, C, or D Head Start bus.

Sec. 13. Minnesota Statutes 1994, section 169.4504, is amended by adding a subdivision to read:

Subd. 5. [AISLE WIDTH.] All school buses equipped with a power lift shall provide at least a 12-inch aisle leading from wheelchair position to at least one emergency door and the lift area.

Sec. 14. Minnesota Statutes 1995 Supplement, section 631.40, subdivision 1a, is amended to read:

Subd. 1a. [CERTIFIED COPY OF DISQUALIFYING OFFENSE CONVICTIONS SENT TO PUBLIC SAFETY AND SCHOOL DISTRICTS.] When a person is convicted of committing a disqualifying offense, as defined in section 171.3215, subdivision 1, a gross misdemeanor, a fourth moving violation within a three-year period the previous three years, or a violation of section 169.121 or 169.129, or a similar statute or ordinance from another state, the court shall determine whether the offender is a school bus driver as defined in section 171.3215, subdivision 1, whether the offender possesses a school bus driver's endorsement on the offender's driver's license and in what school districts the offender drives a school bus. If the offender is a school bus driver or possesses a school bus driver's endorsement, the court administrator shall send a certified copy of the conviction to the department of public safety and to the school districts in which the offender drives a school bus within ten days after the conviction.

Sec. 15. [EFFECTIVE DATE.]

Section 11 is effective the day following final enactment.

Section 1. Minnesota Statutes 1995 Supplement, section 120.17, subdivision 3a, is amended to read:

Subd. 3a. [SCHOOL DISTRICT OBLIGATIONS.] Every district shall ensure that:

(1) all students with disabilities are provided the special instruction and services which are appropriate to their needs. Where the individual education plan team has determined appropriate goals and objectives based on the student's needs, including the extent to which the student can be included in the least restrictive environment, and where there are essentially equivalent and effective instruction, related services, or assistive technology devices available to meet the student's needs, cost to the school district may be among the factors considered by the team in choosing how to provide the appropriate services, instruction, or devices that are to be made part of the student's individual education plan. The student's needs and the special education instruction and services to be provided shall be agreed upon through the development of an individual education plan. The plan shall address the student's need to develop skills to live and work as independently as possible within the community. By grade 9 or age 14, the plan shall address the student's needs for transition from secondary services to post-secondary education and training, employment, community participation, recreation, and leisure and home living. The plan must include a statement of the needed transition services, including a statement of the interagency responsibilities or linkages or both before secondary services are concluded;

(2) children with a disability under age five and their families are provided special instruction and services appropriate to the child's level of functioning and needs;

(3) children with a disability and their parents or guardians are guaranteed procedural safeguards and the right to participate in decisions involving identification, assessment including assistive technology assessment, and educational placement of children with a disability;

(4) to the maximum extent appropriate, children with a disability, including those in public or private institutions or other care facilities, are educated with children who are not disabled, and that special classes, separate schooling, or other removal of children with a disability from the regular educational environment occurs only when and to the extent that the nature or severity of the disability is such that education in regular classes with the use of supplementary services cannot be achieved satisfactorily;

(5) in accordance with recognized professional standards, testing and evaluation materials, and procedures utilized for the purposes of classification and placement of children with a disability are selected and administered so as not to be racially or culturally discriminatory; and

(6) the rights of the child are protected when the parents or guardians are not known or not available, or the child is a ward of the state.

Sec. 2. Minnesota Statutes 1995 Supplement, section 120.17, subdivision 3b, is amended to read:

Subd. 3b. [PROCEDURES FOR DECISIONS.] Every district shall utilize at least the following procedures for decisions involving identification, assessment, and educational placement of children with a disability:

(a) Parents and guardians shall receive prior written notice of:

(1) any proposed formal educational assessment or proposed denial of a formal educational assessment of their child;

(2) a proposed placement of their child in, transfer from or to, or denial of placement in a special education program; or

(3) the proposed provision, addition, denial or removal of special education services for their child;

(b) The district shall not proceed with the initial formal assessment of a child, the initial placement of a child in a special education program, or the initial provision of special education services for a child without the prior written consent of the child's parent or guardian. The refusal of a parent or guardian to consent may be overridden by the decision in a hearing held pursuant to clause (e) at the district's initiative;

(c) Parents and guardians shall have an opportunity to meet with appropriate district staff in at least one conciliation conference, mediation, or other method of alternative dispute resolution that the parties agree to, if they object to any proposal of which they are notified pursuant to clause (a). The conciliation process or other form of alternative dispute resolution shall not be used to deny or delay a parent or guardian's right to a due process hearing. If the parent or guardian refuses efforts by the district to conciliate the dispute with the school district, the requirement of an opportunity for conciliation or other alternative dispute resolution shall be deemed to be satisfied. Notwithstanding other law, in any proceeding following a conciliation conference, the school district must not offer a conciliation conference memorandum into evidence, except for any portions that describe the district's final proposed offer of service. Otherwise, with respect to forms of dispute resolution, mediation, or conciliation, Minnesota Rule of Evidence 408 applies. The department of children, families, and learning may reimburse the districts or directly pay the costs of lay advocates, not to exceed $150 per dispute, used in conjunction with alternative dispute resolution.

(d) The commissioner shall establish a mediation process to assist parents, school districts, or other parties to resolve disputes arising out of the identification, assessment, or educational placement of children with a disability. The mediation process must be offered as an informal alternative to the due process hearing provided under clause (e), but must not be used to deny or postpone the opportunity of a parent or guardian to obtain a due process hearing.

(e) Parents, guardians, and the district shall have an opportunity to obtain an impartial due process hearing initiated and conducted by and in the school district responsible for assuring that an appropriate program is provided in accordance with state board rules, if the parent or guardian continues to object to:

(1) a proposed formal educational assessment or proposed denial of a formal educational assessment of their child;

(2) the proposed placement of their child in, or transfer of their child to a special education program;

(3) the proposed denial of placement of their child in a special education program or the transfer of their child from a special education program;

(4) the proposed provision or addition of special education services for their child; or

(5) the proposed denial or removal of special education services for their child.

Within five business days after the request for a hearing, or as directed by the hearing officer, the objecting party shall provide the other party with a brief written statement of particulars of the objection, the reasons for the objection, and the specific remedies sought. The other party shall provide the objecting party with a written response to the statement of objections within five business days of receipt of the statement.

The hearing shall take place before an impartial hearing officer mutually agreed to by the school board and the parent or guardian. If the school board and the parent or guardian are unable to agree on a Within four business days of the receipt of the request for the hearing, if the parties have not agreed on the hearing officer, the school board shall request the commissioner to appoint a hearing officer. The school board shall include with request the name of the person requesting the hearing, the name of the student, the attorneys involved, if any, and the date the hearing request was received. The hearing officer shall not be a school board member or employee of the school district where the child resides or of the child's school district of residence, an employee of any other public agency involved in the education or care of the child, or any person with a personal or professional interest which would conflict with the person's objectivity at the hearing. A person who otherwise qualifies as a hearing officer is not an employee of the district solely because the person is paid by the district to serve as a hearing officer. If the hearing officer requests an independent educational assessment of a child, the cost of the assessment shall be at district expense. The proceedings shall be recorded and preserved, at the expense of the school district, pending ultimate disposition of the action.

(f) The decision of the hearing officer pursuant to clause (e) shall be rendered not more than 45 calendar days from the date of the receipt of the request for the hearing, except that hearing officers are encouraged to accelerate the timeline to 30 days for children birth through two whose needs change rapidly and require quick resolution of complaints. A hearing officer may not grant specific extensions of time beyond the 45-day period at the request of either party unless requested by either party for good cause shown on the record. The decision of the hearing officer shall be binding on all parties unless appealed to the hearing review officer commissioner by the parent,; guardian, or the; school board of the district where the child resides pursuant to clause (g); and also in the case of children birth through two, by the county board.

The local decision shall:

(1) be in writing;

(2) state the controlling facts upon which the decision is made in sufficient detail to apprise the parties and the hearing review officer of the basis and reason for the decision; and

(3) state whether the special education program or special education services appropriate to the child's needs can be reasonably provided within the resources available to the responsible district or districts;

(4) state the amount and source of any additional district expenditure necessary to implement the decision; and

(5) be based on the standards set forth in subdivision 3a and the rules of the state board.

(g) Any local decision issued pursuant to clauses (e) and (f) may be appealed to the hearing review officer commissioner within 30 calendar days of receipt of that written decision, by the parent, guardian, or the school board of the district responsible for assuring that an appropriate program is provided in accordance with state board rules. The appealing party shall note the specific parts of the hearing decision being appealed.

If the decision is appealed, a written transcript of the hearing shall be made by the school district and shall be accessible provided by the district to the parties involved and the hearing review officer within five calendar days of the filing of the appeal. The hearing review officer shall conduct an appellate review and issue a final independent decision based on an impartial review of the local decision and the entire record within 30 calendar days after the filing of the appeal. However, the hearing review officer shall seek additional evidence if necessary and may afford the parties an opportunity for written or oral argument; provided any hearing held to seek additional evidence shall be an impartial due process hearing but shall be deemed not to be a contested case hearing for purposes of chapter 14. The hearing review officer may grant specific extensions of time beyond the 30-day period at the request of any party for good cause shown on the record.

The final decision shall:

(1) be in writing;

(2) include findings and conclusions; and

(3) be based upon the standards set forth in subdivision 3a and in the rules of the state board.

(h) The decision of the hearing review officer shall be final unless appealed by the parent or guardian or school board to the Minnesota court of appeals or federal district court as provided by federal law. The State judicial review shall be in accordance with chapter 14.

(i) The commissioner of children, families, and learning shall select an individual who has the qualifications enumerated in this paragraph to serve as the hearing review officer:

(1) the individual must be knowledgeable and impartial;

(2) the individual must not have a personal interest in or specific involvement with the student who is a party to the hearing;

(3) the individual must not have been employed as an administrator by the district that is a party to the hearing;

(4) the individual must not have been involved in the selection of the administrators of the district that is a party to the hearing;

(5) the individual must not have a personal, economic, or professional interest in the outcome of the hearing other than the proper administration of the federal and state laws, rules, and policies;

(6) the individual must not have substantial involvement in the development of a state or local policy or procedures that are challenged in the appeal; and

(7) the individual is not a current employee or board member of a Minnesota public school district, education district, intermediate unit or regional education agency, the department of children, families, and learning, the state board of education, or a parent advocacy organization or group; and

(8) the individual is not a current employee or board member of a disability advocacy organization or group.

(j) In all appeals, the parent or guardian of the pupil with a disability or the district that is a party to the hearing may challenge the impartiality or competence of the proposed hearing review officer by applying to the hearing review officer.

(k) Pending the completion of proceedings pursuant to this subdivision, unless the district and the parent or guardian of the child agree otherwise, the child shall remain in the child's current educational placement and shall not be denied initial admission to school.

(l) The child's school district of residence, a resident district, and providing district shall receive notice of and may be a party to any hearings or appeals under this subdivision.

(m) A school district is not liable for harmless technical violations of this subdivision or rules implementing this subdivision if the school district can demonstrate on a case-by-case basis that the violations did not harm the student's educational progress or the parent or guardian's right to notice, participation, or due process.

(n) Within ten calendar days after appointment, the hearing officer shall schedule and hold a prehearing conference. At that conference, or later, the hearing officer may take any appropriate action that a court might take under Rule 16 of Minnesota Rules of Civil Procedure including, but not limited to, scheduling, jurisdiction, and listing witnesses including expert witnesses.

(o) A hearing officer or hearing review officer appointed under this subdivision shall be deemed to be an employee of the state under section 3.732 for the purposes of section 3.736 only.

(p) In order to be eligible for selection, hearing officers and hearing review officers shall participate in training and follow procedures as designated by the commissioner.

(q) The hearing officer may admit all evidence which possesses probative value, including hearsay, if it is the type of evidence on which reasonable, prudent persons are accustomed to rely in the conduct of their serious affairs. The hearing officer shall give effect to the rules of privilege recognized by law. Evidence which is incompetent, irrelevant, immaterial, or unduly repetitious shall be excluded.

Sec. 3. Minnesota Statutes 1994, section 120.1701, subdivision 10, is amended to read:

Subd. 10. [PAYMENT FOR SERVICES.] Core early intervention services shall be provided at public expense with no cost to parents. Parents shall be requested to assist in the cost of additional early intervention services by using third-party payment sources and applying for available resources. If a parent chooses not to access these resources, additional early intervention services may not be provided. Payment structures permitted under state law shall be used to pay for additional early intervention services. Parental financial responsibility shall be clearly defined in the individualized family service plan. A parent's inability to pay shall not prohibit a child from receiving needed early intervention services.

Sec. 4. Minnesota Statutes 1995 Supplement, section 120.1701, subdivision 20, is amended to read:

Subd. 20. [DUE PROCESS HEARINGS.] By July 1, 1994, the departments of children, families, and learning, health, and human services shall develop procedures for hearings. The procedures for due process hearings and appeals shall be the same as those in section 120.17, subdivision 3b. The responsibility for payment of costs and conducting due process hearings and appeals shall be allocated to the appropriate agency in accordance with subdivisions 5, 13, and 16.

Sec. 5. Minnesota Statutes 1995 Supplement, section 124.273, subdivision 1c, is amended to read:

Subd. 1c. [ADJUSTED LEP BASE REVENUE.] (a) A district's adjusted limited English proficiency programs base revenue for fiscal year 1996 and later equals the product of:

(1) the district's base revenue for limited English proficiency programs under this section and section 124.321, times

(2) the ratio of:

(i) the greater of 20 or the number of pupils of limited English proficiency enrolled in the district during the current fiscal year to

(ii) the greater of 20 or the number of pupils of limited English proficiency enrolled in the district during fiscal the base year 1995.

(b) For the purposes of this section, the base year for fiscal year 1996 is fiscal year 1995. The base year for later fiscal years is the second fiscal year preceding the fiscal year for which aid shall be paid. The current year is the fiscal year for which aid shall be paid.

(c) For the purposes of this section, a teacher includes nonlicensed personnel who provide direct instruction to students of limited English proficiency under the supervision of a licensed teacher.

Sec. 6. Minnesota Statutes 1995 Supplement, section 124.273, subdivision 1d, is amended to read:

Subd. 1d. [LEP BASE REVENUE.] The limited English proficiency programs base revenue equals the sum of the following amounts, computed using fiscal base year 1995 data:

(1) 68 percent of the salaries paid salary of one full-time equivalent teacher for each 40 pupils of limited English proficiency program teachers enrolled, or 68 percent of the salary of one-half of a full-time teacher in a district with 20 or fewer pupils of limited English proficiency enrolled; and

(2) for supplies and equipment purchased or rented for use in the instruction of pupils of limited English proficiency an amount equal to 47 percent of the sum actually spent by the district but not to exceed an average of $47 in any one school year for each pupil of limited English proficiency receiving instruction.

Sec. 7. Minnesota Statutes 1994, section 124.273, is amended by adding a subdivision to read:

Subd. 1f. [STATE TOTAL LEP REVENUE.] (a) The state total limited English proficiency programs revenue for fiscal year 1996 equals $12,290,000. The state total limited English proficiency programs revenue for fiscal year 1997 equals $13,674,000.

(b) The state total limited English proficiency programs revenue for later fiscal years equals:

(1) the state total limited English proficiency programs revenue for the preceding fiscal year; times

(2) the program growth factor under section 124.3201, subdivision 1; times

(3) the ratio of the state total number of pupils with limited English proficiency for the current fiscal year to the state total number of pupils with limited English proficiency for the preceding fiscal year.

Sec. 8. Minnesota Statutes 1994, section 124.273, is amended by adding a subdivision to read:

Subd. 1g. [SCHOOL DISTRICT LEP REVENUE.] (a) A school district's limited English proficiency programs revenue for fiscal year 1996 and later equals the state total limited English proficiency programs revenue, minus the amount determined under paragraph (b), times the ratio of the district's adjusted limited English proficiency programs base revenue to the state total adjusted limited English proficiency programs base revenue.

(b) Notwithstanding paragraph (a), if the limited English proficiency programs base revenue for a district equals zero, the limited English proficiency programs revenue equals the sum of the following amounts, computed using current year data:

(1) 68 percent of the salary of one full-time equivalent teacher for each 40 pupils of limited English proficiency enrolled, or 68 percent of the salary of one-half of a full-time teacher in a district with 20 or fewer pupils of limited English proficiency enrolled; and

(2) for supplies and equipment purchased or rented for use in the instruction of pupils of limited English proficiency, an amount equal to 47 percent of the sum actually spent by the district but not to exceed an average of $47 in any one school year for each pupil of limited English proficiency receiving instruction.

Sec. 9. Minnesota Statutes 1994, section 124.311, subdivision 5, is amended to read:

Subd. 5. [REVENUE AMOUNT.] Assurance of mastery revenue is the sum of state and district money. The sum may equal up to $45 for fiscal year 1991 and thereafter times the number of actual fund balance pupil units in kindergarten through grade 8 in the district. The district shall determine the amount of money it will provide and the state shall provide an equal amount of money.

Sec. 10. Minnesota Statutes 1995 Supplement, section 124.314, subdivision 2, is amended to read:

Subd. 2. [LEVY.] For fiscal year 1997 1996 and thereafter, a school district's targeted needs levy equals the sum of its integration levy under section 124.912, subdivision 2, and that portion of its special education levy attributed to the limited English proficiency program.

Sec. 11. Minnesota Statutes 1995 Supplement, section 124.3201, subdivision 1, is amended to read:

Subdivision 1. [DEFINITIONS.] For the purposes of this section and sections 124.3202 and 124.321, the definitions in this subdivision apply.

(a) "Base year" for fiscal year 1996 and fiscal year 1997 means fiscal year 1995 the 1994 summer program and the 1994-1995 school year. Base year for later fiscal years means the second fiscal year preceding the fiscal year for which aid will be paid.

(b) "Basic revenue" has the meaning given it in section 124A.22, subdivision 2. For the purposes of computing basic revenue pursuant to this section, each child with a disability shall be counted as prescribed in section 124.17, subdivision 1.

(c) "Essential personnel" means teachers, related services, and support services staff providing direct services to students.

(d) "Average daily membership" has the meaning given it in section 124.17.

(e) "Program growth factor" means 1.00 for fiscal year 1998 and later.

(f) "Aid percentage factor" means 60 percent for fiscal year 1996, 70 percent for fiscal year 1997, 80 percent for fiscal year 1998, 90 percent for fiscal year 1999, and 100 percent for fiscal years 2000 and later.

(g) "Levy percentage factor" means 100 minus the aid percentage factor for that year.

Sec. 12. Minnesota Statutes 1995 Supplement, section 124.3201, subdivision 2, is amended to read:

Subd. 2. [SPECIAL EDUCATION BASE REVENUE.] The special education base revenue equals the sum of the following amounts computed using base year data:

(1) 68 percent of the salary of each essential person employed in the district's program for children with a disability during the regular school year, whether the person is employed by one or more districts;

(2) for the Minnesota state academy for the deaf or the Minnesota state academy for the blind, 68 percent of the salary of each instructional aide assigned to a child attending the academy, if that aide is required by the child's individual education plan;

(3) for special instruction and services provided to any pupil by contracting with public, private, or voluntary agencies other than school districts, in place of special instruction and services provided by the district, 52 percent of the difference between the amount of the contract and the basic revenue of the district for that pupil for the fraction of the school day the pupil receives services under the contract;

(4) for special instruction and services provided to any pupil by contracting for services with public, private, or voluntary agencies other than school districts, that are supplementary to a full educational program provided by the school district, 52 percent of the amount of the contract for that pupil;

(5) for supplies and equipment purchased or rented for use in the instruction of children with a disability an amount equal to 47 percent of the sum actually expended by the district but not to exceed an average of $47 in any one school year for each child with a disability receiving instruction; and

(6) for fiscal years 1997 and later, special education base revenue shall include amounts under clauses (1) to (5) for special education summer programs provided during the base year for that fiscal year.

Sec. 13. Minnesota Statutes 1995 Supplement, section 124.3201, is amended by adding a subdivision to read:

Subd. 2a. [SPECIAL EDUCATION TUITION REVENUE.] (a) For fiscal year 1996 and later, a district's special education tuition revenue is equal to 50 percent of the difference between tuition costs in the base year and actual tuition costs for pupils whose individual education plans require placement in another district under section 120.17.

(b) For purposes of this section, "tuition costs" means expenditures for tuition bills as defined in section 124.323, subdivision 2, paragraph (a), clause (2).

Sec. 14. Minnesota Statutes 1995 Supplement, section 124.3201, is amended by adding a subdivision to read:

Subd. 2b. [SPECIAL EDUCATION COURT PLACEMENT REVENUE.] For fiscal year 1996 and later, a district's special education court placement revenue is equal to 50 percent of the difference between expenditures for teachers' salaries, supplies, and equipment eligible for revenues under sections 124.3201 and 124.3202, in the base year and actual expenditures for pupils with disabilities who receive services pursuant to a court order.

Sec. 15. Minnesota Statutes 1995 Supplement, section 124.3201, subdivision 3, is amended to read:

Subd. 3. [ADJUSTED SPECIAL EDUCATION BASE REVENUE.] For fiscal year 1996 and later, a district's adjusted special education base revenue equals the district's special education base revenue times the ratio of the district's average daily membership for the current school year to the district's average daily membership for the base year; plus the district's special education tuition revenue under subdivision 2a and special education court placement revenue under subdivision 2b.

Sec. 16. Minnesota Statutes 1995 Supplement, section 124.3202, is amended to read:

124.3202 [SPECIAL EDUCATION SUMMER PROGRAM REVENUE.]

Subdivision 1. [SUMMER PROGRAM BASE REVENUE.] The summer program base revenue for fiscal year 1996 and fiscal year 1997 equals the sum of the following amounts computed using base year data:

(1) 68 percent of the summer program salary of each essential person employed in the district's program for children with a disability, whether the person is employed by one or more districts;

(2) for the Minnesota state academy for the deaf or the Minnesota state academy for the blind, 68 percent of the summer program salary of each instructional aide assigned to a child attending the academy, if that aide is required by the child's individual education plan;

(3) for special instruction and services provided to any pupil by contracting with public, private, or voluntary agencies other than school districts, in place of special instruction and services provided by the district, 52 percent of the difference between the amount of the contract for the summer program and the basic revenue of the district for that pupil for the fraction of the school day the pupil receives services under the contract; and

(4) for special instruction and services provided to any pupil by contracting for services with public, private, or voluntary agencies other than school districts, that are supplementary to a full educational program provided by the school district, 52 percent of the amount of the summer program contract for that pupil.

Subd. 2. [ADJUSTED SUMMER PROGRAM BASE REVENUE.] For fiscal year 1996 and later fiscal year 1997, a district's adjusted summer program base revenue equals the district's summer program base revenue times the ratio of the district's average daily membership for the current school year to the district's average daily membership for the base year.

Subd. 3. [STATE TOTAL SUMMER PROGRAM REVENUE.] The state total summer program revenue for fiscal year 1996 equals $7,152,000. The state total summer program revenue for fiscal year 1997 equals $3,728,500. Fiscal year 1996 summer program revenue is for 1995 summer programs. Fiscal year 1997 summer program revenue is for 1996 summer programs provided in fiscal year 1996.

Subd. 4. [SCHOOL DISTRICT SUMMER PROGRAM REVENUE.] A school district's summer program revenue for fiscal year 1996 and fiscal year 1997 equals the state total summer program revenue times the ratio of the district's adjusted summer program base revenue to the state total adjusted summer program base revenue.

Subd. 5. [SPECIAL EDUCATION SUMMER PROGRAM AID.] A school district's special education summer program aid for fiscal year 1996 and fiscal year 1997 equals the district's summer program revenue times the aid percentage factor for that year.

Subd. 6. [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND INTERMEDIATES.] For the purposes of this section and section 124.321, a special education cooperative or an intermediate district shall allocate its approved expenditures for special education programs among participating school districts. Special education summer program aid for services provided by a cooperative or intermediate district shall be paid to the participating school districts.

Sec. 17. Minnesota Statutes 1995 Supplement, section 124.323, subdivision 1, is amended to read:

Subdivision 1. [DEFINITIONS.] In this section, the definitions in this subdivision apply.

(a) "Unreimbursed special education cost" means the sum of the following:

(1) expenditures for teachers' salaries, contracted services, supplies, and equipment eligible for revenue under sections 124.3201, and 124.3202, and 124.321; plus

(2) expenditures for tuition bills received under section 120.17 for services eligible for revenue under sections 124.3201, subdivision 2, and 124.3202, subdivision 1; minus

(3) revenue for teachers' salaries, contracted services, supplies, and equipment under sections 124.3201, and 124.3202, and 124.321; minus

(4) tuition receipts under section 120.17 for services eligible for revenue under sections 124.3201, subdivision 2, and 124.3202, subdivision 1.

(b) "General revenue," for fiscal year 1996, means the sum of the general education revenue according to section 124A.22, subdivision 1, as adjusted according to section 124A.036, subdivision 5, plus the total referendum revenue according to section 124A.03, subdivision 1e. For fiscal years 1997 and later, "general revenue" means the sum of the general education revenue according to section 124A.22, subdivision 1, as adjusted according to section 124A.036, subdivision 5, plus the total referendum revenue minus transportation sparsity revenue minus total operating capital revenue.

Sec. 18. Minnesota Statutes 1995 Supplement, section 124.323, subdivision 2, is amended to read:

Subd. 2. [EXCESS COST REVENUE.] For 1996 and later fiscal years, a district's special education excess cost revenue equals the product of:

(1) 70 percent of the difference between (i) (1) the district's unreimbursed special education cost per actual pupil unit and (ii) (2) six percent for fiscal year 1996 and 5.7 percent for fiscal year 1997 and later years of the district's general revenue per actual pupil unit, times

(2) the district's actual pupil units for that year.

Sec. 19. Minnesota Statutes 1994, section 124.48, subdivision 3, is amended to read:

Subd. 3. [INDIAN SCHOLARSHIP COMMITTEE.] The Minnesota Indian scholarship committee is established. Members shall be appointed by the state board with the assistance of the Indian affairs council as provided in section 3.922, subdivision 6. Members shall be reimbursed for expenses as provided in section 15.059, subdivision 6. The state board shall determine the membership terms and duration of the committee, which expires no later than June 30, 1997 2001. The committee shall provide advice to the state board in awarding scholarships to eligible American Indian students and in administering the state board's duties regarding awarding of American Indian post-secondary preparation grants to school districts.

Sec. 20. Minnesota Statutes 1994, section 124.573, subdivision 2f, is amended to read:

Subd. 2f. [AID GUARANTEE.] Notwithstanding subdivision 2b, the secondary vocational education aid for a school district is not less than the lesser of:

(a) 95 percent of the secondary vocational education aid the district received for the previous fiscal year; or

(b) 40 percent of the approved expenditures for secondary vocational programs included in subdivision 2b, paragraph (b); or

(c) notwithstanding paragraphs (a) and (b), a school district's aid shall not be less than 25 percent of the lesser of (1) $150,000, or (2) the approved expenditure included in subdivision 2b, paragraph (b).

Sec. 21. Minnesota Statutes 1995 Supplement, section 124.574, subdivision 2f, is amended to read:

Subd. 2f. [STATE TOTAL SECONDARY VOCATIONAL-DISABLED REVENUE.] The state total secondary vocational-disabled revenue for fiscal year 1996 equals $7,645,000 $8,697,000. The state total secondary vocational-disabled revenue for fiscal year 1997 equals $7,960,000 $9,017,000. The state total secondary vocational-disabled revenue for later fiscal years equals:

(1) the state total secondary vocational-disabled revenue for the preceding fiscal year; times

(2) the program growth factor; times

(3) the ratio of the state total average daily membership for the current fiscal year to the state total average daily membership for the preceding fiscal year.

Sec. 22. Minnesota Statutes 1995 Supplement, section 124.574, subdivision 2g, is amended to read:

Subd. 2g. [SCHOOL DISTRICT SECONDARY VOCATIONAL-DISABLED REVENUE.] (a) A school district's secondary vocational-disabled revenue for fiscal year 1996 and later equals the state total secondary vocational-disabled revenue, minus the amount determined under paragraph (b), times the ratio of the district's adjusted secondary vocational-disabled base revenue to the state total adjusted secondary vocational-disabled base revenue.

(b) Notwithstanding paragraph (a), if the secondary vocational-disabled base revenue for a district equals zero and no district residents were enrolled in secondary vocational-disabled programs during the base year, the secondary vocational-disabled revenue equals the amount computed according to subdivision 2d using current year data.

Sec. 23. Minnesota Statutes 1994, section 124.86, subdivision 1, is amended to read:

Subdivision 1. [AUTHORIZATION.] Each year each American Indian-controlled tribal contract or grant school authorized by the United States Code, title 25, section 450f, that is located on a reservation within the state is eligible to receive tribal contract or grant school aid subject to the requirements in this subdivision.

(a) The school must plan, conduct, and administer an education program that complies with the requirements of either this chapter and chapters 120, 121, 122, 123, 124A, 124C, 125, 126, 129, and 268A or Code of Federal Regulations, title 25, parts 31, 32, 33, 36, 38, 39, 40, 41, 43, and 45.

(b) The school must comply with all other state statutes governing independent school districts or their equivalent in the Code of Federal Regulations, title 25.

(c) The state tribal contract or grant school aid must be used to supplement, and not to replace, the money for American Indian education programs provided by the federal government.

Sec. 24. Laws 1995, First Special Session chapter 3, article 3, section 19, subdivision 15, is amended to read:

Subd. 15. [SECONDARY VOCATIONAL EDUCATION AID.] For secondary vocational education aid according to Minnesota Statutes, section 124.573:

$11,874,000. . . . .1996

$11,596,000 $11,783,000. . . . .1997

The 1996 appropriation includes $2,017,000 for 1995 and $9,857,000 for 1996.

The 1997 appropriation includes $1,739,000 for 1996 and $9,857,000 $10,044,000 for 1997.

Sec. 25. Laws 1995, First Special Session chapter 3, article 15, section 26, subdivision 7, is amended to read:

Subd. 7. [TARGETED NEEDS AID.] For targeted needs aid:

$37,682,000 $39,591,000. . . . .1996

$41,597,000 $41,614,000. . . . .1997

(a) Of the 1996 amount, $945,000 is for 1995 LEP aid and $4,359,000 $6,268,000 is for 1996 LEP aid. Of the 1996 amount, $1,979,000 is for 1995 AOM aid and $11,555,000 is for 1996 AOM aid. Of the 1996 amount, $18,844,000 is for 1996 integration aid.

(b) Of the 1997 amount, $1,089,000 $1,106,000 is for 1996 LEP aid and $7,913,000 is for 1997 LEP aid. Of the 1997 amount, $2,039,000 is for 1996 AOM aid and $11,712,000 is for 1997 AOM aid. Of the 1997 amount, $18,844,000 is for 1997 integration aid.

(c) As a condition of receiving a grant, each district must continue to report its costs according to the uniform financial accounting and reporting system. As a further condition of receiving a grant, each district must submit a report to the chairs of the education committees of the legislature about the actual expenditures it made for integration using the grant money including achievement results. These grants may be used to transport students attending a nonresident district under Minnesota Statutes, section 120.062, to the border of the resident district. A district may allocate a part of the grant to the transportation fund for this purpose.

Sec. 26. Laws 1995, First Special Session chapter 3, article 15, section 26, subdivision 10, is amended to read:

Subd. 10. [LOW-INCOME CONCENTRATION GRANTS.] For low-income concentration grants according to Laws 1994, chapter 647, article 8, section 43:

$1,150,000. . . . .1996

$1,150,000 $1,300,000. . . . .1997

Each grant shall be for no more than $50,000.

Sec. 27. [OSSEO LEVY.]

For taxes payable in 1997, independent school district No. 279, Osseo, may levy a tax in an amount not to exceed $800,000. The proceeds of this levy must be used to provide instructional services for at-risk children.

Sec. 28. [EFFECTIVE DATE.]

Sections 5 to 8, 17, and 22 are effective retroactively to July 1, 1995, for the 1995-1996 school year and later. Section 24 is effective for fiscal year 1997. Section 25 is effective the day following final enactment.

Section 1. [120.063] [SCHOOL ATTENDANCE OPTIONS.]

Attendance at a particular public school is a privilege not a right for a pupil. Notwithstanding any law to the contrary, a pupil's privilege to attend a particular school may be revoked for violation of a school's sexual, religious, and racial harassment and violence policy or other school conduct policy.

Sec. 2. Minnesota Statutes 1995 Supplement, section 120.064, subdivision 9, is amended to read:

Subd. 9. [ADMISSION REQUIREMENTS.] A charter school may limit admission to:

(1) pupils within an age group or grade level;

(2) people who are eligible to participate in the high school graduation incentives program under section 126.22; or

(3) residents of a specific geographic area where the percentage of the population of non-Caucasian people of that area is greater than the percentage of the non-Caucasian population in the congressional district in which the geographic area is located, and as long as the school reflects the racial and ethnic diversity of the specific area.

A charter school shall enroll an eligible pupil who submits a timely application, unless the number of applications exceeds the capacity of a program, class, grade level, or building. In this case, pupils shall be accepted by lot.

A charter school may not limit admission to pupils on the basis of intellectual ability, measures of achievement or aptitude, or athletic ability.

Sec. 3. [121.615] [MINNESOTA SCHOOL-TO-WORK STUDENT ORGANIZATION.]

Subdivision 1. [CITATION.] This section may be cited as the "Minnesota school-to-work student organization act."

Subd. 2. [CREATION OF FOUNDATION.] There is created the Minnesota school-to-work student organization foundation. The purpose of the foundation shall be to promote vocational student organizations and applied leadership opportunities in Minnesota public schools through public-private partnerships. The foundation shall be a nonprofit organization. The board of directors of the foundation and activities of the foundation are under the direction of the department of children, families, and learning.

Subd. 3. [BOARD OF DIRECTORS.] The board of directors of the school-to-work student organization foundation shall consist of:

(1) chairs or designees from the board of directors of FFA (formerly Future Farmers of America), Future Leaders of America/Future Homemakers of America, post-secondary agriculture students, home economics related occupations, Health Occupations Student Association, Distributive Education Clubs of America, Delta Upsilon Chi, Secondary Vocational Industrial Clubs of America, Post-secondary Vocational Industrial Clubs of America, Secondary Business Professionals of America, and Post-secondary Business Professionals of America;

(2) four members from business and industry appointed by the governor;

(3) one legislator appointed by the senate majority leader, one legislator appointed by the senate minority leader, one legislator appointed by the speaker of the house, and one legislator appointed by the house minority leader; and

(4) five students representing diverse vocational areas, three of whom are appointed by the commissioner of the department of children, families, and learning and two of whom are appointed by the chancellor of the Minnesota state colleges and universities with the advice of the executive councils of each vocational education student organization.

Executive directors of vocational education student organizations are ex officio, nonvoting members of the board.

Subd. 4. [FOUNDATION PROGRAMS.] The foundation shall advance applied leadership and intracurricular vocational learning experiences for students. These may include, but are not limited to:

(1) recognition programs and awards for students demonstrating excellence in applied leadership;

(2) summer programs for student leadership, career development, applied academics, and mentorship programs with business and industry;

(3) recognition programs for teachers, administrators, and others who make outstanding contributions to school-to-work programs;

(4) outreach programs to increase the involvement of urban and suburban students;

(5) organized challenges requiring cooperation and competition for secondary and post-secondary students;

(6) assistance and training to community teams to increase career awareness and empowerment of youth as community leaders; and

(7) assessment and activities in order to plan for and implement continuous improvement.

To the extent possible, the foundation shall make these programs available to students in all parts of the state.

Subd. 5. [POWERS AND DUTIES.] The foundation may:

(1) identify and plan common goals and priorities for the various school-to-work student organizations in Minnesota;

(2) publish brochures or booklets relating to the purposes of the foundation and collect reasonable fees for the publications;

(3) seek and receive public and private money, grants, and in-kind services and goods from nonstate sources for the purposes of the foundation;

(4) contract with consultants on behalf of the school-to-work student organizations; and

(5) plan, implement, and expend money for awards and other forms of recognition for school-to-work student activities.

Subd. 6. [CONTRACTS.] The foundation board of directors shall review and approve foundation personnel and programming contracts.

Subd. 7. [FOUNDATION STAFF.] The commissioner of the department of children, families, and learning shall appoint the executive director of the foundation from three candidates nominated and submitted by the foundation board of directors and, as necessary, other staff who shall perform duties and have responsibilities solely related to the foundation. The employees appointed are not state employees under chapter 43A, but are covered under section 3.736. The employees may participate in the state health and state insurance plans for employees in unclassified service.

The commissioner shall appoint from the office of lifework development a liaison to the foundation board.

Subd. 8. [PUBLIC FUNDING.] The commissioner of the department of children, families, and learning shall identify and secure appropriate sources of state and federal funding from various state agencies, including, but not limited to, Minnesota state colleges and universities, for the operation and development of school-to-work student organizations.

Subd. 9. [PRIVATE FUNDING.] The foundation shall seek private resources to supplement the allocated state and federal money. Individuals, businesses, and other organizations may contribute to the foundation in any manner specified by the board of directors.

Subd. 10. [REPORT.] The foundation shall submit an annual report and assessment to the office of lifework development and to the board of trustees of the Minnesota state colleges and universities.

Subd. 11. [APPROPRIATION.] There is annually appropriated to the foundation all the amounts received by the foundation pursuant to this section.

Subd. 12. [STUDENT ORGANIZATIONS.] Individual boards of vocational education student organizations shall continue their operations in accordance with section 126.151 and applicable federal law.

Sec. 4. Minnesota Statutes 1994, section 121.8355, subdivision 1, is amended to read:

Subdivision 1. [ESTABLISHMENT.] (a) In order to qualify as a family services collaborative, a minimum of one school district, one county, and one public health entity, and one Head Start grantee as defined in section 268.915 and community action agency as defined in sections 268.52 and 268.53, if present in the community, must agree in writing

to provide coordinated family services and commit resources to an integrated fund. Collaboratives are expected to have broad community representation, which may include other local providers, including additional school districts, counties, and public health entities, other municipalities, public libraries, existing culturally specific community organizations, local health organizations, private and nonprofit service providers, child care providers, local foundations, community-based service groups, businesses, local transit authorities or other transportation providers, community action agencies under section 268.53, senior citizen volunteer organizations, and sectarian organizations that provide nonsectarian services.

(b) Community-based collaboratives composed of representatives of schools, local businesses, local units of government, parents, students, clergy, health and social services providers, youth service organizations, and existing culturally specific community organizations may plan and develop services for children and youth. A community-based collaborative must agree to collaborate with county, school district, and public health entities, and Head Start grantees as defined in section 268.915 and community action agency as defined in sections 268.52 and 268.53, if present in the community. Their services may include opportunities for children or youth to improve child health and development, reduce barriers to adequate school performance, improve family functioning, provide community service, enhance self esteem, and develop general employment skills.

Sec. 5. Minnesota Statutes 1994, section 124.17, is amended by adding a subdivision to read:

Subd. 4. [BASIC SKILLS SUMMER SCHOOL PUPIL UNITS.] When a pupil who has not passed an assessment of basic graduation standards in reading, writing, or mathematics is enrolled in a mastery of basic skills summer school program that is not a part of the regular school term and the student has a total enrollment time of more than 1,020 hours in a school year, the pupil may be counted as more than one pupil in average daily membership for purposes of this subdivision only. The amount in excess of one pupil must be determined by the ratio of the number of hours of instruction provided to that pupil in excess of 1,020 hours. For each pupil, only the amount of summer school enrollment time attributable to basic skills instruction may be used to calculate the additional hours in the school year. Basic skills instruction is defined as in Minnesota's rules on graduation standards and includes reading, writing, and mathematics. Hours that occur after the close of the instructional year in June shall be attributable to the following fiscal year. A pupil for whom payment is made under this subdivision may be counted by a district only for the computation of basic revenue, according to section 124A.22, subdivision 2, minus $300.

Sec. 6. Minnesota Statutes 1994, section 124.2711, subdivision 6, is amended to read:

Subd. 6. [RESERVE ACCOUNT.] Early childhood family education revenue, which includes aids, levies, fees, grants, and all other revenues received by the school district for early childhood family education programs, must be maintained in a reserve account within the community service fund.

Sec. 7. Minnesota Statutes 1994, section 124.2713, subdivision 10, is amended to read:

Subd. 10. [RESERVE ACCOUNT.] Community education revenue, which includes aids, levies, fees, grants, and all other revenues received by the school district for community education programs, must be maintained in a reserve account within the community service fund.

Sec. 8. Minnesota Statutes 1994, section 124.912, subdivision 6, is amended to read:

Subd. 6. [CRIME RELATED COSTS.] For taxes levied in 1991 and subsequent years, payable in 1992 and subsequent years, each school district may make a levy on all taxable property located within the school district for the purposes specified in this subdivision. The maximum amount which may be levied for all costs under this subdivision shall be equal to $1 multiplied by the population of the school district. For purposes of this subdivision, "population" of the school district means the same as contained in section 275.14. The proceeds of the levy must be used for reimbursing the cities and counties who contract with the school district for the following purposes: (1) to pay the costs incurred for the salaries, benefits, and transportation costs of peace officers and sheriffs for liaison services in the district's middle and secondary schools and; (2) to pay the costs for a drug abuse prevention program as defined in Minnesota Statutes 1991 Supplement, section 609.101, subdivision 3, paragraph (f) in the elementary schools; or (3) to pay the costs for a gang resistance education training curriculum in the middle schools. The school district must initially attempt to contract for these services with the police department of each city or the sheriff's department of the county within the school district containing the school receiving the services. If a local police department or a county sheriff's department does not wish to provide the necessary services, the district may contract for these services with any other police or sheriff's department located entirely or partially within the school district's boundaries. The levy authorized under this subdivision is not included in determining the school district's levy limitations.

Sec. 9. Minnesota Statutes 1995 Supplement, section 126.22, subdivision 2, is amended to read:

Subd. 2. [ELIGIBLE PUPILS.] The following pupils are eligible to participate in the high school graduation incentives program:

(a) any pupil who is between the ages of 12 and 21, or who is an elementary pupil, and in either case, who:

(1) is at least two grade levels below the performance level for pupils of the same age in a locally determined achievement test; or

(2) is at least one year behind in satisfactorily completing coursework or obtaining credits for graduation; or

(3) is pregnant or is a parent; or

(4) has been assessed as chemically dependent; or

(5) has been excluded or expelled according to sections 127.26 to 127.39; or

(6) has been referred by a school district for enrollment in an eligible program or a program pursuant to section 126.23; or

(7) is a victim of physical or sexual abuse; or

(8) has experienced mental health problems; or

(9) has experienced homelessness sometime within six months before requesting a transfer to an eligible program; or

(10) speaks English as a second language or has limited English proficiency; or

(b) any person who is at least 21 years of age and who:

(1) has received fewer than 14 years of public or nonpublic education, beginning at age 5;

(2) has not completed the requirements for a high school diploma; and

(3) at the time of application, (i) is eligible for reemployment insurance benefits or has exhausted the benefits, (ii) is eligible for, or is receiving income maintenance and support services, as defined in section 268.0111, subdivision 5, or (iii) is eligible for services under the displaced homemaker program, state wage-subsidy program, or any programs under the federal Jobs Training Partnership Act or its successor.

Sec. 10. Minnesota Statutes 1995 Supplement, section 126.22, subdivision 5, is amended to read:

Subd. 5. [DISSEMINATION OF INFORMATION.] A school district shall disseminate information, developed by the department of children, families, and learning, about the high school graduation incentives program to residents in the district who are under the age of 21.

Sec. 11. Minnesota Statutes 1994, section 127.29, subdivision 2, is amended to read:

Subd. 2. A pupil may be dismissed on the following grounds:

(a) Willful violation of any reasonable school board regulation. Such regulation must be clear and definite to provide notice to pupils that they must conform their conduct to its requirements;

(b) Willful conduct which materially and substantially disrupts the rights of others to an education;

(c) Willful conduct which endangers the pupil or other pupils, or the property of the school;

(d) Violation of the school's sexual, religious, and racial harassment and violence policy or other school conduct policy.

Sec. 12. Minnesota Statutes 1994, section 256.736, subdivision 11, is amended to read:

Subd. 11. [CASE MANAGEMENT SERVICES.] (a) The county agency may, to the extent of available resources, enroll targeted caretakers described in subdivision 16 in case management services and for those enrolled shall:

(1) Provide an assessment as described in subdivision 10, paragraph (a), clause (14). As part of the assessment, the case manager shall inform caretakers of the screenings available through the early periodic screening, diagnosis and treatment (EPSDT) program under chapter 256B and preschool screening under chapter 123, and encourage caretakers to have their children screened. The case manager must work with the caretaker in completing this task;

(2) Develop an employability development plan as described in subdivision 10, paragraph (a), clause (15). The case manager must work with the caretaker in completing this task. For caretakers who are not literate or who have not completed high school, the first goal for the caretaker should be to complete literacy training or a general equivalency diploma. Caretakers who are literate and have completed high school shall be counseled to set realistic attainable goals, taking into account the long-term needs of both the caretaker and the caretaker's family;

(3) Coordinate services such as child care, transportation, and education assistance necessary to enable the caretaker to work toward the goals developed in clause (2). The case manager shall refer caretakers to resource and referral services, if available, and shall assist caretakers in securing appropriate child care services. When a client needs child care services in order to attend a Minnesota public or nonprofit college, university or technical college, the case manager shall contact the appropriate agency to reserve child care funds for the client. A caretaker who needs child care services in order to complete high school or a general equivalency diploma is eligible for child care under sections 256H.01 to 256H.19;

(4) Develop, execute, and monitor a contract between the county agency and the caretaker. The contract must be based upon the employability development plan described in subdivision 10, paragraph (a), clause (15), but must be a separate document. It must include: (a) specific goals of the caretaker including stated measurements of progress toward each goal, the estimated length of participation in the program, and the number of hours of participation per week; (b) educational, training, and employment activities and support services provided by the county agency, including child care; and (c) the participant's obligations and the conditions under which the county will withdraw the services provided;

The contract must be signed and dated by the case manager and participant and may include other terms as desired or needed by either party. In all cases, however, the case manager must assist the participant in reviewing and understanding the contract and must ensure that the caretaker has set forth in the contract realistic goals consistent with the ultimate goal of self-sufficiency for the caretaker's family; and

(5) Develop and refer caretakers to counseling or peer group networks for emotional support while participating in work, education, or training.

(b) In addition to the duties in paragraph (a), for minor parents and pregnant minors, the case manager shall:

(1) Ensure that the contract developed under paragraph (a), clause (4), considers all factors set forth in section 257.33, subdivision 2;

(2) Assess the housing and support systems needed by the caretaker in order to provide the dependent children with adequate parenting. The case manager shall encourage minor parents and pregnant minors who are not living with friends or relatives to live in a group home or foster care setting. If minor parents and pregnant minors are unwilling to live in a group home or foster care setting or if no group home or foster care setting is available, the case manager shall assess their need for training in parenting and independent living skills and when appropriate shall refer them to available counseling programs designed to teach needed skills; and

(3) Inform minor parents or pregnant minors of, and assist them in evaluating the appropriateness of, the high school graduation incentives program under section 126.22, including post-secondary enrollment options, and the employment-related and community-based instruction programs.

(c) A caretaker may request a conciliation conference to attempt to resolve disputes regarding the contents of a contract developed under this section or a housing and support systems assessment conducted under this section. The caretaker may request a hearing pursuant to section 256.045 to dispute the contents of a contract or assessment developed under this section. The caretaker need not request a conciliation conference in order to request a hearing pursuant to section 256.045.

Sec. 13. [MINNESOTA COMMISSION ON NATIONAL AND COMMUNITY SERVICE.]

The Minnesota commission on national and community service retains responsibility for implementing federal programs under the federal commission on national and community service. Responsibilities of the Minnesota commission on national and community service may only be transferred to the governor's workforce development council under Minnesota Statutes 1995 Supplement, section 268.665 after the attorney general has certified that the workforce development council meets all the federal requirements for the commission on national and community service.

Notwithstanding Minnesota Statutes 1995 Supplement, section 121.705, if the Minnesota commission on national and community service retains responsibility for federal programs under this section, it also retains responsibility for administering the youth works program and state appropriations made for the youth works program under Laws 1995, First Special Session chapter 3, article 4, section 29, subdivisions 19 and 20.

Sec. 14. [PILOT AFTER-SCHOOL ENRICHMENT PROGRAMS.]

Subdivision 1. [ESTABLISHMENT.] A pilot after-school enrichment grant program is established to provide implementation grants to family service collaboratives for designated neighborhoods of Minneapolis and St. Paul, and for selected areas outside Minneapolis and St. Paul. The commissioner of children, families, and learning shall develop criteria for after-school enrichment programs in up to three qualifying neighborhoods in each of the cities, and selected neighborhoods in the rest of the state. Qualifying neighborhoods are designated by the commissioner under subdivision 2. The community organization, together with a family service collaborative, must collaboratively plan and implement programs with the school district, city government, park boards, or other government and community organizations.

Subd. 2. [QUALIFYING NEIGHBORHOODS.] In Minneapolis, the neighborhoods that qualify for designation are the Near North Side, Hawthorne, Sumner-Glenwood, Powderhorn Central, Whittier and Phillips. In St. Paul, neighborhoods that qualify for designation are Summit-University, Thomas-Dale, North End, Payne-Phalen, Daytons Bluff, and the West Side.

Subd. 3. [PROGRAM OUTCOMES.] The outcomes of the after-school enrichment programs are to:

(1) increase the number of children participating in after-school programs who live in the designated neighborhoods;

(2) reduce the juvenile crime rate in the designated neighborhoods;

(3) reduce the number of police calls involving juveniles during the afternoon after-school hours;

(4) increase school attendance;

(5) reduce the number of school suspensions;

(6) increase the number of youth engaged in community service;

(7) increase youth academic achievement; and

(8) increase the skills of youth in computers, the arts, athletics, and other activities.

Subd. 4. [PLAN.] (a) By July 1, 1996, each selected community organization shall develop a plan for an after-school enrichment program for children ages 8 through 13 who reside in the designated neighborhood that is served by the community organization. Each selected community organization must identify points of collaboration with other organizations and resources available to implement an after-school enrichment program. The plan must include:

(1) collaboration and leverage of existing community resources;

(2) creative outreach to the neighborhood children;

(3) collaboration with grassroots organizations in the neighborhood;

(4) collaboration with schools and local government agencies;

(5) community control over the design and delivery of the enrichment program;

(6) availability of enrichment activities for a minimum of five days per week after school with any future plans to extend the activities to seven days per week; and

(7) identification of the sources of nonstate funding to extend the programming beyond the period of the pilot grant.

(b) The commissioner shall provide technical assistance to the organizations, if needed, to develop a plan.

Subd. 5. [PLAN APPROVAL; GRANTS.] (a) A plan developed by a community organization under subdivision 4 shall be submitted to the commissioner for review. The commissioner shall establish a review process that considers the needs of the neighborhood, the capacity of the organization, and availability of the organization's resources to meet those neighborhood needs. The commissioner shall award a grant to a community organization for the implementation of an approved plan.

(b) The commissioner may develop additional outcomes under subdivision 3 and plan requirements under subdivision 4.

Sec. 15. [GRANTS TO IMPLEMENT CONSTRUCTIVE SCHOOL DISCIPLINE POLICIES.]

Subdivision 1. [POLICY.] The legislature acknowledges the importance of teaching students in a regular classroom setting to the extent possible. Students in an educational setting are expected to behave in a manner that is appropriate for learning to take place. When students fail to meet behavioral expectations, school discipline policies should penalize students' inappropriate behavior, with the ultimate goal of returning students to their regular classrooms. Schools should involve parents in collaborative efforts to alter students' inappropriate classroom behavior. Schools and parents should find ways to ensure that students' inappropriate behavior does not become chronic, necessitating long-term intervention and the need for special services.

Subd. 2. [ESTABLISHMENT.] A grant program for fiscal year 1997 is established to develop, implement, and evaluate school discipline policies, consistent with the pupil fair dismissal act under Minnesota Statutes, sections 127.26 to 127.48. Discipline policies, developed under this section, should be designed to enable students to successfully return to the regular classroom setting after being sanctioned for inappropriate behavior. Discipline policies should focus on early intervention strategies to limit the need for providing regular education students with additional special programs and services.

Subd. 3. [ELIGIBILITY.] An applicant for a grant must be a school site, a school district, a charter school, or a provider of an alternative education program. To be eligible for a grant, the grant applicant must meet all of the following criteria:

(1) develop a plan to mediate issues relating to district or school site codes of conduct that apply to students who are removed from a class or activity period;

(2) include in the code of conduct a plan to remove from the regular classroom setting those students who violate the code;

(3) provide students who violate the code with an alternative education setting within the school or program site; and

(4) make the alternative education setting a constructive experience by using instructional materials tied to educational standards, placing students in an alternative setting outside the normal school day, involving parents in effecting disciplinary measures, or developing intervention techniques such as time outs, among other alternatives.

Subd. 4. [APPLICATION PROCESS.] To obtain a grant to implement constructive school discipline policies, a grant applicant must submit an application to the commissioner of children, families, and learning in the form and manner the commissioner establishes. The application must describe how the applicant will meet the eligibility criteria under subdivision 3. The commissioner may require the applicant to provide additional information.

Subd. 5. [GRANT AWARDS.] The commissioner may award grants of up to $50,000. Grant recipients must be located throughout the state and have diverse experiences with student disciplinary matters. The amount of the grant shall be based on the number of students the grant recipient anticipates may receive disciplinary sanctions and on the alternative education settings the grant recipient proposes to use. Grant recipients must use the grant proceeds to accomplish the purposes of this section.

Subd. 6. [EVALUATION.] The commissioner shall evaluate the grant sites and selected control sites to determine the impact of the constructive discipline policy grant program on measures of student behavior and performance, including, but not limited to, student achievement and attendance, and the impact of the program on the school site, the student body, the classroom, and the school faculty. The evaluation must also address the financial impact of the program on the district and the school site. Upon implementing a student code of conduct consistent with this section, the grant recipient must cooperate in evaluating the impact of code policies. As a part of the evaluation process, the grant recipient must document student and parent response to code policies over at least a three-year period. The commissioner shall compile for the education committees of the legislature a progress report by February 1, 1998, and a final report by February 1, 2000, on the effectiveness and impact of discipline policies.

Sec. 16. [ADULT BASIC EDUCATION STUDY.]

The legislature finds that increased adult literacy and access to educational opportunities are necessary for undereducated adults to more fully participate in their families and to become self-sufficient contributors to their communities and the Minnesota economy. There is a growing recognition that basic education provides the opportunity for adults to learn the skills necessary for fuller participation. To examine the current and future needs for adult basic education and the resources necessary to meet these identified needs, the adult basic education team of the department of children, families, and learning shall conduct or contract for a study of adult basic education. The study, at a minimum, must include the following:

(1) an examination of the adult basic education formula under section 124.26;

(2) the percentage of full adult basic education formula funding that is prorated and the impact of proration on programming and service delivery;

(3) the hold harmless provision based on an adult basic education project's 1991-1992 state aid, and the impact on program delivery;

(4) the distribution of funds under the adult basic education formula and how closely it matches the need for adult basic education throughout the state;

(5) an inventory of federal, state, and local projects and programs with skills and education programming for adults; and

(6) an examination of the changing role for adult basic education with potential changes in income maintenance programs and other aspects of welfare reform.

The commissioner shall report the findings of the study to the chairs of the education committees of the legislature by December 1, 1996. The report must contain recommendations for funding of adult basic education and for consolidation or coordination of adult education programming.

Sec. 17. [SPECIAL COMMUNITY SERVICE LEVY.]

In addition to other levies it is authorized to make, each year independent school district No. 2190, Yellow Medicine East, may levy on the property in the former school district No. 892, Clarkfield, for the costs of operating the district-owned swimming pool in Clarkfield. The proceeds of this levy must be deposited in the district's community service fund. The levy may not exceed the net actual cost operation of the pool in the previous year. Net actual costs are defined as operating costs less operating revenues.

Sec. 18. [APPROPRIATIONS.]

Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums indicated in this section are appropriated from the general fund to the commissioner of children, families, and learning for the fiscal years designated.

Subd. 2. [YOUTH ENRICHMENT GRANTS.] For youth enrichment grants:

$2,500,000. . . . .1996

The commissioner may use up to five percent of this appropriation to provide technical assistance to community organizations.

The commissioner may use up to ten percent of this appropriation for grants to neighborhoods outside of Minneapolis and St. Paul that meet the criteria established by the commissioner under section 14.

This appropriation is available until June 30, 1997.

Subd. 3. [DISCIPLINE.] For grants to implement constructive school discipline policies:

$300,000. . . . .1997

Grant recipients may expend the grant proceeds over a three-year period. Of this amount, up to $20,000 is for evaluation under section 15, subdivision 6.

Sec. 19. [EFFECTIVE DATE.]

Section 5 is effective September 1, 1996.

Sections 13, 14, 16, and 18, subdivision 2, are effective the day following final enactment.

Section 1. Minnesota Statutes 1994, section 124.239, subdivision 5, is amended to read:

Subd. 5. [LEVY REVENUE AUTHORIZED.] A district, after local board approval, may levy is eligible for revenue for costs related to an approved facility plan as follows:

(a) if the district has indicated to the commissioner that bonds will be issued, the district may levy for the principal and interest payments on outstanding bonds issued according to subdivision 3; or

(b) if the district has indicated to the commissioner that the plan will be funded through the levy according to subdivision 5a, the district may levy receive revenue according to the schedule approved in the plan.

Sec. 2. Minnesota Statutes 1994, section 124.239, is amended by adding a subdivision to read:

Subd. 5a. [LEVY.] A district's alternative facilities levy is equal to the district's alternative facilities revenue authorized under subdivision 5 multiplied by the lesser of one, or the ratio of:

(1) the quotient derived by dividing the adjusted net tax capacity of the district for the year preceding the year the levy is certified by the actual pupil units in the district for the school year to which the levy is attributable; to

(2) $4,707.50.

Sec. 3. Minnesota Statutes 1994, section 124.239, is amended by adding a subdivision to read:

Subd. 5b. [AID.] A district's alternative facilities equalization aid is equal to the difference between the district's alternative facilities revenue and its alternative facilities levy. If the district does not levy the entire amount permitted, the aid is reduced in proportion to the actual amount levied.

Sec. 4. Minnesota Statutes 1995 Supplement, section 124.243, subdivision 2, is amended to read:

Subd. 2. [CAPITAL EXPENDITURE FACILITIES REVENUE.] (a) Capital expenditure facilities previous formula revenue for a district equals $128 times its actual pupil units for the school year.

(b) For fiscal years 1996, capital expenditure facilities revenue for a district equals $100 times the district's maintenance cost index times its actual pupil units for the school year.

(c) Notwithstanding paragraph (b), for fiscal year 1996, the revenue for each district equals 25 percent of the amount determined in paragraph (b) plus 75 percent of the previous formula revenue.

(d) Notwithstanding paragraph (b), for fiscal year 1997, the revenue for each district equals 50 percent of the amount determined in paragraph (b) plus 50 percent of the previous formula revenue.

(e) Notwithstanding paragraph (b), for fiscal year 1998, the revenue for each district equals 75 percent of the amount determined in paragraph (b) plus 25 percent of the previous formula revenue.

(f) The revenue in paragraph (b) for a district that operates a program under section 121.585, is increased by an amount equal to $15 times the number of actual pupil units at the site where the program is implemented.

Sec. 5. Minnesota Statutes 1995 Supplement, section 124.2445, is amended to read:

124.2445 [PURCHASE OF CERTAIN EQUIPMENT.]

The board of a school district may issue certificates of indebtedness or capital notes subject to the school district debt limits to purchase vehicles other than school buses, computers, telephone systems, cable equipment, photocopy and office equipment, technological equipment for instruction, and other capital equipment having an expected useful life at least as long as the terms of the certificates or notes. The certificates or notes must be payable in not more than five years and must be issued on the terms and in the manner determined by the board. The certificates or notes may be issued by resolution and without the requirement for an election. The certificates or notes are general obligation bonds for purposes of section 124.755. A tax levy must be made for the payment of the principal and interest on the certificates or notes, in accordance with section 475.61, as in the case of bonds. That The sum of the tax levy levies under this section and section 124.2455, for each year must not exceed the amount of the district's total operating capital revenue for the year the initial debt service levies are certified. The district's general education levy for each year must be reduced by the amount of the tax levies for debt service certified for each year for payment of the principal and interest on the certificates or notes as required by section 475.61.

Sec. 6. Minnesota Statutes 1995 Supplement, section 124.2455, is amended to read:

124.2455 [BONDS FOR CERTAIN CAPITAL FACILITIES.]

(a) In addition to other bonding authority, with approval of the commissioner, a school district may issue general obligation bonds for certain capital projects under this section. The bonds must be used only to make capital improvements including:

(1) under section 124.243, subdivision 6, capital expenditure facilities 124A.22, subdivision 11, total operating capital revenue uses specified in clauses (4), (6), (7), (8), (9), and (10);

(2) the cost of energy modifications;

(3) improving handicap accessibility to school buildings; and

(4) bringing school buildings into compliance with life and safety codes and fire codes.

(b) Before a district issues bonds under this subdivision, it must publish notice of the intended projects, the amount of the bond issue, and the total amount of district indebtedness.

(c) A bond issue tentatively authorized by the board under this subdivision becomes finally authorized unless a petition signed by more than 15 percent of the registered voters of the school district is filed with the school board within 30 days of the board's adoption of a resolution stating the board's intention to issue bonds. The percentage is to be determined with reference to the number of registered voters in the school district on the last day before the petition is filed with the school board. The petition must call for a referendum on the question of whether to issue the bonds for the projects under this section. The approval of 50 percent plus one of those voting on the question is required to pass a referendum authorized by this section.

(d) The bonds may be issued in a principal amount, that when combined with interest thereon, will be paid off with not more than 50 percent of current and anticipated revenue for capital facilities under this section or a successor section for the current year plus projected revenue not greater than that of the current year for the next ten years. Once finally authorized, the district must set aside the lesser of the amount necessary to make the principal and interest payments or 50 percent of the current year's revenue for capital facilities under this section or a successor section each year in a separate account until all principal and interest on the bonds is paid. The district must annually transfer this amount from its capital fund to the debt redemption fund. The bonds must be paid off within ten years of issuance. The bonds must be issued in compliance with chapter 475, except as otherwise provided in this section. A tax levy must be made for the payment of principal and interest on the bonds in accordance with section 475.61. The sum of the tax levies under this section and section 124.2455, for each year must not exceed the amount of the district's total operating capital revenue for the year the initial debt service levies are certified. The district's general education levy for each year must be reduced by the amount of the tax levies for debt service certified for each year for payment of the principal and interest on the bonds.

(e) Notwithstanding paragraph (d), bonds issued by a district within the first five years following voter approval of a combination according to section 122.243, subdivision 2, bonds may be issued in a principal amount, that when combined with interest thereon, will be paid off with not more than 50 percent of current and anticipated revenue for capital facilities under this section or a successive section for the current year plus projected revenue not greater than that of the current year for the next 20 years must be paid off within 20 years of issuance. All the other provisions and limitation of paragraph (d) apply.

Sec. 7. Minnesota Statutes 1994, section 124.91, subdivision 1, is amended to read:

Subdivision 1. [TO LEASE BUILDING OR LAND.] When a district finds it economically advantageous to rent or lease a building or land for any instructional purposes or for school storage or furniture repair, and it determines that the capital expenditure facilities revenues authorized under section sections 124.243 and 124A.22, subdivision 10, are insufficient for this purpose, it may apply to the commissioner for permission to make an additional capital expenditure levy for this purpose. An application for permission to levy under this subdivision must contain financial justification for the proposed levy, the terms and conditions of the proposed lease, and a description of the space to be leased and its proposed use. The criteria for approval of applications to levy under this subdivision must include: the reasonableness of the price, the appropriateness of the space to the proposed activity, the feasibility of transporting pupils to the leased building or land, conformity of the lease to the laws and rules of the state of Minnesota, and the appropriateness of the proposed lease to the space needs and the financial condition of the district. The commissioner must not authorize a levy under this subdivision in an amount greater than the cost to the district of renting or leasing a building or land for approved purposes. The proceeds of this levy must not be used for custodial or other maintenance services. A district may not levy under this subdivision for the purpose of leasing or renting a district-owned building to itself.

Sec. 8. Minnesota Statutes 1994, section 124.91, is amended by adding a subdivision to read:

Subd. 7. [LEASE PURCHASE, INSTALLMENT BUYS.] (a) Upon application to, and approval by the commissioner in accordance with the procedures and limits in subdivision 1, a district, as defined in this subdivision, may:

(1) purchase real or personal property under an installment contract or may lease real or personal property with an option to purchase under a lease purchase agreement, by which installment contract or lease purchase agreement title is kept by the seller or vendor or assigned to a third party as security for the purchase price, including interest, if any; and

(2) annually levy the amounts necessary to pay the district's obligations under the installment contract or lease purchase agreement.

(b) The obligation created by the installment contract or the lease purchase agreement must not be included in the calculation of net debt for purposes of section 475.53, and does not constitute debt under other law. An election is not required in connection with the execution of the installment contract or the lease purchase agreement.

(c) The proceeds of the levy authorized by this subdivision must not be used to acquire a facility to be primarily used for athletic or school administration purposes.

(d) For the purposes of this subdivision, "district" means:

(1) a school district required to have a comprehensive plan for the elimination of segregation whose plan has been determined by the commissioner to be in compliance with the state board of education rules relating to equality of educational opportunity and school desegregation; or

(2) a school district that participates in a joint program for interdistrict desegregation with a district defined in clause (1) if the facility acquired under this subdivision is to be primarily used for the joint program.

(e) Notwithstanding subdivision 1, the prohibition against a levy by a district to lease or rent a district-owned building to itself does not apply to levies otherwise authorized by this subdivision.

(f) For the purposes of this subdivision, any references in subdivision 1 to building or land shall include personal property.

Sec. 9. Minnesota Statutes 1995 Supplement, section 124.961, is amended to read:

124.961 [DEBT SERVICE APPROPRIATION.]

(a) $30,054,000 in fiscal year 1996, $27,370,000 $28,228,000 in fiscal year 1997, and $32,200,000 $33,210,000 in fiscal year 1998 and each year thereafter is appropriated from the general fund to the commissioner of children, families, and learning for payment of debt service equalization aid under section 124.95. The 1998 appropriation includes $4,830,000 $4,982,000 for 1997 and $27,370,000 $28,228,000 for 1998.

(b) The appropriations in paragraph (a) must be reduced by the amount of any money specifically appropriated for the same purpose in any year from any state fund.

Sec. 10. Laws 1995, First Special Session chapter 3, article 5, section 20, subdivision 5, is amended to read:

Subd. 5. [DEBT SERVICE AID.] For debt service aid according to Minnesota Statutes, section 124.95, subdivision 5:

$30,054,000. . . . .1996

$27,370,000 $28,228,000. . . . .1997

The 1996 appropriation includes $30,054,000 for 1996.

The 1997 appropriation includes $27,370,000 $28,228,000 for 1997. This appropriation is 85 percent of the aid entitlement for 1997.

Sec. 11. Laws 1995, First Special Session chapter 3, article 5, section 20, subdivision 6, is amended to read:

Subd. 6. [PLANNING GRANT.] (a) For a grant to independent school district Nos. 325, Lakefield; 328, Sioux Valley; 330, Heron Lake-Okabena; 513, Brewster; and 516, Round Lake acting as a joint powers agreement:

$40,000. . . . .1996

The grant is to cover costs associated with planning for facility needs for a combined district. The facilities must provide for the location of a significant number of noneducational student and community service programs within the facility. The joint powers group must consult with independent school district Nos. 324, Jackson; 177, Windom; and 518, Worthington, and include facility needs and availability in those districts in the group's planning.

(b) A portion of the appropriation must be used to conduct an independent survey of parents as to their preference for a school of attendance for their children if a single high school is located within the joint powers group. The survey of attendance preferences must include the single high school and high schools in neighboring districts.

(c) A portion of the appropriation, not to exceed $5,000, may be granted by the department to independent school districts Nos. 325, Lakefield; and 324, Jackson, for a management study for the purpose of developing a plat and plan for consolidation of those districts under Minnesota Statutes, section 122.23.

Sec. 12. [HEALTH AND SAFETY REVENUE; HIBBING.]

Notwithstanding Minnesota Statutes, section 124.83, subdivision 6, independent school district No. 701, Hibbing, that has a high school building on the National Historic Register, may use health and safety revenue for the construction of a stair tower with classroom space but only to the extent the revenue is substituted for other expenditures required under orders from the fire marshal.

Sec. 13. [LEVY FOR SPECIAL ASSESSMENTS.]

Each year, independent school district No. 204, Kasson-Mantorville, may levy the amount needed to make special assessment payments imposed by a local unit of government according to Minnesota Statutes, chapter 429.

Sec. 14. [LEVY AUTHORITY.]

Subdivision 1. [DELAVAN.] For property taxes payable in 1997 only, independent school district No. 218, Delavan, or its successor district, may levy up to $97,000 on the property in independent school district No. 218. This levy may be made only if independent school district No. 218 has voted to consolidate with independent school district No. 2148, Blue Earth. Revenue received according to this subdivision must be used for capital or maintenance purposes for facilities in independent school district No. 218.

Subd. 2. [ELMORE.] For property taxes payable in 1997 only, independent school district No. 219, Elmore, or its successor district, may levy up to $116,000 on the property in independent school district No. 219. This levy may be made only if independent school district No. 219 has voted to consolidate with independent school district No. 2148, Blue Earth. Revenue received according to this subdivision must be used for capital or maintenance purposes for facilities in independent school district No. 219.

Subd. 3. [BLUE EARTH.] For property taxes payable in 1997 only, independent school district No. 2148, Blue Earth, or its successor district, may levy up to $58,000 on the property in independent school district No. 2148. This levy may be made only if independent school district No. 2148 has voted to consolidate with independent school districts Nos. 218, Delavan, and 219, Elmore. Revenue received according to this subdivision must be used for capital or maintenance purposes for facilities in independent school district No. 2148.

Subd. 4. [NO REFERENDUM LEVY.] Districts making a levy according to this section may not make a levy according to Minnesota Statutes, section 124A.03.

Sec. 15. [NORTH BRANCH LEASE LEVY.]

Notwithstanding the instructional purposes limitation of Minnesota Statutes, section 124.91, subdivision 1, independent school district No. 138, North Branch, may apply to the commissioner of children, families, and learning to make an additional capital levy under Minnesota Statutes, section 124.91, subdivision 1, to rent or lease a building or land for administrative purposes. The levy may not exceed the amount necessary to obtain space similar in size and quality to the office space vacated for instructional purposes.

Sec. 16. [APPROVAL FOR DEBT SERVICE EQUALIZATION AID; ROYALTON.]

Notwithstanding Minnesota Statutes, section 124.95, subdivision 2, debt service levy attributable to bonds authorized at an election conducted in 1995 by independent school district No. 485, Royalton, qualifies for debt service equalization aid.

Sec. 17. [EFFECTIVE DATE.]

Sections 1 to 3 are effective July 1, 1996, for revenue for 1997-1998 and later school years.

Sections 9, 10, and 16 are effective the day following final enactment and apply to debt service aid payments for fiscal year 1997 and thereafter.

Sections 11 and 12 are effective the day following final enactment.

Sections 13 and 15 are effective July 1, 1996, and apply for taxes payable in 1997 and later years.

Section 1. Minnesota Statutes 1994, section 123.35, subdivision 19a, is amended to read:

Subd. 19a. [LIMITATION ON PARTICIPATION AND FINANCIAL SUPPORT.] (a) No school district shall be required by any type of formal or informal agreement except an agreement to provide building space according to paragraph (f), including a joint powers agreement, or membership in any cooperative unit defined in subdivision 19b, paragraph (d), to participate in or provide financial support for the purposes of the agreement for a time period in excess of one fiscal year, or the time period set forth in this subdivision. Any agreement, part of an agreement, or other type of requirement to the contrary is void.

(b) This subdivision shall not affect the continued liability of a school district for its share of bonded indebtedness or other debt incurred as a result of any agreement before July 1, 1993. The school district is liable only until the obligation or debt is discharged and only according to the payment schedule in effect on July 1, 1993, except that the payment schedule may be altered for the purpose of restructuring debt or refunding bonds outstanding on July 1, 1993, if the annual payments of the school district are not increased and if the total obligation of the school district for its share of outstanding bonds or other debt is not increased.

(c) To cease participating in or providing financial support for any of the services or activities relating to the agreement or to terminate participation in the agreement, the school board shall adopt a resolution and notify other parties to the agreement of its decision on or before February 1 of any year. The cessation or withdrawal shall be effective June 30 of the same year except that for a member of an education district organized under sections 122.91 to 122.95 or an intermediate district organized under chapter 136D, cessation or withdrawal shall be effective June 30 of the following fiscal year. At the option of the school board, cessation or withdrawal may be effective June 30 of the following fiscal year for a district participating in any type of agreement.

(d) Before issuing bonds or incurring other debt, the governing body responsible for implementing the agreement shall adopt a resolution proposing to issue bonds or incur other debt and the proposed financial effect of the bonds or other debt upon each participating district. The resolution shall be adopted within a time sufficient to allow the school board to adopt a resolution within the time permitted by this paragraph and to comply with the statutory deadlines set forth in sections 122.895, 125.12, and 125.17. The governing body responsible for implementing the agreement shall notify each participating school board of the contents of the resolution. Within 120 days of receiving the resolution of the governing body, the school board of the participating district shall adopt a resolution stating:

(1) its concurrence with issuing bonds or incurring other debt;

(2) its intention to cease participating in or providing financial support for the service or activity related to the bonds or other debt; or

(3) its intention to terminate participation in the agreement.

A school board adopting a resolution according to clause (1) is liable for its share of bonded indebtedness or other debt as proposed by the governing body implementing the agreement. A school board adopting a resolution according to clause (2) is not liable for the bonded indebtedness or other debt, as proposed by the governing body, related to the services or activities in which the district ceases participating or providing financial support. A school board adopting a resolution according to clause (3) is not liable for the bonded indebtedness or other debt proposed by the governing body implementing the agreement.

(e) After July 1, 1993, a district is liable according to paragraph (d) for its share of bonded indebtedness or other debt incurred by the governing body implementing the agreement to the extent that the bonds or other debt are directly related to the services or activities in which the district participates or for which the district provides financial support. The district has continued liability only until the obligation or debt is discharged and only according to the payment schedule in effect at the time the governing body implementing the agreement provides notice to the school board, except that the payment schedule may be altered for the purpose of refunding the outstanding bonds or restructuring other debt if the annual payments of the district are not increased and if the total obligation of the district for the outstanding bonds or other debt is not increased.

(f) A school district that is a member of a cooperative unit as defined in subdivision 19b, paragraph (d), may obligate itself to participate in and provide financial support for an agreement with a cooperative unit to provide school building space for a term not to exceed two years with an option on the part of the district to renew for an additional two years.

Sec. 2. Minnesota Statutes 1994, section 123.3514, subdivision 9, is amended to read:

Subd. 9. [EXCEPTION; INTERMEDIATE DISTRICTS.] A secondary pupil who is a resident of a member district of an intermediate district, as defined in section 136C.02, subdivision 7, may not enroll in that intermediate district's vocational program as a post-secondary pupil under this section when the intermediate district operates a secondary program at a college facility and secondary students have access to the post-secondary curriculum and receive high school and college credit for successfully completing the program.

Sec. 3. Minnesota Statutes 1995 Supplement, section 124.32, subdivision 12, is amended to read:

Subd. 12. [ALLOCATION FROM COOPERATIVE CENTERS, SERVICE COOPERATIVES, EDUCATION DISTRICTS, AND INTERMEDIATE DISTRICTS.] For purposes of this section, a special education cooperative, service cooperative, education district, or an intermediate district shall allocate its approved expenditures for special education programs among participating school districts. Special education aid for services provided by a cooperative, service cooperative, education district, or intermediate district shall be paid to the participating school districts or to a special education cooperative, service cooperative, education district, or intermediate district if designated by a participating school district.

Sec. 4. Minnesota Statutes 1994, section 124.573, subdivision 2e, is amended to read:

Subd. 2e. [ALLOCATION FROM COOPERATIVE CENTERS AND INTERMEDIATE DISTRICTS.] For purposes of subdivisions 2b, paragraph (b), and 2f, paragraph (b), a cooperative center or an intermediate district shall allocate its approved expenditures for secondary vocational education programs among participating school districts. For purposes of subdivision 2f, paragraph (a), a cooperative center or an intermediate district shall allocate its secondary vocational aid for fiscal year 1994 among participating school districts. For 1995 and later fiscal years, secondary vocational aid for services provided by a cooperative center or an intermediate district shall be paid to the participating school district or to a vocational cooperative, education district, or intermediate district if designated by a participating school district.

Sec. 5. Laws 1995, First Special Session chapter 3, article 6, section 17, subdivision 2, is amended to read:

Subd. 2. [SINGLE BOARD.] The districts shall provide in the enhanced pairing agreement that the governance of the districts will be by the combined membership of the separate boards acting as a single board for purposes of quorum and passing resolutions. A quorum must include a minimum of one member from each of the separate boards. The membership of the separate boards may be reduced to five four members in a manner consistent with Minnesota Statutes, section 123.33, subdivision 1. The actions reserved for the separate boards shall be ratification of amendments to the agreement, serving a notice of withdrawal from the agreement, and other items reserved for the separate boards as defined in the agreement.

Sec. 6. Laws 1995, First Special Session chapter 3, article 6, section 17, subdivision 4, is amended to read:

Subd. 4. [FINANCIAL.] (a) Fiscal operations shall be merged under the enhanced pairing agreement, and the single board shall be the fiscal agent to meet reporting requirements. The department of education children, families, and learning shall assign a single identification number to apply to the districts subject to the agreement. Aid entitlements and levy limitations shall be the sum of the amounts computed separately for each of the districts participating in the enhanced pairing agreement. Levies shall be made jointly except for levies under Minnesota Statutes, sections 124A.03 and 124.97 by the single board and shall be spread on all taxable property in the districts participating in the enhanced pairing agreement. Districts subject to the agreement shall be considered a single independent school district for purposes of fees or dues assessments.

(b) Notwithstanding paragraph (a), the single board may spread a levy under Minnesota Statutes, section 124A.03, approved before January 1, 1996, and levies under sections 124.2714, 124.83, 124.84, and 124.97, on the property which is taxable in each school district participating in the enhanced pairing agreement according to the separate levy limitations computed for each district. The single board shall certify to the county auditor and the department of children, families, and learning the amount of the levy to be spread on the taxable property in each district according to this paragraph.

(c) Title to all the unattached property and all cash reserves of any district subject to the enhanced pairing agreement shall become the property of the single board unless otherwise provided for in the agreement. All legally valid and enforceable claims and contract obligations pass to the single board. For purposes of litigation, the districts

subject to the agreement may be recognized singly or jointly. If the agreement dissolves or a board withdraws from the agreement, the commissioner shall divide assets and liabilities of the single board proportionately based on the weighted average daily membership over the last three years.

Sec. 7. Laws 1995, First Special Session chapter 3, article 6, section 17, is amended by adding a subdivision to read:

Subd. 4a. [REFERENDUM REVENUE.] (a) The single board shall submit the question of authorizing referendum revenue under Minnesota Statutes, section 124A.03, to the voters of the districts subject to the agreement. A majority of those voting in the affirmative on the question is sufficient to authorize the referendum revenue. The single board must certify the vote of the election.

(b) As of the effective date of the dissolution of the enhanced pairing agreement, the authorization for all referendum revenues under Minnesota Statutes, section 124A.03, previously approved by the voters of the districts subject to the agreement is canceled.

Sec. 8. Laws 1995, First Special Session chapter 3, article 6, section 17, is amended by adding a subdivision to read:

Subd. 4b. [REFERENDUM; DEBT.] The single board shall submit the question of authorizing bonded debt to the voters of the districts subject to the agreement. The question submitted shall state the total amount of funding needed from all sources. A majority of those voting in the affirmative on the question is sufficient to authorize the bonded debt. The single board must certify the vote of the election and authorize the school boards to issue the bonds on public sale in accordance with Minnesota Statutes, chapter 475.

Sec. 9. Laws 1995, First Special Session chapter 3, article 6, section 17, is amended by adding a subdivision to read:

Subd. 4c. [DATA REPORTING.] (a) For purposes of computing aid entitlements and levy limitations for the school districts participating in the enhanced pairing agreement, the commissioner must allocate combined financial data among the participating school districts based on the number of actual pupil units in each school district in the year for which financial data are allocated.

(b) Notwithstanding paragraph (a), if requested by the single board, the commissioner may allocate financial data among participating school districts based on estimates of actual expenditures for projects or services by school district.

Sec. 10. [CROW RIVER AND MEEKER AND WRIGHT SPECIAL EDUCATION COOPERATIVES.]

Notwithstanding Minnesota Statutes, sections 123.35, subdivision 19a, and 123.37, special education cooperative No. 52-937, Crow River, and special education cooperative No. 52-938, Meeker and Wright, and their member school districts may obligate themselves to participate in and provide financial support for an agreement to provide school building space for the pupils served by the cooperatives for a term not to exceed ten years.

Sec. 11. [SCHOOL BOARD ELECTION.]

Subdivision 1. [SPECIFYING AN ELECTION PROCESS.] Notwithstanding any language to the contrary in Minnesota Statutes, chapter 205A, or other statutory language to the contrary governing school district consolidation and board formation, the election of school board members for a newly consolidated district comprised of independent school district No. 437, Argyle, and independent school district No. 443, Stephen, shall be described in this section.

Subd. 2. [1997 GENERAL ELECTION.] At the 1997 general election, the terms of four members of the transition board shall expire and two school board members shall be elected to four-year terms. One member shall be elected from the area of the former independent school district No. 437, Argyle, and one shall be elected from the area of the former independent school district No. 443, Stephen.

Subd. 3. [1999 GENERAL ELECTION.] At the 1999 general election, the terms of six members of the transition board shall expire and three school board members shall be elected to four-year terms. One member shall be elected from the former independent school district No. 437, Argyle, and one shall be elected from the area of the former independent school district No. 443, Stephen. One member shall be elected at large for a four-year term from the newly created district.

Subd. 4. [2001 GENERAL ELECTION.] At the 2001 general election, the terms of the two school board members elected in 1997 to four-year terms shall expire and two school board members shall be elected. One member shall be elected from the area of the former independent school district No. 437, Argyle, and one shall be elected from the

area of the former independent school district No. 443, Stephen. Also at the 2001 general election, the terms of the two school board members elected in 1996 to five-year terms shall expire and one school board member shall be elected at large to a four-year term from the newly created district.

Subd. 5. [2003 GENERAL ELECTION AND THEREAFTER.] At the 2003 general election and thereafter, all school board members whose terms expire shall be elected at large to four-year terms from the newly created district.

Subd. 6. [BOARD SEATS; APPLICABLE PROVISIONS.] (a) The transitional board shall determine which board seats expire at each election.

(b) At the end of the transition period, the statutory provisions governing board formation and election and Minnesota Statutes, chapter 205A, shall apply.

Sec. 12. [LEVY CALCULATIONS; ENHANCED PAIRING.]

Levy calculations under section 6 are effective for taxes payable in 1996 and later. The commissioner of the department of children, families, and learning shall adjust levy calculations as necessary to be consistent with section 2.

Section 1. Minnesota Statutes 1995 Supplement, section 120.064, subdivision 3, is amended to read:

Subd. 3. [SPONSOR.] A school board, a service cooperative, community college, state university, technical college, or the University of Minnesota may sponsor one or more charter schools.

No more than a total of 40 charter schools may be authorized not more than three of which may be sponsored by public post-secondary institutions. The state board of education shall advise potential sponsors when the maximum number of charter schools has been authorized.

Sec. 2. Minnesota Statutes 1995 Supplement, section 121.11, subdivision 7c, is amended to read:

Subd. 7c. [RESULTS-ORIENTED GRADUATION RULE.] (a) The legislature is committed to establishing a rigorous, results-oriented graduation rule for Minnesota's public school students. To that end, the state board shall use its rulemaking authority under subdivision 7b to adopt a statewide, results-oriented graduation rule to be implemented starting with students beginning ninth grade in the 1996-1997 school year. The board shall not prescribe in rule or otherwise the delivery system, form of instruction, or a single statewide form of assessment that local sites must use to meet the requirements contained in this rule.

(b) Assessments used to measure knowledge required by all students for graduation must be developed according to the most current version of professional standards for educational testing. To successfully accomplish paragraph (a), the state board shall set in rule high academic standards for all students. The standards must contain the foundational skills in the three core curricular areas of reading, writing, and mathematics while meeting requirements for high school graduation. The standards must also provide an opportunity for students to excel by meeting higher academic standards through a profile of learning that uses curricular requirements to allow students to expand their knowledge and skills beyond the foundational skills. All state board actions regarding the rule must be premised on the following:

(1) the rule is intended to raise academic expectations for students, teachers, and schools;

(2) any state action regarding the rule must evidence consideration of school district autonomy; and

(3) the department of children, families, and learning, with the assistance of school districts, must make available information about all state initiatives related to the rule to students and parents, teachers, and the general public in a timely format that is appropriate, comprehensive, and readily understandable.

(c) For purposes of adopting the rule, the state board, in consultation with the department, recognized psychometric experts in assessment, and other interested and knowledgeable educators, using the most current version of professional standards for educational testing, shall evaluate the alternative approaches to assessment.

(c) (d) The content of the graduation rule must differentiate between minimum competencies reflected in the basic requirements assessment and rigorous profile of learning standards. When fully implemented, the requirements for high school graduation in Minnesota, including must include both basic requirements and the required profile of learning,. The profile of learning must measure student performance using performance-based assessments compiled over time that integrate higher academic standards, higher order thinking skills, and application of knowledge from a variety of content areas. The profile of learning shall include a broad range of academic experience and accomplishment necessary to achieve the goal of preparing students to function effectively as purposeful thinkers, effective communicators, self-directed learners, productive group participants, and responsible citizens.

(d) (e) The state board shall periodically review and report on the assessment process and student achievement with the expectation of raising the standards and expanding high school graduation requirements.

(e) (f) The state board shall report in writing to the legislature annually by January 15 on its progress in developing and implementing the graduation requirements according to the requirements of this subdivision and section 123.97 until such time as all the graduation requirements are implemented.

Sec. 3. [121.1115] [SYSTEM ACCOUNTABILITY AND STATISTICAL ADJUSTMENTS.]

Subdivision 1. [EDUCATIONAL ACCOUNTABILITY AND PUBLIC REPORTING.] Consistent with the state board of education process to adopt a results-oriented graduation rule under section 121.11, subdivision 7c, the state board of education and the department of children, families, and learning, in consultation with education and other system stakeholders, shall establish a coordinated and comprehensive system of educational accountability and public reporting that promotes higher academic achievement.

Subd. 2. [STATISTICAL ADJUSTMENTS.] In developing policies and assessment processes to hold schools and school districts accountable for high levels of academic standards, including the profile of learning, the commissioner shall aggregate student data over time to report student performance levels measured at the school district, regional, or statewide level. When collecting and reporting the data, the commissioner shall: (1) acknowledge the impact of significant demographic factors such as residential instability, the number of single parent families, parents' level of education, and parents' income level on school outcomes; and (2) organize and report the data so that state and local policymakers can understand the educational implications of changes in districts' demographic profiles over time. Any report the commissioner disseminates containing summary data on student performance must integrate student performance and the demographic factors that strongly correlate with that performance.

Sec. 4. Minnesota Statutes 1994, section 123.951, is amended to read:

123.951 [SCHOOL SITE DECISION-MAKING AGREEMENT.]

(a) A school board may enter into an agreement with a school site decision-making team concerning the governance, management, or control of any school in the district. Upon a written request from a proposed school site decision-making team, an initial school site decision-making team shall be appointed by the school board and may include the school principal, representatives of teachers in the school, representatives of other employees in the school, representatives of parents of pupils in the school, representatives of pupils in the school, representatives of other members in the community, or others determined appropriate by the board. The school site decision-making team shall include the school principal or other person having general control and supervision of the school.

(b) School site decision-making agreements must delegate powers and duties to site teams and involve staff members, students as appropriate, and parents in decision making.

(c) An agreement may include:

(1) a mechanism to implement flexible support systems for improvement in student achievement of education outcomes;

(2) a decision-making structure that allows teachers to identify instructional problems and control and apply the resources needed to solve them;

(3) a mechanism to allow principals, or other persons having general control and supervision of the school, to make decisions regarding how financial and personnel resources are best allocated at the site and from whom goods or services are purchased;

(4) a mechanism to implement parental involvement programs under section 126.69 and to provide for effective parental communication and feedback on this involvement at the site level;

(5) a provision that would allow the team to determine who is hired into licensed and nonlicensed positions;

(6) a provision that would allow teachers to choose the principal or other person having general control;

(7) direct contact with other social service providers;

(8) in-service training for site decision-making team members for financial management of school sites; and

(9) any other powers and duties determined appropriate by the board.

The school board of the district remains the legal employer under clauses (5) and (6).

(d) Upon receiving a written request by a school site decision-making team authorized under this section, the school district shall reserve revenue according to section 124A.223. The request shall become part of the agreement according to paragraph (a) and may be made at any time, but shall become effective at the beginning of a school year. Failure of the district to approve the request shall be reported according to paragraph (f). Each school year, a school site decision-making team receiving reserved revenue shall make a written request to reserve revenue.

(e) Any powers or duties not delegated to the school site management team in the school site management agreement shall remain with the school board.

(e) (f) Approved agreements shall be filed with the commissioner. If a school board denies a request to enter into a school site management decision-making agreement or to reserve revenue for the school site decision-making team, it shall provide a copy of the request and the reasons for its denial to the commissioner.

(g) A school site decision-making agreement shall allocate liability for school site decision-making team actions.

Sec. 5. [123.97] [FINDINGS; IMPROVING INSTRUCTION AND CURRICULUM.]

The legislature finds that a process is needed to enable school boards and communities to decide matters related to planning, providing, and improving education instruction and curriculum in the context of the state's high school graduation standards. The process should help districts evaluate the impact of instruction and curriculum on students' abilities to meet graduation standards, use evaluation results to improve instruction and curriculum, and determine services that districts and other public education entities can provide collaboratively with institutions including families and private or public organizations and agencies. The legislature anticipates that a highly focused public education strategy will be an integral part of each district's review and improvement of instruction and curriculum.

Sec. 6. [123.972] [SCHOOL DISTRICT PROCESS.]

Subdivision 1. [DEFINITIONS.] For the purposes of sections 123.97 and 123.972, the following terms have the meanings given them.

(a) "Instruction" means methods of providing learning experiences that enables a student to meet graduation standards.

(b) "Curriculum" means written plans for providing students with learning experiences that lead to knowledge, skills, and positive attitudes.

Subd. 2. [ADOPTING POLICIES.] (a) A school board shall adopt annually a written policy that includes the following:

(1) district goals for instruction and curriculum;

(2) a process for evaluating each student's progress toward meeting graduation standards and identifying the strengths and weaknesses of instruction and curriculum affecting students' progress;

(3) a system for periodically reviewing all instruction and curriculum;

(4) a plan for improving instruction and curriculum; and

(5) an instruction plan that includes education effectiveness processes developed under section 121.608 and integrates instruction, curriculum, and technology.

Subd. 3. [INSTRUCTION AND CURRICULUM ADVISORY COMMITTEE.]

Each school board shall establish an instruction and curriculum advisory committee to ensure active community participation in all phases of planning and improving the instruction and curriculum affecting state graduation standards. A district advisory committee, to the extent possible, shall reflect the diversity of the district and its learning sites, and shall include teachers, parents, support staff, pupils, and other community residents. The district may establish building teams as subcommittees of the district advisory committee under subdivision 4. The district advisory committee shall recommend to the school board districtwide education standards, assessments, and program evaluations. Learning sites may expand upon district evaluations of instruction, curriculum, assessments, or programs. Whenever possible, parents and other community residents shall comprise at least two-thirds of advisory committee members.

Subd. 4. [BUILDING TEAM.] A school may establish a building team to develop and implement an education effectiveness plan to improve instruction and curriculum. The team shall advise the board and the advisory committee about developing an instruction and curriculum improvement plan that aligns curriculum, assessment of student progress in meeting state graduation standards, and instruction.

Subd. 5. [REPORT.] (a) By October 1 of each year, the school board shall use standard statewide reporting procedures the commissioner develops and adopt a report that includes the following:

(1) student performance goals for meeting state graduation standards adopted for that year;

(2) results of local assessment data, and any additional test data;

(3) the annual school district improvement plans; and

(4) information about district and learning site progress in realizing previously adopted improvement plans.

(b) The school board shall publish the report in the local newspaper with the largest circulation in the district or by mail. The board shall make a copy of the report available to the public for inspection. The board shall send a copy of the report to the commissioner of children, families, and learning by October 15 of each year.

(c) The title of the report shall contain the name and number of the school district and read "Annual Report on Curriculum, Instruction, and Student Performance." The report must include at least the following information about advisory committee membership:

(1) the name of each committee member and the date when that member's term expires;

(2) the method and criteria the school board uses to select committee members; and

(3) the date by which a community resident must apply to next serve on the committee.

Subd. 6. [STUDENT EVALUATION.] The school board annually shall provide high school graduates or GED recipients who receive a diploma or its equivalent from the school district with an opportunity to report to the board on the following:

(1) the quality of district instruction, curriculum, and services;

(2) the quality of district delivery of instruction, curriculum, and services;

(3) the utility of district facilities; and

(4) the effectiveness of district administration.

Subd. 7. [PERIODIC REPORT.] Each school district shall periodically ask affected constituencies about their level of satisfaction with school. The district shall include the results of this evaluation in the report required under subdivision 5.

Subd. 8. [BIENNIAL EVALUATION; ASSESSMENT PROGRAM.] At least once every two years, the district report shall include an evaluation of the district testing programs, according to the following:

(1) written objectives of the assessment program;

(2) names of tests and grade levels tested;

(3) use of test results; and

(4) implementation of an assurance of mastery program.

Sec. 7. Minnesota Statutes 1995 Supplement, section 124.17, subdivision 1, is amended to read:

Subdivision 1. [PUPIL UNIT.] Pupil units for each resident pupil in average daily membership shall be counted according to this subdivision.

(a) A prekindergarten pupil with a disability who is enrolled in a program approved by the commissioner and has an individual education plan is counted as the ratio of the number of hours of assessment and education service to 825 with a minimum of 0.28, but not more than one.

(b) A prekindergarten pupil who is assessed but determined not to be handicapped is counted as the ratio of the number of hours of assessment service to 825.

(c) A kindergarten pupil with a disability who is enrolled in a program approved by the commissioner is counted as the ratio of the number of hours of assessment and education services required in the fiscal year by the pupil's individual education program plan to 875, but not more than one.

(d) A kindergarten pupil who is not included in paragraph (c) or (i) is counted as .53 of a pupil unit for fiscal year 1995 and thereafter.

(e) A pupil who is in any of grades 1 to 6 is counted as 1.06 pupil units for fiscal year 1995 and thereafter.

(f) For fiscal year 1996 and fiscal year 1997, a pupil who is in any of grades 7 to 12 is counted as 1.3 pupil units. For fiscal year 1998, a pupil who is in any of grades 7 to 12 is counted as 1.25 pupil units. For fiscal year 1999 and later years, a pupil who is in any of grades 7 to 12 is counted as 1.2 pupil units.

(g) For fiscal year 1996 and fiscal year 1997, a pupil who is in the post-secondary enrollment options program is counted as 1.3 pupil units. For fiscal year 1998, a pupil who is in the post-secondary enrollment options program is counted as 1.25 pupil units. For fiscal year 1999 and later years, a pupil who is in the post-secondary enrollment options program is counted as 1.2 pupil units.

(h) In fiscal year 1998, the sum of a district's general education revenue and referendum revenue may not be reduced by more than two percent due to the reduction in the secondary pupil weight from 1.3 as specified in paragraphs (f) and (g). In fiscal year 1999 and later years, the sum of a district's general education revenue and referendum revenue may not be decreased by more than four percent due to the reduction in the secondary weight from 1.3 as specified in paragraphs (f) and (g).

(i) A kindergarten pupil who is enrolled in a kindergarten program under section 124.2613, for purposes of the basic general education revenue under section 124A.22, subdivision 2, only, is counted as an additional .53 pupil units.

Sec. 8. Minnesota Statutes 1995 Supplement, section 124.248, subdivision 1, is amended to read:

Subdivision 1. [GENERAL EDUCATION REVENUE.] General education revenue shall be paid to a charter school as though it were a school district. The general education revenue for each pupil unit is the state average general education revenue per pupil unit minus $170, calculated without compensatory revenue, transportation sparsity revenue, and the transportation portion of the transition revenue adjustment, plus compensatory revenue as though the school were a school district.

Sec. 9. Minnesota Statutes 1995 Supplement, section 124.248, subdivision 1a, is amended to read:

Subd. 1a. [TRANSPORTATION REVENUE.] Transportation revenue shall be paid to a charter school that provides transportation services according to section 120.064, subdivision 15, as though it were a school district according to this subdivision. Transportation aid shall equal transportation revenue.

(a) For the first two years that In addition to the revenue under subdivision 1, a charter school is providing transportation services, the regular transportation allowance for the charter school shall be equal to the regular transportation allowance for the school district in which the charter school is located. For the third year of transportation services and later fiscal years, the predicted base cost for the charter school shall be equal to the predicted base cost for the school district in which the charter school is located shall receive general education aid for each pupil unit equal to the sum of $170, plus the transportation sparsity allowance for the school district in which the charter school is located, plus the transportation transition allowance for the school district in which the charter school is located.

(b) For the first two years that a charter school is providing transportation services, the nonregular special programs transportation revenue equals the charter school's actual cost in the current school year for nonregular transportation services, minus the amount of regular transportation revenue attributable to FTE's in the handicapped category in the current school year for children with disabilities under section 124.223, subdivisions 4, 5, 7, and 8. For the third year of transportation services and later fiscal years, the nonregular special programs transportation revenue shall be computed according to section 124.225, subdivision 7d, paragraph (b) 14.

Sec. 10. Minnesota Statutes 1995 Supplement, section 124.248, subdivision 2, is amended to read:

Subd. 2. [CAPITAL EXPENDITURE EQUIPMENT USE OF TOTAL OPERATING CAPITAL REVENUE.] Capital expenditure equipment aid shall be paid to a charter school according to section 124.245, subdivision 6, as though it were a school district.

Capital expenditure equipment aid shall equal capital expenditure equipment revenue. Notwithstanding section 124.244 124A.22, subdivision 4 11, a charter school may use the total operating capital revenue for any purpose related to the school.

Sec. 11. Minnesota Statutes 1995 Supplement, section 124.248, subdivision 3, is amended to read:

Subd. 3. [SPECIAL EDUCATION AND LIMITED ENGLISH PROFICIENCY AID.] Special education aid shall be paid to a charter school according to section 124.32 sections 124.3201 and 124.3202, as though it were a school district. The charter school may charge tuition to the district of residence as provided in section 120.17, subdivision 4. Limited English proficiency programs aid shall be paid to a charter school according to section 124.273 as though it were a school district. The charter school shall allocate its special education levy equalization revenue to the resident districts of the pupils attending the charter school as though it were a cooperative, as provided in section 124.321, subdivision 2, paragraph (a), clauses (1) and (3). The districts of residence shall levy as though they were participating in a cooperative, as provided in section 124.321, subdivision 3.

Sec. 12. [124.2613] [FIRST-GRADE PREPAREDNESS PROGRAM.]

Subdivision 1. [PURPOSE.] The purpose of the first-grade preparedness program is to ensure that every child who enters first grade has the skills and developmental readiness necessary to read.

Subd. 2. [QUALIFYING DISTRICT.] A school district may receive first-grade preparedness revenue for qualifying school sites if, consistent with subdivision 6, the school board approves a resolution requiring the district to provide services to all children located in a qualifying school site attendance area.

Subd. 3. [QUALIFYING SCHOOL SITE.] The commissioner shall determine the number of free and reduced lunch pupils as a percent of total average daily membership for each school site that serves kindergarten pupils and rank all school sites from highest to lowest percent. On March 15 of the preceding year, the commissioner shall qualify school sites from the list of ranked sites until $3,150,000 of estimated revenue has been allocated.

Subd. 4. [CHILD PARTICIPATION.] A parent or guardian of any child between the age of four and seven may request that the child not participate in a first-grade preparedness program. If the parent requests and the district determines that the child will have the skills and developmental readiness necessary to read by age seven, then the child is not required to participate in the program.

Subd. 5. [PROGRAM.] A qualifying school site must develop its first-grade preparedness program in consultation with other providers of school readiness and child development services. A school site must either offer a first-grade preparedness program to participating children who are five years of age or older for the full school day every day or a half-day program for participating children who are four years old. Where possible, individuals receiving assistance under a family assistance plan can meet the work activity requirement of the plan by participating in a first-grade preparedness program as a volunteer.

Subd. 6. [EXTENDED DAY REQUIREMENTS.] The board of a qualifying school district must develop and approve a plan to provide extended day services to serve as many children as possible. To accept children whose families participate in child care assistance programs under section 256H.03 or 256H.05, and to meet the requirements of section 245A.03, subdivision 2, the board must formally approve the first-grade preparedness program. All revenue received under subdivision 7 must be allocated to the qualifying school sites within the district.

Subd. 7. [PREPAREDNESS REVENUE.] A qualifying school district is eligible for first-grade preparedness revenue equal to the basic formula allowance for that year times the number of pupil units calculated according to section 124.17, subdivision 1, paragraph (i), in each qualifying school site. If the first-grade preparedness revenue is insufficient to fully fund the formula amounts, the commissioner shall prorate the revenue provided to each qualifying school site.

Subd. 8. [EVALUATION.] The commissioner of children, families, and learning, in consultation with representatives of the state board of teaching, elementary school classroom teachers, and teacher educators, shall develop an evaluation for qualifying school sites to use in determining their success in ensuring that every child entering the first grade is ready to read. The commissioner shall assist a school site with its evaluation at the request of the site.

Sec. 13. Minnesota Statutes 1994, section 124.311, subdivision 2, is amended to read:

Subd. 2. [ELIGIBLE DISTRICTS.] To be eligible to receive assurance of mastery revenue, a district must have a policy process adopted according to section 126.67 123.972, subdivision 3a, that identifies the direct instructional services to be used to assure that individual pupils master the learner outcomes in communications and mathematics 2.

Sec. 14. Minnesota Statutes 1994, section 124.311, subdivision 3, is amended to read:

Subd. 3. [ELIGIBLE PUPILS.] A pupil is eligible to receive services provided with assurance of mastery revenue if the pupil has not demonstrated mastery of progress toward mastering learner outcomes in communications or mathematics, or both the required graduation standards, after receiving instruction that was designed to enable the pupil to master make progress toward mastering the learner outcomes required graduation standards in a regular classroom setting. To determine pupil eligibility, a district must use the learner outcomes and the evaluation process, adopted by the school board under section 126.666 123.972, subdivision 1, paragraph (a), clauses (2) and (3) 2, for the subjects and at the grade level at which the district uses the revenue.

Sec. 15. Minnesota Statutes 1994, section 124.311, subdivision 7, is amended to read:

Subd. 7. [DISTRICT REPORT.] A district that receives assurance of mastery revenue shall include the following in the report required by section 126.666 123.972, subdivision 4 5:

(a) (1) a summary of initial assessment results used to determine pupil eligibility to receive instructional services must be included. The summary must include:

(1) a description of the assessment device used;

(2) the number of pupils who were assessed; and

(3) the number of pupils who were determined to be eligible to receive services.;

(b) (2) a description of the services provided to eligible pupils must be included.; and

(c) (3) a summary of assessment results for eligible pupils obtained after providing the services must be included.

Sec. 16. [124A.223] [REVENUE RESERVED FOR SCHOOL SITES.]

Upon request of the school site decision-making team, a school district shall reserve revenue for a school site decision-making team that has entered into an agreement under section 123.951. The district shall reserve an amount up to five percent of (1) the basic formula allowance less $300, times (2) the actual pupil units at the site for that year. The amount of revenue a district reserves for a school site under this section includes all revenue the district allocates for the current school year to that site as part of a school site decision-making agreement under section 123.951. Only the school site decision-making team may spend revenue reserved under this section.

Sec. 17. [GRANTS FOR ACHIEVING MEASURABLE PERFORMANCE OBJECTIVES.]

Subdivision 1. [ESTABLISHMENT.] A grant program for fiscal year 1997 is established to encourage school sites and school districts to adopt and achieve measurable performance objectives.

Subd. 2. [ELIGIBILITY.] An applicant for a grant must be a school site decision-making team established under Minnesota Statutes, section 123.951, that has set measurable, objective performance goals related to students' abilities to meet the state's high school graduation standards. A site's performance goal may be to increase test scores, increase the high school graduation rate, reduce truancy, or increase parental involvement, among other things.

Subd. 3. [APPLICATION PROCESS.] To obtain a grant to achieve a measurable performance objective, a site must submit an application to the commissioner of children, families, and learning in the form and manner the commissioner prescribes. The application must describe the applicant's performance goal, what form of assessment the applicant will use to demonstrate improvement in student performance, including a baseline measure for student performance for fiscal year 1997, established during the 1996-1997 academic year, and how the form of assessment corresponds with graduation rule requirements and local efforts to improve instruction and curriculum. An applicant should expect that its aggregate assessment data in fiscal years 1998 and 1999 will show improvement in the level of student performance over fiscal year 1997 as measured by the change in the median assessment results. The commissioner may require additional information from an applicant.

Subd. 4. [REVIEWING APPLICATIONS.] When reviewing applications, the commissioner shall determine whether an applicant has met all the requirements in subdivisions 2 and 3.

Subd. 5. [GRANT AWARDS.] The commissioner may award grants of up to $50,000 per grant. Grant recipients must be located throughout the state and have diverse demographic characteristics. The amount of the grant shall be based on the number of students at the site, the assessment measure the applicant proposes to use, and the nature of the applicant's performance goal. Grant recipients must use the grant proceeds to accomplish the purposes of this section.

Subd. 6. [EVALUATION.] The commissioner shall evaluate the grant sites and selected control sites to determine the impact of measurable performance goals on the school site, the student body, student behavior, the classroom, the school faculty, and on student achievement, including students' ability to meet the state's high school graduation standards. The evaluation must also address the financial impact of the program on the district and the school site. Upon assessing student performance, grant recipients must cooperate with the commissioner in evaluating their performance objectives. The commissioner shall prepare for the education committees of the legislature a report by February 1, 2000, on the effectiveness and impact of performance objectives on student performance.

Sec. 18. [APPROPRIATIONS.]

Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums indicated in this section are appropriated from the general fund to the commissioner of children, families, and learning for the fiscal years designated.

Subd. 2. [KINDERGARTEN.] For full day kindergarten programs or half day programs for four-year olds.

$3,150,000. . . . .1997

Subd. 3. [SCHOOL SITE MANAGEMENT.] For grants for achieving measurable performance objectives.

$1,100,000. . . . .1997

Grant recipients may expend grant proceeds over a two-year period. Of this amount, up to $50,000 is for evaluation under section 16.

Of this amount, $100,000 is for a grant to independent school district No. 625, St. Paul, to assist in the implementation of the district accountability plan. The district must evaluate student achievement data by building and measure the results annually. The district must also establish criteria and modifications that may be used if buildings are not meeting the goals of the student improvement plan developed by the buildings.

Sec. 19. [EFFECTIVE DATE.]

(a) Section 4 is effective the day following final enactment. All school sites with existing school site decision-making agreements must modify their agreements to allocate liability for school site decision-making team actions under Minnesota Statutes, section 123.951, paragraph (g), as a condition of receiving reserved revenue for the 1997-1998 school year under Minnesota Statutes, section 124A.223.

(b) Section 16 is effective July 1, 1997, for school year 1997-1998 and thereafter.

(c) Sections 7 and 12 are effective the day following final enactment for revenue for 1996-1997 and later school years. For school year 1996-1997, the commissioner of the department of children, families, and learning shall rank qualifying school districts under Minnesota Statutes, section 124.2613, subdivision 3, as soon as is reasonably possible following enactment.

Section 1. Minnesota Statutes 1994, section 123.932, subdivision 1b, is amended to read:

Subd. 1b. "Textbook" means any book or book substitute which a pupil uses as a text or text substitute in a particular class or program in the school regularly attended and a copy of which is expected to be available for the individual use of each pupil in this class or program, which book or book substitute or text or text substitute shall be limited to books, workbooks, or manuals, whether bound or in loose-leaf form, intended for use as a principal source of study material for a given class or a group of students. The term includes only such secular, neutral and nonideological textbooks as are available and are, used by, or of benefit to Minnesota public school pupils.

Sec. 2. Minnesota Statutes 1994, section 123.932, subdivision 1c, is amended to read:

Subd. 1c. "Standardized tests" means standardized tests and scoring services which are provided by commercial publishing organizations or the state and which are in use in the public schools of Minnesota to measure the progress of pupils in secular subjects.

Sec. 3. Minnesota Statutes 1994, section 123.932, subdivision 1e, is amended to read:

Subd. 1e. "Individualized instructional or cooperative learning materials" means educational materials which:

(a) are designed primarily for individual pupil use or use by pupils in a cooperative learning group in a particular class or program in the school the pupil regularly attends;

(b) are secular, neutral, nonideological and not capable of diversion for religious use; and

(c) are available and are, used by, or of benefit to Minnesota public school pupils.

Subject to the requirements in clauses (a), (b), and (c), "individualized instructional or cooperative learning materials" include, but are not limited to, the following if they do not fall within the definition of "textbook" in subdivision 1b: published materials; periodicals; documents; pamphlets; photographs; reproductions; pictorial or graphic works; film strips; prepared slides; prerecorded video programs; prerecorded tapes, cassettes and other sound recordings; manipulative materials; desk charts; games; study prints and pictures; desk maps; models; learning kits; blocks or cubes; flash cards; individualized multimedia systems; prepared instructional computer software programs; and prerecorded film cartridges choral and band sheet music; and CD Rom.

"Individualized instructional or cooperative learning materials" do not include the following: chemicals; wall maps; wall charts; pencils, pens or crayons; notebooks; blackboards; chalk and erasers; duplicating fluids; paper; 16 mm films; unexposed films; blank tapes, cassettes or videotape; and instructional equipment, instructional hardware, or ordinary daily consumable classroom supplies.

Sec. 4. Minnesota Statutes 1994, section 123.932, subdivision 11, is amended to read:

Subd. 11. "Health services" means physician, dental, nursing or optometric services provided to pupils and health supplies brought to the site by the health professional for pupil usage in the field of physical or mental health; provided the term does not include direct educational instruction, services which are required pursuant to sections 120.17 and 120.1701, or services which are eligible to receive special education aid pursuant to section 124.32.

Sec. 5. Minnesota Statutes 1994, section 123.933, as amended by Laws 1995, First Special Session chapter 3, article 16, section 13, is amended to read:

123.933 [TEXTBOOKS, INDIVIDUAL INSTRUCTION OR COOPERATIVE LEARNING MATERIAL, STANDARD TESTS.]

Subdivision 1. [PROVISION.] The state board of education shall promulgate rules under the provisions of chapter 14 requiring that in each school year, based upon formal requests by or on behalf of nonpublic school pupils in a nonpublic school, the local districts or intermediary service areas shall purchase or otherwise acquire textbooks, individualized instructional or cooperative learning materials, and standardized tests and loan or provide them for use by children enrolled in that nonpublic school. These textbooks, individualized instructional or cooperative learning materials, and standardized tests shall be loaned or provided free to the children for the school year for which requested. The loan or provision of the textbooks, individualized instructional or cooperative learning materials, and standardized tests shall be subject to rules prescribed by the state board of education.

Subd. 2. [TITLE.] The title to textbooks, individualized instructional or cooperative learning materials, and standardized testing materials shall remain in the servicing school district or intermediary service area, and possession or custody may be granted or charged to administrators of the nonpublic school attended by the nonpublic school pupil or pupils to whom the textbooks, individualized instructional or cooperative learning materials, or standardized tests are loaned or provided.

Subd. 3. [COST OF TEXTBOOKS; LIMITATION.] (a) The cost per pupil of the textbooks, individualized instructional or cooperative learning materials, and standardized tests provided for in this section for each school year shall not exceed the statewide average expenditure per pupil, adjusted pursuant to clause (b), by the Minnesota public elementary and secondary schools for textbooks, individualized instructional materials and standardized tests as computed and established by the department of children, families, and learning by March 1 of the preceding school year from the most recent public school year data then available.

(b) The cost computed in clause (a) shall be increased by an inflation adjustment equal to the percent of increase in the formula allowance, pursuant to section 124A.22, subdivision 2, from the second preceding school year to the current school year.

(c) The commissioner shall allot to the school districts or intermediary service areas the total cost for each school year of providing or loaning the textbooks, individualized instructional or cooperative learning materials, and standardized tests for the pupils in each nonpublic school. The allotment shall not exceed the product of the statewide average expenditure per pupil, according to clause (a), adjusted pursuant to clause (b), multiplied by the number of nonpublic school pupils who make requests pursuant to this section and who are enrolled as of September 15 of the current school year.

Sec. 6. Minnesota Statutes 1994, section 123.935, subdivision 2, is amended to read:

Subd. 2. Health services may be provided to nonpublic school pupils pursuant to this section at a public school, a neutral site, the nonpublic school or any other suitable location. Guidance and counseling services may be provided to nonpublic school pupils pursuant to this section only at a public school or a neutral site. District or intermediary service area personnel and representatives of the nonpublic school pupils receiving pupil support services shall hold an annual consultation regarding the type of services, provider of services, and the location of the provision of these services. The district board or intermediary service area governing board shall make the final decision on the location of the provision of these services.

Sec. 7. Minnesota Statutes 1994, section 123.935, subdivision 7, is amended to read:

Subd. 7. [NONPUBLIC EDUCATION COUNCIL.] (a) The commissioner shall appoint a 15-member council on nonpublic education. The 15 members shall represent various areas of the state, represent various methods of providing nonpublic education, and shall be knowledgeable about nonpublic education. The compensation, removal

of members, filling of vacancies, and terms are governed by section 15.0575. The council shall not expire. The council shall advise the commissioner and the state board on issues affecting nonpublic school matters under this section education and nonpublic schools. The council may recognize educational accrediting agencies, for the sole purpose of sections 120.101, 120.102, and 120.103. When requested by the commissioner or the state board, the council may submit its advice about other nonpublic school matters.

(b) A parent or guardian of a nonpublic school pupil or a nonpublic school may file a complaint about services provided under sections 123.931 to 123.937 with the nonpublic education council. The council may review the complaint and make a recommendation for resolution to the commissioner.

Sec. 8. Minnesota Statutes 1994, section 124.916, subdivision 4, is amended to read:

Subd. 4. [MINNEAPOLIS HEALTH INSURANCE SUBSIDY.] Each year special school district No. 1, Minneapolis, may make an additional levy not to exceed the amount raised by a net tax rate of .10 percent times the adjusted net tax capacity for taxes payable in 1991 and thereafter of the property in the district for the preceding year. The proceeds may be used only to subsidize health insurance costs for eligible teachers as provided in this section.

"Eligible teacher" means a retired teacher who was a basic member of the Minneapolis teachers retirement fund association, who retired before May 1, 1974, or who had 20 or more years of basic member service in the Minneapolis teacher retirement fund association and retired before June 30, 1983, and who is not eligible to receive the hospital insurance benefits of the federal Medicare program of the Social Security Act without payment of a monthly premium. The district shall notify eligible teachers that a subsidy is available. To obtain a subsidy, an eligible teacher must submit to the school district a copy of receipts for health insurance premiums paid. The school district shall disburse the health insurance premium subsidy to each eligible teacher according to a schedule determined by the district, but at least annually. An eligible teacher may receive a subsidy up to an amount equal to the lesser of 90 percent of the cost of the eligible teacher's health insurance or up to 90 percent of the cost of the number two qualified plan of health coverage for individual policies made available by the Minnesota comprehensive health association under chapter 62E.

If funds remaining from the previous year's health insurance subsidy levy, minus the previous year's required subsidy amount, are sufficient to pay the estimated current year subsidy, the levy must be discontinued until the remaining funds are estimated by the school board to be insufficient to pay the subsidy.

This subdivision does not extend benefits to teachers who retire after June 30, 1983, and does not create a contractual right or claim for altering the benefits in this subdivision. This subdivision does not restrict the school district's right to modify or terminate coverage under this subdivision.

Sec. 9. [124C.75] [SCHOOL SITE FOUNDATIONS.]

Subdivision 1. [FORMATION.] An individual or an organization may form a foundation or a nonprofit corporation to provide additional financial support to a school site or a school district. The purpose of the program is to enhance overall community support for schools.

Subd. 2. [AGREEMENT TO SUPPORT.] A school site or a school district may enter into an agreement with a foundation or a nonprofit corporation to provide support for a school program.

Subd. 3. [REVENUE DISBURSEMENT.] The revenue a school site or school district receives from a school foundation or a nonprofit corporation under this section may be used for any operational or equipment purchase specified in the agreement.

Sec. 10. [124C.77] [ENDOWED CHAIR.]

Subdivision 1. [PURPOSE.] The purpose of the endowed chair program is to increase curriculum offerings and learning experiences available to students.

Subd. 2. [ELIGIBILITY.] A school site, represented by the school site council or, if no site council exists, the principal or lead teacher, and the party interested in endowing a chair may enter into an agreement for an endowed chair for no longer than one year in length. The party endowing the chair and the school site may, at their discretion, renew annually.

Subd. 3. [PROGRAM.] An endowed chair program may be for a semester, a summer session, or a full school year. Curriculum developed or provided under the endowed chair program must supplement the existing curriculum offerings available at the school in the particular subject chosen.

Subd. 4. [AGREEMENT.] The agreement must make available funds sufficient for the salary and benefit costs of the instructor, and necessary supplies for the course. The participating site must provide the classroom space and administer the program. The parties, in consultation with the school district and the exclusive representative of the teachers, jointly select the instructor for the endowed chair.

Sec. 11. Laws 1995, First Special Session chapter 3, article 8, section 25, subdivision 2, is amended to read:

Subd. 2. [ABATEMENT AID.] For abatement aid according to Minnesota Statutes, section 124.214:

$24,241,000 $22,251,600. . . . .1996

$ 7,905,000 $ 9,543,400. . . . .1997

The 1996 appropriation includes $1,135,000 for 1995 and $23,106,000 $21,116,600 for 1996.

The 1997 appropriation includes $4,077,000 $3,726,400 for 1996 and $3,828,000 $5,817,000 for 1997.

Sec. 12. Laws 1995, First Special Session chapter 3, article 8, section 27, is amended to read:

Sec. 27. [EFFECTIVE DATES.]

Sections 18, 20, and 21 are effective the day following final enactment.

Section 13 is effective July 1, 1997, if the governing body of the city of Saint Paul and the governing body of independent school district No. 625 have approved it and complied with Minnesota Statutes, section 645.021, subdivision 3, before January 1 31, 1996. Section 14 does not abrogate language that references city of St. Paul civil service rules in bargaining unit agreements in existence on March 31, 1995.

Sec. 13. [SPECIAL LEVY; HENNING.]

For taxes payable in 1997, in addition to other levies, independent school district No. 545, Henning, may levy for up to $20,000 for the unreimbursed cost of an adult farm management program.

Sec. 14. [FUND TRANSFERS.]

Subdivision 1. [AITKIN.] Notwithstanding Minnesota Statutes, sections 121.912 and 121.9121, on June 30, 1996, independent school district No. 0001, Aitkin, may permanently transfer the balance in its debt redemption fund to its building construction fund without making a levy reduction.

Subd. 2. [CHISAGO LAKES.] Notwithstanding Minnesota Statutes, sections 121.911, subdivision 4, 121.912, and 121.9121, on June 30, 1996, independent school district No. 2144, Chisago Lakes, may permanently transfer up to $250,000 from the debt redemption fund to the capital expenditure fund for facility and technology improvements.

Subd. 3. [NEVIS.] Notwithstanding Minnesota Statutes, sections 121.912 and 121.9121, on June 30, 1996, independent school district No. 308, Nevis, may permanently transfer up to $100,000 from the bus purchase account in its transportation fund to its capital expenditure fund without making a levy reduction.

Subd. 4. [WHITE BEAR LAKE.] Notwithstanding Minnesota Statutes, sections 121.912, 121.9121, and 123.36, subdivision 13, independent school district No. 624, White Bear Lake, may deposit the proceeds from a sale of properties known as the Beach school site or the Gall district center site into the building construction fund of the district without making a levy reduction.

Subd. 5. [LYLE.] Notwithstanding Minnesota Statutes, sections 121.912, 121.9121, and 475.61, subdivision 4, on June 30, 1996, independent school district No. 497, Lyle, may permanently transfer the balance in its early childhood family education account to its capital expenditure fund for expanding the district's technology services.

Sec. 15. [ATTORNEY GENERAL.]

Subdivision 1. [BROCHURE.] The attorney general may, in consultation with the Minnesota school boards association, prepare a brochure explaining the process that an individual or a group must follow to establish a school site foundation or a nonprofit corporation designed to benefit a school site under section 9. The brochure may also contain information regarding the oversight procedures that a school district or a school site council should implement for monitoring the activity of a school site foundation or nonprofit corporation.

Subd. 2. [LEGAL ADVICE.] The attorney general shall not provide legal advice to an individual or group desiring to establish a school site foundation or nonprofit corporation designed to assist a school site.

Sec. 16. [APPROPRIATION.]

Subdivision 1. [DEPARTMENT OF EDUCATION.] The sum indicated in this section is appropriated from the general fund to the commissioner of children, families, and learning for the fiscal year designated.

Subd. 2. [MONTEVIDEO GRANT.] For a grant to independent school district No. 129, Montevideo, for the unreimbursed costs of an adult farm management program:

$100,000. . . . . 1996

Sec. 17. [EFFECTIVE DATE.]

Sections 9, 10, and 15 are effective July 1, 1996. Sections 11, 14, and 16 are effective the day following final enactment.

Section 1. Minnesota Statutes 1994, section 120.101, is amended by adding a subdivision to read:

Subd. 5d. [INSTRUCTIONAL DAYS.] Every child required to receive instruction according to subdivision 5 shall receive instruction for at least 170 days.

Sec. 2. Minnesota Statutes 1995 Supplement, section 120.1045, is amended to read:

120.1045 [BACKGROUND CHECK.]

Subdivision 1. [BACKGROUND CHECK REQUIRED.] A school hiring authority, as defined in subdivision 3a, shall request a criminal history background check from the superintendent of the bureau of criminal apprehension on all individuals who are offered employment in the school, as defined in subdivision 3a. In order to be eligible for employment, an individual who is offered employment must provide an executed criminal history consent form and a money order or cashier's check payable to the bureau of criminal apprehension for the fee for conducting the criminal history background check. A school may charge a person offered employment an additional fee of up to $2 to cover the school's costs under this section. The superintendent shall perform the background check by retrieving criminal history data maintained in the criminal justice information system computers.

Subd. 2. [CONDITIONAL HIRING; DISCHARGE.] A school hiring authority may hire an individual pending completion of a background check under subdivision 1 but shall notify the individual that the individual's employment may be terminated based on the result of the background check. A school hiring authority is not liable for failing to hire or for terminating an individual's employment based on the result of a background check under this section.

Subd. 3. [EXEMPTION.] The requirements of this section do not apply to hiring authorities of home schools.

Subd. 3a. [DEFINITION.] For purposes of this section:

(a) "School" means a school as defined in section 120.101, subdivision 4, except a home-school, and includes a school receiving tribal contract or grant school aid under section 124.86.

(b) "School hiring authority" means the school principal or other person having general control and supervision of the school.

Sec. 3. Minnesota Statutes 1995 Supplement, section 123.3514, subdivision 6, is amended to read:

Subd. 6. [FINANCIAL ARRANGEMENTS.] For a pupil enrolled in a course under this section, the department of children, families, and learning shall make payments according to this subdivision for courses that were taken for secondary credit.

The department shall not make payments to a school district or post-secondary institution for a course taken for post-secondary credit only. The department shall not make payments to a post-secondary institution for a course from which a student officially withdraws during the first 14 days of the quarter or semester or who has been absent from the post-secondary institution for the first 15 consecutive school days of the quarter or semester and is not receiving instruction in the home or hospital.

A post-secondary institution shall receive the following:

(1) for an institution granting quarter credit, the reimbursement per credit hour shall be an amount equal to 88 percent of the product of the formula allowance, multiplied by 1.3, and divided by 45; or

(2) for an institution granting semester credit, the reimbursement per credit hour shall be an amount equal to 88 percent of the product of the general revenue formula allowance, multiplied by 1.3, and divided by 30.

The department of children, families, and learning shall pay to each post-secondary institution 100 percent of the amount in clause (1) or (2) within 30 days of receiving initial enrollment information each quarter or semester. If changes in enrollment occur during a quarter or semester, the change shall be reported by the post-secondary institution at the time the enrollment information for the succeeding quarter or semester is submitted. At any time the department of children, families, and learning notifies a post-secondary institution that an overpayment has been made, the institution shall promptly remit the amount due.

Sec. 4. Minnesota Statutes 1995 Supplement, section 123.3514, subdivision 6b, is amended to read:

Subd. 6b. [FINANCIAL ARRANGEMENTS, PUPILS AGE 21 OR OVER.] For a pupil enrolled in a course according to this section, the department of children, families, and learning shall make payments according to this subdivision for courses taken to fulfill high school graduation requirements by pupils eligible for adult high school graduation aid.

The department must not make payments to a school district or post-secondary institution for a course taken for post-secondary credit only. The department shall not make payments to a post-secondary institution for a course from which a student officially withdraws during the first 14 days of the quarter or semester or who has been absent from the post-secondary institution for the first 15 consecutive school days of the quarter or semester and is not receiving instruction in the home or hospital.

A post-secondary institution shall receive the following:

(1) for an institution granting quarter credit, the reimbursement per credit hour shall be an amount equal to 88 percent of the product of the formula allowance, multiplied by 1.3, and divided by 45; or

(2) for an institution granting semester credit, the reimbursement per credit hour shall be an amount equal to 88 percent of the product of the general revenue formula allowance multiplied by 1.3, and divided by 30.

The department of children, families, and learning shall pay to each post-secondary institution 100 percent of the amount in clause (1) or (2) within 30 days of receiving initial enrollment information each quarter or semester. If changes in enrollment occur during a quarter or semester, the change shall be reported by the post-secondary institution at the time the enrollment information for the succeeding quarter or semester is submitted. At any time the department of children, families, and learning notifies a post-secondary institution that an overpayment has been made, the institution shall promptly remit the amount due.

A school district shall receive:

(1) for a pupil who is not enrolled in classes at a secondary program, 12 percent of the general education formula allowance times .65, times 1.3; or

(2) for a pupil who attends classes at a secondary program part time, the general education formula allowance times .65, times 1.3, times the ratio of the total number of hours the pupil is in membership for courses taken by the pupil for credit to 1020 hours.

Sec. 5. Minnesota Statutes 1994, section 124.19, subdivision 1, is amended to read:

Subdivision 1. [INSTRUCTIONAL TIME.] Every district shall maintain school in session or provide instruction in other districts for at least 175 days through the 1995-1996 each school year and the number of days required in subdivision 1b thereafter, not including summer school, or the equivalent in a district operating a flexible school year program. A district that holds school for the required minimum number of days and is otherwise qualified is entitled to state aid as provided by law. If school is not held for the required minimum number of days, state aid shall be reduced by the ratio that the difference between the required number of days and the number of days school is held bears to the required number of days, multiplied by 60 percent of the basic revenue, as defined in section 124A.22, subdivision 2, of the district for that year. However, districts maintaining school for fewer than the required minimum number of days do not lose state aid (1) if the circumstances causing loss of school days below the required minimum number of days are beyond the control of the board, (2) if proper evidence is submitted, and (3) if a good faith attempt is made to make up time lost due to these circumstances. The loss of school days resulting from a lawful employee strike shall not be considered a circumstance beyond the control of the board. Days devoted to meetings authorized or called by the commissioner may not be included as part of the required minimum number of days of school. For grades 1 to 12, days devoted to parent-teacher conferences, teachers' workshops, or other staff development opportunities as part of the required minimum number of days must not exceed five days through the 1995-1996 each school year and for subsequent school years the difference between the number of days required in subdivision 1b and the number of instructional days required in subdivision 5b. For kindergarten, days devoted to parent-teacher conferences, teachers' workshops, or other staff development opportunities as part of the required minimum number of days must not exceed twice the number of days for grades 1 to 12.

Sec. 6. Minnesota Statutes 1994, section 125.05, subdivision 1a, is amended to read:

Subd. 1a. [TEACHER AND SUPPORT PERSONNEL QUALIFICATIONS.] (a) The board of teaching shall issue licenses under its jurisdiction to persons the board finds to be qualified and competent for their respective positions.

(b) The board shall require a person to successfully complete an examination of skills in reading, writing, and mathematics before being granted an initial teaching license to provide direct instruction to pupils in prekindergarten, elementary, secondary, or special education programs. The board shall require colleges and universities offering a board approved teacher preparation program to provide remedial assistance that includes a formal diagnostic component to persons enrolled in their institution who did not achieve a qualifying score on the skills examination, including those for whom English is a second language. The colleges and universities must provide assistance in the specific academic areas of deficiency in which the person did not achieve a qualifying score. School districts must provide similar, appropriate, and timely remedial assistance that includes a formal diagnostic component and mentoring to those persons employed by the district who completed their teacher education program outside the state of Minnesota, received a one-year license to teach in Minnesota and did not achieve a qualifying score on the skills examination, including those persons for whom English is a second language.

(c) A person who has completed an approved teacher preparation program and obtained a one-year license to teach, but has not successfully completed the skills examination, may renew the one-year license for two additional one-year periods. Each renewal of the one-year license is contingent upon the licensee:

(1) providing evidence of participating in an approved remedial assistance program provided by a school district or post-secondary institution that includes a formal diagnostic component in the specific areas in which the licensee did not obtain qualifying scores; and

(2) attempting to successfully complete the skills examination during the period of each one-year license.

(d) The board of teaching shall grant continuing licenses only to those persons who have met board criteria for granting a continuing license, which includes successfully completing the skills examination in reading, writing, and mathematics, or demonstrate skill proficiency under paragraph (e).

(e) If a person has renewed a one-year provisional license under paragraph (c), clauses (1) and (2), and then attempts but fails to achieve qualifying scores on the required skills examination, the person may seek from the employing school district an alternative process for demonstrating skill proficiency in reading, writing, and mathematics. If the employing school district verifies that the person possesses and has demonstrated the required proficiency in the skills of reading, writing, and mathematics under this section, the board shall waive the examination.

(f) If a person completes an approved teacher preparation program, does not achieve qualifying scores on the required skills examinations after three attempts, and completes the assistance program required under paragraph (b), the person may seek from the institution recommending the candidate for teacher licensure an alternative process for demonstrating skill proficiency in reading, writing, and mathematics. If the recommending institution verifies that the candidate possesses and has demonstrated the required proficiency in the skills of reading, writing, and mathematics under this section, the board shall waive the examination.

Sec. 7. Minnesota Statutes 1994, section 125.05, is amended by adding a subdivision to read:

Subd. 9. [TEACHER LICENSES.] The board of teaching may issue teacher licenses under the licensure rules in place on July 31, 1996.

Sec. 8. [125.192] [TEACHER LICENSURE.]

Teachers licensed in the education of blind and visually impaired students must demonstrate competence in reading and writing Braille. The board of teaching, at such time as a valid and reliable test is available, shall adopt a rule to assess these competencies that is consistent with the standards of the National Library Services for the Blind and Physically Handicapped.

Sec. 9. Minnesota Statutes 1995 Supplement, section 126.70, subdivision 1, is amended to read:

Subdivision 1. [STAFF DEVELOPMENT COMMITTEE.] A school board shall use the revenue authorized in section 124A.29 for in-service education for programs under section 126.77, subdivision 2, or for staff development plans under this section. The board must establish a staff development committee to develop the plan, assist site decision-making teams in developing a site plan consistent with the goals of the plan, and evaluate staff development efforts at the site level. A majority of the advisory committee must be teachers representing various grade levels, subject areas, and special education. The advisory committee must also include nonteaching staff, parents, and administrators. Districts shall report staff development results and expenditures to the commissioner in the form and manner determined by the commissioner. The expenditure report shall include expenditures by the school board for district level activities and expenditures made by the staff. The report shall provide a breakdown of expenditures for (1) curriculum development and programs, (2) inservice education, workshops, and conferences, and (3) the cost of teachers or substitute teachers for staff development purposes. Within each of these categories, the report shall also indicate whether the expenditures were incurred at the district level or the school site level, and whether the school site expenditures were made possible by the grants to school sites that demonstrate exemplary use of allocated staff development revenue. These expenditures are to be reported using the UFARS system. The commissioner shall report the staff development expenditure data to the education committees of the legislature by February 15 each year.

Sec. 10. Laws 1993, chapter 224, article 12, section 32, as amended by Laws 1993, chapter 374, section 22, as amended by Laws 1995, First Special Session chapter 3, article 11, section 20, is amended to read:

Sec. 32. [REPEALER.]

(a) Minnesota Statutes 1992, sections 120.095; 120.101, subdivision 5a; 120.75, subdivision 2; 120.80, subdivision 2; 121.11, subdivisions 6 and 13; 121.165; 121.19; 121.49; 121.883; 121.90; 121.901; 121.902; 121.904, subdivisions 5, 6, 8, 9, 10, 11a, and 11c; 121.908, subdivision 4; 121.9121, subdivisions 3 and 5; 121.931, subdivisions 6, 6a, 7, and 8; 121.934; 121.936, subdivisions 1, 2, and 3; 121.937; 121.94; 121.941; 121.942; 121.943; 123.33, subdivisions 10, 14, 15, and 16; 123.35, subdivision 14; 123.352; 123.36, subdivisions 2, 3, 4, 4a, 6, 8, 9, and 12; 123.40, subdivisions 4 and 6; 123.61; 123.67; 123.709; 123.744; 124.615; 124.62; 124.64; 124.645; 124.67; 124.68; 124.69; 124.79; 125.12, subdivisions 3a and 4a; 125.17, subdivisions 2a and 3a; 126.09; 126.111; 126.112; 126.20, subdivision 4; 126.24; and 126.268, are repealed.

(b) Minnesota Statutes 1992, section 121.11, subdivision 15, is repealed.

(c) Minnesota Statutes 1992, sections 120.101, subdivision 5b; 121.11, subdivision 16; 121.585, subdivision 3; 124.19, subdivisions 1, subdivision 1b, 6, and 7; 126.02; 126.025; 126.031; 126.06; 126.08; 126.12, subdivision 2; 126.662; 126.663; 126.664; 126.665; 126.666; 126.67; 126.68; 126A.04; 126A.05; 126A.07; 126A.08; 126A.09; 126A.10; 126A.11; and 126A.12, are repealed.

Sec. 11. Laws 1993, chapter 224, article 12, section 39, as amended by Laws 1994, chapter 647, article 12, section 35, and article 8, section 32, and Laws 1995, First Special Session chapter 3, article 8, section 15, is amended to read:

Sec. 39. [REPEALER.]

(a) Minnesota Rules, parts 3500.0500; 3500.0600, subparts 1 and 2; 3500.0605; 3500.0800; 3500.1090; 3500.1800; 3500.2950; 3500.3100, subparts 1 to 3; 3500.3500; 3500.3600; 3500.4400; 3510.2200; 3510.2300; 3510.2400; 3510.2500; 3510.2600; 3510.6200; 3520.0200; 3520.0300; 3520.0600; 3520.1000; 3520.1200; 3520.1300; 3520.1800; 3520.2700; 3520.3802; 3520.3900; 3520.4500; 3520.4620; 3520.4630; 3520.4640; 3520.4680; 3520.4750; 3520.4761; 3520.4811; 3520.4831; 3520.4910; 3520.5330; 3520.5340; 3520.5370; 3520.5461; 3525.2850; 3530.0300; 3530.0600; 3530.0700; 3530.0800; 3530.1100; 3530.1300; 3530.1400; 3530.1600; 3530.1700; 3530.1800; 3530.1900; 3530.2000; 3530.2100; 3530.2800; 3530.2900; 3530.3100, subparts 2 to 4; 3530.3200, subparts 1 to 5; 3530.3400, subparts 1, 2, and 4 to 7; 3530.3500; 3530.3600; 3530.3900; 3530.4000; 3530.4100; 3530.5500; 3530.5700; 3530.6100; 3535.0800; 3535.1000; 3535.1400; 3535.1600; 3535.1800; 3535.1900; 3535.2100; 3535.2200; 3535.2600; 3535.2900; 3535.3100; 3535.3500; 3535.9930; 3535.9940; 3535.9950; 3540.0600; 3540.0700; 3540.0800; 3540.0900; 3540.1000; 3540.1100; 3540.1200; 3540.1300; 3540.1700; 3540.1800; 3540.1900; 3540.2000; 3540.2100; 3540.2200; 3540.2300; 3540.2400; 3540.2800; 3540.2900; 3540.3000; 3540.3100; 3540.3200; 3540.3300; 3540.3400; 3545.1000; 3545.1100; 3545.1200; 3545.2300; 3545.2700; 3545.3000; 3545.3002; 3545.3004; 3545.3005; 3545.3014; 3545.3022; 3545.3024; 8700.4200; 8700.6410; 8700.6800; 8700.7100; 8700.9000; 8700.9010; 8700.9020; and 8700.9030, are repealed.

(b) Minnesota Rules, parts 3520.1600; 3520.2400; 3520.2500; 3520.2600; 3520.2800; 3520.2900; 3520.3000; 3520.3100; 3520.3200; 3520.3400; 3520.3500; 3520.3680; 3520.3701; 3520.3801; 3520.4001; 3520.4100; 3520.4201; 3520.4301; 3520.4400; 3520.4510; 3520.4531; 3520.4540; 3520.4550; 3520.4560; 3520.4570; 3520.4600; 3520.4610; 3520.4650; 3520.4670; 3520.4701; 3520.4711; 3520.4720; 3520.4731; 3520.4741; 3520.4801; 3520.4840; 3520.4850; 3520.4900; 3520.4930; 3520.4980; 3520.5000; 3520.5010; 3520.5111; 3520.5120; 3520.5141; 3520.5151; 3520.5160; 3520.5171; 3520.5180; 3520.5190; 3520.5200; 3520.5220; 3520.5230; 3520.5300; 3520.5310; 3520.5361; 3520.5380; 3520.5401; 3520.5450; 3520.5471; 3520.5481; 3520.5490; 3520.5500; 3520.5510; 3520.5520; 3520.5531; 3520.5551; 3520.5560; 3520.5570; 3520.5580; 3520.5600; 3520.5611; 3520.5700; 3520.5710; 3520.5900; 3520.5910; 3520.5920; 3530.6500; 3530.6600; 3530.6700; 3530.6800; 3530.6900; 3530.7000; 3530.7100; 3530.7200; 3530.7300; 3530.7400; 3530.7500; 3530.7600; 3530.7700; and 3530.7800, are repealed.

(c) Minnesota Rules, parts 3500.1400; 3500.3700; 3510.0300; 3510.8100; 3510.8200; 3510.8300; 3510.8400; chapters 3515, 3517.3150; 3517.3170; 3517.3420; 3517.3450; 3517.3500; 3517.3650; 3517.8500; 3517.8600, and 3560, are repealed.

(d) Minnesota Rules, parts 3500.0710; 3500.1060; 3500.1075; 3500.1100; 3500.1150; 3500.1200, subpart 2; 3500.1500, subpart 2; 3500.1600; 3500.1900; 3500.2000; 3500.2020; 3500.2100; 3500.2900; 3500.5010; 3500.5020; 3500.5030; 3500.5040; 3500.5050; 3500.5060; 3500.5070; 3505.2700; 3505.2800; 3505.2900; 3505.3000; 3505.3100; 3505.3200; 3505.3300; 3505.3400; 3505.3500; 3505.3600; 3505.3700; 3505.3800; 3505.3900; 3505.4000; 3505.4100; 3505.4200; 3505.4400; 3505.4500; 3505.4600; 3505.4700; 3505.5100; 8700.2900; 8700.3000; 8700.3110; 8700.3120; 8700.3200; 8700.3300; 8700.3400; 8700.3500; 8700.3510; 8700.3600; 8700.3700; 8700.3810; 8700.3900; 8700.4000; 8700.4100; 8700.4300; 8700.4400; 8700.4500; 8700.4600; 8700.4710; 8700.4800; 8700.4901; 8700.4902; 8700.5100; 8700.5200; 8700.5300; 8700.5310; 8700.5311; 8700.5500; 8700.5501; 8700.5502; 8700.5503; 8700.5504; 8700.5505; 8700.5506; 8700.5507; 8700.5508; 8700.5509; 8700.5510; 8700.5511; 8700.5512; 8700.5800; 8700.6310; 8700.6900; 8700.7010; 8700.7700; 8700.7710; 8700.8000; 8700.8010; 8700.8020; 8700.8030; 8700.8040; 8700.8050; 8700.8060; 8700.8070; 8700.8080; 8700.8090; 8700.8110; 8700.8120; 8700.8130; 8700.8140; 8700.8150; 8700.8160; 8700.8170; 8700.8180; 8700.8190; 8750.0200; 8750.0220; 8750.0240; 8750.0260; 8750.0300; 8750.0320; 8750.0330; 8750.0350; 8750.0370; 8750.0390; 8750.0410; 8750.0430; 8750.0460; 8750.0500; 8750.0520; 8750.0600; 8750.0620; 8750.0700; 8750.0720; 8750.0740; 8750.0760; 8750.0780; 8750.0800; 8750.0820; 8750.0840; 8750.0860; 8750.0880; 8750.0890; 8750.0900; 8750.0920; 8750.1000; 8750.1100; 8750.1120; 8750.1200; 8750.1220; 8750.1240; 8750.1260; 8750.1280; 8750.1300; 8750.1320; 8750.1340; 8750.1360; 8750.1380; 8750.1400; 8750.1420; 8750.1440; 8750.1500; 8750.1520; 8750.1540; 8750.1560; 8750.1580; 8750.1600; 8750.1700; 8750.1800; 8750.1820; 8750.1840; 8750.1860; 8750.1880; 8750.1900; 8750.1920; 8750.1930; 8750.1940; 8750.1960; 8750.1980; 8750.2000; 8750.2020; 8750.2040; 8750.2060; 8750.2080; 8750.2100; 8750.2120; 8750.2140; 8750.4000; 8750.4100; and 8750.4200; 8750.9000; 8750.9100; 8750.9200; 8750.9300; 8750.9400; 8750.9500; 8750.9600; and 8750.9700, are repealed.

(e) Minnesota Rules, parts 3510.0100; 3510.0200; 3510.0400; 3510.0500; 3510.0600; 3510.0800; 3510.1100; 3510.1200; 3510.1300; 3510.1400; 3510.1500; 3510.1600; 3510.2800; 3510.2900; 3510.3000; 3510.3200; 3510.3400; 3510.3500; 3510.3600; 3510.3700; 3510.3800; 3510.7200; 3510.7300; 3510.7400; 3510.7500; 3510.7600; 3510.7700; 3510.7900; 3510.8000; 3510.8500; 3510.8600; 3510.8700; 3510.9000; 3510.9100; 3517.0100; and 3517.0120, are repealed.

Sec. 12. Laws 1993, chapter 224, article 12, section 41, as amended by Laws 1995, First Special Session chapter 3, article 8, section 16, is amended to read:

Sec. 41. [EFFECTIVE DATE.]

Sections 22 to 25 are effective July 1, 1995.

Section 32, paragraph (b), is effective July 1, 1995. Section 32, paragraph (c), is effective August 1, 1996.

Section 39, paragraph (b), is effective August 1, 1994. Section 39, paragraph (c), is effective July 1, 1995. Section 39, paragraph (d), is effective August 1, 1996. Section 39, paragraph (e), is effective July 1 December 31, 1996.

Sec. 13. [PARENT EDUCATION INSTRUCTOR LICENSE.]

(a) Notwithstanding any law or rule to the contrary, persons who currently hold or have held a parent education instructor license issued by the board of technical colleges or the board of trustees of the Minnesota state colleges and universities prior to June 30, 1997, shall, upon application, be issued a family education/parent educator license granted by the Minnesota board of teaching upon evidence of having met the renewal requirements listed on the expiring license.

(b) Effective June 30, 1997, the board of trustees of the Minnesota state colleges and universities shall not issue parent education instructor licenses.

Sec. 14. [BOARD OF TEACHING GUIDELINES.]

The board of teaching shall endorse task force guidelines for school districts and teacher preparation institutions to use in determining eligibility requirements for teacher candidates and in developing procedures for an alternative process for candidates to demonstrate skill proficiency in reading, writing, and mathematics consistent with the requirements of Minnesota Statutes, section 125.05, subdivision 1a, paragraphs (e) and (f).

Sec. 15. [REVISOR INSTRUCTION.]

In the next and subsequent editions of Minnesota Statutes, the revisor shall change all cross-references to section 120.101, subdivision 5b, that appear in chapters 120 to 128D to section 120.101, subdivision 5d.

Sec. 16. [REPEALER.]

(a) Minnesota Statutes 1995 Supplement, section 120.1045, subdivision 3, is repealed the day following final enactment.

(b) Minnesota Rules, parts 8700.7700; 8700.7710; 8750.9000; 8750.9100; 8750.9200; 8750.9300; 8750.9400; 8750.9500; 8750.9600; and 8750.9700, are repealed August 1, 1997.

(c) Notwithstanding other law or rule, the state board of teaching must continue to make available until August 1, 2000, a parent educator's license for parent educators.

Sec. 17. [EFFECTIVE DATE.]

Sections 6 to 8, 11 to 14, and 16, paragraphs (b) and (c), are effective the day following final enactment.

Section 1. Minnesota Statutes 1994, section 134.34, is amended by adding a subdivision to read:

Subd. 7. [PROPOSED BUDGET.] In addition to the annual report required in section 134.13, a regional public system that receives a basic system support grant under this section must provide each participating county and city with its proposed budget for the next year.

Section 1. Laws 1995, First Special Session chapter 3, article 4, section 29, subdivision 5, is amended to read:

Subd. 5. [ALCOHOL-IMPAIRED DRIVER.] (a) For grants with funds received under Minnesota Statutes, section 171.29, subdivision 2, paragraph (b), clause (4):

$514,000. . . . .1996

$514,000 $702,000. . . . .1997

(b) These appropriations are from the alcohol-impaired driver account of the special revenue fund. Any funds credited for the department of education to the alcohol-impaired driver account of the special revenue fund in excess of the amounts appropriated in this subdivision are appropriated to the department of education and available in fiscal year 1996 and fiscal year 1997.

(c) Up to $226,000 $414,000 each year may be used by the department of education children, families, and learning to contract for services to school districts stressing the dangers of driving after consuming alcohol. No more than five percent of this amount may be used for administrative costs by the contract recipients.

(d) Up to $88,000 each year may be used for grants to support student-centered programs to discourage driving after consuming alcohol.

(e) Up to $200,000 and any additional funds each year may be used for chemical abuse prevention grants.

(f) The appropriation for 1997 in paragraphs (c) and (d) must be transmitted to the Minnesota highway safety center at St. Cloud state university. St. Cloud state university shall cooperate with the commissioner to assure appropriate coordination of alcohol use prevention programs. The university shall provide the commissioner an annual report on the results achieved with this revenue.

Sec. 2. Laws 1995, First Special Session chapter 3, article 11, section 21, subdivision 2, is amended to read:

Subd. 2. [DEPARTMENT.] For the department of education children, families, and learning:

$23,150,000 $24,850,000. . . . .1996

$21,803,000 $21,615,000. . . . .1997

(a) Any balance in the first year does not cancel but is available in the second year.

(b) $21,000 each year is from the trunk highway fund.

(c) $522,000 each year is for the academic excellence foundation.

Up to $50,000 each year is contingent upon the match of $1 in the previous year from private sources consisting of either direct monetary contributions or in-kind contributions of related goods or services, for each $1 of the appropriation. The commissioner of education children, families, and learning must certify receipt of the money or documentation for the private matching funds or in-kind contributions. The unencumbered balance from the amount actually appropriated from the contingent amount in 1996 does not cancel but is available in 1997. The amount carried forward must not be used to establish a larger annual base appropriation for later fiscal years.

(d) $204,000 each year is for the state board of education.

(e) $227,000 each year is for the board of teaching.

(f) $775,000 each year is for educational effectiveness programs according to Minnesota Statutes, sections 121.602 and 121.608.

(g) $60,000 each year is for contracting with the state fire marshal to provide the services required according to Minnesota Statutes, section 121.1502.

(h) $400,000 each year is for health and safety management assistance contracts under Minnesota Statutes, section 124.83.

(i) The expenditures of federal grants and aids as shown in the biennial budget document and its supplements are approved and appropriated and shall be spent as indicated.

(j) The commissioner shall maintain no more than five total complement in the categories of commissioner, deputy commissioner, assistant commissioner, assistant to the commissioner, and executive assistant.

The department of education children, families, and learning may establish full-time, part-time, or seasonal positions as necessary to carry out assigned responsibilities and missions. Actual employment levels are limited by the availability of state funds appropriated for salaries, benefits, and agency operations or funds available from other sources for such purposes.

(k) The department of education children, families, and learning shall develop a performance report on the quality of its programs and services. The report must be consistent with the process specified in Minnesota Statutes, sections 15.90 to 15.92. The goals, objectives, and measures of this report must be developed in cooperation with the chairs of the finance divisions of the education committees of the house of representatives and senate, the department of finance, and the office of legislative auditor. The report prepared in 1995 must include a complete set of goals, objectives, and measures for the department. The report presented in 1996 and subsequent years must include data to indicate the progress of the department in meeting its goals and objectives.

The department of education children, families, and learning must present a plan for a biennial report on the quality and performance of key education programs in Minnesota's public early childhood, elementary, middle, and secondary education programs. To the extent possible, the plan must be consistent with Minnesota Statutes, sections 15.90 to 15.92. The department must consult with the chairs of the finance divisions of the education committees of the house of representatives and senate, the department of finance, and the office of legislative auditor in developing this plan. The plan for this report must be presented in 1995 and the first biennial report presented in 1996.

(l) The commissioner of education children, families, and learning shall perform a facilities standards evaluation of public elementary and secondary facilities in the state. This evaluation shall include a measure of the following:

(1) the physical condition of education facilities;

(2) the level of utilization relative to the capacity of education facilities;

(3) the intensity of technological use in both administrative and instructional areas in education facilities;

(4) the alignment between education programs in place and the structure of education facilities; and

(5) an estimate of facility construction over the next decade.

This evaluation may be based on a sample of facilities but must include geographic breakdowns of the state.

The report shall indicate which construction and repair of district facilities is required to bring a district into compliance with fire safety codes, occupational safety and health requirements, and the Americans with Disabilities Act.

The commissioner shall recommend to the 1996 legislature standards for the review and comment process under Minnesota Statutes, section 121.15. The standards must integrate the use of technology, both current and potential, flexible scheduling, and program adjustments relative to implementation of the graduation rule.

(m) $120,000 is for a feasibility and design study to develop a statewide student performance accountability report. The department must identify and assess the current availability of critical data-based information about student performance and feasibility of using information from the existing sources, recommend additional data-based elements and data collection strategies that will provide for ongoing assessment of educational reform and improvement, and recommend methods for improving the coordination and dissemination of local accountability reports as part of a statewide reporting system. The study must include a statewide implementation and budget plan. The study process must involve other government units, school and citizen leaders, and members of higher education concerned with the education and development of children and youth. It must also consider ways to access the research and development capacity of institutions of higher education in Minnesota. The commissioner shall report the results of the study to the education committees of the legislature and the state board of education by February 1, 1996.

(n) $1,000,000 in fiscal year 1996 is for grants to special school district No. 1, Minneapolis, and independent school district No. 625, St. Paul, for after school enrichment pilot programs targeted towards junior high and middle school students. These programs shall be developed collaboratively with city government, park boards, family services collaboratives, and any other community organizations offering similar programming. Any balance remaining in the first year does not cancel but is available in the second year.

(o) $188,000 each year in 1996 and $0 in 1997 is appropriated from the special revenue fund for the graduation rule. The department appropriation is to be used to fund continued assessment and standards development and piloting; to broaden public understanding through communication; to continue development of learning benchmarks; for ongoing statewide assessment efforts; to develop system performance standards; and to provide technical assistance to schools throughout the state. The appropriation from the special revenue fund is to be used for appropriate development efforts in health-related standards and assessments. Any amount of this appropriation does not cancel and shall be carried forward to the following fiscal year. Notwithstanding any law to the contrary, the commissioner may contract for national expertise and related services in each of these development areas. Notwithstanding Minnesota Statutes, section 15.53, subdivision 2, the commissioner of education children, families, and learning may contract with a school district for a period no longer than five consecutive years for the services of an educator to work in the development, implementation, or both, of the graduation rule. The commissioner may contract for services and expertise as necessary for development and implementation of the graduation standards. Notwithstanding any law to the contrary, the contracts are not subject to the contract certification procedures of the commissioner of administration or of Minnesota Statutes, chapter 16B, and are not subject to or included in any spending limitations on contracts.

(p) $600,000 in 1996 and $350,000 in 1997 is for transition aid for information support.

(q) Up to $50,000 each year is for grants to school districts for mentorship cooperative ventures between school districts and post-secondary teacher preparation institutions for alternative licensure programs according to Minnesota Statutes, section 125.188.

(r) Up to $50,000 each year is for GED coordination.

Sec. 3. Laws 1995, First Special Session chapter 3, article 11, section 22, is amended to read:

Sec. 22. [APPROPRIATIONS; MINNESOTA CENTER FOR ARTS EDUCATION.]

The sums indicated in this section are appropriated from the general fund to the Minnesota center for arts education for the fiscal years designated:

$5,217,000 $5,330,000. . . . .1996

$5,217,000 $5,456,000. . . . .1997

Of the fiscal year 1996 appropriation, $154,000 is to fund artist and arts organization participation in the education residency and education technology projects, $75,000 is for school support for the residency project, and $121,000 is for further development of the partners: arts and school for students (PASS) program, including pilots. Of the fiscal year 1997 appropriation, $154,000 is to fund artist and arts organizations participation in the education residency project, $75,000 is for school support for the residency project, and $121,000 is to fund the PASS program, including additional pilots. The guidelines for the education residency project and the pass program shall be developed and defined by the Minnesota arts board. The Minnesota arts board shall participate in the review and allocation process. The center for arts education shall cooperate with the Minnesota arts board to fund these projects.

Any balance remaining in the first year does not cancel, but is available in the second year.

The Minnesota center for arts education may establish full-time, part-time, or seasonal positions as necessary to carry out assigned responsibilities and missions. Actual employment levels are limited by the availability of state funds appropriated for salaries, benefits and agency operations or funds available from other sources for such purposes.

In the next biennial budget, the Minnesota center for arts education must assess its progress in meeting its established performance measures and inform the legislature on the content of that assessment. The information must include an assessment of its progress by consumers and employees.

Sec. 4. Laws 1995, First Special Session chapter 3, article 11, section 23, is amended to read:

Sec. 23. [APPROPRIATIONS; FARIBAULT ACADEMIES.]

The sums indicated in this section are appropriated from the general fund to the department of education for the Faribault academies for the fiscal years designated:

$8,075,000 $8,316,000. . . . .1996

$8,075,000 $8,526,000. . . . .1997

Any balance in the first year does not cancel but is available in the second year.

The state board of education may establish full-time, part-time, or seasonal positions as necessary to carry out assigned responsibilities and missions of the Faribault academies. Actual employment levels are limited by the availability of state funds appropriated for salaries, benefits and agency operations or funds available from other sources for such purposes.

In the next biennial budget, the academies must assess their progress in meeting the established performance measures for the Faribault academies and inform the legislature on the content of that assessment. The information must include an assessment of its progress by consumers and employees.

Sec. 5. [APPROPRIATIONS.]

Subdivision 1. [DEPARTMENT OF EDUCATION.] The sums indicated in this section are appropriated from the general fund to the commissioner of children, families, and learning for the fiscal years designated.

Subd. 2. [LITIGATION COSTS.] For costs associated with desegregation litigation:

$500,000. . . . .1996

This appropriation is available until June 30, 1997, and may be expended only to the extent costs are incurred.

Subd. 3. [RETRAINING.] For retraining of department employees and employees who become department employees as a result of transfer from other agencies pursuant to Minnesota Statutes, section 119A.04:

$150,000. . . . .1996

This appropriation is available until June 30, 1997.

The retraining is subject to Laws 1995, First Special Session chapter 3, article 16, section 10, subdivision 5.

Subd. 4. [STUDENT ORGANIZATIONS.] To replace federal funds for grants to organizations supporting vocational student groups:

$100,000. . . . .1997

The commissioner must use these funds, in addition to state funds already designated for this purpose, to make grants to the student groups.

Sec. 6. [FEDERAL FUNDS.]

The expenditures of federal grants and aids as shown in budget change order number 1 dated January 18, 1996, for the department of children, families, and learning are approved and appropriated and may be spent as indicated. If the funds are spent for purposes other than those indicated in the change order, the department must notify the appropriate committees of the legislature.

Sec. 7. [EFFECTIVE DATE.]

Sections 2 to 6 are effective the day following final enactment.

Section 1. [121.95] [EDUCATION TECHNOLOGY IMPROVEMENT CLEARINGHOUSES.]

Subdivision 1. [ESTABLISHMENT.] The commissioner of children, families, and learning shall establish a grant program for school districts and technical colleges. The grants must be used for student operated and managed enterprises to upgrade and refurbish computers that are donated to schools. The purposes of the enterprises are to:

(1) serve as centers where business or others may donate new or used computer and other technology for use by Minnesota schools;

(2) provide an opportunity for students to upgrade donated and existing school-owned computers so that they are capable of being connected to the internet and local networks; and

(3) provide a means of informing schools of available technology and distributing donated and upgraded computers to schools for technology improvements in support of learning.

Students must operate each clearinghouse as a student-run enterprise. Each clearinghouse must provide opportunities for students to learn skills, including the technical skills needed to retrofit and upgrade computers and the business skills necessary to operate the clearinghouse and distribute the technology products to schools. The clearinghouse shall retain the ability to review equipment for suitability and refuse equipment that does not meet the standards or is not suitable for use in schools. At a minimum, all donated computers must be suitable for upgrade so that the retrofitted computer can be connected to the internet and a local computer network.

Subd. 2. [GRANTS.] The commissioner shall establish procedures and develop forms for applying for grants under this section. The grants may be used to purchase needed technology for upgrading donated computers and other donated technology, for the cost of computer distribution, and for the cost of informing businesses and others about technology donations to the clearinghouse. The commissioner shall develop guidelines for the use and distribution of any computers donated and upgraded through this grant program. The commissioner may establish priorities and prorate grants to match appropriations for the grant program.

Sec. 2. Minnesota Statutes 1995 Supplement, section 124C.74, subdivision 2, is amended to read:

Subd. 2. [SCHOOL DISTRICT TELECOMMUNICATIONS GRANT.] (a) A school district may apply for a grant under this subdivision to: (1) establish connections among school districts, and between school districts and the MNet statewide telecommunications network administered by the department of administration under section 16B.465; or (2) if such a connection meeting minimum electronic connectivity standards is already established, enhance telecommunications capacity for a school district. The minimum standards of capacity are a 56 kilobyte data line and 768 kilobyte ITV connection, subject to change based on the recommendations by the Minnesota education telecommunications council. A district may submit a grant application for interactive television with higher capacity connections in order to maintain multiple simultaneous connections. To ensure coordination among school districts, a school district must submit its grant application to the council through an organization that coordinates the applications and connections of at least ten school districts or through an existing technology cooperative.

(b) The application must, at a minimum, contain information to document for each applicant school district the following:

(1) that the proposed connection meets the minimum standards and employs an open network architecture that will ensure interconnectivity and interoperability with other education institutions and libraries;

(2) that the proposed connection and system will be connected to MNet through the department of administration under section 16B.465 and that a network service and management agreement is in place;

(3) that the proposed connection and system will be connected to the higher education telecommunication network and that a governance agreement has been adopted which includes agreements between the school district system, a higher education regional council, libraries, and coordinating entities;

(4) the telecommunication vendor, which may be MNet, selected to provide service from the district to an MNet hub or to a more cost-effective connection point to MNet; and

(5) other information, as determined by the commissioner in consultation with the education telecommunications council, to ensure that connections are coordinated, meet state standards and are cost-effective, and that service is provided in an efficient and cost-effective manner.

(c) A grant applicant shall obtain a grant proposal for network services from MNet. If MNet is not selected as the vendor, the application must provide the reasons for choosing an alternative vendor. A school district may include, in its grant application, telecommunications access for collaboration with nonprofit arts organizations for the purpose of educational programs, or access for a secondary media center that: (1) is a member of a multitype library system; (2) is open during periods of the year when classroom instruction is occurring; and (3) has licensed school media staff on site.

(d) The Minnesota education telecommunications council shall award grants and the funds shall be dispersed by the commissioner. The highest priority for these grants shall be to bring school districts up to the minimum connectivity standards. The telecommunications council shall also give priority to grant proposals from school districts with fewer than 1,000 students which do not have a data connection. A grant to enhance telecommunications capacity beyond the minimum connectivity standards shall be no more than 75 percent of the maximum grant under this subdivision. Grant applications for minimum connection and enhanced telecommunications capacity grants must be submitted to the commissioner by a coordinating organization including, but not limited to, service cooperatives and education districts. For the purposes of this section, a school district includes charter schools under section 120.064. Based on the award made by the council, all grants under this subdivision shall be paid by the commissioner directly to a school district (unless this application requests that the funds be paid to the coordinating agency).

(e) Money awarded under this section may be used only for the purposes explicitly stated in the grant application.

Sec. 3. Minnesota Statutes 1995 Supplement, section 124C.74, subdivision 3, is amended to read:

Subd. 3. [REGIONAL LIBRARY TELECOMMUNICATION GRANT.] (a) A regional public library system may apply for a telecommunication access grant. The grant must be used to create or expand the capacity of electronic data access and connect the library system with the MNet statewide telecommunications network administered by the department of administration under section 16B.465. Connections must meet minimum system standards of a 56 kilobyte data line and 768 kilobyte ITV connection. To be eligible for a telecommunications access grant, a regional public library system must: (1) meet the level of local support required under section 134.34; and (2) be open at least 20 hours per week; and (3) provide a local match for the grant with local funds under section 134.46.

(b) Any grant award under this subdivision may not be used to substitute for any existing local funds allocated to provide electronic access, or equipment for library staff or the public, or local funds previously dedicated to other library operations.

(c) An application for a regional public library telecommunications access grant must, at a minimum, contain information to document the following:

(1) that the connection meets the minimum standards and employs an open network architecture that will ensure interconnectivity and interoperability with other libraries and the educational system;

(2) that the connection is being established through the most cost-effective means and that the public library has explored and coordinated connections through school districts or other governmental agencies;

(3) that the proposed connection and system will be connected to MNet through the department of administration under section 16B.465 and that a network service and management agreement is in place;

(4) that the proposed connection and system will be connected to the higher education and to the school district telecommunication networks subject to a governance agreement with one or more school districts and a higher education regional council specifying how the system will be coordinated;

(5) the telecommunication vendor, which may be MNet, selected to provide service from the library to an MNet hub or through a more cost-effective connection point to MNet; and

(6) other information, as determined by the commissioner, to ensure that connections are coordinated, meet state standards, are cost-effective, and that service is provided in an efficient and cost-effective manner so that libraries throughout the state are connected in as seamless a manner as technically possible.

(d) A grant applicant shall obtain a grant proposal for network services from MNet. If MNet is not selected as the vendor, the application must provide the reasons for choosing an alternative vendor.

Sec. 4. Minnesota Statutes 1995 Supplement, section 134.46, is amended to read:

134.46 [REGIONAL LIBRARY TELECOMMUNICATIONS AID.]

(a) A regional public library system may apply to the commissioner for telecommunications aid to support data access through regional public library systems, including access to Internet for library staff and the public. The maximum amount of aid for each public library shall be calculated as follows:

(1) multiply $1 times the lesser of the population of the area served by the regional public library system, or the sum of the populations of the participating portions of the system; and

(2) deduct an amount equal to the sum of .1 percent times the adjusted net tax capacity for each participating city or county for the year preceding the year the levy is certified.

(b) A regional public library must match state aid with local funds equal to .1 percent times the adjusted net tax capacity for each participating city or county for the year preceding the year the levy is certified. A regional public library that receives a telecommunications access grant under section 124C.74 may use local funds under this section for the grant match in the year the grant is awarded, without a reduction in state aid. Local matching funds must be an increase in the amount of local funds allocated to support library operations in the year prior to the first year of the telecommunication access grant. Local matching funds are exempt from section 134.34. A grant award under this section may not be used to substitute for any existing local funds allocated to provide electronic data access or equipment for library staff or the public, or local funds previously dedicated to other library operations.

(c) Telecommunications aid under this section may be used for the:

(1) construction, maintenance, and lease costs of data access connections, including Internet connections;

(2) purchase, maintenance, professional development, and support of computer hardware and software for data access;

(3) cost of technical support for a regional library systems' technology investments, including technical support, personnel, contracted services for technical support, and training; and

(4) promotion of electronic access through public libraries for members of the public.

(d) If appropriations are insufficient to fully fund aid under this section, the commissioner shall prorate aid payments to participating regional library systems.

The telecommunications council may prorate grant awards based on the available appropriations, consistent with meeting the goals of this section and achieving an equitable distribution of grants.

Sec. 5. Minnesota Statutes 1995 Supplement, section 237.065, is amended to read:

237.065 [RATES FOR SPECIAL SERVICE TO SCHOOLS.]

Subdivision 1. [BASIC SERVICES.] Each telephone company, including a company that has developed an incentive plan under section 237.625, that provides local telephone service in a service area that includes a school that has classes within the range from kindergarten to 12th grade shall provide, upon request, additional service to the school that is sufficient to ensure access to basic telephone service from each classroom and other areas within the school, as determined by the school board. Each company shall set a flat rate for this additional service that is less than the company's flat rate for an access line for a business and the same as or greater than the company's flat rate for an access line for a residence in the same local telephone service exchange. When a company's flat rates for businesses and residences are the same, the company shall use the residential rate for service to schools under this section. The rate required under this section is available only for a school that installs additional service that includes access to basic telephone service from each classroom and other areas within the school, as determined by the school board.

Subd. 2. [BASIC AND ADVANCED TELECOMMUNICATION SERVICES.] (a) Notwithstanding the provisions of sections 237.09 and 237.14, each telephone company and telecommunications carrier that provides local telephone service in a service area that includes a school that has classes within the range from kindergarten to grade 12 or that includes a public library may provide, upon request, basic and advanced telecommunication services at reduced or no cost to that school or library. A school or library receiving telecommunications services at reduced or no cost may not resell or sublease the discounted services. An agent that provides telecommunications services to a school or library may request the favorable rate on behalf of and for the exclusive benefit of the school or library. The school or library must authorize the agent to make the request of the local telephone company or telecommunications carrier.

(b) For the purposes of this subdivision, "school" includes a public school as defined in section 120.05, nonpublic, and church or religious organization schools that provide instruction in compliance with sections 120.101 to 120.102.

Sec. 6. Laws 1995, First Special Session chapter 3, article 12, section 8, subdivision 1, is amended to read:

Subdivision 1. [ESTABLISHMENT; PURPOSE.] A grant program is established to help school districts work together and with higher education institutions, businesses, local government units, libraries, and community organizations in order to facilitate individualized learning and manage information by employing technological

advances, especially computers and computer-related products, and other advanced industrial technologies supporting school-to-work transitions in manufacturing, engineering, and transportation courses. Recipients shall use grant proceeds to:

(1) enhance teaching and learning productivity through the use of technology;

(2) develop individual learner classroom-based teaching and learning systems that can be aggregated into site, district, and state frameworks;

(3) develop personalized learning plans designed to give learners more responsibility for their learning success and change the role of teacher to learning facilitator;

(4) match and allocate resources;

(5) create a curriculum environment that is multiplatform;

(6) provide user and contributor access to electronic libraries;

(7) schedule activities;

(8) automate progress reports;

(9) increase collaboration between school districts and sites, and with businesses, higher education institutions, libraries, and local government units;

(10) correlate state-defined outcomes to curriculum units for each student;

(11) increase accountability through a reporting system; and

(12) provide technical support, project evaluation, dissemination services, and replication.

Sec. 7. Laws 1995, First Special Session chapter 3, article 12, section 12, subdivision 7, is amended to read:

Subd. 7. [TELECOMMUNICATION ACCESS GRANTS.] For grants to school districts and regional public library systems to establish connections to MNet according to Minnesota Statutes, section 124C.74:

$5,500,000. . . . .1996

$5,000,000 $13,000,000. . . . .1997

Of these appropriations, $300,000 is to pay the transmission costs for programming over the network and costs associated with operating the network.

This appropriation is available until June 30, 1997. The Faribault academies are eligible to apply for grants funded with these appropriations. These appropriations do not cancel but are available until expended.

Sec. 8. [TECHNOLOGY PLAN.]

Subdivision 1. [DEPARTMENT RESPONSIBILITY; TECHNOLOGY PLANNING PROCESS.] The commissioner of the department of children, families, and learning shall coordinate regional meetings of school districts for collaborative technology planning for school districts in the geographic region. The meetings must include, as appropriate, representatives of interested and involved organizations including, but not limited to, representatives of school districts, service cooperatives, TIES, education districts, higher education institutions, public libraries, and other government agencies. The department must provide technical assistance to school districts to develop a technology report based in part on the regional meetings and a district technology plan under subdivision 2. The plan must address the district's needs for computer and telecommunication hardware, networking capabilities, technology staffing needs, the teaching staff's need for technology training, and collaboration with other school districts and public agencies. The commissioner shall examine the school district technology plans for completeness. The commissioner shall consider a school district's technology plan in making technology-related funding decisions, including grant awards under Minnesota Statutes, section 124C.74.

Subd. 2. [DISTRICT TECHNOLOGY PLAN.] A school district must report to the commissioner by March 15, 1997, with a technology plan that describes the district's technology infrastructure and its staff capacity to use technology in support of learning. At a minimum, the technology plan must include the following:

(1) an inventory of the district's computer and telecommunication hardware with a description of current and projected needs;

(2) the status of the district's computer networking capabilities with description of any additional intradistrict, intraschool, interdistrict, and other networking needs;

(3) the number of district staff with principle responsibility for technology; an assessment of the entire teaching staff's level of computer competency and an assessment of the current and future needs for staff development and computer training and the need for specialized computer support personnel;

(4) any ongoing technology collaboration with other school districts and organizations with a description of proposed future technology collaboration with districts and other public organizations; and

(5) the allocation of current and future resources to meet the technology needs of the district.

The technology report and plan should consider the district's technology priorities, the age-appropriate needs of students for access to technology and electronic networks, the potential for increased efficiency through regional collaboration, the opportunity to provide enhanced or additional learning opportunities through technology, and the administrative needs for technology.

Sec. 9. [AFTER-SCHOOL PROGRAMS.]

The commissioner of children, families, and learning shall establish a process to initiate a competitive grant program to enhance the use of technology in after-school programs. Eligible organizations include school districts, private schools, nonprofit community organizations, public housing agencies, and other successful programs that serve youth.

Sec. 10. [TEACHER AND STUDENT TECHNOLOGY TRAINING.]

Subdivision 1. [TEACHER AND STUDENT TECHNOLOGY SEMINARS.] The department of children, families, and learning must conduct or contract for two one-day seminars to be held in the summer of 1996. The seminars must bring students and teachers who are proficient in the use of computer or telecommunication technology as learning tools together with teachers who are not yet proficient in the use of computer or telecommunication technology as learning tools. The seminars should promote the sharing of information, ideas, and techniques to encourage the effective use of computers and telecommunication technology to support learning.

Subd. 2. [TEACHER AND STUDENT TECHNOLOGY TRAINING GRANTS.] The commissioner of children, families, and learning shall award grants to groups of teachers to attend training classes, as a group, to enhance the use of computer or telecommunication technology as learning tools. The applicant group must include at least ten teachers from one or more school sites. Students may also be included in the applicant group, but may not be substituted for the required number of teachers. All participants must agree to share the information and skills they acquire through the technology training grant with other teachers and students at the school where they work or attend. They must also describe how they propose to share this knowledge with the broader school community. The commissioner shall develop application procedures and forms necessary to administer the grant program. All applicant groups must supply information required by the commissioner. At a minimum, the grants must specify the group membership, the type of technology training, and proposals to share the information and skills acquired through the training.

Subd. 3. [ADVANCEMENT OF TECHNOLOGY IN EDUCATION.] The commissioner shall make a grant to the center for applied research and educational improvement, college of education and human development, University of Minnesota. The grant must be used to publicize information about the use of new methods and curriculum for using telecommunications and computers in support of learning. Information on new techniques, uses, and curricula must be distributed throughout the state. The center may use electronic or print distribution to reach classrooms and teachers in all parts of Minnesota.

Sec. 11. [APPROPRIATIONS.]

Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND LEARNING.] The sums indicated in this section are appropriated from the general fund to the department of children, families, and learning for the fiscal year designated.

Subd. 2. [EDUCATION TECHNOLOGY IMPROVEMENT CLEARINGHOUSES.] For grants for education technology clearinghouses under section 1:

$500,000. . . . .1997

Subd. 3. [AFTER-SCHOOL PROGRAMS.] For after-school program grants under section 9:

$1,000,000. . . . .1997

The appropriation does not cancel and is available until expended.

Subd. 4. [TEACHER AND STUDENT TECHNOLOGY TRAINING.] For teacher and student technology training under section 10:

$1,460,000. . . . .1997

$1,380,000 is for teacher and student technology training.

$60,000 is for the department to conduct seminars.

$20,000 is for a grant to the center for applied research and educational improvement.

Subd. 5. [COMPUTER ASSISTED LEARNING GRANT.] For a grant to an organization with a demonstrated proficiency in applying computer hardware and software to reading improvement for at-risk students:

$40,000. . . . .1997

The grant must be used to advance these techniques in other education organizations.

Sec. 12. [EFFECTIVE DATE.]

Section 7 is effective the day following final enactment.

Section 1. Minnesota Statutes 1995 Supplement, section 43A.316, subdivision 2, is amended to read:

Subd. 2. [DEFINITIONS.] For the purpose of this section, the terms defined in this subdivision have the meaning given them.

(a) [COMMISSIONER.] "Commissioner" means the commissioner of employee relations.

(b) [EMPLOYEE.] "Employee" means:

(1) a person who is a public employee within the definition of section 179A.03, subdivision 14, who is insurance eligible and is employed by an eligible employer;

(2) an elected public official of an eligible employer who is insurance eligible; or

(3) a person employed by a labor organization or employee association certified as an exclusive representative of employees of an eligible employer or by another public employer approved by the commissioner, so long as the plan meets the requirements of a governmental plan under United States Code, title 29, section 1002(32).

(c) [ELIGIBLE EMPLOYER.] "Eligible employer" means:

(1) a public employer within the definition of section 179A.03, subdivision 15, that is a town, county, city, school district as defined in section 120.02, service cooperative as defined in section 123.582, intermediate district as defined in section 136C.02, subdivision 7 136D.01, cooperative center for vocational education as defined in section 123.351, regional management information center as defined in section 121.935, or an education unit organized under the joint powers action, section 471.59; or

(2) an exclusive representative of employees, as defined in paragraph (b); or

(3) another public employer approved by the commissioner.

(d) [EXCLUSIVE REPRESENTATIVE.] "Exclusive representative" means an exclusive representative as defined in section 179A.03, subdivision 8.

(e) [LABOR-MANAGEMENT COMMITTEE.] "Labor-management committee" means the committee established by subdivision 4.

(f) [PROGRAM.] "Program" means the statewide public employees insurance program created by subdivision 3.

Sec. 2. Minnesota Statutes 1995 Supplement, section 65B.132, is amended to read:

65B.132 [STUDENT DISCOUNTS; ELIGIBILITY.]

Any insurance company providing discounts on automobile insurance premiums to eligible persons attending colleges and universities must provide the discount to eligible students enrolled in technical colleges accredited by the department of children, families, and learning.

Sec. 3. Minnesota Statutes 1994, section 120.06, subdivision 1, is amended to read:

Subdivision 1. [AGE LIMITATIONS; PUPILS.] All schools supported in whole or in part by state funds are public schools. Admission to a public school, except a technical college, is free to any person who resides within the district which operates the school, who is under 21 years of age, and who satisfies the minimum age requirements imposed by this section. Notwithstanding the provisions of any law to the contrary, the conduct of all students under 21 years of age attending a public secondary school shall be governed by a single set of reasonable rules and regulations promulgated by the school board. No person shall be admitted to any public school (1) as a kindergarten pupil, unless the pupil is at least five years of age on September 1 of the calendar year in which the school year for which the pupil seeks admission commences; or (2) as a 1st grade student, unless the pupil is at least six years of age on September 1 of the calendar year in which the school year for which the pupil seeks admission commences or has completed kindergarten; except that any school board may establish a policy for admission of selected pupils at an earlier age.

Sec. 4. Minnesota Statutes 1994, section 120.08, subdivision 3, is amended to read:

Subd. 3. [SEVERANCE PAY.] A district shall pay severance pay to a teacher who is placed on unrequested leave of absence by the district as a result of an agreement under this section. A teacher is eligible under this subdivision if the teacher:

(1) is a teacher, as defined in section 125.12, subdivision 1, but not a superintendent;

(2) has a continuing contract with the district according to section 125.12, subdivision 4.

The amount of severance pay shall be equal to the teacher's salary for the school year during which the teacher was placed on unrequested leave of absence minus the gross amount the teacher was paid during the 12 months following the teacher's termination of salary, by an entity whose teachers by statute or rule must possess a valid Minnesota teaching license, and minus the amount a teacher receives as severance or other similar pay according to a contract with the district or district policy. These entities include, but are not limited to, the school district that placed the teacher on unrequested leave of absence, another school district in Minnesota, an education district, an intermediate school district, an ECSU, a board formed under section 471.59, a technical college, a state residential academy, the Minnesota center for arts education, a vocational center, or a special education cooperative. These

entities do not include a school district in another state, a Minnesota public post-secondary institution, or a state agency. Only amounts earned by the teacher as a substitute teacher or in a position requiring a valid Minnesota teaching license shall be subtracted. A teacher may decline any offer of employment as a teacher without loss of rights to severance pay.

To determine the amount of severance pay that is due for the first six months following termination of the teacher's salary, the district may require the teacher to provide documented evidence of the teacher's employers and gross earnings during that period. The district shall pay the teacher the amount of severance pay it determines to be due from the proceeds of the levy for this purpose. To determine the amount of severance pay that is due for the second six months of the 12 months following the termination of the teacher's salary, the district may require the teacher to provide documented evidence of the teacher's employers and gross earnings during that period. The district shall pay the teacher the amount of severance pay it determines to be due from the proceeds of the levy for this purpose.

A teacher who receives severance pay under this subdivision waives all further reinstatement rights under section 125.12, subdivision 6a or 6b. If the teacher receives severance pay, the teacher shall not receive credit for any years of service in the district paying severance pay prior to the year in which the teacher becomes eligible to receive severance pay.

The severance pay is subject to section 465.72. The district may levy annually according to section 124.912, subdivision 1, for the severance pay.

Sec. 5. Minnesota Statutes 1994, section 121.11, subdivision 15, is amended to read:

Subd. 15. [CERTAIN LICENSURE RULES.] The state board of education shall adopt and maintain as its rules for licensure of adult vocational education teachers, supervisory, and support personnel the rules of the former state board of technical colleges as published in Minnesota Rules 1993.

Sec. 6. Minnesota Statutes 1995 Supplement, section 121.15, subdivision 1, is amended to read:

Subdivision 1. [CONSULTATION.] A school district shall consult with the commissioner of children, families, and learning before developing any plans and specifications to construct, remodel, or improve the building or site of an educational facility, other than a technical college, for which the estimated cost exceeds $100,000. This consultation shall occur before a referendum for bonds, solicitation for bids, or use of capital expenditure facilities revenue according to section 124.243, subdivision 6, clause (2). The commissioner may require the district to participate in a management assistance plan before conducting a review and comment on the project.

Sec. 7. Minnesota Statutes 1995 Supplement, section 121.904, subdivision 4a, is amended to read:

Subd. 4a. [LEVY RECOGNITION.] (a) "School district tax settlement revenue" means the current, delinquent, and manufactured home property tax receipts collected by the county and distributed to the school district, including distributions made pursuant to section 279.37, subdivision 7, and excluding the amount levied pursuant to section 124.914, subdivision 1.

(b) In June of each year, the school district shall recognize as revenue, in the fund for which the levy was made, the lesser of:

(1) the May, June, and July school district tax settlement revenue received in that calendar year; or

(2) the sum of the state aids and credits enumerated in section 124.155, subdivision 2, which are for the fiscal year payable in that fiscal year plus an amount equal to the levy recognized as revenue in June of the prior year plus 48 percent for fiscal year 1996 and thereafter of the amount of the levy certified in the prior calendar year according to section 124A.03, subdivision 2, plus or minus auditor's adjustments, not including levy portions that are assumed by the state; or

(3) 48 percent for fiscal year 1996 and thereafter of the amount of the levy certified in the prior calendar year, plus or minus auditor's adjustments, not including levy portions that are assumed by the state, which remains after subtracting, by fund, the amounts levied for the following purposes:

(i) reducing or eliminating projected deficits in the reserved fund balance accounts for unemployment insurance and bus purchases;

(ii) statutory operating debt pursuant to section 124.914, subdivision 1;

(iii) retirement and severance pay pursuant to sections 122.531, subdivision 9, 124.2725, subdivision 15, 124.4945, 124.912, subdivision 1, and 124.916, subdivision 3, and Laws 1975, chapter 261, section 4;

(iv) amounts levied for bonds issued and interest thereon, amounts levied for debt service loans and capital loans, and amounts levied for down payments under section 124.82, subdivision 3, and amounts levied pursuant to section 136C.411; and

(v) amounts levied under section 124.755.

(c) In July of each year, the school district shall recognize as revenue that portion of the school district tax settlement revenue received in that calendar year and not recognized as revenue for the previous fiscal year pursuant to clause (b).

(d) All other school district tax settlement revenue shall be recognized as revenue in the fiscal year of the settlement. Portions of the school district levy assumed by the state, including prior year adjustments and the amount to fund the school portion of the reimbursement made pursuant to section 273.425, shall be recognized as revenue in the fiscal year beginning in the calendar year for which the levy is payable.

Sec. 8. Minnesota Statutes 1994, section 121.914, subdivision 1, is amended to read:

Subdivision 1. The "operating debt" of a school district means the net negative undesignated fund balance in all school district funds, other than capital expenditure, building construction, debt service, and trust and agency, and post-secondary vocational technical education funds, calculated as of June 30 of each year in accordance with the uniform financial accounting and reporting standards for Minnesota school districts.

Sec. 9. Minnesota Statutes 1994, section 121.915, is amended to read:

121.915 [REORGANIZATION OPERATING DEBT.]

The "reorganization operating debt" of a school district means the net negative undesignated fund balance in all school district funds, other than capital expenditure, building construction, debt redemption, and trust and agency, and post-secondary vocational technical education funds, calculated in accordance with the uniform financial accounting and reporting standards for Minnesota school districts as of:

(1) June 30 of the fiscal year before the first year that a district receives revenue according to section 124.2725; or

(2) June 30 of the fiscal year before the effective date of reorganization according to section 122.22 or 122.23.

Sec. 10. Minnesota Statutes 1995 Supplement, section 121.935, subdivision 1a, is amended to read:

Subd. 1a. [CENTER FOR DISTRICTS WITH ALTERNATIVE SYSTEMS.] Districts that operate alternative systems approved by the state board according to section 121.936 commissioner according to section 121.932, subdivision 4a, may create one regional management information center under section 471.59. The center shall have all of the powers authorized under section 471.59.

The center board may purchase or lease equipment. It may not employ any staff but may enter into a term contract for services. A person providing services according to a contract with the center board is not a state employee.

The department shall provide the center all services that are provided to regional centers formed under subdivision 1, including transferring software and providing accounting assistance.

Sec. 11. Minnesota Statutes 1994, section 122.32, subdivision 1, is amended to read:

Subdivision 1. If there be any organized school district not maintaining a classified school within the district, except those districts which have a contract with the a state university board, or with the board of regents of the University of Minnesota for the education of all the children of the district, such district shall hereby be dissolved as of the date the district ceases to maintain a classified school. Any such district not maintaining a classified school shall forthwith be attached by order of the county board to such district maintaining classified elementary or secondary schools upon notice and hearing as provided in section 122.22 for the attachment of dissolved districts.

Sec. 12. Minnesota Statutes 1994, section 122.535, subdivision 6, is amended to read:

Subd. 6. [SEVERANCE PAY.] A district shall pay severance pay to a teacher who is placed on unrequested leave of absence by the district as a result of the agreement. A teacher is eligible under this subdivision if the teacher:

(1) is a teacher, as defined in section 125.12, subdivision 1, but not a superintendent;

(2) has a continuing contract with the district according to section 125.12, subdivision 4.

The amount of severance pay shall be equal to the teacher's salary for the school year during which the teacher was placed on unrequested leave of absence minus the gross amount the teacher was paid during the 12 months following the teacher's termination of salary, by an entity whose teachers by statute or rule must possess a valid Minnesota teaching license, and minus the amount a teacher receives as severance or other similar pay according to a contract with the district or district policy. These entities include, but are not limited to, the school district that placed the teacher on unrequested leave of absence, another school district in Minnesota, an education district, an intermediate school district, an ECSU, a board formed under section 471.59, a technical college, a state residential academy, the Minnesota center for arts education, a vocational center, or a special education cooperative. These entities do not include a school district in another state, a Minnesota public post-secondary institution, or a state agency. Only amounts earned by the teacher as a substitute teacher or in a position requiring a valid Minnesota teaching license shall be subtracted. A teacher may decline any offer of employment as a teacher without loss of rights to severance pay.

To determine the amount of severance pay that is due for the first six months following termination of the teacher's salary, the district may require the teacher to provide documented evidence of the teacher's employers and gross earnings during that period. The district shall pay the teacher the amount of severance pay it determines to be due from the proceeds of the levy for this purpose. To determine the amount of severance pay that is due for the second six months of the 12 months following the termination of the teacher's salary, the district may require the teacher to provide documented evidence of the teacher's employers and gross earnings during that period. The district shall pay the teacher the amount of severance pay it determines to be due from the proceeds of the levy for this purpose.

A teacher who receives severance pay under this subdivision waives all further reinstatement rights under section 125.12, subdivision 6a or 6b. If the teacher receives severance pay, the teacher shall not receive credit for any years of service in the district paying severance pay prior to the year in which the teacher becomes eligible to receive severance pay.

The severance pay is subject to section 465.72. The district may levy annually according to section 124.912, subdivision 1, for the severance pay.

Sec. 13. Minnesota Statutes 1994, section 122.895, subdivision 2, is amended to read:

Subd. 2. [APPLICABILITY.] This section applies to:

(1) an education district organized according to sections 122.91 to 122.95;

(2) a cooperative vocational center organized according to section 123.351;

(3) a joint powers district or board organized according to section 471.59 which employs teachers to provide instruction;

(4) a joint vocational technical district organized according to sections 136C.60 to 136C.69;

(5) an intermediate district organized according to chapter 136D;

(6) (5) an educational cooperative service unit a service cooperative which employs teachers to provide instruction; and

(7) (6) school districts participating in an agreement for the cooperative provision of special education services to children with disabilities according to section 120.17, subdivision 4.

Sec. 14. Minnesota Statutes 1994, section 123.351, subdivision 10, is amended to read:

Subd. 10. [REVENUE.] A secondary vocational cooperative may be eligible for revenue under section 124.575 124.573.

Sec. 15. Minnesota Statutes 1994, section 123.3514, subdivision 9, is amended to read:

Subd. 9. [EXCEPTION; INTERMEDIATE DISTRICTS.] A secondary pupil who is a resident of a member district of an intermediate district, as defined in section 136C.02, subdivision 7 136D.01, may not enroll in that intermediate district's vocational program as a post-secondary pupil under this section.

Sec. 16. Minnesota Statutes 1994, section 123.37, subdivision 1a, is amended to read:

Subd. 1a. The board may authorize its superintendent or business manager, or technical college president in those districts operating a technical college, to lease, purchase, and contract for goods and services within the budget as approved by the board, provided that any transaction in an amount exceeding the minimum amount for which bids are required must first be specifically authorized by the board and must fulfill all other applicable requirements in subdivision 1.

Sec. 17. Minnesota Statutes 1994, section 123.38, subdivision 2, is amended to read:

Subd. 2. The board shall take charge of and control all cocurricular school activities of the teachers and children of the public schools in that district held in the school building or school grounds or under the supervision or direction of the school board and to that end adopt rules and regulations for the conduct of these activities in which the schools of the district or any class or pupils therein may participate. All money received on account of such activities shall be turned over to the school district treasurer, who shall keep the same in the general fund or the technical colleges fund, if applicable, to be disbursed for expenses and salaries connected with the activities, or otherwise, by the board upon properly allowed itemized claims.

No cocurricular activity shall be participated in by the teachers or pupils in the public schools of such district, nor shall the school name or any allied name be used in connection therewith, except by consent and direction of the board.

Sec. 18. Minnesota Statutes 1994, section 123.38, subdivision 2b, is amended to read:

Subd. 2b. (a) The board may take charge of and control all extracurricular activities of the teachers and children of the public schools in the district. Extracurricular activities shall mean all direct and personal services for public school pupils for their enjoyment that are managed and operated under the guidance of an adult or staff member.

(b) Extracurricular activities have all of the following characteristics:

(1) they are not offered for school credit nor required for graduation;

(2) they are generally conducted outside school hours, or if partly during school hours, at times agreed by the participants, and approved by school authorities;

(3) the content of the activities is determined primarily by the pupil participants under the guidance of a staff member or other adult.

(c) If the board does not take charge of and control extracurricular activities, these activities shall be self-sustaining with all expenses, except direct salary costs and indirect costs of the use of school facilities, met by dues, admissions, or other student fundraising events. The general fund or the technical colleges fund, if applicable, shall reflect only those salaries directly related to and readily identified with the activity and paid by public funds. Other revenues and expenditures for extra curricular activities must be recorded according to the "Manual of Instruction for Uniform Student Activities Accounting for Minnesota School Districts and Area Vocational-Technical Colleges." Extracurricular activities not under board control must have an annual financial audit and must also be audited annually for compliance with this section.

(d) If the board takes charge of and controls extracurricular activities, any or all costs of these activities may be provided from school revenues and all revenues and expenditures for these activities shall be recorded in the same manner as other revenues and expenditures of the district.

(e) If the board takes charge of and controls extracurricular activities, no such activity shall be participated in by the teachers or pupils in the district, nor shall the school name or any allied name be used in connection therewith, except by consent and direction of the board.

Sec. 19. Minnesota Statutes 1994, section 124.573, subdivision 3, is amended to read:

Subd. 3. [COMPLIANCE WITH RULES.] Aid shall be paid under this section only for services rendered or for costs incurred in secondary vocational education programs approved by the commissioner and operated in accordance with rules promulgated by the state board. These rules shall provide minimum student-staff ratios required for a secondary vocational education program area to qualify for this aid. The rules must not require the collection of data at the program or course level to calculate secondary vocational aid. The rules shall not require any minimum number of administrative staff, any minimum period of coordination time or extended employment for secondary vocational education personnel, or the availability of vocational student activities or organizations for a secondary vocational education program to qualify for this aid. The requirement in these rules that program components be available for a minimum number of hours shall not be construed to prevent pupils from enrolling in secondary vocational education courses on an exploratory basis for less than a full school year. The state board shall not require a school district to offer more than four credits or 560 hours of vocational education course offerings in any school year. Rules relating to secondary vocational education programs shall not incorporate the provisions of the state plan for vocational education by reference. This aid shall be paid only for services rendered and for costs incurred by essential, licensed personnel who meet the work experience requirements for licensure pursuant to the rules of the state board. Licensed personnel means persons holding a valid secondary vocational license issued by the commissioner, except that when an average of five or fewer secondary full-time equivalent students are enrolled per teacher in an approved post-secondary program at intermediate district No. 287, 916, or 917, licensed personnel means persons holding a valid vocational license issued by the commissioner or, the state board for vocational technical education, or the board of trustees of the Minnesota state colleges and universities. Notwithstanding section 124.15, the commissioner may modify or withdraw the program or aid approval and withhold aid under this section without proceeding under section 124.15 at any time. To do so, the commissioner must determine that the program does not comply with rules of the state board or that any facts concerning the program or its budget differ from the facts in the district's approved application.

Sec. 20. Minnesota Statutes 1995 Supplement, section 124.71, subdivision 2, is amended to read:

Subd. 2. Commissioner as used in sections 124.71 to 124.76 means the commissioner of children, families, and learning or, for certificates for a technical college, the chancellor of vocational technical education.

Sec. 21. Minnesota Statutes 1995 Supplement, section 124.912, subdivision 1, is amended to read:

Subdivision 1. [STATUTORY OBLIGATIONS.] (a) A school district may levy the amount authorized for liabilities of dissolved districts pursuant to section 122.45; the amounts necessary to pay the district's obligations under section 268.06, subdivision 25; the amounts necessary to pay for job placement services offered to employees who may become eligible for benefits pursuant to section 268.08; the amounts necessary to pay the district's obligations under section 127.05; the amounts authorized by section 122.531; the amounts necessary to pay the district's obligations under section 122.533; and for severance pay required by sections 120.08, subdivision 3, and 122.535, subdivision 6.

(b) An education district that negotiates a collective bargaining agreement for teachers under section 122.937 may certify to the department of children, families, and learning the amount necessary to pay all of the member districts' obligations and the education district's obligations under section 268.06, subdivision 25.

The department of children, families, and learning must allocate the levy amount proportionately among the member districts based on adjusted net tax capacity. The member districts must levy the amount allocated.

(c) Each year, a member district of an education district that levies under this subdivision must transfer the amount of revenue certified under paragraph (b) to the education district board according to this subdivision. By June 20 and November 30 of each year, an amount must be transferred equal to:

(1) 50 percent times

(2) the amount certified in paragraph (b) minus homestead and agricultural credit aid allocated for that levy according to section 273.1398, subdivision 6.

Sec. 22. Minnesota Statutes 1995 Supplement, section 124A.22, subdivision 2a, is amended to read:

Subd. 2a. [CONTRACT DEADLINE AND PENALTY.] (a) The following definitions apply to this subdivision:

(1) "Public employer" means:

(i) a school district; and

(ii) a public employer, as defined by section 179A.03, subdivision 15, other than a school district that (i) negotiates a contract under chapter 179A with teachers, and (ii) is established by, receives state money, or levies under chapters 120 to 129, or 136D, or 268A.

(2) "Teacher" means a person, other than a superintendent or assistant superintendent, principal, assistant principal, or a supervisor or confidential employee who occupies a position for which the person must be licensed by the board of teaching, state board of education, or state the former board of technical colleges, or the board of trustees of the Minnesota state colleges and universities.

(b) Notwithstanding any law to the contrary, a public employer and the exclusive representative of the teachers shall both sign a collective bargaining agreement on or before January 15 of an even-numbered calendar year. If a collective bargaining agreement is not signed by that date, state aid paid to the public employer for that fiscal year shall be reduced. However, state aid shall not be reduced if:

(1) a public employer and the exclusive representative of the teachers have submitted all unresolved contract items to interest arbitration according to section 179A.16 before December 31 of an odd-numbered year and filed required final positions on all unresolved items with the commissioner of mediation services before January 15 of an even-numbered year; and

(2) the arbitration panel has issued its decision within 60 days after the date the final positions were filed.

(c)(1) For a district that reorganizes according to section 122.22, 122.23, or 122.241 to 122.248 effective July 1 of an odd-numbered year, state aid shall not be reduced according to this subdivision if the school board and the exclusive representative of the teachers both sign a collective bargaining agreement on or before the March 15 following the effective date of reorganization.

(2) For a district that jointly negotiates a contract prior to the effective date of reorganization under section 122.22, 122.23, or 122.241 to 122.248 that, for the first time, includes teachers in all districts to be reorganized, state aid shall not be reduced according to this subdivision if the school board and the exclusive representative of the teachers sign a collective bargaining agreement on or before the March 15 following the expiration of the teacher contracts in each district involved in the joint negotiation.

(3) Only one extension of the contract deadline is available to a district under this paragraph.

(d) The reduction shall equal $25 times the number of actual pupil units:

(1) for a school district, that are in the district during that fiscal year; or

(2) for a public employer other than a school district, that are in programs provided by the employer during the preceding fiscal year.

The department of children, families, and learning shall determine the number of full-time equivalent actual pupil units in the programs. The department of children, families, and learning shall reduce general education aid; if general education aid is insufficient or not paid, the department shall reduce other state aids.

(e) Reductions from aid to school districts and public employers other than school districts shall be returned to the general fund.

Sec. 23. Minnesota Statutes 1995 Supplement, section 125.05, subdivision 1, is amended to read:

Subdivision 1. [AUTHORITY TO LICENSE.] (a) The board of teaching shall license teachers, as defined in section 125.03, subdivision 1, except for supervisory personnel, as defined in section 125.03, subdivision 4.

(b) The state board of education shall license supervisory personnel as defined in section 125.03, subdivision 4.

(c) The state board of technical colleges, according to section 136C.04, shall license post-secondary vocational and adult vocational teachers, support personnel, and supervisory personnel in technical colleges.

(d) Licenses under the jurisdiction of the board of teaching and the state board of education must be issued through the licensing section of the department of children, families, and learning.

Sec. 24. Minnesota Statutes 1994, section 125.09, subdivision 4, is amended to read:

Subd. 4. [MANDATORY REPORTING.] A school board shall report to the board of teaching, the state board of education, or the state board of technical colleges trustees of the Minnesota state colleges and universities, whichever has jurisdiction over the teacher's license, when its teacher is discharged or resigns from employment after a charge is filed with the school board under section 125.17, subdivisions 4, clauses (1), (2), and (3), and 5, or after charges are filed that are ground for discharge under section 125.12, subdivision 8, clauses (a), (b), (c), (d), and (e), or when a teacher is suspended or resigns while an investigation is pending under section 125.12, subdivision 8, clauses (a), (b), (c), (d), and (e); 125.17, subdivisions 4, clauses (1), (2), and (3), and 5; or 626.556. The report must be made to the board within ten days after the discharge, suspension, or resignation has occurred. The board to which the report is made shall investigate the report for violation of subdivision 1 and the reporting school board shall cooperate in the investigation. Notwithstanding any provision in chapter 13 or any law to the contrary, upon written request from the licensing board having jurisdiction over the teacher's license, a school board or school superintendent shall provide the licensing board with information about the teacher from the school district's files, any termination or disciplinary proceeding, any settlement or compromise, or any investigative file. Upon written request from the appropriate licensing board, a school board or school superintendent may, at the discretion of the school board or school superintendent, solicit the written consent of a student and the student's parent to provide the licensing board with information that may aid the licensing board in its investigation and license proceedings. The licensing board's request need not identify a student or parent by name. The consent of the student and the student's parent must meet the requirements of chapter 13 and Code of Federal Regulations, title 34, section 99.30. The licensing board may provide a consent form to the school district. Any data transmitted to any board under this section shall be private data under section 13.02, subdivision 12, notwithstanding any other classification of the data when it was in the possession of any other agency.

The board to which a report is made shall transmit to the attorney general's office any record or data it receives under this subdivision for the sole purpose of having the attorney general's office assist that board in its investigation. When the attorney general's office has informed an employee of the appropriate licensing board in writing that grounds exist to suspend or revoke a teacher's license to teach, that licensing board must consider suspending or revoking or decline to suspend or revoke the teacher's license within 45 days of receiving a stipulation executed by the teacher under investigation or a recommendation from an administrative law judge that disciplinary action be taken.

Sec. 25. Minnesota Statutes 1994, section 125.1385, subdivision 1, is amended to read:

Subdivision 1. [AUTHORITY; LIMITS.] The state university board of trustees of the Minnesota state colleges and universities and the board of regents of the University of Minnesota may develop programs to exchange faculty between colleges or schools of education and school districts, subject to section 125.138.

The programs must be used to assist in improving teacher education by involving current teachers in education courses and placing post-secondary faculty in elementary and secondary classrooms. Programs must include exchanges that extend beyond the immediate service area of the institution to address the needs of different types of schools, students, and teachers.

Sec. 26. Minnesota Statutes 1994, section 125.185, subdivision 4, is amended to read:

Subd. 4. [LICENSE AND RULES.] (a) The board shall adopt rules to license public school teachers and interns subject to chapter 14.

(b) The board shall adopt rules requiring a person to successfully complete a skills examination in reading, writing, and mathematics as a requirement for initial teacher licensure. Such rules shall require college and universities offering a board approved teacher preparation program to provide remedial assistance to persons who did not achieve a qualifying score on the skills examination, including those for whom English is a second language.

(c) The board shall adopt rules to approve teacher preparation programs.

(d) The board shall provide the leadership and shall adopt rules for the redesign of teacher education programs to implement a research based, results-oriented curriculum that focuses on the skills teachers need in order to be effective. The board shall implement new systems of teacher preparation program evaluation to assure program effectiveness based on proficiency of graduates in demonstrating attainment of program outcomes.

(e) The board shall adopt rules requiring successful completion of an examination of general pedagogical knowledge and examinations of licensure-specific teaching skills. The rules shall be effective on the dates determined by the board, but not later than July 1, 1999.

(f) The board shall adopt rules requiring teacher educators to work directly with elementary or secondary school teachers in elementary or secondary schools to obtain periodic exposure to the elementary or secondary teaching environment.

(g) The board shall grant licenses to interns and to candidates for initial licenses.

(h) The board shall design and implement an assessment system which requires a candidate for an initial license and first continuing license to demonstrate the abilities necessary to perform selected, representative teaching tasks at appropriate levels.

(i) The board shall receive recommendations from local committees as established by the board for the renewal of teaching licenses.

(j) The board shall grant life licenses to those who qualify according to requirements established by the board, and suspend or revoke licenses pursuant to sections 125.09 and 214.10. The board shall not establish any expiration date for application for life licenses.

(k) With regard to post-secondary vocational education teachers the board of teaching shall adopt and maintain as its rules the rules of the former state board of technical colleges as published in Minnesota Rules 1993.

Sec. 27. Minnesota Statutes 1994, section 125.60, subdivision 2, is amended to read:

Subd. 2. The board of any district may grant an extended leave of absence without salary to any full- or part-time elementary, or secondary, or technical college teacher who has been employed by the district for at least five years and has at least ten years of allowable service, as defined in section 354.05, subdivision 13, or the bylaws of the appropriate retirement association or ten years of full-time teaching service in Minnesota public elementary, and secondary, and technical colleges schools. The maximum duration of an extended leave of absence pursuant to this section shall be determined by mutual agreement of the board and the teacher at the time the leave is granted and shall be at least three but no more than five years. An extended leave of absence pursuant to this section shall be taken by mutual consent of the board and the teacher. If the school board denies a teacher's request, it shall provide reasonable justification for the denial.

Sec. 28. Minnesota Statutes 1994, section 125.611, subdivision 1, is amended to read:

Subdivision 1. [CRITERIA.] For purposes of this section, "teacher" means a teacher as defined in section 125.03, subdivision 1, who:

(a) is employed in the a public elementary, or secondary, or technical colleges school in the state and

(b) either

(1)(i) has not less than 15 total years of full-time teaching service in elementary, secondary, and technical colleges, or at least 15 years of allowable service as defined in sections 354.05, subdivision 13; 354.092; 354.093; 354.094; 354.53; 354.66; 354A.011, subdivision 4; 354A.091; 354A.092; 354A.093; 354A.094; or Laws 1982, chapter 578, article II, section 1 and

(ii) has or will have attained the age of 55 years but less than 65 years as of the June 30 in the school year during which an application for an early retirement incentive is made, or

(2) has not less than 30 total years of full-time teaching service in elementary, secondary, and technical colleges, or at least 30 years of allowable service as defined in sections 354.05, subdivision 13; 354.092; 354.093; 354.094; 354.53; 354.66; 354A.011, subdivision 4; 354A.091; 354A.092; 354A.093; 354A.094; or Laws 1982, chapter 578, article II, section 1.

Sec. 29. Minnesota Statutes 1995 Supplement, section 126.12, subdivision 2, is amended to read:

Subd. 2. The school board shall determine the number of school days of each school year on or before April 1 of the calendar year in which such school year commences. The board shall offer all elementary, middle, and secondary school subjects required by the board or the curriculum rules of the state board of education on days other than Saturdays, Sundays, and holidays. On any day of the week the board may provide:

(1) classes or courses at technical colleges;

(2) classes or courses at area learning centers;

(3) (2) classes or courses if necessary to meet the requirement in section 124.19 of making a good faith attempt to make up time lost because of circumstances beyond the control of the school board;

(4) (3) remedial courses;

(5) (4) courses previously taken, but not successfully completed by the pupil for whom the course is being provided;

(6) (5) staff development programs; and

(7) (6) other educational opportunities approved by the commissioner of children, families, and learning.

Sec. 30. Minnesota Statutes 1995 Supplement, section 126.151, subdivision 1, is amended to read:

Subdivision 1. [ACTIVITIES OF THE ORGANIZATION.] Any student enrolled in a vocational technical education program approved by the state boards board of education and technical colleges or the board of trustees of the Minnesota state colleges and universities may belong to a vocational student organization that is operated as an integral part of the vocational program. The commissioner of children, families, and learning and the chancellor of technical colleges board of trustees of the Minnesota state colleges and universities may provide necessary technical assistance and leadership at the state level for administration of approved vocational student organizations and fiscal accounts, including administration of state and national conferences.

Sec. 31. Minnesota Statutes 1994, section 126.151, subdivision 2, is amended to read:

Subd. 2. [ACCOUNTS OF THE ORGANIZATION.] The commissioner and the state board of technical trustees of the Minnesota state colleges and universities may retain dues and other money collected on behalf of students participating in approved vocational student organizations and may deposit the money in separate accounts. The money in these accounts shall be available for expenditures for state and national activities related to specific organizations. Administration of money collected under this section is not subject to the provisions of chapters 15, 16A, and 16B, and may be deposited outside the state treasury. Money shall be administered under the policies of the applicable state board or agency relating to post-secondary and secondary vocational student organizations and is subject to audit by the legislative auditor. Any unexpended money shall not cancel but may be carried forward to the next fiscal year.

Sec. 32. [136D.01] [INTERMEDIATE DISTRICT.]

"Intermediate district" means a district with a cooperative program which has been established under Laws 1967, chapter 822, as amended; Laws 1969, chapter 775, as amended; and Laws 1969, chapter 1060, as amended, offering integrated services for secondary, post-secondary, and adult students in the areas of vocational education, special education, and other authorized services.

Sec. 33. Minnesota Statutes 1994, section 136D.23, subdivision 1, is amended to read:

Subdivision 1. [PUBLIC AGENCY.] The joint school board shall be a public agency of the participating school districts and may receive and disburse federal and state funds made available to it or to the participating school districts, including moneys described in section 136C.07.

Sec. 34. Minnesota Statutes 1994, section 136D.83, subdivision 1, is amended to read:

Subdivision 1. [PUBLIC AGENCY.] The joint school board shall be a public agency of the participating school districts and may receive and disburse federal and state funds made available to it or to the participating school districts, including moneys described in section 136C.07.

Sec. 35. Minnesota Statutes 1994, section 144.4165, is amended to read:

144.4165 [TOBACCO PRODUCTS PROHIBITED IN PUBLIC SCHOOLS.]

No person shall at any time smoke, chew, or otherwise ingest tobacco or a tobacco product in a public school, as defined in section 120.05, subdivision 2. This prohibition extends to all facilities, whether owned, rented, or leased, and all vehicles that a school district owns, leases, rents, contracts for, or controls. This prohibition does not apply to a technical college. Nothing in this section shall prohibit the lighting of tobacco by an adult as a part of a traditional Indian spiritual or cultural ceremony. For purposes of this section, an Indian is a person who is a member of an Indian tribe as defined in section 257.351, subdivision 9.

Sec. 36. [REPEALER.]

Minnesota Statutes 1994, sections 124B.02; 124B.10; 124B.20, subdivisions 2 and 3; and 136D.75; and Minnesota Statutes 1995 Supplement, sections 124B.01; 124B.03; and 124B.20, subdivision 1, are repealed.

Section 1. Minnesota Statutes 1995 Supplement, section 121.904, subdivision 4a, is amended to read:

Subd. 4a. [LEVY RECOGNITION.] (a) For purposes of this section, the following terms have the meanings given them.

(1) "School district tax settlement revenue" means the current, delinquent, and manufactured home property tax receipts collected by the county and distributed to the school district, including distributions made pursuant to section 279.37, subdivision 7, and excluding the amount levied pursuant to section 124.914, subdivision 1.

(2) "General levy recognition percentage" means 18.1 percent for fiscal year 1996, and the amount determined under section 6 for fiscal year 1997 and thereafter.

(3) "Referendum levy recognition percentage" means 31 percent for fiscal year 1996, and, for fiscal year 1997 and later, the greater of the general levy recognition percentage or the following amounts: 25 percent for fiscal year 1997; 19 percent for fiscal year 1998; 13 percent for fiscal year 1999; seven percent for fiscal year 2000; and zero for fiscal year 2001 and thereafter.

(b) In June of each year, the school district shall recognize as revenue, in the fund for which the levy was made, the lesser of:

(1) the May, June, and July school district tax settlement revenue received in that calendar year; or

(2) the sum of the state aids and credits enumerated in section 124.155, subdivision 2, which are for the fiscal year payable in that fiscal year plus an amount equal to the levy recognized as revenue in June of the prior year plus 48 percent the referendum levy recognition percentage for fiscal year 1996 and thereafter of times the amount of the levy certified in the prior calendar year according to section 124A.03, subdivision 2, plus or minus auditor's adjustments, not including levy portions that are assumed by the state; or

(3) 48 percent for fiscal year 1996 and thereafter of, the general levy recognition percentage times the amount of the levy certified, other than the levy amounts certified under section 124A.03 in the prior year, plus the referendum levy recognition percentage times the levy amounts certified under section 124A.03 in the prior calendar year, plus or minus auditor's adjustments, not including levy portions that are assumed by the state, which remains after subtracting, by fund, the amounts levied for the following purposes:

(i) reducing or eliminating projected deficits in the reserved fund balance accounts for unemployment insurance and bus purchases;

(ii) statutory operating debt pursuant to section 124.914, subdivision 1;

(iii) retirement and severance pay pursuant to sections 122.531, subdivision 9, 124.2725, subdivision 15, 124.4945, 124.912, subdivision 1, and 124.916, subdivision 3, and Laws 1975, chapter 261, section 4;

(iv) amounts levied for bonds issued and interest thereon, amounts levied for debt service loans and capital loans, amounts levied for down payments under section 124.82, subdivision 3, and amounts levied pursuant to section 136C.411; and

(v) amounts levied under section 124.755.

(c) In July of each year, the school district shall recognize as revenue that portion of the school district tax settlement revenue received in that calendar year and not recognized as revenue for the previous fiscal year pursuant to clause (b).

(d) All other school district tax settlement revenue shall be recognized as revenue in the fiscal year of the settlement. Portions of the school district levy assumed by the state, including prior year adjustments and the amount to fund the school portion of the reimbursement made pursuant to section 273.425, shall be recognized as revenue in the fiscal year beginning in the calendar year for which the levy is payable.

Sec. 2. Minnesota Statutes 1995 Supplement, section 121.904, subdivision 4c, is amended to read:

Subd. 4c. [CHANGE IN LEVY RECOGNITION PERCENT.] (a) Money appropriated under section 16A.152, subdivision 2, must be used to reduce the levy recognition percent specified in subdivision 4a, clauses (b)(2) and (b)(3), for taxes payable in the succeeding calendar year.

(b) The levy recognition percent shall equal the result of the following computation: the current general levy recognition percent percentage, times the ratio of

(1) the statewide total amount of levy recognized in June of the year in which the taxes are payable pursuant to subdivision 4a, clause (b), excluding those levies that are shifted for revenue recognition but are not included in the computation of the adjustment to aids under section 124.155, subdivision 1, reduced by the difference between the amount of money appropriated under section 16A.152, subdivision 2, and the amount required for the adjustment payment under clause (d), to

(2) the statewide total amount of the levy recognized in June of the year in which the taxes are payable pursuant to subdivision 4a, clause (b), excluding those levies that are shifted for revenue recognition but are not included in the computation of the adjustment to aids under section 124.155, subdivision 1.

The result shall be rounded up to the nearest one-tenth of a percent. However, in no case shall the levy recognition percent be reduced below zero or increased above the current levy recognition percent.

(c) The commissioner of finance must certify to the commissioner of children, families, and learning the general levy recognition percent percentage computed under this subdivision by January 5 of each year. The commissioner of children, families, and learning must notify school districts of a change in the general levy recognition percent percentage by January 15.

(d) When the levy recognition percent is increased or decreased as provided in this subdivision, a special aid adjustment shall be made to each school district with an operating referendum levy:

(i) When the levy recognition percent is increased from the prior fiscal year, the commissioner of children, families, and learning shall calculate the difference between (1) the amount of the levy under section 124A.03, that is recognized as revenue for the current fiscal year according to subdivision 4a; and (2) the amount of the levy, under section 124A.03, that would have been recognized as revenue for the current fiscal year had the percentage according to subdivision 4a, not been increased. The commissioner shall reduce other aids due the district by the amount of the difference. This aid reduction shall be in addition to the aid reduction required because of the increase pursuant to this subdivision of the levy recognition percent.

(ii) When the levy recognition percent is reduced from the prior fiscal year, a special adjustment payment shall be made to each school district with an operating referendum levy that received an aid reduction when the levy recognition percent was last increased. The special adjustment payment shall be in addition to the additional payments required because of the reduction pursuant to this subdivision of the levy recognition percent. The amount of the special adjustment payment shall be computed by the commissioner of children, families, and learning such that any remaining portion of the aid reduction these districts received that has not been repaid is repaid on a proportionate basis as the levy recognition percent is reduced from 50 percent to 31 percent. The special adjustment payment must be included in the state aid payments to school districts according to the schedule specified in section 124.195, subdivision 3.

(e) The commissioner of finance shall transfer from the general fund to the education aids appropriations specified by the commissioner of children, families, and learning, the amounts needed to finance the additional payments required because of the reduction pursuant to this subdivision of the levy recognition percent. Payments to a school district of additional state aids resulting from a reduction in the levy recognition percent must be included in the cash metering of payments made according to section 124.195 after January 15, and must be paid in a manner consistent with the percent specified in that section.

Sec. 3. Minnesota Statutes 1994, section 124.155, subdivision 1, is amended to read:

Subdivision 1. [AMOUNT OF ADJUSTMENT.] Each year state aids and credits enumerated in subdivision 2 payable to any school district for that fiscal year shall be adjusted, in the order listed, by an amount equal to (1) the amount the district recognized as revenue for the prior fiscal year pursuant to section 121.904, subdivision 4a, clause (b), minus (2) the amount the district recognizes as revenue for the current fiscal year pursuant to section 121.904, subdivision 4a, clause (b). For the purposes of making the aid adjustment under this subdivision, the amount the district recognizes as revenue for either the prior fiscal year or the current fiscal year pursuant to section 121.904, subdivision 4a, clause (b), shall not include:

(1) any amount levied pursuant to sections 124.226, subdivision 9, 124.912, subdivisions 2 and 3, or a successor provision only for those districts affected, 124.916, subdivisions 1 and 2, and 124.918, subdivision 6, and 124A.03, subdivision 2; and Laws 1992, chapter 499, articles 1, section 20, and 6, section 36; and

(2) an amount equal to the referendum levy certified under section 124A.03, subdivision 2, times the lesser of one, or the ratio of the lowest referendum levy recognition percentage for fiscal year 1996 or later, to the referendum levy recognition percentage for that year. Payment from the permanent school fund shall not be adjusted pursuant to this section. The school district shall be notified of the amount of the adjustment made to each payment pursuant to this section.

Sec. 4. Minnesota Statutes 1995 Supplement, section 124.17, subdivision 1, is amended to read:

Subdivision 1. [PUPIL UNIT.] Pupil units for each resident pupil in average daily membership shall be counted according to this subdivision.

(a) A prekindergarten pupil with a disability who is enrolled in a program approved by the commissioner and has an individual education plan is counted as the ratio of the number of hours of assessment and education service to 825 with a minimum of 0.28, but not more than one.

(b) A prekindergarten pupil who is assessed but determined not to be handicapped is counted as the ratio of the number of hours of assessment service to 825.

(c) A kindergarten pupil with a disability who is enrolled in a program approved by the commissioner is counted as the ratio of the number of hours of assessment and education services required in the fiscal year by the pupil's individual education program plan to 875, but not more than one.

(d) A kindergarten pupil who is not included in paragraph (c) is counted as .53 of a pupil unit for fiscal year 1995 and thereafter.

(e) A pupil who is in any of grades 1 to 6 is counted as 1.06 pupil units for fiscal year 1995 and thereafter.

(f) For fiscal year 1996 and fiscal year 1997, a pupil who is in any of grades 7 to 12 is counted as 1.3 pupil units. For fiscal year 1998, a pupil who is in any of grades 7 to 12 is counted as 1.25 pupil units. For fiscal year 1999 and later years, a pupil who is in any of grades 7 to 12 is counted as 1.2 pupil units.

(g) For fiscal year 1996 and fiscal year 1997, a pupil who is in the post-secondary enrollment options program is counted as 1.3 pupil units. For fiscal year 1998, a pupil who is in the post-secondary enrollment options program is counted as 1.25 pupil units. For fiscal year 1999 and later years, a pupil who is in the post-secondary enrollment options program is counted as 1.2 pupil units.

(h) In fiscal year 1998, the sum of pupil units used in computing a district's general education revenue and referendum revenue may not be reduced by more than two percent due to the reduction in the secondary pupil weight from 1.3 as specified in paragraphs (f) and (g). In fiscal year 1999 and later years, the sum of pupil units used in computing a district's general education revenue and referendum revenue may not be decreased by more than four percent due to the reduction in the secondary weight from 1.3 as specified in paragraphs (f) and (g).

Sec. 5. Laws 1995, First Special Session chapter 3, article 14, section 5, is amended to read:

Sec. 5. [FISCAL YEAR 1998 AND 1999 APPROPRIATIONS.]

The appropriations for the 1998-99 biennium for programs contained in this act shall be $2,943,900,000 $2,968,536,000 for fiscal year 1998 and $3,076,600,000 $3,021,808,000 for fiscal year 1999, plus or minus any adjustments due to variance in pupil forecasts, levies, or other factors generating entitlements for the general revenue program. These amounts shall first be allocated to fully fund the general revenue program. Amounts remaining shall be allocated to other programs in proportion to the fiscal year 1997 appropriations or to entitlements generated by existing law for those programs for each year, up to the amount of the entitlement or the fiscal year 1997 appropriations. Any amounts remaining after allocation to these other programs shall be maintained for allocation recommendations by the governor and legislature in the 1997 session.

Sec. 6. [FISCAL YEAR 1997 PROPERTY TAX SHIFT ADJUSTMENT.]

(a) The commissioner of finance shall adjust the property tax recognition shift percent for fiscal year 1997 under Minnesota Statutes, section 121.904, subdivision 4a, according to this section. The commissioner of finance must certify to the commissioner of children, families, and learning the general levy recognition percentage by January 5, 1997. The commissioner of children, families, and learning must notify school districts of a change in the general levy recognition percentage by January 15, 1997. The general levy recognition percentage may not be reduced below zero.

(b) Money allocated for reducing the shift in fiscal year 1997 as a result of the November 1995 forecast of general fund revenues and expenditures is (1) increased or decreased by any change in the unrestricted budgetary balance at the close of the current biennium as determined by the commissioner of finance in a forecast of general fund revenues and expenditures issued in February 1996, and (2) decreased by any expenditures approved during the 1996 legislative session.

(c) The amounts necessary to meet the requirements of this section are appropriated from the general fund.

Sec. 7. [EFFECTIVE DATE.]

Sections 1, 2, 3, and 6 are effective the day following final enactment. Sections 4 and 5 are effective if a bill styled as H. F. No. 2345 does not become law."

Delete the title and insert:

"A bill for an act relating to education; prekindergarten through grade 12; providing for general education; transportation; special programs; community education; facilities; organization and cooperation; education excellence; other education programs and financing; education policy provisions; libraries; state agencies; technology; conforming amendments; budget reserve and cost management; appropriating money; amending Minnesota Statutes 1994, sections 120.06, subdivision 1; 120.08, subdivision 3; 120.101, by adding a subdivision; 120.17, subdivision 9; 120.1701, subdivision 10; 120.73, subdivision 1; 121.11, subdivision 15; 121.8355, subdivision 1; 121.906; 121.914, subdivision 1; 121.915; 122.32, subdivision 1; 122.535, subdivision 6; 122.895, subdivision 2; 123.35, subdivision 19a; 123.351, subdivision 10; 123.3514, subdivision 9; 123.37, subdivision 1a; 123.38, subdivisions 2 and 2b; 123.932, subdivisions 1b, 1c, 1e, and 11; 123.933, as amended; 123.935, subdivisions 2 and 7; 123.951; 124.09; 124.155, subdivision 1; 124.17, subdivision 1e, and by adding subdivisions; 124.19, subdivision 1; 124.195, subdivision 8; 124.239, subdivision 5, and by adding subdivisions; 124.2711, subdivision 6; 124.2713, subdivision 10; 124.273, by adding subdivisions; 124.311, subdivisions 2, 3, 5, and 7; 124.48, subdivision 3; 124.573, subdivisions 2e, 2f, and 3; 124.86, subdivision 1; 124.91, subdivision 1, and by adding a subdivision; 124.912, subdivision 6; 124.916, subdivision 4; 124A.02, subdivision 25; 124A.029, subdivision 4; 124A.03, subdivisions 2b, 3b, and by adding a subdivision; 124A.0311, subdivision 3; 124A.035, subdivision 4; 124A.036, by adding a subdivision; 124A.22, by adding a subdivision; 124A.26, subdivision 1; 125.05, subdivision 1a, and by adding a subdivision; 125.09, subdivision 4; 125.1385, subdivision 1; 125.185, subdivision 4; 125.60, subdivision 2; 125.611, subdivision 1; 126.151, subdivision 2; 127.29, subdivision 2; 134.34, by adding a subdivision; 136D.23, subdivision 1; 136D.83, subdivision 1; 144.4165; 169.4504, by adding a subdivision; and 256.736, subdivision 11; Minnesota Statutes 1995 Supplement, sections 13.46, subdivision 2; 43A.316, subdivision 2; 65B.132; 120.064, subdivisions 3 and 9; 120.1045; 120.17, subdivisions 3a, 3b, and 6; 120.1701, subdivision 20; 120.181; 120.74, subdivision 1; 121.11, subdivision 7c; 121.15, subdivision 1; 121.904, subdivisions 4a and 4c; 121.911, subdivision 5; 121.917, subdivision 4; 121.935, subdivision 1a; 123.3514, subdivisions 6 and 6b; 124.155, subdivision 2; 124.17, subdivisions 1 and 1d; 124.195, subdivision 12; 124.2131, subdivision 1; 124.223, subdivision 4; 124.225, subdivisions 8l, 14, 16, and 17; 124.227; 124.243, subdivision 2; 124.2445; 124.2455; 124.248, subdivisions 1, 1a, 2, and 3;

124.273, subdivisions 1c and 1d; 124.314, subdivision 2; 124.32, subdivision 12; 124.3201, subdivisions 1, 2, 3, and by adding subdivisions; 124.3202; 124.323, subdivisions 1 and 2; 124.574, subdivisions 2f and 2g; 124.71, subdivision 2; 124.912, subdivision 1; 124.961; 124A.0311, subdivision 2; 124A.22, subdivisions 2a, 10, and 13b; 124A.23, subdivision 4; 124C.74, subdivisions 2 and 3; 125.05, subdivision 1; 126.12, subdivision 2; 126.151, subdivision 1; 126.22, subdivisions 2 and 5; 126.70, subdivision 1; 134.46; 169.01, subdivision 6; 237.065; and 631.40, subdivision 1a; Laws 1993, chapter 224, article 1, section 34; article 12, sections 32, as amended; 39, as amended; and 41, as amended; Laws 1995, First Special Session chapter 3, article 1, sections 61; and 63; article 3, section 19, subdivision 15; article 4, section 29, subdivision 5; article 5, section 20, subdivisions 5 and 6; article 6, section 17, subdivisions 2, 4, and by adding subdivisions; article 8, sections 25, subdivision 2; and 27; article 11, sections 21, subdivision 2; 22; and 23; article 12, sections 8, subdivision 1; and 12, subdivision 7; article 14, section 5; and article 15, section 26, subdivisions 7 and 10; proposing coding for new law in Minnesota Statutes, chapters 120; 121; 123; 124; 124A; 124C; 125; and 136D; repealing Minnesota Statutes 1994, sections 124A.03, subdivision 3b; 124B.02; 124B.10; 124B.20, subdivisions 2 and 3; and 136D.75; Minnesota Statutes 1995 Supplement, sections 120.1045, subdivision 3; 124B.01; 124B.03; and 124B.20, subdivision 1; Minnesota Rules, parts 8700.7700; 8700.7710; 8750.9000; 8750.9100; 8750.9200; 8750.9300; 8750.9400; 8750.9500; 8750.9600; and 8750.9700."

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Taxes.

The report was adopted.

Anderson, R., from the Committee on Health and Human Services to which was referred:

H. F. No. 2158, A bill for an act relating to human services; clarifying foster care payment and placement; clarifying adoption assistance; amending Minnesota Statutes 1994, sections 256E.08, by adding a subdivision; 257.071, subdivision 1a, and by adding subdivisions; 257.072, subdivisions 1, 5, and 8; 257.0725; 259.67, subdivisions 4 and 6; and 259.77; Minnesota Statutes 1995 Supplement, section 256.045, subdivision 3; Laws 1995, chapter 207, article 1, section 2, subdivision 4.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1995 Supplement, section 256.045, subdivision 3, is amended to read:

Subd. 3. [STATE AGENCY HEARINGS.] (a) State agency hearings are available for the following: (1) any person applying for, receiving or having received public assistance or a program of social services granted by the state agency or a county agency under sections 252.32, 256.031 to 256.036, and 256.72 to 256.879, chapters 256B, 256D, 256E, 261, or the federal Food Stamp Act whose application for assistance is denied, not acted upon with reasonable promptness, or whose assistance is suspended, reduced, terminated, or claimed to have been incorrectly paid; (2) any patient or relative aggrieved by an order of the commissioner under section 252.27; (3) a party aggrieved by a ruling of a prepaid health plan; or (4) any individual or facility determined by a lead agency to have maltreated a vulnerable adult under section 626.557 after they have exercised their right to administrative reconsideration under section 626.557; (5) any person whose claim for foster care payment pursuant to a placement of the child resulting from a child protection assessment under section 626.556 is denied or not acted upon with reasonable promptness, regardless of funding source; or (6) any person to whom a right of appeal pursuant to this section is given by other provision of law. Individuals and organizations specified in this section may contest the specified action, decision, or final disposition before the state agency by submitting a written request for a hearing to the state agency within 30 days after receiving written notice of the action, decision, or final disposition, or within 90 days of such written notice if the applicant, recipient, patient, or relative shows good cause why the request was not submitted within the 30-day time limit.

The hearing for an individual or facility under clause (4) is the only administrative appeal to the final lead agency disposition specifically, including a challenge to the accuracy and completeness of data under section 13.04.

For purposes of this section, bargaining unit grievance procedures are not an administrative appeal.

The scope of hearings involving claims to foster care payments under clause (5) shall be limited to the issue of whether the county is legally responsible for a child's placement under court order or voluntary placement agreement and, if so, the correct amount of foster care payment to be made on the child's behalf and shall not include review of the propriety of the county's child protection determination or child placement decision.

(b) Except for a prepaid health plan, a vendor of medical care as defined in section 256B.02, subdivision 7, or a vendor under contract with a county agency to provide social services under section 256E.08, subdivision 4, is not a party and may not request a hearing under this section, except if assisting a recipient as provided in subdivision 4.

(c) An applicant or recipient is not entitled to receive social services beyond the services included in the amended community social services plan developed under section 256E.081, subdivision 3, if the county agency has met the requirements in section 256E.081.

Sec. 2. Minnesota Statutes 1994, section 256.82, is amended by adding a subdivision to read:

Subd. 1a. [DEFINITIONS.] For purposes of this section, "treatment foster care program" means a foster care program that utilizes a family-based service delivery approach to provide individualized treatment for children, youth, and their families. The individualized treatment is delivered through an integrated constellation of services, with key interventions and supports provided by treatment foster parents who are trained, supervised, and supported by qualified program staff.

Sec. 3. Minnesota Statutes 1994, section 256.82, is amended by adding a subdivision to read:

Subd. 5. [PRIVATE AGENCY CONTRACTS.] Notwithstanding any other provisions of this section, rates for treatment foster care programs of licensed child-caring or child-placing agencies are a matter of contract between the licensed child-caring or child-placing agency and the local service agency.

Sec. 4. Minnesota Statutes 1994, section 256E.08, is amended by adding a subdivision to read:

Subd. 11. [USE OF COMMUNITY SOCIAL SERVICES FUNDS FOR FOSTER CARE.] If foster care services are described in a county's community social services plan, the county may use funds from its community social services fund to provide foster care benefits on behalf of children for whom the county has legal placement responsibility pursuant to court order or voluntary placement agreement.

Sec. 5. Minnesota Statutes 1994, section 257.071, subdivision 1a, is amended to read:

Subd. 1a. [PROTECTION OF HERITAGE OR BACKGROUND.] The authorized child-placing agency shall ensure that the child's best interests are met by giving due, not sole, consideration of the child's race or ethnic heritage in making a family foster care placement. The authorized child-placing agency shall place a child, released by court order or by voluntary release by the parent or parents, in a family foster home selected by following the preferences described in section 260.181, subdivision 3. Where there is not a family foster home of the same race or ethnic heritage available that can meet the needs of the child, the agency must place the child in a home of a foster family that is of a different racial or ethnic background. Placement of a child cannot be delayed or denied based solely on race.

In instances where a child from a family of color is placed in a family foster home of a different racial or ethnic background, the local social service agency shall review the placement after 30 days and each 30 days thereafter for the first six months to determine if there is another available placement that would better satisfy the requirements of this subdivision.

Sec. 6. Minnesota Statutes 1994, section 257.071, is amended by adding a subdivision to read:

Subd. 9. [FAIR HEARING REVIEW.] Any person whose claim for foster care payment pursuant to the placement of a child resulting from a child protection assessment under section 626.556 is denied or not acted upon with reasonable promptness may appeal the decision under section 256.045, subdivision 3. The application and fair hearing procedures set forth in the administration of community social services rule, Minnesota Rules, parts 9550.0070 to 9550.0092, do not apply to foster care payment issues appealable under this subdivision.

Sec. 7. Minnesota Statutes 1994, section 257.071, is amended by adding a subdivision to read:

Subd. 10. [RULES; FOSTER CARE FAIR HEARINGS.] The commissioner shall review and, where necessary, revise foster care rules to ensure that the rules provide adequate guidance for implementation of foster care fair hearings, pursuant to section 256.045, subdivision 3, clause (5), that comply with all applicable federal requirements and the requirements of section 256.045.

Sec. 8. Minnesota Statutes 1994, section 257.072, subdivision 1, is amended to read:

Subdivision 1. [RECRUITMENT OF FOSTER FAMILIES.] Each authorized child-placing agency shall make special efforts to recruit a foster family from among the child's relatives, except as authorized in section 260.181, subdivision 3, and among families of the same racial or ethnic heritage. Each agency shall provide for diligent recruitment of potential foster families that reflect the ethnic and racial diversity of the children in the state for whom foster homes are needed. Special efforts include contacting and working with community organizations and religious organizations and may include contracting with these organizations, utilizing local media and other local resources, conducting outreach activities, and increasing the number of minority recruitment staff employed by the agency. The requirement of special efforts to locate relatives in this section is satisfied if the responsible child-placing agency has made appropriate efforts for six months following the child's placement in a residential facility and the court approves the agency's efforts pursuant to section 260.191, subdivision 3a. The agency may accept any gifts, grants, offers of services, and other contributions to use in making special recruitment efforts.

Sec. 9. Minnesota Statutes 1994, section 257.072, subdivision 5, is amended to read:

Subd. 5. [MINORITY PLACEMENTS.] Beginning December 1, 1989 1996, the commissioner shall provide to the Indian affairs council, the council on affairs of Spanish-speaking people, the council on Black Minnesotans, and the council on Asian-Pacific Minnesotans the semiannual reports annual report required under section 257.0725.

Sec. 10. Minnesota Statutes 1994, section 257.072, subdivision 8, is amended to read:

Subd. 8. [REPORTING REQUIREMENTS.] Each authorized child-placing agency shall provide to the commissioner of human services all data needed by the commissioner for the report required by section 257.0725. The agency shall provide the data within 60 15 days of the end of the six-month period for which the data is applicable.

Sec. 11. Minnesota Statutes 1994, section 257.0725, is amended to read:

257.0725 [SEMIANNUAL ANNUAL REPORT.]

The commissioner of human services shall publish a semiannual an annual report on children in out-of-home placement. The report shall include, by county and statewide, information on legal status, living arrangement, age, sex, race, accumulated length of time in placement, reason for most recent placement, race of family with whom placed, number of families from the child's own culture in the placement pool during the period for which data is provided, and other demographic information deemed appropriate on all children in out-of-home placement. The commissioner shall provide the required data for children who entered placement during the previous quarter and for children who are in placement at the end of the quarter. Out-of-home placement includes placement in any facility by an authorized child-placing agency. By December 1, 1989, and by December 1 of each successive year, the commissioner shall publish a report covering the first six months of the calendar year. By June 1, 1990, and by June 1 of each successive year, the commissioner shall publish a report covering the last six months of the calendar year.

Sec. 12. Minnesota Statutes 1994, section 259.29, is amended to read:

259.29 [PROTECTION OF HERITAGE OR BACKGROUND.]

The policy of the state of Minnesota is to ensure that the best interests of the child are met by requiring due, not sole, consideration of the child's race or ethnic heritage in adoption placements. For purposes of intercountry adoptions, due consideration is deemed to have occurred if the appropriate authority in the child's country of birth has approved the placement of the child.

The authorized child-placing agency shall give preference, in the absence of good cause to the contrary, to placing the child with (a) a relative or relatives of the child, or, if that would be detrimental to the child or a relative is not available, (b) an important friend with whom the child has resided or had significant contact, or if that is not possible, (c) a family with the same racial or ethnic heritage as the child, or, if that is not feasible, (c) (d) a family of different racial or ethnic heritage from the child which is knowledgeable and appreciative of the child's racial or ethnic heritage. In implementing the order of preference, an authorized child-placing agency may disclose private or confidential data, as defined in section 13.02, to relatives of the child for the purpose of locating a suitable adoptive home. The agency shall disclose only data that is necessary to facilitate implementing the preference.

If the child's birth parent or parents explicitly request that the preference described in clause (a) or clauses (a) and, (b), or (c) not be followed, the authorized child-placing agency shall honor that request consistent with the best interests of the child.

If the child's birth parent or parents express a preference for placing the child in an adoptive home of the same or a similar religious background to that of the birth parent or parents, in following the preferences in clause (a) or, (b), or (c), the agency shall place the child with a family that also meets the birth parent's religious preference. Only if no family is available that is described in clause (a) or, (b), or (c) may the agency give preference to a family described in clause (c) (d) that meets the parent's religious preference.

Sec. 13. Minnesota Statutes 1994, section 259.67, subdivision 4, is amended to read:

Subd. 4. [ELIGIBILITY CONDITIONS.] (a) The placing agency shall determine the child's eligibility for adoption assistance under title IV-E of the Social Security Act. If the child does not qualify, the placing agency shall certify a child as eligible for state funded adoption assistance only if the following criteria are met:

(a) (1) Due to the child's characteristics or circumstances it would be difficult to provide the child and an adoptive home without adoption assistance.

(b)(1) (2)(i) A placement agency has made reasonable efforts to place the child for adoption without subsidy adoption assistance, but has been unsuccessful; or

(2) (ii) the child's licensed foster parents desire to adopt the child and it is determined by the placing agency that the adoption is in the best interest of the child.

(c) (3) The child has been a ward of the commissioner or a Minnesota-licensed child-placing agency.

(b) For purposes of this subdivision, the characteristics or circumstances that may be considered in determining whether a child is a child with special needs under United States Code, title 42, chapter 7, subchapter IV, part E, or meets the requirements of paragraph (a), clause (1), are the following:

(1) The child is a member of a sibling group to be placed as one unit in which at least one sibling is older than 15 months of age or is described in clause (2) or (3).

(2) The child has documented physical, mental, emotional, or behavioral disabilities.

(3) The child has a high risk of developing physical, mental, emotional, or behavioral disabilities.

(c) When a child's eligibility for adoption assistance is based upon the high risk of developing physical, mental, emotional, or behavioral disabilities, payments shall not be made under the adoption assistance agreement unless and until the potential disability manifests itself as documented by an appropriate health care professional.

Sec. 14. Minnesota Statutes 1994, section 259.67, subdivision 6, is amended to read:

Subd. 6. [RIGHT OF APPEAL.] (a) The adoptive parents have the right to appeal to the commissioner pursuant to section 256.045, when the commissioner denies, discontinues, or modifies the agreement.

(b) Adoptive parents who believe that their adopted child was incorrectly denied adoption assistance, or who did not seek adoption assistance on the child's behalf because of being provided with inaccurate or insufficient information about the child or the adoption assistance program, may request a hearing under section 256.045. Notwithstanding subdivision 2, the purpose of the hearing shall be to determine whether, under standards established by the federal Department of Health and Human Services, the circumstances surrounding the child's adoption warrant making an adoption assistance agreement on behalf of the child after the final decree of adoption has been issued. The commissioner shall enter into an adoption assistance agreement on the child's behalf if it is determined that the child was eligible for adoption assistance under United States Code, title 42, chapter 7, subchapter IV, part E, sections 670 to 679a, at the time of the adoption and at the time the request for a hearing was submitted but, because of extenuating circumstances, did not receive adoption assistance. An adoption assistance agreement made under this paragraph shall be effective the date the request for a hearing was received by the commissioner or the local agency.

Sec. 15. Minnesota Statutes 1994, section 259.77, is amended to read:

259.77 [FAMILY RECRUITMENT.]

Each authorized child-placing agency shall make special efforts to recruit an adoptive family from among the child's relatives, except as authorized in section 259.57, subdivision 2, and among families of the same racial or ethnic heritage. Each agency shall provide for the diligent recruitment of potential adoptive families that reflect the ethnic

and racial diversity of children in the state for whom adoptive homes are needed. Special efforts include contacting and working with community organizations and religious organizations and may include contracting with these organizations, utilizing local media and other local resources, and conducting outreach activities. The requirement of special efforts to locate relatives in this section is satisfied if the efforts have continued for six months after the child becomes available for adoption or if special efforts have been satisfied and approved by the court pursuant to section 260.191, subdivision 3a. The agency may accept any gifts, grants, offers of services, and other contributions to use in making special recruitment efforts.

Sec. 16. Minnesota Statutes 1994, section 260.015, is amended by adding a subdivision to read:

Subd. 29. [EGREGIOUS HARM.] "Egregious harm" means the infliction of bodily harm to a child or neglect of a child which demonstrates a grossly inadequate ability to provide minimally adequate parental care. The egregious harm need not have occurred in the state or in the county where a termination of parental rights action is otherwise properly venued. Egregious harm includes, but is not limited to:

(1) conduct towards a child that constitutes a violation of section 609.185 to 609.21, or any other similar law of the United States or any other state;

(2) the infliction of "great bodily harm" to a child, as defined in section 609.02, subdivision 8;

(3) conduct towards a child that constitutes felony malicious punishment of a child under section 609.377; or

(4) conduct towards a child that constitutes unreasonable restraint of a child under section 609.255, subdivision 3.

Sec. 17. Minnesota Statutes 1994, section 260.181, subdivision 3, is amended to read:

Subd. 3. [PROTECTION OF HERITAGE OR BACKGROUND.] The policy of the state is to ensure that the best interests of children are met by requiring due, not sole, consideration of the child's race or ethnic heritage in foster care placements.

The court, in transferring legal custody of any child or appointing a guardian for the child under the laws relating to juvenile courts, shall place the child, in the following order of preference, in the absence of good cause to the contrary, in the legal custody or guardianship of an individual who (a) is the child's relative related to the child by blood, marriage, or adoption, or if that would be detrimental to the child or a relative is not available, who (b) is an important friend with whom the child has resided or had significant contact, or if that is not possible, who (c) is of the same racial or ethnic heritage as the child, or if that is not possible, who (c) (d) is knowledgeable and appreciative of the child's racial or ethnic heritage. The court may require the county welfare agency to continue efforts to find a guardian of the child's racial or ethnic heritage when such a guardian is not immediately available. For purposes of this subdivision, "relative" includes members of a child's extended family and important friends with whom the child has resided or had significant contact.

If the child's birth parent or parents explicitly request that the preference described in clause (a) or in clauses (a) and, (b), or (c) not be followed, the court shall honor that request if it is consistent with the best interests of the child.

If the child's birth parent or parents express a preference for placing the child in a foster or adoptive home of the same or a similar religious background to that of the birth parent or parents, in following the preferences in clause (a) or, (b), or (c), the court shall order placement of the child with an individual who meets the birth parent's religious preference. Only if no individual is available who is described in clause (a) or, (b), or (c) may the court give preference to an individual described in clause (c) (d) who meets the parent's religious preference.

Sec. 18. Minnesota Statutes 1995 Supplement, section 260.221, subdivision 1, is amended to read:

Subdivision 1. [VOLUNTARY AND INVOLUNTARY.] The juvenile court may upon petition, terminate all rights of a parent to a child in the following cases:

(a) With the written consent of a parent who for good cause desires to terminate parental rights; or

(b) If it finds that one or more of the following conditions exist:

(1) That the parent has abandoned the child. Abandonment is presumed when:

(i) the parent has had no contact with the child on a regular basis and no demonstrated, consistent interest in the child's well-being for six months; and

(ii) the social service agency has made reasonable efforts to facilitate contact, unless the parent establishes that an extreme financial or physical hardship or treatment for mental disability or chemical dependency or other good cause prevented the parent from making contact with the child. This presumption does not apply to children whose custody has been determined under chapter 257 or 518. The court is not prohibited from finding abandonment in the absence of this presumption; or

(2) That the parent has substantially, continuously, or repeatedly refused or neglected to comply with the duties imposed upon that parent by the parent and child relationship, including but not limited to providing the child with necessary food, clothing, shelter, education, and other care and control necessary for the child's physical, mental, or emotional health and development, if the parent is physically and financially able, and reasonable efforts by the social service agency have failed to correct the conditions that formed the basis of the petition; or

(3) That a parent has been ordered to contribute to the support of the child or financially aid in the child's birth and has continuously failed to do so without good cause. This clause shall not be construed to state a grounds for termination of parental rights of a noncustodial parent if that parent has not been ordered to or cannot financially contribute to the support of the child or aid in the child's birth; or

(4) That a parent is palpably unfit to be a party to the parent and child relationship because of a consistent pattern of specific conduct before the child or of specific conditions directly relating to the parent and child relationship either of which are determined by the court to be of a duration or nature that renders the parent unable, for the reasonably foreseeable future, to care appropriately for the ongoing physical, mental, or emotional needs of the child. It is presumed that a parent is palpably unfit to be a party to the parent and child relationship upon a showing that:

(i) the child was adjudicated in need of protection or services due to circumstances described in section 260.015, subdivision 2a, clause (1), (2), (3), (5), or (8); and

(ii) within the three-year period immediately prior to that adjudication, the parent's parental rights to one or more other children were involuntarily terminated under clause (1), (2), (4), or (7), or under clause (5) if the child was initially determined to be in need of protection or services due to circumstances described in section 260.015, subdivision 2a, clause (1), (2), (3), (5), or (8); or

(5) That following upon a determination of neglect or dependency, or of a child's need for protection or services, reasonable efforts, under the direction of the court, have failed to correct the conditions leading to the determination. It is presumed that reasonable efforts under this clause have failed upon a showing that:

(i) a child has resided out of the parental home under court order for more than one year following an adjudication of dependency, neglect, need for protection or services under section 260.015, subdivision 2a, clause (1), (2), (3), (6), (8), or (9), or neglected and in foster care, and an order for disposition under section 260.191, including adoption of the case plan required by section 257.071;

(ii) conditions leading to the determination will not be corrected within the reasonably foreseeable future. It is presumed that conditions leading to a child's out-of-home placement will not be corrected in the reasonably foreseeable future upon a showing that the parent or parents have not substantially complied with the court's orders and a reasonable case plan, and the conditions which led to the out-of-home placement have not been corrected; and

(iii) reasonable efforts have been made by the social service agency to rehabilitate the parent and reunite the family.

This clause does not prohibit the termination of parental rights prior to one year after a child has been placed out of the home.

It is also presumed that reasonable efforts have failed under this clause upon a showing that:

(i) the parent has been diagnosed as chemically dependent by a professional certified to make the diagnosis;

(ii) the parent has been required by a case plan to participate in a chemical dependency treatment program;

(iii) the treatment programs offered to the parent were culturally, linguistically, and clinically appropriate;

(iv) the parent has either failed two or more times to successfully complete a treatment program or has refused at two or more separate meetings with a caseworker to participate in a treatment program; and

(v) the parent continues to abuse chemicals.

Provided, that this presumption applies only to parents required by a case plan to participate in a chemical dependency treatment program on or after July 1, 1990; or

(6) That the parent has been convicted of causing the death of another of the parent's children a child has experienced egregious harm in the parent's care which is of a nature, duration, or chronicity that indicates a lack of regard for the child's well-being, such that a reasonable person would believe it contrary to the best interest of the child or of any child to be in the parent's care; or

(7) That in the case of a child born to a mother who was not married to the child's father when the child was conceived nor when the child was born the person is not entitled to notice of an adoption hearing under section 259.49 and either the person has not filed a notice of intent to retain parental rights under section 259.51 or that the notice has been successfully challenged; or

(8) That the child is neglected and in foster care.

In an action involving an American Indian child, sections 257.35 to 257.3579 and the Indian Child Welfare Act, United States Code, title 25, sections 1901 to 1923, control to the extent that the provisions of this section are inconsistent with those laws.

Sec. 19. Minnesota Statutes 1994, section 260.221, is amended by adding a subdivision to read:

Subd. 6. [NO REQUIREMENT FOR REASONABLE EFFORTS.] Upon filing a termination of parental rights petition and notice to the parties, the social service agency responsible for making reasonable efforts under sections 260.011 and 260.012 may discontinue the provision of services that are aimed at returning the child to the parent. The discontinuation of these reunification services shall be approved by the court, unless the parent establishes a substantial likelihood that the provision of additional services would likely correct the conditions which form the basis for the petition to terminate parental rights within six months of the date the petition is filed.

Sec. 20. [EFFECTIVE DATE.]

Sections 1, 4 to 11, and 13 to 15, are effective the day following final enactment."

Delete the title and insert

"A bill for an act relating to human services; modifying foster care payment and placement; clarifying adoption assistance; amending Minnesota Statutes 1994, sections 256.82, by adding subdivisions; 256E.08, by adding a subdivision; 257.071, subdivision 1a, and by adding subdivisions; 257.072, subdivisions 1, 5, and 8; 257.0725; 259.29; 259.67, subdivisions 4 and 6; 259.77; 260.015, by adding a subdivision; 260.181, subdivision 3; and 260.221, by adding a subdivision; Minnesota Statutes 1995 Supplement, sections 256.045, subdivision 3; and 260.221, subdivision 1."

With the recommendation that when so amended the bill pass.

The report was adopted.

Pursuant to Senate Concurrent Resolution No. 12, H. F. No. 2158 was re-referred to the Committee on Rules and Legislative Administration.

Kahn from the Committee on Governmental Operations to which was referred:

H. F. No. 2176, A bill for an act relating to gambling; allowing a class B licensee of a class A racetrack conducting horse racing to conduct card club activities; amending Minnesota Statutes 1994, sections 240.01, by adding subdivisions; 240.03; 240.15, subdivision 1; 541.20; 541.21; and 609.761, by adding a subdivision; Minnesota Statutes 1995 Supplement, section 240.23; proposing coding for new law in Minnesota Statutes, chapter 240.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1994, section 240.01, is amended by adding a subdivision to read:

Subd. 24. [CARD CLUB.] "Card club" means a facility or portion of a facility where the commission has authorized a licensee to conduct card playing.

Sec. 2. Minnesota Statutes 1994, section 240.01, is amended by adding a subdivision to read:

Subd. 25. [CARD PLAYING.] "Card playing" means an activity wherein individuals compete and wager with each other utilizing a 52-unit system comprised of a series of numbers, numbered 2 through 10, and the letters J, Q, K, and A, combined with four symbols commonly known as hearts, diamonds, spades, and clubs, wherein each individual unit constitutes the display of one of the 52 possible combinations. The symbol commonly known as a joker may be incorporated into the system.

Sec. 3. Minnesota Statutes 1994, section 240.01, is amended by adding a subdivision to read:

Subd. 26. [UNBANKED.] "Unbanked" means a wagering system or game where the individual participants compete against each other and not against the sponsor or house. In an unbanked system or game, the sponsor or house may deduct a percentage from the accumulated wagers and impose other charges for hosting the activity, but it shall not have an interest in the outcome of any game. The sponsor or house may add additional prizes, awards, or money to any game for promotional purposes.

Sec. 4. Minnesota Statutes 1994, section 240.02, subdivision 1, is amended to read:

Subdivision 1. [COMMISSION.] A Minnesota racing commission is established with the powers and duties specified in this section. The commission consists of nine members appointed by the governor with the advice and consent of the senate, one member of the house of representatives appointed by the speaker, and one senator appointed by the senate committee on rules and administration. Not more than five of the members appointed by the governor may belong to the same political party. The governor shall designate the chair of the commission. Appointments by the governor are for terms of six years. An appointment to fill a vacancy in an unexpired term is for the remainder of the term and is with the advice and consent of the senate.

Sec. 5. Minnesota Statutes 1994, section 240.02, subdivision 2, is amended to read:

Subd. 2. [QUALIFICATIONS.] A member of the commission appointed by the governor must have been a resident of Minnesota for at least five years before appointment, and must have a background and experience as would qualify for membership on the commission. A member appointed by the governor must, before taking a place on the commission, file a bond in the principal sum of $100,000 payable to the state, conditioned upon the faithful performance of duties. No commissioner, nor any member of the commissioner's immediate family residing in the same household, may hold a license issued by the commission or have a direct or indirect financial interest in a corporation, partnership, or association which holds a license issued by the commission.

Sec. 6. Minnesota Statutes 1994, section 240.02, subdivision 3, is amended to read:

Subd. 3. [COMPENSATION.] The compensation of commission members appointed by the governor for each day spent on commission activities, when authorized by the commission, shall be the same as compensation provided for other members of boards and commissions under section 15.0575, subdivision 3, plus expenses in the same manner and amount as provided in the commissioner's plan adopted according to section 43A.18, subdivision 2.

Sec. 7. Minnesota Statutes 1994, section 240.02, subdivision 4, is amended to read:

Subd. 4. [REMOVAL; VACANCIES.] The removal of commission members appointed by the governor is as provided in section 15.0575. Other members serve at the pleasure of the appointing authority.

Sec. 8. Minnesota Statutes 1994, section 240.08, subdivision 1, is amended to read:

Subdivision 1. [AUTHORITY.] The commission may issue class C occupational licenses to persons who wish to be employed in horse racing where pari-mutuel betting is conducted as:

(a) horse owners or lessees;

(b) jockeys or drivers;

(c) exercise riders;

(d) grooms;

(e) trainers and their assistants;

(f) pari-mutuel personnel;

(g) security officers;

(h) other occupations, including occupations related to card clubs, the commission by rule determines require licensing to ensure the integrity of horse racing in Minnesota.

Sec. 9. Minnesota Statutes 1994, section 240.08, subdivision 3, is amended to read:

Subd. 3. [INVESTIGATIONS.] The commission shall investigate each applicant for a class C license to the extent it deems necessary, and may request the assistance of and may reimburse the division of gambling enforcement in investigating applicants. The commission may by rule require that an applicant be fingerprinted or furnish the applicant's fingerprints. Investigations must be conducted and their costs paid in the manner prescribed by section 240.06, subdivision 3. The commission may charge an applicant an investigation fee to cover the cost of the investigation, and shall from this fee reimburse the division of gambling enforcement for its share of the cost of the investigation. The commission may cooperate with national and international organizations and agencies in conducting investigations. The commission may by rule provide for examining the qualifications of an applicant for the license being applied for. The commission has access to all criminal history data compiled by the division of gambling enforcement on class C applicants and licensees.

Sec. 10. [240.135] [CARD CLUB REVENUE.]

From the amounts derived from charges authorized under section 12, subdivision 4, the licensee shall set aside the amounts specified in this section to be used for purse payments or to be deposited in the breeders fund. These amounts are in addition to the breeders fund and purse requirements set forth elsewhere in this chapter.

(a) For the first $3,000,000 deducted by the licensee in any year, the licensee shall set aside six percent to be used as purses.

(b) For amounts between $3,000,000 and $6,000,000, the licensee shall set aside ten percent to be used as purses.

(c) For amounts in excess of $6,000,000, the licensee shall set aside 14 percent to be used as purses.

(d) From all amounts deducted, the licensee shall set aside one percent to be deposited in the breeders fund. The licensee and the horseperson's organization representing the majority of horsepersons who raced in the most recent race meet held at the racetrack may negotiate percentages different from those stated herein, provided that such agreement is in writing and filed with the racing commission.

Sec. 11. [240.231] [CARD CLUBS; RULES.]

(a) The commission, in cooperation with the attorney general, shall make rules governing the operation of card clubs at licensed racetracks and the conduct of card playing at such clubs. The rules must designate those occupations at card clubs that require licensing from the commission under section 240.08.

(b) Rules adopted under paragraph (a) must provide that:

(1) the maximum number of tables used for card playing at a card club at any one time may not exceed 50;

(2) the opening wager by any player in any card game may not exceed $10; and

(3) no single wager that increases the total amount staked in any card game may exceed $25.

Sec. 12. [240.30] [CARD CLUBS.]

Subdivision 1. [AUTHORIZATION.] The commission may authorize a class B operator of a class A racetrack to operate a card club and offer card playing services to patrons.

Subd. 2. [SUPERVISION.] The authorized licensee is responsible for conducting and supervising the card games and for providing all necessary equipment, services, and personnel. The licensee must provide all cards and chips used in card games. No person other than an employee of a licensee may deal cards in a card game.

Subd. 3. [TYPE OF WAGERING.] All card club wagering activities must be conducted in an unbanked system.

Subd. 4. [CHARGES.] The authorized licensee shall be allowed to charge patrons for card playing services by deducting and retaining money from wagers, by charging a fee based on playing time, or by any other means authorized by the commission.

Subd. 5. [LIMITATION.] The commission shall not allow a licensee to operate a card club unless the licensee has conducted at least 50 days of live racing at a class A facility within the past 12 months or during the preceding calendar year.

Subd. 6. [OFF-TRACK WAGERING.] The authority granted under this section expires on the effective date of any law that authorizes pari-mutuel wagering on horse racing at any location other than a licensed racetrack.

Sec. 13. Minnesota Statutes 1994, section 299L.02, subdivision 3, is amended to read:

Subd. 3. [HORSE RACING INVESTIGATIONS.] (a) The director shall conduct background investigations as provided by law on all applicants for licenses issued by the Minnesota racing commission.

(b) The director shall, upon request of the director of the racing commission, or when the director believes it to be reasonable and necessary, investigate the activities of a licensee of the Minnesota racing commission to determine the licensee's compliance with law and with rules of the commission, including rules relating to card clubs at licensed racetracks. The director shall enforce all laws and rules relating to card clubs at licensed racetracks.

Sec. 14. Minnesota Statutes 1994, section 541.20, is amended to read:

541.20 [RECOVERY OF MONEY LOST.]

Every person who, by playing at cards, dice, or other game, or by betting on the hands or sides of such as are gambling, shall lose to any person so playing or betting any sum of money or any goods, and pays or delivers the same, or any part thereof, to the winner, may sue for and recover such money by a civil action, before any court of competent jurisdiction. For purposes of this section, gambling shall not include pari-mutuel wagering or card club wagering conducted under a license issued pursuant to chapter 240, purchase or sale of tickets in the state lottery, or gambling authorized under chapters 349 and 349A.

Sec. 15. Minnesota Statutes 1994, section 541.21, is amended to read:

541.21 [COMMITMENTS FOR GAMBLING DEBT VOID.]

Every note, bill, bond, mortgage, or other security or conveyance in which the whole or any part of the consideration shall be for any money or goods won by gambling or playing at cards, dice, or any other game whatever, or by betting on the sides or hands of any person gambling, or for reimbursing or repaying any money knowingly lent or advanced at the time and place of such gambling or betting, or lent and advanced for any gambling or betting to any persons so gambling or betting, shall be void and of no effect as between the parties to the same, and as to all persons except such as hold or claim under them in good faith, without notice of the illegality of the consideration of such contract or conveyance. The provisions of this section shall not apply to: (1) pari-mutuel wagering or card club wagering conducted under a license issued pursuant to chapter 240; (2) purchase of tickets in the state lottery under chapter 349A; (3) gaming activities conducted pursuant to the Indian Gaming Regulatory Act, 25 U.S.C. 2701 et seq.; or (4) lawful gambling activities permitted under chapter 349.

Sec. 16. [RULES; REPORT.]

(a) Rules adopted by the Minnesota racing commission under section 11 may not take effect before March 1, 1997.

(b) The Minnesota racing commission shall by January 1, 1997, report to the governor and governmental operations committees in the house of representatives and the senate on its proposed rules under section 11.

Sec. 17. [EFFECTIVE DATE.]

Sections 1 to 16 are effective the day following final enactment."

Delete the title and insert:

"A bill for an act relating to gambling; allowing a class B licensee of a class A racetrack conducting horse racing to conduct card club activities; changing the membership of the Minnesota racing commission; requiring a report; providing appointments; amending Minnesota Statutes 1994, sections 240.01, by adding subdivisions; 240.02, subdivisions 1, 2, 3, and 4; 240.08, subdivisions 1 and 3; 299L.02, subdivision 3; 541.20; and 541.21; proposing coding for new law in Minnesota Statutes, chapter 240."

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Taxes.

The report was adopted.

Rice from the Committee on Economic Development, Infrastructure and Regulation Finance to which was referred:

H. F. No. 2193, A bill for an act relating to state councils; changing provisions governing the Indian affairs council, the councils on Black Minnesotans and Asian-Pacific Minnesotans, and the council on affairs of Spanish-speaking people; amending Minnesota Statutes 1994, sections 3.922, subdivisions 3 and 8; 3.9223; 3.9225, subdivision 1; and 3.9226, subdivisions 1, 2, 3, and 5.

Reported the same back with the following amendments:

Page 7, line 34, delete "and"

Page 8, line 1, reinstate the stricken "; and"

Page 8, line 2, reinstate the stricken "(14)"

Page 8, line 7, before the period, insert "assist recent immigrants in adaptation into the culture and promote the study of English as a second language"

With the recommendation that when so amended the bill pass.

The report was adopted.

Brown from the Committee on Environment and Natural Resources Finance to which was referred:

H. F. No. 2259, A bill for an act relating to the environment; modifying provisions relating to the management of waste; amending Minnesota Statutes 1994, sections 115A.03, by adding a subdivision; 115A.916; 115A.93, subdivision 3; 115A.9301, by adding a subdivision; and 115A.965, subdivision 3; Minnesota Statutes 1995 Supplement, sections 115A.072, subdivision 1; 115A.965, subdivision 1; and 115A.981, subdivision 3; repealing Minnesota Statutes 1994, section 115A.913, subdivision 5.

Reported the same back with the following amendments:

Page 9, line 26, before the period, insert ", the finance division of the senate committee on environment and natural resources, and the house of representatives committee on environment and natural resources finance"

With the recommendation that when so amended the bill pass.

The report was adopted.

Brown from the Committee on Environment and Natural Resources Finance to which was referred:

H. F. No. 2295, A bill for an act relating to the environment; temporarily excepting pavement markers from the prohibition on the use of lead in paint; providing for a reduction in the pollution control agency's base operating budget for failing to meet the agency's goal of reducing pollution in the state; amending Minnesota Statutes 1994, section 115A.9651, subdivision 1; Minnesota Statutes 1995 Supplement, section 116.011.

Reported the same back with the recommendation that the bill pass and be re-referred to the Committee on Ways and Means.

The report was adopted.

Skoglund from the Committee on Judiciary to which was referred:

H. F. No. 2303, A bill for an act relating to health and human services; reconciling various provisions on criminal history background checks; amending Minnesota Statutes 1994, section 144A.46, subdivision 5; Minnesota Statutes 1995 Supplement, sections 144.057, subdivisions 1, 3, and 4; 245A.04, subdivision 3; 299C.67, subdivision 5; 299C.68, subdivisions 2, 5, and 6; 609.2325, subdivision 3; and Laws 1995, chapter 229, article 3, section 17.

Reported the same back with the recommendation that the bill pass and be re-referred to the Committee on Ways and Means.

The report was adopted.

Tunheim from the Committee on Transportation and Transit to which was referred:

H. F. No. 2322, A bill for an act relating to motor carriers; authorizing the transportation regulation board to issue charter carrier permits for operation within a single city; amending Minnesota Statutes 1994, section 221.121, by adding a subdivision.

Reported the same back with the following amendments:

Page 1, line 11, after "service" insert "using trolley-type vehicles"

Page 1, line 12, delete "a single city" and insert "the city of St. Paul"

Page 1, line 13, after "carrier" insert "using trolley-type vehicles" and delete "that" and insert "the"

Page 1, delete line 21, and insert "city of St. Paul."

Amend the title as follows:

Page 1, line 4, delete "a single city" and insert "the city of St. Paul"

With the recommendation that when so amended the bill pass.

The report was adopted.

Skoglund from the Committee on Judiciary to which was referred:

H. F. No. 2325, A bill for an act relating to criminal justice; requiring mandatory minimum penalties for repeat domestic assault offenders; proposing coding for new law in Minnesota Statutes, chapter 609.

Reported the same back with the following amendments:

Page 1, delete lines 14 to 25

Page 2, delete lines 1 and 2, and insert:

"Subd. 2. [FELONY.] (a) Except as otherwise provided in paragraph (b), in determining an appropriate disposition for felony domestic assault under section 609.2242, subdivision 4, the court shall presume that a stay of execution with at least a 45-day period of incarceration as a condition of probation shall be imposed. If the court imposes a stay of execution with a period of incarceration as a condition of probation, at least 15 days must be served consecutively.

(b) If the defendant's criminal history score, determined according to the sentencing guidelines, indicates a presumptive executed sentence, that sentence shall be imposed unless the court departs from the sentencing guidelines pursuant to section 244.10. A stay of imposition of sentence under this paragraph may be granted only if accompanied by a statement on the record of the reasons for it."

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Judiciary Finance.

The report was adopted.

Trimble from the Committee on Regulated Industries and Energy to which was referred:

H. F. No. 2336, A bill for an act relating to electric utilities; allowing the city of Willmar to enter into a joint venture with the Kandiyohi cooperative electric power association for the provision of electric power.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [JOINT VENTURE.]

Subdivision 1. [AUTHORIZATION.] The city of Willmar is authorized to allow the Willmar municipal utilities commission to enter into a joint venture with the Kandiyohi cooperative electric power association for the provision of utility services within the boundaries of each utility's exclusive electric service territory, as shown on the map of service territories maintained by the department of public service. The terms and conditions of the joint venture are subject to ratification by both the municipal utilities commission of the city of Willmar and the board of the Kandiyohi cooperative electric power association and may include the formation of a corporate entity with an administrative and governance structure independent of the two utilities. A corporate entity formed under this section shall be subject to all laws and rules applicable to municipal utilities and cooperative electric associations.

Subd. 2. [POWERS.] (a) The joint venture formed under this section, if any, shall have such powers, privileges, responsibilities, and duties of the separate utilities entering into the joint venture as the joint venture agreement may provide, except that, upon formation of the joint venture, neither the joint venture nor the Willmar municipal utilities commission shall have the power of eminent domain or the authority under section 216B.44 to enlarge the service territory served by the joint venture.

(b) Such powers include, but are not limited to, the authority to:

(1) finance, own, construct, and operate facilities necessary for the provision of electric power to wholesale or retail customers, including generation, transmission, and distribution facilities;

(2) combine service territories, in whole or in part, upon notice and hearing to do so with the public utilities commission;

(3) serve customers in the two utilities' service territories or in the combined service territory;

(4) combine, share, or employ administrative, managerial, operational, or other staff which combining or sharing will not degrade safety, reliability, or customer service standards;

(5) provide for joint administrative functions, such as meter reading and billing;

(6) purchase or sell power at wholesale for resale to customers;

(7) provide energy conservation programs, other utility programs, and public interest programs, such as cold weather shutoff protection, and energy conservation spending programs as required by law and rule; and

(8) participate as the parties deem necessary in the provision of wholesale electric power with other municipal utilities, rural electric cooperative utilities, investor-owned utilities, or other entities, public or private.

Subd. 3. [MONITOR AND REPORT.] The Kandiyohi cooperative electric power association and the Willmar municipal utilities commission shall monitor the progress and operation of the joint venture, and shall issue a report to the public utilities commission and legislative committees with jurisdiction over utility regulation and operation outlining the progress of the joint venture. The report required by this subdivision must be submitted not later than January 1, 1998."

With the recommendation that when so amended the bill pass.

The report was adopted.

Skoglund from the Committee on Judiciary to which was referred:

H. F. No. 2376, A bill for an act relating to local government; authorizing a pilot project for family group conferencing; appropriating money.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [PILOT PROJECT FOR FAMILY GROUP CONFERENCING IN DAKOTA COUNTY.]

Subdivision 1. [PILOT PROJECT ESTABLISHED.] By July 1, 1996, the commissioner of corrections shall establish a pilot project in Dakota county to provide assistance to counties, school districts, and cities in establishing family group conferencing programs. The pilot project must be administered by a coordinator responsible for supervising and implementing the project. The coordinator shall cooperate with and provide necessary assistance and training to county attorneys, local law enforcement agencies, school districts, and community groups in establishing family group conferencing programs under subdivision 2.

Subd. 2. [FAMILY GROUP CONFERENCING PROGRAMS.] A county attorney, school district, or city in Dakota county, in consultation with the coordinator and local law enforcement agencies, may establish a family group conferencing program. The program may provide forums where, as an alternative to prosecution, certain individuals accused of having committed crimes meet with the victim or victims of the alleged crime; family members of the victim or victims, if appropriate; family members of the offender, if appropriate; a law enforcement official or prosecutor; and members of the community. An individual properly trained in moderating a family group conference shall act as moderator of the conference. The conference must focus on the impact of the offense on the victim and the community, and assign an appropriate sanction to the offender. An appropriate sanction may include reparation to the victim or community, specified community service, or other sanction agreed upon during the conference.

Subd. 3. [CONFERENCE PARAMETERS.] A county or city attorney, in consultation with the coordinator and local law enforcement agencies, shall establish parameters for the conferences. The parameters must specify the types of offenders and offenses eligible for the conferences, and the nature and goals of the conferences. Only certain offenders deemed appropriate by the county attorney are eligible for the conferences. Decisions on eligibility shall be based on the criminal history of the offender, the nature of the offense, the danger posed by the offender to the victim and the community, and the best interests of the victim and community. Participation in the conference is voluntary, no offender or victim may be required to participate in a conference. A decision to prosecute an offender who has refused to participate in a conference may not be considered in determining the voluntariness of an offender's decision to participate.

A prosecutor who offers an offender the opportunity to participate in a conference retains the authority to prosecute the offender if the offender refuses to participate in the conference, chooses not to complete the conference, or fails to comply with sanctions imposed at the conference.

Subd. 4. [GRANTS AUTHORIZED.] The commissioner of corrections, in consultation with the coordinator, may award grants to aid in the establishment and implementation of family group conferencing programs in Dakota county. The commissioner shall establish the criteria and procedure for the grants.

Subd. 5. [REPORT REQUIRED.] By January 15, 1999, the commissioner of corrections shall report to the chairs of the senate and house of representatives committees having jurisdiction over criminal justice policy on the effectiveness of the pilot project and any family group conferencing programs created under this section and the awarding of grants, if any, under subdivision 4.

Sec. 2. [APPROPRIATION.]

$200,000 is appropriated from the general fund to the commissioner of corrections to administer the pilot project and award grants under section 1. This sum is available until expended."

Delete the title and insert:

"A bill for an act relating to crime prevention; creating a pilot project for family group conferencing in Dakota county; authorizing family group conferencing programs; authorizing a grant program; requiring a report; appropriating money."

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Judiciary Finance.

The report was adopted.

Skoglund from the Committee on Judiciary to which was referred:

H. F. No. 2386, A bill for an act relating to corrections; defining the term criminal justice agency in the law governing the data communications network to include detention facilities licensed by the commissioner of corrections; providing appropriate persons with broader access to the detention information system that is supported by the state operated computer network under control of the commissioner of public safety; amending Minnesota Statutes 1994, section 299C.46, subdivision 2.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

Section 1. Minnesota Statutes 1994, section 13.02, is amended by adding a subdivision to read:

Subd. 3a. [CRIMINAL JUSTICE AGENCIES.] "Criminal justice agencies" means all state and local prosecution authorities, all state and local law enforcement agencies, the sentencing guidelines commission, the bureau of criminal apprehension, the department of corrections, and all probation officers who are not part of the judiciary.

Sec. 2. Minnesota Statutes 1994, section 13.32, subdivision 3, is amended to read:

Subd. 3. [PRIVATE DATA; WHEN DISCLOSURE IS PERMITTED.] Except as provided in subdivision 5, educational data is private data on individuals and shall not be disclosed except as follows:

(a) Pursuant to section 13.05;

(b) Pursuant to a valid court order;

(c) Pursuant to a statute specifically authorizing access to the private data;

(d) To disclose information in health and safety emergencies pursuant to the provisions of United States Code, title 20, section 1232g(b)(1)(I) and Code of Federal Regulations, title 34, section 99.36 which are in effect on July 1, 1993;

(e) Pursuant to the provisions of United States Code, title 20, sections 1232g(b)(1), (b)(4)(A), (b)(4)(B), (b)(1)(B), (b)(3) and Code of Federal Regulations, title 34, sections 99.31, 99.32, 99.33, 99.34, and 99.35 which are in effect on July 1, 1993;

(f) To appropriate health authorities to the extent necessary to administer immunization programs and for bona fide epidemiologic investigations which the commissioner of health determines are necessary to prevent disease or disability to individuals in the public educational agency or institution in which the investigation is being conducted;

(g) When disclosure is required for institutions that participate in a program under title IV of the Higher Education Act, United States Code, title 20, chapter 1092, in effect on July 1, 1993; or

(h) To the appropriate school district officials to the extent necessary under subdivision 6, annually to indicate the extent and content of remedial instruction, including the results of assessment testing and academic performance at a post-secondary institution during the previous academic year by a student who graduated from a Minnesota school district within two years before receiving the remedial instruction; or

(i) To volunteers acting on behalf of the educational agency or institution in the conduct of activities and events sponsored by or endorsed by the educational agency or institution for students or former students.

Sec. 3. Minnesota Statutes 1994, section 13.32, subdivision 5, is amended to read:

Subd. 5. [DIRECTORY INFORMATION.] Information designated as directory information pursuant to the provisions of United States Code, title 20, section 1232g and Code of Federal Regulations, title 34, section 99.37 which are in effect on July 1, 1993, is public data on individuals. When conducting the directory information designation and notice process required by federal law, an educational agency or institution shall give parents and students notice of the right to refuse to let the agency or institution designate any or all data about the student as directory information. This notice may be given by any means reasonably likely to inform the parents and students of the right.

Sec. 4. Minnesota Statutes 1994, section 13.37, subdivision 1, is amended to read:

Subdivision 1. [DEFINITIONS.] As used in this section, the following terms have the meanings given them.

(a) "Security information" means government data the disclosure of which would be likely to substantially jeopardize the security of information, possessions, individuals or property against theft, tampering, improper use, attempted escape, illegal disclosure, trespass, or physical injury. "Security information" includes crime prevention block maps and lists of volunteers who participate in community crime prevention programs and their home addresses and telephone numbers.

(b) "Trade secret information" means government data, including a formula, pattern, compilation, program, device, method, technique or process (1) that was supplied by the affected individual or organization, (2) that is the subject of efforts by the individual or organization that are reasonable under the circumstances to maintain its secrecy, and (3) that derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use.

(c) "Labor relations information" means management positions on economic and noneconomic items that have not been presented during the collective bargaining process or interest arbitration, including information specifically collected or created to prepare the management position.

(d) "Parking space leasing data" means the following government data on an applicant for, or lessee of, a parking space: residence address, home telephone number, beginning and ending work hours, place of employment, and work telephone number.

Sec. 5. Minnesota Statutes 1994, section 13.37, subdivision 2, is amended to read:

Subd. 2. [CLASSIFICATION.] The following government data is classified as nonpublic data with regard to data not on individuals, pursuant to section 13.02, subdivision 9, and as private data with regard to data on individuals, pursuant to section 13.02, subdivision 12: Security information; trade secret information; sealed absentee ballots prior to opening by an election judge; sealed bids, including the number of bids received, prior to the opening of the bids; parking space leasing data; and labor relations information, provided that specific labor relations information which relates to a specific labor organization is classified as protected nonpublic data pursuant to section 13.02, subdivision 13.

Sec. 6. Minnesota Statutes 1994, section 13.40, subdivision 2, is amended to read:

Subd. 2. [PRIVATE DATA; LIBRARY BORROWERS.] (a) Except as provided in paragraph (b), the following data maintained by a library are private data on individuals and may not be disclosed for other than library purposes except pursuant to a court order:

(1) data that link a library patron's name with materials requested or borrowed by the patron or that link a patron's name with a specific subject about which the patron has requested information or materials; or

(2) data in applications for borrower cards, other than the name of the borrower.

(b) A library may release reserved materials to a family member or other person who resides with a library patron and who is picking up the material on behalf of the patron. A patron may request that reserved materials be released only to the patron.

Sec. 7. Minnesota Statutes 1995 Supplement, section 13.43, subdivision 2, is amended to read:

Subd. 2. [PUBLIC DATA.] (a) Except for employees described in subdivision 5, the following personnel data on current and former employees, volunteers, and independent contractors of a state agency, statewide system, or political subdivision and members of advisory boards or commissions is public:

(1) name; actual gross salary; salary range; contract fees; actual gross pension; the value and nature of employer paid fringe benefits; and the basis for and the amount of any added remuneration, including expense reimbursement, in addition to salary;

(2) job title; job description; education and training background; and previous work experience;

(3) date of first and last employment;

(4) the existence and status of any complaints or charges against the employee, regardless of whether the complaint or charge resulted in a disciplinary action;

(5) the final disposition of any disciplinary action together with the specific reasons for the action and data documenting the basis of the action, excluding data that would identify confidential sources who are employees of the public body;

(6) the terms of any agreement settling any dispute arising out of an employment relationship or of a buyout agreement, as defined in section 123.34, subdivision 9a, paragraph (a);

(7) work location; a work telephone number; badge number; and honors and awards received; and

(8) payroll time sheets or other comparable data that are only used to account for employee's work time for payroll purposes, except to the extent that release of time sheet data would reveal the employee's reasons for the use of sick or other medical leave or other not public data; and city and county of residence.

(b) For purposes of this subdivision, a final disposition occurs when the state agency, statewide system, or political subdivision makes its final decision about the disciplinary action, regardless of the possibility of any later proceedings or court proceedings. In the case of arbitration proceedings arising under collective bargaining agreements, a final disposition occurs at the conclusion of the arbitration proceedings, or upon the failure of the employee to elect arbitration within the time provided by the collective bargaining agreement. Final disposition includes a resignation by an individual when the resignation occurs after the final decision of the state agency, statewide system, political subdivision, or arbitrator.

(c) The state agency, statewide system, or political subdivision may display a photograph of a current or former employee to a prospective witness as part of the state agency's, statewide system's, or political subdivision's investigation of any complaint or charge against the employee.

(d) A complainant has access to a statement provided by the complainant to a state agency, statewide system, or political subdivision in connection with a complaint or charge against an employee.

(e) Notwithstanding paragraph (a), clause (5), upon completion of an investigation of a complaint or charge against a public official, or if a public official resigns or is terminated from employment while the complaint or charge is pending, all data relating to the complaint or charge are public, unless access to the data would jeopardize an active investigation or reveal confidential sources. For purposes of this paragraph, "public official" means the head of a state agency and deputy and assistant state agency heads commissioners, deputy and assistant commissioners, bureau chiefs of state departments in the executive branch, the chief executive officers, and deputy and assistant chief executive officers of those agencies of the executive branch that are not state departments.

Sec. 8. Minnesota Statutes 1994, section 13.43, is amended by adding a subdivision to read:

Subd. 10. [PROTECTION OF EMPLOYEE OR OTHERS.] (a) If the responsible authority or designee of a state agency, statewide system, or political subdivision reasonably determines that the release of personnel data is necessary to protect an employee from harm to self or to protect another person who may be harmed by the employee, data that are relevant to the concerns for safety may be released as provided in this subdivision.

(b) The data may be released:

(1) to the person who may be harmed and to an attorney representing the person when the data are relevant to obtaining a restraining order;

(2) to a prepetition screening team conducting an investigation of the employee under section 253B.07, subdivision 1; or

(3) to a court, law enforcement agency, or prosecuting authority.

(c) Section 13.03, subdivision 4, paragraph (c), applies to data released under this subdivision, except to the extent that the data have a more restrictive classification in the possession of the agency or authority that receives the data. If the person who may be harmed or the person's attorney receives data under this subdivision, the data may be used or released further only to the extent necessary to protect the person from harm.

Sec. 9. Minnesota Statutes 1995 Supplement, section 13.46, subdivision 2, is amended to read:

Subd. 2. [GENERAL.] (a) Unless the data is summary data or a statute specifically provides a different classification, data on individuals collected, maintained, used, or disseminated by the welfare system is private data on individuals, and shall not be disclosed except:

(1) pursuant to section 13.05;

(2) pursuant to court order;

(3) pursuant to a statute specifically authorizing access to the private data;

(4) to an agent of the welfare system, including a law enforcement person, attorney, or investigator acting for it in the investigation or prosecution of a criminal or civil proceeding relating to the administration of a program;

(5) to personnel of the welfare system who require the data to determine eligibility, amount of assistance, and the need to provide services of additional programs to the individual;

(6) to administer federal funds or programs;

(7) between personnel of the welfare system working in the same program;

(8) the amounts of cash public assistance and relief paid to welfare recipients in this state, including their names, social security numbers, income, addresses, and other data as required, upon request by the department of revenue to administer the property tax refund law, supplemental housing allowance, early refund of refundable tax credits, and the income tax. "Refundable tax credits" means the dependent care credit under section 290.067, the Minnesota working family credit under section 290.0671, the property tax refund under section 290A.04, and, if the required federal waiver or waivers are granted, the federal earned income tax credit under section 32 of the Internal Revenue Code;

(9) to the Minnesota department of economic security for the purpose of monitoring the eligibility of the data subject for reemployment insurance, for any employment or training program administered, supervised, or certified by that agency, or for the purpose of administering any rehabilitation program, whether alone or in conjunction with the welfare system, and to verify receipt of energy assistance for the telephone assistance plan;

(10) to appropriate parties in connection with an emergency if knowledge of the information is necessary to protect the health or safety of the individual or other individuals or persons;

(11) data maintained by residential programs as defined in section 245A.02 may be disclosed to the protection and advocacy system established in this state pursuant to Part C of Public Law Number 98-527 to protect the legal and human rights of persons with mental retardation or other related conditions who live in residential facilities for these persons if the protection and advocacy system receives a complaint by or on behalf of that person and the person does not have a legal guardian or the state or a designee of the state is the legal guardian of the person;

(12) to the county medical examiner or the county coroner for identifying or locating relatives or friends of a deceased person;

(13) data on a child support obligor who makes payments to the public agency may be disclosed to the higher education services office to the extent necessary to determine eligibility under section 136A.121, subdivision 2, clause (5);

(14) participant social security numbers and names collected by the telephone assistance program may be disclosed to the department of revenue to conduct an electronic data match with the property tax refund database to determine eligibility under section 237.70, subdivision 4a;

(15) the current address of a recipient of aid to families with dependent children may be disclosed to law enforcement officers who provide the name and social security number of the recipient and satisfactorily demonstrate that: (i) the recipient is a fugitive felon, including the grounds for this determination; (ii) the location or apprehension of the felon is within the law enforcement officer's official duties; and (iii) the request is made in writing and in the proper exercise of those duties;

(16) the current address of a recipient of general assistance, work readiness, or general assistance medical care may be disclosed to probation officers and corrections agents who are supervising the recipient, and to law enforcement officers who are investigating the recipient in connection with a felony level offense;

(17) information obtained from food stamp applicant or recipient households may be disclosed to local, state, or federal law enforcement officials, upon their written request, for the purpose of investigating an alleged violation of the food stamp act, in accordance with Code of Federal Regulations, title 7, section 272.1(c);

(18) data on a child support obligor who is in arrears may be disclosed for purposes of publishing the data pursuant to section 518.575;

(19) data on child support payments made by a child support obligor may be disclosed to the obligee; or

(20) data in the work reporting system may be disclosed under section 256.998, subdivision 7.;

(21) to the department of children, families, and learning for the purpose of matching department of children, families, and learning student data with public assistance data to determine students eligible for free and reduced price meals, meal supplements, and free milk pursuant to United States Code, title 42, sections 1758, 1761, 1766, 1766a, 1772, and 1773; to produce accurate numbers of students receiving aid to families with dependent children as required by section 124.175; and to allocate federal and state funds that are distributed based on income of the student's family; or

(22) the current address and phone number of program recipients and emergency contacts may be released to the commissioner of health or a local board of health as defined in section 145A.02, subdivision 2, when the commissioner or local board of health has reason to believe that a program recipient is a disease case, carrier, suspect case, or at risk of illness, and the data are necessary to locate the person.

(b) Information on persons who have been treated for drug or alcohol abuse may only be disclosed in accordance with the requirements of Code of Federal Regulations, title 42, sections 2.1 to 2.67.

(c) Data provided to law enforcement agencies under paragraph (a), clause (15), (16), or (17), or paragraph (b), are investigative data and are confidential or protected nonpublic while the investigation is active. The data are private after the investigation becomes inactive under section 13.82, subdivision 5, paragraph (a) or (b).

(d) Mental health data shall be treated as provided in subdivisions 7, 8, and 9, but is not subject to the access provisions of subdivision 10, paragraph (b).

Sec. 10. [13.621] [TWO HARBORS DEVELOPMENT COMMISSION DATA.]

Subdivision 1. [NONPUBLIC DATA.] The following data that are submitted to the Two Harbors development commission by businesses that are requesting financial assistance are nonpublic data: financial statements, business plans, income and expense projections, customer lists, balance sheets, net worth calculations, and market data, including feasibility studies not paid for with public funds.

Subd. 2. [PUBLIC DATA.] Data submitted to the commission under subdivision 1 become public data after the commission decides to provide financial assistance to the business except that the following data remain nonpublic: business plans, income and expense projections, customer lists, and market data, including feasibility studies not paid for with public funds.

Sec. 11. [13.622] [MOORHEAD ECONOMIC DEVELOPMENT AUTHORITY DATA.]

Subdivision 1. [NONPUBLIC DATA.] The following data submitted to the city of Moorhead and to the Moorhead economic development authority by businesses that are requesting financial assistance are nonpublic data: financial statements, business plans, income and expense projections, customer lists, balance sheets, and market and feasibility studies not paid for with public funds.

Subd. 2. [PUBLIC DATA.] Data submitted to the city and the city's economic development authority under subdivision 1 become public data after the city decides to provide financial assistance to the business except that the following data remain nonpublic: business plans, income and expense projections, customer lists, and market and feasibility studies not paid for with public funds.

Sec. 12. Minnesota Statutes 1994, section 13.82, subdivision 13, is amended to read:

Subd. 13. [PROPERTY DATA.] Data that uniquely describe stolen, lost, confiscated, or recovered property or property described in pawn shop transaction records are classified as either private data on individuals or nonpublic data depending on the content of the not public data.

Sec. 13. Minnesota Statutes 1994, section 13.82, is amended by adding a subdivision to read:

Subd. 18. [PAWN SHOP DATA.] Data that would reveal the identity of persons who are customers of a licensed pawnbroker or secondhand goods dealer are private data on individuals. Data describing the property in a regulated transaction with a licensed pawnbroker or secondhand goods dealer are public.

Sec. 14. Minnesota Statutes 1994, section 13.87, subdivision 1, is amended to read:

Subdivision 1. [DEFINITION.] For purposes of this section, "adult and juvenile criminal history data" means all data maintained in adult and juvenile criminal history records compiled by the bureau of criminal apprehension and disseminated through the criminal justice information system, including, but not limited to fingerprints, photographs, identification data, arrest data, prosecution data, criminal and juvenile court data, custody and supervision data.

Sec. 15. Minnesota Statutes 1994, section 13.87, subdivision 2, is amended to read:

Subd. 2. [CLASSIFICATION.] Adult and juvenile criminal history data maintained by agencies, political subdivisions and statewide systems are classified as private, pursuant to section 13.02, subdivision 12, except that (1) the data may be shared with criminal justice agencies, all trial courts, and the appellate courts; and (2) data created, collected, or maintained by the bureau of criminal apprehension that identify an individual who was convicted of a crime and the offense of which the individual was convicted are public data for 15 years following the discharge of the sentence imposed for the offense.

The bureau of criminal apprehension shall provide to the public at the central office of the bureau the ability to inspect in person, at no charge, through a computer monitor the criminal conviction data classified as public under this subdivision.

Sec. 16. Minnesota Statutes 1994, section 13.99, is amended by adding a subdivision to read:

Subd. 89a. [CRIMINAL ALERT NETWORK.] Data on private sector members of the criminal alert network are classified under section 299A.61, subdivision 2.

Sec. 17. Minnesota Statutes 1995 Supplement, section 62J.451, subdivision 7, is amended to read:

Subd. 7. [DISSEMINATION OF REPORTS; OTHER INFORMATION.] (a) The health data institute shall establish a mechanism for the dissemination of reports and other information to consumers, group purchasers, health plan companies, providers, and the state. When applicable, the health data institute shall coordinate its dissemination of information responsibilities with those of the commissioner, to the extent administratively efficient and effective.

(b) The health data institute may require those requesting data from its databases to contribute toward the cost of data collection through the payments of fees.

(c) The health data institute shall not allow a group purchaser or health care provider to use or have access to the electronic data interchange system or to access data under section 62J.452, subdivision 6 or 7, unless the group purchaser or health care provider cooperates with the data collection efforts of the health data institute by submitting or making available through the EDI system or other means all data requested by the health data institute. The health data institute shall prohibit group purchasers and health care providers from transferring, providing, or sharing data obtained from the health data institute under section 62J.452, subdivision 6 or 7, with a group purchaser or health care provider that does not cooperate with the data collection efforts of the health data institute.

Sec. 18. Minnesota Statutes 1995 Supplement, section 62J.451, subdivision 9, is amended to read:

Subd. 9. [BOARD OF DIRECTORS.] The health data institute is governed by a 20-member board of directors consisting of the following members:

(1) two representatives of hospitals, one appointed by the Minnesota Hospital Association and one appointed by the Metropolitan HealthCare Council and Health Care Partnership, to reflect a mix of urban and rural institutions;

(2) four representatives of health carriers, two appointed by the Minnesota council of health maintenance organizations, one appointed by Blue Cross and Blue Shield of Minnesota, and one appointed by the Insurance Federation of Minnesota;

(3) two consumer members, one appointed by the commissioner, and one appointed by the AFL-CIO as a labor union representative;

(4) five group purchaser representatives appointed by the Minnesota consortium of health care purchasers to reflect a mix of urban and rural, large and small, and self-insured purchasers;

(5) two physicians appointed by the Minnesota Medical Association, to reflect a mix of urban and rural practitioners;

(6) one representative of teaching and research institutions, appointed jointly by the Mayo Foundation and the Minnesota Association of Public Teaching Hospitals;

(7) one nursing representative appointed by the Minnesota Nurses Association; and

(8) three representatives of state agencies, one member representing the department of employee relations, one member representing the department of human services, and one member representing the department of health.

Sec. 19. Minnesota Statutes 1995 Supplement, section 62J.451, subdivision 12, is amended to read:

Subd. 12. [STAFF.] The board may hire an executive director. The executive director and other health data institute staff are not state employees but are covered by section 3.736. The executive director and other health data institute staff may participate in the following plans for employees in the unclassified service until January 1, 1996: the state retirement plan, the state deferred compensation plan, and the health, dental, and life insurance plans. The attorney general shall provide legal services to the board.

Sec. 20. Minnesota Statutes 1994, section 62J.51, is amended by adding a subdivision to read:

Subd. 3a. [CARD ISSUER.] "Card issuer" means the group purchaser who is responsible for printing and distributing identification cards to members or insureds.

Sec. 21. Minnesota Statutes 1994, section 62J.51, is amended by adding a subdivision to read:

Subd. 6a. [CLAIM STATUS TRANSACTION SET (ANSI ASC X12 276/277).] "Claim status transaction set (ANSI ASC X12 276/277)" means the transaction format developed and approved for implementation in December 1993 and used by providers to request and receive information on the status of a health care claim or encounter that has been submitted to a group purchaser.

Sec. 22. Minnesota Statutes 1994, section 62J.51, is amended by adding a subdivision to read:

Subd. 6b. [CLAIM SUBMISSION ADDRESS.] "Claim submission address" means the address to which the group purchaser requires health care providers, members, or insureds to send health care claims for processing.

Sec. 23. Minnesota Statutes 1994, section 62J.51, is amended by adding a subdivision to read:

Subd. 6c. [CLAIM SUBMISSION NUMBER.] "Claim submission number" means the unique identification number to identify group purchasers as described in section 62J.54, with its suffix identifying the claim submission address.

Sec. 24. Minnesota Statutes 1995 Supplement, section 62J.54, subdivision 1, is amended to read:

Subdivision 1. [UNIQUE IDENTIFICATION NUMBER FOR HEALTH CARE PROVIDER ORGANIZATIONS.] (a) On and after January 1, 1998, all group purchasers and health care providers in Minnesota shall use a unique identification number to identify health care provider organizations, except as provided in paragraph (d) (e).

(b) Following the recommendation of the workgroup for electronic data interchange, the federal tax identification number assigned to each health care provider organization by the Internal Revenue Service of the Department of the Treasury The first eight digits of the national provider identifier maintained by the federal Health Care Financing Administration shall be used as the unique identification number for health care provider organizations.

(c) Provider organizations required to have a national provider identifier are:

(1) hospitals licensed under chapter 144;

(2) nursing homes and hospices licensed under chapter 144A;

(3) subacute care facilities;

(4) individual providers organized as a clinic or group practice;

(5) independent laboratory, pharmacy, surgery, radiology, or outpatient facilities;

(6) ambulance services licensed under chapter 144; and

(7) special transportation services certified under chapter 174.

Provider organizations shall obtain a national provider identifier from the federal Health Care Financing Administration using the federal Health Care Financing Administration's prescribed process.

(d) Only the unique health care provider organization identifier shall be used for purposes of submitting and receiving claims, and in conjunction with other data collection and reporting functions.

(d) (e) The state and federal health care programs administered by the department of human services shall use the unique identification number assigned to health care providers for implementation of the Medicaid Management Information System or the uniform provider identification number (UPIN) assigned by the Health Care Financing Administration national provider identifier maintained by the federal Health Care Financing Administration.

(f) The commissioner of health may become a subscriber to the federal Health Care Financing Administration's national provider system to implement this subdivision.

Sec. 25. Minnesota Statutes 1995 Supplement, section 62J.54, subdivision 2, is amended to read:

Subd. 2. [UNIQUE IDENTIFICATION NUMBER FOR INDIVIDUAL HEALTH CARE PROVIDERS.] (a) On and after January 1, 1998, all group purchasers and health care providers in Minnesota shall use a unique identification number to identify an individual health care provider, except as provided in paragraph (d) (e).

(b) The uniform provider identification number (UPIN) assigned by the Health Care Financing Administration first eight digits of the national provider identifier maintained by the federal Health Care Financing Administration's national provider system shall be used as the unique identification number for individual health care providers. Providers who do not currently have a UPIN number shall request one from the health care financing administration.

(c) Individual providers required to have a national provider identifier are:

(1) physicians licensed under chapter 147;

(2) dentists licensed under chapter 150A;

(3) chiropractors licensed under chapter 148;

(4) podiatrists licensed under chapter 153;

(5) physician assistants as defined under section 147A.01;

(6) advanced practice nurses as defined under section 62A.15;

(7) doctors of optometry licensed under section 148.57;

(8) individual providers who may bill Medicare for medical and other health services as defined in United States Code, title 42, section 1395x(s); and

(9) individual providers who are providers for state and federal health care programs administered by the commissioner of human services.

Providers shall obtain a national provider identifier from the federal Health Care Financing Administration using the Health Care Financing Administration's prescribed process.

(d) Only the unique individual health care provider identifier shall be used for purposes of submitting and receiving claims, and in conjunction with other data collection and reporting functions.

(d) (e) The state and federal health care programs administered by the department of human services shall use the unique identification number assigned to health care providers for implementation of the Medicaid Management Information System or the uniform provider identification number (UPIN) assigned by the health care financing administration national provider identifier maintained by the federal Health Care Financing Administration.

(f) The commissioner of health may become a subscriber to the federal Health Care Financing Administration's national provider system to implement this subdivision.

Sec. 26. Minnesota Statutes 1995 Supplement, section 62J.54, subdivision 3, is amended to read:

Subd. 3. [UNIQUE IDENTIFICATION NUMBER FOR GROUP PURCHASERS.] (a) On and after January 1, 1998, all group purchasers and health care providers in Minnesota shall use a unique identification number to identify group purchasers.

(b) The federal tax identification number assigned to each group purchaser by the Internal Revenue Service of the Department of the Treasury payer identification number assigned for the federal Health Care Financing Administration's PAYERID system shall be used as the unique identification number for group purchasers. This paragraph applies until the codes described in paragraph (c) are available and feasible to use, as determined by the commissioner.

(c) A two-part code, consisting of 11 characters and modeled after the National Association of Insurance Commissioners company code shall be assigned to each group purchaser and used as the unique identification number for group purchasers. The first six characters, or prefix, shall contain the numeric code, or company code, assigned by the National Association of Insurance Commissioners. The last five characters, or suffix, which is optional, shall contain further codes that will enable group purchasers to further route electronic transaction in their internal systems. Group purchasers shall obtain a payer identifier number from the federal Health Care Financing Administration using the Health Care Financing Administration's prescribed process.

(d) The unique group purchaser identifier, as described in this section, shall be used for purposes of submitting and receiving claims, and in conjunction with other data collection and reporting functions.

(e) The commissioner of health may become a registry user to the federal Health Care Financing Administration's PAYERID system to implement this subdivision.

Sec. 27. Minnesota Statutes 1994, section 62J.56, subdivision 2, is amended to read:

Subd. 2. [IDENTIFICATION OF CORE TRANSACTION SETS.] (a) All category I and II industry participants in Minnesota shall comply with the standards developed by the ANSI ASC X12 for the following core transaction sets, according to the implementation plan outlined for each transaction set.

(1) ANSI ASC X12 835 health care claim payment/advice transaction set.

(2) ANSI ASC X12 837 health care claim transaction set.

(3) ANSI ASC X12 834 health care enrollment transaction set.

(4) ANSI ASC X12 270/271 health care eligibility transaction set.

(5) ANSI ASC X12 276/277 health care claims status request/notification transaction set.

(b) The commissioner, with the advice of the Minnesota health data institute and the Minnesota administrative uniformity committee, and in coordination with federal efforts, may approve the use of new ASC X12 standards, or new versions of existing standards, as they become available, or other nationally recognized standards, where appropriate ASC X12 standards are not available for use. These alternative standards may be used during a transition period while ASC X12 standards are developed.

Sec. 28. Minnesota Statutes 1995 Supplement, section 62J.58, is amended to read:

62J.58 [IMPLEMENTATION OF STANDARD TRANSACTION SETS.]

Subdivision 1. [CLAIMS PAYMENT.] Six months from the date the commissioner formally recommends the use of guides to implement core transaction sets pursuant to section 62J.56, subdivision 3, all category I industry participants and all category II industry participants, except pharmacists, shall be able to submit or accept, as appropriate, the ANSI ASC X12 835 health care claim payment/advice transaction set (draft standard for trial use version 3030/release 3051) for electronic submission of payment information to health care providers.

Subd. 2. [CLAIMS SUBMISSION.] Six months from the date the commissioner formally recommends the use of guides to implement core transaction sets pursuant to section 62J.56, subdivision 3, all category I and category II industry participants, except pharmacists, shall be able to accept or submit, as appropriate, the ANSI ASC X12 837 health care claim transaction set (draft standard for trial use version 3030/release 3051) for the electronic transfer of health care claim information.

Subd. 2a. [CLAIM STATUS INFORMATION.] Six months from the date the commissioner formally recommends the use of guides to implement core transaction sets under section 62J.56, subdivision 3, all category I and II industry participants, excluding pharmacists, may accept or submit the ANSI ASC X12 276/277 health care claim status transaction set (draft standard for trial use version/release 3051) for the electronic transfer of health care claim status information.

Subd. 3. [ENROLLMENT INFORMATION.] Six months from the date the commissioner formally recommends the use of guides to implement core transaction sets pursuant to section 62J.56, subdivision 3, all category I and category II industry participants, excluding pharmacists, shall be able to accept or submit, as appropriate, the ANSI ASC X12 834

health care enrollment transaction set (draft standard for trial use version 3030/release 3051) for the electronic transfer of enrollment and health benefit information.

Subd. 4. [ELIGIBILITY INFORMATION.] Six months from the date the commissioner formally recommends the use of guides to implement core transaction sets pursuant to section 62J.56, subdivision 3, all category I and category II industry participants, except pharmacists, shall be able to accept or submit, as appropriate, the ANSI ASC X12 270/271 health care eligibility transaction set (draft standard for trial use version 3030/release 3051) for the electronic transfer of health benefit eligibility information.

Subd. 5. [APPLICABILITY.] This section does not require a group purchaser, health care provider, or employer to use electronic data interchange or to have the capability to do so. This section applies only to the extent that a group purchaser, health care provider, or employer chooses to use electronic data interchange.

Sec. 29. Minnesota Statutes 1994, section 62J.60, subdivision 2, is amended to read:

Subd. 2. [GENERAL CHARACTERISTICS.] (a) The Minnesota health care identification card must be a preprinted card constructed of plastic, paper, or any other medium that conforms with ANSI and ISO 7810 physical characteristics standards. The card dimensions must also conform to ANSI and ISO 7810 physical characteristics standard. The use of a signature panel is optional.

(b) The Minnesota health care identification card must have an essential information window in the front side with the following data elements left justified in the following top to bottom sequence: card issuer name, issuer claim submission number, identification number, identification name. No optional data may be interspersed between these data elements. The window must be left justified.

(c) Standardized labels are required next to human readable data elements. The card issuer may decide the location of the standardized label relative to the data element.

Sec. 30. Minnesota Statutes 1994, section 62J.60, subdivision 3, is amended to read:

Subd. 3. [HUMAN READABLE DATA ELEMENTS.] (a) The following are the minimum human readable data elements that must be present on the front side of the Minnesota health care identification card:

(1) card issuer name or logo, which is the name or logo that identifies the card issuer. The card issuer name or logo may be the card's front background. No standard label is required for this data element;

(2) issuer claim submission number, which is the unique card issuer number consisting of a base number assigned by a registry process followed by a suffix number assigned by the card issuer. The use of this element is mandatory within one year of the establishment of a process for this identifier. The standardized label for this element is "Issuer Clm Subm #";

(3) identification number, which is the unique identification number of the individual card holder established and defined under this section. The standardized label for the data element is "ID";

(4) identification name, which is the name of the individual card holder. The identification name must be formatted as follows: first name, space, optional middle initial, space, last name, optional space and name suffix. The standardized label for this data element is "Name";

(5) account number(s), which is any other number, such as a group number, if required for part of the identification or claims process. The standardized label for this data element is "Account";

(6) care type, which is the description of the group purchaser's plan product under which the beneficiary is covered. The description shall include the health plan company name and the plan or product name. The standardized label for this data element is "Care Type";

(7) service type, which is the description of coverage provided such as hospital, dental, vision, prescription, or mental health. The standard label for this data element is "Svc Type"; and

(8) provider/clinic name, which is the name of the primary care clinic the cardholder is assigned to by the health plan company. The standard label for this field is "PCP." This information is mandatory only if the health plan company assigns a specific primary care provider to the cardholder.

(b) The following human readable data elements shall be present on the back side of the Minnesota health identification card. These elements must be left justified, and no optional data elements may be interspersed between them:

(1) claims submission name(s) and address(es), which are the name(s) and address(es) of the entity or entities to which claims should be submitted. If different destinations are required for different types of claims, this must be labeled;

(2) telephone number(s) and name(s); which are the telephone number(s) and name(s) of the following contact(s) with a standardized label describing the service function as applicable:

(i) eligibility and benefit information;

(ii) utilization review;

(iii) precertification; or

(iv) customer services.

(c) The following human readable data elements are mandatory on the back side of the card for health maintenance organizations and integrated service networks:

(1) emergency care authorization telephone number or instruction on how to receive authorization for emergency care. There is no standard label required for this information; and

(2) telephone number to call to appeal to the commissioner of health. There is no standard label required for this information.

(d) All human readable data elements not required under paragraphs (a) to (c) are optional and may be used at the issuer's discretion.

Sec. 31. Minnesota Statutes 1995 Supplement, section 62Q.03, subdivision 9, is amended to read:

Subd. 9. [DATA COLLECTION AND DATA PRIVACY.] The association members shall not have access to unaggregated data on individuals or health plan companies. The association shall develop, as a part of the plan of operation, procedures for ensuring that data is collected by an appropriate entity. The commissioners of health and commerce shall have the authority to audit and examine data collected by the association for the purposes of the development and implementation of the risk adjustment system. Data on individuals obtained for the purposes of risk adjustment development, testing, and operation are designated as private data. Data not on individuals which is obtained for the purposes of development, testing, and operation of risk adjustment are designated as nonpublic data., except for that the proposed and approved plan of operation, the risk adjustment methodologies examined, the plan for testing, the plan of the risk adjustment system, minutes of meetings, and other general operating information are classified as public data. Nothing in this section is intended to prohibit the preparation of summary data under section 13.05, subdivision 7. The association, state agencies, and any contractors having access to this data shall maintain it in accordance with this classification. The commissioners of health and human services have the authority to collect data from health plan companies as needed for the purpose of developing a risk adjustment mechanism for public programs.

Sec. 32. Minnesota Statutes 1994, section 144.225, subdivision 2, is amended to read:

Subd. 2. [DATA ABOUT BIRTHS.] (a) Except as otherwise provided in this subdivision, data pertaining to the birth of a child, to a woman who was not married to the child's father when the child was conceived nor when the child was born, including the original certificate of birth and the certified copy, are confidential data. At the time of the birth of a child to a woman who was not married to the child's father when the child was conceived nor when the child was born, the mother may designate on the birth registration form whether data pertaining to the birth will be public data. Notwithstanding the designation of the data as confidential, it may be disclosed to a parent or guardian of the child, to the child when the child is 18 years of age or older, pursuant to a court order, or under paragraph (b).

(b) Unless the child is adopted, data pertaining to the birth of a child that are not accessible to the public become public data if 100 years have elapsed since the birth of the child who is the subject of the data, or as provided under section 13.10, whichever occurs first.

(c) If a child is adopted, data pertaining to the child's birth are governed by the provisions relating to adoption records, including sections 13.10, subdivision 5; 144.1761; 144.218, subdivision 1; and 259.89. The birth and death records of the commissioner of health shall be open to inspection by the commissioner of human services and it shall not be necessary for the commissioner of human services to obtain an order of the court in order to inspect records or to secure certified copies of them.

(d) The name and address of a mother under paragraph (a) and the child's date of birth may be disclosed to a family services collaborative for purposes of providing services under section 121.8355.

Sec. 33. Minnesota Statutes 1994, section 144.225, is amended by adding a subdivision to read:

Subd. 6. [GROUP PURCHASER IDENTITY; NONPUBLIC DATA; DISCLOSURE.] (a) Except as otherwise provided in this subdivision, the named identity of a group purchaser as defined in section 62J.03, subdivision 6, collected in association with birth registration is nonpublic data as defined in section 13.02.

(b) The commissioner may publish, or by other means release to the public, the named identity of a group purchaser as part of an analysis of information collected from the birth registration process. Analysis means the identification of trends in prenatal care and birth outcomes associated with group purchasers. The commissioner may not reveal the named identity of the group purchaser until the group purchaser has had 21 days after receipt of the analysis to review the analysis and comment on it. In releasing data under this subdivision, the commissioner shall include comments received from the group purchaser related to the scientific soundness and statistical validity of the methods used in the analysis. This subdivision does not authorize the commissioner to make public any individual identifying data except as permitted by law.

(c) A group purchaser may contest whether an analysis made public under paragraph (b) is based on scientifically sound and statistically valid methods in a contested case proceeding under sections 14.57 to 14.62, subject to appeal under sections 14.63 to 14.68. To obtain a contested case hearing, the group purchaser must present a written request to the commissioner before the end of the time period for review and comment. Within ten days of the assignment of an administrative law judge, the group purchaser must demonstrate by clear and convincing evidence the group purchaser's likelihood of succeeding on the merits. If the judge determines that the group purchaser has made this demonstration, the data may not be released during the contested case proceeding and through appeal. If the judge finds that the group purchaser has not made this demonstration, the commissioner may immediately publish, or otherwise make public, the nonpublic group purchaser data, with comments received as set forth in paragraph (b).

(d) The contested case proceeding and subsequent appeal is not an exclusive remedy and any person may seek a remedy pursuant to section 13.08, subdivisions 1 to 4, or as otherwise authorized by law.

Sec. 34. Minnesota Statutes 1995 Supplement, section 144.335, subdivision 3a, is amended to read:

Subd. 3a. [PATIENT CONSENT TO RELEASE OF RECORDS; LIABILITY.] (a) A provider, or a person who receives health records from a provider, may not release a patient's health records to a person without a signed and dated consent from the patient or the patient's legally authorized representative authorizing the release, unless the release is specifically authorized by law. Except as provided in paragraph (c) or (d), a consent is valid for one year or for a lesser period specified in the consent or for a different period provided by law.

(b) This subdivision does not prohibit the release of health records:

(1) for a medical emergency when the provider is unable to obtain the patient's consent due to the patient's condition or the nature of the medical emergency; or

(2) to other providers within related health care entities when necessary for the current treatment of the patient.

(c) Notwithstanding paragraph (a), if a patient explicitly gives informed consent to the release of health records for the purposes and pursuant to the restrictions in clauses (1) and (2), the consent does not expire after one year for:

(1) the release of health records to a provider who is being advised or consulted with in connection with the current treatment of the patient;

(2) the release of health records to an accident and health insurer, health service plan corporation, health maintenance organization, or third-party administrator for purposes of payment of claims, fraud investigation, or quality of care review and studies, provided that:

(i) the use or release of the records complies with sections 72A.49 to 72A.505;

(ii) further use or release of the records in individually identifiable form to a person other than the patient without the patient's consent is prohibited; and

(iii) the recipient establishes adequate safeguards to protect the records from unauthorized disclosure, including a procedure for removal or destruction of information that identifies the patient.

(d) Until June 1, 1996 , paragraph (a) does not prohibit the release of health records to qualified personnel solely for purposes of medical or scientific research, if the patient has not objected to Notwithstanding paragraph (a), health records may be released to qualified personnel solely for purposes of medical or scientific research only as follows:

(1) for health records generated before January 1, 1997, if the patient has not objected and does not object;

(2) for health records generated on or after January 1, 1997, the provider must:

(i) disclose in writing to patients that health records may be released and that the patient may object; and

(ii) obtain the patient's written general authorization which does not expire but may be revoked or limited at any time by the patient or the patient's authorized representative.

In making a release for research purposes and the provider who releases the records makes shall make a reasonable effort to determine that:

(i) the use or disclosure does not violate any limitations under which the record was collected;

(ii) the use or disclosure in individually identifiable form is necessary to accomplish the research or statistical purpose for which the use or disclosure is to be made;

(iii) the recipient has established and maintains adequate safeguards to protect the records from unauthorized disclosure, including a procedure for removal or destruction of information that identifies the patient; and

(iv) further use or release of the records in individually identifiable form to a person other than the patient without the patient's consent is prohibited.

(e) A person who negligently or intentionally releases a health record in violation of this subdivision, or who forges a signature on a consent form, or who obtains under false pretenses the consent form or health records of another person, or who, without the person's consent, alters a consent form, is liable to the patient for compensatory damages caused by an unauthorized release, plus costs and reasonable attorney's fees.

(f) Upon the written request of a spouse, parent, child, or sibling of a patient being evaluated for or diagnosed with mental illness, a provider shall inquire of a patient whether the patient wishes to authorize a specific individual to receive information regarding the patient's current and proposed course of treatment. If the patient so authorizes, the provider shall communicate to the designated individual the patient's current and proposed course of treatment. Paragraph (a) applies to consents given under this paragraph.

Sec. 35. Minnesota Statutes 1994, section 145.64, is amended by adding a subdivision, to read:

Subd. 3. [HENNEPIN COUNTY EMERGENCY SERVICES DATA.] The following data collected, created, or maintained by the quality committee of the Hennepin county emergency medical services advisory council when conducting a health care review activity of the emergency medical services function or services are private data on individuals or nonpublic data not on individuals:

(1) minutes of the quality committee of the Hennepin county emergency medical services advisory council;

(2) recorded conversations of committee meetings;

(3) recorded audio telephone or radio transmissions between emergency medical ambulance personnel in the ambulance, at the scene of the medical emergency, and physicians at the medical control hospital;

(4) written communications logs of the medical resource control center regarding medical and operational radio communications;

(5) computer-captured, computer-stored, computer-transferred, and computer-processed prehospital operational and medical data relating to a patient or service;

(6) ambulance service-specific reports, analysis, and comparisons as documented and reported by each ambulance service run contained on the Hennepin county prehospital data collection form;

(7) exception reports data indicating deficiencies in ambulance staffing;

(8) data documenting emergency response or transport by a basic life support ambulance;

(9) data documenting emergency response to a scheduled ambulance transport;

(10) operation-related information that is provided by emergency medical services providers;

(11) ambulance service report data provided by emergency medical service providers; and

(12) emergency ambulance service request data collected by the dispatch service regarding an emergency medical services run that provides operational, geographic, response time, hospital, address, and dispatcher information for each ambulance response request.

Sec. 36. Minnesota Statutes 1994, section 148B.66, is amended by adding a subdivision to read:

Subd. 3. [EXCHANGING INFORMATION.] (a) The office of mental health practice shall establish internal operating procedures for:

(1) exchanging information with state boards; agencies, including the office of ombudsman for mental health and mental retardation; health related and law enforcement facilities; departments responsible for licensing health-related occupations, facilities, and programs; and law enforcement personnel in this and other states; and

(2) coordinating investigations involving matters within the jurisdiction of more than one regulatory agency.

Establishment of the operating procedures is not subject to rulemaking under chapter 14.

(b) The procedures for exchanging information must provide for the forwarding to the entities described in paragraph (a), clause (1), of information and evidence, including the results of investigations, that are relevant to matters within the regulatory jurisdiction of the organizations in paragraph (a). The data have the same classification in the hands of the agency receiving the data as they have in the hands of the agency providing the data.

(c) The office of mental health practice shall establish procedures for exchanging information with other states regarding disciplinary action against licensed and unlicensed mental health practitioners.

(d) The office of mental health practice shall forward to another governmental agency any complaints received by the office that do not relate to the office's jurisdiction but that relate to matters within the jurisdiction of the other governmental agency. The agency to which a complaint is forwarded shall advise the office of mental health practice of the disposition of the complaint. A complaint or other information received by another governmental agency relating to a statute or rule that the office of mental health practice is empowered to enforce must be forwarded to the office to be processed in accordance with this section.

(e) The office of mental health practice shall furnish to a person who made a complaint a description of the actions of the office relating to the complaint.

Sec. 37. Minnesota Statutes 1994, section 148B.69, is amended by adding a subdivision to read:

Subd. 2a. [ACCESS TO CRIMINAL DATA.] In matters relating to the lawful activities of the office of mental health practice, the following agencies or persons may provide to the office, upon its request, arrest, investigative, or conviction information for review and copying:

(1) the bureau of criminal apprehension;

(2) a county attorney, county sheriff, or county agency;

(3) a local chief of police;

(4) another state;

(5) a court; or

(6) a national criminal record repository.

Sec. 38. Minnesota Statutes 1994, section 168.345, subdivision 3, is amended to read:

Subd. 3. [REQUESTS FOR INFORMATION; SURCHARGE ON FEE.] Except as otherwise provided in subdivision 4, the commissioner shall impose a surcharge of 50 cents on each fee charged by the commissioner under section 13.03, subdivision 3, for copies or electronic transmittal of public information concerning motor vehicle registrations. This surcharge only applies to a fee imposed in responding to a request made in person or by mail, or to a request for transmittal through a computer modem. The surcharge does not apply to the request of an individual for information concerning vehicles registered in that individual's name. The commissioner shall forward the surcharges collected under this subdivision to the commissioner of finance on a monthly basis. Upon receipt, the commissioner of finance shall credit the surcharges to the general fund.

Sec. 39. Minnesota Statutes 1994, section 168.345, is amended by adding a subdivision to read:

Subd. 4. [EXCEPTION TO FEE AND SURCHARGE.] Notwithstanding subdivision 3 or section 13.03, no fee or surcharge shall be imposed in responding to a request for public information concerning motor vehicle registrations if the requester gives the commissioner a signed statement that:

(1) the requester seeks the information on behalf of a community-based, nonprofit organization which has been designated by the local law enforcement agency to be a requester; and

(2) the information is needed in order to identify suspected prostitution law violators, controlled substance law violators, or health code violators.

The commissioner may not require a requester to make a certain minimum number of data requests nor limit a requester to a certain maximum number of data requests.

Sec. 40. Minnesota Statutes 1994, section 168.346, is amended to read:

168.346 [PRIVACY OF NAME OR RESIDENCE ADDRESS.]

(a) The registered owner of a motor vehicle may request in writing that the owner's residence address or name and residence address be classified as private data on individuals, as defined in section 13.02, subdivision 12. The commissioner shall grant the classification upon receipt of a signed statement by the owner that the classification is required for the safety of the owner or the owner's family, if the statement also provides a valid, existing address where the owner consents to receive service of process. The commissioner shall use the mailing address in place of the residence address in all documents and notices pertaining to the motor vehicle. The residence address or name and residence address and any information provided in the classification request, other than the mailing address, are private data on individuals and may be provided to requesting law enforcement agencies, probation and parole agencies, and public authorities, as defined in section 518.54, subdivision 9.

(b) An individual registered owner of a motor vehicle must be informed in a clear and conspicuous manner on the forms for issuance or renewal of titles and registrations, that the owner's personal information may be disclosed to any person who makes a request for the personal information, and that, except for uses permitted by United States Code, title 18, section 2721, clause (b), or section 168.345, subdivision 4, the registered owner may prohibit disclosure of the personal information by so indicating on the form.

(c) At the time of registration or renewal, the individual registered owner of a motor vehicle must also be informed in a clear and conspicuous manner on the forms that the owner's personal information may be used, rented, or sold solely for bulk distribution by organizations for business purposes including surveys, marketing, and solicitation, and that the registered owner may prohibit disclosure of the personal information by so indicating on the form. The commissioner also shall implement methods and procedures that enable the registered owner to request that bulk surveys, marketing, or solicitation not be directed to the owner. If the registered owner so requests, the commissioner shall implement the request in a timely manner and the personal information may not be so used.

(d) To the extent permitted by United States Code, title 18, section 2721, data on individuals provided to register a motor vehicle is public data on individuals and shall be disclosed as permitted by United States Code, title 18, section 2721, clause (b).

Sec. 41. Minnesota Statutes 1994, section 171.12, subdivision 7, is amended to read:

Subd. 7. [PRIVACY OF RESIDENCE ADDRESS.] (a) An applicant for a driver's license or a Minnesota identification card may request that the applicant's residence address be classified as private data on individuals, as defined in section 13.02, subdivision 12. The commissioner shall grant the classification upon receipt of a signed statement by the individual that the classification is required for the safety of the applicant or the applicant's family, if the statement also provides a valid, existing address where the applicant consents to receive service of process. The commissioner shall use the mailing address in place of the residence address in all documents and notices pertaining to the driver's license or identification card. The residence address and any information provided in the classification request, other than the mailing address, are private data on individuals and may be provided to requesting law enforcement agencies, probation and parole agencies, and public authorities, as defined in section 518.54, subdivision 9.

(b) An applicant for a driver's license or a Minnesota identification card must be informed in a clear and conspicuous manner on the forms for the issuance or renewal that the applicant's personal information may be disclosed to any person who makes a request for the personal information, and that, except for uses permitted by United States Code, title 18, section 2721, clause (b), the applicant may prohibit disclosure of the personal information by so indicating on the form.

(c) An applicant for a driver's license or a Minnesota identification card must be also informed in a clear and conspicuous manner on the forms that the applicant's personal information may be used, rented, or sold solely for bulk distribution by organizations for business purposes, including surveys, marketing, or solicitation, and that the applicant may prohibit disclosure of the personal information by so indicating on the form. The commissioner also shall implement methods and procedures that enable the applicant to request that bulk surveys, marketing, or solicitation not be directed to the applicant. If the applicant so requests, the commissioner shall implement the request in a timely manner and the personal information may not be so used.

(d) To the extent permitted by United States Code, title 18, section 2721, data on individuals provided to obtain a Minnesota identification card or a driver's license is public data on individuals and shall be disclosed as permitted by United States Code, title 18, section 2721, clause (b).

Sec. 42. Minnesota Statutes 1994, section 171.12, is amended by adding a subdivision to read:

Subd. 7a. [DISCLOSURE OF PERSONAL INFORMATION.] The commissioner shall disclose personal information where the use is related to the operation of a motor vehicle, including personal injury or property damage caused by the motor vehicle, or to public safety, including public dissemination. The use of personal information is related to public safety if it concerns the physical safety or security of drivers, vehicles, pedestrians, or property.

Sec. 43. Minnesota Statutes 1995 Supplement, section 256.998, subdivision 7, is amended to read:

Subd. 7. [ACCESS TO DATA.] The commissioner of human services shall retain the information reported to the work reporting system for a period of six months. Data in the work reporting system may be disclosed to the public authority responsible for child support enforcement, federal agencies, the department of economic security for the purposes of detecting and preventing reemployment insurance fraud and for determining and reporting outcomes of employment and training programs, and state and local agencies of other states for the purposes of enforcing state and federal laws governing child support.

Sec. 44. Minnesota Statutes 1994, section 260.161, subdivision 1, is amended to read:

Subdivision 1. [RECORDS REQUIRED TO BE KEPT.] (a) The juvenile court judge shall keep such minutes and in such manner as the court deems necessary and proper. Except as provided in paragraph (b), the court shall keep and maintain records pertaining to delinquent adjudications until the person reaches the age of 28 years and shall release the records on an individual to another juvenile court that has jurisdiction of the juvenile, to a requesting adult court for purposes of sentencing, or to an adult court or juvenile court as required by the right of confrontation of either the United States Constitution or the Minnesota Constitution. The juvenile court shall provide, upon the request of any other juvenile court, copies of the records concerning adjudications involving the particular child. The court also may provide copies of records concerning delinquency adjudications, on request, to law enforcement agencies,

probation officers, and corrections agents if the court finds that providing these records serves public safety or is in the best interests of the child. The records have the same data classification in the hands of the agency receiving them as they had in the hands of the court.

The court shall also keep an index in which files pertaining to juvenile matters shall be indexed under the name of the child. After the name of each file shall be shown the file number and, if ordered by the court, the book and page of the register in which the documents pertaining to such file are listed. The court shall also keep a register properly indexed in which shall be listed under the name of the child all documents filed pertaining to the child and in the order filed. The list shall show the name of the document and the date of filing thereof. The juvenile court legal records shall be deposited in files and shall include the petition, summons, notice, findings, orders, decrees, judgments, and motions and such other matters as the court deems necessary and proper. Unless otherwise provided by law, all court records shall be open at all reasonable times to the inspection of any child to whom the records relate, and to the child's parent and guardian.

(b) The court shall retain records of the court finding that a juvenile committed an act that would be a violation of, or an attempt to violate, section 609.342, 609.343, 609.344, or 609.345, felony or gross misdemeanor level offense until the offender reaches the age of 28. If the offender commits another violation of sections 609.342 to 609.345 a felony as an adult, or the court convicts a child as an extended jurisdiction juvenile, the court shall retain the juvenile records for as long as the records would have been retained if the offender had been an adult at the time of the juvenile offense. This paragraph does not apply unless the juvenile was provided counsel as required by section 260.155, subdivision 2.

Sec. 45. Minnesota Statutes 1994, section 260.161, subdivision 1a, is amended to read:

Subd. 1a. [RECORD OF ADJUDICATIONS; NOTICE TO BUREAU OF CRIMINAL APPREHENSION FINDINGS.] (a) The juvenile court shall forward to the bureau of criminal apprehension, the sentencing guidelines commission, and the department of corrections the following data on all juveniles adjudicated delinquent for having alleged to have committed felony-level criminal sexual conduct felony or gross misdemeanor level offenses:

(1) the name and birth date of the juvenile, including any of the juvenile's known aliases or street names;

(2) the type of act for which the juvenile was adjudicated delinquent alleged to have committed and date of the offense; and

(3) the date and county of the adjudication court's finding; and

(4) the court's finding and case disposition.

(b) The bureau, the sentencing guidelines commission, and the department of corrections shall retain data on a juvenile not found to have committed the alleged felony or gross misdemeanor level offense until the juvenile reaches the age of 18.

(c) The bureau, the sentencing guidelines commission, and the department of corrections shall retain data on a juvenile found to have committed a felony or gross misdemeanor level offense until the offender reaches the age of 28. If the offender commits another a felony violation of sections 609.342 to 609.345 as an adult, the bureau, the sentencing guidelines commission, and the department of corrections shall retain the data for as long as the data would have been retained if the offender had been an adult at the time of the juvenile offense.

(c) (d) The juvenile court shall forward to the bureau, the sentencing guidelines commission, and the department of corrections the following data on individuals convicted as extended jurisdiction juveniles:

(1) the name and birthdate of the offender, including any of the juvenile's known aliases or street names;

(2) the crime committed by the offender and the date of the crime; and

(3) the date and county of the conviction; and

(4) the case disposition.

The court shall notify the bureau, the sentencing guidelines commission, and the department of corrections whenever it executes an extended jurisdiction juvenile's adult sentence under section 260.126, subdivision 5.

(d) (e) The bureau, the sentencing guidelines commission, and the department of corrections shall retain the extended jurisdiction juvenile data for as long as the data would have been retained if the offender had been an adult at the time of the offense. Data retained on individuals under this subdivision are private data under section 13.02, except that extended jurisdiction juvenile data becomes public data under section 13.87, subdivision 2, when the juvenile court notifies the bureau that the individual's adult sentence has been executed under section 260.126, subdivision 5.

Sec. 46. Minnesota Statutes 1995 Supplement, section 260.161, subdivision 3, is amended to read:

Subd. 3. [PEACE OFFICER AND CORRECTIONAL RECORDS OF CHILDREN.] (a) Except for records relating to an offense where proceedings are public under section 260.155, subdivision 1, peace officers' records of children who are or may be delinquent or who may be engaged in criminal acts shall be kept separate from records of persons 18 years of age or older and are private data but shall be disseminated: (1) by order of the juvenile court, (2) as required by section 126.036, (3) as authorized under section 13.82, subdivision 2, (4) to the child or the child's parent or guardian unless disclosure of a record would interfere with an ongoing investigation, or (5) as otherwise provided in this subdivision. Except as provided in paragraph (c), no photographs of a child taken into custody may be taken without the consent of the juvenile court unless the child is alleged to have violated section 169.121 or 169.129. Peace officers' records containing data about children who are victims of crimes or witnesses to crimes must be administered consistent with section 13.82, subdivisions 2, 3, 4, and 10. Any person violating any of the provisions of this subdivision shall be guilty of a misdemeanor.

In the case of computerized records maintained about juveniles by peace officers, the requirement of this subdivision that records about juveniles must be kept separate from adult records does not mean that a law enforcement agency must keep its records concerning juveniles on a separate computer system. Law enforcement agencies may keep juvenile records on the same computer as adult records and may use a common index to access both juvenile and adult records so long as the agency has in place procedures that keep juvenile records in a separate place in computer storage and that comply with the special data retention and other requirements associated with protecting data on juveniles.

(b) Nothing in this subdivision prohibits the exchange of information by law enforcement agencies if the exchanged information is pertinent and necessary to the requesting agency in initiating, furthering, or completing a criminal investigation.

(c) A photograph may be taken of a child taken into custody pursuant to section 260.165, subdivision 1, clause (b), provided that the photograph must be destroyed when the child reaches the age of 19 years. If the child is taken into custody for allegedly committing a felony or gross misdemeanor-level delinquent act and is detained in a secure detention facility, the facility must take the child's fingerprints and booking photograph as required by section 299C.10, subdivision 1. The commissioner of corrections may photograph juveniles whose legal custody is transferred to the commissioner. Photographs of juveniles authorized by this paragraph may be used only for institution management purposes, case supervision by parole agents, and to assist law enforcement agencies to apprehend juvenile offenders. The commissioner shall maintain photographs of juveniles in the same manner as juvenile court records and names under this section.

(d) Traffic investigation reports are open to inspection by a person who has sustained physical harm or economic loss as a result of the traffic accident. Identifying information on juveniles who are parties to traffic accidents may be disclosed as authorized under section 13.82, subdivision 4, and accident reports required under section 169.09 may be released under section 169.09, subdivision 13, unless the information would identify a juvenile who was taken into custody or who is suspected of committing an offense that would be a crime if committed by an adult, or would associate a juvenile with the offense, and the offense is not a minor traffic offense under section 260.193.

(e) A law enforcement agency shall notify the principal or chief administrative officer of a juvenile's school of an incident occurring within the agency's jurisdiction if:

(1) the agency has probable cause to believe that the juvenile has committed an offense that would be a crime if committed as an adult, that the victim of the offense is a student or staff member of the school, and that notice to the school is reasonably necessary for the protection of the victim; or

(2) the agency has probable cause to believe that the juvenile has committed an offense described in subdivision 1b, paragraph (a), clauses (1) to (3), that would be a crime if committed by an adult, regardless of whether the victim is a student or staff member of the school.

A law enforcement agency is not required to notify the school under this paragraph if the agency determines that notice would jeopardize an ongoing investigation. Notwithstanding section 138.17, data from a notice received from a law enforcement agency under this paragraph must be destroyed when the juvenile graduates from the school or at the end of the academic year when the juvenile reaches age 23, whichever date is earlier. For purposes of this paragraph, "school" means a public or private elementary, middle, or secondary school.

(f) In any county in which the county attorney operates or authorizes the operation of a juvenile prepetition or pretrial diversion program, a law enforcement agency or county attorney's office may provide the juvenile diversion program with data concerning a juvenile who is a participant in or is being considered for participation in the program.

(g) Upon request of a local social service agency, peace officer records of children who are or may be delinquent or who may be engaged in criminal acts may be disseminated to the agency to promote the best interests of the subject of the data.

Sec. 47. Minnesota Statutes 1995 Supplement, section 268.12, subdivision 12, is amended to read:

Subd. 12. [INFORMATION.] Except as hereinafter otherwise provided, data gathered from any employing unit or individual pursuant to the administration of sections 268.03 to 268.231, and from any determination as to the benefit rights of any individual are private data on individuals or nonpublic data not on individuals as defined in section 13.02, subdivisions 9 and 12, and may not be disclosed except pursuant to this subdivision or a court order section 13.05. These data may be disseminated to and used by the following agencies without the consent of the subject of the data:

(a) state and federal agencies specifically authorized access to the data by state or federal law;

(b) any agency of this or any other state; or any federal agency charged with the administration of an employment security law or the maintenance of a system of public employment offices;

(c) local human rights groups within the state which have enforcement powers;

(d) the department of revenue shall have access to department of economic security private data on individuals and nonpublic data not on individuals only to the extent necessary for enforcement of Minnesota tax laws;

(e) public and private agencies responsible for administering publicly financed assistance programs for the purpose of monitoring the eligibility of the program's recipients;

(f) the department of labor and industry on an interchangeable basis with the department of economic security subject to the following limitations and notwithstanding any law to the contrary:

(1) the department of economic security shall have access to private data on individuals and nonpublic data not on individuals for uses consistent with the administration of its duties under sections 268.03 to 268.231; and

(2) the department of labor and industry shall have access to private data on individuals and nonpublic data not on individuals for uses consistent with the administration of its duties under state law;

(g) the department of trade and economic development may have access to private data on individual employing units and nonpublic data not on individual employing units for its internal use only; when received by the department of trade and economic development, the data remain private data on individuals or nonpublic data;

(h) local and state welfare agencies for monitoring the eligibility of the data subject for assistance programs, or for any employment or training program administered by those agencies, whether alone, in combination with another welfare agency, or in conjunction with the department of economic security;

(i) local, state, and federal law enforcement agencies for the sole purpose of ascertaining the last known address and employment location of the data subject, provided the data subject is the subject of a criminal investigation; and

(j) the department of health may have access to private data on individuals and nonpublic data not on individuals solely for the purposes of epidemiologic investigations.

Data on individuals and employing units which are collected, maintained, or used by the department in an investigation pursuant to section 268.18, subdivision 3, are confidential as to data on individuals and protected nonpublic data not on individuals as defined in section 13.02, subdivisions 3 and 13, and shall not be disclosed except pursuant to statute or court order or to a party named in a criminal proceeding, administrative or judicial, for preparation of a defense.

Tape recordings and transcripts of recordings of proceedings conducted in accordance with section 268.105 and exhibits received into evidence at those proceedings are private data on individuals and nonpublic data not on individuals and shall be disclosed only pursuant to the administration of section 268.105, or pursuant to a court order.

Aggregate data about employers compiled from individual job orders placed with the department of economic security are private data on individuals and nonpublic data not on individuals as defined in section 13.02, subdivisions 9 and 12, if the commissioner determines that divulging the data would result in disclosure of the identity of the employer. The general aptitude test battery and the nonverbal aptitude test battery as administered by the department are also classified as private data on individuals or nonpublic data.

Data on individuals collected, maintained, or created because an individual applies for benefits or services provided by the energy assistance and weatherization programs administered by the department of economic security is private data on individuals and shall not be disseminated except pursuant to section 13.05, subdivisions 3 and 4.

Data gathered by the department pursuant to the administration of sections 268.03 to 268.231 shall not be made the subject or the basis for any suit in any civil proceedings, administrative or judicial, unless the action is initiated by the department.

The department may enter into an agreement to provide electronic access to employment and wage information on an individual to a third party, if the individual who is the subject of the information has consented to its release to the party.

Sec. 48. Minnesota Statutes 1995 Supplement, section 299A.61, is amended to read:

299A.61 [CRIMINAL ALERT NETWORK.]

Subdivision 1. [ESTABLISHMENT.] The commissioner of public safety, in cooperation with the commissioner of administration, shall develop and maintain an integrated criminal alert network to facilitate the communication of crime prevention information by electronic means among state agencies, law enforcement officials, and the private sector. The network shall disseminate data regarding the commission of crimes, including information on missing and endangered children, and attempt to reduce theft and other crime by the use of electronic transmission of information.

Subd. 2. [DATA ON MEMBERS.] Data that identify individuals or businesses as members of the criminal alert network, including names, addresses, and telephone and fax numbers, are private data on individuals or nonpublic data, as defined in section 13.02, subdivision 9 or 12.

Sec. 49. Minnesota Statutes 1994, section 299C.095, is amended to read:

299C.095 [SYSTEM FOR IDENTIFICATION OF ADJUDICATED JUVENILES JUVENILE OFFENDERS.]

The bureau shall establish a system for recording the data on adjudicated juveniles received from the juvenile courts under section 260.161, subdivision 1a administer and maintain the computerized juvenile criminal history record system. The data in the system are private data as defined in section 13.02, subdivision 12, but are accessible to criminal justice agencies as defined in section 13.02, subdivision 3a, to all trial courts and appellate courts, and to a person who has access to the juvenile court records as provided in section 260.161 or under court rule.

Sec. 50. Minnesota Statutes 1995 Supplement, section 299C.10, subdivision 1, is amended to read:

Subdivision 1. [LAW ENFORCEMENT DUTY.] (a) It is hereby made the duty of the sheriffs of the respective counties and, of the police officers in cities of the first, second, and third classes, under the direction of the chiefs of police in such cities, and of community corrections agencies operating secure juvenile detention facilities to take or cause to be taken immediately finger and thumb prints, photographs, distinctive physical mark identification data, and such other identification data as may be requested or required by the superintendent of the bureau; of all persons

arrested for a felony, gross misdemeanor, of all juveniles committing felonies as distinguished from those committed by adult offenders, of all persons reasonably believed by the arresting officer to be fugitives from justice, of all persons in whose possession, when arrested, are found concealed firearms or other dangerous weapons, burglar tools or outfits, high-power explosives, or articles, machines, or appliances usable for an unlawful purpose and reasonably believed by the arresting officer to be intended for such purposes, and within 24 hours thereafter to forward such fingerprint records and other identification data on such forms and in such manner as may be prescribed by the superintendent of the bureau of criminal apprehension.

(b) Effective August 1, 1997, the identification reporting requirements shall also apply to persons committing misdemeanor offenses, including violent and enhanceable crimes, and juveniles committing gross misdemeanors. In addition, the reporting requirements shall include any known aliases or street names of the offenders.

Sec. 51. Minnesota Statutes 1994, section 299C.46, subdivision 2, is amended to read:

Subd. 2. [CRIMINAL JUSTICE AGENCY DEFINED.] For the purposes of sections 299C.46 to 299C.49, "criminal justice agency" shall mean means an agency of the state or an agency of a political subdivision charged with detection, enforcement, prosecution, adjudication or incarceration in respect to the criminal or traffic laws of this state. This definition also includes all sites identified and licensed as a detention facility by the commissioner of corrections under section 241.021.

Sec. 52. [EFFECTIVE DATE.]

Sections 45, 46, and 50 are effective August 1, 1996, and apply to offenses occurring on or after that date.

Section 1. Minnesota Statutes 1994, section 13.99, subdivision 19c, is amended to read:

Subd. 19c. [DATA ANALYSIS DATA.] Data collected by the data analysis unit are classified under section 62J.30, subdivision 7. Data collected for purposes of sections 62J.301 to 62J.42 that identify patients or providers are classified under section 62J.321, subdivision 5.

Sec. 2. Minnesota Statutes 1994, section 13.99, is amended by adding a subdivision to read:

Subd. 19i. [HEALTH DATA INSTITUTE.] Health data institute data are classified under section 62J.452, subdivision 2.

Sec. 3. Minnesota Statutes 1994, section 13.99, is amended by adding a subdivision to read:

Subd. 19j. [ESSENTIAL COMMUNITY PROVIDER.] Data on applications for designation as an essential community provider are classified under section 62Q.19, subdivision 2.

Sec. 4. Minnesota Statutes 1994, section 13.99, is amended by adding a subdivision to read:

Subd. 20c. [SELF-INSURERS ADVISORY COMMITTEE.] Data received by the self-insurers' advisory committee from the commissioner is classified under section 79A.02, subdivision 2.

Sec. 5. Minnesota Statutes 1994, section 13.99, is amended by adding a subdivision to read:

Subd. 21e. [EXCLUSION OF WASTE MATERIALS.] Data included in a document submitted by a transfer station under section 115A.84, subdivision 5, is classified under that subdivision.

Sec. 6. Minnesota Statutes 1994, section 13.99, is amended by adding a subdivision to read:

Subd. 28b. [NURSING HOME RESIDENTS.] Access to certain data on assessments of care and services to nursing home residents is governed by section 144.0721, subdivision 2.

Sec. 7. Minnesota Statutes 1994, section 13.99, is amended by adding a subdivision to read:

Subd. 31a. [VITAL RECORDS.] Physical access to vital records is governed by section 144.225, subdivision 1.

Sec. 8. Minnesota Statutes 1995 Supplement, section 13.99, subdivision 38b, is amended to read:

Subd. 38b. [LEAD EXPOSURE DATA.] Data on individuals exposed to lead in their residences are classified under section sections 144.874, subdivision 1, 144.9502, subdivision 9, and 144.9504, subdivision 2.

Sec. 9. Minnesota Statutes 1994, section 13.99, is amended by adding a subdivision to read:

Subd. 42b. [REPORT OF VIOLATIONS.] Certain reports of violations submitted to the board of medical practice are classified under section 147.121.

Sec. 10. Minnesota Statutes 1994, section 13.99, is amended by adding a subdivision to read:

Subd. 85a. [CERTIFICATE OF VALUE.] Data in a real estate certificate of value filed with the county auditor is classified under section 272.115, subdivision 1.

Sec. 11. Minnesota Statutes 1994, section 13.99, is amended by adding a subdivision to read:

Subd. 86a. [POLITICAL CONTRIBUTION REFUND.] Certain political contribution refund data in the revenue department are classified under section 290.06, subdivision 23.

Sec. 12. Minnesota Statutes 1994, section 13.99, is amended by adding a subdivision to read:

Subd. 86b. [GROSS EARNINGS TAXES.] Certain patient data provided to the department of revenue under chapter 295 are classified under section 295.57, subdivision 2.

Sec. 13. Minnesota Statutes 1994, section 13.99, is amended by adding a subdivision to read:

Subd. 92g. [LOTTERY PRIZE WINNER.] Certain data on lottery prize winners are classified under section 349A.08, subdivision 9.

Sec. 14. Minnesota Statutes 1994, section 13.99, is amended by adding a subdivision to read:

Subd. 100a. [CHILD SUPPORT ATTORNEYS.] Certain data provided by an applicant or recipient of child support enforcement services are classified under section 518.255."

Delete the title and insert:

"A bill for an act relating to privacy; providing for the classification of and access to government data; indexing statutes that restrict data access and are located outside chapter 13; defining criminal justice agency; authorizing disclosure of certain personnel data to government entities for protection purposes; authorizing the release and disclosure of certain data to the department of children, families, and learning and the commissioner of health; modifying the requirements for health care provider identification numbers; establishing procedures for disclosing certain nonpublic data related to group purchasers; requiring the office of mental health practice to establish procedures for the exchange of information; providing that no fee or surcharge may be imposed for requests for public information concerning motor vehicle registration; requiring the juvenile court to forward to the bureau of criminal apprehension, sentencing guidelines commission, and the department of corrections certain data relating to juveniles alleged to have committed crimes; classifying data that identifies members of the criminal alert network; requiring the bureau of criminal apprehension to maintain the computerized juvenile criminal history record system; amending Minnesota Statutes 1994, sections 13.02, by adding a subdivision; 13.32, subdivisions 3 and 5; 13.37, subdivisions 1 and 2; 13.40, subdivision 2; 13.43, by adding a subdivision; 13.82, subdivision 13, and by adding a subdivision; 13.87, subdivisions 1 and 2; 13.99, subdivision 19c, and by adding subdivisions; 62J.51, by adding subdivisions; 62J.56, subdivision 2; 62J.60, subdivisions 2 and 3; 144.225, subdivision 2, and by adding a subdivision; 145.64, by adding a subdivision; 148B.66, by adding a subdivision; 148B.69, by adding a subdivision; 168.345, subdivision 3, and by adding a subdivision; 168.346; 171.12, subdivision 7, and by adding a subdivision; 260.161, subdivisions 1 and 1a; 299C.095; and 299C.46, subdivision 2; Minnesota Statutes 1995 Supplement, sections 13.43, subdivision 2; 13.46, subdivision 2; 13.99, subdivision 38b; 62J.451, subdivisions 7, 9, and 12; 62J.54, subdivisions 1, 2, and 3; 62J.58; 62Q.03, subdivision 9; 144.335, subdivision 3a; 256.998, subdivision 7; 260.161, subdivision 3; 268.12, subdivision 12; 299A.61; and 299C.10, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 13."

With the recommendation that when so amended the bill pass.

The report was adopted.

Tunheim from the Committee on Transportation and Transit to which was referred:

H. F. No. 2402, A bill for an act relating to motor vehicles; abolishing vehicle registration tax exemption for representatives of foreign powers; allowing special license plates for certain persons to be issued to owner of certain trucks; removing restriction on time to apply for disability plates; changing fee and certain administrative procedures relating to the registration program for fleet vehicles; abolishing requirements to keep records of motor vehicles not using the highways and to prepare certain unnecessary reports; making various technical changes; amending Minnesota Statutes 1994, sections 168.021, subdivision 1; 168.12, subdivision 2b; 168.127; 168.325, subdivision 1; 168.33, subdivision 6; and 168.34; Minnesota Statutes 1995 Supplement, sections 168.012, subdivision 1; and 168.10, subdivision 1i; repealing Minnesota Statutes 1994, section 168.33, subdivisions 4 and 5.

Reported the same back with the following amendments:

Page 6, line 15, strike everything after the period

Page 6, strike line 16

Page 6, line 26, reinstate "or authorized"

Page 6, line 28, before the period, insert "deputy registrar"

Page 6, line 36, before "destruction" insert "deleting vehicles from a fleet, including" and delete "these items" and insert "the license plates and registration cards"

With the recommendation that when so amended the bill pass.

The report was adopted.

Anderson, R., from the Committee on Health and Human Services to which was referred:

H. F. No. 2485, A bill for an act relating to health; requiring a utilization review organization to provide patients with notification of its determination; amending Minnesota Statutes 1994, sections 62M.05, subdivision 3; and 72A.201, subdivision 4a.

Reported the same back with the following amendments:

Page 1, line 18, delete the new language

Page 2, after line 20, insert:

"(c) When an initial determination is made to certify and the claims administrator disagrees with the determination, the claims administrator shall send written notification to the enrollee within ten business days of the determination or shall maintain an audit trail of the determination and telephone notification in accordance with section 72A.201, subdivision 4b."

Page 2, delete section 2 and insert:

"Sec. 2. Minnesota Statutes 1994, section 72A.201, is amended by adding a subdivision to read:

Subd. 4b. [NOTIFICATION.] If a policy of accident and sickness insurance or a subscriber contract requires preauthorization approval for any nonemergency services or benefits:

(1) the utilization review organization makes an initial determination to certify; and

(2) the claims administrator disagrees with the determination, the claims administrator shall send written notification to the enrollee within ten business days of the determination or shall maintain an audit trail of the determination and telephone notification."

Amend the title as follows:

Page 1, line 6, delete "subdivision 4a" and insert "by adding a subdivision"

With the recommendation that when so amended the bill pass.

The report was adopted.

Skoglund from the Committee on Judiciary to which was referred:

H. F. No. 2633, A bill for an act relating to health professions; modifying provisions relating to sexual misconduct; amending Minnesota Statutes 1994, sections 13.99, subdivision 44; 147.01, subdivision 4; and 147.091, by adding a subdivision; proposing coding for new law in Minnesota Statutes, chapter 147.

Reported the same back with the recommendation that the bill pass.

The report was adopted.

Anderson, R., from the Committee on Health and Human Services to which was referred:

H. F. No. 2639, A bill for an act relating to group residential housing; clarifying a rate exception; amending Minnesota Statutes 1994, section 256I.05, subdivision 2.

Reported the same back with the recommendation that the bill pass.

The report was adopted.

Long from the Committee on Local Government and Metropolitan Affairs to which was referred:

H. F. No. 2670, A bill for an act relating to the Minnesota municipal board; clarifying authority and procedures; amending Minnesota Statutes 1994, sections 414.01, subdivisions 1, 2, 6a, 7a, 8, 12, and 16; 414.02, subdivision 3; 414.031, subdivision 4; 414.0325, subdivisions 1, 1a, and 3; 414.033, subdivision 5, and by adding a subdivision; 414.041, subdivisions 3 and 5; and 414.061, subdivisions 4 and 5; repealing Minnesota Statutes 1994, sections 414.01, subdivisions 3, 3a, and 4; and 414.061, subdivision 4a.

Reported the same back with the following amendments:

Page 4, line 35, after "a" insert "copy of the"

Page 5, line 25, reinstate the stricken language and insert a comma and after "planning" insert a comma

Page 5, lines 26 and 27, reinstate the stricken language

Page 8, line 25, reinstate the stricken "physical development" and before "planning" insert a comma and after "planning" insert a comma

Page 8, lines 27 and 28, reinstate the stricken language

Page 8, line 29, reinstate the stricken language and delete "adjacent units of local government" and insert "land uses"

Page 12, line 27, delete "414.032" and insert "414.031"

With the recommendation that when so amended the bill pass.

The report was adopted.

Kahn from the Committee on Governmental Operations to which was referred:

H. F. No. 2704, A bill for an act relating to transportation; abolishing transportation regulation board and transferring duties and powers to commissioner of transportation; modifying laws governing motor carriers; clarifying definition of warehouse operator; making technical changes; appropriating money; amending Minnesota Statutes 1994, sections 168.013, subdivision 1e; 174.02, subdivision 5; 174.03, by adding a subdivision; 218.031, subdivisions 1, 2, and 8; 218.041, subdivisions 2, 4, and 5; 221.011, subdivisions 7, 8, 9, 14, and by adding subdivisions; 221.021; 221.022; 221.025; 221.041; 221.051, subdivision 1, and by adding a subdivision; 221.061; 221.071, subdivision 2; 221.081; 221.111; 221.121, subdivisions 1 and 4; 221.122, subdivision 1; 221.124, subdivision 2; 221.141, subdivision 1; 221.151, subdivisions 1 and 2; 221.161, subdivision 1; 221.171, subdivision 1; 221.172, subdivisions 3 and 9; 221.185, subdivisions 1, 2, 4, 5a, and 9; 221.281; 221.291, subdivisions 4 and 5; and 231.01, subdivision 5; Minnesota Statutes 1995 Supplement, sections 15A.081, subdivision 1; 221.131, subdivision 3; and 221.132; proposing coding for new law in Minnesota Statutes, chapters 174; and 221; repealing Minnesota Statutes 1994, sections 174A.01; 174A.02; 174A.03; 174A.04; 174A.05; 174A.06; 218.011, subdivision 7; 218.021; 218.025; 218.031, subdivision 7; 218.041, subdivision 7; 221.011, subdivisions 2b, 10, 12, 24, 25, 28, 35, 36, 38, 39, 40, 41, and 46; 221.072; 221.101; 221.121, subdivisions 3, 5, 6, 6c, 6d, 6e, 6f, and 6g; 221.151, subdivision 3; 221.152; 221.153; 221.172, subdivisions 4, 5, 6, 7, and 8; 221.296; 221.54; and 221.55.

Reported the same back with the following amendments:

Page 42, line 15, before "The" insert "(a)"

Page 42, line 19, delete the first comma and insert "and" and delete ", and personnel"

Page 42, after line 23, insert:

"(b) The classified and unclassified positions of the transportation regulation board, except positions to which members are appointed by the governor, are transferred with their incumbents to the department of transportation. Personnel changes are effective on the effective date of this section. This subdivision does not change the rights enjoyed before that date under the managerial or commissioner's plan under Minnesota Statutes, section 43A.18, or the terms of an agreement between an exclusive representative of public employees and the state or one of its appointing authorities."

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Economic Development, Infrastructure and Regulation Finance.

The report was adopted.

Skoglund from the Committee on Judiciary to which was referred:

H. F. No. 2842, A bill for an act relating to crime; requiring victim's account of domestic assault or harassment to be considered in determining arrested person's release; requiring notice to certain law enforcement agencies, battered women's programs, and sexual assault programs of release of arrested persons; requiring notice of bail hearings to victims of domestic assault and harassment; amending Minnesota Statutes 1994, section 629.72, by adding a subdivision; Minnesota Statutes 1995 Supplement, section 629.72, subdivisions 2 and 6.

Reported the same back with the following amendments:

Page 3, line 7, delete "any"

Page 3, line 9, after "and" insert ", at the victim's request"

Page 3, line 31, after "notify" insert ": (1)"

Page 3, line 32, delete the period and insert "; (2)" and delete "notice must"

Page 3, line 33, delete "be given to" and delete the period and insert "; and (3)"

Page 3, line 34, delete "notice must be given to"

With the recommendation that when so amended the bill pass.

The report was adopted.

Munger from the Committee on Environment and Natural Resources to which was referred:

H. F. No. 2873, A bill for an act relating to state lands; authorizing sales of certain tax-forfeited lands that border public water in Anoka county.

Reported the same back with the recommendation that the bill pass and be placed on the Consent Calendar.

The report was adopted.

Long from the Committee on Local Government and Metropolitan Affairs to which was referred:

H. F. No. 2889, A bill for an act relating to local government; the cities of Norwood and Young America in Carver county and their consolidation into the city of Norwood-Young America; repealing Extra Session Laws 1857, chapter 18, section 50; Special Laws 1874, chapter 78; Special Laws 1879, chapters 4 and 152; Special Laws 1881, chapters 31 and 101; Special Laws 1889, chapter 24; and Special Laws 1891, chapters 211 and 272.

Reported the same back with the recommendation that the bill pass and be placed on the Consent Calendar.

The report was adopted.

Skoglund from the Committee on Judiciary to which was referred:

H. F. No. 2930, A bill for an act relating to traffic regulations; requiring driver to stop to yield right-of-way to pedestrian within crosswalk; increasing penalty for failure to yield to pedestrian in crosswalk; directing commissioner to include information pertaining to crosswalk right-of-way in driver's manual; requiring preparation and distribution of publicity concerning traffic regulations; amending Minnesota Statutes 1994, section 171.13, by adding a subdivision; Minnesota Statutes 1995 Supplement, section 169.21, subdivision 2.

Reported the same back with the following amendments:

Page 2, line 24, delete "each" and insert "the next revised"

With the recommendation that when so amended the bill pass.

The report was adopted.

Long from the Committee on Local Government and Metropolitan Affairs to which was referred:

H. F. No. 2941, A bill for an act relating to local government; limiting a certain exclusion from net debt to personal property transactions; amending Minnesota Statutes 1994, section 465.71.

Reported the same back with the recommendation that the bill pass and be re-referred to the Committee on Taxes.

The report was adopted.

Anderson, R., from the Committee on Health and Human Services to which was referred:

H. F. No. 2952, A bill for an act relating to human services; requesting the commissioners of health and human services to seek a federal waiver.

Reported the same back with the following amendments:

Page 1, after line 5, insert:

"Section 1. Minnesota Statutes 1994, section 144A.04, is amended by adding a subdivision to read:

Subd. 10. [ASSESSMENTS FOR SHORT-STAY RESIDENTS.] Upon federal approval, a nursing home is not required to perform a resident assessment on a resident expected to remain in the facility for 30 days or less. A short-stay resident transferring from a hospital to a nursing home must have a plan of care developed at the hospital before admission to the nursing home. If a short-stay resident remains in the nursing home longer than 30 days, the nursing home must perform the resident assessment in accordance with sections 144.072 to 144.0722 within 40 days of the resident's admission."

Page 1, line 6, delete "Section 1." and insert "Sec. 2."

Page 1, line 16, delete "and"

Page 1, line 18, before the period, insert ";

(5) allow the state to commingle Medicare and alternative care grant funds for individuals eligible for both programs; and

(6) permit a nursing home to satisfy the financial requirement under Code of Federal Regulations, title 42, section 483.10 (c)(7)(1994), through self-insurance mechanisms, including a savings account listing the commissioner on the account or a letter of credit"

Amend the title as follows:

Page 1, line 4, before the period, insert "; amending Minnesota Statutes 1994, section 144A.04, by adding a subdivision"

With the recommendation that when so amended the bill pass.

The report was adopted.

Kahn from the Committee on Governmental Operations to which was referred:

H. F. No. 2953, A bill for an act relating to state government; requiring an offer of long-term care insurance to retiring state employees; amending Minnesota Statutes 1995 Supplement, section 43A.316, by adding a subdivision.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [LONG-TERM CARE COVERAGE.]

The commissioner of employee relations, with the assistance of the labor-management committee, shall consider an optional long-term care insurance benefit that may be offered to retiring state employees. The benefit would provide nursing home and/or home care benefits. Premiums for the benefit would be paid for by retiring employees who choose to elect this coverage. The commissioner shall report to the legislature by January 15, 1997.

Sec. 2. [EFFECTIVE DATE.]

Section 1 is effective the day following final enactment."

Delete the title and insert:

"A bill for an act relating to state government; long-term care insurance; providing for a study of coverage for retiring state employees."

With the recommendation that when so amended the bill pass and be placed on the Consent Calendar.

The report was adopted.

Long from the Committee on Local Government and Metropolitan Affairs to which was referred:

H. F. No. 3012, A bill for an act relating to metropolitan government; modifying a certain levy limitation for the metropolitan council; changing the contents of comprehensive plans; providing for distribution of funds from the livable communities demonstration account; authorizing the metropolitan council to issue bonds or notes for acquisition of property; amending Minnesota Statutes 1994, sections 473.859, subdivision 4, and by adding a subdivision; and 473.862, subdivision 1; Minnesota Statutes 1995 Supplement, sections 473.167, subdivision 3; 473.25; 473.253, subdivision 2; and 473.859, subdivision 1; Laws 1989, chapter 279, section 7, subdivision 6; repealing Minnesota Statutes 1995 Supplement, section 473.167, subdivision 3a.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1995 Supplement, section 473.167, subdivision 2, is amended to read:

Subd. 2. [LOANS FOR ACQUISITION.] (a) The council may make loans to counties, towns, and statutory and home rule charter cities within the metropolitan area for the purchase of property within the right-of-way of a state trunk highway shown on an official map adopted pursuant to section 394.361 or 462.359 or for the purchase of property within the proposed right-of-way of a principal or intermediate arterial highway designated by the council as a part of the metropolitan highway system plan and approved by the council pursuant to subdivision 1. The loans shall be made by the council, from the fund established pursuant to this subdivision, for purchases approved by the council. The loans shall bear no interest.

(b) The council shall make loans only:

(1) to accelerate the acquisition of primarily undeveloped property when there is a reasonable probability that the property will increase in value before highway construction, and to update an expired environmental impact statement on a project for which the right-of-way is being purchased;

(2) to avert the imminent conversion or the granting of approvals which would allow the conversion of property to uses which would jeopardize its availability for highway construction; or

(3) to advance planning and environmental activities on highest priority major metropolitan river crossing projects, under the transportation development guide chapter/policy plan; or

(4) to take advantage of open market opportunities when developed properties become available for sale, provided all parties involved are agreeable to the sale and funds are available.

(c) The council shall not make loans for the purchase of property at a price which exceeds the fair market value of the property or which includes the costs of relocating or moving persons or property. The eminent domain process may be used to settle differences of opinion as to fair market value, provided all parties agree to the process.

(d) A private property owner may elect to receive the purchase price either in a lump sum or in not more than four annual installments without interest on the deferred installments. If the purchase agreement provides for installment payments, the council shall make the loan in installments corresponding to those in the purchase agreement. The

recipient of an acquisition loan shall convey the property for the construction of the highway at the same price which the recipient paid for the property. The price may include the costs of preparing environmental documents that were required for the acquisition and that were paid for with money that the recipient received from the loan fund. Upon notification by the council that the plan to construct the highway has been abandoned or the anticipated location of the highway changed, the recipient shall sell the property at market value in accordance with the procedures required for the disposition of the property. All rents and other money received because of the recipient's ownership of the property and all proceeds from the conveyance or sale of the property shall be paid to the council. If a recipient is not permitted to include in the conveyance price the cost of preparing environmental documents that were required for the acquisition, then the recipient is not required to repay the council an amount equal to 40 percent of the money received from the loan fund and spent in preparing the environmental documents.

(e) The proceeds of the tax authorized by subdivision 3 and distributed to the right-of-way acquisition loan fund pursuant to subdivision 3a, paragraph (a), all money paid to the council by recipients of loans, and all interest on the proceeds and payments shall be maintained as a separate fund. For administration of the loan program, the council may expend from the fund each year an amount no greater than three percent of the amount of the proceeds distributed to the right-of-way acquisition loan fund pursuant to subdivision 3a, paragraph (a), for that year.

Sec. 2. Minnesota Statutes 1994, section 473.167, subdivision 2a, is amended to read:

Subd. 2a. [HARDSHIP ACQUISITION AND RELOCATION.] (a) The council may make hardship loans to acquiring authorities within the metropolitan area to purchase homestead property located in a proposed state trunk highway right-of-way or project, and to provide relocation assistance. Acquiring authorities are authorized to accept the loans and to acquire the property. Except as provided in this subdivision, the loans shall be made as provided in subdivision 2. Loans shall be in the amount of the appraised fair market value of the homestead property plus relocation costs and less salvage value. Before construction of the highway begins, the acquiring authority shall convey the property to the commissioner of transportation at the same price it paid, plus relocation costs and less its salvage value. Acquisition and assistance under this subdivision must conform to sections 117.50 to 117.56.

(b) The council may make hardship loans only when:

(1) the owner of affected homestead property requests acquisition and relocation assistance from an acquiring authority;

(2) federal or state financial participation is not available;

(3) the owner is unable to sell the homestead property at its appraised market value because the property is located in a proposed state trunk highway right-of-way or project as indicated on an official map or plat adopted under section 160.085, 394.361, or 462.359;

(4) the appraisal of council agrees to and approves the fair market value of the homestead property has been approved by the council. The council's, which approval shall not be unreasonably withheld; and

(5) the owner of the homestead property is burdened by circumstances that constitute a hardship, such as catastrophic medical expenses; a transfer of the homestead owner by the owner's employer to a distant site of employment; or inability of the owner to maintain the property due to physical or mental disability or the permanent departure of children from the homestead.

(c) For purposes of this subdivision, the following terms have the meanings given them.

(1) "Acquiring authority" means counties, towns, and statutory and home rule charter cities in the metropolitan area.

(2) "Homestead property" means a single-family dwelling occupied by the owner, and the surrounding land, not exceeding a total of ten acres.

(3) "Salvage value" means the probable sale price of the dwelling and other property that is severable from the land if offered for sale on the condition that it be removed from the land at the buyer's expense, allowing a reasonable time to find a buyer with knowledge of the possible uses of the property, including separate use of serviceable components and scrap when there is no other reasonable prospect of sale.

Sec. 3. Minnesota Statutes 1995 Supplement, section 473.167, subdivision 3, is amended to read:

Subd. 3. [TAX.] The council may levy a tax on all taxable property in the metropolitan area, as defined in section 473.121, to provide funds for loans made pursuant to subdivisions 2 and 2a and for the tax base revitalization account in the metropolitan livable communities fund, established under section 473.251. This tax for the right-of-way acquisition loan fund and the tax base revitalization account shall be certified by the council, levied, and collected in the manner provided by section 473.13. The tax shall be in addition to that authorized by section 473.249 and any other law and shall not affect the amount or rate of taxes which may be levied by the council or any metropolitan agency or local governmental unit. The amount of the levy shall be as determined and certified by the council., provided that the property tax levied by the metropolitan council for the right-of-way acquisition loan fund and the tax base revitalization account shall not exceed the following amount for the years specified:

(a) for taxes payable in 1988, the product of 5/100 of one mill multiplied by the total assessed valuation of all taxable property located within the metropolitan area as adjusted by the provisions of Minnesota Statutes 1986, sections 272.64; 273.13, subdivision 7a; and 275.49;

(b) for taxes payable in 1989, except as provided in section 473.249, subdivision 3, the product of (1) the metropolitan council's property tax levy limitation for the right-of-way acquisition loan fund for the taxes payable year 1988 determined under clause (a) multiplied by (2) an index for market valuation changes equal to the assessment year 1988 total market valuation of all taxable property located within the metropolitan area divided by the assessment year 1987 total market valuation of all taxable property located within the metropolitan area;

(c) for taxes payable in 1990, an amount not to exceed $2,700,000; and

(d) for taxes payable in 1991 and subsequent years, the product of (1) the metropolitan council's property tax levy limitation for the right-of-way acquisition loan fund under this subdivision for the taxes payable in 1988 determined under clause (a) 1996 multiplied by (2) an index for market valuation changes equal to the total market valuation of all taxable property located within the metropolitan area for the current taxes payable year divided by the total market valuation of all taxable property located within the metropolitan area for taxes payable in 1988 1996.

For the purpose of determining the metropolitan council's property tax levy limitation for the right-of-way acquisition loan fund and tax base revitalization account in the metropolitan livable communities fund, under section 473.251, for the taxes payable year 1988 and subsequent years under this subdivision, "total market valuation" means the total market valuation of all taxable property within the metropolitan area without valuation adjustments for fiscal disparities (chapter 473F), tax increment financing (sections 469.174 to 469.179), and high voltage transmission lines (section 273.425).

Sec. 4. Minnesota Statutes 1995 Supplement, section 473.252, is amended to read:

473.252 [TAX BASE REVITALIZATION ACCOUNT.]

Subdivision 1. [DEFINITION.] For the purposes of this section, "municipality" means a statutory or home rule charter city or town participating in the local housing incentives program under section 473.254, or a county in the metropolitan area.

Subd. 1a. [DEVELOPMENT AUTHORITY.] "Development authority" means a statutory or home rule charter city, housing and redevelopment authority, economic development authority, and a port authority.

Subd. 2. [SOURCES OF FUNDS.] The council shall credit to the tax base revitalization account within the fund the amount, if any, provided for under section 473.167, subdivision 3a, paragraph (b) 4, and the amount, if any, distributed to the council under section 473F.08, subdivision 3b.

Subd. 3. [DISTRIBUTION OF FUNDS.] (a) The council must use the funds in the account to make grants to municipalities or development authorities for the cleanup of polluted land in the metropolitan area. A grant to a metropolitan county or a development authority must be used for a project in a participating municipality. The council shall prescribe and provide the grant application form to municipalities. The council must consider the probability of funding from other sources when making grants under this section.

(b)(1) The legislature expects that applications for grants will exceed the available funds and the council will be able to provide grants to only some of the applicant municipalities. If applications for grants for qualified sites exceed the available funds, the council shall make grants that provide the highest return in public benefits for the public costs

incurred, that encourage commercial and industrial development that will lead to the preservation or growth of living-wage jobs and that enhance the tax base of the recipient municipality.

(2) In making grants, the council shall establish regular application deadlines in which grants will be awarded from the available money in the account. If the council provides for application cycles of less than six-month intervals, the council must reserve at least 40 percent of the receipts of the account for a year for application deadlines that occur in the second half of the year. If the applications for grants exceed the available funds for an application cycle, no more than one-half of the funds may be granted to projects in a statutory or home rule charter city and no more than three-quarters of the funds may be granted to projects located in cities of the first class.

(c) A municipality may use the grant to provide a portion of the local match requirement for project costs that qualify for a grant under sections 116J.551 to 116J.557.

Subd. 4. [TAX.] The council may levy a tax on all taxable property in the metropolitan area, as defined in section 473.121, to provide funds for the tax base revitalization account in the metropolitan livable communities fund. This tax for the tax base revitalization account shall be certified by the council, levied, and collected in the manner provided by section 473.13. The tax shall be in addition to that authorized by section 473.249 and any other law and shall not affect the amount or rate of taxes which may be levied by the council or any metropolitan agency or local governmental unit.

The amount of the levy shall be as determined and certified by the council, provided that the tax levied by the metropolitan council for the tax base revitalization account shall not exceed the product of (1) the metropolitan council's levy for the tax base revitalization account under section 473.167, subdivision 3, for taxes payable in 1996 multiplied by (2) an index for market valuation changes equal to the total market valuation of all taxable property located within the metropolitan area for the current taxes payable year divided by the total market valuation of all taxable property located within the metropolitan area for taxes payable in 1996.

For the purpose of determining the metropolitan council's property tax levy limitation for the tax base revitalization account, "total market valuation" means the total market valuation of all taxable property within the metropolitan area without valuation adjustments for fiscal disparities (chapter 473F), tax increment financing (sections 469.174 to 469.179), and high voltage transmission lines (section 273.425).

Subd. 5. [STATE REVIEW.] The commissioner of revenue shall certify the council's levy limitation under this section to the council by August 1 of the levy year. The council must certify its proposed property tax levy to the commissioner of revenue by September 1 of the levy year. The commissioner of revenue shall annually determine whether the property tax for the tax base revitalization account certified by the metropolitan council for levy following the adoption of its proposed budget is within the levy limitation imposed by this section. The determination must be completed prior to September 10 of each year. If current information regarding market valuation in any county is not transmitted to the commissioner in a timely manner, the commissioner may estimate the current market valuation within that county for purposes of making the calculation.

Sec. 5. Laws 1989, chapter 279, section 7, subdivision 6, is amended to read:

Subd. 6. [TERMINATION.] The advisory council ceases to exist when the actions required by section 3, subdivision 3, and section 4 subdivision 2 are completed.

Sec. 6. [ISSUANCE OF BONDS OR NOTES FOR ACQUISITION OF PROPERTY.]

Subdivision 1. [BONDS; LOANS.] The council may borrow money or by resolution authorize the issuance of general obligation bonds or notes for the acquisition of any real property which the council determines is necessary for any proposed expansion of the Minneapolis-St. Paul International Airport.

Subd. 2. [PROCEDURE.] The bonds or notes shall be sold, issued, and secured in the manner provided in Minnesota Statutes, chapter 475, and the council shall have the same powers and duties as a municipality issuing bonds under that chapter, except that no election shall be required and the net debt limitations in Minnesota Statutes, chapter 475, shall not apply to such bonds or notes. The obligations are not a debt of the state or any other municipality or political subdivision within the meaning of any debt limitation or requirement pertaining to those entities. The bonds or notes may be sold at any price and at a public or private sale as determined by the council. The obligations may be secured by taxes levied without limitation of rate or amount upon all taxable property in the metropolitan area.

Subd. 3. [COST SHARING; DISPOSITION OF PROPERTY.] The council may enter into agreements with the metropolitan airports commission, any municipality in the metropolitan area, and any corporation, public or private, to share the costs of acquiring any real property which the council determines is necessary for any proposed expansion of the Minneapolis-St. Paul International Airport. If the council acquires real property pursuant to subdivision 2 and Minnesota Statutes, section 473.129, subdivision 7, which it subsequently determines is not needed for the expansion of the airport, the real property shall be sold in accordance with the council's procedures and the proceeds from the sale of the real property shall be used for debt service or retirement of any bonds or notes issued pursuant to subdivision 2.

Sec. 7. [BLOOMINGTON; TAX INCREMENT.]

Subdivision 1. [PUBLIC PURPOSE.] In 1985, the port authority of the city of Bloomington established a redevelopment tax increment financing district designated as tax increment financing district No. 1-G with boundaries consisting of a 31.9 acre parcel known as the Kelly property located at the northeast quadrant of 24th Avenue and East Old Shakopee Road in the city of Bloomington with the intention of financing certain redevelopment costs, including selected public improvements within the airport south industrial development district. The Kelly property was conveyed to the Mall of America Company by the port authority of the city of Bloomington, pursuant to the restated contract dated May 31, 1988, by and between the city of Bloomington, port authority of the city of Bloomington, and Mall of America Company, subject to the condition that the Mall of America Company commence construction of a subsequent phase of the Mall of America project on the site no later than 2002. If the Mall of America Company fails to commence construction of a subsequent phase of development on the Kelly property by 2002, ownership of the property reverts to the port authority of the city of Bloomington. The Minneapolis-St. Paul International Airport long-term comprehensive plan proposes construction of a north-south runway to guaranty future operation of the airport in a safe, efficient manner. Public acquisition of the Kelly property by the metropolitan airports commission will be required to facilitate construction of the north-south runway.

Subd. 2. [AUTHORIZATION.] The port authority of the city of Bloomington may amend the redevelopment tax increment financing district consisting of the Kelly property so that it shall, instead, consist of the met center property as identified in Minnesota Statutes, section 473.551, subdivision 12, upon satisfaction of the following conditions precedent:

(1) sale of the met center property from the metropolitan council or a metropolitan agency to the Mall of America Company or an entity comprising at least one partner of the Mall of America Company or an affiliate of such partner;

(2) approval by the city of Bloomington, port authority of the city of Bloomington, and Mall of America Company of amendments to the restated contract dated May 31, 1988, which transfer development rights and contract obligations from the Kelly property to the met center property;

(3) approval by the Minnesota environmental quality board of an environmental impact statement for the met center property and approval by the Minnesota pollution control agency of an indirect source permit for the met center property;

(4) approval by the city of Bloomington and port authority of the city of Bloomington of a final development plan for the met center property;

(5) an agreement by the owner-developer of the met center property, in a form satisfactory to the city of Bloomington and port authority of the city of Bloomington, to dedicate to the city of Bloomington land for rights-of-way and other public improvements required for a subsequent phase of the Mall of America project on the met center property;

(6) the metropolitan airports commission and the Mall of America Company have either:

(i) entered into a purchase agreement for the sale of the Kelly property; or

(ii) agreed, in writing, on development restrictions for use of the Kelly property which:

(A) limit the cost of acquisition or purchase of development restrictions by the metropolitan airports commission to the per acre cost of the met center property minus the value of any development rights which the Mall of America Company retains on the property; and

(B) permit the metropolitan airports commission to delay acquisition or purchase of development rights on the Kelly property until it has obtained all necessary state and federal environmental approvals for the proposed north-south runway and has authorized construction of the runway; and

(7) an agreement by the Mall of America Company not to sue or claim any damages against either the city of Bloomington or port authority of the city of Bloomington arising out of rezoning of the Kelly property pursuant to Minnesota Statutes, sections 360.061 to 360.074, or an amendment to the comprehensive plan of the city of Bloomington relating to the Kelly property.

The requirements of Minnesota Statutes, section 469.175, subdivision 4, do not apply to modification of the plan to provide for the substitution of legal descriptions authorized hereby. The original net tax capacity of the district shall be recertified in accordance with Minnesota Statutes, section 469.177, subdivision 1, upon amendment of the geographic boundaries of the district. The district shall continue in existence from its original date of creation and the amendment of the geographic boundaries of the district and recertification of original net tax capacity of the district shall not cause the application to the district of any provisions of law which would not otherwise be applicable to the district.

Subd. 3. [SPECIAL RULES.] (a) Tax increment may not be captured by the port authority from the tax increment financing district on the met center property after December 31, 2018, which is the date of termination of the tax increment financing district for the Kelly property.

(b) The provisions of Minnesota Statutes, section 273.1399, do not apply to the tax increment financing district on the met center property.

(c) The governing body of the city of Bloomington must elect the method of computation of tax increment specified in Minnesota Statutes, section 469.177, subdivision 3, paragraph (b), in the tax increment financing district on the met center property.

(d) Tax increments, assessments, and other revenues derived from the tax increment district on the met center property and any accumulated tax increments from the tax increment financing district on the Kelly property may be used to finance any expenditure in the airport south industrial development district authorized by Minnesota Statutes, section 469.176, subdivision 4, and identified in the tax increment plan for the tax increment financing district and the development plan for the airport south industrial development district.

Subd. 4. [ACQUISITION OF PROPERTY.] Notwithstanding any law to the contrary, the metropolitan airports commission is authorized to acquire or purchase the Kelly property consistent with the public purpose set forth in this law. This may be accomplished by an exchange of land, purchase of development rights, acquisition of easements, or other method to be negotiated with the landowner or by outright purchase or exercise of eminent domain, if necessary.

Subd. 5. [LIMITATION ON USE OF TAX INCREMENT.] If the port authority of the city of Bloomington amends the redevelopment tax increment financing district from the Kelly property to the met center property, the owner of the met center property shall be bound by the limitations on public reimbursement for qualified public improvements as set forth in section 9.2(05) of the restated contract dated May 31, 1988, by and between the city of Bloomington, port authority of the city of Bloomington, and Mall of America Company.

Sec. 8. [TRANSFER.]

Notwithstanding Minnesota Statutes, section 473.167, the council may transfer a portion of the proceeds in the right-of-way acquisition loan fund to the planning assistance grant and loan program provided in Minnesota Statutes, section 473.867. To provide additional funds for the planning assistance grant and loan program authorized in Minnesota Statutes, section 473.867, the metropolitan council may transfer up to $1,000,000 of the proceeds of solid waste bonds issued by the council under Minnesota Statutes, section 473.831 before its repeal. By 2008, the council shall repay any amount transferred from the right-of-way acquisition loan fund using the proceeds of the tax authorized in Minnesota Statutes, section 473.249.

Sec. 9. [ACQUISITION OF THE MET CENTER PROPERTY.]

Notwithstanding anything to the contrary in sections 6 to 12, the authority granted to acquire real property shall not authorize acquisition of the met center property, as defined in Minnesota Statutes, section 473.551, subdivision 12, by eminent domain.

Sec. 10. [REPEALER.]

Minnesota Statutes 1994, section 473.167, subdivision 5; and Minnesota Statutes 1995 Supplement, section 473.167, subdivision 3a, are repealed.

Sec. 11. [APPLICATION.]

Sections 1 to 4, 6, 8, and 10 apply in the counties of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington.

Sec. 12. [EFFECTIVE DATE.]

Sections 1 to 6 and 8 to 11 are effective the day following final enactment.

Section 7 is effective upon compliance by the governing body of the port authority of the city of Bloomington and the governing body of the city of Bloomington with Minnesota Statutes, section 645.021, subdivision 2."

Delete the title and insert:

"A bill for an act relating to metropolitan government; modifying a certain levy limitation for the metropolitan council; allowing for distribution of funds from the tax base revitalization account to development authorities; authorizing the metropolitan council to issue bonds; requiring a transfer between certain accounts of the council; amending Minnesota Statutes 1994, section 473.167, subdivision 2a; Minnesota Statutes 1995 Supplement, sections 473.167, subdivisions 2 and 3; and 473.252; Laws 1989, chapter 279, section 7, subdivision 6; repealing Minnesota Statutes 1994, section 473.167, subdivision 5; Minnesota Statutes 1995 Supplement, section 473.167, subdivision 3a."

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Taxes.

The report was adopted.

Munger from the Committee on Environment and Natural Resources to which was referred:

H. F. No. 3013, A bill for an act relating to the environment; modifying provisions relating to the environmental improvement pilot program; providing penalties; amending Laws 1995, chapter 168, sections 9, subdivisions 3, 4, and 7; 10, subdivision 2; 13, subdivisions 1, 2, 3, and by adding a subdivision; and 19; repealing Laws 1995, chapter 168, section 11.

Reported the same back with the following amendments:

Page 1, after line 9, insert:

"Section 1. Minnesota Statutes 1995 Supplement, section 115B.03, subdivision 9, is amended to read:

Subd. 9. [PERSONAL REPRESENTATIVES OF ESTATES.] A personal representative, guardian, or conservator of an estate who is not otherwise a responsible party for a release or threatened release of a hazardous substance from a facility is not a responsible person under this section solely because the facility is among the assets of the estate or solely because the personal representative, guardian, or conservator has the capacity to direct the operation of the facility."

Page 2, delete section 4

Page 4, delete lines 17 to 25 and insert:

"Subd. 6. [FALSE STATEMENTS.] (a) A person may not knowingly make a false material statement or representation in the report filed in accordance with section 10, subdivision 2. As used in this subdivision, "knowingly" has the meaning given in Minnesota Statutes, section 609.671, subdivision 2.

(b) A person found to have knowingly made a false material statement or representation shall be subject to the administrative penalties and process set forth in Minnesota Statutes, section 116.072."

Page 4, line 35, delete everything after the period

Page 4, delete line 36

Renumber the sections in sequence

Amend the title as follows:

Page 1, line 4, after "amending" insert "Minnesota Statutes 1995 Supplement, section 115B.03, subdivision 9;"

Page 1, line 5, delete "10,"

Page 1, line 6, delete "subdivision 2;"

With the recommendation that when so amended the bill pass.

The report was adopted.

Anderson, R., from the Committee on Health and Human Services to which was referred:

H. F. No. 3053, A bill for an act relating to health; authorizing the dispensing of a prescription written by a physician, osteopath, podiatrist, dentist, or veterinarian licensed in any state or jurisdiction of the United States; amending Minnesota Statutes 1994, section 152.11, as amended.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1994, section 152.11, is amended by adding a subdivision to read:

Subd. 4. Notwithstanding subdivisions 1 and 2, a person may dispense a controlled substance included in schedule II, III, or IV of section 152.02 with a prescription written by a doctor of medicine, a doctor of osteopathy licensed to practice medicine, a doctor of dental surgery, a doctor of dental medicine, a doctor of podiatry, or a doctor of veterinary medicine lawfully licensed to prescribe in any state or jurisdiction of the United States if the prescription is being billed:

(1) by a mail-order pharmacy located in Minnesota; or

(2) for a person who is physically present in Minnesota at the time the prescription is filled but is not a resident of Minnesota.

Sec. 2. Minnesota Statutes 1994, section 152.11, is amended by adding a subdivision to read:

Subd. 5. Nothing in this section may be construed to authorize a person licensed in a state or jurisdiction outside Minnesota to prescribe a controlled substance with intent to assist another in taking the other's own life in violation of section 609.215 with intent or knowledge that the prescription will be dispensed in Minnesota, regardless of whether the prescription would be unlawful in the state in which the person is licensed."

Delete the title and insert:

"A bill for an act relating to health; authorizing filling certain prescriptions written by physicians, osteopaths, podiatrists, dentists, or veterinarians licensed in another United States jurisdiction; amending Minnesota Statutes 1994, section 152.11, by adding subdivisions."

With the recommendation that when so amended the bill pass.

The report was adopted.

Osthoff from the Committee on Financial Institutions and Insurance to which was referred:

H. F. No. 3078, A bill for an act relating to insurance; providing for immunity under homeowner's insurance for day care services; amending Minnesota Statutes 1994, section 65A.27, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 65A.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1994, section 65A.27, subdivision 1, is amended to read:

Subdivision 1. For purposes of sections 65A.27 to 65A.29 65A.30 the following terms have the meanings given.

Sec. 2. [65A.30] [DAY CARE SERVICES; COVERAGE.]

Unless:

(1) specifically covered in a policy; or

(2) covered by a rider for business coverage attached to a policy, there shall be no coverage under homeowner's insurance for losses or damages arising in any manner out of the operation of day care services.

Sec. 3. [EFFECTIVE DATE.]

This act is effective the day following final enactment."

Delete the title and insert:

"A bill for an act relating to insurance; clarifying coverage under homeowner's insurance for day care services; amending Minnesota Statutes 1994, section 65A.27, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 65A."

With the recommendation that when so amended the bill pass.

The report was adopted.

Anderson, R., from the Committee on Health and Human Services to which was referred:

H. F. No. 3161, A bill for an act relating to health; providing for imposition, collection, and administration of the MinnesotaCare tax; amending Minnesota Statutes 1994, sections 295.51, subdivision 1, and by adding a subdivision; 295.52, by adding a subdivision; and 295.54, subdivisions 1, 2, and by adding a subdivision; Minnesota Statutes 1995 Supplement, sections 295.50, subdivision 3; and 295.53, subdivisions 1 and 5; repealing Minnesota Statutes 1994, section 295.50, subdivisions 8, 9, 9a, 11, 12, and 12a.

Reported the same back with the following amendments:

Page 4, lines 19 and 23, reinstate the stricken language and delete the new language

Page 5, delete lines 1 and 2 and insert:

"(9) payments received by a resident health care provider or the wholly owned subsidiary of a resident health care provider"

Page 5, lines 3 to 5, reinstate the stricken language

Page 5, lines 7, 10, 16, 19, 26, 28, and 33, reinstate the stricken language and delete the new language

Page 5, line 29, reinstate "(17)" and delete the new language

Page 6, line 1, strike "and"

Page 6, line 2, reinstate the stricken language and delete the new language

Page 6, line 3, before the period, insert "; and

(20) payments received by a staff model health plan company directly from the federal Office of Personnel Management for services provided under the Federal Employees Health Benefit Program"

Page 6, line 15, reinstate the stricken language and delete the new language

Page 6, after line 18, insert:

"Sec. 7. Minnesota Statutes 1995 Supplement, section 295.53, is amended by adding a subdivision to read:

Subd. 6. [TEMPORARY EXEMPTION; DRUG SALES TO FEDERAL AND TRIBAL GOVERNMENTS.] (a) The wholesale drug distributor tax under section 295.52, subdivision 3, does not apply to payments received from federal or tribal governments under contracts entered into before April 23, 1992, and according to pricing terms that were binding on the wholesale drug distributor on April 23, 1992. The distributor must include the payments in its reported gross revenues and subtract the payments as an exemption under section 295.53, subdivision 1.

(b) The exemption under this subdivision is retroactive and applies to gross revenues from sales after April 23, 1992, and before September 30, 1998.

(c) No refunds for previously paid tax may be paid, if the tax was passed through to and paid by the federal or tribal government. As a condition for paying refunds, the commissioner may require distributors to provide documentation that the tax was not passed through and paid by the federal or tribal government.

(d) This subdivision expires effective for gross revenues received after September 30, 1998."

Page 7, line 26, delete "8, and 10" and insert "9, and 11"

Page 7, line 27, before the period, insert "except that the amendment to Minnesota Statutes, section 295.53, subdivision 1, clause (20), providing an exemption for payments received by a staff model health plan company from the federal Office of Personnel Management is effective for gross revenues generated by services performed after June 30, 1996"

Page 7, line 28, delete "9" and insert "10"

Renumber the sections in sequence

Amend the title as follows:

Page 1, line 9, delete "and 5" and insert ", 5, and by adding a subdivision"

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Taxes.

The report was adopted.

Rice from the Committee on Economic Development, Infrastructure and Regulation Finance to which was referred:

H. F. No. 3190, A bill for an act relating to capital improvements; authorizing the sale of state bonds; appropriating money for the North West Company Fur Post Interpretive Center.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. [CAPITAL IMPROVEMENTS APPROPRIATIONS.]

The sums in the column under "APPROPRIATIONS" are appropriated from the bond proceeds fund, or another named fund, to the state agencies or officials indicated, to be spent to acquire and to better public land and buildings and other public improvements of a capital nature, as specified in this act.

APPROPRIATIONS

$

Sec. 2. ADMINISTRATION

Subdivision 1. To the commissioner of administration for

purposes specified in this section 7,990,000

Subd. 2. Lyn/Lake/Jungle Theatre Community Performing Arts Center 370,000

For a grant to Hennepin county for the Lyn/Lake/Jungle Theatre community performing arts center.

Subd. 3. Brandon Center 5,500,000

For a grant to the city of Brandon and town of Brandon joint powers board for site acquisition and first-phase development and construction of the west central region, educational, heritage, and cultural preservation center to be located in Brandon township on property described as "SW 1/4 of Section 28 and NW 1/4 of Section 33, T-129N R-39W, Douglas county." The appropriation will not be available until an equal match from nonstate sources for second-phase development is secured.

Subd. 4. Prairieland Expo 1,820,000

(a) For a grant to the southwest regional development commission to construct, equip, and furnish a facility to display, preserve, and interpret the history of southwest Minnesota, as authorized in Minnesota Statutes, section 462.3911. The facility is to be known as "Prairieland Expo."

(b) The facility must be owned by the southwest regional development commission. The southwest regional development commission may enter into a lease or management contract with an entity under Minnesota Statutes, section 16A.695, for operation, management, and oversight of the facility.

Subd. 5. Farmamerica 300,000

For a grant to Farmamerica in Waseca county for hard surfacing of walkways, trails, and roads related to the Farmamerica facility.

Sec. 3. TRADE AND ECONOMIC DEVELOPMENT

Subdivision 1. To the commissioner of trade and economic

development for the purposes specified in this section 58,350,000

Subd. 2. Minneapolis Convention Center 35,000,000

For site acquisition, street and utilities relocation, preliminary design, administration, and other necessary and related purposes preliminary to the construction of the expansion of the Minneapolis convention center.

Subd. 3. Multijurisdictional Reinvestment Programs 18,100,000

(a) For payment by the commissioner of trade and economic development to the metropolitan council. The commissioner shall transfer the amount to the metropolitan council upon receipt of a certified copy of a council resolution requesting payment. The appropriation must be used to pay the cost of acquisition and betterment by the metropolitan council and Hennepin county and local governmental units in accordance with the multijurisdictional reinvestment program plan established as provided in Minnesota Statutes, section 383B.79.

(b) The appropriation in this subdivision is for the following purposes:

(1) land acquisition and development of the Humboldt Avenue project, $10,000,000;

(2) development of the 29th Street Greenway, $5,000,000; and

(3) development of a water pond to facilitate the redevelopment of Brookdale, $3,100,000.

(c) Government jurisdictions participating in the reinvestment program planning and projects must match any state contribution on at least a dollar-for-dollar basis in the aggregate. Government jurisdictions, however constituted, may use any funds under their control for the match requirement.

Subd. 4. Voyageur Center 250,000

For the predesign and design of an interpretive and conference center. The center shall provide educational opportunities and enhance tourism by presenting information and displays which preserve and interpret the history of the voyageur and related animals, emphasizing the importance of the fur trade to the history and development of the region and the state. The center shall include conference facilities. The center shall be located in the city of International Falls.

In developing plans for the facility the commissioner must consult with the small business development center located at Rainy River Community College.

Subd. 5. St. Louis County Center 3,000,000

For a grant to the county of St. Louis to build an addition to the St. Louis County Heritage and Arts Center in Duluth.

Subd. 6. Green Business Development 2,000,000

For a grant to the city of Minneapolis for capital improvements for a business incubator and ecological-industrial park in the city of Minneapolis. The facility will be a demonstration project, with the objective of assisting businesses that develop new industrial activities in emerging environmental technology, alternative energy, and recycling. The facility must be owned by the city. The city may enter into a lease or management contract with a nonprofit entity under Minnesota Statutes, section 16A.695, for operation of the facilities.

Sec. 4. TRANSPORTATION

Subdivision 1. To the commissioner of transportation for the

purposes specified in this section 20,334,000

Subd. 2. Port Development Grants 5,334,000

For port development assistance grants. The grants must be made to political subdivisions or port authorities for capital improvements under the provisions of Minnesota Statutes, sections 457A.01 to 457A.06. Any improvements made with the proceeds of these grants must be publicly owned.

Subd. 3. Metro Public Safety Radio 15,000,000

To construct the initial backbone of the metropolitan regionwide public safety radio communications system described in Laws 1995, chapter 195.

Sec. 5. HOUSING FINANCE AGENCY

Subdivision 1. (a) To the commissioner of the housing finance agency for building construction and rehabilitation or financing of building construction and rehabilitation for the purposes specified

in this section 21,750,000

(b) At least 25 percent of each grant under this section must utilize youthbuild, Minnesota Statutes, sections 268.361 to 268.367, or other youth employment and training programs to do the construction. Eligible programs must consult with appropriate labor organizations to deliver education and training. In making grants under this section, the commissioner shall use a request for proposal process.

Subd. 2. Grants for Transitional Housing Loans 2,000,000

To the commissioner of the housing finance agency for the purpose of making transitional housing loans, including loans for housing for homeless youths, to local government units authorized under Minnesota Statutes, section 462A.202, subdivision 2.

Subd. 3. Grants for Battered Women's and Crime Victims' Residences 250,000

Grants under this program may be committed so that recipients may leverage the grants to obtain other funds for the program.

Subd. 4. Grants for Homeless Youth Facilities 2,000,000

This appropriation is for grants to construct or rehabilitate homeless youth facilities.

Subd. 5. Publicly Owned Housing 15,000,000

For grants to local public agencies and units of government to build multiple unit publicly owned housing. A grant shall not exceed $15,000 per unit.

Subd. 6. Neighborhood Land Trust Program 2,500,000

To the Minnesota housing finance agency's local government unit housing account established in Minnesota Statutes, section 462A.202, for loans with or without interest to a city to purchase or acquire

land and buildings for purposes of the neighborhood land trust program under Minnesota Statutes, sections 462A.30 and 462A.31, upon terms and conditions the agency determines.

Sec. 6. ECONOMIC SECURITY

Subdivision 1. (a) To the commissioner of economic security for construction and rehabilitation for the purposes specified in this

section 11,250,000

(b) At least 25 percent of each grant under this section must utilize youthbuild, Minnesota Statutes, sections 268.361 to 268.367, or other youth employment and training programs to do the construction. Eligible programs must consult with appropriate labor organizations to deliver education and training. In making grants under this section, the commissioner shall use a request for proposal process.

Subd. 2. Grants for Early Childhood Learning Facilities 10,000,000

This appropriation is for grants to state agencies and political subdivisions to construct or rehabilitate facilities for Head Start or other early childhood learning programs under Minnesota Statutes, section 268.917.

Subd. 3. Grants for Truancy and Curfew Centers 500,000

This appropriation is for grants to construct or rehabilitate truancy and curfew centers.

Subd. 4. Grants for Crises Nurseries 500,000

This appropriation is for grants to construct or rehabilitate crises nurseries.

Subd. 5. Grants for Child Safety Centers 250,000

This appropriation is for grants to construct or rehabilitate child safety centers.

Sec. 7. MINNESOTA HISTORICAL SOCIETY

Subdivision 1. To the Minnesota historical society for the

purposes specified in this section 19,385,000

Subd. 2. Battle Point 4,500,000

To construct, furnish, and equip the Battle Point historic site.

Subd. 3. Le Duc House 650,000

To refurbish the William G. Le Duc house in Hastings.

Subd. 4. 1879 Sibley County Courthouse Restoration 390,000

For a grant to the city of Henderson for the restoration, and life safety and handicapped accessibility upgrading, of the 1879 Sibley County Courthouse in preparation for its use as the Joseph R. Brown Interpretative Center under Minnesota Statutes, section 138.93.

Subd. 5. Milwaukee Road Depot in Montevideo 713,000

To restore the Milwaukee Road Depot in Montevideo.

Subd. 6. North West Company Fur Post Interpretive Center 3,117,000

For construction of the North West Company Fur Post Interpretive Center.

Subd. 7. Historic Site Preservation and Repair 4,665,000

For capital repair, reconstruction, or replacement of deferred maintenance needs at state historic sites, buildings, exhibits, markers, and monuments. The society shall determine project priorities as appropriate based on need. This appropriation is exempt from the requirements of Minnesota Statutes, section 16B.335.

Subd. 8. County and Local Preservation Projects 1,000,000

To be allocated to county and local jurisdictions as matching money for historic preservation projects of a capital nature. Grant recipients must be public entities and must match state funds on at least an equal basis. Grants in this subdivision are exempt from the requirements of Minnesota Statutes, section 16B.335.

Subd. 9. Historic Site Network Master Planning 350,000

For updating of master plans for the state historic sites network.

Subd. 10. St. Anthony Falls Heritage Zone Implementation 4,000,000

For implementation of the comprehensive interpretive development plan for the historic resources of the St. Anthony Falls historic district.

Sec. 8. PUBLIC SERVICE 4,000,000

To the commissioner of finance for the energy conservation investment loan program in the department of public service under Minnesota Statutes, section 216C.37. Loans in this appropriation are exempt from the requirements of Minnesota Statutes, section 16B.335.

Sec. 9. SOUTHWEST REGIONAL DEVELOPMENT COMMISSION 750,000

(a) For design, acquisition, and betterment of a wind power generating facility. The facility must be located on publicly owned land on Buffalo Ridge in southwestern Minnesota. The facility must include equipment for transmittal and storage of data to the Southwest Technical College for analysis and educational purposes. This appropriation may be supplemented with money from other sources.

(b) The southwest regional development commission may enter into a lease or management contract under Minnesota Statutes, section 16A.695, with Pioneer Public Television for the operation and maintenance of the facility. This contract shall include a provision

enabling the Southwest Technical College to make appropriate use of the facility for the education of students in the college's customized training program or other vocational program. This contract shall also require the regional development commission and the Pioneer Public Television to provide information from the wind power generating facility to the Southwest Technical College and the department of public service.

Sec. 10. [BOND SALE AUTHORIZATION.]

To provide the money appropriated in this act from the bond proceeds fund the commissioner of finance, on request of the governor, shall sell and issue bonds of the state in an amount up to $143,809,000 in the manner, upon the terms, and with the effect prescribed by Minnesota Statutes, sections 16A.631 to 16A.675, and by the Minnesota Constitution, article XI, sections 4 to 7.

Sec. 11. [ISSUANCE OF TRUNK HIGHWAY BONDS.]

On request of the commissioner of transportation, the commissioner of finance shall issue and sell Minnesota state trunk highway bonds for the purposes provided in Minnesota Statutes, section 167.51, subdivision 1, in the aggregate principal amount of $30,000,000 in the manner and on the conditions prescribed in Minnesota Statutes, sections 167.50 and 167.51, and in the Minnesota Constitution, article XIV, section 11. The proceeds of the bonds must be deposited in the trunk highway fund for expenditure in accordance with section 13, subdivision 1.

Sec. 12. [ISSUANCE OF STATE TRANSPORTATION BONDS.]

On request of the commissioner of transportation, the commissioner of finance shall issue and sell Minnesota state transportation bonds for the purposes provided in Minnesota Statutes, section 174.51, subdivision 1, in the aggregate principal amount of $35,000,000 in the manner and on the conditions prescribed in Minnesota Statutes, section 174.51, and in the Minnesota Constitution, article XI. The proceeds of the bonds must be deposited in the Minnesota state transportation fund for expenditure in accordance with section 13, subdivision 2, and with Minnesota Statutes, section 174.50.

Sec. 13. [APPROPRIATION AND DISTRIBUTION OF PROCEEDS.]

Subdivision 1. [TRUNK HIGHWAY BOND PROCEEDS.] $30,000,000, or so much there as the commissioner of transportation determines is needed, is appropriated from the trunk highway fund to the commissioner of transportation for the replacement, rehabilitation, and repair of key bridges on the state trunk highway system.

Subd. 2. [STATE TRANSPORTATION BOND PROCEEDS.] (a) $35,000,000, or so much thereof as the commissioner of transportation determines is needed, is appropriated from the state transportation fund to the commissioner of transportation. The commissioner shall spend this appropriation as grants to political subdivisions for the replacement, rehabilitation, and repair of key bridges on the state transportation system. The commissioner shall make these grants in accordance with and for the purposes of Minnesota Statutes, section 174.50.

(b) In making grants under paragraph (a), the commissioner may not exceed the following limits:

(1) to counties, $.......;

(2) to cities, $.......; and

(3) to towns, $........

Sec. 14. [POLITICAL SUBDIVISIONS; USE OF GRANTS.]

Political subdivisions may use grants under section 13, subdivision 2, for the replacement, rehabilitation, or repair of bridges, including but not limited to:

(1) matching federal grants for bridge replacement, rehabilitation, or repair;

(2) paying the costs of abandoning an existing bridge that is deficient and in need of replacement, but where no replacement will be made;

(3) paying the costs of constructing a road or street that would facilitate the abandonment of an existing bridge determined by the commissioner of transportation to be deficient, if the commissioner determines that construction of the road or street is more cost efficient than replacing the existing bridge; and

(4) paying costs authorized by Minnesota Statutes, section 174.50, subdivision 6a.

Sec. 15. [116J.995] [GREEN BUSINESS DEVELOPMENT PROGRAM.]

The commissioner must establish and maintain a program to encourage development of businesses that operate in ways that prevent or minimize pollution and maximize energy efficiency, or that are engaged in the development of products that prevent or minimize pollution or maximize energy efficiency. The commissioner may determine the most effective ways in which to encourage development of these businesses. To the extent that the legislature makes appropriations for this purpose, the commissioner shall make grants to encourage development of these businesses.

Sec. 16. Minnesota Statutes 1995 Supplement, section 473.901, subdivision 1, is amended to read:

Subdivision 1. [COSTS COVERED BY FEE.] Beginning July 1, 1995, the amount necessary to pay the following costs shall be paid from money is appropriated to the commissioner of administration for those costs from the 911 emergency telephone service account established under section 403.11:

(1) debt service costs and reserves for bonds issued pursuant to section 473.898;

(2) repayment of the right-of-way acquisition loans;

(3) costs of design, construction, maintenance of, and improvements to those elements of the first phase that support mutual aid communications and emergency medical services; or

(4) recurring charges for leased sites and equipment for those elements of the first phase that support actual aid and emergency medical communication services.

Money appropriated from the 911 emergency telephone service fee account This appropriation shall be used to pay annual debt service costs and reserves for bonds issued pursuant to section 473.898 prior to use of fee money to pay other costs eligible under this subdivision. In no event shall the money appropriated from the 911 emergency telephone service fee account for the first phase radio system this appropriation exceed an amount equal to four cents a month for each customer access line or other basic access service, including trunk equivalents as designated by the public utilities commission for access charge purposes and including cellular and other nonwire access services.

Sec. 17. Laws 1994, chapter 643, section 19, subdivision 8, as amended by Laws 1995, First Special Session chapter 2, article 1, section 45, is amended to read:

Sec. 45. Laws 1994, chapter 643, section 19, subdivision 8, is amended to read:

Subd. 8. Battle Point Historic Site 350,000

For design of the Battle Point historic site, preliminary plans for which were authorized in Laws 1990, chapter 610, article 1, section 17, and Laws 1992, chapter 558, section 24, subdivision 5.

Notwithstanding Laws 1990, chapter 610, article 1, section 17, the planned educational center will be owned by independent school district No. 115, Cass Lake-Bena, and is subject to Minnesota Statutes, section 16A.695. The center must be constructed on land leased to the school district by the Leech Lake Band of Chippewa Indians under a ground lease having an initial term of at least 20 years and a total term of at least 40 years, including renewal options. The school district must contract with the Leech Lake Band to operate the center on behalf of the council school district. The center and all classes and programs run by or through the center must be open to the public."

Delete the title and insert:

"A bill for an act relating to public administration; authorizing spending to acquire and to better public land and buildings and other public improvements of a capital nature with certain conditions; authorizing issuance of bonds; appropriating money, with certain conditions; amending Minnesota Statutes 1995 Supplement, section 473.901, subdivision 1; Laws 1994, chapter 643, section 19, subdivision 8, as amended; proposing coding for new law in Minnesota Statutes, chapter 116J."

With the recommendation that when so amended the bill pass and be re-referred to the Committee on Capital Investment.

The report was adopted.

Osthoff from the Committee on Financial Institutions and Insurance to which was referred:

S. F. No. 1040, A bill for an act relating to insurance; regulating the sale of long-term care insurance; amending Minnesota Statutes 1994, section 62A.49, subdivision 1; Minnesota Statutes 1995 Supplement, sections 62A.46, subdivision 2; and 62A.48, subdivision 1.

Reported the same back with the following amendments:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1995 Supplement, section 62A.46, subdivision 2, is amended to read:

Subd. 2. [LONG-TERM CARE POLICY.] "Long-term care policy" means an individual or group policy, certificate, subscriber contract, or other evidence of coverage that provides benefits for prescribed long-term care, including nursing facility services and or home care services, or both nursing facility services and home care services, pursuant to the requirements of sections 62A.46 to 62A.56.

Sections 62A.46, 62A.48, and 62A.52 to 62A.56 do not apply to a long-term care policy issued to (a) an employer or employers or to the trustee of a fund established by an employer where only employees or retirees, and dependents of employees or retirees, are eligible for coverage or (b) to a labor union or similar employee organization. The associations exempted from the requirements of sections 62A.31 to 62A.44 under 62A.31, subdivision 1, clause (c) shall not be subject to the provisions of sections 62A.46 to 62A.56 until July 1, 1988.

Sec. 2. Minnesota Statutes 1995 Supplement, section 62A.48, subdivision 1, is amended to read:

Subdivision 1. [POLICY REQUIREMENTS.] No individual or group policy, certificate, subscriber contract, or other evidence of coverage of nursing home care or other long-term care services shall be offered, issued, delivered, or renewed in this state, whether or not the policy is issued in this state, unless the policy is offered, issued, delivered, or renewed by a qualified insurer and the policy satisfies the requirements of sections 62A.46 to 62A.56. A long-term care policy must cover prescribed long-term care in nursing facilities and at least or the prescribed long-term home care services in section 62A.46, subdivision 4, clauses (1) to (5), provided by a home health agency. A long-term care policy may cover both prescribed long-term care in nursing facilities and the prescribed long-term home care services in section 62A.46, subdivision 4, clauses (1) to (5), provided by a home health agency. Coverage under a long-term care policy, other than one that covers only nursing facility services, must include: a minimum lifetime benefit limit of at least $25,000 for services, and. A long-term care policy that covers only nursing facility services must include a minimum lifetime benefit limit of not less than one year of nursing facility services. Nursing facility and home care coverages under a long-term care policy must not be subject to separate lifetime maximums for policies that cover both nursing facility and home health care. Prior hospitalization may not be required under a long-term care policy.

The policy must cover preexisting conditions during the first six months of coverage if the insured was not diagnosed or treated for the particular condition during the 90 days immediately preceding the effective date of coverage. Coverage under the policy may include a waiting period of up to 90 days before benefits are paid, but there must be no more than one waiting period per benefit period; for purposes of this sentence, "days" can mean calendar

or benefit days. If benefit days are used, an appropriate premium reduction and disclosure must be made. No policy may exclude coverage for mental or nervous disorders which have a demonstrable organic cause, such as Alzheimer's and related dementias. No policy may require the insured to be homebound or house confined to receive home care services. The policy must include a provision that the plan will not be canceled or renewal refused except on the grounds of nonpayment of the premium, provided that the insurer may change the premium rate on a class basis on any policy anniversary date. A provision that the policyholder may elect to have the premium paid in full at age 65 by payment of a higher premium up to age 65 may be offered. A provision that the premium would be waived during any period in which benefits are being paid to the insured during confinement in a nursing facility must be included. A nongroup policyholder may return a policy within 30 days of its delivery and have the premium refunded in full, less any benefits paid under the policy, if the policyholder is not satisfied for any reason.

No individual long-term care policy shall be offered or delivered in this state until the insurer has received from the insured a written designation of at least one person, in addition to the insured, who is to receive notice of cancellation of the policy for nonpayment of premium. The insured has the right to designate up to a total of three persons who are to receive the notice of cancellation, in addition to the insured. The form used for the written designation must inform the insured that designation of one person is required and that designation of up to two additional persons is optional and must provide space clearly designated for listing between one and three persons. The designation shall include each person's full name, home address, and telephone number. Each time an individual policy is renewed or continued, the insurer shall notify the insured of the right to change this written designation.

The insurer may file a policy form that utilizes a plan of care prepared as provided under section 62A.46, subdivision 5, clause (1) or (2).

Sec. 3. Minnesota Statutes 1994, section 62A.49, subdivision 1, is amended to read:

Subdivision 1. [GENERALLY.] Section 62A.48 does not prohibit the sale of policies, certificates, subscriber contracts, or other evidences of coverage that provide home care services only. This does not, however, remove the requirement that home care service benefits must be provided as part of a long-term care policy pursuant to that section. Home care services only policies may be sold, provided that they meet the requirements set forth in sections 62A.46 to 62A.56, except that they do not have to meet those conditions that relate to long-term care in nursing facilities. Disclosures and representations regarding these policies must be adjusted accordingly to remove references to coverage for nursing home care.

Sec. 4. [EFFECTIVE DATE.]

Sections 1 to 3 are effective the day following final enactment."

With the recommendation that when so amended the bill pass.

The report was adopted.

Anderson, R., from the Committee on Health and Human Services to which was referred:

S. F. No. 1879, A bill for an act relating to medical assistance; combining the alternative care program and the home- and community-based services waiver for the elderly program.

Reported the same back with the recommendation that the bill pass.

The report was adopted.

Carlson, L., from the Committee on Education to which was referred:

S. F. No. 2019, A bill for an act relating to education; clarifying approved costs for a magnet school facility; amending Minnesota Statutes 1994, section 124C.498, subdivision 3; Minnesota Statutes 1995 Supplement, section 124C.498, subdivision 2.

Reported the same back with the recommendation that the bill pass and be placed on the Consent Calendar.

The report was adopted.

Kalis from the Committee on Capital Investment to which was referred:

S. F. No. 2166, A bill for an act relating to capital improvements; permitting up to a 40-year term for certain bonds; amending Minnesota Statutes 1994, sections 429.091, subdivision 3; and 475.54, subdivisions 1 and 3.

Reported the same back with the recommendation that the bill pass.

The report was adopted.

H. F. Nos. 1303, 1922, 2052, 2065, 2193, 2259, 2322, 2336, 2386, 2402, 2485, 2633, 2639, 2670, 2842, 2873, 2889, 2930, 2952, 2953, 3013, 3053 and 3078 were read for the second time.

S. F. Nos. 1622, 2067, 2267, 2698, 1040, 1879, 2019 and 2166 were read for the second time.

The following House Files were introduced:

Rukavina introduced:

H. F. No. 3214, A bill for an act relating to public administration; modifying debt collection provisions; amending Minnesota Statutes 1994, sections 16D.04, as amended; 16D.05; 16D.07; 16D.08, as amended; and 16D.10; Minnesota Statutes 1995 Supplement, sections 16D.02, subdivision 8; 16D.06; 16D.11; 16D.12; 16D.14; and 16D.16.

The bill was read for the first time and referred to the Committee on Governmental Operations.

Rest introduced:

H. F. No. 3215, A bill for an act relating to taxation; repealing certain obsolete laws and removing obsolete references; amending Minnesota Statutes 1994, sections 290.0922, subdivision 3; 290.095, subdivision 3; 297A.15, subdivisions 5 and 6; 297A.21, subdivision 4; 297A.211, subdivision 3; 297A.24, subdivision 1; 297A.2572; 297A.2573; 297A.44, subdivision 1; 297A.46; and 298.01, subdivision 4e; Minnesota Statutes 1995 Supplement, section 297A.45, subdivisions 2, 3, and 4; repealing Minnesota Statutes 1994, sections 290.06, subdivision 21; 290.092; 295.37; 295.39; 295.40; 295.41; 295.42; 295.43; 297A.14, subdivision 3; and 297A.24, subdivision 2.

The bill was read for the first time and referred to the Committee on Taxes.

Bishop; Carlson, L.; Solberg; Kalis and Kelso introduced:

H. F. No. 3216, A bill for an act relating to bonds; providing for proper use of local bond proceeds; amending Minnesota Statutes 1994, section 475.58, by adding a subdivision.

The bill was read for the first time and referred to the Committee on Capital Investment.

Olson, E.; Ozment and Dauner introduced:

H. F. No. 3217, A bill for an act relating to claims against the state; providing for payment of various claims; appropriating money.

The bill was read for the first time and referred to the Committee on Ways and Means.

Sykora, Bettermann, Warkentin, Haas and Boudreau introduced:

H. F. No. 3218, A bill for an act relating to metropolitan airports; limiting metropolitan council zoning approval authority; prohibiting construction by metropolitan airports commission of new major airport; requiring inclusion of noise mitigation plan in capital improvement plan; requiring metropolitan airports commission to report on development of existing airport; requiring legislative approval of proposed development; requiring soundproofing of buildings in 1996 65 Ldn contour; requiring design and construction of limited-access transitway along trunk highway No. 55; authorizing regional railroad authority to transfer funds for transitway; authorizing metropolitan council to purchase met center; appropriating money; amending Minnesota Statutes 1994, sections 473.155, by adding a subdivision; 473.608, subdivisions 2, 6 and 16; 473.614, subdivision 1; 473.616, subdivision 1; 473.618; 473.638, subdivision 1; and 473.661, subdivision 4; Laws 1989, chapter 279, section 7, subdivisions 2 and 6; repealing Minnesota Statutes 1994, sections 473.155, subdivisions 2, 3, and 4; 473.1551; 473.616, subdivisions 2, 3, and 4; 473.636; and 473.637.

The bill was read for the first time and referred to the Committee on Local Government and Metropolitan Affairs.

Macklin, Lynch, Stanek, Lindner and Molnau introduced:

H. F. No. 3219, A bill for an act relating to metropolitan airports; limiting metropolitan council zoning approval authority; prohibiting construction by metropolitan airports commission of new major airport; requiring inclusion of noise mitigation plan in capital improvement plan; requiring metropolitan airports commission to report on development of existing airport; requiring legislative approval of proposed development; requiring soundproofing of buildings in 1996 65 Ldn contour; requiring design and construction of limited-access transitway along trunk highway No. 55; authorizing regional railroad authority to transfer funds for transitway; authorizing metropolitan council to purchase met center; appropriating money; amending Minnesota Statutes 1994, sections 473.155, by adding a subdivision; 473.608, subdivisions 2, 6 and 16; 473.614, subdivision 1; 473.616, subdivision 1; 473.618; 473.638, subdivision 1; and 473.661, subdivision 4; Laws 1989, chapter 279, section 7, subdivisions 2 and 6; repealing Minnesota Statutes 1994, sections 473.155, subdivisions 2, 3, and 4; 473.1551; 473.616, subdivisions 2, 3, and 4; 473.636; and 473.637.

The bill was read for the first time and referred to the Committee on Local Government and Metropolitan Affairs.

McCollum, Munger, Ozment, Wagenius and Pelowski introduced:

H. F. No. 3220, A bill for an act relating to highways; restricting size of bridges built over wild and scenic rivers; amending Minnesota Statutes 1994, section 165.02.

The bill was read for the first time and referred to the Committee on Transportation and Transit.

Schumacher introduced:

H. F. No. 3221, A bill for an act relating to data practices; law enforcement records on juveniles; modifying provisions on law enforcement agency notice to a school of certain incidents; amending Minnesota Statutes 1995 Supplement, section 260.161, subdivision 3.

The bill was read for the first time and referred to the Committee on Judiciary.

Peterson, Brown, Rice and Mahon introduced:

H. F. No. 3222, A bill for an act relating to education; appropriating money for a collaborative planning process for telecommunications in region 6W.

The bill was read for the first time and referred to the Committee on Education.

The following message was received from the Senate:

Mr. Speaker:

I hereby announce the passage by the Senate of the following Senate Files, herewith transmitted:

S. F. Nos. 2340, 2813, 1941, 2130 and 2111.

Patrick E. Flahaven, Secretary of the Senate

S. F. No. 2340, A bill for an act relating to crime prevention; defining the crime of motor vehicle operation resulting in bodily harm; prescribing penalties; amending Minnesota Statutes 1994, section 609.21, by adding a subdivision.

The bill was read for the first time and referred to the Committee on Judiciary Finance.

S. F. No. 2813, A bill for an act relating to commerce; regulating heavy and utility equipment manufacturers and dealers; modifying the definition of truck parts; amending Minnesota Statutes 1994, section 325E.068, subdivision 7.

The bill was read for the first time.

Daggett moved that S. F. No. 2813 and H. F. No. 3016, now on Special Orders, be referred to the Chief Clerk for comparison. The motion prevailed.

S. F. No. 1941, A bill for an act relating to the environment; specifying compliance requirements for certain existing individual sewage treatment systems; amending Minnesota Statutes 1994, section 115.55, subdivision 5.

The bill was read for the first time and referred to the Committee on Environment and Natural Resources.

S. F. No. 2130, A bill for an act relating to health; exempting certain community integrated service networks from providing the standard health maintenance organization benefit set; amending Minnesota Statutes 1994, section 62N.25, subdivision 5.

The bill was read for the first time and referred to the Committee on Health and Human Services.

S. F. No. 2111, A bill for an act relating to agriculture; changing requirements for certain commodity council referenda; amending Minnesota Statutes 1994, section 17.56, subdivision 5.

The bill was read for the first time.

Tunheim moved that S. F. No. 2111 and H. F. No. 2454, now on the Consent Calendar, be referred to the Chief Clerk for comparison. The motion prevailed.

H. F. No. 2318 was reported to the House.

Kahn moved to amend H. F. No. 2318, the first engrossment, as follows:

Page 5, line 27, after "of" insert "food and"

The motion prevailed and the amendment was adopted.

H. F. No. 2318, A bill for an act relating to lawful gambling; regulating expenditures and reports; providing enforcement powers; removing the restriction on compensation to persons who participate in the conduct of lawful gambling; amending Minnesota Statutes 1994, sections 349.151, subdivision 4; 349.166, subdivisions 2 and 3; 349.18, subdivision 1; and 349.19, subdivision 3; repealing Minnesota Statutes 1994, section 349.168, subdivision 3.

The bill was read for the third time, as amended, and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 129 yeas and 2 nays as follows:

Those who voted in the affirmative were:

Abrams       Farrell      Kinkel       Murphy       Smith
Anderson, R. Finseth      Knight       Ness         Solberg
Bakk         Frerichs     Knoblach     Olson, E.    Stanek
Bertram      Garcia       Koppendrayer Olson, M.    Sviggum
Bettermann   Girard       Kraus        Onnen        Swenson, D.
Bishop       Goodno       Krinkie      Opatz        Swenson, H.
Boudreau     Greenfield   Larsen       Orenstein    Sykora
Bradley      Greiling     Leighton     Orfield      Tomassoni
Broecker     Gunther      Leppik       Osskopp      Tompkins
Brown        Haas         Lieder       Ostrom       Trimble
Carlson, L.  Hackbarth    Lindner      Otremba      Tuma
Carlson, S.  Harder       Lourey       Ozment       Tunheim
Carruthers   Hasskamp     Luther       Paulsen      Van Dellen
Clark        Hausman      Lynch        Pawlenty     Van Engen
Commers      Holsten      Macklin      Pellow       Vickerman
Cooper       Huntley      Mahon        Pelowski     Wagenius
Daggett      Jaros        Mares        Perlt        Warkentin
Dauner       Jefferson    Mariani      Peterson     Weaver
Davids       Jennings     Marko        Pugh         Wejcman
Dawkins      Johnson, A.  McCollum     Rest         Wenzel
Dehler       Johnson, R.  McElroy      Rhodes       Winter
Delmont      Johnson, V.  McGuire      Rostberg     Wolf
Dempsey      Kahn         Milbert      Rukavina     Worke
Dorn         Kalis        Molnau       Sarna        Workman
Entenza      Kelley       Mulder       Schumacher   Sp.Anderson,I
Erhardt      Kelso        Munger       Seagren      

Long         Osthoff                   

S. F. No. 1909, A bill for an act relating to highways; designating a portion of marked trunk highway No. 52 in Fillmore county as the "Amish Buggy Byway"; amending Minnesota Statutes 1994, section 161.14, by adding a subdivision.

The bill was read for the third time and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 132 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams       Frerichs     Koppendrayer Olson, M.    Solberg
Anderson, R. Garcia       Kraus        Onnen        Stanek
Bakk         Girard       Krinkie      Opatz        Sviggum
Bertram      Goodno       Larsen       Orenstein    Swenson, D.
Bettermann   Greenfield   Leighton     Orfield      Swenson, H.
Boudreau     Greiling     Leppik       Osskopp      Sykora
Bradley      Gunther      Lieder       Osthoff      Tomassoni
Broecker     Haas         Lindner      Ostrom       Tompkins
Brown        Hackbarth    Long         Otremba      Trimble
Carlson, L.  Harder       Lourey       Ozment       Tuma
Carlson, S.  Hasskamp     Luther       Paulsen      Tunheim
Carruthers   Hausman      Lynch        Pawlenty     Van Dellen
Clark        Holsten      Macklin      Pellow       Van Engen
Commers      Huntley      Mahon        Pelowski     Vickerman
Cooper       Jaros        Mares        Perlt        Wagenius
Daggett      Jefferson    Mariani      Peterson     Warkentin
Dauner       Jennings     Marko        Pugh         Weaver
Davids       Johnson, A.  McCollum     Rest         Wejcman
Dawkins      Johnson, R.  McElroy      Rhodes       Wenzel
Dehler       Johnson, V.  McGuire      Rice         Winter
Delmont      Kahn         Milbert      Rostberg     Wolf
JOURNAL OF THE HOUSE - 81st Day - Top of Page 7245

Dempsey      Kalis        Molnau       Rukavina     Worke
Dorn         Kelley       Mulder       Sarna        Workman
Entenza      Kelso        Munger       Schumacher   Sp.Anderson,I
Erhardt      Kinkel       Murphy       Seagren      
Farrell      Knight       Ness         Skoglund     
Finseth      Knoblach     Olson, E.    Smith        

S. F. No. 1984, A bill for an act relating to natural resources; modifying and adding to the list of canoe and boating routes; amending Minnesota Statutes 1995 Supplement, section 85.32, subdivision 1.

The bill was read for the third time and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 132 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams       Finseth      Knoblach     Olson, E.    Solberg
Anderson, R. Frerichs     Koppendrayer Olson, M.    Stanek
Bakk         Garcia       Kraus        Onnen        Sviggum
Bertram      Girard       Krinkie      Opatz        Swenson, D.
Bettermann   Goodno       Larsen       Orenstein    Swenson, H.
Bishop       Greenfield   Leighton     Orfield      Sykora
Boudreau     Greiling     Leppik       Osskopp      Tomassoni
Bradley      Gunther      Lieder       Osthoff      Tompkins
Broecker     Haas         Lindner      Ostrom       Trimble
Brown        Hackbarth    Long         Otremba      Tuma
Carlson, L.  Harder       Lourey       Ozment       Tunheim
Carlson, S.  Hasskamp     Luther       Paulsen      Van Dellen
Carruthers   Hausman      Lynch        Pawlenty     Van Engen
Clark        Holsten      Macklin      Pellow       Vickerman
Commers      Huntley      Mahon        Pelowski     Wagenius
Cooper       Jaros        Mares        Perlt        Warkentin
Daggett      Jefferson    Mariani      Peterson     Weaver
Dauner       Jennings     Marko        Pugh         Wejcman
Davids       Johnson, A.  McCollum     Rest         Wenzel
Dawkins      Johnson, R.  McElroy      Rhodes       Winter
Dehler       Johnson, V.  McGuire      Rostberg     Wolf
Delmont      Kahn         Milbert      Rukavina     Worke
Dempsey      Kalis        Molnau       Sarna        Workman
Dorn         Kelley       Mulder       Schumacher   Sp.Anderson,I
Entenza      Kelso        Munger       Seagren      
Erhardt      Kinkel       Murphy       Skoglund     
Farrell      Knight       Ness         Smith        

S. F. No. 2012 was reported to the House.

Lourey and Solberg moved to amend S. F. No. 2012, the unofficial engrossment, as follows:

Page 1, after line 23, insert:

"Sec. 3. Minnesota Statutes 1994, section 161.14, is amended by adding a subdivision to read:

Subd. 34. [DALE WAYRYNEN MEMORIAL HIGHWAY.] That segment of marked trunk highway No. 210 located within Aitkin county is designated "Dale Wayrynen Memorial Highway." The commissioner of transportation shall erect appropriate signs after adopting a marking design for the signs, which suitably commemorates Dale Wayrynen, posthumous recipient of the Congressional Medal of Honor, for heroism displayed during the Vietnam War."

Page 1, line 25, delete "and 2" and insert "to 3"

Amend the title accordingly

Renumber the remaining section

The motion prevailed and the amendment was adopted.

S. F. No. 2012, A bill for an act relating to highways; designating a portion of marked trunk highway No. 22 as Victory Drive; designating a portion of marked trunk highway No. 15 as Veterans Memorial Highway; providing for reimbursement of costs; amending Minnesota Statutes 1994, section 161.14, by adding subdivisions.

The bill was read for the third time, as amended, and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 132 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams       Finseth      Koppendrayer Olson, M.    Solberg
Anderson, R. Frerichs     Kraus        Onnen        Stanek
Bakk         Garcia       Krinkie      Opatz        Sviggum
Bertram      Girard       Larsen       Orenstein    Swenson, D.
Bettermann   Goodno       Leighton     Orfield      Swenson, H.
Bishop       Greenfield   Leppik       Osskopp      Sykora
Boudreau     Greiling     Lieder       Osthoff      Tomassoni
Bradley      Gunther      Lindner      Ostrom       Tompkins
Broecker     Haas         Long         Otremba      Trimble
Brown        Hackbarth    Lourey       Ozment       Tuma
Carlson, L.  Harder       Luther       Paulsen      Tunheim
Carlson, S.  Hasskamp     Lynch        Pawlenty     Van Dellen
Carruthers   Holsten      Macklin      Pellow       Van Engen
Clark        Huntley      Mahon        Pelowski     Vickerman
Commers      Jaros        Mares        Perlt        Wagenius
Cooper       Jefferson    Mariani      Peterson     Warkentin
Daggett      Jennings     Marko        Pugh         Weaver
Dauner       Johnson, A.  McCollum     Rest         Wejcman
Davids       Johnson, R.  McElroy      Rhodes       Wenzel
Dawkins      Johnson, V.  McGuire      Rice         Winter
Dehler       Kahn         Milbert      Rostberg     Wolf
Delmont      Kalis        Molnau       Rukavina     Worke
Dempsey      Kelley       Mulder       Sarna        Workman
Dorn         Kelso        Munger       Schumacher   Sp.Anderson,I
Entenza      Kinkel       Murphy       Seagren      
Erhardt      Knight       Ness         Skoglund     
Farrell      Knoblach     Olson, E.    Smith        

S. F. No. 2121 was reported to the House.

Tuma moved to amend S. F. No. 2121, the unofficial engrossment, as follows:

Page 1, after line 15, insert "The people of the community, having resolved to support and financially back the marking of this highway, shall reimburse the department for costs incurred in marking and memorializing this highway."

The motion prevailed and the amendment was adopted.

S. F. No. 2121, A bill for an act relating to highways; designating the Czech Heritage Highway; amending Minnesota Statutes 1994, section 161.14, by adding a subdivision.

The bill was read for the third time, as amended, and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 131 yeas and 1 nay as follows:

Those who voted in the affirmative were:

Abrams       Finseth      Knoblach     Olson, M.    Stanek
Anderson, R. Frerichs     Koppendrayer Onnen        Sviggum
Bakk         Garcia       Kraus        Opatz        Swenson, D.
Bertram      Girard       Krinkie      Orenstein    Swenson, H.
Bettermann   Goodno       Larsen       Orfield      Sykora
Bishop       Greenfield   Leighton     Osskopp      Tomassoni
Boudreau     Greiling     Leppik       Osthoff      Tompkins
Bradley      Gunther      Lieder       Ostrom       Trimble
Broecker     Haas         Lindner      Otremba      Tuma
Brown        Hackbarth    Long         Ozment       Tunheim
Carlson, L.  Harder       Lourey       Paulsen      Van Dellen
Carlson, S.  Hasskamp     Luther       Pawlenty     Van Engen
Carruthers   Hausman      Lynch        Pellow       Vickerman
Clark        Holsten      Macklin      Perlt        Wagenius
Commers      Huntley      Mahon        Peterson     Warkentin
Cooper       Jaros        Mares        Pugh         Weaver
Daggett      Jefferson    Mariani      Rest         Wejcman
Dauner       Jennings     Marko        Rhodes       Wenzel
Davids       Johnson, A.  McElroy      Rice         Winter
Dawkins      Johnson, R.  McGuire      Rostberg     Wolf
Dehler       Johnson, V.  Milbert      Rukavina     Worke
Delmont      Kahn         Molnau       Sarna        Workman
Dempsey      Kalis        Mulder       Schumacher   Sp.Anderson,I
Dorn         Kelley       Munger       Seagren      
Entenza      Kelso        Murphy       Skoglund     
Erhardt      Kinkel       Ness         Smith        
Farrell      Knight       Olson, E.    Solberg      

McCollum                  

S. F. No. 2514, A bill for an act relating to civil commitment; clarifying the financial responsibility for hearings on the use of neuroleptic medications; amending Minnesota Statutes 1994, section 256G.08, subdivision 1.

The bill was read for the third time and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 133 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams       Finseth      Knoblach     Olson, E.    Smith
Anderson, R. Frerichs     Koppendrayer Olson, M.    Solberg
Bakk         Garcia       Kraus        Onnen        Stanek
Bertram      Girard       Krinkie      Opatz        Sviggum
Bettermann   Goodno       Larsen       Orenstein    Swenson, D.
Bishop       Greenfield   Leighton     Orfield      Swenson, H.
Boudreau     Greiling     Leppik       Osskopp      Sykora
Bradley      Gunther      Lieder       Osthoff      Tomassoni
Broecker     Haas         Lindner      Ostrom       Tompkins
Brown        Hackbarth    Long         Otremba      Trimble
Carlson, L.  Harder       Lourey       Ozment       Tuma
Carlson, S.  Hasskamp     Luther       Paulsen      Tunheim
Carruthers   Hausman      Lynch        Pawlenty     Van Dellen
Clark        Holsten      Macklin      Pellow       Van Engen
Commers      Huntley      Mahon        Pelowski     Vickerman
Cooper       Jaros        Mares        Perlt        Wagenius
Daggett      Jefferson    Mariani      Peterson     Warkentin
Dauner       Jennings     Marko        Pugh         Weaver
Davids       Johnson, A.  McCollum     Rest         Wejcman
Dawkins      Johnson, R.  McElroy      Rhodes       Wenzel
Dehler       Johnson, V.  McGuire      Rice         Winter
Delmont      Kahn         Milbert      Rostberg     Wolf
Dempsey      Kalis        Molnau       Rukavina     Worke
Dorn         Kelley       Mulder       Sarna        Workman
Entenza      Kelso        Munger       Schumacher   Sp.Anderson,I
Erhardt      Kinkel       Murphy       Seagren      
Farrell      Knight       Ness         Skoglund     

H. F. No. 219, A bill for an act relating to insurance; health plans; requiring coverage for treatment of Lyme disease; requiring a study; amending Minnesota Statutes 1994, section 62A.136; proposing coding for new law in Minnesota Statutes, chapter 62A.

The bill was read for the third time and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 87 yeas and 46 nays as follows:

Those who voted in the affirmative were:

Anderson, R. Goodno       Kinkel       Orenstein    Seagren
Bakk         Greenfield   Koppendrayer Orfield      Skoglund
Bertram      Greiling     Leighton     Osskopp      Smith
Bishop       Hackbarth    Lieder       Osthoff      Solberg
Brown        Hasskamp     Long         Ostrom       Swenson, D.
Carlson, L.  Hausman      Lourey       Otremba      Tomassoni
Carruthers   Holsten      Luther       Ozment       Trimble
Clark        Huntley      Macklin      Pawlenty     Tuma
Cooper       Jaros        Mahon        Pelowski     Tunheim
Dawkins      Jefferson    Mariani      Perlt        Wagenius
Delmont      Jennings     Marko        Peterson     Wejcman
Dempsey      Johnson, A.  McCollum     Pugh         Wenzel
Dorn         Johnson, R.  McGuire      Rest         Winter
Entenza      Johnson, V.  Milbert      Rhodes       Wolf
Erhardt      Kahn         Munger       Rice         Sp.Anderson,I
Farrell      Kalis        Murphy       Rukavina     
Finseth      Kelley       Olson, E.    Sarna        
Garcia       Kelso        Opatz        Schumacher   

Abrams       Dehler       Larsen       Onnen        Van Engen
Bettermann   Frerichs     Leppik       Paulsen      Vickerman
Boudreau     Girard       Lindner      Pellow       Warkentin
Bradley      Gunther      Lynch        Rostberg     Weaver
Broecker     Haas         Mares        Stanek       Worke
Carlson, S.  Harder       McElroy      Sviggum      Workman 
Commers      Knight       Molnau       Swenson, H.  
Daggett      Knoblach     Mulder       Sykora       
Dauner       Kraus        Ness         Tompkins     
Davids       Krinkie      Olson, M.    Van Dellen   

Bertram was excused for the remainder of today's session.

H. F. No. 3052, A bill for an act relating to insurance; clarifying that existing law prohibits insurers from terminating agents as a result of contacts with any branch of government; amending Minnesota Statutes 1994, section 72A.20, subdivision 20.

The bill was read for the third time and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 131 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams       Frerichs     Koppendrayer Olson, M.    Stanek
Anderson, R. Garcia       Kraus        Onnen        Sviggum
Bakk         Girard       Krinkie      Orenstein    Swenson, D.
JOURNAL OF THE HOUSE - 81st Day - Top of Page 7249

Bettermann   Goodno       Larsen       Orfield      Swenson, H.
Bishop       Greenfield   Leighton     Osskopp      Sykora
Boudreau     Greiling     Leppik       Osthoff      Tomassoni
Bradley      Gunther      Lieder       Ostrom       Tompkins
Broecker     Haas         Lindner      Otremba      Trimble
Brown        Hackbarth    Long         Ozment       Tuma
Carlson, L.  Harder       Lourey       Paulsen      Tunheim
Carlson, S.  Hasskamp     Luther       Pawlenty     Van Dellen
Carruthers   Hausman      Lynch        Pellow       Van Engen
Clark        Holsten      Macklin      Pelowski     Vickerman
Commers      Huntley      Mahon        Perlt        Wagenius
Cooper       Jaros        Mares        Peterson     Warkentin
Daggett      Jefferson    Mariani      Pugh         Weaver
Dauner       Jennings     Marko        Rest         Wejcman
Davids       Johnson, A.  McCollum     Rhodes       Wenzel
Dawkins      Johnson, R.  McElroy      Rice         Winter
Dehler       Johnson, V.  McGuire      Rostberg     Wolf
Delmont      Kahn         Milbert      Rukavina     Worke
Dempsey      Kalis        Molnau       Sarna        Workman
Dorn         Kelley       Mulder       Schumacher   Sp.Anderson,I
Entenza      Kelso        Munger       Seagren      
Erhardt      Kinkel       Murphy       Skoglund     
Farrell      Knight       Ness         Smith        
Finseth      Knoblach     Olson, E.    Solberg      

H. F. No. 2204, A bill for an act relating to civil actions; creating a nuisance action by individuals and neighborhood organizations; proposing coding for new law in Minnesota Statutes, chapter 617.

The bill was read for the third time and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 132 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams       Frerichs     Koppendrayer Olson, M.    Solberg
Anderson, R. Garcia       Kraus        Onnen        Stanek
Bakk         Girard       Krinkie      Opatz        Sviggum
Bettermann   Goodno       Larsen       Orenstein    Swenson, D.
Bishop       Greenfield   Leighton     Orfield      Swenson, H.
Boudreau     Greiling     Leppik       Osskopp      Sykora
Bradley      Gunther      Lieder       Osthoff      Tomassoni
Broecker     Haas         Lindner      Ostrom       Tompkins
Brown        Hackbarth    Long         Otremba      Trimble
Carlson, L.  Harder       Lourey       Ozment       Tuma
Carlson, S.  Hasskamp     Luther       Paulsen      Tunheim
Carruthers   Hausman      Lynch        Pawlenty     Van Dellen
Clark        Holsten      Macklin      Pellow       Van Engen
Commers      Huntley      Mahon        Pelowski     Vickerman
Cooper       Jaros        Mares        Perlt        Wagenius
Daggett      Jefferson    Mariani      Peterson     Warkentin
Dauner       Jennings     Marko        Pugh         Weaver
Davids       Johnson, A.  McCollum     Rest         Wejcman
Dawkins      Johnson, R.  McElroy      Rhodes       Wenzel
Dehler       Johnson, V.  McGuire      Rice         Winter
Delmont      Kahn         Milbert      Rostberg     Wolf
Dempsey      Kalis        Molnau       Rukavina     Worke
Dorn         Kelley       Mulder       Sarna        Workman
Entenza      Kelso        Munger       Schumacher   Sp.Anderson,I
Erhardt      Kinkel       Murphy       Seagren      
Farrell      Knight       Ness         Skoglund     
Finseth      Knoblach     Olson, E.    Smith        

H. F. No. 3162, A bill for an act relating to local government; permitting the city of Cohasset to own and operate a gas utility.

The bill was read for the third time and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 131 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams       Garcia       Kraus        Onnen        Stanek
Anderson, R. Girard       Krinkie      Opatz        Sviggum
JOURNAL OF THE HOUSE - 81st Day - Top of Page 7250

Bakk         Goodno       Larsen       Orenstein    Swenson, D.
Bettermann   Greenfield   Leighton     Orfield      Swenson, H.
Bishop       Greiling     Leppik       Osskopp      Sykora
Boudreau     Gunther      Lieder       Osthoff      Tomassoni
Bradley      Haas         Lindner      Ostrom       Tompkins
Broecker     Hackbarth    Long         Otremba      Trimble
Brown        Harder       Lourey       Ozment       Tuma
Carlson, L.  Hasskamp     Luther       Paulsen      Tunheim
Carlson, S.  Hausman      Lynch        Pawlenty     Van Dellen
Carruthers   Holsten      Macklin      Pellow       Van Engen
Clark        Huntley      Mahon        Pelowski     Vickerman
Commers      Jaros        Mares        Perlt        Wagenius
Cooper       Jefferson    Mariani      Peterson     Warkentin
Daggett      Jennings     Marko        Pugh         Weaver
Dauner       Johnson, A.  McCollum     Rest         Wejcman
Davids       Johnson, R.  McElroy      Rhodes       Wenzel
Dehler       Johnson, V.  McGuire      Rice         Winter
Delmont      Kahn         Milbert      Rostberg     Wolf
Dempsey      Kalis        Molnau       Rukavina     Worke
Dorn         Kelley       Mulder       Sarna        Workman
Entenza      Kelso        Munger       Schumacher   Sp.Anderson,I
Erhardt      Kinkel       Murphy       Seagren      
Farrell      Knight       Ness         Skoglund     
Finseth      Knoblach     Olson, E.    Smith        
Frerichs     Koppendrayer Olson, M.    Solberg      

H. F. No. 2788, A bill for an act relating to liquor; modifying restrictions for temporary on-sale licenses; amending Minnesota Statutes 1995 Supplement, sections 340A.404, subdivision 10; and 340A.410, subdivision 10.

The bill was read for the third time and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 127 yeas and 4 nays as follows:

Those who voted in the affirmative were:

Abrams       Frerichs     Koppendrayer Olson, E.    Stanek
Bakk         Garcia       Kraus        Olson, M.    Sviggum
Bettermann   Girard       Krinkie      Opatz        Swenson, D.
Bishop       Goodno       Larsen       Orenstein    Swenson, H.
Boudreau     Greenfield   Leighton     Orfield      Sykora
Bradley      Greiling     Leppik       Osskopp      Tomassoni
Broecker     Gunther      Lieder       Ostrom       Tompkins
Brown        Haas         Lindner      Otremba      Trimble
Carlson, L.  Hackbarth    Long         Ozment       Tuma
Carlson, S.  Harder       Lourey       Paulsen      Tunheim
Carruthers   Hasskamp     Luther       Pawlenty     Van Dellen
Clark        Hausman      Lynch        Pellow       Van Engen
Commers      Holsten      Macklin      Pelowski     Vickerman
Cooper       Huntley      Mahon        Perlt        Wagenius
Daggett      Jefferson    Mares        Peterson     Warkentin
Dauner       Jennings     Mariani      Pugh         Weaver
Davids       Johnson, A.  Marko        Rest         Wejcman
Dawkins      Johnson, R.  McCollum     Rhodes       Wenzel
Dehler       Johnson, V.  McElroy      Rice         Winter
Delmont      Kahn         McGuire      Rostberg     Wolf
Dempsey      Kalis        Milbert      Rukavina     Worke
Dorn         Kelley       Molnau       Sarna        Workman
Entenza      Kelso        Mulder       Schumacher   Sp.Anderson,I
Erhardt      Kinkel       Munger       Seagren      
Farrell      Knight       Murphy       Smith        
Finseth      Knoblach     Ness         Solberg      

Anderson, R. Onnen        Osthoff      Skoglund     

Carruthers, from the Committee on Rules and Legislative Administration, pursuant to rule 1.09, designated the following bills as Special Orders to be acted upon today:

S. F. No. 1936; H. F. Nos. 2525 and 2222; S. F. No. 1812; and H. F. Nos. 732, 2483, 2526, 2059, 1313 and 2528.

S. F. No. 1936, A bill for an act relating to the state lottery; providing that the director may permit a lottery retailer to sell tickets at more than one location; eliminating the requirement that lottery retailers post a bond with the lottery; amending Minnesota Statutes 1994, section 349A.06, subdivisions 1, 3, and 11.

The bill was read for the third time and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 111 yeas and 21 nays as follows:

Those who voted in the affirmative were:

Abrams       Farrell      Kelso        Opatz        Solberg
Anderson, R. Finseth      Kinkel       Orenstein    Stanek
Bakk         Frerichs     Knoblach     Orfield      Swenson, D.
Bettermann   Girard       Kraus        Osskopp      Sykora
Bishop       Goodno       Larsen       Osthoff      Tomassoni
Boudreau     Greiling     Leighton     Ostrom       Tompkins
Bradley      Gunther      Leppik       Otremba      Trimble
Broecker     Haas         Lieder       Ozment       Tuma
Brown        Hackbarth    Lourey       Paulsen      Tunheim
Carlson, L.  Harder       Lynch        Pawlenty     Van Dellen
Carlson, S.  Hasskamp     Macklin      Pellow       Van Engen
Carruthers   Hausman      Mahon        Pelowski     Vickerman
Commers      Holsten      Mares        Perlt        Warkentin
Cooper       Huntley      Mariani      Peterson     Weaver
Daggett      Jaros        McElroy      Pugh         Wenzel
Dauner       Jefferson    McGuire      Rest         Winter
Dawkins      Jennings     Milbert      Rhodes       Worke
Dehler       Johnson, A.  Molnau       Rice         Workman
Delmont      Johnson, R.  Mulder       Rostberg     Sp.Anderson,I
Dempsey      Johnson, V.  Munger       Rukavina     
Dorn         Kahn         Murphy       Sarna        
Entenza      Kalis        Ness         Schumacher   
Erhardt      Kelley       Olson, E.    Smith        

Clark        Koppendrayer Marko        Skoglund     Wolf 
Davids       Krinkie      McCollum     Sviggum      
Garcia       Lindner      Olson, M.    Swenson, H.  
Greenfield   Long         Onnen        Wagenius     
Knight       Luther       Seagren      Wejcman      

H. F. No. 2525 was reported to the House.

Rukavina moved to amend H. F. No. 2525, the first engrossment, as follows:

Page 1, delete lines 8 to 15 and insert:

"(a) When a new motor vehicle dealership is located in a city in the taconite relief area and a portion of the city has been displaced by mining activities, Minnesota Statutes, section 80E.14, does not apply to a proposed relocation of the dealership provided the new location is within a three-mile radius of the existing location and a request to relocate is made before December 31, 1996."

The motion prevailed and the amendment was adopted.

H. F. No. 2525, A bill for an act relating to commerce; providing for the relocation of an existing new motor vehicle dealership under certain specified conditions.

The bill was read for the third time, as amended, and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 91 yeas and 39 nays as follows:

Those who voted in the affirmative were:

Anderson, R. Garcia       Knoblach     Olson, E.    Schumacher
Bakk         Greenfield   Kraus        Onnen        Skoglund
Bishop       Greiling     Larsen       Opatz        Smith
Bradley      Gunther      Leighton     Orenstein    Solberg
Brown        Hasskamp     Leppik       Orfield      Stanek
Carlson, L.  Hausman      Lieder       Osskopp      Swenson, H.
Carruthers   Holsten      Long         Osthoff      Tomassoni
Clark        Huntley      Lourey       Ostrom       Tompkins
Cooper       Jaros        Luther       Otremba      Trimble
Davids       Jefferson    Mahon        Ozment       Tunheim
Dawkins      Jennings     Mariani      Pellow       Wagenius
Dehler       Johnson, A.  Marko        Pelowski     Wejcman
Delmont      Johnson, R.  McCollum     Perlt        Wenzel
Dempsey      Johnson, V.  McGuire      Peterson     Winter
Dorn         Kahn         Milbert      Pugh         Sp.Anderson,I
Entenza      Kalis        Mulder       Rest         
Erhardt      Kelley       Munger       Rhodes       
Farrell      Kelso        Murphy       Rukavina     
Finseth      Kinkel       Ness         Sarna        

Abrams       Girard       Lindner      Pawlenty     Van Engen
Bettermann   Goodno       Lynch        Rostberg     Vickerman
Boudreau     Haas         Macklin      Seagren      Warkentin
Broecker     Hackbarth    Mares        Sviggum      Weaver
Carlson, S.  Harder       McElroy      Swenson, D.  Wolf
Commers      Knight       Molnau       Sykora       Worke
Daggett      Koppendrayer Olson, M.    Tuma         Workman 
Frerichs     Krinkie      Paulsen      Van Dellen   

H. F. No. 2222, A bill for an act relating to state government; excepting certain contracts from certain contract management requirements; abolishing certain reports and providing for a comprehensive annual report by the department of economic security; providing a mission statement for the department of economic security; amending Minnesota Statutes 1994, sections 268.0122, subdivisions 3 and 4; and 268.65, subdivision 1; Minnesota Statutes 1995 Supplement, sections 16B.06, subdivision 2a; 268.0122, subdivision 6; 268.0124; 268.363; and 268.98, subdivision 2; proposing coding for new law in Minnesota Statutes, chapter 268; repealing Minnesota Statutes 1994, sections 268.367; 268.37, subdivision 5; and 268.38, subdivision 11; Minnesota Statutes 1995 Supplement, section 268.92, subdivision 10.

The bill was read for the third time and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 132 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams       Frerichs     Koppendrayer Olson, M.    Solberg
Anderson, R. Garcia       Kraus        Onnen        Stanek
Bakk         Girard       Krinkie      Opatz        Sviggum
Bettermann   Goodno       Larsen       Orenstein    Swenson, D.
Bishop       Greenfield   Leighton     Orfield      Swenson, H.
Boudreau     Greiling     Leppik       Osskopp      Sykora
Bradley      Gunther      Lieder       Osthoff      Tomassoni
Broecker     Haas         Lindner      Ostrom       Tompkins
Brown        Hackbarth    Long         Otremba      Trimble
Carlson, L.  Harder       Lourey       Ozment       Tuma
Carlson, S.  Hasskamp     Luther       Paulsen      Tunheim
Carruthers   Hausman      Lynch        Pawlenty     Van Dellen
Clark        Holsten      Macklin      Pellow       Van Engen
Commers      Huntley      Mahon        Pelowski     Vickerman
Cooper       Jaros        Mares        Perlt        Wagenius
Daggett      Jefferson    Mariani      Peterson     Warkentin
Dauner       Jennings     Marko        Pugh         Weaver
JOURNAL OF THE HOUSE - 81st Day - Top of Page 7253

Davids       Johnson, A.  McCollum     Rest         Wejcman
Dawkins      Johnson, R.  McElroy      Rhodes       Wenzel
Dehler       Johnson, V.  McGuire      Rice         Winter
Delmont      Kahn         Milbert      Rostberg     Wolf
Dempsey      Kalis        Molnau       Rukavina     Worke
Dorn         Kelley       Mulder       Sarna        Workman
Entenza      Kelso        Munger       Schumacher   Sp.Anderson,I
Erhardt      Kinkel       Murphy       Seagren      
Farrell      Knight       Ness         Skoglund     
Finseth      Knoblach     Olson, E.    Smith        

S. F. No. 1812 was reported to the House.

Clark moved to amend S. F. No. 1812, the unofficial engrossment, as follows:

Page 2, line 18, delete "secure the"

Page 2, delete line 19 and insert "work with neighborhood associations to develop and implement plans to secure vacant buildings in a timely and cost-effective fashion. The city may use rehabilitation and revitalization funds in implementing this section."

Page 2, after line 19, insert:

"Subd. 4. [EMERGENCY SECURING.] A city may provide by ordinance for emergency securing of a building that presents an immediate danger to the health and safety of persons in the community."

The motion prevailed and the amendment was adopted.

S. F. No. 1812, A bill for an act relating to housing; securing vacant buildings; amending Minnesota Statutes 1994, sections 463.251; and 582.031, subdivision 2.

The bill was read for the third time, as amended, and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 115 yeas and 16 nays as follows:

Those who voted in the affirmative were:

Abrams       Greenfield   Leighton     Orfield      Swenson, D.
Anderson, R. Greiling     Leppik       Osskopp      Swenson, H.
Bakk         Gunther      Lieder       Osthoff      Sykora
Brown        Haas         Long         Ostrom       Tomassoni
Carlson, L.  Harder       Lourey       Otremba      Tompkins
Carlson, S.  Hasskamp     Luther       Ozment       Trimble
Carruthers   Hausman      Lynch        Paulsen      Tuma
Clark        Holsten      Macklin      Pawlenty     Tunheim
Commers      Huntley      Mahon        Pelowski     Van Dellen
Cooper       Jaros        Mares        Perlt        Van Engen
Daggett      Jefferson    Mariani      Peterson     Vickerman
Dauner       Jennings     Marko        Pugh         Wagenius
Dawkins      Johnson, A.  McCollum     Rest         Warkentin
Dehler       Johnson, R.  McElroy      Rhodes       Weaver
Delmont      Johnson, V.  McGuire      Rice         Wejcman
Dempsey      Kahn         Milbert      Rostberg     Wenzel
Dorn         Kalis        Molnau       Rukavina     Winter
Entenza      Kelley       Mulder       Sarna        Wolf
Farrell      Kelso        Munger       Schumacher   Sp.Anderson,I
Finseth      Kinkel       Murphy       Seagren      
Frerichs     Knoblach     Ness         Skoglund     
Garcia       Koppendrayer Olson, E.    Smith        
Girard       Kraus        Opatz        Solberg      
Goodno       Larsen       Orenstein    Stanek       

Bettermann   Davids       Krinkie      Pellow       
Boudreau     Erhardt      Lindner      Sviggum      
Bradley      Hackbarth    Olson, M.    Worke        
Broecker     Knight       Onnen        Workman      

H. F. No. 732, A bill for an act relating to commerce; regulating the enforcement of copyright licenses on certain nondramatic musical works and similar works; requiring certain notices; prohibiting certain practices; providing remedies; proposing coding for new law in Minnesota Statutes, chapter 325E.

The bill was read for the third time and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 132 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams       Frerichs     Koppendrayer Olson, M.    Solberg
Anderson, R. Garcia       Kraus        Onnen        Stanek
Bakk         Girard       Krinkie      Opatz        Sviggum
Bettermann   Goodno       Larsen       Orenstein    Swenson, D.
Bishop       Greenfield   Leighton     Orfield      Swenson, H.
Boudreau     Greiling     Leppik       Osskopp      Sykora
Bradley      Gunther      Lieder       Osthoff      Tomassoni
Broecker     Haas         Lindner      Ostrom       Tompkins
Brown        Hackbarth    Long         Otremba      Trimble
Carlson, L.  Harder       Lourey       Ozment       Tuma
Carlson, S.  Hasskamp     Luther       Paulsen      Tunheim
Carruthers   Hausman      Lynch        Pawlenty     Van Dellen
Clark        Holsten      Macklin      Pellow       Van Engen
Commers      Huntley      Mahon        Pelowski     Vickerman
Cooper       Jaros        Mares        Perlt        Wagenius
Daggett      Jefferson    Mariani      Peterson     Warkentin
Dauner       Jennings     Marko        Pugh         Weaver
Davids       Johnson, A.  McCollum     Rest         Wejcman
Dawkins      Johnson, R.  McElroy      Rhodes       Wenzel
Dehler       Johnson, V.  McGuire      Rice         Winter
Delmont      Kahn         Milbert      Rostberg     Wolf
Dempsey      Kalis        Molnau       Rukavina     Worke
Dorn         Kelley       Mulder       Sarna        Workman
Entenza      Kelso        Munger       Schumacher   Sp.Anderson,I
Erhardt      Kinkel       Murphy       Seagren      
Farrell      Knight       Ness         Skoglund     
Finseth      Knoblach     Olson, E.    Smith        

H. F. No. 2483, A bill for an act relating to courts; clarifying the process for applying for a writ of certiorari; amending Minnesota Statutes 1994, section 606.01; proposing coding for new law in Minnesota Statutes, chapter 543.

The bill was read for the third time and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 132 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams       Frerichs     Koppendrayer Olson, M.    Solberg
Anderson, R. Garcia       Kraus        Onnen        Stanek
Bakk         Girard       Krinkie      Opatz        Sviggum
Bettermann   Goodno       Larsen       Orenstein    Swenson, D.
JOURNAL OF THE HOUSE - 81st Day - Top of Page 7255

Bishop       Greenfield   Leighton     Orfield      Swenson, H.
Boudreau     Greiling     Leppik       Osskopp      Sykora
Bradley      Gunther      Lieder       Osthoff      Tomassoni
Broecker     Haas         Lindner      Ostrom       Tompkins
Brown        Hackbarth    Long         Otremba      Trimble
Carlson, L.  Harder       Lourey       Ozment       Tuma
Carlson, S.  Hasskamp     Luther       Paulsen      Tunheim
Carruthers   Hausman      Lynch        Pawlenty     Van Dellen
Clark        Holsten      Macklin      Pellow       Van Engen
Commers      Huntley      Mahon        Pelowski     Vickerman
Cooper       Jaros        Mares        Perlt        Wagenius
Daggett      Jefferson    Mariani      Peterson     Warkentin
Dauner       Jennings     Marko        Pugh         Weaver
Davids       Johnson, A.  McCollum     Rest         Wejcman
Dawkins      Johnson, R.  McElroy      Rhodes       Wenzel
Dehler       Johnson, V.  McGuire      Rice         Winter
Delmont      Kahn         Milbert      Rostberg     Wolf
Dempsey      Kalis        Molnau       Rukavina     Worke
Dorn         Kelley       Mulder       Sarna        Workman
Entenza      Kelso        Munger       Schumacher   Sp.Anderson,I
Erhardt      Kinkel       Murphy       Seagren      
Farrell      Knight       Ness         Skoglund     
Finseth      Knoblach     Olson, E.    Smith        

H. F. No. 2526, A bill for an act relating to crime; making it a crime to obtain cellular telephone service through cellular counterfeiting; requiring forfeiture of cloning paraphernalia used to create cloned cellular telephones; prescribing penalties; amending Minnesota Statutes 1994, section 609.531, subdivision 1; proposing coding for new law in Minnesota Statutes, chapter 609.

The bill was read for the third time and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 131 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams       Frerichs     Kraus        Onnen        Stanek
Anderson, R. Garcia       Krinkie      Opatz        Sviggum
Bakk         Girard       Larsen       Orenstein    Swenson, D.
Bettermann   Goodno       Leighton     Orfield      Swenson, H.
Bishop       Greiling     Leppik       Osskopp      Sykora
Boudreau     Gunther      Lieder       Osthoff      Tomassoni
Bradley      Haas         Lindner      Ostrom       Tompkins
Broecker     Hackbarth    Long         Otremba      Trimble
Brown        Harder       Lourey       Ozment       Tuma
Carlson, L.  Hasskamp     Luther       Paulsen      Tunheim
Carlson, S.  Hausman      Lynch        Pawlenty     Van Dellen
Carruthers   Holsten      Macklin      Pellow       Van Engen
Clark        Huntley      Mahon        Pelowski     Vickerman
Commers      Jaros        Mares        Perlt        Wagenius
Cooper       Jefferson    Mariani      Peterson     Warkentin
Daggett      Jennings     Marko        Pugh         Weaver
Dauner       Johnson, A.  McCollum     Rest         Wejcman
Davids       Johnson, R.  McElroy      Rhodes       Wenzel
Dawkins      Johnson, V.  McGuire      Rice         Winter
Dehler       Kahn         Milbert      Rostberg     Wolf
Delmont      Kalis        Molnau       Rukavina     Worke
Dempsey      Kelley       Mulder       Sarna        Workman
Dorn         Kelso        Munger       Schumacher   Sp.Anderson,I
Entenza      Kinkel       Murphy       Seagren      
Erhardt      Knight       Ness         Skoglund     
Farrell      Knoblach     Olson, E.    Smith        
Finseth      Koppendrayer Olson, M.    Solberg      

H. F. No. 2059, A bill for an act relating to veterinarians; changing the veterinary practice act; amending Minnesota Statutes 1994, sections 156.001, subdivisions 3 and 6; 156.01, subdivisions 1, 2, 5, and by adding a subdivision; 156.02; 156.04; 156.05; 156.06; 156.07; 156.071; 156.072; 156.081; 156.10; 156.12, subdivisions 2, 3, and 4; 156.16, subdivisions 3 and 14; 156.17; and 156.18, subdivisions 1 and 2; proposing coding for new law in Minnesota Statutes, chapter 156; repealing Minnesota Statutes 1994, section 156.12, subdivision 5.

The bill was read for the third time and placed upon its final passage.

The question was taken on the passage of the bill and the roll was called. There were 124 yeas and 8 nays as follows:

Those who voted in the affirmative were:

Abrams       Garcia       Koppendrayer Onnen        Smith
Anderson, R. Girard       Kraus        Opatz        Solberg
Bakk         Goodno       Larsen       Orenstein    Stanek
Bettermann   Greenfield   Leighton     Orfield      Sviggum
Bishop       Greiling     Leppik       Osskopp      Swenson, D.
Boudreau     Gunther      Lieder       Osthoff      Swenson, H.
Bradley      Haas         Long         Ostrom       Sykora
Brown        Hackbarth    Lourey       Otremba      Tomassoni
Carlson, L.  Harder       Luther       Ozment       Tompkins
Carlson, S.  Hasskamp     Lynch        Paulsen      Trimble
JOURNAL OF THE HOUSE - 81st Day - Top of Page 7256

Carruthers   Hausman      Macklin      Pawlenty     Tuma
Clark        Holsten      Mahon        Pellow       Tunheim
Cooper       Huntley      Mares        Pelowski     Van Dellen
Daggett      Jaros        Mariani      Perlt        Van Engen
Dauner       Jefferson    Marko        Peterson     Vickerman
Davids       Jennings     McCollum     Pugh         Wagenius
Dawkins      Johnson, A.  McElroy      Rest         Weaver
Dehler       Johnson, R.  McGuire      Rhodes       Wejcman
Delmont      Johnson, V.  Milbert      Rice         Wenzel
Dempsey      Kahn         Molnau       Rostberg     Winter
Dorn         Kalis        Mulder       Rukavina     Wolf
Entenza      Kelley       Munger       Sarna        Worke
Erhardt      Kelso        Murphy       Schumacher   Workman
Farrell      Kinkel       Ness         Seagren      Sp.Anderson,I
Finseth      Knoblach     Olson, E.    Skoglund     

Broecker     Frerichs     Krinkie      Olson, M.    
Commers      Knight       Lindner      Warkentin    

Carruthers moved that the remaining bills on Special Orders for today be continued. The motion prevailed.

Carruthers moved that the bills on General Orders for today be continued. The motion prevailed.

Dempsey moved that his name be stricken as an author on H. F. No. 140. The motion prevailed.

Winter moved that the name of Workman be added as an author on H. F. No. 408. The motion prevailed.

Skoglund moved that the names of Luther and Pawlenty be added as authors on H. F. No. 2045. The motion prevailed.

Sviggum moved that the name of Larsen be added as an author on H. F. No. 2186. The motion prevailed.

Tuma moved that the name of Molnau be added as an author on H. F. No. 2439. The motion prevailed.

Orfield moved that the names of Clark and Wejcman be added as authors on H. F. No. 2445. The motion prevailed.

Kraus moved that the name of Warkentin be added as an author on H. F. No. 2457. The motion prevailed.

Kraus moved that the name of Warkentin be added as an author on H. F. No. 2492. The motion prevailed.

Van Dellen moved that the name of Gunther be added as an author on H. F. No. 2501. The motion prevailed.

Johnson, V., moved that the name of Gunther be added as an author on H. F. No. 2537. The motion prevailed.

Macklin moved that the name of Carlson, S., be added as an author on H. F. No. 2538. The motion prevailed.

Macklin moved that the names of Warkentin and Gunther be added as authors on H. F. No. 2541. The motion prevailed.

Daggett moved that the name of Gunther be added as an author on H. F. No. 2546. The motion prevailed.

Van Dellen moved that the names of Gunther amd Carlson, S., be added as authors on H. F. No. 2613. The motion prevailed.

Bettermann moved that the names of Carlson, S., and Gunther be added as authors on H. F. No. 2661. The motion prevailed.

Orfield moved that the names of Rice and Jefferson be added as authors on H. F. No. 2686. The motion prevailed.

Milbert moved that the name of Weaver be added as an author on H. F. No. 2799. The motion prevailed.

Hasskamp moved that the name of Kelso be added as an author on H. F. No. 2984. The motion prevailed.

Clark moved that the name of Rest be shown as chief author on H. F. No. 3174. The motion prevailed.

Johnson, V., moved that the name of Mulder be added as an author on H. F. No. 3178. The motion prevailed.

Winter moved that the name of Peterson be added as an author on H. F. No. 3208. The motion prevailed.

Olson, M., moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the negative on Thursday, February 15, 1996, when the vote was taken on the Kraus et al amendment to S. F. No. 302, the second unofficial engrossment, as amended." The motion prevailed.

Ozment moved that the following statement be printed in the Journal of the House: "It was my intention to vote in the negative on Thursday, February 15, 1996, when the vote was taken on the Kraus et al amendment to S. F. No. 302, the second unofficial engrossment, as amended." The motion prevailed.

Orfield moved that H. F. No. 2540 be recalled from the Committee on Health and Human Services and be re-referred to the Committee on Taxes. The motion prevailed.

Solberg moved that H. F. No. 2895 be recalled from the Committee on Ways and Means and be re-referred to the Committee on Economic Development, Infrastructure and Regulation Finance. The motion prevailed.

Bettermann moved that H. F. No. 2612, now on General Orders, be re-referred to the Committee on Capital Investment. The motion prevailed.

Sviggum moved that H. F. Nos. 12, 2186 and 2202 be returned to their author. The motion prevailed.

Pellow moved that H. F. Nos. 1953 and 2838 be returned to their author. The motion prevailed.

Van Dellen moved that H. F. Nos. 2195, 2613, 2614 and 2810 be returned to their author. The motion prevailed.

Mulder moved that H. F. No. 2657 be returned to its author. The motion prevailed.

Daggett moved that H. F. No. 2995 be returned to its author. The motion prevailed.

Bakk moved that H. F. No. 3072 be returned to its author. The motion prevailed.

Carruthers moved that when the House adjourns today it adjourn until 2:30 p.m., Wednesday, February 21, 1996. The motion prevailed.

Carruthers moved that the House adjourn. The motion prevailed, and the Speaker declared the House stands adjourned until 2:30 p.m., Wednesday, February 21, 1996.

Edward A. Burdick, Chief Clerk, House of Representatives

Comments: webmaster@house.leg.state.mn.us