Journal of the House - 109th Day - Thursday, April 9, 1998 - Part 1 pages 9511-9713
Journal of the House - 109th Day - Thursday, April 9, 1998 - Part 3 pages 9896-10274

Journal of the House - 109th Day - Thursday, April 9, 1998 - Top of Page 9714

CONFERENCE COMMITTEE REPORT ON S. F. NO. 2351

A bill for an act relating to natural resources; adding to and deleting from state parks; creating a new recreation area; providing for a state park permit exemption; amending Minnesota Statutes 1996, section 85.054, by adding a subdivision.

April 8, 1998

The Honorable Allan H. Spear

President of the Senate

The Honorable Phil Carruthers

Speaker of the House of Representatives

We, the undersigned conferees for S. F. No. 2351, report that we have agreed upon the items in dispute and recommend as follows:

That the House recede from its amendment and that S. F. No. 2351 be further amended as follows:

Page 5, delete lines 20 to 26 and insert:

"Subd. 3. [ADMINISTRATION.] The commissioner of natural resources shall administer the area according to Minnesota Statutes, section 86A.05, subdivision 3, subject to existing rules and regulations for state recreation areas and shall allow hunting in the area. The commissioner may not adopt new rules or regulations that would limit or restrict recreational uses of Garden Island as a state recreation area without legislative approval. The commissioner shall hold a public meeting in Lake of the Woods county in conjunction with developing a management plan for the area."

We request adoption of this report and repassage of the bill.

Senate Conferees: Jim Vickerman, LeRoy A. Stumpf and Pat Pariseau.

House Conferees: Henry J. Kalis, Tom Osthoff and Kathleen Sekhon.

Kalis moved that the report of the Conference Committee on S. F. No. 2351 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.

S. F. No. 2351, A bill for an act relating to natural resources; adding to and deleting from state parks; creating a new recreation area; providing for a state park permit exemption; amending Minnesota Statutes 1996, section 85.054, by adding a subdivision.

The bill was read for the third time, as amended by Conference, and placed upon its repassage.

The question was taken on the repassage of the bill and the roll was called.

Winter moved that those not voting be excused from voting. The motion prevailed.

There were 121 yeas and 11 nays as follows:

Those who voted in the affirmative were:

Abrams Erhardt Johnson, R. Milbert Reuter Tompkins
Anderson, I. Erickson Juhnke Molnau Rhodes Trimble
Bakk Evans Kahn Mulder Rifenberg Tuma
Bettermann Farrell Kalis Mullery Rostberg Tunheim
Biernat Finseth Kinkel Munger Rukavina Van Dellen
Bishop Folliard Koskinen Murphy Schumacher Vandeveer
Boudreau Garcia Kraus Ness Seagren Wagenius
Bradley Goodno Kubly Nornes Seifert Weaver
Broecker Greenfield Larsen Olson, E. Sekhon Wejcman
Carlson Greiling Leighton Opatz Skare Wenzel
Chaudhary Gunther Leppik Orfield Skoglund Westfall
Clark, J. Haas Lieder Osthoff Slawik Westrom
Clark, K. Harder Long Otremba, M. Smith Winter
Commers Hausman Macklin Ozment Solberg Wolf
Daggett Hilty Mahon Paulsen Stanek Workman
Davids Holsten Mares Pawlenty Stang Spk. Carruthers
Dawkins Huntley Mariani Paymar Sviggum
Delmont Jaros Marko Pelowski Swenson, H.
Journal of the House - 109th Day - Thursday, April 9, 1998 - Top of Page 9715
Dempsey Jefferson McCollum Peterson Sykora
Dorn Jennings McElroy Pugh Tingelstad
Entenza Johnson, A. McGuire Rest Tomassoni

Those who voted in the negative were:

Anderson, B. Hasskamp Knight Krinkie Lindner Osskopp
Dehler Kielkucki Knoblach Kuisle Olson, M.

The bill was repassed, as amended by Conference, and its title agreed to.

CALL OF THE HOUSE LIFTED

Kahn moved that the call of the House be suspended. The motion prevailed and it was so ordered.

Mr. Speaker:

I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on:

S. F. No. 41.

The Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee. Said Senate File is herewith transmitted to the House.

Patrick E. Flahaven, Secretary of the Senate

CONFERENCE COMMITTEE REPORT ON S. F. NO. 41

A bill for an act proposing an amendment to the Minnesota Constitution, article 1, by adding a section; affirming the right of citizens to hunt or take game and fish.

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April 8, 1998

The Honorable Allan H. Spear

President of the Senate

The Honorable Phil Carruthers

Speaker of the House of Representatives

We, the undersigned conferees for S. F. No. 41, report that we have agreed upon the items in dispute and recommend as follows:

That the House recede from its amendments and that S. F. No. 41 be further amended as follows:

Delete everything after the enacting clause and insert:

"Section 1. [CONSTITUTIONAL AMENDMENT PROPOSED.]

An amendment to the Minnesota Constitution, article XIII, by adding a section, is proposed to the people. If the amendment is adopted, the section will read as follows:

Sec. 12. Hunting and fishing and the taking of game and fish are a valued part of our heritage that shall be forever preserved for the people and shall be managed by law and regulation for the public good.

Sec. 2. [SUBMISSION TO VOTERS.]

The proposed amendment must be submitted to the people at the 1998 general election. The question submitted shall be:

"Shall the Minnesota Constitution be amended to affirm that hunting and fishing and the taking of game and fish are a valued part of our heritage that shall be forever preserved for the people and shall be managed by law and regulation for the public good?

Yes .......

No ........""

Delete the title and insert:

"A bill for an act proposing an amendment to the Minnesota Constitution, article XIII, by adding a section; affirming that hunting and fishing and the taking of game and fish are a valued part of our heritage."

We request adoption of this report and repassage of the bill.

Senate Conferees: Bob Lessard, Dallas C. Sams, Steven G. Novak, Pat Pariseau and Dan Stevens.

House Conferees: Bob Milbert, Mark Holsten, Robert Leighton, Betty McCollum and Wesley J. "Wes" Skoglund.

Milbert moved that the report of the Conference Committee on S. F. No. 41 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.

S. F. No. 41, A bill for an act proposing an amendment to the Minnesota Constitution, article 1, by adding a section; affirming the right of citizens to hunt or take game and fish.

The bill was read for the third time, as amended by Conference, and placed upon its repassage.

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The question was taken on the repassage of the bill and the roll was called. There were 124 yeas and 7 nays as follows:

Those who voted in the affirmative were:

Abrams Erhardt Kalis McCollum Peterson Sykora
Anderson, B. Erickson Kelso McElroy Pugh Tingelstad
Anderson, I. Evans Kielkucki McGuire Rest Tomassoni
Bakk Farrell Kinkel Milbert Reuter Tompkins
Bettermann Finseth Knight Molnau Rhodes Trimble
Bishop Folliard Knoblach Mulder Rifenberg Tuma
Boudreau Garcia Koskinen Mullery Rostberg Tunheim
Bradley Goodno Kraus Murphy Rukavina Van Dellen
Broecker Gunther Krinkie Ness Schumacher Vandeveer
Carlson Haas Kubly Nornes Seagren Wagenius
Chaudhary Harder Kuisle Olson, E. Seifert Weaver
Clark, J. Hasskamp Larsen Olson, M. Sekhon Wejcman
Commers Hilty Leighton Opatz Skare Wenzel
Daggett Holsten Leppik Orfield Skoglund Westfall
Davids Huntley Lieder Osskopp Slawik Westrom
Dawkins Jefferson Lindner Osthoff Smith Winter
Dehler Jennings Long Otremba, M. Solberg Wolf
Delmont Johnson, A. Macklin Ozment Stanek Workman
Dempsey Johnson, R. Mares Paulsen Stang Spk. Carruthers
Dorn Juhnke Mariani Pawlenty Sviggum
Entenza Kahn Marko Pelowski Swenson, H.

Those who voted in the negative were:

Biernat Greiling Hausman Jaros Mahon Munger
Paymar

The bill was repassed, as amended by Conference, and its title agreed to.

REPORT FROM THE COMMITTEE ON RULES AND

LEGISLATIVE ADMINISTRATION

Winter 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. Nos. 2346, 1006, 2498, 2082, 2712 and 1181.

SPECIAL ORDERS

S. F. No. 2346 was reported to the House.

Wejcman moved to amend S. F. No. 2346 as follows:

Pages 2 and 3, delete sections 2, 3, and 4

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Page 3, after line 28, insert:

"Minnesota Statutes 1996, section 418.20, is repealed."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

S. F. No. 2346, A bill for an act relating to local government; adding a position to a list for certain purposes; establishing and providing the powers and duties of the midtown planning and coordination board; removing an age ceiling for new firefighters in Minneapolis; amending Laws 1969, chapter 937, section 1, subdivision 9a, as amended; repealing Laws 1959, chapter 213.

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 125 yeas and 0 nays as follows:

Those who voted in the affirmative were:

Abrams Evans Juhnke McCollum Paymar Swenson, H.
Anderson, B. Farrell Kahn McElroy Pelowski Sykora
Anderson, I. Finseth Kalis McGuire Peterson Tingelstad
Bakk Folliard Kielkucki Milbert Pugh Tomassoni
Bettermann Garcia Kinkel Molnau Rest Tompkins
Biernat Goodno Knight Mulder Reuter Trimble
Boudreau Greenfield Knoblach Mullery Rhodes Tuma
Broecker Greiling Kraus Munger Rifenberg Tunheim
Carlson Gunther Krinkie Murphy Rostberg Van Dellen
Chaudhary Haas Kuisle Ness Rukavina Vandeveer
Clark, J. Harder Larsen Nornes Schumacher Wagenius
Clark, K. Hasskamp Leighton Olson, E. Seifert Weaver
Daggett Hausman Leppik Olson, M. Sekhon Wejcman
Davids Hilty Lieder Opatz Skare Wenzel
Dawkins Holsten Lindner Orfield Skoglund Westfall
Dehler Huntley Long Osskopp Slawik Westrom
Delmont Jaros Macklin Osthoff Smith Winter
Dorn Jefferson Mahon Otremba, M. Solberg Wolf
Entenza Jennings Mares Ozment Stanek Workman
Erhardt Johnson, A. Mariani Paulsen Stang Spk. Carruthers
Erickson Johnson, R. Marko Pawlenty Sviggum

The bill was passed, as amended, and its title agreed to.

S. F. No. 1006 was reported to the House.

McGuire moved that S. F. No. 1006 be continued on Special Orders. The motion prevailed.

S. F. No. 2498 was reported to the House.

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Bishop, Skoglund and Pugh moved to amend S. F. No. 2498 as follows:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1996, section 241.67, subdivision 8, is amended to read:

Subd. 8. [COMMUNITY-BASED SEX OFFENDER PROGRAM EVALUATION PROJECT.] (a) For the purposes of this project, a sex offender is an adult who has been convicted, or a juvenile who has been adjudicated, for a sex offense or a sex-related offense and has been sentenced to sex offender treatment as a condition of probation which would require registration under section 244.166.

(b) The commissioner shall develop a long-term project to accomplish the following:

(1) provide follow-up information on each sex offender for a period of three years following the offender's completion of or termination from treatment;

(2) provide treatment programs in several geographical areas in the state;

(3) provide the necessary data to form the basis to recommend a fiscally sound plan to provide a coordinated statewide system of effective sex offender treatment programming; and

(4) provide an opportunity to local and regional governments, agencies, and programs to establish models of sex offender programs that are suited to the needs of that region.

(c) The commissioner shall provide the legislature with an annual report of the data collected and the status of the project by October 15 of each year, beginning in 1993.

(d) The commissioner shall establish an advisory task force consisting of county probation officers from community corrections act counties and other counties, court services providers, and other interested officials. The commissioner shall consult with the task force concerning the establishment and operation of the project.

Sec. 2. Minnesota Statutes 1996, section 241.67, is amended by adding a subdivision to read:

Subd. 9. [INFORMATION ON SEX OFFENDER TREATMENT.] (a) All sex offender treatment facilities that provide treatment to sex offenders who begin treatment as a condition of probation shall provide the commissioner relevant information on the treatment of those offenders as the commissioner requests for the purpose of this evaluation. The information disclosed to the commissioner shall only be reported in aggregate and that information must not be used to designate additional sanctions for any individual offender.

(b) All county corrections agencies or court services officers shall provide the commissioner information as requested regarding juveniles and adults as defined in subdivision 8, paragraph (a) for the purpose of completing the requirements of subdivision 8.

Sec. 3. Minnesota Statutes 1996, section 244.052, subdivision 1, is amended to read:

Subdivision 1. [DEFINITIONS.] As used in this section:

(1) "accepted for supervision" means accepted from another state under a reciprocal agreement under the interstate compact authorized by section 243.16;

(2) "confinement" means confinement in a state correctional facility or a state treatment facility;

(3) (2) "law enforcement agency" means the law enforcement agency having primary jurisdiction over the location where the offender expects to reside upon release; and

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(4) (3) "sex offender" and "offender" mean a person who has been convicted of an offense for which registration under section 243.166 is required or a person who has been committed pursuant to a court commitment order under section 253B.185 or Minnesota Statutes 1992, section 526.10, regardless of whether the person was convicted of any offense.

Sec. 4. Minnesota Statutes 1997 Supplement, section 244.052, subdivision 3, is amended to read:

Subd. 3. [END-OF-CONFINEMENT REVIEW COMMITTEE.] (a) The commissioner of corrections shall establish and administer end-of-confinement review committees at each state correctional facility and at each state treatment facility where sex offenders are confined. The committees shall assess on a case-by-case basis:

(1) the public risk posed by sex offenders who are about to be released from confinement; and.

(2) the public risk posed by sex offenders who are accepted from another state under a reciprocal agreement under the interstate compact authorized by section 243.16.

(b) Each committee shall be a standing committee and shall consist of the following members appointed by the commissioner:

(1) the chief executive officer or head of the correctional or treatment facility where the offender is currently confined, or that person's designee;

(2) a law enforcement officer;

(3) a treatment professional who is trained in the assessment of sex offenders;

(4) a caseworker experienced in supervising sex offenders; and

(5) an employee of the department of corrections from the a victim's services unit professional.

Members of the committee, other than the facility's chief executive officer or head, shall be appointed by the commissioner to two-year terms. The chief executive officer or head of the facility or designee shall act as chair of the committee and shall use the facility's staff, as needed, to administer the committee, obtain necessary information from outside sources, and prepare risk assessment reports on offenders.

(c) The committee shall have access to the following data on a sex offender only for the purposes of its assessment and to defend the committee's risk assessment determination upon administrative review under this section:

(1) private medical data under section 13.42 or 144.335, or welfare data under section 13.46 that relate to medical treatment of the offender;

(2) private and confidential court services data under section 13.84;

(3) private and confidential corrections data under section 13.85; and

(4) private criminal history data under section 13.87.

Data collected and maintained by the committee under this paragraph may not be disclosed outside the committee, except as provided under section 13.05, subdivision 3 or 4. The sex offender has access to data on the offender collected and maintained by the committee, unless the data are confidential data received under this paragraph.

(d)(i) Except as otherwise provided in item (ii), at least 90 days before a sex offender is to be released from confinement or accepted for supervision, the commissioner of corrections shall convene the appropriate end-of-confinement review committee for the purpose of assessing the risk presented by the offender and determining the risk level to which the offender shall be assigned under paragraph (e). The offender and the law enforcement agency that was responsible for

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the charge resulting in confinement shall be notified of the time and place of the committee's meeting and. The offender has a right to be present and be heard at the meeting. The law enforcement agency may provide material in writing that is relevant to the offender's risk level to the chair of the committee. The committee shall use the risk factors described in paragraph (g) and the risk assessment scale developed under subdivision 2 to determine the offender's risk assessment score and risk level. Offenders scheduled for release from confinement shall be assessed by the committee established at the facility from which the offender is to be released. Offenders accepted for supervision shall be assessed by whichever committee the commissioner directs.

(ii) If an offender is received for confinement in a facility with less than 90 days remaining in the offender's term of confinement, the offender's risk shall be assessed at the first regularly scheduled end of confinement review committee that convenes after the appropriate documentation for the risk assessment is assembled by the committee. The commissioner shall make reasonable efforts to ensure that offender's risk is assessed and a risk level is assigned or reassigned at least 30 days before the offender's release date.

(e) The committee shall assign to risk level I a sex offender whose risk assessment score indicates a low risk of reoffense. The committee shall assign to risk level II an offender whose risk assessment score indicates a moderate risk of reoffense. The committee shall assign to risk level III an offender whose risk assessment score indicates a high risk of reoffense.

(f) Before the sex offender is released from confinement or accepted for supervision, the committee shall prepare a risk assessment report which specifies the risk level to which the offender has been assigned and the reasons underlying the committee's risk assessment decision. The committee shall give the report to the offender and to the law enforcement agency at least 60 days before an offender is released from confinement or accepted for supervision. If the risk assessment is performed under the circumstances described in paragraph (d), item (ii), the report shall be given to the offender and the law enforcement agency as soon as it is available. The committee also shall inform the offender of the availability of review under subdivision 6.

(g) As used in this subdivision, "risk factors" includes, but is not limited to, the following factors:

(1) the seriousness of the offense should the offender reoffend. This factor includes consideration of the following:

(i) the degree of likely force or harm;

(ii) the degree of likely physical contact; and

(iii) the age of the likely victim;

(2) the offender's prior offense history. This factor includes consideration of the following:

(i) the relationship of prior victims to the offender;

(ii) the number of prior offenses or victims;

(iii) the duration of the offender's prior offense history;

(iv) the length of time since the offender's last prior offense while the offender was at risk to commit offenses; and

(v) the offender's prior history of other antisocial acts;

(3) the offender's characteristics. This factor includes consideration of the following:

(i) the offender's response to prior treatment efforts; and

(ii) the offender's history of substance abuse;

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(4) the availability of community supports to the offender. This factor includes consideration of the following:

(i) the availability and likelihood that the offender will be involved in therapeutic treatment;

(ii) the availability of residential supports to the offender, such as a stable and supervised living arrangement in an appropriate location;

(iii) the offender's familial and social relationships, including the nature and length of these relationships and the level of support that the offender may receive from these persons; and

(iv) the offender's lack of education or employment stability;

(5) whether the offender has indicated or credible evidence in the record indicates that the offender will reoffend if released into the community; and

(6) whether the offender demonstrates a physical condition that minimizes the risk of reoffense, including but not limited to, advanced age or a debilitating illness or physical condition.

(h) Upon the request of the law enforcement agency or the offender's corrections agent, the commissioner may reconvene the end-of-confinement review committee for the purpose of reassessing the risk level to which an offender has been assigned under paragraph (e). In a request for a reassessment, the law enforcement agency which was responsible for the charge resulting in confinement or agent shall list the facts and circumstances arising after the initial assignment or facts and circumstances known to law enforcement or the agent but not considered by the committee under paragraph (e) which support the request for a reassessment. The request for reassessment must occur within 30 days of receipt of the report indicating the offender's risk level assignment. Upon review of the request, the end-of-confinement review committee may reassign an offender to a different risk level. If the offender is reassigned to a higher risk level, the offender has the right to seek review of the committee's determination under subdivision 6.

(i) An offender may request the end-of-confinement review committee to reassess the offender's assigned risk level after two years have elapsed since the committee's initial risk assessment and may renew the request once every two years following subsequent denials. In a request for reassessment, the offender shall list the facts and circumstances which demonstrate that the offender no longer poses the same degree of risk to the community. The committee shall follow the process outlined in paragraphs (a) to (e), and (g) in the reassessment.

(j) The commissioner shall establish an end-of-confinement review committee to assign a risk level to offenders who are released from a federal correctional facility in Minnesota or another state and who intend to reside in Minnesota, and to offenders accepted from another state under a reciprocal agreement for parole supervision under the interstate compact authorized by section 243.16. The committee shall make reasonable efforts to conform to the same timelines as applied to Minnesota cases. Offenders accepted from another state under a reciprocal agreement for probation supervision are not assigned a risk level, but are considered downward dispositional departures. The probation or court services officer and law enforcement officer shall manage such cases in accordance with section 244.10, subdivision 2a. The policies and procedures of the committee for federal offenders and interstate compact cases must be in accordance with all requirements as set forth in this section, unless restrictions caused by the nature of federal or interstate transfers prevents such conformance.

Sec. 5. Minnesota Statutes 1997 Supplement, section 244.052, subdivision 4, is amended to read:

Subd. 4. [LAW ENFORCEMENT AGENCY; DISCLOSURE OF INFORMATION TO PUBLIC.] (a) The law enforcement agency in the area where the sex offender resides, expects to reside, is employed, or is regularly found, shall disclose to the public any information regarding the offender contained in the report forwarded to the agency under subdivision 3, paragraph (f), if the agency determines that disclosure of the information is relevant and necessary to protect the public and to counteract the offender's dangerousness. The extent of the information disclosed and the community to whom disclosure is made must relate to the level of danger posed by the offender, to the offender's pattern of offending behavior, and to the need of community members for information to enhance their individual and collective safety.

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(b) The law enforcement agency shall consider the following guidelines in determining the scope of disclosure made under this subdivision:

(1) if the offender is assigned to risk level I, the agency may maintain information regarding the offender within the agency and may disclose it to other law enforcement agencies. Additionally, the agency may disclose the information to any victims of or witnesses to the offense committed by the offender. The agency shall disclose the information to victims of the offense committed by the offender who have requested disclosure;

(2) if the offender is assigned to risk level II, the agency also may disclose the information to agencies and groups that the offender is likely to encounter for the purpose of securing those institutions and protecting individuals in their care while they are on or near the premises of the institution. These agencies and groups include the staff members of public and private educational institutions, day care establishments, and establishments and organizations that primarily serve individuals likely to be victimized by the offender. The agency also may disclose the information to individuals the agency believes are likely to be victimized by the offender. The agency's belief shall be based on the offender's pattern of offending or victim preference as documented in the information provided by the department of corrections or human services;

(3) if the offender is assigned to risk level III, the agency also may disclose the information to other members of the community whom the offender is likely to encounter.

Notwithstanding the assignment of a sex offender to risk level II or III, a law enforcement agency may not make the disclosures permitted by clause (2) or (3), if: the offender is placed or resides in a residential facility that is licensed as a residential program, as defined in section 245A.02, subdivision 14, by the commissioner of human services under chapter 254A, or the commissioner of corrections under section 241.021; and the facility and its staff are trained in the supervision of sex offenders. However, if an offender is placed or resides in a licensed facility, the offender and the head of the facility shall designate the offender's likely residence upon release from the facility and the head of the facility shall notify the commissioner of corrections or the commissioner of human services of the offender's likely residence at least 14 days before the offender's scheduled release date. The commissioner shall give this information to the law enforcement agency having jurisdiction over the offender's likely residence. The head of the facility also shall notify the commissioner of corrections or human services within 48 hours after finalizing the offender's approved relocation plan to a permanent residence. Within five days after receiving this notification, the appropriate commissioner shall give to the appropriate law enforcement agency all relevant information the commissioner has concerning the offender, including information on the risk factors in the offender's history and the risk level to which the offender was assigned. After receiving this information, the law enforcement agency may make the disclosures permitted by clause (2) or (3), as appropriate.

(c) As used in paragraph (b), clauses (2) and (3), "likely to encounter" means that:

(1) the organizations or community members are in a location or in close proximity to a location where the offender lives or is employed, or which the offender visits or is likely to visit on a regular basis, other than the location of the offender's outpatient treatment program; and

(2) the types of interaction which ordinarily occur at that location and other circumstances indicate that contact with the offender is reasonably certain.

(d) A law enforcement agency or official who decides to disclose information under this subdivision shall make a good faith effort to make the notification at least 14 days before an offender is released from confinement or accepted for supervision within 14 days of receipt of a confirmed address from the department of corrections indicating that the offender will be, or has been, released from confinement, or accepted for supervision, or has moved to a new address and will reside at the address indicated. If a change occurs in the release plan, this notification provision does not require an extension of the release date.

(e) A law enforcement agency or official that decides to disclose information under this subdivision shall not disclose the identity of the victims of or witnesses to the offender's offenses.

(f) A law enforcement agency may continue to disclose information on an offender under this subdivision for as long as the offender is required to register under section 243.166.

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Sec. 6. Minnesota Statutes 1997 Supplement, section 244.052, subdivision 5, is amended to read:

Subd. 5. [RELEVANT INFORMATION PROVIDED TO LAW ENFORCEMENT.] At least 60 days before a sex offender is released from confinement or accepted for supervision, the department of corrections or the department of human services, in the case of a person who was committed under section 253B.185 or Minnesota Statutes 1992, section 526.10, shall give to the law enforcement agency that investigated the offender's crime of conviction or, where relevant, the law enforcement agency having primary jurisdiction where the offender was committed, all relevant information that the departments have concerning the offender, including information on risk factors in the offender's history. Within five days after receiving the offender's approved release plan from the office of adult release, the appropriate department shall give to the law enforcement agency having primary jurisdiction where the offender plans to reside all relevant information the department has concerning the offender, including information on risk factors in the offender's history and the risk level to which the offender was assigned. If the offender's risk level was assigned under the circumstances described in paragraph (d), item (ii), the appropriate department shall give the law enforcement agency all relevant information that the department has concerning the offender, including information on the risk factors in the offender's history and the offender's risk level within five days of the risk level assignment or reassignment.

Sec. 7. Minnesota Statutes 1996, section 611A.037, subdivision 2, is amended to read:

Subd. 2. [NOTICE TO VICTIM.] The officer conducting a presentence or predispositional investigation shall make reasonable and good faith efforts to contact assure that the victim of that crime and to provide that victim is provided with the following information by contacting the victim or assuring that another public or private agency has contacted the victim: (i) the charge or juvenile court petition to which the defendant has been convicted or pleaded guilty, or the juvenile respondent has admitted in court or has been found to have committed by the juvenile court, and of any plea agreement between the prosecution and the defense counsel; (ii) the victim's right to request restitution pursuant to section 611A.04; (iii) the time and place of the sentencing or juvenile court disposition and the victim's right to be present; and (iv) the victim's right to object in writing to the court, prior to the time of sentencing or juvenile court disposition, to the proposed sentence or juvenile dispositional alternative, or to the terms of the proposed plea agreement. To assist the victim in making a recommendation under clause (iv), the officer shall provide the victim with information about the court's options for sentencing and other dispositions. Failure of the officer to comply with this subdivision does not give any rights or grounds for postconviction or postjuvenile disposition relief to the defendant or juvenile court respondent, nor does it entitle a defendant or a juvenile court respondent to withdraw a plea of guilty.

Sec. 8. [STUDY OF CONFIDENTIALITY OF STATEMENTS MADE DURING SEX OFFENDER TREATMENT.]

The commissioners of corrections and human services shall include in the report they are required to submit under Laws 1998, chapter 367, article 3, section 16, a recommendation concerning whether and to what extent statements made by sex offenders during the course of sex offender treatment should be treated as confidential. As used in this section, "sex offender" means a person who is required to register under Minnesota Statutes, section 243.166, the sex offender registration act.

Sec. 9. [EFFECTIVE DATE.]

Sections 1 to 7 are effective the day following final enactment and apply to offenders released from confinement, sentenced, or accepted for supervision on or after that date, or who move to a new address on or after that date. Section 8 is effective July 1, 1998."

Delete the title and insert:

"A bill for an act relating to corrections; requiring sex offender treatment facilities to provide certain information regarding sex offenders; clarifying which law enforcement agency may request the end-of-confinement review committee to reassess the risk level to which an offender has been assigned; adjusting the time within which certain requirements of the community notification law must be met; providing certain immunity; eliminating duplicative efforts on notifying victims of certain information; requiring a study of the confidentiality of statements made by offenders in the course of sex offender treatment; amending Minnesota Statutes 1996, sections 241.67, subdivision 8, and by adding a subdivision; 244.052, subdivision 1; and 611A.037, subdivision 2; Minnesota Statutes 1997 Supplement, section 244.052, subdivisions 3, 4, and 5."

The motion prevailed and the amendment was adopted.

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S. F. No. 2498, A bill for an act relating to corrections; registration of sexual offenders; requiring certain offenders moving into Minnesota to register within five days; authorizing adult and juvenile offender registration information to be maintained together; expanding prosecutorial jurisdiction; amending Minnesota Statutes 1996, section 243.166, subdivisions 1 and 5; Minnesota Statutes 1997 Supplement, section 244.166, subdivision 4.

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 0 nays as follows:

Those who voted in the affirmative were:

Abrams Erickson Kahn Marko Paymar Sykora
Anderson, B. Evans Kalis McCollum Peterson Tingelstad
Anderson, I. Farrell Kelso McElroy Pugh Tomassoni
Bakk Finseth Kielkucki McGuire Rest Tompkins
Bettermann Folliard Kinkel Milbert Reuter Trimble
Biernat Garcia Knight Molnau Rhodes Tuma
Bishop Goodno Knoblach Mulder Rifenberg Tunheim
Boudreau Greenfield Koskinen Mullery Rostberg Van Dellen
Bradley Gunther Kraus Munger Rukavina Vandeveer
Broecker Haas Krinkie Murphy Schumacher Wagenius
Carlson Harder Kubly Ness Seagren Weaver
Chaudhary Hasskamp Kuisle Nornes Seifert Wejcman
Clark, J. Hausman Larsen Olson, E. Sekhon Wenzel
Commers Hilty Leighton Olson, M. Skare Westfall
Daggett Holsten Leppik Opatz Skoglund Westrom
Davids Huntley Lieder Orfield Slawik Winter
Dawkins Jaros Lindner Osskopp Smith Wolf
Dehler Jefferson Long Osthoff Solberg Workman
Delmont Jennings Macklin Otremba, M. Stanek Spk. Carruthers
Dempsey Johnson, A. Mahon Ozment Stang
Entenza Johnson, R. Mares Paulsen Sviggum
Erhardt Juhnke Mariani Pawlenty Swenson, H.

The bill was passed, as amended, and its title agreed to.

S. F. No. 2082 was reported to the House.

There being no objection, S. F. No. 2082 was temporarily laid over on Special Orders.

S. F. No. 2712 was reported to the House.

Osthoff moved that S. F. No. 2712 be temporarily laid over on Special Orders. The motion prevailed.

S. F. No. 1181 was reported to the House.

Kahn moved to amend S. F. No. 1181, the second unofficial engrossment, as follows:

Page 1, line 14, after the period, insert "The study must consider concerns expressed by some persons in the law enforcement community including the adequate visual identification of hemp plant species at various stages of plant development; the effects of deliberate or inadvertent cross-pollinization between species; and the use of industrial species hemp to visually screen illegally grown species."

Journal of the House - 109th Day - Thursday, April 9, 1998 - Top of Page 9726

Page 1, line 19, delete everything after the period

Page 1, delete line 20

Page 1, line 21, delete "projects."

The motion prevailed and the amendment was adopted.

S. F. No. 1181, A bill for an act relating to agriculture; providing for an industrial hemp study.

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 68 yeas and 64 nays as follows:

Those who voted in the affirmative were:

Anderson, I. Garcia Johnson, R. Mariani Ozment Trimble
Bakk Greenfield Juhnke McCollum Paymar Tunheim
Biernat Greiling Kahn McGuire Peterson Wagenius
Bishop Gunther Kalis Milbert Pugh Wejcman
Clark, K. Hasskamp Kinkel Mullery Rostberg Wenzel
Dawkins Hausman Koskinen Munger Rukavina Westfall
Dehler Hilty Krinkie Murphy Schumacher Winter
Delmont Huntley Kubly Olson, E. Sekhon Spk. Carruthers
Dorn Jaros Leighton Opatz Skare
Entenza Jefferson Lieder Orfield Skoglund
Evans Jennings Long Osskopp Solberg
Farrell Johnson, A. Mahon Otremba, M. Tomassoni

Those who voted in the negative were:

Abrams Dempsey Knight Molnau Rhodes Tingelstad
Anderson, B. Erhardt Knoblach Mulder Rifenberg Tompkins
Bettermann Erickson Kraus Ness Seagren Tuma
Boudreau Finseth Kuisle Nornes Seifert Van Dellen
Bradley Folliard Larsen Olson, M. Slawik Vandeveer
Broecker Goodno Leppik Osthoff Smith Weaver
Carlson Haas Lindner Paulsen Stanek Westrom
Clark, J. Harder Macklin Pawlenty Stang Wolf
Commers Holsten Mares Pelowski Sviggum Workman
Daggett Kelso Marko Rest Swenson, H.
Davids Kielkucki McElroy Reuter Sykora

The bill was passed, as amended, and its title agreed to.

CALL OF THE HOUSE

On the motion of Winter and on the demand of 10 members, a call of the House was ordered. The following members answered to their names:

Abrams Dorn Jennings Mares Ozment Stang
Anderson, B. Entenza Johnson, A. Mariani Paulsen Sviggum
Anderson, I. Erhardt Johnson, R. Marko Pelowski Swenson, H.
Bakk Erickson Juhnke McCollum Peterson Sykora
Bettermann Evans Kahn McElroy Pugh Tingelstad
Biernat Farrell Kelso McGuire Rest Tomassoni
Bishop Finseth Kielkucki Milbert Reuter Tompkins
Boudreau Folliard Knoblach Molnau Rhodes Trimble
Bradley Garcia Koskinen Mulder Rifenberg Tuma
Broecker Goodno Kraus Mullery Rostberg Tunheim
Carlson Greiling Kubly Munger Rukavina Van Dellen
Chaudhary Gunther Kuisle Ness Seagren Weaver
Clark, J. Haas Larsen Nornes Seifert Wejcman
Clark, K. Harder Leighton Olson, E. Sekhon Wenzel
Commers Hasskamp Leppik Olson, M. Skare Westfall
Daggett Hausman Lieder Opatz Skoglund Westrom
Davids Hilty Lindner Orfield Slawik Winter
Dehler Holsten Long Osskopp Smith Wolf
Journal of the House - 109th Day - Thursday, April 9, 1998 - Top of Page 9727
Delmont Huntley Macklin Osthoff Solberg Workman
Dempsey Jefferson Mahon Otremba, M. Stanek Spk. Carruthers

Winter moved that further proceedings of the roll call be suspended and that the Sergeant at Arms be instructed to bring in the absentees. The motion prevailed and it was so ordered.

The following Conference Committee Report was received:

CONFERENCE COMMITTEE REPORT ON H. F. NO. 2874

A bill for an act relating to education; kindergarten through grade 12; providing for general education; special education; interagency services and lifelong learning; facilities and organization; policies promoting academic excellence; education policy issues; libraries; state agencies; appropriating money; amending Minnesota Statutes 1996, sections 43A.17, subdivisions 9 and 10; 120.03, subdivision 1; 120.06, subdivision 2a; 120.064, subdivisions 5 and 11; 120.101, subdivisions 3 and 6; 120.17, subdivisions 1, 2, 3, 3a, 3b, 6, 7, 9, and 15; 120.1701, subdivisions 2, 5, 11, and 17; 120.173, subdivisions 1 and 6; 120.73, subdivision 1; 121.1115, by adding subdivisions; 121.908, subdivisions 2 and 3; 122.23, subdivision 6; 123.35, subdivision 19a; 123.39, subdivision 1, and by adding a subdivision; 123.935, subdivisions 1 and 2; 124.078; 124.14, subdivision 7, and by adding a subdivision; 124.17, subdivision 2, and by adding a subdivision; 124.248, subdivisions 1 and 1a; 124.2713, subdivision 6a; 124.273, by adding a subdivision; 124.32, by adding a subdivision; 124.323, by adding a subdivision; 124.646, subdivision 4; 124.755, subdivision 1; 124.95, subdivision 6; 124A.03, subdivisions 2b and 3c; 124A.034, subdivision 2; 124A.036, subdivisions 1a, 4, 6, and by adding a subdivision; 124A.22, by adding a subdivision; 124A.292, subdivision 3; 124A.30; 124C.45, subdivision 2; 124C.47; 124C.48, by adding a subdivision; 125.191; 126.12, subdivision 1; 126.237; 127.27, subdivisions 2 and 4; 256B.0625, subdivision 26; 260.015, subdivision 19; 260.132, subdivision 4; and 471.895, subdivision 1; Minnesota Statutes 1997 Supplement, sections 120.101, subdivision 5; 120.1701, subdivision 3; 120.181; 121.11, subdivision 7c; 121.1113, subdivision 1; 121.904, subdivision 4a; 124.17, subdivisions 1d, 6, and 7; 124.248, subdivisions 2a and 6; 124.2601, subdivisions 3 and 6; 124.2711, subdivision 2a; 124.2713, subdivision 6; 124.3111, subdivisions 2 and 3; 124.3201, subdivisions 1, 2, and 4; 124.6475; 124.648, subdivision 3; 124.91, subdivisions 1 and 5; 124.916, subdivision 2; 124A.036, subdivision 5; 124A.22, subdivisions 1 and 11; 124A.23, subdivision 1; 124A.28, subdivisions 1 and 1a; 124C.46, subdivisions 1 and 2; 126.79, subdivisions 3, 6, 7, 8, and 9; 127.27, subdivisions 10 and 11; 127.281; 127.31, subdivision 15; 127.32; 127.36, subdivision 1; and 127.38; Laws 1992, chapter 499, article 7, section 31; Laws 1997, First Special Session chapter 4, article 1, section 58; article 1, section 61, subdivision 3; article 2, section 51, subdivisions 2, 4, 5, and 29; article 3, section 23, by adding a subdivision; article 3, section 25, subdivisions 2 and 4; article 4, section 35, subdivision 9; article 5, section 24, subdivision 4; article 5, section 28, subdivisions 4, 9, and 12; article 6, section 20, subdivision 4; article 8, section 4, subdivision 3; article 9, section 11; article 9, section 12, subdivision 8; article 10, section 3, subdivision 2; article 10, section 4; and article 10, section 5; proposing coding for new law in Minnesota Statutes, chapters 120; 121; 124; 124A; and 126; repealing Minnesota Statutes 1996, sections
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124.2713, subdivision 6b; 124.647; 124A.292, subdivisions 2 and 4; 124A.697; 124A.698; 124A.70; 124A.71; 124A.711, subdivision 1; 124A.72; and 124A.73; Minnesota Statutes 1997 Supplement, sections 124.2601, subdivisions 4 and 5; 124.912, subdivisions 2 and 3; 124A.711, subdivision 2; and 135A.081; Laws 1993, chapter 146, article 5, section 20, as amended; Laws 1997, chapter 231, article 1, section 17; Minnesota Rules, part 3525.2750, subpart 1, item B.

April 9, 1998

The Honorable Phil Carruthers

Speaker of the House of Representatives

The Honorable Allan H. Spear

President of the Senate

We, the undersigned conferees for H. F. No. 2874, report that we have agreed upon the items in dispute and recommend as follows:

That the Senate recede from its amendment and that H. F. No. 2874 be further amended as follows:

Delete everything after the enacting clause and insert:

"ARTICLE 1

GENERAL EDUCATION

Section 1. Minnesota Statutes 1997 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 31 percent of the amount of the levy certified in the prior calendar year according to section 124A.03, subdivision 2; or

(3)(i) 7.0 percent of the lesser of the amount of the general education levy certified in the prior calendar year according to section 124A.23, subdivision 2, or the difference between the amount of the total general fund levy certified in the prior calendar year and the sum of the amounts certified in the prior calendar year according to sections 124A.03, subdivision 2; 124.315, subdivision 4; 124.912, subdivisions 1, paragraph (2), 2, and 3; 124.916, subdivisions 1, 2, and 3, paragraphs (4), (5), and (6); and 124.918, subdivision 6; plus

(ii) 31 percent of the referendum levy certified in the prior calendar year according to section 124A.03, subdivision 2; plus

(iii) the entire amount of the levy certified in the prior calendar year according to sections 124.315, subdivision 4; 124.912, subdivisions 1, paragraph (2), 2, and 3; 124.916, subdivisions 1, 2, and 3, paragraphs (4), (5), and (6); and 124.918, subdivision 6.

(i) 31 percent of the referendum levy certified in the prior calendar year according to section 124A.03, subdivision 2; plus

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(ii) the entire amount of the levy certified in the prior calendar year according to sections 124.912, subdivisions 1, paragraph (2), 2, and 3; 124.315, subdivision 4; 124.916, subdivisions 1, 2, and 3, paragraphs (4), (5), and (6); and 124.918, subdivision 6.

(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 1996, section 121.908, subdivision 2, is amended to read:

Subd. 2. Each district shall submit to the commissioner by August September 15 of each year an unaudited financial statement data for the preceding fiscal year. This statement These financial data shall be submitted on forms in the format prescribed by the commissioner.

Sec. 3. Minnesota Statutes 1996, section 121.908, subdivision 3, is amended to read:

Subd. 3. By December 31 November 30 of the calendar year of the submission of the unaudited financial statement data, the district shall provide to the commissioner and state auditor an audited financial data for the preceding fiscal year. An audited financial statement prepared in a form which will allow comparison with and correction of material differences in the unaudited statement financial data shall be submitted to the commissioner and the state auditor by December 31. The audited financial statement must also provide a statement of assurance pertaining to uniform financial accounting and reporting standards compliance and a copy of the management letter submitted to the district by the school district's auditor.

Sec. 4. Minnesota Statutes 1996, section 124.14, subdivision 7, is amended to read:

Subd. 7. [APPROPRIATION TRANSFERS.] If a direct appropriation from the general fund to the department of children, families, and learning for any education aid or grant authorized in this chapter and chapters 121, 123, 124A, 124C, 125, 126, and 134, excluding appropriations under sections 124.26, 124.2601, 124.2605, 124.261, 124.2615, 124.2711, 124.2712, 124.2713, 124.2714, 124.2715, and 124.2716, exceeds the amount required, the commissioner of children, families, and learning may transfer the excess to any education aid or grant appropriation that is insufficient. However, section 124A.032 applies to a deficiency in the direct appropriation for general education aid. Excess appropriations shall be allocated proportionately among aids or grants that have insufficient appropriations. The commissioner of finance shall make the necessary transfers among appropriations according to the determinations of the commissioner of children, families, and learning. If the amount of the direct appropriation for the aid or grant plus the amount transferred according to this subdivision is insufficient, the commissioner shall prorate the available amount among eligible districts. The state is not obligated for any additional amounts.

Sec. 5. Minnesota Statutes 1996, section 124.14, is amended by adding a subdivision to read:

Subd. 7a. [APPROPRIATION TRANSFERS FOR COMMUNITY EDUCATION PROGRAMS.] If a direct appropriation from the general fund to the department of children, families, and learning for an education aid or grant authorized under section 124.26, 124.2601, 124.2605, 124.261, 124.2615, 124.2711, 124.2712, 124.2713, 124.2714, 124.2715, or 124.2716 exceeds the amount required, the commissioner of children, families, and learning may transfer the excess to any education aid or grant appropriation that is insufficiently funded under these sections. Excess appropriations shall be allocated proportionately among aids or grants that have insufficient appropriations. The commissioner of finance shall make the necessary transfers among appropriations according to the determinations of the commissioner of children, families, and learning. If the amount of the direct appropriation for the aid or grant plus the amount transferred according to this subdivision is insufficient, the commissioner shall prorate the available amount among eligible districts. The state is not obligated for any additional amounts.

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Sec. 6. Minnesota Statutes 1997 Supplement, section 124.17, subdivision 4, is amended to read:

Subd. 4. [LEARNING YEAR PUPIL UNITS.] (a) When a pupil is enrolled in a learning year program under section 121.585, an area learning center under sections 124C.45 and 124C.46, or an alternative program approved by the commissioner, or a contract alternative program under section 126.22, subdivision 3, paragraph (d), or subdivision 3a, for more than 1,020 hours in a school year for a secondary student, more than 935 hours in a school year for an elementary student, or more than 425 hours in a school year for a kindergarten student without a disability, that pupil may be counted as more than one pupil in average daily membership. 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: (i) the greater of 1,020 hours or the number of hours required for a full-time secondary pupil in the district to 1,020 for a secondary pupil; (ii) the greater of 935 hours or the number of hours required for a full-time elementary pupil in the district to 935 for an elementary pupil in grades 1 through 6; and (iii) the greater of 425 hours or the number of hours required for a full-time kindergarten student without a disability in the district to 425 for a kindergarten student without a disability. Hours that occur after the close of the instructional year in June shall be attributable to the following fiscal year. A kindergarten student must not be counted as more than 1.2 pupils in average daily membership under this subdivision.

(b)(i) To receive general education revenue for a pupil in an alternative program that has an independent study component, a school district must meet the requirements in this paragraph. The school district must develop with the pupil a continual learning plan for the pupil. A district must allow a minor pupil's parent or guardian to participate in developing the plan, if the parent or guardian wants to participate. The plan must identify the learning experiences and expected outcomes needed for satisfactory credit for the year and for graduation. The plan must be updated each year. Each school district that has a state-approved public alternative program must reserve revenue in an amount equal to at least 90 percent of the district average general education revenue per pupil unit less compensatory revenue per pupil unit times the number of pupil units generated by students attending a state-approved public alternative program. The amount of reserved revenue available under this subdivision may only be spent for program costs associated with the state-approved public alternative program. Compensatory revenue must be allocated according to section 124A.28, subdivision 1a.

(ii) General education revenue for a pupil in an approved alternative program without an independent study component must be prorated for a pupil participating for less than a full year, or its equivalent. Each school district that has a state-approved public alternative program must reserve revenue in an amount equal to at least 90 percent of the district average general education revenue per pupil unit less compensatory revenue per pupil unit times the number of pupil units generated by students attending a state-approved public alternative program. The amount of reserved revenue available under this subdivision may only be spent for program costs associated with the state-approved public alternative program. Compensatory revenue must be allocated according to section 124A.28, subdivision 1a.

(iii) General education revenue for a pupil in an approved alternative program that has an independent study component must be paid for each hour of teacher contact time and each hour of independent study time completed toward a credit or graduation standards necessary for graduation. Average daily membership for a pupil shall equal the number of hours of teacher contact time and independent study time divided by 1,020.

(iv) For an alternative program having an independent study component, the commissioner shall require a description of the courses in the program, the kinds of independent study involved, the expected learning outcomes of the courses, and the means of measuring student performance against the expected outcomes.

Sec. 7. Minnesota Statutes 1997 Supplement, section 124.17, subdivision 6, is amended to read:

Subd. 6. [FREE AND REDUCED PRICED LUNCHES.] The commissioner shall determine the number of children eligible to receive either a free or reduced priced lunch on October 1 each year. Children enrolled in a building on October 1 and determined to be eligible to receive free or reduced price lunch by January 15 of the following year shall be counted as eligible on October 1 for purposes of subdivision 1d. The commissioner may use federal definitions for these purposes and may adjust these definitions as appropriate. The commissioner may adopt reporting guidelines to assure accuracy of data counts and eligibility. Districts shall use any guidelines adopted by the commissioner.

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Sec. 8. Minnesota Statutes 1997 Supplement, section 124.17, subdivision 7, is amended to read:

Subd. 7. [LEP PUPIL UNITS.] (a) Limited English proficiency pupil units for fiscal year 1998 and thereafter shall be determined according to this subdivision.

(b) The limited English proficiency concentration percentage for a district equals the product of 100 times the ratio of:

(1) the number of pupils of limited English proficiency enrolled in the district during the current fiscal year; to

(2) the number of pupils in average daily membership enrolled in the district.

(c) The limited English proficiency pupil units for each pupil enrolled in a program for pupils of limited English proficiency in accordance with sections 126.261 to 126.269 equals the lesser of one or the quotient obtained by dividing the limited English proficiency concentration percentage for the pupil's district of enrollment by 11.5.

(d) Limited English proficiency pupil units shall be counted by the district of enrollment.

(e) Notwithstanding paragraph (d), for the purposes of this subdivision, pupils enrolled in a cooperative or intermediate school district shall be counted by the district of residence.

Sec. 9. Minnesota Statutes 1997 Supplement, section 124.195, subdivision 7, is amended to read:

Subd. 7. [PAYMENTS TO SCHOOL NONOPERATING FUNDS.] Each fiscal year state general fund payments for a district nonoperating fund shall be made at 90 percent of the estimated entitlement during the fiscal year of the entitlement. This amount shall be paid in 12 equal monthly installments. The amount of the actual entitlement, after adjustment for actual data, minus the payments made during the fiscal year of the entitlement shall be paid prior to October 31 of the following school year. The commissioner may make advance payments of debt service equalization aid or homestead and agricultural credit aid for a district's debt service fund earlier than would occur under the preceding schedule if the district submits evidence showing a serious cash flow problem in the fund. The commissioner may make earlier payments during the year and, if necessary, increase the percent of the entitlement paid to reduce the cash flow problem.

Sec. 10. Minnesota Statutes 1996, 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 an amount equal to the product of the formula allowance according to section 124A.22, subdivision 2, times .0485, calculated without compensatory basic skills revenue, transportation sparsity revenue, and the transportation portion of the transition revenue adjustment, plus compensatory basic skills revenue as though the school were a school district.

Sec. 11. Minnesota Statutes 1996, 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, according to this subdivision. Transportation aid shall equal transportation revenue.

(a) In addition to the revenue under subdivision 1, a charter school providing transportation services shall receive general education aid for each pupil unit equal to the sum of $170 an amount equal to the product of the formula allowance according to section 124A.22, subdivision 2, times .0485, 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 special programs transportation revenue equals the charter school's actual cost in the current school year for transportation services 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 special programs transportation revenue shall be computed according to section 124.225, subdivision 14.

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Sec. 12. Minnesota Statutes 1997 Supplement, section 124.248, subdivision 2a, is amended to read:

Subd. 2a. [BUILDING LEASE AID.] When a charter school finds it economically advantageous to rent or lease a building or land for any instructional purposes and it determines that the total operating capital revenue under section 124A.22, subdivision 10, is insufficient for this purpose, it may apply to the commissioner for building lease aid for this purpose. Criteria for aid approval and revenue uses shall be as defined for the building lease levy in section 124.91, subdivision 1, paragraphs (a) and (b). The amount of building lease aid per pupil unit served for a charter school for any year shall not exceed the lesser of (a) 80 percent of the approved cost or (b) the product of the actual pupil units served for the current school year times the sum of the state average debt redemption fund revenue plus capital revenue, according to section 124.91, per actual pupil unit served for the current fiscal year.

Sec. 13. Minnesota Statutes 1997 Supplement, section 124.248, subdivision 6, is amended to read:

Subd. 6. [START-UP COSTS.] During the first two years of a charter school's operation, the charter school is eligible for aid to pay for start-up costs and additional operating costs. Start-up cost aid equals the greater of:

(1) $50,000 per charter school; or

(2) $500 times the charter school's pupil units served for that year.

Sec. 14. Minnesota Statutes 1997 Supplement, section 124.2601, subdivision 3, is amended to read:

Subd. 3. [REVENUE AID.] Adult basic education revenue aid for each approved program equals 65 percent of the general education formula allowance times the number of full-time equivalent students in its adult basic education program.

Sec. 15. Minnesota Statutes 1997 Supplement, section 124.2601, subdivision 6, is amended to read:

Subd. 6. [AID GUARANTEE.] (a) For fiscal year 1994, any adult basic education program that receives less state aid under subdivisions 3 and 7 than from the aid formula for fiscal year 1992 shall receive the amount of aid it received in fiscal year 1992.

(b) For 1995, 1996, and 1997 fiscal years, an adult basic education program that receives aid shall receive at least the amount of aid it received in fiscal year 1992 under subdivisions 3 and 7, plus aid equal to the amount of revenue that would have been raised for taxes payable in 1994 under Minnesota Statutes 1992, section 124.2601, subdivision 4, minus the amount raised under subdivision 4.

(c) For fiscal year 1998, any adult basic education program that receives less state aid than in fiscal year 1997 shall receive additional aid equal to 80 percent of the difference between its 1997 aid and the amount of aid under Minnesota Statutes 1997 Supplement, section 124.2601, subdivision 5. For fiscal year 1999 and later, additional aid under this paragraph must be reduced by 20 percent each year equals 80 percent of the additional aid computed for fiscal year 1998. For fiscal year 2000, the additional aid under this paragraph equals 60 percent of the additional aid computed for fiscal year 1998. For fiscal year 2001, the additional aid under this paragraph equals 40 percent of the additional aid computed for fiscal year 1998. For fiscal year 2002, the additional aid under this paragraph equals 20 percent of the additional aid computed for fiscal year 1998. For fiscal year 2003 and later, the additional aid under this paragraph equals zero.

Sec. 16. Minnesota Statutes 1997 Supplement, section 124.2711, subdivision 2a, is amended to read:

Subd. 2a. [EARLY CHILDHOOD FAMILY EDUCATION LEVY.] To obtain early childhood family education revenue, a district may levy an amount equal to the tax rate of .653 .45 percent times the adjusted tax capacity of the district for the year preceding the year the levy is certified. If the amount of the early childhood family education levy would exceed the early childhood family education revenue, the early childhood family education levy shall equal the early childhood family education revenue.

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Sec. 17. Minnesota Statutes 1997 Supplement, section 124.2713, subdivision 6, is amended to read:

Subd. 6. [COMMUNITY EDUCATION LEVY.] To obtain community education revenue, a district may levy the amount raised by a tax rate of 1.09 .41 percent times the adjusted net tax capacity of the district. If the amount of the community education levy would exceed the community education revenue, the community education levy shall be determined according to subdivision 6a.

Sec. 18. Minnesota Statutes 1996, section 124.2713, subdivision 6a, is amended to read:

Subd. 6a. [COMMUNITY EDUCATION LEVY; DISTRICTS OFF THE FORMULA.] If the amount of the community education levy for a district exceeds the district's community education revenue, the amount of the community education levy is limited to the sum of:

(1) the district's community education revenue according to subdivision 1; plus.

(2) the amount of the aid reduction for the same fiscal year according to subdivision 6b.

For purposes of statutory cross-reference, a levy made according to this subdivision is the levy made according to subdivision 6.

Sec. 19. Minnesota Statutes 1996, section 124.2727, subdivision 6a, is amended to read:

Subd. 6a. [FISCAL YEAR 1999 DISTRICT COOPERATION REVENUE.] A district's cooperation revenue for fiscal year 1999 is equal to the greater of $67 times the actual pupil units or $25,000.

Sec. 20. Minnesota Statutes 1996, section 124.2727, subdivision 6c, is amended to read:

Subd. 6c. [FISCAL YEAR 1999 DISTRICT COOPERATION AID.] A district's cooperation aid for fiscal year 1999 is the difference between its district cooperation revenue and its district cooperation levy. If a district does not levy the entire amount permitted, aid must be reduced in proportion to the actual amount levied.

Sec. 21. Minnesota Statutes 1996, section 124.273, is amended by adding a subdivision to read:

Subd. 8. [ALLOCATIONS FROM COOPERATIVE UNITS.] For the purposes of this section and section 124.321, pupils of limited English proficiency enrolled in a cooperative or intermediate school district unit shall be counted by the school district of residence, and the cooperative unit shall allocate its approved expenditures for limited English proficiency programs among participating school districts. Limited English proficiency aid for services provided by a cooperative or intermediate school district shall be paid to the participating school districts.

Sec. 22. Minnesota Statutes 1996, section 124.3201, subdivision 5, is amended to read:

Subd. 5. [SCHOOL DISTRICT SPECIAL EDUCATION REVENUE.] (a) A school district's special education revenue for fiscal year 1996 and later equals the state total special education revenue, minus the amount determined under paragraph (b), times the ratio of the district's adjusted special education base revenue to the state total adjusted special education base revenue. If the state board of education modifies its rules for special education in a manner that increases a school district's special education obligations or service requirements, the commissioner of children, families, and learning shall annually increase each district's special education revenue by the amount necessary to compensate for the increased service requirements. The additional revenue equals the cost in the current year attributable to rule changes not reflected in the computation of special education base revenue, multiplied by the appropriate percentages from subdivision 2.

(b) Notwithstanding paragraph (a), if the special education base revenue for a district equals zero, the special education revenue equals the amount computed according to subdivision 2 using current year data.

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(c) Notwithstanding paragraphs (a) and (b), if the special education base revenue for a district is greater than zero, and the base year amount for the district under subdivision 2, paragraph (a), clause (7), equals zero, the special education revenue equals the sum of the amount computed according to paragraph (a), plus the amount computed according to subdivision 2, paragraph (a), clause (7), using current year data.

Sec. 23. Minnesota Statutes 1996, section 124.85, subdivision 4, is amended to read:

Subd. 4. [DISTRICT ACTION.] A district may enter into a guaranteed energy savings contract with a qualified provider if, after review of the report and the commissioner's evaluation if requested, the board finds that the amount it would spend on the energy conservation measures recommended in the report is not likely to exceed the amount to be saved in energy and operation costs over 15 years from the date of installation if the recommendations in the report were followed, and the qualified provider provides a written guarantee that the energy or operating cost savings will meet or exceed the costs of the system. The guaranteed energy savings contract may provide for payments over a period of time, not to exceed 15 years. Notwithstanding section 121.912, a district annually may transfer from the general fund to the capital expenditure fund reserve for operating capital account an amount up to the amount saved in energy and operation costs as a result of guaranteed energy savings contracts.

Sec. 24. Minnesota Statutes 1996, 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 will conduct a bond election under chapter 475 on that same day; and (2) the proceeds of the referendum will provide only additional operating revenue necessitated by the facility complementing the purpose for which bonding authority is sought. The commissioner may only grant authority under this paragraph if the district demonstrates to the commissioner's satisfaction that the district's ability to operate the new facility or achieve efficiencies with the purchases connected to the proceeds of the bond sale will be significantly affected if the operating referendum is not conducted until the November general election. Authority under this paragraph expires November 30, 1998.

(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. 25. Minnesota Statutes 1996, section 124A.03, subdivision 3c, is amended 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.

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(e) When referendum authority approved before June 1, 1996, expires, the referendum allowance reduction for a district shall be decreased by the amount of the decrease in the district's total referendum allowance under subdivision 1c. For districts with more than one referendum authority remaining after the expiration, the amount of any remaining allowance reduction shall be reallocated among the remaining referendum authority approved before June 1, 1996, according to paragraph (d).

(f) 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. 26. Minnesota Statutes 1997 Supplement, section 124A.036, subdivision 5, is amended to read:

Subd. 5. [ALTERNATIVE ATTENDANCE PROGRAMS.] The general education aid for districts must be adjusted for each pupil attending a nonresident district under sections 120.062, 120.075, 120.0751, 120.0752, 124C.45 to 124C.48, and 126.22. The adjustments must be made according to this subdivision.

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

(b) General education aid paid to a district serving a pupil in programs listed in this subdivision shall be increased by an amount equal to the general education revenue exclusive of compensatory basic skills revenue attributable to the pupil in the nonresident district.

(c) 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.

(d) The district of residence shall pay tuition to a district or an area learning center, operated according to paragraph (e), providing special instruction and services to a pupil with a disability, as defined in section 120.03, or a pupil, as defined in section 120.181, who is enrolled in a program listed in this subdivision. The tuition shall be equal to (1) the actual cost of providing special instruction and services to the pupil, including a proportionate amount for debt service and for capital expenditure facilities and equipment, and debt service but not including any amount for transportation, minus (2) the amount of general education aid and special education aid, attributable to that pupil, that is received by the district providing special instruction and services.

(e) An area learning center operated by a service cooperative, intermediate district, education district, or a joint powers cooperative may elect through the action of the constituent boards to charge tuition for pupils rather than to calculate general education aid adjustments under paragraph (a), (b), or (c). The tuition must be equal to the greater of the average general education revenue per pupil unit attributable to the pupil, or the actual cost of providing the instruction, excluding transportation costs, if the pupil meets the requirements of section 120.03 or 120.181.

Sec. 27. Minnesota Statutes 1996, section 124A.036, subdivision 6, is amended 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 basic skills 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 an amount equal to the product of the formula allowance according to section 124A.22, subdivision 2, times .0485, 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.

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(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. 28. Minnesota Statutes 1997 Supplement, section 124A.22, subdivision 1, is amended to read:

Subdivision 1. [GENERAL EDUCATION REVENUE.] (a) For fiscal years 1997 and 1998, the general education revenue for each district equals the sum of the district's basic revenue, compensatory education revenue, secondary sparsity revenue, elementary sparsity revenue, transportation sparsity revenue, total operating capital revenue, transition revenue, and supplemental revenue.

(b) For fiscal year 1999 and thereafter, the general education revenue for each district equals the sum of the district's basic revenue, basic skills revenue, training and experience revenue, secondary sparsity revenue, elementary sparsity revenue, transportation sparsity revenue, total operating capital revenue, graduation standards implementation revenue, transition revenue, and supplemental revenue.

Sec. 29. Minnesota Statutes 1997 Supplement, section 124A.22, subdivision 2, is amended to read:

Subd. 2. [BASIC REVENUE.] The basic revenue for each district equals the formula allowance times the actual pupil units for the school year. The formula allowance for fiscal year 1997 is $3,505. The formula allowance for fiscal year 1998 is $3,581 and the formula allowance for fiscal year 1999 and subsequent fiscal years is $3,530. The formula allowance for fiscal year 2000 and subsequent fiscal years is $3,597.

Sec. 30. Minnesota Statutes 1997 Supplement, section 124A.22, subdivision 13b, is amended to read:

Subd. 13b. [TRANSITION ALLOWANCE.] (a) A district's transportation transition allowance for fiscal year 1998 and later 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 and later is greater than or equal to the fiscal year 1996 base allowance, the transportation transition allowance equals zero.

(b) 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:

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

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

(c) A district's transition compensatory transition allowance equals the greater of zero or the difference between:

(1) the amount of compensatory revenue the district would have received under subdivision 3 for fiscal year 1998 computed using a basic formula allowance of $3,281; and

(2) the amount the district receives under subdivision 3; divided by

(3) the district's actual pupil units for fiscal year 1998.

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(c) A district's cooperation transition allowance for fiscal year 2000 and later equals the greater of zero or the difference between:

(1) $25,000; and

(2) $67 times the district's actual pupil units for fiscal year 2000.

(d) A district's transition allowance for fiscal year 1998 is equal to the sum of its transportation transition allowance, its training and experience transition allowance, and its transition compensatory allowance. A district's transition allowance for fiscal year 1999 and thereafter is equal to the sum of its transportation transition allowance and its transition compensatory transition allowance. A district's transition allowance for fiscal year 2000 and thereafter is equal to the sum of its transportation transition allowance, its compensatory transition allowance, and its cooperation transition allowance.

Sec. 31. Minnesota Statutes 1996, section 124A.22, is amended by adding a subdivision to read:

Subd. 14. [GRADUATION STANDARDS IMPLEMENTATION REVENUE.] (a) A school district's graduation standards implementation revenue is equal to $52 times its actual pupil units for fiscal year 1999 plus $14 times its actual pupil units for fiscal year 1999 if the district implements the graduation rule under section 121.1114, paragraph (b), and $43 per pupil unit for all districts for fiscal year 2000 and later. Graduation standards implementation revenue is reserved and must be used according to paragraphs (b) and (c).

(b) For fiscal year 1999, revenue must be reserved for programs according to clauses (1) to (3).

(1) At least $20 per actual pupil unit plus $14 per actual pupil unit for a district that implements the graduation rule under section 121.1114, paragraph (b), must be allocated to school sites in proportion to the number of students enrolled at each school site weighted according to section 124.17, subdivision 1, and is reserved for programs designed to enhance the implementation of the graduation rule through intensive staff development and decentralized decision making.

(2) At least $5 per actual pupil unit is reserved for gifted and talented programs that are integrated with the graduation rule. This aid must supplement, not supplant, money spent on gifted and talented programs authorized under Laws 1997, First Special Session chapter 4, article 5, section 24.

(3) Remaining aid under this paragraph must be used:

(i) for technology purposes including wiring, network connections, and other technology-related infrastructure improvements; purchase or lease of computer software and hardware to be used in classrooms and for instructional purposes; purchase or lease of interactive television network equipment and network support; purchase or lease of computer software and hardware designed to support special needs programming and limited English proficiency programming; network and technical support; and purchase of textbooks and other instructional materials; or

(ii) to reduce class size.

(c) For fiscal year 2000 and later, revenue must be allocated to school sites and reserved for programs designed to enhance the implementation of the graduation rule through: (1) staff development programs; (2) technology purposes under paragraph (b), clause (3); (3) gifted and talented programs; or (4) class size reduction programs based at the school site.

(d) To the extent possible, school districts shall make opportunities for graduation standards implementation available to teachers employed by intermediate school districts. If the commissioner determines that the supplemental appropriation made for this subdivision under section 40, subdivision 2, is in excess of the amount needed for this subdivision, the commissioner shall make equal payments of one-third of the excess to each intermediate school district for the purpose of paragraph (a).

(e) A district that qualifies for the referendum allowance reduction under section 124A.03, subdivision 3c, shall receive a graduation standards implementation equity adjustment. In fiscal year 1999, the equity adjustment aid is equal to $29 per actual pupil unit. In fiscal year 2001 and thereafter, the equity adjustment is equal to $20 per actual pupil unit.

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Sec. 32. [124A.226] [RESERVED REVENUE FOR DISTRICT COOPERATION.]

A district that was a member of an intermediate school district organized pursuant to chapter 136D on July 1, 1996, must place a portion of its general education revenue in a reserved account for instructional services from entities formed for cooperative services for special education programs and secondary vocational programs. The amount reserved is equal to the levy made according to Minnesota Statutes 1993, section 124.2727, subdivision 6, for taxes payable in 1994 divided by the actual pupil units in the intermediate school district for fiscal year 1995 times the number of actual pupil units in the school district in 1995. The district must use 5/11 of the revenue for special education and 6/11 of the revenue for secondary vocational education. The district must demonstrate that the revenue is being used to provide the full range of special education and secondary vocational programs and services available to each child served by the intermediate. The secondary vocational programs and services must meet the requirements established in an articulation agreement developed between the state board of education and the board of trustees of the Minnesota state colleges and universities.

A district that was a member of an education district organized pursuant to section 122.91 on July 1, 1999, must place a portion of its general education revenue in a reserve account for instructional services from entities formed for cooperative services. Services may include secondary vocational programs, special education programs, staff development, and gifted and talented instruction. The amount reserved is equal to $50 per pupil unit times the actual number of pupil units in the district.

Sec. 33. Minnesota Statutes 1997 Supplement, section 124A.23, subdivision 1, is amended to read:

Subdivision 1. [GENERAL EDUCATION TAX RATE.] The commissioner shall establish the general education tax rate by July 1 of each year for levies payable in the following year. The general education tax capacity rate shall be a rate, rounded up to the nearest hundredth of a percent, that, when applied to the adjusted net tax capacity for all districts, raises the amount specified in this subdivision. The general education tax rate shall be the rate that raises $1,359,000,000 for fiscal year 1998 and $1,385,500,000 for fiscal year 1999 and, $1,384,900,000 for fiscal year 2000, and $1,387,100,000 for fiscal year 2001, and later fiscal years. The general education tax rate may not be changed due to changes or corrections made to a district's adjusted net tax capacity after the tax rate has been established. If the levy target for fiscal year 1999 or fiscal year 2000 is changed by another law enacted during the 1997 or 1998 session, the commissioner shall reduce the general education levy target in this bill section by the amount of the reduction in the enacted law.

Sec. 34. Minnesota Statutes 1997 Supplement, section 124A.28, subdivision 1, is amended to read:

Subdivision 1. [USE OF THE REVENUE.] The compensatory education revenue under section 124A.22, subdivision 3, and the portion of the transition revenue adjustment under section 124A.22, subdivision 13c, attributable to the compensatory transition allowance under section 124A.22, subdivision 13b, paragraph (b), must be used to meet the educational needs of pupils who enroll under-prepared to learn and whose progress toward meeting state or local content or performance standards is below the level that is appropriate for learners of their age. Any of the following may be provided to meet these learners' needs:

(1) direct instructional services under the assurance of mastery program according to section 124.3111;

(2) remedial instruction in reading, language arts, mathematics, other content areas, or study skills to improve the achievement level of these learners;

(3) additional teachers and teacher aides to provide more individualized instruction to these learners through individual tutoring, lower instructor-to-learner ratios, or team teaching;

(4) a longer school day or week during the regular school year or through a summer program that may be offered directly by the site or under a performance-based contract with a community-based organization;

(5) comprehensive and ongoing staff development consistent with district and site plans according to section 126.70, for teachers, teacher aides, principals, and other personnel to improve their ability to identify the needs of these learners and provide appropriate remediation, intervention, accommodations, or modifications;

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(6) instructional materials and technology appropriate for meeting the individual needs of these learners;

(7) programs to reduce truancy, encourage completion of high school, enhance self-concept, provide health services, provide nutrition services, provide a safe and secure learning environment, provide coordination for pupils receiving services from other governmental agencies, provide psychological services to determine the level of social, emotional, cognitive, and intellectual development, and provide counseling services, guidance services, and social work services;

(8) bilingual programs, bicultural programs, and programs for learners of limited English proficiency;

(9) all day kindergarten;

(10) extended school day and extended school year programs;

(11) substantial parent involvement in developing and implementing remedial education or intervention plans for a learner, including learning contracts between the school, the learner, and the parent that establish achievement goals and responsibilities of the learner and the learner's parent or guardian; and

(12) other methods to increase achievement, as needed.

Sec. 35. Minnesota Statutes 1997 Supplement, section 124A.28, subdivision 1a, is amended to read:

Subd. 1a. [BUILDING ALLOCATION.] (a) For fiscal years 1999 and 2000, upon approval by the commissioner, a district must allocate at least the difference between its compensatory revenue for that year and 95 percent of the amount of compensatory revenue that the district would have received under section 124A.22, subdivision 3, for fiscal year 1998 computed using a basic formula allowance of $3,281 to each school building in the district where the children who have generated the revenue are served.

(b) A district may allocate compensatory revenue not otherwise allocated under paragraph (a) to school sites accordingly to a plan adopted by the school board.

(c) For the purposes of this section and section 124.17, subdivision 1d, "building" means education site as defined in section 123.951, subdivision 1.

(d) If the pupil is served at a site other than one owned and operated by the district, the revenue shall be paid to the district and used for services for pupils who generate the revenue.

Sec. 36. Minnesota Statutes 1996, section 124A.29, subdivision 1, is amended to read:

Subdivision 1. [STAFF DEVELOPMENT AND PARENTAL INVOLVEMENT REVENUE.] A district is encouraged required to reserve general education revenue an amount equal to at least one percent of the basic formula allowance for in-service education for programs under section 126.77, subdivision 2, for staff development plans, including plans for challenging instructional activities and experiences under section 126.70, and for curriculum development and programs, other in-service education, teachers' workshops, teacher conferences, the cost of substitute teachers staff development purposes, and other related costs for staff development efforts. Districts may expend an additional amount of basic revenue for staff development based on their needs. The school board shall initially allocate 50 percent of the revenue to each school site in the district on a per teacher basis, which shall be retained by the school site until used. The board may retain 25 percent to be used for district wide staff development efforts. The remaining 25 percent of the revenue shall be used to make grants to school sites that demonstrate exemplary use of allocated staff development revenue. A grant may be used for any purpose authorized under section 126.70, 126.77, subdivision 2, or for the costs of curriculum development and programs, other in-service education, teachers' workshops, teacher conferences, substitute teachers for staff development purposes, and other staff development efforts, and determined by the site decision-making team. The site decision-making team must demonstrate to the school board the extent to which staff at the site have met the outcomes of the program. The board may withhold a portion of initial allocation of revenue if the staff development outcomes are not being met.

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Sec. 37. Minnesota Statutes 1996, section 124A.292, subdivision 3, is amended to read:

Subd. 3. [STAFF DEVELOPMENT LEVY.] A district's levy equals its revenue times the lesser of one or the ratio of:

(1) the quotient derived by dividing the district's adjusted net tax capacity for the year before the year the levy is certified by the district's actual pupil units for the school year to which the levy is attributable, to

(2) the equalizing factor for the school year to which the levy is attributable the number of teachers at the site times $8.15.

Sec. 38. Minnesota Statutes 1996, section 124A.30, is amended to read:

124A.30 [STATEWIDE AVERAGE REVENUE.]

By October 1 of each year the commissioner shall estimate the statewide average adjusted general education revenue per actual pupil unit and the range disparity in adjusted general education revenue among pupils and districts by computing the difference between the fifth and the ratio of the ninety-fifth percentiles percentile to the fifth percentile of adjusted general education revenue. The commissioner must provide that information to all school districts.

If the disparity in adjusted general education revenue as measured by the difference between the fifth and ratio of the ninety-fifth percentiles percentile to the fifth percentile increases in any year, the commissioner must propose a shall recommend to the legislature options for change in the general education formula that will limit the disparity in adjusted general education revenue to no more than the disparity for the previous school year. The commissioner must submit the proposal recommended options to the education committees of the legislature by January 15.

For purposes of this section, adjusted general revenue means the sum of basic revenue under section 124A.22, subdivision 2; supplemental revenue under section 124A.22, subdivisions 8 and 9; transition revenue under section 124.22, subdivision 13c; and referendum revenue under section 124A.03.

Sec. 39. Laws 1992, chapter 499, article 7, section 31, is amended to read:

Sec. 31. [REPEALER.]

Minnesota Statutes 1990, sections 124A.02, subdivision 24; 124A.23, subdivisions 2 and 3; 124A.26, subdivisions 2 and 3; 124A.27; 124A.28; and 124A.29, subdivision 2; and Minnesota Statutes 1991 Supplement, sections 124A.02, subdivisions 16 and 23; 124A.03, subdivisions 1b, 1c, 1d, 1e, 1f, 1g, 1h, and 1i; 124A.04; 124A.22, subdivisions 2, 3, 4, 4a, 4b, 8, and 9; 124A.23, subdivisions 1, 4, and 5; 124A.24; 124A.26, subdivision 1; and 124A.29, subdivision 1, are repealed effective June 30, 1999 2001; Laws 1991, chapter 265, article 7, section 35, is repealed.

Sec. 40. Laws 1997, First Special Session chapter 4, article 1, section 58, is amended to read:

Sec. 58. [BUS PURCHASE LEVY.]

(a) For 1997 taxes payable in 1998, a school district may levy the amount necessary to eliminate the deficit in the reserved fund balance account for bus purchases in its transportation fund as of June 30, 1996.

(b) For 1998 taxes payable in 1999, a school district that had a positive balance in the reserved fund balance account for bus purchases in its transportation fund as of June 30, 1996, but that had already entered into a contract for new buses or ordered new buses that had not been received prior to June 30, 1996, may levy an amount equal to the difference between the purchase price of the buses and its balance in the reserve account for bus purchases.

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Sec. 41. Laws 1997, First Special Session chapter 4, article 1, section 61, subdivision 3, is amended to read:

Subd. 3. [EQUALIZING FACTORS.] The commissioner shall adjust each equalizing factor established using adjusted net tax capacity per actual pupil unit under Minnesota Statutes, chapters 124 and 124A, by dividing the equalizing factor by the ratio of the statewide tax capacity as calculated using the class rates in effect for assessment year 1996 to the statewide tax capacity using the class rates for that assessment year.

Sec. 42. Laws 1997, First Special Session chapter 4, article 5, section 28, subdivision 12, is amended to read:

Subd. 12. [GRADUATION RULE IMPLEMENTATION AT THE SITE AID.] For graduation rule implementation:

$10,000,000 . . . . . 1998

(a) This appropriation shall be paid to districts according to paragraph (b). The purpose of the aid is to accelerate the implementation of the graduation rule throughout all education sites in the district through intensive staff development and decentralized decision making. The board shall work with the teaching staff in the district to determine the most effective staff development processes to assure an acceleration of the implementation. This appropriation is one-time only.

(b) A district shall receive aid equal to $10 times the number of fund balance pupil units in the district for fiscal year 1998 excluding pupil units attributable to shared time pupils. At least 30 percent must be used for the purposes of paragraph (a).

Sec. 43. [COMPENSATION PUPIL UNITS; FISCAL YEAR 1998.]

Notwithstanding Minnesota Statutes, section 124.17, subdivision 1d, paragraphs (a) to (c), for fiscal year 1998 only, compensation revenue pupil units for buildings with no free or reduced price lunch counts for fiscal year 1997 because the site did not participate in the national school lunch program, or for a contracted alternative program for which no count was reported to the department of children, families, and learning, shall be computed using data for the current fiscal year.

Sec. 44. [ONE-TIME DISTRICT-LEVEL COMPENSATORY REVENUE FOR TRANSITION.]

Subdivision 1. [ELIGIBILITY.] For fiscal year 1999 only, a district is eligible for supplemental compensatory revenue if its growth factor is less than 35 percent.

Subd. 2. [GROWTH FACTOR.] A school district's growth factor equals the ratio of:

(1) its fiscal year 1999 compensatory revenue per actual pupil unit for that year less the amount of compensatory revenue divided by the district's actual pupil units for fiscal year 1998 that the district would have received under Minnesota Statutes, section 124A.22, subdivision 3, for fiscal year 1998 computed using a basic formula allowance of $3,281; to

(2) the amount of compensatory revenue divided by the district's actual pupil units for fiscal year 1998 that the district would have received under Minnesota Statutes, section 124A.22, subdivision 3, for fiscal year 1998 computed using a basic formula allowance of $3,281.

Subd. 3. [REVENUE.] Supplemental compensatory revenue equals the total number of compensation revenue pupil units computed according to Minnesota Statutes, section 124.17, subdivision 1d, at each site for fiscal year 1998, times $216.

Subd. 4. [ALLOCATION.] Revenue under this section is allocated to school districts, and must be used according to Minnesota Statutes, section 124A.28, subdivision 1.

Sec. 45. [SUPPLEMENTAL REVENUE.]

Supplemental revenue for fiscal years 1998 and later under Minnesota Statutes, section 124A.22, subdivision 8, is increased by the following amounts:

(1) for independent school district No. 593, Crookston, $117,000;

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(2) for independent school district No. 361, International Falls, $107,000;

(3) for independent school district No. 706, Virginia, $43,000; and

(4) for independent school district No. 2154, Eveleth-Gilbert, $8,000.

Supplemental revenue increased under this section is not subject to reduction under Minnesota Statutes, section 124A.22, subdivision 9.

Sec. 46. [INDEPENDENT SCHOOL DISTRICT NO. 2862, JACKSON COUNTY CENTRAL; REFERENDUM AUTHORITY.]

Subdivision 1. [REFERENDUM REVENUE ADJUSTMENT.] Notwithstanding Minnesota Statutes, section 124A.03, referendum equalization aid for fiscal year 1998 for independent school district No. 2862, Jackson County Central, is $72,000, and the district's net tax capacity referendum levy is $61,000.

Subd. 2. [AID ADJUSTMENT.] The department of children, families, and learning shall adjust the aid payments for fiscal year 1998 to independent school district No. 2862, Jackson County Central, according to subdivision 1.

Subd. 3. [LEVY ADJUSTMENT.] For taxes payable in 1999, the department of children, families, and learning shall make a levy adjustment for the independent school district No. 2862, Jackson County Central, referendum levy authority for fiscal year 1998, according to subdivision 1.

Sec. 47. [LA CRESCENT-HOKAH; DEBT SERVICE EQUALIZATION.]

For the purpose of calculating debt service equalization, donations for capital improvements received before December 31, 2000, to independent school district No. 300, La Crescent-Hokah, must be considered as part of the percentage that is required to be raised locally under Minnesota Statutes, section 124.95, subdivision 3.

Sec. 48. [BUS LEVY; MAHTOMEDI.]

In addition to other levies, independent school district No. 832, Mahtomedi, a district that was in statutory operating debt, according to Minnesota Statutes, section 121.914, subdivisions 1 and 2, may levy an amount up to $110,000 for the purchase of four type III school buses. This amount may be levied over a period of three years.

Sec. 49. [ELMORE LEVY ADJUSTMENT.]

For property taxes payable in 1999 only, the levy for independent school district No. 2860, Blue Earth area, must be reduced by an amount equal to the amount levied by independent school district No. 219, Elmore, according to Laws 1996, chapter 412, article 5, section 18, subdivision 2, for taxes payable in 1997. The levy reduction must be applied against all taxable property in preexisting independent school district No. 219, Elmore, only.

Sec. 50. [APPROPRIATION.]

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 years designated.

Subd. 2. [GENERAL EDUCATION AID.] For general education aid:

$257,000 . . . . . 1998

$70,246,000 . . . . . 1999

This aid is in addition to any other aid appropriated for this purpose.

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Subd. 3. [SHIFT ELIMINATED.] For additional general education aid for eliminating the property tax recognition shift under this article:

$90,100,000 . . . . . 1999

Notwithstanding the provisions of Minnesota Statutes, section 124.195, the commissioner of children, families, and learning shall pay the fiscal year 1999 appropriation on June 20, 1999.

Subd. 4. [DISTRICT-LEVEL COMPENSATORY REVENUE.] For one-time additional district level compensatory revenue:

$14,700,000 . . . . . 1999

Of this amount:

(1) $4,500,000 is for a grant to independent school district No. 11, Anoka-Hennepin;

(2) $500,000 is for a grant to independent school district No. 281, Robbinsdale;

(3) $400,000 is for a grant to independent school district No. 625, St. Paul;

(4) $900,000 is for a grant to independent school district No. 709, Duluth;

(5) $800,000 is for a grant to independent school district No. 279, Osseo; and

(6) $200,000 is for a grant to independent school district No. 535, Rochester.

Subd. 5. [TECHNOLOGY INTEGRATION PROJECT.] For a grant to independent school district No. 62, Ortonville, to implement a technology integration program:

$200,000 . . . . . 1999

The purpose of the technology integration pilot project is to demonstrate successful and effective uses of technology for students, teachers, guidance counselors, administrators, and parents to implement Minnesota's graduation standards and track student performance in meeting the standards.

Sec. 51. [REPEALER.]

(a) Minnesota Statutes 1997 Supplement, section 124.912, subdivisions 2 and 3, are repealed effective for taxes payable in 1998.

(b) Minnesota Statutes 1996, sections 121.904, subdivision 4c; and 124.2601, subdivision 4, are repealed.

(c) Minnesota Statutes 1997 Supplement, section 124.2601, subdivision 5, is repealed effective July 1, 1999.

(d) Minnesota Statutes 1996, section 124.2713, subdivision 6b, is repealed effective for taxes payable in 1999 and revenue for fiscal year 2000.

(e) Minnesota Statutes 1996, section 124.2727, subdivision 6b, is repealed effective for taxes payable in 1999.

(f) Minnesota Statutes 1996, section 124A.292, subdivisions 2 and 4, are repealed effective for revenue for fiscal year 2000.

(g) Laws 1997, chapter 231, article 1, section 17, is repealed effective the day following final enactment.

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Sec. 52. [EFFECTIVE DATES.]

(a) Sections 1, 2, 15, 16, 17, 37, 38, and 40 are effective July 1, 1998.

(b) Sections 4, 5, 8, 9, 12, 13, 25, 41, 42, and 43 are effective for revenue for fiscal year 1998.

(c) Section 7 is effective retroactively to July 1, 1997, for revenue for fiscal year 1999.

(d) Sections 10, 11, 26, 27, 28, 31, 34, and 35 are effective for revenue for fiscal year 1999.

(e) Section 14 is effective July 1, 1999.

(f) Section 18 is effective for revenue for fiscal year 2000.

(g) Section 21 is effective retroactive for revenue for fiscal year 1997.

(h) Sections 24, 33, and 46 are effective the day following final enactment.

ARTICLE 2

SPECIAL EDUCATION

Section 1. Minnesota Statutes 1996, section 120.03, subdivision 1, is amended to read:

Subdivision 1. Every child who has a hearing impairment, visual disability, speech or language impairment, physical handicap, other health impairment, mental handicap, emotional/behavioral disorder, specific learning disability, autism, traumatic brain injury, multiple disabilities, or deaf/blind disability and needs special instruction and services, as determined by the standards of the state board, is a child with a disability. In addition, every child under age five three, and at local district discretion from age three to age seven, who needs special instruction and services, as determined by the standards of the state board, because the child has a substantial delay or has an identifiable physical or mental condition known to hinder normal development is a child with a disability.

Sec. 2. [120.031] [STATEWIDE DATA MANAGEMENT SYSTEM TO MAXIMIZE MEDICAL ASSISTANCE REIMBURSEMENT.]

Subdivision 1. [DEFINITION.] For purposes of this section, cooperative unit has the meaning given in section 123.35, subdivision 19b, paragraph (d).

Subd. 2. [STATEWIDE DATA MANAGEMENT SYSTEM.] The commissioner of children, families, and learning, in cooperation with the commissioner of human services, shall develop a statewide data management system using the educational data reporting system or other existing data management system for school districts and cooperative units to use to maximize medical assistance reimbursement for health and health-related services provided under individual education plans and individual family service plans. The system must be appropriately integrated with state and local existing and developing human services and education data systems. The statewide data management system must enable school district and cooperative unit staff to:

(1) establish medical assistance billing systems or improve existing systems;

(2) understand the appropriate medical assistance billing codes for services provided under individual education plans and individual family service plans;

(3) comply with the Individuals with Disabilities Education Act, Public Law Number 105-17;

(4) contract with billing agents; and

(5) carry out other activities necessary to maximize medical assistance reimbursement.

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Subd. 3. [IMPLEMENTATION.] Consistent with Minnesota Statutes 256B.0625, subdivision 26, school districts may enroll as medical assistance providers or subcontractors and bill the department of human services under the medical assistance fee for service claims processing system for special education services which are covered services under chapter 256B, which are provided in the school setting for a medical assistance recipient, and for whom the district has secured informed consent consistent with section 13.05, subdivision 4, paragraph (d), and section 256B.77, subdivision 2, paragraph (p), to bill for each type of covered service. A school district is not eligible to enroll as a home care provider or a personal care provider organization for purposes of billing home care services under section 256B.0627 until the commissioner of human services issues a bulletin instructing county public health nurses on how to assess for the needs of eligible recipients during school hours. To use private duty nursing services or personal care services at school, the recipient or responsible party must provide written authorization in the care plan identifying the chosen provider and the daily amount of services to be used at school. Medical assistance services for those enrolled in a prepaid health plan shall remain the responsibility of the contracted health plan subject to their network, credentialing, prior authorization, and determination of medical necessity criteria. The commissioner of human services shall adjust payments to health plans to reflect increased costs incurred by health plans due to increased payments made to school districts or new payment or delivery arrangements developed by health plans in cooperation with school districts.

Sec. 3. Minnesota Statutes 1996, section 120.06, subdivision 2a, is amended to read:

Subd. 2a. [EDUCATION AND RESIDENCE OF HOMELESS.] (a) Notwithstanding subdivision 1, a school district must not deny free admission to a homeless person of school age solely because the school district cannot determine that the person is a resident of the school district.

(b) The school district of residence for a homeless person of school age shall be the school district in which the homeless shelter or other program, center, or facility assisting the homeless person is located. The educational services a school district provides to a homeless person must allow the person to work toward meeting the graduation standards under section 121.11, subdivision 7c.

Sec. 4. Minnesota Statutes 1996, section 120.064, subdivision 5, is amended to read:

Subd. 5. [CONTRACT.] The sponsor's authorization for a charter school shall be in the form of a written contract signed by the sponsor and the board of directors of the charter school. The contract for a charter school shall be in writing and contain at least the following:

(1) a description of a program that carries out one or more of the purposes in subdivision 1;

(2) specific outcomes pupils are to achieve under subdivision 10;

(3) admission policies and procedures;

(4) management and administration of the school;

(5) requirements and procedures for program and financial audits;

(6) how the school will comply with subdivisions 8, 13, 15, and 21;

(7) assumption of liability by the charter school;

(8) types and amounts of insurance coverage to be obtained by the charter school; and

(9) the term of the contract, which may be up to three years; and

(10) if the board of directors or the operators of the charter school provide special instruction and services for children with a disability under section 120.17, a description of the financial parameters within which the charter school will operate to provide the special instruction and services to children with a disability.

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Sec. 5. Minnesota Statutes 1996, section 120.101, subdivision 3, is amended to read:

Subd. 3. [PARENT DEFINED; RESIDENCY DETERMINED.] (a) In sections 120.101 to 120.103, "parent" means a parent, guardian, or other person having legal custody of a child.

(b) In section 120.17, "parent" means a parent, guardian, or other person having legal custody of a child under age 18. For an unmarried pupil age 18 or over, "parent" means the pupil unless a guardian or conservator has been appointed, in which case it means the guardian or conservator.

(c) For purposes of section 120.17, the school district of residence for an unmarried pupil age 18 or over who is a parent under paragraph (b) and who is placed in a center for care and treatment, shall be the school district in which the pupil's biological or adoptive parent or designated guardian resides.

(d) For a married pupil age 18 or over, the school district of residence is the school district in which the married pupil resides.

Sec. 6. Minnesota Statutes 1996, section 120.17, subdivision 1, is amended to read:

Subdivision 1. [SPECIAL INSTRUCTION FOR CHILDREN WITH A DISABILITY.] (a) As defined in paragraph (b), to the extent required in federal law as of July 1, 1999, every district shall provide special instruction and services, either within the district or in another district, for children with a disability who are residents of the district and who are disabled as set forth in section 120.03.

(b) Notwithstanding any age limits in laws to the contrary, special instruction and services must be provided from birth until September 1 after the child with a disability becomes 22 years old but shall not extend beyond secondary school or its equivalent, except as provided in section 126.22, subdivision 2. Local health, education, and social service agencies shall refer children under age five who are known to need or suspected of needing special instruction and services to the school district. Districts with less than the minimum number of eligible children with a disability as determined by the state board shall cooperate with other districts to maintain a full range of programs for education and services for children with a disability. This subdivision does not alter the compulsory attendance requirements of section 120.101.

Sec. 7. Minnesota Statutes 1996, section 120.17, subdivision 2, is amended to read:

Subd. 2. [METHOD OF SPECIAL INSTRUCTION.] (a) As defined in this subdivision, to the extent required by federal law as of July 1, 1999, special instruction and services for children with a disability must be based on the assessment and individual education plan. The instruction and services may be provided by one or more of the following methods:

(1) in connection with attending regular elementary and secondary school classes;

(2) establishment of special classes;

(3) at the home or bedside of the child;

(4) in other districts;

(5) instruction and services by special education cooperative centers established under this section, or in another member district of the cooperative center to which the resident district of the child with a disability belongs;

(6) in a state residential school or a school department of a state institution approved by the commissioner;

(7) in other states;

(8) by contracting with public, private or voluntary agencies;

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(9) for children under age five and their families, programs and services established through collaborative efforts with other agencies;

(10) for children under age five and their families, programs in which children with a disability are served with children without a disability; and

(11) any other method approved by the commissioner.

(b) Preference shall be given to providing special instruction and services to children under age three and their families in the residence of the child with the parent or primary caregiver, or both, present.

(c) The primary responsibility for the education of a child with a disability shall remain with the district of the child's residence regardless of which method of providing special instruction and services is used. If a district other than a child's district of residence provides special instruction and services to the child, then the district providing the special instruction and services shall notify the child's district of residence before the child's individual education plan is developed and shall provide the district of residence an opportunity to participate in the plan's development. The district of residence must inform the parents of the child about the methods of instruction that are available.

(d) Paragraphs (e) to (i) may be cited as the "Blind Persons' Literacy Rights and Education Act."

(e) The following definitions apply to paragraphs (f) to (i).

"Blind student" means an individual who is eligible for special educational services and who:

(1) has a visual acuity of 20/200 or less in the better eye with correcting lenses or has a limited field of vision such that the widest diameter subtends an angular distance of no greater than 20 degrees; or

(2) has a medically indicated expectation of visual deterioration.

"Braille" means the system of reading and writing through touch commonly known as standard English Braille.

"Individualized education plan" means a written statement developed for a student eligible for special education and services pursuant to this section and section 602(a)(20) of part A of the Individuals with Disabilities Education Act, United States Code, title 20, section 1401(a).

(f) In developing an individualized education plan for each blind student the presumption must be that proficiency in Braille reading and writing is essential for the student to achieve satisfactory educational progress. The assessment required for each student must include a Braille skills inventory, including a statement of strengths and deficits. Braille instruction and use are not required by this paragraph if, in the course of developing the student's individualized education program, team members concur that the student's visual impairment does not affect reading and writing performance commensurate with ability. This paragraph does not require the exclusive use of Braille if other special education services are appropriate to the student's educational needs. The provision of other appropriate services does not preclude Braille use or instruction. Instruction in Braille reading and writing shall be available for each blind student for whom the multidisciplinary team has determined that reading and writing is appropriate.

(g) Instruction in Braille reading and writing must be sufficient to enable each blind student to communicate effectively and efficiently with the same level of proficiency expected of the student's peers of comparable ability and grade level.

(h) The student's individualized education plan must specify:

(1) the results obtained from the assessment required under paragraph (f);

(2) how Braille will be implemented through integration with other classroom activities;

(3) the date on which Braille instruction will begin;

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(4) the length of the period of instruction and the frequency and duration of each instructional session;

(5) the level of competency in Braille reading and writing to be achieved by the end of the period and the objective assessment measures to be used; and

(6) if a decision has been made under paragraph (f) that Braille instruction or use is not required for the student:

(i) a statement that the decision was reached after a review of pertinent literature describing the educational benefits of Braille instruction and use; and

(ii) a specification of the evidence used to determine that the student's ability to read and write effectively without Braille is not impaired.

(i) Instruction in Braille reading and writing is a service for the purpose of special education and services under this section.

(j) Paragraphs (e) to (i) shall not be construed to supersede any rights of a parent or guardian of a child with a disability under federal or state law.

Sec. 8. Minnesota Statutes 1996, section 120.17, subdivision 3, is amended to read:

Subd. 3. [RULES OF THE STATE BOARD.] (a) As defined in this paragraph, but not to exceed the extent required by federal law as of July 1, 1999, the state board shall promulgate rules relative to qualifications of essential personnel, courses of study, methods of instruction, pupil eligibility, size of classes, rooms, equipment, supervision, parent consultation, and any other rules it deems necessary rules for instruction of children with a disability. These rules shall provide standards and procedures appropriate for the implementation of and within the limitations of subdivisions 3a and 3b. These rules shall also provide standards for the discipline, control, management and protection of children with a disability. The state board shall not adopt rules for pupils served in level 1, 2, or 3, as defined in Minnesota Rules, part 3525.2340, primarily in the regular classroom establishing either case loads or the maximum number of pupils that may be assigned to special education teachers. The state board, in consultation with the departments of health and human services, shall adopt permanent rules for instruction and services for children under age five and their families. These rules are binding on state and local education, health, and human services agencies. The state board shall adopt rules to determine eligibility for special education services. The rules shall include procedures and standards by which to grant variances for experimental eligibility criteria. The state board shall, according to section 14.05, subdivision 4, notify a district applying for a variance from the rules within 45 calendar days of receiving the request whether the request for the variance has been granted or denied. If a request is denied, the board shall specify the program standards used to evaluate the request and the reasons for denying the request.

(b) As provided in this paragraph, but not to exceed the extent required by federal law as of July 1, 1999, the state's regulatory scheme should support schools by assuring that all state special education rules adopted by the state board of education result in one or more of the following outcomes:

(1) increased time available to teachers and, where appropriate, to support staff including school nurses for educating students through direct and indirect instruction;

(2) consistent and uniform access to effective education programs for students with disabilities throughout the state;

(3) reduced inequalities, and conflict, appropriate due process hearing procedures and reduced court actions related to the delivery of special education instruction and services for students with disabilities;

(4) clear expectations for service providers and for students with disabilities;

(5) increased accountability for all individuals and agencies that provide instruction and other services to students with disabilities;

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(6) greater focus for the state and local resources dedicated to educating students with disabilities; and

(7) clearer standards for evaluating the effectiveness of education and support services for students with disabilities.

Sec. 9. Minnesota Statutes 1996, section 120.17, subdivision 3a, is amended to read:

Subd. 3a. [SCHOOL DISTRICT OBLIGATIONS.] (a) As defined in this subdivision, to the extent required by federal law as of July 1, 1999, 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. In developing the plan, districts must inform parents of the full range of transitional goals and related services that should be considered. 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) eligibility and needs of children with a disability are determined by an initial assessment or reassessment, which may be completed using existing data under United States Code, title 20, section 33, et seq.;

(5) 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) (6) 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) (7) 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.

(b) For paraprofessionals employed to work in programs for students with disabilities, the school board in each district shall ensure that:

(1) before or immediately upon employment, each paraprofessional develops sufficient knowledge and skills in emergency procedures, building orientation, roles and responsibilities, confidentiality, vulnerability, and reportability, among other things, to begin meeting the needs of the students with whom the paraprofessional works;

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(2) annual training opportunities are available to enable the paraprofessional to continue to further develop the knowledge and skills that are specific to the students with whom the paraprofessional works, including understanding disabilities, following lesson plans, and implementing follow-up instructional procedures and activities; and

(3) a districtwide process obligates each paraprofessional to work under the ongoing direction of a licensed teacher and, where appropriate and possible, the supervision of a school nurse.

Sec. 10. Minnesota Statutes 1996, section 120.17, subdivision 3b, is amended to read:

Subd. 3b. [PROCEDURES FOR DECISIONS.] As defined in this paragraph, but not to exceed the extent required by federal law as of July 1, 1999, 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 paragraph (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 under paragraph (a). The conciliation process or other form of state intends to encourage parties to resolve disputes through mediation or other form of alternative dispute resolution. A school district and a parent or guardian must participate in mediation using mediation services acceptable to both parties, unless a party objects to the mediation. Mediation shall remain available to the parties until a party objects to the mediation, or the mediator determines that further efforts to mediate a dispute are not warranted. All mediation is subject to the confidentiality requirements under rule 114.08 of the general rules of practice for the district courts. 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 paragraph (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;

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(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.

A hearing officer may limit an impartial due process hearing to an amount of time sufficient for each party to present its case. The party requesting the hearing shall plead with specificity as to what issues are in dispute and all issues not pleaded with specificity are deemed waived. Parties must limit evidence to the issues specifically pleaded. A hearing officer, at the officer's discretion, may exclude cumulative evidence or may encourage parties to present only essential witnesses.

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. 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 from a list maintained for that purpose. A retired judge, retired court referee, or retired federal magistrate judge who is otherwise qualified under this section and wishes to be a hearing officer may be put on the list. The school board shall include with the 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. Any party to a hearing, except an expedited hearing under federal law, may make and serve upon the opposing party and the commissioner a notice to remove a hearing officer appointed by the commissioner. The notice shall be served and filed within two business days after the party receives notice of the appointment of the hearing officer by the commissioner.

No such notice may be filed by a party against a hearing officer who has presided at a motion or any other proceeding of which the party had notice. A hearing officer who has presided at a motion or other proceeding may not be removed except upon an affirmative showing of prejudice on the part of the hearing officer.

After the party has once disqualified a hearing officer as a matter of right, that party may disqualify the substitute hearing officer only by making an affirmative showing of prejudice or bias to the commissioner, or to the chief administrative law judge if the hearing officer is an administrative law judge.

Upon the filing of a notice to remove or if a party makes an affirmative showing of prejudice against a substitute hearing officer, the commissioner shall assign any other hearing officer to hear the matter.

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 paragraph (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 unless requested by either party for good cause shown on the record. Good cause includes the time required for mediation under paragraph (c). The decision

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of the hearing officer shall be binding on all parties unless appealed to the commissioner by the parent; guardian; school board of the district where the child resides pursuant to clause (g) paragraph (h); 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) be based on the standards set forth in subdivision 3a and the rules of the state board.

(g) The hearing officer may require the resident school district to provide compensatory educational services to the child if the hearing officer finds that the school district has not offered or made available to the child a free appropriate public education in the child's educational program and that the child has suffered a loss of educational benefit. Such services shall take the form of direct and indirect special education and related services designed to address any loss of educational benefit that may have occurred. The hearing officer's finding shall be based on a present determination of whether the child has suffered a loss of educational benefit.

(g) (h) Any local decision issued pursuant to clauses paragraphs (e) and (f) may be appealed to the 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 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) (i) 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. State judicial review shall be in accordance with chapter 14.

(i) (j) 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;

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(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;

(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; and

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

(j) (k) 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) (l) 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) (m) 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) (n) 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) (o) 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) (p) 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) (q) 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) (r) 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. 11. Minnesota Statutes 1996, 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.

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(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 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. For the purposes of this section, the state correctional facilities operated on a fee-for-service basis are considered to be residential programs for care and treatment.

(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. 12. Minnesota Statutes 1996, section 120.17, subdivision 7, is amended to read:

Subd. 7. [PLACEMENT IN STATE INSTITUTION; RESPONSIBILITY.] Responsibility for special instruction and services for a child with a disability placed in a state institution on a temporary basis shall be determined in the following manner:

(a) The legal residence of such child shall be the school district in which the child's parent resides, if living, or the child's guardian.

(b) When the educational needs of such child can be met through the institutional program, the costs for such instruction shall be paid by the department to which the institution is assigned with exception of children placed in fee-for-service facilities operated by the commissioner of corrections whose cost for such instruction shall be paid as outlined in subdivision 6.

(c) When it is determined that such child can benefit from public school enrollment, provision for such instruction shall be made in the following manner:

(1) determination of eligibility for special instruction and services shall be made by the commissioner of children, families, and learning and the commissioner of the department responsible for the institution;

(2) the school district where the institution is located shall be responsible for providing transportation and an appropriate educational program for the child and shall make a tuition charge to the child's district of residence for the actual cost of providing the program;

(3) the district of the child's residence shall pay the tuition and other program costs excluding transportation costs and may claim general education aid for the child. Transportation costs shall be paid by the district where the institution is located and the state shall pay transportation aid to that district.

Sec. 13. Minnesota Statutes 1996, 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 under this section shall be denied provision of this instruction and service on a shared time basis consistent with section 124A.034, subdivision 2, because of attendance at attending 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

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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 another district and if no agreement exists pursuant to under section 124A.034, subdivision 1 or 1a, for the provision of providing 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. 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. 14. Minnesota Statutes 1996, section 120.17, subdivision 15, is amended to read:

Subd. 15. [THIRD PARTY PAYMENT.] (a) Nothing in this section relieves an insurer or similar third party from an otherwise valid obligation to pay, or changes the validity of an obligation to pay, for services rendered to a child with a disability, and the child's family. A school district may pay or reimburse copayments, coinsurance, deductibles, and other enrollee cost-sharing amounts, on behalf of the student or family, in connection with health and related services provided under an individual educational plan.

(b) Beginning July 1, 1999, districts shall seek reimbursement from insurers and similar third parties for the cost of services provided by the district whenever the services provided by the district are otherwise covered by the child's health coverage. Districts shall request, but may not require, the child's family to provide information about the child's health coverage when a child with a disability begins to receive services from the district of a type that may be reimbursable, and shall request, but may not require, updated information after that as needed. Districts shall request, but may not require, the child's parent or legal representative to sign a consent form, permitting the school district to apply for and receive reimbursement directly from the insurer or other similar third party, to the extent permitted by the insurer or other third party and subject to their networking credentialing, prior authorization, and determination of medical necessity criteria.

(c) Of the reimbursements received, districts may:

(1) retain an amount sufficient to compensate the district for its administrative costs of obtaining reimbursements;

(2) regularly obtain from education- and health-related entities training and other appropriate technical assistance designed to improve the district's ability to determine which services are reimbursable and to seek timely reimbursement in a cost-effective manner; or

(3) reallocate reimbursements for the benefit of students with special needs in the district.

(d) To the extent required by federal law, a school district may not require parents of children with disabilities, if they would incur a financial cost, to use private or public health coverage to pay for the services that must be provided under an individual education plan.

(e) When obtaining informed consent, consistent with sections 13.05, subdivision 4, paragraph (d); and 256B.77, subdivision 2, paragraph (p), to bill health plans for covered services, the school district must notify the legal representative (1) that the cost of the person's private health insurance premium may increase due to providing the covered service in the school setting, (2) that the school district may pay certain enrollee health plan costs, including but not limited to, copayments, coinsurance, deductibles, premium increases or other enrollee cost-sharing amounts for health and related services required by an individual service plan, or individual family service plan, and (3) that the school's billing for each type of covered service may affect service limits and prior authorization thresholds. The informed consent may be revoked in writing at any time by the person authorizing the billing of the health plan.

(f) To the extent required by federal law, no school district may deny, withhold, or delay any service that must be provided under an individual education plan because a family has refused to provide informed consent to bill a health plan for services or a health plan company has refused to pay any, all, or a portion of the cost of services billed.

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(g) A school district may disclose information contained in a student's individual education plan, consistent with section 13.32, subdivision 3(a), including records of the student's diagnosis and treatment, to a health plan company only with the signed and dated consent of the student's parent, or other legally authorized individual. The school district shall disclose only that information necessary for the health plan company to decide matters of coverage and payment. A health plan company may use the information only for making decisions regarding coverage and payment, and for any other use permitted by law.

Sec. 15. Minnesota Statutes 1996, section 120.1701, subdivision 2, is amended to read:

Subd. 2. [DEFINITIONS.] For the purposes of this section the following terms have the meaning given them.

(a) "Coordinate" means to provide ready access to a community's services and resources to meet child and family needs.

(b) "Core early intervention services" means services that are available at no cost to children and families. These services include:

(1) identification and referral;

(2) screening;

(3) evaluation;

(4) assessment;

(5) service coordination;

(6) special education and related services provided under section 120.17, subdivision 3a, and United States Code, title 20, section 1401; and

(7) protection of parent and child rights by means of procedural safeguards.

(c) "County board" means a county board established under chapter 375.

(d) "Early intervention record" means any personally identifiable information about a child or the child's family that is generated by the early intervention system, and that pertains to evaluation and assessment, development of an individualized family service plan, and the delivery of early intervention services.

(e) "Early intervention services" means services provided in conformity with an individualized family service plan that are designed to meet the special developmental needs of a child eligible under Code of Federal Regulations, title 34, part 303, and the needs of the child's family related to enhancing the child's development and that are selected in collaboration with the parent. These services include core early intervention services and additional early intervention services listed in subdivision 4 and services defined in Code of Federal Regulations, title 34, section 303, et seq.

(f) "Early intervention system" means the total effort in the state to meet the needs of eligible children and their families, including, but not limited to:

(1) any public agency in the state that receives funds under the Individuals with Disabilities Education Act, United States Code, title 20, sections 1471 to 1485 (Part H, Public Law Number 102-119);

(2) other state and local agencies administering programs involved in the provision of early intervention services, including, but not limited to:

(i) the Maternal and Child Health program under title V of the Social Security Act, United States Code, title 42, sections 701 to 709;

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(ii) the Individuals with Disabilities Education Act, United States Code, title 20, sections 1411 to 1420 (Part B);

(iii) medical assistance under the Social Security Act, United States Code, title 42, section 1396 et seq.;

(iv) the Developmental Disabilities Assistance and Bill of Rights Act, United States Code, title 42, sections 6021 to 6030 (Part B); and

(v) the Head Start Act, United States Code, title 42, sections 9831 to 9852; and

(3) services provided by private groups or third-party payers in conformity with an individualized family service plan.

(g) "Eligibility for Part H" means eligibility for early childhood special education under section 120.03 and Minnesota Rules, part 3525.2335, subpart 1, items A and B.

(h) "Facilitate payment" means helping families access necessary public or private assistance that provides payment for services required to meet needs identified in a service plan, individual education plan (IEP), individual service plan (ISP), or individualized family service plan (IFSP), according to time frames required by the plan. This may also include activities to collect fees for services provided on a sliding fee basis, where permitted by state law.

(i) "Individualized family service plan" or "IFSP" means a written plan for providing services to a child and the child's family.

(j) "Interagency child find systems" means activities developed on an interagency basis with the involvement of interagency early intervention committees and other relevant community groups to actively seek out, identify, and refer infants and young children with, or at risk of, disabilities, and their families.

(k) "Local primary agency" means the agency designated jointly by the school and county board under subdivision 4.

(l) "Natural environments" means the child's home and community settings in which children without disabilities participate.

(m) "Parent" means the biological parent with parental rights, adoptive parent, legal guardian, or surrogate parent.

(m) (n) "Part H state plan" means the annual state plan application approved by the federal government under the Individuals with Disabilities Education Act, United States Code, title 20, section 1471 et seq. (Part H, Public Law Number 102-119).

(n) (o) "Pay for" means using federal, state, local, and private dollars available for early intervention services.

(o) (p) "Respite" means short-term, temporary care provided to a child with a disability due to the temporary absence or need for relief of the family member or members or primary caregiver, normally providing the care.

(p) (q) "State lead agency" means the state agency receiving federal funds under the Individuals with Disabilities Education Act, United States Code, title 20, section 1471 et seq. (Part H, Public Law Number 102-119).

(q) (r) "Surrogate parent" means a person appointed by the local education agency to assure that the rights of the child to early intervention services are protected. A person cannot be a surrogate parent to a child for whom the person provides early intervention services.

Sec. 16. Minnesota Statutes 1997 Supplement, section 120.1701, subdivision 3, is amended to read:

Subd. 3. [STATE INTERAGENCY COORDINATING COUNCIL.] An interagency coordinating council of at least 17, but not more than 25 members is established, in compliance with Public Law Number 102-119, section 682. The members shall be appointed by the governor. Council members shall elect the council chair. The representative of the commissioner of children, families, and learning may not serve as the chair. The council shall be composed of at least

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five parents, including persons of color, of children with disabilities under age 12, including at least three parents of a child with a disability under age seven, five representatives of public or private providers of services for children with disabilities under age five, including a special education director, county social service director, local Head Start director, and a community health services or public health nursing administrator, one member of the senate, one member of the house of representatives, one representative of teacher preparation programs in early childhood-special education or other preparation programs in early childhood intervention, at least one representative of advocacy organizations for children with disabilities under age five, one physician who cares for young children with special health care needs, one representative each from the commissioners of commerce, children, families, and learning, health, human services, and economic security a representative from the state agency responsible for child care, and a representative from Indian health services or a tribal council. Section 15.059, subdivisions 2 to 5, apply to the council. The council shall meet at least quarterly.

The council shall address methods of implementing the state policy of developing and implementing comprehensive, coordinated, multidisciplinary interagency programs of early intervention services for children with disabilities and their families.

The duties of the council include recommending policies to ensure a comprehensive and coordinated system of all state and local agency services for children under age five with disabilities and their families. The policies must address how to incorporate each agency's services into a unified state and local system of multidisciplinary assessment practices, individual intervention plans, comprehensive systems to find children in need of services, methods to improve public awareness, and assistance in determining the role of interagency early intervention committees.

Each year by June 1, the council shall recommend to the governor and the commissioners of children, families, and learning, health, human services, commerce, and economic security policies for a comprehensive and coordinated system.

Notwithstanding any other law to the contrary, the state interagency coordinating council shall expire on June 30, 2001.

Sec. 17. Minnesota Statutes 1996, section 120.1701, subdivision 11, is amended to read:

Subd. 11. [PAYOR OF LAST RESORT.] (a) For fiscal years 1995 and 1996, The state lead agency shall establish maintain a reserve account from federal sources to pay for services in dispute or to pay for early intervention services when local agencies have exhausted all other public and private funds available for Part H eligible children.

(b) The lead agency shall report to the legislature by January 1, 1996, regarding county board expenditures for early intervention services and the continuing need and funding of the reserve account.

Sec. 18. Minnesota Statutes 1996, section 120.1701, subdivision 17, is amended to read:

Subd. 17. [MEDIATION PROCEDURE.] The commissioner, or the commissioner's designee, of the state lead agency shall use federal funds to provide mediation for the activities in paragraphs (a) and (b).

(a) A parent may resolve a dispute regarding issues in subdivision 16, paragraph (b), clause (5), through mediation. If the parent chooses mediation, all public agencies involved in the dispute shall participate in the mediation process. The parent and the public agencies must complete the mediation process within 20 30 calendar days of the date the commissioner office of dispute resolution receives a parent's written request for mediation. The mediation process may not be used to delay a parent's right to a due process hearing. The resolution of the mediation is not binding on any party.

(b) Resolution of a dispute through mediation, or other form of alternative dispute resolution, is not limited to formal disputes arising from the objection of a parent or guardian and is not limited to the period following a request for a due process hearing.

(c) The local primary agency may request mediation on behalf of involved agencies when there are disputes between agencies regarding responsibilities to coordinate, provide, pay for, or facilitate payment for early intervention services.

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Sec. 19. Minnesota Statutes 1996, section 120.173, subdivision 1, is amended to read:

Subdivision 1. [COMMISSIONER APPROVAL.] The commissioner of children, families, and learning may approve applications from school districts to provide prevention services as an alternative to special education and other compensatory programs during three school years. A district with an approved program may provide instruction and services in a regular education classroom, or an area learning center, to eligible pupils. Pupils eligible to participate in the program are low-performing pupils who, based on documented experience, the professional judgment of a classroom teacher, or a team of licensed professionals, would eventually qualify for special education instruction or related services under section 120.17 if the intervention services authorized by this section were unavailable. Pupils may be provided services during extended school days and throughout the entire year and through the assurance of mastery program under section 124.3111.

Sec. 20. Minnesota Statutes 1996, section 120.173, subdivision 6, is amended to read:

Subd. 6. [PUPIL RIGHTS.] A pupil participating in the program must be individually evaluated according to the pupil's actual abilities and needs. A pupil who is eligible for services under section 120.17 is entitled to procedural protections provided under Public Law Number 94-142 United States Code, title 20, section 33, in any matter that affects the identification, evaluation, placement, or change in placement of a pupil. The district must ensure the protection of a pupil's civil rights, provide equal educational opportunities, and prohibit discrimination. Failure to comply with this subdivision will at least cause a district to become ineligible to participate in the program. Notwithstanding rules of the state board of education, a pupil's rights under this section cannot be waived by the state board.

Sec. 21. Minnesota Statutes 1997 Supplement, section 120.181, is amended to read:

120.181 [PLACEMENT OF 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 when neither the pupil's parent nor guardian resides within the state and tuition has been denied, the district designated by the commissioner of children, families, and learning.

(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 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. For purposes of this section, the state correctional facilities operated on a fee-for-service basis are considered to be residential programs for care and treatment.

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(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 disabled transportation category.

Sec. 22. Minnesota Statutes 1996, section 123.935, subdivision 1, is amended to read:

Subdivision 1. [PROVIDED SERVICES.] The state board of education shall promulgate rules under the provisions of chapter 14 requiring each school district or other intermediary service area: (a) to provide each year upon formal request by a specific date by or on behalf of a nonpublic school pupil enrolled in a nonpublic school located in that district or area, the same specific health services as are provided for public school pupils by the district where the nonpublic school is located; and (b) to provide each year upon formal request by a specific date by or on behalf of a nonpublic school secondary pupil enrolled in a nonpublic school located in that district or area, the same specific guidance and counseling services as are provided for public school secondary pupils by the district where the nonpublic school is located. The district where the nonpublic school is located shall provide the necessary transportation within the district boundaries between the nonpublic school and a public school or neutral site for nonpublic school pupils who are provided pupil support services pursuant to under this section if the district elects to provide pupil support services at a site other than the nonpublic school. Each request for pupil support services shall set forth the guidance and counseling or health services requested by or on behalf of all eligible nonpublic school pupils enrolled in a given nonpublic school. No district or intermediary service area shall expend an amount for these pupil support services which exceeds the amount allotted to it under this section.

Sec. 23. Minnesota Statutes 1996, section 123.935, subdivision 2, is amended to read:

Subd. 2. [LOCATION OF SERVICES.] Health and guidance and counseling services may be provided to nonpublic school pupils pursuant to under 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. 24. Minnesota Statutes 1996, section 124.17, subdivision 2, is amended to read:

Subd. 2. [AVERAGE DAILY MEMBERSHIP.] Membership for pupils in grades kindergarten through 12 and for prekindergarten pupils with disabilities shall mean the number of pupils on the current roll of the school, counted from the date of entry until withdrawal. The date of withdrawal shall mean the day the pupil permanently leaves the school or the date it is officially known that the pupil has left or has been legally excused. However, a pupil, regardless of age, who has been absent from school for 15 consecutive school days during the regular school year or for five consecutive school days during summer school or intersession classes of flexible school year programs without receiving instruction in the home or hospital shall be dropped from the roll and classified as withdrawn. Nothing in this section shall be construed as waiving the compulsory attendance provisions cited in section 120.101. Average daily membership shall equal the sum for all pupils of the number of days of the school year each pupil is enrolled in the district's schools divided by the number of days the schools are in session. Days of summer school or intersession classes of flexible school year programs shall only be included in the computation of membership for pupils with a disability not appropriately served at level 4, 5, or 6 of the continuum of placement model described in Minnesota Rules, part 3525.0200 primarily in the regular classroom.

Sec. 25. Minnesota Statutes 1997 Supplement, section 124.3111, subdivision 2, is amended to read:

Subd. 2. [ELIGIBLE PUPILS.] A pupil is eligible to receive services through an assurance of mastery program if the pupil has not demonstrated progress toward mastering the required graduation standards, after receiving instruction that was designed to enable the pupil to make progress toward mastering the required graduation standards in a regular classroom setting. A pupil also is eligible to receive services through an assurance of mastery program if the pupil, based on the professional judgment of a classroom teacher or a team of licensed professionals, demonstrates a need for alternative instructional strategies or interventions. To determine pupil eligibility, a district must use a process adopted by the school board to review curriculum and instruction, for the subjects and at the grade level at which the district uses the revenue.

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Sec. 26. Minnesota Statutes 1996, section 124.32, is amended by adding a subdivision to read:

Subd. 13. [LITIGATION AND HEARING COSTS.] (a) For fiscal year 1999 and thereafter, the commissioner of children, families, and learning, or the commissioner's designee, shall use state funds to pay school districts for the administrative costs of a due process hearing incurred under section 120.17, subdivision 3b, paragraphs (e), (h), and (i), including hearing officer fees, court reporter fees, mileage costs, transcript costs, independent evaluations ordered by the hearing officer, and rental of hearing rooms, but not including district attorney fees. To receive state aid under this paragraph, a school district shall submit to the commissioner at the end of the school year an itemized list of unreimbursed actual costs for fees and other expenses under this paragraph. State funds used for aid to school districts under this paragraph shall be based on the unreimbursed actual costs and fees submitted by a district from previous school years.

(b) For fiscal year 1999 and thereafter, a school district, to the extent to which it prevails under United States Code, title 20, section 1415(i)(3)(B)(D) and Rule 68 of the Federal Rules of Civil Procedure, shall receive state aid equal to 50 percent of the total actual cost of attorney fees incurred after a request for a due process hearing under section 120.17, subdivision 3b, paragraphs (e), (h), and (i), is served upon the parties. A district is eligible for reimbursement for attorney fees under this paragraph only if:

(1) a court of competent jurisdiction determines that the parent is not the prevailing party under United States Code, title 20, section 1415(i)(3)(B)(D), or the parties stipulate that the parent is not the prevailing party;

(2) the district has made a good faith effort to resolve the dispute through mediation, but the obligation to mediate does not compel the district to agree to a proposal or make a concession; and

(3) the district made an offer of settlement under Rule 68 of the Federal Rules of Civil Procedure.

To receive aid, a school district that meets the criteria of this paragraph shall submit to the commissioner at the end of the school year an itemized list of unreimbursed actual attorney fees associated with a due process hearing under section 120.17, subdivision 3b, paragraphs (e), (h), and (i). Aid under this paragraph for each school district is based on unreimbursed actual attorney fees submitted by the district from previous school years.

(c) For fiscal year 1999 and thereafter, a school district is eligible to receive state aid for 50 percent of the total actual cost of attorney fees it incurs in appealing to a court of competent jurisdiction the findings, conclusions, and order of a due process hearing under section 120.17, subdivision 3b, paragraphs (e), (h) and (i). The district is eligible for reimbursement under this paragraph only if the commissioner authorizes the reimbursement after evaluating the merits of the case. In a case where the commissioner is a named party in the litigation, the commissioner of the bureau of mediation services shall make the determination regarding reimbursement. The commissioner's decision is final.

(d) The commissioner shall provide districts with a form on which to annually report litigation costs under this section and shall base aid estimates on those reports.

Sec. 27. Minnesota Statutes 1997 Supplement, section 124.3201, subdivision 2, is amended to read:

Subd. 2. [SPECIAL EDUCATION BASE REVENUE.] (a) 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 fiscal year, whether the person is employed by one or more districts or a Minnesota correctional facility operating on a fee-for-service basis;

(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;

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(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, or a Minnesota correctional facility operating on a fee-for-service basis, but not to exceed an average of $47 in any one school year for each child with a disability receiving instruction;

(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; and

(7) for fiscal years 1999 and later, the cost of providing transportation services for children with disabilities under section 124.225, subdivision 1, paragraph (b), clause (4).

(b) If requested by a school district operating a special education program during the base year for less than the full school fiscal year, or a school district in which is located a Minnesota correctional facility operating on a fee-for-service basis for less than the full fiscal year, the commissioner may adjust the base revenue to reflect the expenditures that would have occurred during the base year had the program been operated for the full school fiscal year.

(c) Notwithstanding paragraphs (a) and (b), the portion of a school district's base revenue attributable to a Minnesota correctional facility operating on a fee-for-service basis during the facilities first year of operating on a fee-for-service basis shall be computed using current year data.

Sec. 28. Minnesota Statutes 1996, section 124.323, is amended by adding a subdivision to read:

Subd. 4. [TUITION.] Notwithstanding section 120.17, for children who are nonresidents of Minnesota, receive services under section 124.3201, subdivisions 1 and 2, and are placed in the serving school district by court action, the serving school district shall submit unreimbursed tuition bills for eligible services to the department of children, families, and learning instead of the resident school district. To be eligible for reimbursement, the serving school district, as part of its child intake procedures, must demonstrate good faith effort to obtain from the placing agency a financial commitment to pay tuition costs.

Sec. 29. Minnesota Statutes 1996, section 124A.034, subdivision 2, is amended to read:

Subd. 2. [LOCATION OF SERVICES.] (a) Public school programs that provide instruction in core curriculum may be provided to shared time pupils only at a public school building; provided, however, that special instruction and services for children with a disability required pursuant to section 120.17 may also be provided at a neutral site as defined in section 123.932, public school programs, excluding programs that provide instruction in core curriculum, may be provided to shared time pupils at a public school building, a neutral site, the nonpublic school, or any other suitable location. Guidance and counseling and diagnostic and health services required pursuant to under section 120.17 may also be provided at a nonpublic school building. As used in this subdivision, "diagnostic services" means speech, hearing, vision, psychological, medical and dental diagnostic services and "health services" means physician, nursing or optometric services provided to pupils in the field of physical and mental health.

(b) For those children with a disability under section 120.17 who attend nonpublic school at their parent's choice, a school district may provide special instruction and services at the nonpublic school building, a public school, or at a neutral site other than a nonpublic school as defined in section 123.932, subdivision 9. The school district shall determine the location at which to provide services on a student-by-student basis, consistent with federal law.

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Sec. 30. Minnesota Statutes 1996, section 124A.036, subdivision 1a, is amended to read:

Subd. 1a. [REPORTING; REVENUE FOR HOMELESS.] For all school purposes, unless otherwise specifically provided by law, a homeless pupil must be considered is a resident of the school district that enrolls the pupil in which the homeless shelter or other program, center, or facility assisting the homeless pupil or the pupil's family is located.

Sec. 31. Minnesota Statutes 1996, section 124A.036, is amended by adding a subdivision to read:

Subd. 1b. [REVENUE FOR CHILDREN OF DIVORCED PARENTS.] (a) In those instances when the divorced parents share joint physical custody of the child and the divorced parents reside in different school districts, for all school purposes, unless otherwise specifically provided by law, the child must be considered a resident of the school district, as indicated by the child's parents.

(b) When the child of divorced parents under paragraph (a) resides with each parent on alternate weeks, the parents shall be responsible for the transportation of the child to the border of the resident school district during those weeks when the child resides in the nonresident school district.

Sec. 32. Minnesota Statutes 1996, section 124A.036, subdivision 4, is amended to read:

Subd. 4. [STATE AGENCY AND COURT PLACEMENTS.] If a state agency or a court of the state desires to place a child in a school district which is not the child's district of residence or to place a pupil who is a parent under section 120.101, subdivision 3, in a school district which is not the school district in which the pupil's biological or adoptive parent or designated guardian resides, that agency or court shall, prior to placement, allow the district of residence an opportunity to participate in the placement decision and notify the district of residence, the district of attendance and the commissioner of children, families, and learning of the placement decision. When a state agency or court determines that an immediate emergency placement is necessary and that time does not permit district participation in the placement decision or notice to the districts and the commissioner of children, families, and learning of the placement decision prior to the placement, the agency or court may make the decision and placement without that participation or prior notice. The agency or court shall notify the district of residence, the district of attendance and the commissioner of children, families, and learning of an emergency placement within 15 days of the placement.

Sec. 33. Minnesota Statutes 1996, section 124C.45, subdivision 2, is amended to read:

Subd. 2. [ACCESS TO SERVICES.] A center shall have access to the district's regular education programs, special education programs, technology facilities, and staff. It may contract with individuals or post-secondary institutions. It shall seek the involvement of community education programs, post-secondary institutions, interagency collaboratives, community resources, businesses, and other federal, state, and local public agencies.

Sec. 34. Minnesota Statutes 1997 Supplement, section 124C.46, subdivision 1, is amended to read:

Subdivision 1. [PROGRAM FOCUS.] (a) The programs and services of a center must focus on academic and learning skills, applied learning opportunities, trade and vocational skills, work-based learning opportunities, work experience, youth service to the community, and transition services. Applied learning, work-based learning, and service learning may best be developed in collaboration with a local education and transitions partnership. In addition to offering programs, the center shall coordinate the use of other available educational services, special education services, social services, health services, and post-secondary institutions in the community and services area.

(b) Consistent with the requirements of section 127.26 to 127.39, a school district may provide an alternative education program for a student who is within the compulsory attendance age under section 120.06, and who is involved in severe or repeated disciplinary action.

Sec. 35. Minnesota Statutes 1997 Supplement, section 124C.46, subdivision 2, is amended to read:

Subd. 2. [PEOPLE TO BE SERVED.] A center shall provide programs for secondary pupils and adults. A center may also provide programs and services for elementary and secondary pupils who are not attending the center to assist them in being successful in school. An individual education plan team may identify a center as an appropriate placement to the

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extent a center can provide the student with the appropriate special education services described in the student's plan. Pupils eligible to be served are those age five to adults 21 22 and older who qualify under the graduation incentives program in section 126.22, subdivision 2, or those pupils who are eligible to receive special education services under section 120.17.

Sec. 36. Minnesota Statutes 1996, section 124C.47, is amended to read:

124C.47 [RESOURCE CENTER FOR OTHER PROGRAMS.]

An area learning center must serve as a resource for other districts, educational, community, and business organizations. The center may charge a fee for these services. The following services shall be provided for a region or the state:

(1) information and research for alternative programs;

(2) regional or state workshops on awareness, identification, programs, and support for these pupils; and

(3) recommendations for staff qualifications to ensure the most qualified staff can be selected for the programs; and

(4) recommendations for successful learning programs for special education students placed in an alternative setting.

Sec. 37. Minnesota Statutes 1996, section 124C.48, is amended by adding a subdivision to read:

Subd. 3. [SPECIAL EDUCATION REVENUE.] Payment of special education revenue for nonresident pupils enrolled in the center must be made according to section 120.17, subdivision 6.

Sec. 38. Minnesota Statutes 1996, section 126.237, is amended to read:

126.237 [ALTERNATE INSTRUCTION REQUIRED.]

(a) Before a pupil is referred for a special education assessment, the district must conduct and document at least two instructional strategies, alternatives, or interventions while the pupil is in the regular classroom. The pupil's teacher must provide the documentation. A special education assessment team may waive this requirement when they determine the pupil's need for the assessment is urgent. This section may not be used to deny a pupil's right to a special education assessment.

(b) A school district shall use alternative intervention services, including the assurance of mastery program under section 124.3111 and the supplemental early education program under section 124.2613, to serve at-risk students who demonstrate a need for alternative instructional strategies or interventions.

Sec. 39. Minnesota Statutes 1996, section 127.27, subdivision 2, is amended to read:

Subd. 2. [DISMISSAL.] "Dismissal" means the denial of the appropriate current educational program to any pupil, including exclusion, expulsion, and suspension. It does not include removal from class.

Sec. 40. Minnesota Statutes 1997 Supplement, section 127.27, subdivision 10, is amended to read:

Subd. 10. [SUSPENSION.] "Suspension" means an action by the school administration, under rules promulgated by the school board, prohibiting a pupil from attending school for a period of no more than ten school days. If a suspension is longer than five days, the suspending administrator must provide the superintendent with a reason for the longer suspension. This definition does not apply to dismissal from school for one school day or less, except as provided in federal law for a student with a disability. Each suspension action shall may include a readmission plan. The readmission plan shall include, where appropriate, a provision for implementing alternative educational services upon readmission and may not be used to extend the current suspension. The school administration may not impose consecutive suspensions against the same pupil for the same course of conduct, or incident of misconduct, except where the pupil will create an immediate and substantial danger to self or to surrounding persons or property, or where the district is in the process of

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initiating an expulsion, in which case the school administration may extend the suspension up to a total of 15 days. In the case of a pupil with a disability, a suspension may not exceed ten school days school districts must comply with applicable federal law. The school administration shall implement alternative educational services to the extent that when the suspension exceeds five days. A separate administrative conference is required for each period of suspension.

Sec. 41. Minnesota Statutes 1997 Supplement, section 127.27, subdivision 11, is amended to read:

Subd. 11. [ALTERNATIVE EDUCATIONAL SERVICES.] "Alternative educational services" may include, but are not limited to, special tutoring, modified curriculum, modified instruction, other modifications or adaptations, instruction through electronic media, special education services as indicated by appropriate assessment, homebound instruction, supervised homework, or enrollment in another district or in an alternative learning center under section 124C.45 selected to allow the pupil to progress toward meeting graduation standards under section 121.11, subdivision 7c, although in a different setting.

Sec. 42. Minnesota Statutes 1997 Supplement, section 127.31, subdivision 15, is amended to read:

Subd. 15. [ADMISSION OR READMISSION PLAN.] A school administrator shall prepare and enforce an admission or readmission plan for any pupil who is suspended, excluded, or expelled from school. The plan may include measures to improve the pupil's behavior and require parental involvement in the admission or readmission process, and may indicate the consequences to the pupil of not improving the pupil's behavior.

Sec. 43. Minnesota Statutes 1997 Supplement, section 127.32, is amended to read:

127.32 [APPEAL.]

A party to an exclusion or expulsion decision made under sections 127.26 to 127.39 may appeal the decision to the commissioner of children, families, and learning within 21 calendar days of school board action. Upon being served with a notice of appeal, the district shall provide the commissioner and the parent or guardian with a complete copy of the hearing record within five days of its receipt of the notice of appeal. All written submissions by the appellant must be submitted and served on the respondent within ten days of its actual receipt of the transcript. All written submissions by the respondent must be submitted and served on the appellant within ten days of its actual receipt of the written submissions of the appellant. The decision of the school board must be implemented during the appeal to the commissioner.

In an appeal under this section, the commissioner may affirm the decision of the agency, may remand the decision for additional findings, or may reverse or modify the decision if the substantial rights of the petitioners may have been prejudiced because the administrative findings, inferences, conclusions, or decisions are:

(1) in violation of constitutional provisions;

(2) in excess of the statutory authority or jurisdiction of the school district;

(3) made upon unlawful procedure, except as provided in section 127.311;

(4) affected by other error of law;

(5) unsupported by substantial evidence in view of the entire record submitted; or

(6) arbitrary or capricious.

The commissioner or the commissioner's representative shall make a final decision based upon the record of evidence presented at the hearing. The commissioner shall issue a decision within 30 calendar days of receiving the entire record and the parties' written submission on appeal. The commissioner's decision shall be final and binding upon the parties after the time for appeal expires under section 127.33.

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Sec. 44. Minnesota Statutes 1997 Supplement, section 127.36, subdivision 1, is amended to read:

Subdivision 1. [EXCLUSIONS AND EXPULSIONS.] The school board shall report each exclusion or expulsion within 30 days of the effective date of the action to the commissioner of children, families, and learning. This report shall include a statement of alternative educational services given the pupil before beginning exclusion or expulsion proceedings, and the reason for, the effective date, and the duration of the exclusion or expulsion.

Sec. 45. Minnesota Statutes 1997 Supplement, section 127.38, is amended to read:

127.38 [POLICIES TO BE ESTABLISHED.]

(a) The commissioner of children, families, and learning shall promulgate guidelines to assist each school board. Each school board shall establish uniform criteria for dismissal and adopt written policies and rules to effectuate the purposes of sections 127.26 to 127.39. The policies shall emphasize preventing dismissals through early detection of problems and shall be designed to address students' inappropriate behavior from recurring. The policies shall recognize the continuing responsibility of the school for the education of the pupil during the dismissal period. The alternative educational services, if the pupil wishes to take advantage of them, must be adequate to allow the pupil to make progress towards meeting the graduation standards adopted under section 121.11, subdivision 7c, and help prepare the pupil for readmission.

(b) An area learning center under section 124C.45 may not prohibit an expelled or excluded pupil from enrolling solely because a district expelled or excluded the pupil. The board of the area learning center may use the provisions of The Pupil Fair Dismissal Act to exclude a pupil or to require an admission plan.

(c) The commissioner shall actively encourage and assist school districts to cooperatively establish alternative educational services within school buildings or at alternative program sites that offer instruction to pupils who are dismissed from school for willfully engaging in dangerous, disruptive, or violent behavior, including for possessing a firearm in a school zone.

Sec. 46. Minnesota Statutes 1996, section 256B.0625, subdivision 26, is amended to read:

Subd. 26. [SPECIAL EDUCATION SERVICES.] Medical assistance covers medical services identified in a recipient's individualized education plan and covered under the medical assistance state plan. The services may be provided by a Minnesota school district that is enrolled as a medical assistance provider or its subcontractor, and only if the services meet all the requirements otherwise applicable if the service had been provided by a provider other than a school district, in the following areas: medical necessity, physician's orders, documentation, personnel qualifications, and prior authorization requirements. Services of a speech-language pathologist provided under this section are covered notwithstanding Minnesota Rules, part 9505.0390, subpart 1, item L, if the person:

(1) holds a masters degree in speech-language pathology;

(2) is licensed by the Minnesota board of teaching as an educational speech-language pathologist; and

(3) either has a certificate of clinical competence from the American Speech and Hearing Association, has completed the equivalent educational requirements and work experience necessary for the certificate or has completed the academic program and is acquiring supervised work experience to qualify for the certificate. Medical assistance coverage for medically necessary services provided under other subdivisions in this section may not be denied solely on the basis that the same or similar services are covered under this subdivision.

Sec. 47. Laws 1993, chapter 224, article 3, section 32, is amended to read:

Sec. 32. [ASL GUIDELINES.]

(a) In determining appropriate licensure requirements for teachers of deaf and hard of hearing students under Minnesota Statutes, section 125.189, the board of teaching shall develop the requirements according to the guidelines described in this section.

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(b) Each teacher must complete the American sign language sign communication proficiency interview or a comparable American sign language evaluation that the board of teaching, the Minnesota association of deaf citizens, and the Minnesota council for the hearing impaired accept as a means for establishing the teacher's baseline level of American sign language skills. A teacher shall not be charged for this evaluation.

(c) Each teacher must complete 60 continuing education credits in American sign language, American sign language linguistics, or deaf culture for every 120 continuing education credits the teacher is required to complete to renew a teaching license.

(d) As a condition of obtaining In order to obtain an initial license to teach deaf and hard of hearing students, or to apply for a Minnesota teaching license, after being licensed to teach in another state, a person must demonstrate in the sign communication proficiency interview an intermediate plus level of proficiency in American sign language.

(e) Each teacher applying to renew a teaching license and each teacher holding a teaching license from another state who wishes to apply for a Minnesota teaching license must take the American sign language sign communication proficiency interview or a comparable American sign language evaluation every five years until the teacher demonstrates a minimum, or survival plus, level of proficiency in American sign language.

(f) A teacher working directly with students whose primary language is American sign language should demonstrate at least an advanced level of proficiency in American sign language. The board should not consider a minimum, or survival plus, level of proficiency adequate for providing direct instruction to students whose primary language is American sign language.

(g) To renew a teaching license, a teacher must comply with paragraphs (c) and (e) in addition to other applicable board requirements. A teacher's ability to demonstrate a minimum, or survival plus, level of proficiency in American sign language is not a condition for renewing the teacher's license.

(h) A teacher who demonstrates an increased proficiency in American sign language skill in the American sign language sign communication proficiency interview or a comparable American sign language evaluation shall receive credit toward completing the requirements of paragraph (c). The number of continuing education credits the teacher receives is based on the teacher's increased level of proficiency from the teacher's baseline level:

(1) 35 continuing education credits for demonstrating an intermediate level of proficiency;

(2) 40 continuing education credits for demonstrating an intermediate plus level of proficiency;

(3) 45 continuing education credits for demonstrating an advanced level of proficiency;

(4) 50 continuing education credits for demonstrating an advanced plus level of proficiency;

(5) 55 continuing education credits for demonstrating a superior level of proficiency; and

(6) 60 continuing education credits for demonstrating a superior plus level of proficiency.

Sec. 48. Laws 1997, First Special Session chapter 4, article 2, section 51, subdivision 2, is amended to read:

Subd. 2. [AMERICAN INDIAN LANGUAGE AND CULTURE PROGRAMS.] For grants to American Indian language and culture education programs according to Minnesota Statutes, section 126.54, subdivision 1:

$591,000 . . . . . 1998

$591,000 $716,000 . . . . . 1999

The 1998 appropriation includes $59,000 for 1997 and $532,000 for 1998.

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The 1999 appropriation includes $59,000 for 1998 and $532,000 $657,000 for 1999.

Any balance in the first year does not cancel but is available in the second year.

Sec. 49. Laws 1997, First Special Session chapter 4, article 2, section 51, subdivision 4, is amended to read:

Subd. 4. [AMERICAN INDIAN POST-SECONDARY PREPARATION GRANTS.] For American Indian post-secondary preparation grants according to Minnesota Statutes, section 124.481:

$857,000 . . . . . 1998

$857,000 $982,000 . . . . . 1999

Any balance in the first year does not cancel but is available in the second year.

Sec. 50. Laws 1997, First Special Session chapter 4, article 2, section 51, subdivision 5, is amended to read:

Subd. 5. [AMERICAN INDIAN SCHOLARSHIPS.] For American Indian scholarships according to Minnesota Statutes, section 124.48:

$1,600,000 . . . . . 1998

$1,600,000 $1,875,000 . . . . . 1999

Any balance in the first year does not cancel but is available in the second year.

Sec. 51. Laws 1997, First Special Session chapter 4, article 2, section 51, subdivision 25, is amended to read:

Subd. 25. [MATCHING GRANTS FOR EDUCATION PROGRAMS SERVING HOMELESS CHILDREN.] For matching grants for education programs for homeless children:

$400,000 $1,100,000 . . . . . 1998

This appropriation is available until June 30, 1999.

Sec. 52. Laws 1997, First Special Session chapter 4, article 2, section 51, subdivision 29, is amended to read:

Subd. 29. [FIRST GRADE PREPAREDNESS.] (a) For grants for the first grade preparedness program under Minnesota Statutes, section 124.2613, and for school sites that have provided a full-day kindergarten option for kindergarten students enrolled in fiscal years 1996 and 1997:

$5,000,000 . . . . . 1998

$5,000,000 $6,500,000 . . . . . 1999

(b) To be a qualified site, licensed teachers must have taught the optional full-day kindergarten classes. A district that charged a fee for students participating in an optional full-day program is eligible to receive the grant to provide full-day kindergarten for all students as required by Minnesota Statutes, section 124.2613, subdivision 4. Districts with eligible sites must apply to the commissioner of children, families, and learning for a grant.

(c) This appropriation must first be used to fund programs operating during the 1996-1997 school year under paragraph (b) and Minnesota Statutes, section 124.2613. Any remaining funds may be used to expand the number of sites providing first grade preparedness programs.

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Sec. 53. [RULES AFFECTING SPECIAL EDUCATION INSTRUCTION AND SERVICES.]

(a) The state board of education must amend all rules relating to providing special instruction and services to children with a disability so that the rules do not impose requirements that exceed federal law. Consistent with the report from the commissioner to compare federal and state special education law, the state board may use the expedited process under Minnesota Statutes 1997, section 14.389, to amend these rules.

(b) As of July 1, 1999, any rules relating to providing special instruction and services to children with a disability are invalid to the extent they exceed the requirements in federal law unless a law is enacted before July 1, 1999, indicating the intent of the state to exceed one or more federal requirements.

Sec. 54. [REPORT TO COMPARE FEDERAL AND STATE SPECIAL EDUCATION LAW.]

Subdivision 1. [REPORT.] The commissioner of children, families, and learning shall prepare a report comparing existing and currently proposed federal laws and regulations and state laws and rules governing special education, indicating those state laws and rules governing special education that exceed or expand upon minimum requirements under federal special education law or regulations. The commissioner shall make the report available by September 30, 1998, to the public, the state board of education, and the education committees of the legislature for consideration of amending state rules.

Sec. 55. [SPEECH-LANGUAGE PATHOLOGISTS.]

The board of teaching shall allow individuals who hold a certificate of clinical competence from the American Speech-Language-Hearing Association to be licensed as speech-language pathologists.

Sec. 56. [BOARD OF TEACHING; RULE CHANGES; SPEECH-LANGUAGE SERVICES.]

The board of teaching, in order to comply with section 55, shall by rule allow individuals who hold a certificate of clinical competence from the American Speech-Language-Hearing Association to be licensed as speech-language pathologists.

Sec. 57. [IN-SCHOOL BEHAVIOR INTERVENTION GRANTS.]

Subdivision 1. [ESTABLISHMENT.] The commissioner of children, families, and learning shall award grants to develop, adapt, implement, or evaluate discipline programs that prevent behavior that leads to suspensions or expulsions and that provide students with an alternative education setting within the school or program site. A grant recipient must be a school site, school district, charter school, or provider of an alternative education program.

Subd. 2. [EVALUATION.] The commissioner shall evaluate the grant sites to determine the impact of the discipline program on measures of student performance and behavior, including, but not limited to, achievement, attendance, suspensions, expulsions, and the impact on the site, student body, classroom, and school faculty. The commissioner may make recommendations to the education committees of the legislature based on the results of the grant recipients and disseminate information about successful programs to interested schools and school sites.

Sec. 58. [SPECIAL EDUCATION BASE ADJUSTMENT; ROCHESTER.]

Special education revenue for independent school district No. 535, Rochester, is increased by $150,000 for fiscal year 1999 to reflect the increased special education costs associated with the opening of a new facility for juvenile offenders in Olmsted county.

Sec. 59. [DEPARTMENT OF HUMAN SERVICES.]

The department of human services shall report to the legislature on January 15 for the years 1999, 2000, and 2001, the medical assistance MinnesotaCare reimbursed costs of special education services, which are covered services under Minnesota Statutes, chapter 256B. If the November 1998 forecast for the state medical assistance expenditures for special

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education services which are covered services under Minnesota Statutes, chapter 256B, exceeds $8,000,000 per year, the department of children, families, and learning must develop a plan to allocate additional resources to cover the excess costs.

Sec. 60. [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 years designated.

Subd. 2. [IN-SCHOOL BEHAVIOR INTERVENTION GRANTS.] For grants to develop, implement, and evaluate school discipline policies under section 57:

$300,000 . . . . . 1999

Grant recipients may expend grant proceeds over a three-year period. Of this amount, $13,500 is for performing an evaluation.

Subd. 3. [STATEWIDE THIRD-PARTY BILLING SYSTEM; TECHNICAL ASSISTANCE.] For developing and implementing an effective and efficient statewide third-party billing system under section 2:

$200,000 . . . . . 1999

Funds remain available until expended.

Subd. 4. [LITIGATION COSTS.] For paying the litigation costs a district actually incurs under section 26:

$500,000 . . . . . 1999

If the amount appropriated is insufficient to fully fund the aid for hearing and litigation costs and attorney fees under Minnesota Statutes, section 124.32, subdivision 13, paragraph (b), the commissioner shall prorate the appropriation to school districts based on the amount of aid calculated for each district.

Subd. 5. [PROVIDING TECHNICAL ASSISTANCE.] For department staff to provide technical assistance and training to school districts and cooperative units under section 2:

$50,000 . . . . . 1999

Subd. 6. [COURT-PLACED SPECIAL EDUCATION REVENUE.] For reimbursing serving school districts for unreimbursed eligible expenditures attributable to children placed in the serving school district by court action under Minnesota Statutes, section 124.323:

$350,000 . . . . . 1999

Subd. 7. [SPECIAL EDUCATION ADJUSTMENT; ROCHESTER.] For a special education revenue adjustment for independent school district No. 535, Rochester, according to section 58:

$ 135,000 . . . . . 1999

Sec. 61. [APPROPRIATION.]

Subdivision 1. [DEPARTMENT OF HUMAN SERVICES.] The sums indicated in this section are appropriated from the general fund to the department of human services for the fiscal years designated.

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Subd. 2. [PROVIDING TECHNICAL ASSISTANCE.] For technical assistance and training under section 2:

$50,000 . . . . . 1999

Subd. 3. [MEDICAL ASSISTANCE COSTS.] For additional medical assistance costs associated with state law changes regarding speech-language pathologists in Minnesota Statutes, section 256B.0625, subdivision 26:

$458,000 . . . . 1999

Subd. 4. [MINNESOTACARE COSTS.] For transfer into the health care access fund for the purposes of state law changes regarding speech-language pathologists in Minnesota Statutes, section 256B.0625, subdivision 26:

$93,000 . . . . 1999

Sec. 62. [MEDICAL COST REIMBURSEMENT DESIGNATION.]

For fiscal years 2000 and 2001, the department of children, families, and learning must reimburse the department of human services for medical assistance and MinnesotaCare costs associated with state law changes regarding the speech-language pathologists in Minnesota Statutes, section 256B.0625, subdivision 26.

Sec. 63. [REPEALER.]

Minnesota Rules, part 3525.2750, subpart 1, item B, is repealed.

Sec. 64. [EFFECTIVE DATES.]

(a) Sections 2, 9, 25, 42, 43, 44, 45, 46, 48, 49, 50, 53, 55, and 56, are effective the day following final enactment.

(b) Section 14 is effective July 1, 1999.

ARTICLE 3

INTERAGENCY SERVICE; LIFELONG LEARNING; TECHNOLOGY

Section 1. Minnesota Statutes 1996, section 120.1701, subdivision 5, is amended to read:

Subd. 5. [INTERAGENCY EARLY INTERVENTION COMMITTEES.] (a) A school district, group of districts, or special education cooperative, in cooperation with the health and human service agencies located in the county or counties in which the district or cooperative is located, shall establish an interagency early intervention committee for children with disabilities under age five and their families under this section, and for children with disabilities ages three to 22 consistent with the requirements under sections 120.1703 and 120.1705. Committees shall include representatives of local and regional health, education, and county human service agencies; county boards; school boards; early childhood family education programs; parents of young children with disabilities under age 12; current service providers; and may also include representatives from other private or public agencies and school nurses. The committee shall elect a chair from among its members and shall meet at least quarterly.

(b) The committee shall develop and implement interagency policies and procedures concerning the following ongoing duties:

(1) develop public awareness systems designed to inform potential recipient families of available programs and services;

(2) implement interagency child find systems designed to actively seek out, identify, and refer infants and young children with, or at risk of, disabilities and their families;

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(3) establish and evaluate the identification, referral, child and family assessment systems, procedural safeguard process, and community learning systems to recommend, where necessary, alterations and improvements;

(4) assure the development of individualized family service plans for all eligible infants and toddlers with disabilities from birth through age two, and their families, and individual education plans and individual service plans when necessary to appropriately serve children with disabilities, age three and older, and their families and recommend assignment of financial responsibilities to the appropriate agencies. Agencies are encouraged to develop individual family service plans for children with disabilities, age three and older;

(5) implement a process for assuring that services involve cooperating agencies at all steps leading to individualized programs;

(6) facilitate the development of a transitional plan if a service provider is not recommended to continue to provide services;

(7) identify the current services and funding being provided within the community for children with disabilities under age five and their families;

(8) develop a plan for the allocation and expenditure of additional state and federal early intervention funds under United States Code, title 20, section 1471 et seq. (Part H, Public Law Number 102-119) and United States Code, title 20, section 631, et seq. (Chapter I, Public Law Number 89-313); and

(9) develop a policy that is consistent with section 13.05, subdivision 9, and federal law to enable a member of an interagency early intervention committee to allow another member access to data classified as not public.

(c) The local committee shall also:

(1) participate in needs assessments and program planning activities conducted by local social service, health and education agencies for young children with disabilities and their families;

(2) review and comment on the early intervention section of the total special education system for the district, the county social service plan, the section or sections of the community health services plan that address needs of and service activities targeted to children with special health care needs, and the section of the maternal and child health special project grants that address needs of and service activities targeted to children with chronic illness and disabilities; and

(3) prepare a yearly summary on the progress of the community in serving young children with disabilities, and their families, including the expenditure of funds, the identification of unmet service needs identified on the individual family services plan and other individualized plans, and local, state, and federal policies impeding the implementation of this section.

(d) The summary must be organized following a format prescribed by the commissioner of the state lead agency and must be submitted to each of the local agencies and to the state interagency coordinating council by October 1 of each year.

The departments of children, families, and learning, health, and human services must provide assistance to the local agencies in developing cooperative plans for providing services.

Sec. 2. [120.1703] [COORDINATED INTERAGENCY SERVICES.]

Subdivision 1. [CITATION.] Sections 120.1703 and 120.1705 shall be cited as the "Interagency Services for Children with Disabilities Act."

Subd. 2. [PURPOSE.] It is the policy of the state to develop and implement a coordinated, multidisciplinary, interagency intervention service system for children ages three to 22 with disabilities.

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Subd. 3. [DEFINITIONS.] For purposes of sections 120.1703 and 120.1705, the following terms have the meanings given them:

(a) "Health plan" means:

(1) a health plan under section 62Q.01, subdivision 3;

(2) a county-based purchasing plan under section 256B.692;

(3) a self-insured health plan established by a local government under section 471.617; or

(4) self-insured health coverage provided by the state to its employees or retirees.

(b) For purposes of this section, "health plan company" means an entity that issues a health plan as defined in paragraph (a).

(c) "Individual interagency intervention plan" means a standardized written plan describing those programs or services and the accompanying funding sources available to eligible children with disabilities.

(d) "Interagency intervention service system" means a system that coordinates services and programs required in state and federal law to meet the needs of eligible children with disabilities ages three to 22, including:

(1) services provided under the following programs or initiatives administered by state or local agencies:

(i) the maternal and child health program under title V of the Social Security Act, United States Code, title 42, sections 701 to 709;

(ii) the Individuals with Disabilities Education Act under United States Code, title 20, chapter 33, subchapter II, sections 1411 to 1420;

(iii) medical assistance under the Social Security Act, United States Code, title 42, chapter 7, subchapter XIX, section 1396, et seq.;

(iv) the Developmental Disabilities Assistance and Bill of Rights Act, United States Code, title 42, chapter 75, subchapter II, sections 6021 to 6030, Part B;

(v) the Head Start Act, United States Code, title 42, chapter 105, subchapter II, sections 9831 to 9852;

(vi) rehabilitation services provided under chapter 268A;

(vii) juvenile court act services provided under sections 260.011 to 260.301;

(viii) the children's mental health collaboratives under section 245.493;

(ix) the family service collaboratives under section 121.8355;

(x) the family community support plan under section 245.4881, subdivision 4;

(xi) the Minnesota care program under chapter 256L;

(xii) the community health services grants under chapter 145;

(xiii) the community social services act funding under the Social Security Act, United States Code, title 42, sections 1397 to 1397f; and

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(xiv) the community interagency transition committees under section 120.17, subdivision 16;

(2) services provided under a health plan in conformity with an individual family service plan or an individual education plan; and

(3) additional appropriate services that local agencies and counties provide on an individual need basis upon determining eligibility and receiving a request from the interagency early intervention committee and the child's parent.

(e) "Children with disabilities" has the meaning given in section 120.03.

(f) A "standardized written plan" means those individual services or programs available through the interagency intervention service system to an eligible child other than the services or programs described in the child's individual education plan or the child's individual family service plan.

Subd. 4. [STATE INTERAGENCY COMMITTEE.] (a) The governor shall convene an 18-member interagency committee to develop and implement a coordinated, multidisciplinary, interagency intervention service system for children ages three to 22 with disabilities. The commissioners of commerce, children, families, and learning, health, human rights, human services, economic security, and corrections shall each appoint two committee members from their departments; the association of Minnesota counties shall appoint two county representatives, one of whom must be an elected official, as committee members; and the Minnesota school boards association and the school nurse association of Minnesota shall each appoint one committee member. The committee shall select a chair from among its members.

(b) The committee shall:

(1) identify and assist in removing state and federal barriers to local coordination of services provided to children with disabilities;

(2) identify adequate, equitable, and flexible funding sources to streamline these services;

(3) develop guidelines for implementing policies that ensure a comprehensive and coordinated system of all state and local agency services, including multidisciplinary assessment practices for children with disabilities ages three to 22;

(4) develop, consistent with federal law, a standardized written plan for providing services to a child with disabilities;

(5) identify how current systems for dispute resolution can be coordinated and develop guidelines for that coordination;

(6) develop an evaluation process to measure the success of state and local interagency efforts in improving the quality and coordination of services to children with disabilities ages three to 22;

(7) develop guidelines to assist the governing boards of the interagency early intervention committees in carrying out the duties assigned in section 120.1705, subdivision 1, paragraph (b); and

(8) carry out other duties necessary to develop and implement within communities a coordinated, multidisciplinary, interagency intervention service system for children with disabilities.

(c) The committee shall consult on an on-going basis with the state education advisory committee for special education and the governor's interagency coordinating council in carrying out its duties under this section, including assisting the governing boards of the interagency early intervention committees.

Subd. 5. [INTERVENTION DEMONSTRATION PROJECTS.] (a) The commissioner of children, families, and learning, based on recommendations from the state interagency committee, shall issue a request for proposals by January 1, 1999, for grants to the governing boards of interagency intervention committees under section 120.1705 or a combination of one or more counties and school districts to establish five voluntary interagency intervention demonstration projects. One grant shall be used to implement a coordinated service system for all eligible children with disabilities up to age 5 who received services under section 120.1701. One grant shall be used to implement a coordinated service

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system for a population of minority children with disabilities from ages 12 to 22, who may have behavioral problems and are in need of transitional services. Each project must be operational by July 1, 1999. The governing boards of the interagency early intervention committees and the counties and school districts receiving project grants must develop efficient ways to coordinate services and funding for children with disabilities ages three to 22, consistent with the requirements of sections 120.1703 and 120.1705 and the guidelines developed by the state interagency committee under this section.

(b) The state interagency committee shall evaluate the demonstration projects and provide the evaluation results to interagency early intervention committees.

Subd. 6. [THIRD-PARTY LIABILITY.] Nothing in sections 120.1703 and 120.1705 relieves a health plan company, third party administrator or other third-party payer of an obligation to pay for, or changes the validity of an obligation to pay for, services provided to children with disabilities ages three to 22 and their families.

Subd. 7. [AGENCY OBLIGATION.] Nothing in sections 120.1703 and 120.1705 removes the obligation of the state, counties, local school districts, a regional agency, or a local agency or organization to comply with any federal or state law that mandates responsibility for finding, assessing, delivering, assuring, or paying for education or related services for children with disabilities and their families.

Sec. 3. [120.1705] [INTERAGENCY EARLY INTERVENTION COMMITTEE RESPONSIBILITIES.]

Subdivision 1. [ADDITIONAL DUTIES.] (a) The governing boards of the interagency early intervention committees are responsible for developing and implementing interagency policies and procedures to coordinate services at the local level for children with disabilities ages three to 22 under guidelines established by the state interagency committee under section 120.1703, subdivision 4. Consistent with the requirements in sections 120.1703 and 120.1705, the governing boards of the interagency early intervention committees shall organize as a joint powers board under section 471.59 or enter into an interagency agreement that establishes a governance structure.

(b) The governing board of each interagency early intervention committee as defined in section 120.1701, subdivision 5, paragraph (a), which may include a juvenile justice professional, shall:

(1) identify and assist in removing state and federal barriers to local coordination of services provided to children with disabilities;

(2) identify adequate, equitable, and flexible use of funding by local agencies for these services;

(3) implement policies that ensure a comprehensive and coordinated system of all state and local agency services, including multidisciplinary assessment practices, for children with disabilities ages three to 22;

(4) use a standardized written plan for providing services to a child with disabilities developed under section 120.1703;

(5) access the coordinated dispute resolution system and incorporate the guidelines for coordinating services at the local level, consistent with section 120.1703;

(6) use the evaluation process to measure the success of the local interagency effort in improving the quality and coordination of services to children with disabilities ages three to 22 consistent with section 120.1703;

(7) develop a transitional plan for children moving from the interagency early childhood intervention system under section 120.1701 into the interagency intervention service system under this section;

(8) coordinate services and facilitate payment for services from public and private institutions, agencies, and health plan companies; and

(9) share needed information consistent with state and federal data practices requirements.

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Subd. 2. [SERVICES.] (a) Parents, physicians, other health care professionals including school nurses, and education and human services providers jointly must determine appropriate and necessary services for eligible children with disabilities ages three to 22. The services provided to the child under this section must conform with the child's standardized written plan. The governing board of an interagency early intervention committee must provide those services contained in a child's individual education plan and those services for which a legal obligation exists.

(b) Nothing in section 120.1703 or 120.1705 increases or decreases the obligation of the state, county, regional agency, local school district, or local agency or organization to pay for education, health care, or social services.

(c) A health plan may not exclude any medically necessary covered service solely because the service is or could be identified in a child's individual family service plan, individual education plan, a plan established under section 504 of the federal Rehabilitation Act of 1973, or a student's individual health plan. This paragraph reaffirms the obligation of a health plan company to provide or pay for certain medically necessary covered services, and encourages a health plan company to coordinate this care with any other providers of similar services. Also, a health plan company may not exclude from a health plan any medically necessary covered service such as an assessment or physical examination solely because the resulting information may be used for an individual education plan or a standardized written plan.

Subd. 3. [IMPLEMENTATION TIMELINE.] By July 1, 2000, all governing boards of interagency early intervention committees statewide must implement a coordinated service system for children up to age five with disabilities consistent with the requirements of sections 120.1703 and 120.1705 and the evaluation results from the demonstration projects under section 120.1703, subdivision 5. Children with disabilities up to the age of 22 shall be eligible for coordinated services and their eligibility to receive such services under this section shall be phased-in over a four-year period as follows:

(1) July 1, 2001, children up to age nine become eligible;

(2) July 1, 2002, children up to age 14 become eligible; and

(3) July 1, 2003, children up to age 22 become eligible.

Sec. 4. Minnesota Statutes 1997 Supplement, section 126.79, subdivision 3, is amended to read:

Subd. 3. [LOCAL PROGRAMS; APPLICATION PROCEDURE; GRANT AWARDS.] The commissioner shall make grants to eligible applicants to establish local learn and earn programs. Each program shall operate for at least a four-year period. A local program shall select its participants from among eligible students who are entering or are in the ninth grade at the inception of the program. A program may not refill a program slot with another student if a student drops out of the program. Students selected to participate in the program shall be considered part of the program class and students who drop out may return to the program at any time prior to graduation.

The commissioner shall establish the application procedure for awarding grants under this section. The commissioner shall begin awarding grants by September 1, 1997 May 1, 1998.

Sec. 5. Minnesota Statutes 1997 Supplement, section 126.79, subdivision 6, is amended to read:

Subd. 6. [PROGRAM COMPONENTS.] Each learn and earn graduation achievement program must provide the opportunity for participating students to complete:

(1) 250 hours each year, not including regular required classroom hours, in basic education competency skills;

(2) 250 hours each year of service to the community service; and

(3) 250 hours each year of cultural enrichment and personal development, including but not limited to adult mentoring; participating in community cultural events; developing life skills for use in the home, workplace, and community; and learning to set goals, manage time, and make appropriate behavior choices for varying social situations.

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Sec. 6. Minnesota Statutes 1997 Supplement, section 126.79, subdivision 7, is amended to read:

Subd. 7. [PROGRAM INCENTIVES.] (a) Each participating student shall receive a monetary stipend for each hour spent in a program component activity, plus a bonus upon completion of each component during each year of the program.

(b) An additional amount equal to or greater than each student's earned stipends and bonuses must be deposited for the student in a post-secondary opportunities interest-bearing account, established by the commissioner through the higher education services office. A student may, upon graduation from high school, use the funds accumulated for the student toward the costs, including tuition, books, and lab fees, of attending a Minnesota post-secondary institution or participating in a Minnesota post-secondary program in a career training program. Funds accumulated for a student shall be available to the student from the time the student graduates from high school until ten years after the date the student entered the learn and earn graduation achievement program. After ten years, the commissioner shall close the student's account and any remaining money in the account shall revert to the general fund.

The commissioner shall establish a procedure for providing the monetary stipends and bonuses to students. The commissioner may delegate this authority to grantees.

Sec. 7. Minnesota Statutes 1997 Supplement, section 126.79, subdivision 8, is amended to read:

Subd. 8. [PROGRAM COORDINATOR.] The local learn and earn program coordinator must maintain contact with all participating students and their families; work with the school to link students with the resources needed to improve their educational skills; arrange for service to the community service and cultural enrichment opportunities for students; maintain records regarding student completion of program component hours; and perform other administrative duties as necessary. A program coordinator must, to the extent possible, agree to remain with the program for four years to provide continuity of adult contact to the participating students.

Sec. 8. Minnesota Statutes 1997 Supplement, section 126.79, subdivision 9, is amended to read:

Subd. 9. [EVALUATION AND REPORTS.] The commissioner shall collect information about participating students and a demographically similar control group and shall evaluate the short-term and long-term benefits participating students receive from the learn and earn graduation achievement program, based on the outcome measures specified in subdivision 2, and any other criteria established by the commissioner as part of the grant application process. The evaluation must include a statistical comparison of students participating in the program and the control group. The commissioner shall track follow participating students and the control group for a minimum of six years from the start of the program. The commissioner shall submit a preliminary report to the governor and the chairs of the senate and house committees having jurisdiction over education and crime prevention by December 15, 2000 2001, regarding continuation of the learn and earn graduation achievement program for participating schools and expansion of the program to additional schools. The commissioner shall submit a final report by December 15, 2002 2003.

Sec. 9. Minnesota Statutes 1997 Supplement, section 268.665, subdivision 2, is amended to read:

Subd. 2. [MEMBERSHIP.] The governor's workforce development council is composed of 33 members appointed by the governor. The members may be removed pursuant to section 15.059. In selecting the representatives of the council, the governor shall ensure that 50 percent of the members come from nominations provided by local workforce councils. Local education representatives shall come from nominations provided by local education to employment partnerships. The 32 33 members shall represent the following sectors:

(a) State agencies: the following individuals shall serve on the council:

(1) commissioner of the Minnesota department of economic security;

(2) commissioner of the Minnesota department of children, families, and learning;

(3) commissioner of the Minnesota department of human services; and

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(4) commissioner of the Minnesota department of trade and economic development.

(b) Business and industry: six individuals shall represent the business and industry sectors of Minnesota.

(c) Organized labor: six individuals shall represent labor organizations of Minnesota.

(d) Community-based organizations: four individuals shall represent community-based organizations of Minnesota. Community-based organizations are defined by the Job Training Partnership Act as private nonprofit organizations that are representative of communities or significant segments of communities and that provide job training services, agencies serving youth, agencies serving individuals with disabilities, agencies serving displaced homemakers, union-related organizations, and employer-related nonprofit organizations and organizations serving nonreservation Indians and tribal governments.

(e) Education: six individuals shall represent the education sector of Minnesota as follows:

(1) one individual shall represent local public secondary education;

(2) one individual shall have expertise in design and implementation of school-based service-learning;

(3) one individual shall represent post-secondary education;

(4) one individual shall represent secondary/post-secondary vocational institutions;

(5) the chancellor of the board of trustees of the Minnesota state colleges and universities; and

(6) one individual shall have expertise in agricultural education.

(f) Other: two individuals shall represent other constituencies including:

(1) units of local government; and

(2) applicable state or local programs.

The speaker and the minority leader of the house of representatives shall each appoint a representative to serve as an ex officio member of the council. The majority and minority leaders of the senate shall each appoint a senator to serve as an ex officio member of the council. After January 1, 1997, the Minnesota director of the corporation for national service shall also serve as an ex officio member.

(g) Appointment: each member shall be appointed for a term of three years from the first day of January or July immediately following their appointment. Elected officials shall forfeit their appointment if they cease to serve in elected office.

(h) Members of the council are compensated as provided in section 15.059, subdivision 3.

Sec. 10. Minnesota Statutes 1996, section 268.665, subdivision 3, is amended to read:

Subd. 3. [PURPOSE; DUTIES.] The governor's workforce development council shall replace the governor's job training council and assume all of its requirements, duties, and responsibilities, under the Job Training Partnership Act, United States Code, title 29, section 1501, et seq. Additionally, the workforce development council shall assume the following duties and responsibilities:

(a) Coordinate the development, implementation, and evaluation of the statewide education and employment transitions system under section 126B.01. Beginning January 1, 1997, the council shall also coordinate the development, implementation, and evaluation of the Minnesota youth services programs under sections 121.704 to 121.709, and the National and Community Services Act of 1993, United States Code, title 42, section 12501, et seq.

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(b) Review the provision of services and the use of funds and resources under applicable federal human resource programs and advise the governor on methods of coordinating the provision of services and the use of funds and resources consistent with the laws and regulations governing the programs. For purposes of this section, applicable federal and state human resource programs mean the:

(1) Job Training Partnership Act, United States Code, title 29, section 1501, et seq.;

(2) Carl D. Perkins Vocational and Applied Technology Education Act, United States Code, title 20, section 2301, et seq.;

(3) National and Community Service Act of 1993, United States Code, title 42, section 12501, et seq.;

(4) Adult Education Act, United States Code, title 20, section 1201, et seq.;

(5) Wagner-Peyser Act, United States Code, title 29, section 49;

(6) Social Security Act, title IV, part F, (JOBS), United States Code, title 42, section 681, et seq.;

(7) Food Stamp Act of 1977, United States Code, title 7, section 6(d)(4), Food Stamp Employment and Training Program, United States Code, title 7, section 2015(d)(4);

(8) programs defined in section 268.0111, subdivisions 4 and 5; and

(9) School to Work Opportunity Act of 1994, Public Law Number 103-239.

Additional federal and state programs and resources can be included within the scope of the council's duties if recommended by the governor after consultation with the council.

(c) Review federal, state, and local education, post-secondary, job skills training, and youth employment programs, and make recommendations to the governor and the legislature for establishing an integrated seamless system for providing education, service-learning, and work skills development services to learners and workers of all ages.

(d) Advise the governor on the development and implementation of statewide and local performance standards and measures relating to applicable federal human resource programs and the coordination of performance standards and measures among programs.

(e) Administer Develop program guidelines and recommend grant approval procedures to the department of children, families, and learning for grants to local education and employment transition partnerships, including implementation grants under section 126B.01, grants for youth apprenticeship programs under section 126B.03, and youth employer grants. Beginning January 1, 1997, administer youthworks grants under sections 121.704 to 121.709; and

(1) coordinate implementation of the education and employment transitions system under section 126B.01;

(2) promote education and employment transitions programs and knowledge and skills of entrepreneurship among employers, workers, youth, and educators, and encourage employers to provide meaningful work-based learning opportunities;

(3) evaluate and identify exemplary education and employment transitions programs and provide technical assistance to local partnerships to replicate the programs throughout the state;

(4) establish a performance-based quality assurance system for consistent statewide evaluation of the performance of the education and employment transitions system at both the state and local level;

(5) conduct an annual review of each local education and employment transitions partnership to ensure it adequately meets the quality assurance standards established as part of the state quality assurance system;

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(6) develop the methods to assess local partnership effectiveness;

(7) annually publish a report on the findings of the evaluations of each local education transitions partnership;

(8) promote knowledge and skills of entrepreneurship among students in kindergarten through grade 12 by sharing information about the ways new business development contributes to a strong economy.

(f) Advise the governor on methods to evaluate applicable federal human resource programs.

(g) Sponsor appropriate studies to identify human investment needs in Minnesota and recommend to the governor goals and methods for meeting those needs.

(h) Recommend to the governor goals and methods for the development and coordination of a human resource system in Minnesota.

(i) Examine federal and state laws, rules, and regulations to assess whether they present barriers to achieving the development of a coordinated human resource system.

(j) Recommend to the governor and to the federal government changes in state or federal laws, rules, or regulations concerning employment and training programs that present barriers to achieving the development of a coordinated human resource system.

(k) Recommend to the governor and to the federal government waivers of laws and regulations to promote coordinated service delivery.

(l) Sponsor appropriate studies and prepare and recommend to the governor a strategic plan which details methods for meeting Minnesota's human investment needs and for developing and coordinating a state human resource system.

Sec. 11. Laws 1997, chapter 157, section 71, is amended to read:

Sec. 71. [SCHOOL BANK PILOT PROJECT.]

(a) A school bank sponsored by independent school district No. 31, Bemidji, or by independent school district No. 508, St. Peter, that meets all requirements of paragraph (b) is not subject to Minnesota Statutes, section 47.03, subdivision 1, or to any other statute or rule that regulates banks, other financial institutions, or currency exchanges.

(b) To qualify under paragraph (a), the school bank must:

(1) be operated as part of a high school educational program and under guidelines adopted by the school board;

(2) be advised on a regular basis by a one or more state-chartered or federally-chartered financial institution institutions, but not owned or operated by that any financial institution;

(3) be located on school premises and have as customers only students enrolled in, or employees of, the school in which it is located; and

(4) have a written commitment from the school board, guaranteeing reimbursement of any depositor's funds lost due to insolvency of the school bank.

(c) Funds of a school bank that meets the requirements of this section are not school district or other public funds for purposes of any state law governing the use or investment of school district or other public funds.

(d) The school district shall annually file with the commissioner of commerce a report, prepared by the students and teachers involved, summarizing the operation of the school bank.

(e) This section expires June 30, 2000. The commissioner of commerce shall, no later than December 15, 1999, provide a written report to the legislature regarding this pilot project and any recommended legislation regarding school banks.

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Sec. 12. Laws 1997, First Special Session chapter 4, article 2, section 51, subdivision 33, is amended to read:

Subd. 33. [LEARN AND EARN GRADUATION ACHIEVEMENT PROGRAM.] For the learn and earn graduation achievement program according to Minnesota Statutes, section 126.79:

$1,000,000 . . . . . 1998

$1,000,000 . . . . . 1999

Any balance in the first year does not cancel but is available in the second year.

At least 95 percent of the appropriation must be used for stipends, educational awards, and program coordination. The remaining five percent of the appropriation may be used for administrative costs.

Sec. 13. Laws 1997, First Special Session chapter 4, article 3, section 23, is amended by adding a subdivision to read:

Subd. 4a. [DESIGN AND IMPLEMENTATION GRANT.] An eligible lifework learning site applicant may apply for a one-time grant to design and implement a lifework learning facility. The design and implementation grant shall not exceed $200,000 for a site.

Sec. 14. Laws 1997, First Special Session chapter 4, article 3, section 25, subdivision 4, is amended to read:

Subd. 4. [EDUCATION AND EMPLOYMENT TRANSITIONS PROGRAM GRANTS.] For education and employment transitions program:

$4,750,000 $4,800,000 . . . . . 1998

$4,750,000 $4,800,000 . . . . . 1999

$500,000 each year is for development of MnCEPs, an Internet-based education and employment information system. These are one-time funds.

$1,225,000 in fiscal year 1998 and $1,250,000 in fiscal year 1999 is for a rebate program for qualifying employers who employ less than 250 employees, who offer youth internships to educators. An employer may apply for a rebate of up to $500 for each paid youth internship and each educator internship, and up to $3,000 for each paid youth apprenticeship. The commissioner shall determine the application and payment process.

$450,000 each year is for youth apprenticeship program grants.

$225,000 each year is for youth entrepreneurship grants under Minnesota Statutes, section 121.72. Of this amount, $25,000 each year is for the high school student entrepreneurship program in independent school district No. 175, Westbrook. This appropriation shall be used for expenses, including, but not limited to, salaries, travel, seminars, equipment purchases, contractual expenses, and other expenses related to the student-run business.

$125,000 each year is for youth employer grants under Laws 1995, First Special Session chapter 3, article 4, section 28.

$150,000 each year is for parent and community awareness training.

$825,000 each year is for the development of career assessment benchmarks, lifework portfolios, industry skill standards, curriculum development, career academies, and career programs for elementary, middle school, and at-risk learners.

$400,000 each year is for state level activities, including the governor's workforce council.

$275,000 each year is for development of occupational information.

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$300,000 each year is for a grant to be made available to a county government that has established school-to-work projects with schools located in a city of the first class. These grants must be used to expand the number of at-risk students participating in these school-to-work projects. Priority must be given to projects that demonstrate collaboration between among private and public employers, collective bargaining representatives, school officials, and the county government and which prepare at-risk students for long-term employment with private sector employers paying a minimum of 150 percent of the federal poverty level for a family of four and with the majority of their employees in collective bargaining units.

$250,000 each year is for agricultural school-to-work grants.

$25,000 is for a grant to the Minnesota Historical Society for money canceled in fiscal year 1997.

$50,000 each year is awarded to the Minnesota valley action council, the fiscal agent for the south central tri-county school-to-work partnership, to serve as a model for the state in demonstrating the capability of a multicounty partnership to develop both a resource map for sustaining all learners and an assessment process for employer, labor, and community organizations involved in the school-to-work initiative. The partnership shall submit a report to the commissioner and to the governor's workforce development council by September 1, 1999, that includes the resource map, the results of the assessments, and models for multicounty partnerships to replicate these activities.

Any balance remaining in the first year does not cancel but is available in the second year.

Sec. 15. Laws 1997, First Special Session chapter 4, article 9, section 11, is amended to read:

Sec. 11. [ADDITIONAL TECHNOLOGY REVENUE.]

(a) For fiscal year 1998 only, the allowance in Minnesota Statutes, section 124A.22, subdivision 10, paragraph (a), is increased by:

(1) $24 per pupil unit; or

(2) the lesser of $25,000 or $80 per pupil unit.

Revenue received under this section must be used according to Minnesota Statutes, section 124A.22, subdivision 11, clauses (15), (18), (19), (23), and (24).

(b) For the purposes of paragraph (a), "pupil unit" means fund balance pupil unit as defined in Minnesota Statutes, section 124A.26, subdivision 1, excluding pupil units attributable to shared time pupils.

Sec. 16. [DEADLINE.]

The governor shall convene the interagency committee required by Minnesota Statutes, section 120.1703, subdivision 4, by July 1, 1998.

Sec. 17. [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 years designated.

Subd. 2. [INTERVENTION DEMONSTRATION PROJECTS.] For establishing five voluntary interagency intervention demonstration projects under section 2, subdivision 5:

$ 250,000 . . . . . 1999

The commissioner shall allocate the grant awards according to the implementation needs of the grant recipients.

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Subd. 3. [DESIGN AND IMPLEMENTATION GRANT.] For one-time grants to design and implement a lifework learning facility under section 13:

$ 450,000 . . . . . 1999

In awarding the grants, priority shall be given to applicants who are ready to implement a lifework learning facility.

Sec. 18. [REPEALER.]

Laws 1993, chapter 146, article 5, section 20, as amended by Laws 1997, First Special Session chapter 4, article 3, section 20, is repealed.

Sec. 19. [EFFECTIVE DATES.]

(a) Sections 2 to 4, 6, 11 to 14, and 16 are effective the day following final enactment.

(b) Section 15 is effective for revenue for fiscal year 1998.

ARTICLE 4

FACILITIES AND ORGANIZATION

Section 1. Minnesota Statutes 1997 Supplement, section 121.15, subdivision 6, is amended to read:

Subd. 6. [REVIEW AND COMMENT.] A school district, a special education cooperative, or a cooperative unit of government, as defined in section 123.35, subdivision 19b, paragraph (d), must not initiate an installment contract for purchase or a lease agreement, hold a referendum for bonds, nor solicit bids for new construction, expansion, or remodeling of an educational facility that requires an expenditure in excess of $400,000 per school site prior to review and comment by the commissioner. The commissioner may exempt a facility maintenance project funded with general education aid and levy or health and safety revenue from this provision after reviewing a written request from a school district describing the scope of work. A school board shall not separate portions of a single project into components to avoid the requirements of this subdivision.

Sec. 2. Minnesota Statutes 1996, section 124.755, subdivision 1, is amended to read:

Subdivision 1. [DEFINITIONS.] For the purposes of this section, the term "debt obligation" means either:

(1) a tax or aid anticipation certificate of indebtedness;

(2) a certificate of participation issued under section 124.91, subdivision 7; or

(3) a general obligation bond.

Sec. 3. Minnesota Statutes 1996, section 124.83, subdivision 8, is amended to read:

Subd. 8. [HEALTH, SAFETY, AND ENVIRONMENTAL MANAGEMENT COST.] (a) A district's cost for health, safety, and environmental management is limited to the lesser of:

(1) actual cost to implement their plan; or

(2) an amount determined by the commissioner, based on enrollment, building age, and size.

(b) Effective July 1, 1993, The department of children, families, and learning may contract with regional service organizations, private contractors, Minnesota safety council, or state agencies to provide management assistance to school districts for health and safety capital projects. Management assistance is the development of written programs for the identification, recognition and control of hazards, and prioritization and scheduling of district health and safety capital projects.

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(c) Notwithstanding paragraph (b), the department may approve revenue, up to the limit defined in paragraph (a) for districts having an approved health, safety, and environmental management plan that uses district staff to accomplish coordination and provided services.

Sec. 4. Minnesota Statutes 1997 Supplement, section 124.91, subdivision 1, is amended to read:

Subdivision 1. [TO LEASE BUILDING OR LAND.] (a) 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 operating capital revenue authorized under section 124A.22, subdivision 10, is 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.

(b) 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 or site to itself.

(c) For agreements finalized after July 1, 1997, a district may not levy under this subdivision for the purpose of leasing: (1) a newly constructed building used primarily for regular kindergarten, elementary, or secondary instruction; or (2) a newly constructed building addition or additions used primarily for regular kindergarten, elementary, or secondary instruction that contains more than 20 percent of the square footage of the previously existing building.

(d) The total levy under this subdivision for a district for any year must not exceed $100 times the actual pupil units for the fiscal year to which the levy is attributable.

(e) For agreements for which a review and comment have been submitted to the department of children, families, and learning after April 1, 1998, the term "instructional purpose" as used in this subdivision excludes expenditures on stadiums.

Sec. 5. Minnesota Statutes 1997 Supplement, section 124.91, subdivision 5, is amended to read:

Subd. 5. [INTERACTIVE TELEVISION.] (a) A school district with its central administrative office located within economic development region one, two, three, four, five, six, seven, eight, nine, and ten may apply to the commissioner of children, families, and learning for ITV revenue up to the greater of .5 percent of the adjusted net tax capacity of the district or $25,000. Eligible interactive television expenditures include the construction, maintenance, and lease costs of an interactive television system for instructional purposes. An eligible school district that has completed the construction of its interactive television system may also purchase computer hardware and software used primarily for instructional purposes and access to the Internet provided that its total expenditures for interactive television maintenance and lease costs and for computer hardware and software under this subdivision do not exceed its interactive television revenue for fiscal year 1998. The approval by the commissioner of children, families, and learning and the application procedures set forth in subdivision 1 shall apply to the revenue in this subdivision. In granting the approval, the commissioner must consider whether the district is maximizing efficiency through peak use and off-peak use pricing structures.

(b) To obtain ITV revenue, a district may levy an amount not to exceed the district's ITV revenue times 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 before the year the levy is certified by the actual pupil units in the district for the year to which the levy is attributable; to

(2) 100 percent of the equalizing factor as defined in section 124A.02, subdivision 8, for the year to which the levy is attributable $10,000.

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(c) A district's ITV aid is the difference between its ITV revenue and the ITV levy.

(d) The revenue in the first year after reorganization for a district that has reorganized under section 122.22, 122.23, or 122.241 to 122.247 shall be the greater of:

(1) the revenue computed for the reorganized district under paragraph (a), or

(2)(i) for two districts that reorganized, 75 percent of the revenue computed as if the districts involved in the reorganization were separate, or

(ii) for three or more districts that reorganized, 50 percent of the revenue computed as if the districts involved in the reorganization were separate.

(e) The revenue in paragraph (d) is increased by the difference between the initial revenue and ITV lease costs for leases that had been entered into by the preexisting districts on the effective date of the consolidation or combination and with a term not exceeding ten years. This increased revenue is only available for the remaining term of the lease. However, in no case shall the revenue exceed the amount available had the preexisting districts received revenue separately.

(f) Effective for fiscal year 2000, the revenue under this section shall be 75 percent of the amount determined in paragraph (a); for fiscal year 2001, 50 percent of the amount in paragraph (a); and for fiscal year 2002, 25 percent of the amount in paragraph (a).

(g) This section expires effective for revenue for fiscal year 2003, or when leases in existence on the effective date of Laws 1997, First Special Session chapter 4, expire.

Sec. 6. Minnesota Statutes 1996, section 124.91, subdivision 6, is amended to read:

Subd. 6. [ENERGY CONSERVATION.] For loans approved before March 1, 1998, the school district may annually levy include as revenue under section 124.95, without the approval of a majority of the voters in the district, an amount sufficient to repay the annual principal and interest of the loan made pursuant to sections 216C.37 and 298.292 to 298.298. For energy loans approved after March 1, 1998, school districts must annually transfer from the general fund to the debt redemption fund the amount sufficient to pay interest and principal on the loans.

Sec. 7. Minnesota Statutes 1996, section 124.95, subdivision 6, is amended to read:

Subd. 6. [DEBT SERVICE EQUALIZATION AID PAYMENT SCHEDULE.] Debt service equalization aid must be paid as follows: 30 percent before September 15, 30 percent before December 15, 25 30 percent before March 15, and a final payment of 15 10 percent by July 15 of the subsequent fiscal year.

Sec. 8. Minnesota Statutes 1997 Supplement, section 124A.22, subdivision 11, is amended to read:

Subd. 11. [USES OF TOTAL OPERATING CAPITAL REVENUE.] Total operating capital revenue may be used only for the following purposes:

(1) to acquire land for school purposes;

(2) to acquire or construct buildings for school purposes, up to $400,000;

(3) to rent or lease buildings, including the costs of building repair or improvement that are part of a lease agreement;

(4) to improve and repair school sites and buildings, and equip or reequip school buildings with permanent attached fixtures;

(5) for a surplus school building that is used substantially for a public nonschool purpose;

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(6) to eliminate barriers or increase access to school buildings by individuals with a disability;

(7) to bring school buildings into compliance with the uniform fire code adopted according to chapter 299F;

(8) to remove asbestos from school buildings, encapsulate asbestos, or make asbestos-related repairs;

(9) to clean up and dispose of polychlorinated biphenyls found in school buildings;

(10) to clean up, remove, dispose of, and make repairs related to storing heating fuel or transportation fuels such as alcohol, gasoline, fuel oil, and special fuel, as defined in section 296.01;

(11) for energy audits for school buildings and to modify buildings if the audit indicates the cost of the modification can be recovered within ten years;

(12) to improve buildings that are leased according to section 123.36, subdivision 10;

(13) to pay special assessments levied against school property but not to pay assessments for service charges;

(14) to pay principal and interest on state loans for energy conservation according to section 216C.37 or loans made under the Northeast Minnesota Economic Protection Trust Fund Act according to sections 298.292 to 298.298;

(15) to purchase or lease interactive telecommunications equipment;

(16) by school board resolution, to transfer money into the debt redemption fund to: (i) pay the amounts needed to meet, when due, principal and interest payments on certain obligations issued according to chapter 475; or (ii) pay principal and interest on debt service loans or capital loans according to section 124.44;

(17) to pay capital expenditure equipment-related assessments of any entity formed under a cooperative agreement between two or more districts;

(18) to purchase or lease computers and related materials, copying machines, telecommunications equipment, and other noninstructional equipment;

(19) to purchase or lease assistive technology or equipment for instructional programs;

(20) to purchase textbooks;

(21) to purchase new and replacement library books;

(22) to purchase vehicles;

(23) to purchase or lease telecommunications equipment, computers, and related equipment for integrated information management systems for:

(i) managing and reporting learner outcome information for all students under a results-oriented graduation rule;

(ii) managing student assessment, services, and achievement information required for students with individual education plans; and

(iii) other classroom information management needs; and

(24) to pay personnel costs directly related to the acquisition, operation, and maintenance of telecommunications systems, computers, related equipment, and network and applications software.

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Sec. 9. Laws 1997, First Special Session chapter 4, article 4, section 34, is amended to read:

Sec. 34. [FISCAL YEAR YEARS 1998 AND 1999 DECLINING PUPIL UNIT AID.]

For fiscal year years 1998 and 1999 only, a school district with one or more school buildings closed during the 1996-1997 school year due to flooding is eligible for declining pupil unit aid equal to the greater of zero or the product of the general education formula allowance for fiscal year 1998 times the difference between the district's actual pupil units for the 1996-1997 school year and the district's actual pupil units for the 1997-1998 school year.

Sec. 10. Laws 1997, First Special Session chapter 4, article 4, section 35, subdivision 9, is amended to read:

Subd. 9. [FLOOD LOSSES.] (a) For grants and loans to independent school district Nos. 2854, Ada-Borup; 2176, Warren-Alvarado-Oslo; 846, Breckenridge; 595, East Grand Forks; and other districts affected by the 1997 floods for expenses associated with the floods not covered by insurance or state or federal disaster relief:

$4,700,000 $14,775,000 . . . . . 1998

(b) The commissioner shall award grants and loans to school districts to cover expenses associated with the 1997 floods. The grants or loans may be for capital losses or for extraordinary operating expenses resulting from the floods. School districts shall repay any loan or grant amounts to the department if those amounts are otherwise funded from other sources. The commissioner shall establish the terms and conditions of any loans and may request any necessary information from school districts before awarding a grant or loan. This appropriation shall also be used to fund aid under sections 33 and 34.

(c) Of the amount in paragraph (a), $1,400,000 is for special school district No. 1, Minneapolis, for Edison high school; $1,250,000 is for independent school district No. 2854, Ada-Borup; and $7,425,000 is for independent school district No. 595, East Grand Forks. Part of the appropriation to independent school district No. 595, East Grand Forks, may be used to convert the Valley elementary school into a facility for community, early childhood, and senior programs.

(d) The commissioner shall determine a schedule for payments to the school districts.

(e) This appropriation is available until June 30, 1999.

Sec. 11. [JOINT FACILITY.]

Notwithstanding Minnesota Statutes, section 471.19, independent school district No. 277, Westonka, may expend bond funds for building and remodeling a facility to be operated and maintained under a joint-powers agreement with other governmental entities for joint use by the school district and local community agencies. The school district is not eligible for debt service equalization on the bonds associated with the joint facility.

Sec. 12. [ENHANCED PAIRING COOPERATION AND COMBINATION AID.]

Subdivision 1. [DISTRICT ELIGIBILITY.] A group of districts participating in an enhanced pairing agreement under Laws 1995, First Special Session chapter 3, article 6, section 17, is eligible for a grant for cooperation and combination.

Subd. 2. [AID AMOUNT.] A district that is participating in an enhanced pairing agreement is eligible for consolidation transition revenue under Minnesota Statutes, section 124.2726 and is also eligible for additional state aid equal to $100 times the number of pupil units enrolled in an enhanced paired district in the year prior to consolidation.

Subd. 3. [AID USES.] A district receiving aid under this section must use the aid consistent with the purposes listed under Minnesota Statutes, section 124.2725, subdivision 11, or other purposes related to combination of the individual districts as determined by the school board. If, after receipt of state aid under this section the districts choose not to combine and receive aid under Minnesota Statutes, section 124.2726, the commissioner of children, families, and learning must recover aid equal to $25 times the number of pupil units in the enhanced paired district.

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Sec. 13. [LEASE LEVY FOR ADMINISTRATIVE SPACE; SOUTH ST. PAUL AND MANKATO.]

Each year, special school district No. 6, South St. Paul, and independent school district No. 77, Mankato, may levy the amounts necessary to rent or lease administrative space so that space previously used for administrative purposes may be used for instructional purposes.

Sec. 14. [USE OF BOND PROCEEDS; ST. CLOUD.] Notwithstanding Minnesota Statutes, section 475.58, subdivision 4, independent school district No. 742, St. Cloud, upon passage of a written resolution specifying the amount and purpose of the expenditure, may expend up to $800,000 from its building construction fund to purchase a building and site to be used for community education purposes.

Sec. 15. [BONDING AUTHORIZATION.]

To provide funds for the acquisition or betterment of school facilities, independent school district No. 625, St. Paul, may by two-thirds majority vote of all the members of the board of directors issue general obligation bonds in one or more series in calendar years 1998 to 2002, both inclusive, as provided in this section. The aggregate principal amount of any bonds issued under this section for each calendar year must not exceed $15,000,000. Issuance of the bonds is not subject to Minnesota Statutes, section 475.58 or 475.59. The bonds must otherwise be issued as provided in Minnesota Statutes, chapter 475. The authority to issue bonds under this section is in addition to any bonding authority authorized by Minnesota Statutes, chapter 124, or other law. The amount of bonding authority authorized under this section must be disregarded in calculating the bonding limit of Minnesota Statutes, chapter 124, or any other law other than Minnesota Statutes, section 475.53, subdivision 4.

Sec. 16. [TAX LEVY FOR DEBT SERVICE.]

To pay the principal of and interest on bonds issued under section 13, independent school district No. 625, St. Paul, must levy a tax annually in an amount sufficient under Minnesota Statutes, section 475.61, subdivisions 1 and 3, to pay the principal of and interest on the bonds. The tax authorized under this section is in addition to the taxes authorized to be levied under Minnesota Statutes, chapter 124A or 275, or other law.

Sec. 17. [MOUNTAIN IRON-BUHL; BONDS.]

Subdivision 1. [AUTHORIZATION.] Independent school district No. 712, Mountain Iron-Buhl, may issue bonds in an aggregate principal amount not exceeding $5,300,000 in addition to any bonds already issued or authorized, to provide funds to design, construct, equip, furnish, remodel, rehabilitate, and acquire land for school facilities and buildings, or abate, remove, and dispose of asbestos, polychlorinated biphenyls, or petroleum as defined in Minnesota Statutes, section 115C.02, and make repairs related to the abatement, removal, or disposal of these substances. Independent school district No. 712, Mountain Iron-Buhl, may spend the proceeds of the bond sale for those purposes and any architect, engineer, and legal fees incidental to those purposes or the sale. The bond shall be authorized, issued, sold, executed, and delivered in the manner provided by Minnesota Statutes, chapter 475, including submission of the proposition to the electors under Minnesota Statutes, section 475.58. After authorization by the electors under Minnesota Statutes, section 475.58, a resolution of the board levying taxes for the payment of bonds and interest on them and pledging the proceeds of the levies for the payment of the bonds and interest on them shall be deemed to be in compliance with the provisions of Minnesota Statutes, chapter 475, with respect to the levying of taxes for their payment.

Subd. 2. [APPROPRIATION.] There is annually appropriated from the distribution of taconite production tax revenues to the taconite environmental protection fund pursuant to Minnesota Statutes, section 298.28, subdivision 11, and to the northeast Minnesota economic protection trust pursuant to Minnesota Statutes, section 298.28, subdivisions 9 and 11, in equal shares, an amount sufficient to pay when due 80 percent of the principal and interest on the bonds issued pursuant to subdivision 1. If the annual distribution to the northeast Minnesota economic protection trust is insufficient to pay its share after fulfilling any obligations of the trust under Minnesota Statutes, section 298.225 or 298.293, the deficiency shall be appropriated from the taconite environmental protection fund.

Subd. 3. [DISTRICT OBLIGATIONS.] Bonds issued under authority of this section shall be the general obligations of the school district, for which its full faith and credit and unlimited taxing powers shall be pledged. If there are any deficiencies in the amount received pursuant to subdivision 2, they shall be made good by general levies, not subject to

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limit, on all taxable properties in the district in accordance with Minnesota Statutes, section 475.64. If any deficiency levies are necessary, the school board may effect a temporary loan or loans on certificates of indebtedness issued in anticipation of them to meet payments of principal or interest on the bonds due or about to become due.

Subd. 4. [DISTRICT LEVY.] The school board shall by resolution levy on all property in the school district subject to the general ad valorem school tax levies, and not subject to taxation under Minnesota Statutes, sections 298.23 to 298.28, a direct annual ad valorem tax for each year of the term of the bonds in amounts that, if collected in full, will produce the amounts needed to meet when due 20 percent of the principal and interest payments on the bonds. A copy of the resolution shall be filed, and the necessary taxes shall be extended, assessed, collected, and remitted in accordance with Minnesota Statutes, section 475.61.

Subd. 5. [LEVY LIMITATIONS.] Taxes levied pursuant to this section shall be disregarded in the calculation of any other tax levies or limits on tax levies provided by other law.

Subd. 6. [BONDING LIMITATIONS.] Bonds may be issued under authority of this section notwithstanding any limitations upon the indebtedness of a district, and their amounts shall not be included in computing the indebtedness of a district for any purpose, including the issuance of subsequent bonds and the incurring of subsequent indebtedness.

Subd. 7. [TERMINATION OF APPROPRIATION.] The appropriation authorized in subdivision 2 shall terminate upon payment or maturity of the last of those bonds.

Subd. 8. [BOND ISSUE REQUIREMENT.] No bonds may be issued under this section after March 1, 2000, unless they are issued under a contract in effect on or before March 1, 2000.

Subd. 9. [LOCAL APPROVAL.] This section is effective for independent school district No. 712, Mountain Iron-Buhl, the day after its governing body complies with Minnesota Statutes, section 645.021, subdivision 3.

Sec. 18. [BONDS PAID FROM TACONITE PRODUCTION TAX REVENUES.]

Subdivision 1. [REFUNDING BONDS.] The appropriation of funds from the distribution of taconite production tax revenues to the taconite environmental protection tax fund and the northeast Minnesota economic protection fund made by Laws 1988, chapter 718, article 7, sections 62 and 63; Laws 1989, chapter 329, article 5, section 20; Laws 1990, chapter 604, article 8, section 13; Laws 1992, chapter 499, article 5, section 29; and Laws 1996, chapter 412, article 5, sections 18 to 20; and by section 16, shall continue to apply to bonds issued under Minnesota Statutes, chapter 475, to refund bonds originally issued pursuant to those chapters.

Subd. 2. [LOCAL PAYMENTS.] School districts that are required in Laws 1988, chapter 718, article 7, sections 62 and 63; Laws 1989, chapter 329, article 5, section 20; Laws 1990, chapter 604, article 8, section 13; Laws 1992, chapter 499, article 5, section 29; and sections 18 to 20, to impose levies to pay debt service on the bonds issued under those provisions to the extent the principal and interest on the bonds is not paid by distributions from the taconite environmental protection fund and the northeast Minnesota economic protection trust, may pay their portion of the principal and interest from any funds available to them. To the extent a school district uses funds other than the proceeds of a property tax levy to pay its share of the principal and interest on the bonds, the requirement to impose a property tax to pay the local share does not apply to the school district.

Sec. 19. [HEALTH AND SAFETY REVENUE; MOUNDS VIEW.] (a) Upon approval of the commissioner of children, families, and learning, and notwithstanding Minnesota Statutes, section 124.83, subdivision 6, independent school district No. 621, Mounds View, is authorized to use up to $300,000 of its health and safety revenue to replace portable classrooms with new construction of classrooms.

(b) The department of children, families, and learning shall approve the revenue use under paragraph (a) only after the district has demonstrated to the commissioner's satisfaction that:

(1) mold has rendered the portable classrooms uninhabitable;

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(2) Island Lake elementary school could not receive an occupancy permit from local building code officials; and

(3) the timing of the damage to Island Lake elementary school portables presented a hardship to the school by leaving it short by two classrooms.

Sec. 20. [HEALTH AND SAFETY; EVELETH-GILBERT.]

Notwithstanding any law to the contrary, independent school district No. 2154, Eveleth-Gilbert, may include in its health and safety program the amounts necessary to make health and safety improvements to an ice arena located within the district boundaries. The total amount of revenue approved for this purpose shall not exceed $300,000.

Sec. 21. [APPROPRIATION.]

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 years designated.

Subd. 2. [MONTICELLO.] For a grant to independent school district No. 882, Monticello, for losses related to summer storms in 1997:

$ 100,000 . . . . . 1998

This appropriation is available until June 30, 1999.

Subd. 3. [CARLTON PLANNING GRANT.] For a grant to independent school district No. 93, Carlton, to develop a plan to coordinate district buildings and services:

$ 10,000 . . . . . 1999

The school district shall collaborate with the city of Carlton and Carlton county in developing the plan.

Subd. 4. [CALEDONIA PLANNING GRANT.] (a) For a grant to perform a management assistance study for independent school district No. 299, Caledonia:

$ 40,000 . . . . . 1999

(b) The study shall include an analysis of facility needs, enrollment trends, and instructional opportunities available to pupils of independent school district No. 299, Caledonia. The department may consult with neighboring school districts, as appropriate. The department shall complete the management assistance study by December 31, 1998.

(c) This appropriation is available until June 30, 1999.

Subd. 5. [COORDINATED FACILITIES PLANS.] For grants for coordinated facilities plans:

$ 550,000 . . . . . 1999

Of this amount, $200,000 is for independent school district No. 2135, Maple River, $150,000 is for independent school district No. 2184, Luverne, $100,000 is for independent school district No. 238, Mabel-Canton, and $100,000 is for independent school district No. 534, Stewartville. The grants shall be used to examine and coordinate the districts' building needs. Each district must evaluate how the current use of its facilities is affecting its educational services and examine cost efficiencies that may result from a coordinated facilities plan. The grants may be used for operating purposes, transportation purposes, or facilities purposes that lead to greater program efficiencies.

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Subd. 6. [ENHANCED PAIRING COMBINATION AID.] For a grant to a group of school districts participating in the enhanced pairing program that intend to combine into a single school district:

$ 135,000 . . . . . 1999

Sec. 22. [EFFECTIVE DATES.]

(a) Section 2 is effective retroactively for revenue for fiscal year 1997.

(b) Section 4 is effective retroactively to April 1, 1998.

(c) Section 6 is effective retroactively to March 1, 1998.

(d) Sections 10 and 14 are effective the day following final enactment.

(e) Sections 15 and 16 are effective the day after the governing body of independent school district No. 625, St. Paul, complies with Minnesota Statutes, section 645.021, subdivision 3.

(f) Section 21, subdivision 2, is effective the day following final enactment.

ARTICLE 5

POLICIES PROMOTING ACADEMIC EXCELLENCE

Section 1. Minnesota Statutes 1996, section 43A.17, subdivision 9, is amended to read:

Subd. 9. [POLITICAL SUBDIVISION COMPENSATION LIMIT.] The salary and the value of all other forms of compensation of a person employed by a statutory or home rule charter city, county, town, school district, metropolitan or regional agency, or other political subdivision of this state excluding a school district, or employed under section 422A.03, may not exceed 95 percent of the salary of the governor as set under section 15A.082, except as provided in this subdivision. Deferred compensation and payroll allocations to purchase an individual annuity contract for an employee are included in determining the employee's salary. Other forms of compensation which shall be included to determine an employee's total compensation are all other direct and indirect items of compensation which are not specifically excluded by this subdivision. Other forms of compensation which shall not be included in a determination of an employee's total compensation for the purposes of this subdivision are:

(1) employee benefits that are also provided for the majority of all other full-time employees of the political subdivision, vacation and sick leave allowances, health and dental insurance, disability insurance, term life insurance, and pension benefits or like benefits the cost of which is borne by the employee or which is not subject to tax as income under the Internal Revenue Code of 1986;

(2) dues paid to organizations that are of a civic, professional, educational, or governmental nature; and

(3) reimbursement for actual expenses incurred by the employee which the governing body determines to be directly related to the performance of job responsibilities, including any relocation expenses paid during the initial year of employment.

The value of other forms of compensation shall be the annual cost to the political subdivision for the provision of the compensation. The salary of a medical doctor or doctor of osteopathy occupying a position that the governing body of the political subdivision has determined requires an M.D. or D.O. degree is excluded from the limitation in this subdivision. The commissioner may increase the limitation in this subdivision for a position that the commissioner has determined requires special expertise necessitating a higher salary to attract or retain a qualified person. The commissioner shall review each proposed increase giving due consideration to salary rates paid to other persons with similar responsibilities in the state and nation. The commissioner may not increase the limitation until the commissioner has presented the proposed increase to the legislative coordinating commission and received the commission's recommendation on it. The recommendation is advisory only. If the commission does not give its recommendation on a proposed increase within 30 days from its receipt of the proposal, the commission is deemed to have recommended approval.

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Sec. 2. Minnesota Statutes 1996, section 43A.17, subdivision 10, is amended to read:

Subd. 10. [LOCAL ELECTED OFFICIALS; CERTAIN COMPENSATION PROHIBITED.] The compensation plan for an elected official of a statutory or home rule charter city, county, or town, or school district may not include a provision for vacation or sick leave. The salary of an official covered by this subdivision may not be diminished because of the official's absence from official duties because of vacation or sickness.

Sec. 3. Minnesota Statutes 1997 Supplement, section 120.064, subdivision 3, is amended to read:

Subd. 3. [SPONSOR.] A school board, intermediate school district school board, private college, community college, state university, technical college, or the University of Minnesota may sponsor one or more charter schools.

Sec. 4. Minnesota Statutes 1997 Supplement, section 120.101, subdivision 5, is amended to read:

Subd. 5. [AGES AND TERMS.] (a) Every child between seven and 16 years of age shall receive instruction. Every child under the age of seven who is enrolled in a half-day kindergarten, or a full-day kindergarten program on alternate days, or other kindergarten programs shall receive instruction. Except as provided in subdivision 5a, a parent may withdraw a child under the age of seven from enrollment at any time.

(b) A school district by annual board action may require children subject to this subdivision to receive instruction in summer school. A district that acts to require children to receive instruction in summer school shall establish at the time of its action the criteria for determining which children must receive instruction.

Sec. 5. Minnesota Statutes 1996, 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) (1) 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) (2) admission fees or charges for extra curricular activities, where attendance is optional and where the admission fees or charges a student must pay to attend or participate in an extracurricular activity is the same for all students, regardless of whether the student is enrolled in a public or a home school;

(c) (3) a security deposit for the return of materials, supplies, or equipment;

(d) (4) 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) (5) 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) (6) fees specifically permitted by any other statute, including but not limited to section 171.04, subdivision 1, clause (1);

(g) (7) field trips considered supplementary to a district educational program;

(h) (8) any authorized voluntary student health and accident benefit plan;

(i) (9) 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) (10) transportation of pupils to and from extra curricular activities conducted at locations other than school, where attendance is optional;

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(k) (11) 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) (12) 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) (13) 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. 6. Minnesota Statutes 1997 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 or form of instruction that local sites must use to meet the requirements contained in this rule.

(b) 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.

(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 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. The commissioner shall develop and disseminate to school districts a uniform method for reporting student performance on the profile of learning.

(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.

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(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. 7. Minnesota Statutes 1996, section 121.11, subdivision 7d, is amended to read:

Subd. 7d. [DESEGREGATION/INTEGRATION, INCLUSIVE EDUCATION, AND LICENSURE RULES.] (a) The state board may By January 10, 1999, the commissioner shall make rules relating to desegregation/integration, and inclusive education, and licensure of school personnel not licensed by the board of teaching.

(b) In adopting a rule related to school desegregation/integration, the state board commissioner shall address the need for equal educational opportunities for all students and racial balance as defined by the state board commissioner.

Sec. 8. Minnesota Statutes 1997 Supplement, section 121.1113, subdivision 1, is amended to read:

Subdivision 1. [STATEWIDE TESTING.] (a) The commissioner, with advice from experts with appropriate technical qualifications and experience and stakeholders, shall include in the comprehensive assessment system, for each grade level to be tested, a single statewide norm-referenced or criterion-referenced test, or a combination of a norm-referenced and a criterion-referenced test, which shall be highly correlated with the state's graduation standards and administered annually to all students in the third, fifth, and eighth grades. The commissioner shall establish one or more months during which schools shall administer the tests to students each school year. The Only Minnesota basic skills tests in reading and, mathematics, and writing shall fulfill students' eighth grade testing requirements for a passing state notation.

(b) In addition, at the secondary level, districts shall assess student performance in all required learning areas and selected required standards within each area of the profiles of learning. The testing instruments and testing process shall be determined by the commissioner. The results shall be aggregated at the site and district level. The testing shall be administered beginning in the 1999-2000 school year and thereafter.

(c) The comprehensive assessment system shall include an evaluation of school site and school district performance levels during the 1997-1998 school year and thereafter using an established performance baseline developed from students' test scores under this section that records, at a minimum, students' unweighted mean test scores in each tested subject, a second performance baseline that reports, at a minimum, the same unweighted mean test scores of only those students enrolled in the school by January 1 of the previous school year, and a third performance baseline that reports the same unweighted test scores of all students except those students receiving limited English proficiency instruction. The evaluation also shall record separately, in proximity to the performance baselines, the percentages of students who are eligible to receive a free or reduced price school meal, demonstrate limited English proficiency, or are eligible to receive special education services.

(d) In addition to the testing and reporting requirements under paragraphs (a), (b), and (c), the commissioner, in consultation with the state board of education, shall include the following components in the statewide educational accountability and public reporting system:

(1) uniform statewide testing of all third, fifth, eighth, and post-eighth grade students with exemptions, only with parent or guardian approval, from the testing requirement only for those very few students for whom the student's individual education plan team under section 120.17, subdivision 2, determines that the student is incapable of taking a statewide test, or a limited English proficiency student under section 126.262, subdivision 2, if the student has been in the United States for fewer than 12 months and for whom special language barriers exist, such as the student's native language does not have a written form or the district does not have access to appropriate interpreter services for the student's native language;

(2) educational indicators that can be aggregated and compared across school districts and across time on a statewide basis;

(3) students' scores on the American College Test;

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(4) participation in the National Assessment of Educational Progress so that the state can benchmark its performance against the nation and other states, and, where possible, against other countries, and contribute to the national effort to monitor achievement; and

(5) basic skills and advanced competencies connecting teaching and learning to high academic standards, assessment, and transitions to citizenship and employment.

(e) Districts must report exemptions under paragraph (d), clause (1), to the commissioner consistent with a format provided by the commissioner.

Sec. 9. [121.1114] [GRADUATION RULE.]

Subdivision 1. [IMPLEMENTATION OF THE PROFILE OF LEARNING.] (a) A school district shall implement the profile of learning of the graduation rule under paragraph (b), (c), or (d).

A district may implement the profile of learning under paragraph (c) or (d) only after the commissioner approves the district's request for a waiver and approves the local plan for full implementation.

(b) A school district shall implement the profile of learning for the 1998-1999 school year and later.

(c) A school district shall implement the profile of learning as follows:

(1) for the 1998-1999 school year and later, the district shall implement all required standards in learning areas at the preparatory level and implement for ninth grade students a minimum of six learning areas under the profile of learning with three from the areas of read, listen, and view; write and speak; mathematical applications; scientific applications; and people and cultures; and three from the areas of literature and the arts; inquiry; decision making; resource management; and world language;

(2) for the 1999-2000 school year and later, the district shall implement for ninth and tenth grade students two learning areas in addition to those implemented under clause (1). The district shall complete the four learning areas of read, listen, and view; write and speak; mathematical applications; scientific applications; and people and cultures if the four areas were not completed in clause (1); and the remainder from the areas of literature and the arts; inquiry; decision making; resource management; and world language; and

(3) for the 2000-2001 school year and later, the district shall implement for ninth, tenth, and eleventh grade students the two learning areas in the profile of learning that were not implemented under clauses (1) and (2).

(d) A district shall develop a local plan to implement the profile of learning and have all ten learning areas fully implemented by the 2001-2002 school year.

(e) A district shall notify the commissioner by July 1, 1998, as to whether the district will implement the profile of learning under paragraph (b), (c), or (d).

(f) An advisory committee of 11 members is established to advise the governor and commissioner on the implementation of the graduation rule under this section. The commissioner shall appoint 11 members with representatives from education organizations, business, higher education, parents, and organizations representing communities of color.

The committee shall review the implementation of the basic requirements and the profile of learning standards.

The commissioner shall provide technical and other assistance to the advisory committee. The committee expires on December 1, 1998.

Subd. 2. [PERFORMANCE PACKAGES.] Teachers are not required to use a state model performance package. Teachers are encouraged to develop and use a performance package that equals or exceeds the difficulty of the state model performance package.

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Subd. 3. [WAIVER.] In order to receive a waiver, a district must document why the waiver is necessary, how the local plan improves student achievement, and how the profile of learning will be fully implemented for the 2001-2002 school year.

Sec. 10. Minnesota Statutes 1996, section 121.1115, is amended by adding a subdivision to read:

Subd. 1b. [EDUCATIONAL ACCOUNTABILITY.] (a) The independent office of educational accountability, as authorized by Laws 1997, First Special Session chapter 4, article 5, section 28, subdivision 2, is established. The office shall advise the education committees of the legislature and the commissioner of children, families, and learning, at least on a biennial basis, on the degree to which the statewide educational accountability and reporting system includes a comprehensive assessment framework that measures school accountability for students achieving the goals described in the state's results-oriented graduation rule. The office shall consider whether the statewide system of educational accountability utilizes multiple indicators to provide valid and reliable comparative and contextual data on students, schools, districts, and the state, and if not, recommend ways to improve the accountability reporting system.

(b) When the office reviews the statewide educational accountability and reporting system, it shall also consider:

(1) the objectivity and neutrality of the state's educational accountability system; and

(2) the impact of a testing program on school curriculum and student learning.

Sec. 11. Minnesota Statutes 1996, section 125.183, subdivision 1, is amended to read:

Subdivision 1. The board of teaching consists of 11 members appointed by the governor, with the advice and consent of the senate. Membership terms, compensation of members, removal of members, the filling of membership vacancies, and fiscal year and reporting requirements shall be as provided in sections 214.07 to 214.09. No member may be reappointed for more than one additional term.

Sec. 12. Minnesota Statutes 1996, section 125.183, subdivision 3, is amended to read:

Subd. 3. [MEMBERSHIP.] Except for the representatives of higher education and the public, to be eligible for appointment to the board of teaching a person must be a teacher currently teaching in a Minnesota school and fully licensed for the position held and have at least five years teaching experience in Minnesota, including the two years immediately preceding nomination and appointment. Each nominee, other than a public nominee, must be selected on the basis of professional experience and knowledge of teacher education, accreditation, and licensure. The board must be composed of:

(1) six classroom teachers who are currently teaching in a Minnesota school, at least four of whom must be teaching in a public school;

(2) one higher education representative, who must be a faculty member preparing teachers;

(3) one school administrator; and

(4) three members of the public, two of whom must be present or former members of school boards.

Sec. 13. Minnesota Statutes 1996, section 126.70, subdivision 2a, is amended to read:

Subd. 2a. [STAFF DEVELOPMENT OUTCOMES.] The staff development committee shall adopt a staff development plan for improving student achievement of education outcomes. The plan must be consistent with education outcomes that the school board determines. The plan shall include ongoing staff development activities that contribute toward continuous improvement in achievement of the following goals:

(1) improve student achievement of state and local education standards in all areas of the curriculum by using best practices methods;

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(2) effectively meet the needs of a diverse student population, including at-risk children, children with disabilities, and gifted children, within the regular classroom and other settings;

(3) provide an inclusive curriculum for a racially, ethnically, and culturally diverse student population that is consistent with the state education diversity rule and the district's education diversity plan;

(4) improve staff ability to collaborate and consult with one another and to resolve conflicts;

(5) effectively teach and model violence prevention policy and curriculum that address issues of harassment and teach nonviolent alternatives for conflict resolution; and

(6) provide teachers and other members of site-based management teams with appropriate management and financial management skills.

Sec. 14. Minnesota Statutes 1996, section 128A.02, subdivision 1, is amended to read:

Subdivision 1. [TO GOVERN GOVERNANCE.] The state board of education the Faribault academy shall govern the state academy for the deaf and the state academy for the blind. The board must promote academic standards based on high expectation and an assessment system to measure academic performance toward the achievement of those standards. The board must focus on the academies' needs as a whole and not prefer one school over the other. The board of the Faribault academies shall consist of seven persons. The members of the board shall be appointed by the governor with the advice and consent of the senate. Three members must be from the seven-county metropolitan area, three members must be from greater Minnesota, and one member may be appointed at-large. The board must be composed of:

(1) one superintendent of an independent school district;

(2) one special education director;

(3) the commissioner of children, families, and learning or the commissioner's designee;

(4) one member of the blind community;

(5) one member of the deaf community; and

(6) two members of the general public with business or financial expertise.

Sec. 15. Minnesota Statutes 1996, section 128A.02, is amended by adding a subdivision to read:

Subd. 1b. [TERMS; COMPENSATION; AND OTHER.] The membership terms, compensation, removal of members, and filling of vacancies shall be as provided for in section 15.0575. A member may serve not more than two consecutive terms.

Sec. 16. Minnesota Statutes 1996, section 128A.02, is amended by adding a subdivision to read:

Subd. 2b. [MEETINGS.] All meetings of the board shall be as provided in section 471.705 and must be held in Faribault.

Sec. 17. Minnesota Statutes 1996, section 128A.02, subdivision 3, is amended to read:

Subd. 3. [MOST BENEFICIAL, LEAST RESTRICTIVE.] The state board must do what is necessary to provide the most beneficial and least restrictive program of education for each pupil at the academies who is handicapped by visual disability or deafness.

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Sec. 18. Minnesota Statutes 1996, section 128A.02, subdivision 3b, is amended to read:

Subd. 3b. [PLANNING, EVALUATION, AND REPORTING.] To the extent required in school districts, the state board must establish a process for the academies to include parent and community input in the planning, evaluation, and reporting of curriculum and pupil achievement.

Sec. 19. Minnesota Statutes 1996, section 128A.02, subdivision 5, is amended to read:

Subd. 5. [SITE COUNCILS.] The state board may establish, and appoint members to, a site council at each academy. The site councils shall exercise power and authority granted by the state board. The state board must appoint to each site council the exclusive representative's employee designee from each exclusive representative at the academies.

Sec. 20. Minnesota Statutes 1996, section 128A.02, subdivision 6, is amended to read:

Subd. 6. [TRUSTEE OF ACADEMIES' PROPERTY.] The state board is the trustee of the academies' property. Securities and money, including income from the property, must be deposited in the state treasury according to section 16A.275. The deposits are subject to the order of the state board.

Sec. 21. Minnesota Statutes 1997 Supplement, section 128A.02, subdivision 7, is amended to read:

Subd. 7. [GRANTS.] The state board, through the chief administrators of the academies, may apply for all competitive grants administered by agencies of the state and other government or nongovernment sources. Application may not be made for grants over which the board has discretion.

Sec. 22. Minnesota Statutes 1996, section 128A.022, is amended to read:

128A.022 [POWERS OF STATE BOARD OF EDUCATION THE FARIBAULT ACADEMIES.]

Subdivision 1. [PERSONNEL.] The state board of education of the Faribault academies may employ central administrative staff members and other personnel necessary to provide and support programs and services at each academy.

Subd. 2. [GET HELP FROM DEPARTMENT.] The state board of the Faribault academies may require the department of children, families, and learning to provide program leadership, program monitoring, and technical assistance at the academies.

Subd. 3. [UNCLASSIFIED POSITIONS.] The state board of the Faribault academies may place any position other than residential academies administrator in the unclassified service. The position must meet the criteria in section 43A.08, subdivision 1a.

Subd. 4. [RESIDENTIAL AND BUILDING MAINTENANCE SERVICES.] The state board of the Faribault academies may enter into agreements with public or private agencies or institutions to provide residential and building maintenance services. The state board of the Faribault academies must first decide that contracting for the services is more efficient and less expensive than not contracting for them.

Subd. 6. [STUDENT TEACHERS AND PROFESSIONAL TRAINEES.] (a) The state board of the Faribault academies may enter into agreements with teacher preparation institutions for student teachers to get practical experience at the academies. A licensed teacher must provide appropriate supervision of each student teacher.

(b) The state board of the Faribault academies may enter into agreements with accredited higher education institutions for certain student trainees to get practical experience at the academies. The students must be preparing themselves in a professional field that provides special services to children with a disability in school programs. To be a student trainee in a field, a person must have completed at least two years of an approved program in the field. A person who is licensed or registered in the field must provide appropriate supervision of each student trainee.

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Sec. 23. Minnesota Statutes 1996, section 128A.023, subdivision 1, is amended to read:

Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND LEARNING.] The department of children, families, and learning must assist the state board of education the Faribault academies in preparing reports on the academies.

Sec. 24. Minnesota Statutes 1996, section 128A.023, subdivision 2, is amended to read:

Subd. 2. [DEPARTMENT OF EMPLOYEE RELATIONS.] The department of employee relations, in cooperation with the state board of education the Faribault academies, must develop a statement of necessary qualifications and skills for all staff members of the academies.

Sec. 25. Minnesota Statutes 1996, section 128A.026, subdivision 1, is amended to read:

Subdivision 1. [SUBJECTS.] The state board of education the Faribault academies must establish procedures for:

(1) admission, including short-term admission, to the academies;

(2) discharge from the academies;

(3) decisions on a pupil's program at the academies; and

(4) evaluation of a pupil's progress at the academies.

Sec. 26. Minnesota Statutes 1996, section 128A.026, subdivision 3, is amended to read:

Subd. 3. [NOT CONTESTED CASE.] A proceeding about admission to or discharge from the academies or about a pupil's program or progress at the academies is not a contested case under section 14.02. The proceeding is governed instead by the rules of the state board governing special education.

Sec. 27. Minnesota Statutes 1996, section 128A.07, subdivision 2, is amended to read:

Subd. 2. [LOCAL SOCIAL SERVICES AGENCY.] If the person liable for support of a pupil cannot support the pupil, the local social services agency of the county of the pupil's residence must do so. The commissioner of children, families, and learning must decide how much the local social services agency must pay. The state board of education the Faribault academies must adopt rules that tell how the commissioner is to fix the amount. The local social services agency must make the payment to the superintendent of the school district of residence.

Sec. 28. Minnesota Statutes 1996, section 260.015, subdivision 19, is amended to read:

Subd. 19. [HABITUAL TRUANT.] "Habitual truant" means a child under the age of 16 years who is absent from attendance at school without lawful excuse for seven school days if the child is in elementary school or for one or more class periods on seven school days if the child is in middle school, junior high school, or high school, or a child who is 16 or 17 years of age who is absent from attendance at school without lawful excuse for one or more class periods on seven school days and who has not lawfully withdrawn from school under section 120.101, subdivision 5d.

Sec. 29. Minnesota Statutes 1996, section 260.131, subdivision 1b, is amended to read:

Subd. 1b. [CHILD IN NEED OF PROTECTION OR SERVICES; HABITUAL TRUANT.] If there is a school attendance review board or county attorney mediation program operating in the child's school district, a petition alleging that a child is in need of protection or services as a habitual truant under section 260.015, subdivision 2a, clause (12), may not be filed until the applicable procedures under section 260A.06 or 260A.07 have been exhausted followed.

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Sec. 30. Minnesota Statutes 1996, section 260.132, subdivision 1, is amended to read:

Subdivision 1. [NOTICE.] When a peace officer, or attendance officer in the case of a habitual truant, has probable cause to believe that a child:

(1) is in need of protection or services under section 260.015, subdivision 2a, clause (11) or (12);

(2) is a juvenile petty offender; or

(3) has committed a delinquent act that would be a petty misdemeanor or misdemeanor if committed by an adult;

the officer may issue a notice to the child to appear in juvenile court in the county in which the child is found or in the county of the child's residence or, in the case of a juvenile petty offense, or a petty misdemeanor or misdemeanor delinquent act, the county in which the offense was committed. If there is a school attendance review board or county attorney mediation program operating in the child's school district, a notice to appear in juvenile court for a habitual truant may not be issued until the applicable procedures under section 260A.06 or 260A.07 have been exhausted followed. The officer shall file a copy of the notice to appear with the juvenile court of the appropriate county. If a child fails to appear in response to the notice, the court may issue a summons notifying the child of the nature of the offense alleged and the time and place set for the hearing. If the peace officer finds it necessary to take the child into custody, sections 260.165 and 260.171 shall apply.

Sec. 31. Minnesota Statutes 1996, section 260A.05, subdivision 2, is amended to read:

Subd. 2. [GENERAL POWERS AND DUTIES.] A school attendance review board shall prepare an annual plan to promote interagency and community cooperation and to reduce duplication of services for students with school attendance problems. The plan shall include a description of truancy procedures and services currently in operation within the board's jurisdiction, including the programs and services under section 260A.04. A board may provide consultant services to, and coordinate activities of, truancy programs and services. If a board determines that it will be unable to provide services for all truant students who are referred to it, the board shall establish procedures and criteria for determining whether to accept referrals of students or refer them for other appropriate action.

Sec. 32. Minnesota Statutes 1996, section 260A.06, is amended to read:

260A.06 [REFERRAL OF TRUANT STUDENTS TO SCHOOL ATTENDANCE REVIEW BOARD.]

Subdivision 1. [REFERRAL; NOTICE.] An attendance officer or other school official may refer a student who is a continuing truant to the school attendance review board. The person making the referral shall provide a written notice by first class mail or other reasonable means to the student and the student's parent or legal guardian. The notice must:

(1) include the name and address of the board to which the student has been referred and the reason for the referral; and

(2) indicate that the student, the parent or legal guardian, and the referring person will meet with the board to determine a proper disposition of the referral, unless the board refers the student directly to the county attorney or for other appropriate legal action.

Subd. 2. [MEETING; COMMUNITY SERVICES.] (a) Except as provided in paragraph (b), the school attendance review board shall schedule the meeting described in subdivision 1 and provide notice of the meeting by first class mail or other reasonable means to the student, parent or guardian, and referring person. If the board determines that available community services may resolve the attendance problems of the truant student, the board shall refer the student or the student's parent or guardian to participate in the community services. The board may develop an agreement with the student and parent or guardian that specifies the actions to be taken. The board shall inform the student and parent or guardian that failure to comply with any agreement or to participate in appropriate community services will result in a referral to the county attorney under subdivision 3. The board may require the student or parent or guardian to provide evidence of participation in available community services or compliance with any agreement.

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(b) A school attendance review board may refer a student directly to the county attorney or for other appropriate legal action under subdivision 3 if it has established procedures and criteria for these referrals.

Subd. 3. [REFERRAL TO COUNTY ATTORNEY; OTHER APPROPRIATE ACTION.] If the school attendance review board determines that available community services cannot resolve the attendance problems of the truant student or, if the student or the parent or guardian has failed to comply with any referrals or agreements under subdivision 2 or to otherwise cooperate with the board, or if the board determines that a student should be referred directly under this subdivision, the board may:

(1) refer the matter to the county attorney under section 260A.07, if the county attorney has elected to participate in the truancy mediation program; or

(2) if the county attorney has not elected to participate in the truancy mediation program, refer the matter for appropriate legal action against the child or the child's parent or guardian under chapter 260 or section 127.20.

Sec. 33. Laws 1997, First Special Session chapter 4, article 5, section 24, subdivision 4, is amended to read:

Subd. 4. [GRANT AWARDS.] A school district or any group of districts may receive a grant in the amount of $25 per pupil per year. The A grant recipient with 6,000 or more pupils in average daily membership must match one local dollar for every state dollar received. The local match may include in kind contributions. In awarding grants, the commissioner shall consider which students will benefit most from these programs. No grant recipient shall use the grant award to supplant existing funding for gifted and talented programs.

Sec. 34. Laws 1997, First Special Session chapter 4, article 5, section 28, subdivision 4, is amended to read:

Subd. 4. [ADVANCED PLACEMENT AND INTERNATIONAL BACCALAUREATE PROGRAMS.] For the state advanced placement and international baccalaureate programs:

$1,875,000 . . . . . 1998

$1,875,000 . . . . . 1999

Notwithstanding Minnesota Statutes, section 126.239, subdivisions 1 and 2, $200,000 each year is for teachers to attend subject matter summer training programs and follow-up support workshops approved by the advanced placement or international baccalaureate programs. The amount of the subsidy for each teacher attending an advanced placement or international baccalaureate summer training program or workshop shall be the same. The commissioner shall determine the payment process and the amount of the subsidy.

Notwithstanding Minnesota Statutes, section 126.239, subdivision 3, in each year to the extent of available appropriations, the commissioner shall pay all examination fees for all students sitting for an advanced placement examination, international baccalaureate examination, or both. If this amount is not adequate, the commissioner may pay less than the full examination fee.

$300,000 each year is for student scholarships. A student scholarship shall be awarded to a student scoring three or better on one or more advanced placement examinations or a four or better on one or more international baccalaureate examinations. The amount of each scholarship shall range from $150 $75 to $500 based on the student's score on the exams. The scholarships shall be awarded only to students who are enrolled in a Minnesota public or private college or university. The total amount of each scholarship shall be paid directly to the student's designated college or university and must be used by the student only for tuition, required fees, and books in nonsectarian courses or programs. The higher education services office, in consultation with the commissioner, shall determine the payment process, the amount of the scholarships, and provisions for unused scholarships.

In order to be eligible to receive advanced placement or international baccalaureate scholarships on behalf of the qualifying students, the college or university must have an advanced placement, international baccalaureate, or both, credit and placement policy for the scholarship recipients. In addition, each college or university must certify these policies to the department each year. The department must provide each secondary school in the state with a copy of the post-secondary advanced placement and international baccalaureate policies each year.

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$375,000 each year is for teacher stipends. A teacher who teaches an advanced placement or international baccalaureate course shall receive a stipend for each student in that teacher's course who receives a three or better on the advanced placement or a four or better on the international baccalaureate examination that covers the subject matter of the course. The commissioner shall determine the payment process and the amount of the teacher stipend ranging from $25 to $50 for each student receiving a qualifying score.

A stipend awarded to a teacher under this subdivision shall not be a mandatory subject of bargaining under Minnesota Statutes, chapter 179A, or any other law and shall not be a term or condition of employment. The amount of any award shall be final and shall not be subject to review by an arbitrator through any grievance or other process or by a court through any appeal process.

Any balance in the first year does not cancel but is available in the second year.

Sec. 35. Laws 1997, First Special Session chapter 4, article 5, section 28, subdivision 9, is amended to read:

Subd. 9. [COLLABORATIVE URBAN EDUCATOR PROGRAMS.] For grants to collaborative urban educator programs that prepare and license people of color to teach:

$895,000 . . . . . 1998

$500,000 . . . . . 1999

This appropriation is available until June 30, 1999.

Sec. 36. Laws 1997, First Special Session chapter 4, article 5, section 28, subdivision 10, is amended to read:

Subd. 10. [CHARTER SCHOOL BUILDING LEASE AID.] For building lease aid according to section 124.248, subdivision 2a:

$1,078,000 $1,294,000 . . . . . 1998

$1,577,000 $1,889,000 . . . . . 1999

The 1999 appropriation includes $120,000 $143,000 for 1998 and $1,457,000 $1,746,000 for 1999.

Sec. 37. Laws 1997, First Special Session chapter 4, article 5, section 28, subdivision 11, is amended to read:

Subd. 11. [CHARTER SCHOOL START-UP GRANTS.] For charter school start-up cost aid under Minnesota Statutes, section 124.248:

$500,000 $900,000 . . . . . 1998

$1,000,000 . . . . . 1999

The 1999 appropriation includes $100,000 for 1998 and $900,000 for 1999.

Any balance in the first year does not cancel but is available in the second year. This appropriation may also be used for grants to convert existing schools into charter schools.

Sec. 38. Laws 1997 First Special Session, chapter 4, article 5, section 28, subdivision 17, is amended to read:

Subd. 17. [YEAR-ROUND SCHOOL/EXTENDED WEEK OR DAY GRANTS.] For year-round school/extended week or day grants under Laws 1995, First Special Session chapter 3, article 7, section 4:

$1,800,000 . . . . . 1998

$455,000 . . . . . 1999

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The department of children, families, and learning must award grants to school districts with priority given to programs that have not previously received year-round school/extended week or day pilot grants. Of this amount, $500,000 is for a grant to independent school district No. 624, White Bear Lake. Of this amount, $225,000 is for a year-round school extended day project in independent school district No. 911, Cambridge. Of this amount, $200,000 is for the four-period day program at independent school district No. 833, south Washington county. Of the fiscal year 1999 appropriation, $250,000 is for a grant to independent school district No. 241, Albert Lea, $105,000 is for a grant to independent school district No. 200, Hastings, and $100,000 is for a grant to independent school district No. 270, Hopkins. The maximum grant amount for other recipients is $300,000. Grant recipients are required to make reports on progress made, planning, and implementing projects in the form and manner specified by the department of children, families, and learning.

The senior high site councils in the independent school district No. 833, south Washington county, shall develop and implement a model four-period day curriculum during the 1997-1998 and 1998-1999 school years. The site councils shall seek input from parents, teachers, and students in the design and implementation of the four-period day model. If one or more site councils determine a four-period day model is not desirable, the site council shall report its recommendations back to the board and need not proceed with the development and implementation of the model.

The south Washington county school board shall develop a system for monitoring and evaluating the development and implementation of the four-period day models at its high schools. The board shall monitor and evaluate: (1) the process used by the site council to discuss, develop, and implement a four-period day; and (2) the academic outcomes of students after the four-period day has been fully implemented. To evaluate the academic outcomes of students, the district shall compare the academic achievement of its high school students with the achievement of students in similar school districts using a six-period day model. The board shall report the results of its evaluation to the commissioner of children, families, and learning on August 30, 1998, and August 30, 1999. The reports shall include a detailed description of the site-based, decision-making model that was used to develop and implement the four-period day and the steps that were taken to successfully implement and evaluate the model.

Independent school district No. 833, south Washington County, shall complete a class size mitigation pilot project to explore options for improving learning outcomes in elementary and junior high classrooms with 30 or more students. The options for mitigating the adverse impacts of large class sizes shall be developed and implemented using a site-based management decision-making process. The district shall report the results of its pilot project to the commissioner of children, families, and learning by August 30, 1998.

Sec. 39. Laws 1997, First Special Session chapter 4, article 6, section 20, subdivision 4, is amended to read:

Subd. 4. [SCHOOL LUNCH AND FOOD STORAGE AID.] (a) For school lunch aid according to Minnesota Statutes, section 124.646, and Code of Federal Regulations, title 7, section 210.17, and for food storage and transportation costs for United States Department of Agriculture donated commodities; and for a temporary transfer to the commodity processing revolving fund to provide cash flow to permit schools and other recipients of donated commodities to take advantage of volume processing rates and for school milk aid according to Minnesota Statutes, section 124.648:

$7,254,000 . . . . . 1998

$7,254,000 $7,770,000 . . . . . 1999

(b) Any unexpended balance remaining from the appropriations in this subdivision shall be prorated among participating schools based on the number of free, reduced, and fully paid federally reimbursable student lunches served during that school year.

(c) If the appropriation amount attributable to either year is insufficient, the rate of payment for each fully paid student lunch shall be reduced and the aid for that year shall be prorated among participating schools so as not to exceed the total authorized appropriation for that year.

(d) Any temporary transfer processed in accordance with this subdivision to the commodity processing fund will be returned by June 30 in each year so that school lunch aid and food storage costs can be fully paid as scheduled.

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(e) Not more than $800,000 of the amount appropriated each year may be used for school milk aid.

(f) The commissioner may reduce other future aid and grant payments due to school districts and other organizations for the costs of processing and storage of commodities used by the district or organization.

Sec. 40. [GRADUATION RULE RESOURCE GRANTS.]

The commissioner of children, families, and learning shall award grants to develop learning resources for the state's results-oriented graduation rule. The grants are available to:

(1) provide staff development for implementation of the graduation standards, including training in economics, the arts, and training in technology by community members;

(2) establish and equip learning resource centers;

(3) develop and sustain historical educational programming;

(4) make historical collections available via the Internet;

(5) develop a system of graduation rule implementation for alternative programs;

(6) develop systemic site decision-making models and implementing site decision making in schools;

(7) expand attention and reading readiness programs; and

(8) provide for reporting systems.

The commissioner may require a match of private funds as part of the application process.

Sec. 41. [REPORT.]

The commissioner of children, families, and learning, in consultation with the Minnesota state colleges and universities, the University of Minnesota, and the private college council, shall examine the training of teachers entering the workforce in Minnesota. The commissioner shall also consult with the Minnesota federation of teachers and the Minnesota education association for this report. The report shall make recommendations for proposed legislative action to promote a more direct connection between teacher training and student learning needs under the state's results-oriented graduation rule. The commissioner shall seek assistance from the state public policy unit within the Humphrey Institute of Minnesota for existing research in this area for this report. The commissioner shall report its findings to education committees of the legislature by December 1, 1998. The report shall examine at least the following areas:

(1) whether teachers entering the workforce are prepared to meet the basic skills needs and higher learning needs of students under the state's results-oriented graduation rule;

(2) identify teacher skills which are considered crucial to the success of students in a knowledge-based economy and determine if Minnesota colleges and universities are teaching those skills adequately to teachers;

(3) examine the ability of Minnesota colleges and universities to provide training to existing teachers who are seeking further staff development experiences in order to meet the students' needs under the graduation rule; and

(4) identify resources and organizations outside of the colleges and universities that can provide training and teaching experiences necessary to meet the needs of students under the graduation rule.

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Sec. 42. [CLEARINGHOUSE OF BEST EDUCATIONAL PRACTICES.]

(a) The department of children, families, and learning shall establish a clearinghouse of best educational practices and shared decision-making for improving student performance, particularly for at-risk students. The clearinghouse must:

(1) align with all current activities for best educational practice, shared decision-making, and the results-oriented graduation rule;

(2) conduct research and collect information on the best educational practices affecting a school's management, operation, financing, personnel and instruction;

(3) train quality intervention teams composed of highly qualified educators to assist a school's staff in working to improve student performance, particularly for at-risk students, by addressing a school's management, operation, financing, personnel and instruction practices;

(4) develop and make available to interested school districts a model for an independent educational audit that evaluates a school's performance strengths and weaknesses and makes specific recommendations for reinforcing performance strengths and improving performance weaknesses cited in the audit;

(5) using the comprehensive assessment framework under section 121.1115, subdivision 1b, paragraph (a), develop student and school performance indicators schools may use to reliably measure school improvement over time; and

(6) provide staff development opportunities to assist teachers and other educators in integrating educational reform measures into a school's best practices.

(b) The clearinghouse must assist school districts, at district request, and recommend methods to engage parents and communities in improving student performance, particularly for at-risk students.

(c) The clearinghouse must collaborate with and may contract with community stakeholders, including the Minneapolis urban league, the St. Paul urban league, the urban coalition, the council on Asian-Pacific Minnesotans, the Chicano/Latino affairs council, the council on Black Minnesotans, the Indian affairs council, or the communities of color institute and Minneapolis Pathways at the University of Minnesota's Roy Wilkins center.

Sec. 43. [NOTIFICATION TO COMMISSIONER ON COOPERATIVE SPONSORSHIP.]

A school district shall transmit to the commissioner of children, families, and learning information about each decision to deny a home school a cooperative sponsorship under state high school league rules or to otherwise deny a home school student an opportunity to participate in the district's extracurricular activities. The school district shall transmit the information in the form and manner the commissioner requires.

Sec. 44. [COUNSELOR ASSESSMENT.]

The department of children, families, and learning, in consultation with affected groups, shall conduct an assessment of the need for expanding the number of counselors in school districts. As part of the assessment, the department shall consider recommended ratios and the costs of meeting these, alternative strategies for collaboration to provide counseling services to pupils especially in small districts, mechanisms to strengthen collaboration between school districts and local colleges and universities in providing information and experience to pupils, and suggestions for meeting the needs of pupils for counseling that is focused on academic and career needs and planning. The department shall report its findings and recommendations to the education committees of the house and senate as part of its 2000-2001 biennial budget request.

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Sec. 45. [YOUTH ATHLETIC DEMONSTRATION PROGRAM.]

(a) A demonstration athletic grant program through special school district No. 1, Minneapolis, and the Minneapolis park and recreation board is established for children ages seven to 14 at Waite Park school. The goal of the demonstration program is to develop a neighborhood-based athletic program that teaches sports fundamentals to students that will lead to their participation in high school level athletics. The program shall be year-round and shall require both in-school and after-school participation by students. A student who satisfactorily completes the program curriculum shall receive secondary course credit and the credit shall count towards the student's graduation requirements consistent with Minnesota Statutes, section 126.83.

(b) The program shall be established at Waite Park school in Minneapolis where the school facility and park and recreation facility are jointly located and where the school district has established a neighborhood-based school for enrollment purposes. The school district and the park and recreation board shall recruit at-risk students and those students who have not participated in current after-school park programs to participate in the demonstration project.

(c) The program funds shall be used for recreational professionals at the park board to coordinate the program and licensed teachers employed in the district; internships for students at the University of Minnesota, Augsburg College, or other post-secondary institutions to work in the program; master coaches to train coaches; transportation costs; facilities' costs; and assistance to neighborhood park athletic councils.

(d) The school district and the park board shall report to the commissioner of children, families, and learning on the outcome of the program. Up to $10,000 of the appropriation in section 38, subdivision 2, may be used for the planning of a multipurpose community education and recreation center at a northeast park adjacent to a northeast school. The commissioner shall report to the education committees of the legislature on the program and the advisability of creating a statewide program by March 15, 1999.

Sec. 46. [RESIDENTIAL ACADEMIES PROGRAM.]

Subdivision 1. [GRANT RECIPIENT.] The commissioner of children, families, and learning may award grants to public organizations or a collaborative of public and private organizations for capital and start-up costs for residential academies for students in grades 4 through 12 who desire to attend a residential academy, demonstrate an interest in learning and a potential for academic achievement, and who may:

(1) perform or are at risk of performing below the academic performance level for students of the same age or ability; or

(2) have experienced homelessness or an unstable home environment.

Subd. 2. [ENROLLMENT.] Enrollment is voluntary. A parent or guardian, the student's county of residence, the student's school, a health care provider, or the judicial system may recommend a student for admission to an academy.

Subd. 3. [EDUCATIONAL PROGRAMMING.] The education program of a residential academy must be designed to:

(1) increase students' academic achievement;

(2) increase students' school attendance;

(3) enable secondary students to meet the requirements of the state graduation rule; and

(4) improve secondary students' transition to post-secondary education or the transition from school to work.

Subd. 4. [FUNDING.] (a) Education and social services funding shall follow each student from the student's school district or county of residence to the academy as provided by law.

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(b) The cost of residential care for a student may be covered under a sliding fee program based on student need.

(c) An academy may receive any gift, grant, bequest, or devise.

Subd. 5. [AWARDING GRANTS.] The commissioner of children, families, and learning shall prescribe the form and manner of applications. In awarding grants, the commissioner shall consider the quality of the education program, the academy's location, the composition of the academy's governance structure and board, the extent of the collaborative effort among various organizations, the extent of family and community involvement, and whether social services, after-school enrichment, and instruction throughout the entire year are provided. The commissioner shall evaluate the components of the residential academy program described in this section and report to the education committees of the legislature by February 15, 2001.

Sec. 47. [COMMISSIONER OF CHILDREN, FAMILIES, AND LEARNING.]

The commissioner of children, families, and learning shall designate a staff member as a resource person for gifted and talented programs to provide assistance to parents and school districts. The commissioner shall pay all costs for that staff member out of existing department appropriations.

Sec. 48. [GOALS 2000.]

School boards shall not be required to adopt specific provisions of the federal Goals 2000 program as state graduation standards.

Sec. 49. [RESIDENCY REQUIREMENT.]

The magnet schools that are part of the western metropolitan education program must first enroll in the magnet schools those otherwise qualified students who reside within one of the nine participating school districts.

Sec. 50. [TASK FORCE ON TRANSITIONAL ISSUES.]

Subdivision 1. [ESTABLISHMENT; PURPOSE.] A task force on prekindergarten through grade 12 education governance structure is established to examine the transitional issues related to the repeal of the state board of education under section 39, paragraph (b).

Subd. 2. [TASK FORCE MEMBERS.] The task force is composed of one person appointed by the governor, one person appointed by the speaker of the house of representatives, and one person appointed by the subcommittee on committees of the senate committee on rules and administration. The task force may select additional members to serve on the task force.

Subd. 3. [REPORT.] The task force shall submit a report on appropriate statutory changes, if any, to accomplish an orderly elimination of the state board to the chairs of the education committees of the legislature by December 15, 1998.

Sec. 51. [EXAMINATION OF PREKINDERGARTEN THROUGH GRADE 12 EDUCATION GOVERNANCE.]

Subdivision 1. [MEMBERSHIP; EXPENSES.] The coalition for education reform and accountability panel established according to Laws 1993, chapter 224, article 1, section 35, subdivision 3, must update the membership and fill vacancies on the coalition according to the criteria established in Laws 1993, chapter 224, article 1, section 35, subdivision 2. The department of children, families, and learning shall provide technical and other assistance to the panel.

Subd. 2. [STUDY.] The coalition for education reform and accountability must examine alternatives for restructuring the state's prekindergarten through grade 12 education system to optimize student achievement for all children by considering at least the following:

(1) the roles of the legislature, executive branch, and local school boards in policymaking and administering the prekindergarten through grade 12 education system;

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(2) the best structure, excluding funding issues, to anticipate and accommodate the changing demographics of students and staff in the context of a dynamic education system; and

(3) the best structure, excluding funding issues, to maintain a system adaptable to changing societal needs, that is flexible and innovative, and that places the interest of students first.

The coalition shall make recommendations regarding appropriate parameters for the commissioner's rulemaking authority and the extent of necessary legislative direction and oversight of rulemaking activities.

Subd. 3. [REPORT.] The coalition must submit a report of its findings and recommendations to the education committees of the house and senate by December 15, 1998.

Sec. 52. [RECOMMENDATIONS ON A CENTRAL DEPOSITORY OF EMPLOYMENT DATA.]

Subdivision 1. [WORKING GROUP.] The board of teaching shall convene a working group to consider data management policies and appropriate organizing structures and operational practices for a central depository of data containing licensing and employment information about licensed education personnel employed in Minnesota school districts. The working group must include one representative from each of the following organizations: the state board of education; the department of children, families, and learning; the department of administration; the Minnesota school boards association; the Minnesota association of school administrators; the Minnesota association of school personnel administrators; the Minnesota education association; the Minnesota federation of teachers; the Minnesota association of secondary school principals; the Minnesota association of elementary school principals; and any other groups the board determines are relevant. Expenses incurred by working group members must be reimbursed by the agencies and organizations they represent. By December 1, 1998, the board shall submit to the education committees of the legislature the group's recommendations concerning establishing and operating a central depository of employment data on licensed education personnel, including recommended statutory changes. The board shall convene the working group by June 15, 1998.

Subd. 2. [ISSUES TO RESOLVE.] The working group must address at least the following:

(1) to what extent a central database of employment history of licensed education personnel would be useful and how it would operate;

(2) what kinds of post-secondary education records and employment-related data on licensed education personnel should be gathered and stored, including whether to gather and store complaints against licensed education personnel received by the board of teaching or the board of education, or disciplinary actions by the board of teaching or the board of education;

(3) what mechanisms and policies should be developed for reporting state and school district data on licensed education personnel to ensure that stored data are timely and accurate and to ensure the integrity and privacy of the data;

(4) what policies should govern the access of individuals and organizations to the data, including the release of personnel data to prospective school or school district employers;

(5) what should be the extent of liability and immunity from liability for individuals and organizations that release data; and

(6) whether guidelines consistent with this section for hiring education personnel would be useful to school districts.

Sec. 53. [RECOMMENDATIONS FOR ALTERNATIVE SCHOOL YEAR CALENDARS.]

Subdivision 1. [WORKING GROUP.] The commissioner of children, families and learning shall convene a working group to consider alternative school year calendars, including at least 45-15 plans, four-quarter plans, quinmester plans, extended learning year plans, flexible all-year plans, and four-day week plans, and recommend to the legislature those alternative school year calendars that best allow school districts to meet the educational needs of their students. The

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working group must include one representative from each of the following organizations: the Minnesota school boards association; the Minnesota education association; the Minnesota federation of teachers; the Minnesota association of school administrators; the Minnesota association of secondary school principals; the Minnesota elementary school principals' association; the Minnesota association for pupil transportation; the Minnesota association for supervision and curriculum; the Minnesota congress of parents, teachers and students; the Minnesota state high school league; the Minnesota business partnership; and the Minnesota restaurant, hotel and resort associations. By February 1, 1999, the commissioner shall submit the group's recommendations concerning the alternative school year calendars that best allow school districts to meet the educational needs of their students to the chairs of the education committees of the legislature.

Subd. 2. [ISSUE TO RESOLVE.] In recommending to the legislature the alternative school year calendars that best allow school districts to meet the educational needs of their students, the working group must at least consider:

(1) how buildings and other facilities can be optimally used during an entire year;

(2) what the optimal learning year schedule is of elementary and secondary disabled students and staff in schools and residential facilities;

(3) how a district divides its students among its facilities to accommodate an alternative school year calendar;

(4) how a district accommodates an alternative school year calendar in the context of the public employment labor relations act;

(5) what parent involvement is required in establishing an alternative school year calendar;

(6) how school staff is assigned in a district with fewer than all facilities adopting an alternative school year calendar;

(7) how teachers' contracting rights are affected by an alternative school year calendar;

(8) what educational standards and requirements apply to a district operating an alternative school year calendar;

(9) what adjustments of attendance and apportionments of state aid are required; and addressed in an alternative school year calendar.

Sec. 54. [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 years designated.

Subd. 2. [GRADUATION RULE RESOURCE GRANTS.] For graduation rule resource grants:

$3,500,000 . . . . . 1999

Of this amount, $200,000 is for a grant to the Council on Economic Education; $300,000 is to the Lola and Rudy Perpich Center for the Arts to develop arts-related performance packages as part of the state high school graduation rule under Minnesota Statutes, section 121.11, subdivision 7c; $90,000 is for a grant to Murphy's Landing; $40,000 is for a grant to the metropolitan multitype library consortium for copying and distributing Minnesota authors videocassette series; and $300,000 is for a grant to A Chance to Grow/New Visions to acquire the space and technology needed to establish, equip, and operate the Minnesota Learning Resource Center.

The department shall consider grant proposals from the Minnesota Historical Society, the Richard Green Institute, Ironworld, parent or community technology specialists working or volunteering in schools, higher education institutions working in conjunction with a school district or consortium of school districts, and database access programs for public libraries and school media centers.

This is a one-time appropriation.

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Subd. 3. [RESIDENTIAL ACADEMIES.] For grants for residential academies:

$12,000,000 . . . . . 1999

Subd. 4. [YOUTH ATHLETIC DEMONSTRATION PROGRAM.] For a grant to special school district No. 1, Minneapolis, and the Minneapolis park and recreation board to establish a youth athletic demonstration program under section 26:

$ 100,000 . . . . . 1999

Subd. 5. [UNLIMITED POSSIBILITIES PLAN.] For a grant to a nonprofit agency representing the private alternative schools:

$ 100,000 . . . . . 1999

The purpose of the grant is to support the Unlimited Possibilities Plan to assist student transition from secondary school to college or gainful employment including mentoring programs, post-secondary training, career exploration, and placement services. The grant recipient must match state funds with an equal amount of funds raised from nonpublic sources.

This appropriation does not cancel but is available until June 30, 2000.

Subd. 6. [CLEARINGHOUSE OF BEST EDUCATIONAL PRACTICES.] For a clearinghouse of best educational practices according to section 19:

$2,000,000 . . . . . 1999

Of this amount, $500,000 is for a contract with an institution of higher education for the purposes of Minnesota Statutes, section 121.1115, subdivisions 1b and 1c.

Subd. 7. [MODEL DISTANCE LEARNING GRANT; LAKE OF THE WOODS.] For a grant to independent school district No. 390, Lake of the Woods, for developing a model distance learning program:

$ 250,000 . . . . . 1999

The model program must address students' curriculum needs for vocational programs, advanced collegiate level courses, gifted and talented programming, programming for students with disabilities, and other areas of programming made more difficult because of the school district's geographic isolation.

Sec. 55. [REVISOR'S INSTRUCTION.]

In the next and subsequent editions of Minnesota Statutes and Minnesota Rules, all references to the state board of education shall be changed to the commissioner of children, families, and learning. The changes made by the revisor shall be effective December 31, 1999.

Sec. 56. [REPEALER.]

Minnesota Statutes 1996, section 121.02, is repealed effective December 31, 1999.

Sec. 57. [EFFECTIVE DATES.]

(a) Sections 5, 28, and 33 are effective for the 1998-1999 school year and thereafter.

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(b) Section 9 is effective for the profile of learning of the graduation rule authorized under Minnesota Statutes, section 121.11, subdivision 7c, and adopted after January 1, 1998.

(c) Sections 7, 34, 43, 50, 51, and 52 are effective the day following final enactment.

Sections 14 to 27 are effective December 31, 1999.

ARTICLE 6

EDUCATION POLICY ISSUES

Section 1. Minnesota Statutes 1996, section 120.17, subdivision 7a, is amended to read:

Subd. 7a. [ATTENDANCE AT SCHOOL FOR THE DISABLED.] Responsibility for special instruction and services for a visually disabled or hearing impaired child attending the Minnesota state academy for the deaf or the Minnesota state academy for the blind shall be determined in the following manner:

(a) The legal residence of the child shall be the school district in which the child's parent or guardian resides.

(b) When it is determined pursuant to section 128A.05, subdivision 1 or 2, that the child is entitled to attend either school, the state board of the Faribault academies shall provide the appropriate educational program for the child. The state board of the Faribault academies shall make a tuition charge to the child's district of residence for the cost of providing the program. The amount of tuition charged shall not exceed the basic revenue of the district for that child, for the amount of time the child is in the program. For purposes of this subdivision, "basic revenue" has the meaning given it in section 124A.22, subdivision 2. The district of the child's residence shall pay the tuition and may claim general education aid for the child. Tuition received by the state board of the Faribault academies, except for tuition received under clause (c), shall be deposited in the state treasury as provided in clause (g).

(c) In addition to the tuition charge allowed in clause (b), the academies may charge the child's district of residence for the academy's unreimbursed cost of providing an instructional aide assigned to that child, if that aide is required by the child's individual education plan. Tuition received under this clause must be used by the academies to provide the required service.

(d) When it is determined that the child can benefit from public school enrollment but that the child should also remain in attendance at the applicable school, the school district where the institution is located shall provide an appropriate educational program for the child and shall make a tuition charge to the state board of the Faribault academies for the actual cost of providing the program, less any amount of aid received pursuant to section 124.32. The state board of the Faribault academies shall pay the tuition and other program costs including the unreimbursed transportation costs. Aids for children with a disability shall be paid to the district providing the special instruction and services. Special transportation shall be provided by the district providing the educational program and the state shall reimburse such district within the limits provided by law.

(e) Notwithstanding the provisions of clauses (b) and (d), the state board of the Faribault academies may agree to make a tuition charge for less than the amount specified in clause (b) for pupils attending the applicable school who are residents of the district where the institution is located and who do not board at the institution, if that district agrees to make a tuition charge to the state board of the Faribault academies for less than the amount specified in clause (d) for providing appropriate educational programs to pupils attending the applicable school.

(f) Notwithstanding the provisions of clauses (b) and (d), the state board of the Faribault academies may agree to supply staff from the Minnesota state academy for the deaf and the Minnesota state academy for the blind to participate in the programs provided by the district where the institutions are located when the programs are provided to students in attendance at the state schools.

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(g) On May 1 of each year, the state board of the Faribault academies shall count the actual number of Minnesota resident kindergarten and elementary students and the actual number of Minnesota resident secondary students enrolled and receiving education services at the Minnesota state academy for the deaf and the Minnesota state academy for the blind. The state board of the Faribault academies shall deposit in the state treasury an amount equal to all tuition received less:

(1) the total number of students on May 1 less 175, times the ratio of the number of kindergarten and elementary students to the total number of students on May 1, times the general education formula allowance; plus

(2) the total number of students on May 1 less 175, times the ratio of the number of secondary students on May 1 to the total number of students on May 1, times 1.3, times the general education formula allowance.

(h) The sum provided by the calculation in clause (g), subclauses (1) and (2), must be deposited in the state treasury and credited to the general operation account of the academy for the deaf and the academy for the blind.

(i) There is annually appropriated to the department of children, families, and learning for the Faribault academies the tuition amounts received and credited to the general operation account of the academies under this section. A balance in an appropriation under this paragraph does not cancel but is available in successive fiscal years.

Sec. 2. Minnesota Statutes 1996, section 121.14, is amended to read:

121.14 [RECOMMENDATIONS; BUDGET.]

The state board and the commissioner of children, families, and learning shall recommend to the governor and legislature such modification and unification of laws relating to the state system of education as shall make those laws more readily understood and more effective in execution. The commissioner of children, families, and learning shall prepare a biennial education budget which shall be submitted to the governor and legislature, such budget to contain a complete statement of finances pertaining to the maintenance of the state department and to the distribution of state aid.

Sec. 3. Minnesota Statutes 1996, section 121.148, subdivision 3, is amended to read:

Subd. 3. [NEGATIVE REVIEW AND COMMENT.] (a) If the commissioner submits a negative review and comment for a proposal according to section 121.15, the following steps must be taken:

(1) the commissioner must notify the school board of the proposed negative review and comment and schedule a public meeting within 60 days of the notification within that school district to discuss the proposed negative review and comment on the school facility; and

(2) the school board shall appoint an advisory task force of up to five members to advise the school board and the commissioner on the advantages, disadvantages, and alternatives to the proposed facility at the public meeting. One member of the advisory task force must also be a member of the county facilities group.

(b) After attending the public meeting, the commissioner shall reconsider the proposal. If the commissioner submits a negative review and comment, the school board may appeal that decision to the state board of education under chapter 14. The state board of education may either uphold the commissioner's negative review and comment or instruct the commissioner to submit a positive or unfavorable review and comment on the proposed facility.

(c) A school board may not proceed with construction if the state board of education upholds the commissioner's negative review and comment is upheld or if the commissioner's negative review and comment is not appealed.

Sec. 4. Minnesota Statutes 1996, section 121.16, is amended by adding a subdivision to read:

Subd. 4. [UNIFORM SYSTEM OF RECORDS AND ACCOUNTING.] The commissioner of children, families, and learning shall prepare a uniform system of records for public schools and require reports from superintendents and principals of schools, teachers, school officers, and the chief officers of public and other educational institutions to give

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such facts as it may deem of public value. All reports required of school districts by the commissioner shall be in conformance with the uniform financial accounting and reporting system. With the cooperation of the state auditor, the commissioner shall establish and carry into effect a uniform system of accounting by public school officers and shall have authority to supervise and examine the accounts and other records of all public schools.

Sec. 5. Minnesota Statutes 1996, section 121.16, is amended by adding a subdivision to read:

Subd. 5. [GENERAL SUPERVISION OVER EDUCATIONAL AGENCIES.] The commissioner of children, families, and learning shall adopt goals for and exercise general supervision over public schools and public educational agencies in the state, classify and standardize public elementary and secondary schools, and prepare for them outlines and suggested courses of study. The commissioner shall develop a plan to attain the adopted goals. The commissioner may recognize educational accrediting agencies for the sole purposes of sections 120.101, 120.102, and 120.103.

Sec. 6. Minnesota Statutes 1996, section 121.16, is amended by adding a subdivision to read:

Subd. 6. [ADMINISTRATIVE RULES.] The commissioner may adopt new rules and amend them or amend any existing rules only under specific authority. The commissioner may repeal any existing rules. Notwithstanding the provisions of section 14.05, subdivision 4, the commissioner may grant a variance to rules adopted by the commissioner upon application by a school district for purposes of implementing experimental programs in learning or school management. This subdivision shall not prohibit the commissioner from making technical changes or corrections to adopted rules.

Sec. 7. Minnesota Statutes 1996, section 121.16, is amended by adding a subdivision to read:

Subd. 7. [LICENSURE RULES.] The commissioner may make rules relating to licensure of school personnel not licensed by the board of teaching.

Sec. 8. Minnesota Statutes 1996, section 121.16, is amended by adding a subdivision to read:

Subd. 8. [GENERAL EDUCATION DEVELOPMENT TESTS RULES.] The commissioner may amend rules to reflect changes in the national minimum standard score for passing the general education development (GED) tests.

Sec. 9. Minnesota Statutes 1996, section 121.16, is amended by adding a subdivision to read:

Subd. 9. [UNIFORM FORMS FOR STATE EXAMINATIONS.] Upon the request of any superintendent of any public or private school teaching high school courses in the state, the commissioner shall designate or prepare uniform forms for state examinations in each high school subject during the month of May of each year; the request shall be in writing and delivered to the commissioner before January 1 of that year.

Sec. 10. Minnesota Statutes 1996, section 121.16, is amended by adding a subdivision to read:

Subd. 10. [EVENING SCHOOLS.] The commissioner shall exercise general supervision over the public evening schools, adult education programs, and summer programs.

Sec. 11. Minnesota Statutes 1996, section 121.16, is amended by adding a subdivision to read:

Subd. 11. [TEACHER RULE VARIANCES.] Notwithstanding any law to the contrary, and only upon receiving the agreement of the state board of teaching, the commissioner of children, families, and learning may grant a variance to rules governing licensure of teachers for those teachers licensed by the board of teaching. The commissioner may grant a variance, without the agreement of the board of teaching, to rules adopted by the commissioner governing licensure of teachers for those teachers the commissioner licenses.

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Sec. 12. Minnesota Statutes 1996, section 121.16, is amended by adding a subdivision to read:

Subd. 12. [SCHOOL LUNCH PROGRAM; REVOLVING FUND.] The commissioner of finance shall establish for the commissioner of children, families, and learning a revolving fund for deposit of storage and handling charges paid by recipients of donated foods shipped by the school lunch section of the department of children, families, and learning. These funds are to be used only to pay storage and related charges as they are incurred for United States Department of Agriculture foods.

The commissioner of finance shall also establish a revolving fund for the department of children, families, and learning to deposit charges paid by recipients of processed commodities and for any authorized appropriation transfers for the purpose of this subdivision. These funds are to be used only to pay for commodity processing and related charges as they are incurred using United States Department of Agriculture donated commodities.

Sec. 13. Minnesota Statutes 1996, section 121.1601, subdivision 2, is amended to read:

Subd. 2. [COORDINATION.] The commissioner shall coordinate the office activities under subdivision 1 with new or existing department and state board of education efforts to accomplish school desegregation/integration. The commissioner may request information or assistance from, or contract with, any state or local agency or officer, local unit of government, or recognized expert to assist the commissioner in performing the activities described in subdivision 1.

Sec. 14. Minnesota Statutes 1996, section 122.23, subdivision 2b, is amended to read:

Subd. 2b. [ORDERLY REDUCTION PLAN.] As part of the resolution required by subdivision 2, the school board must prepare a plan for the orderly reduction of the membership of the board to six or seven members and a plan for the establishment or dissolution of election districts. The plan may shorten any or all terms of incumbent board members to achieve the orderly reduction. The plan must be submitted to the secretary of state for review and comment.

Sec. 15. Minnesota Statutes 1996, section 122.23, subdivision 6, is amended to read:

Subd. 6. The commissioner shall, upon receipt of a plat, forthwith examine it and approve, modify or reject it. The commissioner shall also approve or reject any proposal contained in the resolution or petition regarding the disposition of the bonded debt of the component districts. If the plat shows the boundaries of proposed separate election districts and if the commissioner modifies the plat, the commissioner shall also modify the boundaries of the proposed separate election districts. The commissioner shall conduct a hearing public meeting at the nearest county seat in the area upon reasonable notice to the affected districts and county boards if requested within 20 days after submission of the plat. Such a hearing The public meeting may be requested by the board of any affected district, a county board of commissioners, or the petition of 20 resident voters living within the area proposed for consolidation. The commissioner shall endorse on the plat action regarding any proposal for the disposition of the bonded debt of component districts and the reasons for these actions and within after a minimum of 20 days, but no more than 60 days of the date of the receipt of the plat, the commissioner shall return it to the county auditor who submitted it. The commissioner shall furnish a copy of that plat, and the supporting statement and its endorsement to the auditor of each county containing any land area of the proposed new district. If land area of a particular county was included in the plat, as submitted by the county auditor, and all of such land area is excluded in the plat as modified and approved, the commissioner shall also furnish a copy of the modified plat, supporting statement, and any endorsement to the auditor of such county.

Sec. 16. Minnesota Statutes 1996, section 123.34, subdivision 9, is amended to read:

Subd. 9. [SUPERINTENDENT.] All districts maintaining a classified secondary school shall employ a superintendent who shall be an ex officio nonvoting member of the school board. The authority for selection and employment of a superintendent shall be vested in the school board in all cases. An individual employed by a school board as a superintendent shall have an initial employment contract for a period of time no longer than three years from the date of employment. Any subsequent employment contract must not exceed a period of three years. A school board, at its discretion, may or may not renew an employment contract. A school board shall not, by action or inaction, extend the duration of an existing employment contract. Beginning 365 days prior to the expiration date of an existing employment contract, a school board may negotiate and enter into a subsequent employment contract to take effect upon the expiration

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of the existing contract. A subsequent contract shall be contingent upon the employee completing the terms of an existing contract. If a contract between a school board and a superintendent is terminated prior to the date specified in the contract, the school board may not enter into another superintendent contract with that same individual that has a term that extends beyond the date specified in the terminated contract. A school board may terminate a superintendent during the term of an employment contract for any of the grounds specified in section 125.12, subdivision 6 or 8. A superintendent shall not rely upon an employment contract with a school board to assert any other continuing contract rights in the position of superintendent under section 125.12. Notwithstanding the provisions of sections 122.532, 122.541, 125.12, subdivision 6a or 6b, or any other law to the contrary, no individual shall have a right to employment as a superintendent based on order of employment in any district. If two or more school districts enter into an agreement for the purchase or sharing of the services of a superintendent, the contracting districts have the absolute right to select one of the individuals employed to serve as superintendent in one of the contracting districts and no individual has a right to employment as the superintendent to provide all or part of the services based on order of employment in a contracting district. The superintendent of a district shall perform the following:

(1) visit and supervise the schools in the district, report and make recommendations about their condition when advisable or on request by the board;

(2) recommend to the board employment and dismissal of teachers;

(3) superintend school grading practices and examinations for promotions;

(4) make reports required by the commissioner of children, families, and learning; and

(5) by January 10, submit an annual report to the commissioner in a manner prescribed by the commissioner, in consultation with school districts, identifying the expenditures that the district requires to ensure an 80 percent and a 90 percent student passage rate on the basic standards test taken in the eighth grade, identifying the amount of expenditures that the district requires to ensure a 99 percent student passage rate on the basic standards test by 12th grade, and how much the district is cross-subsidizing programs with special education, compensatory, and general education revenue; and

(6) perform other duties prescribed by the board.

Sec. 17. Minnesota Statutes 1996, 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 four fiscal year years, 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.

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(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.

(g) Notwithstanding any limitations imposed under this subdivision, a school district may, according to section 123.36, subdivision 10, enter into a lease of all or a portion of a schoolhouse that is not needed for school purposes, including, but not limited to, a lease with a term of more than one year.

Sec. 18. Minnesota Statutes 1996, section 123.3514, is amended by adding a subdivision to read:

Subd. 4f. [PARTICIPATION IN HIGH SCHOOL ACTIVITIES.] Enrolling in a course under this section shall not, by itself, prohibit a pupil from participating in activities sponsored by the pupil's high school.

Sec. 19. Minnesota Statutes 1996, section 123.39, subdivision 1, is amended to read:

Subdivision 1. The board may provide for the transportation of pupils to and from school and for any other purpose. The board may also provide for the transportation of pupils to schools in other districts for grades and departments not maintained in the district, including high school, at the expense of the district, when funds are available therefor and if agreeable to the district to which it is proposed to transport the pupils, for the whole or a part of the school year, as it may deem advisable, and subject to its rules. In any school district, the board shall arrange for the attendance of all pupils living two miles or more from the school, except pupils whose transportation privileges have been revoked under section 123.805, subdivision 1, clause (6), or 123.7991, paragraph (b), or whose privileges have been voluntarily surrendered under subdivision 1a, through suitable provision for transportation or through the boarding and rooming of the pupils who may be more economically and conveniently provided for by that means. Arrangements for attendance

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may include a requirement that parents or guardians request transportation before it is provided. The board shall provide transportation to and from the home of a child with a disability not yet enrolled in kindergarten when special instruction and services under sections 120.17 and 120.1701 are provided in a location other than in the child's home. When transportation is provided, scheduling of routes, establishment of the location of bus stops, manner and method of transportation, control and discipline of school children and any other matter relating thereto shall be within the sole discretion, control, and management of the school board. The district may provide for the transportation of pupils or expend a reasonable amount for room and board of pupils whose attendance at school can more economically and conveniently be provided for by that means or who attend school in a building rented or leased by a district within the confines of an adjacent district.

Sec. 20. Minnesota Statutes 1996, section 123.39, is amended by adding a subdivision to read:

Subd. 1a. [VOLUNTARY SURRENDER OF TRANSPORTATION PRIVILEGES.] The parent or guardian of a secondary student may voluntarily surrender the secondary student's to and from school transportation privileges granted under subdivision 1.

Sec. 21. Minnesota Statutes 1996, section 123.805, subdivision 1, is amended to read:

Subdivision 1. [COMPREHENSIVE POLICY.] Each school district shall develop and implement a comprehensive, written policy governing pupil transportation safety, including transportation of nonpublic school students, when applicable. The policy shall, at minimum, contain:

(1) provisions for appropriate student bus safety training under section 123.7991;

(2) rules governing student conduct on school buses and in school bus loading and unloading areas;

(3) a statement of parent or guardian responsibilities relating to school bus safety;

(4) provisions for notifying students and parents or guardians of their responsibilities and the rules;

(5) an intradistrict system for reporting school bus accidents or misconduct, and a system for dealing with local law enforcement officials in cases of criminal conduct on a school bus, and a system for reporting accidents, crimes, incidents of misconduct, and bus driver dismissals to the department of public safety under section 169.452;

(6) a discipline policy to address violations of school bus safety rules, including procedures for revoking a student's bus riding privileges in cases of serious or repeated misconduct;

(7) a system for integrating school bus misconduct records with other discipline records;

(8) a statement of bus driver duties;

(9) planned expenditures for safety activities under section 123.799 and, where applicable, provisions governing bus monitor qualifications, training, and duties;

(10) rules governing the use and maintenance of type III vehicles, drivers of type III vehicles, qualifications to drive a type III vehicle, qualifications for a type III vehicle and the circumstances under which a student may be transported in a type III vehicle;

(11) operating rules and procedures;

(12) provisions for annual bus driver in-service training and evaluation;

(13) emergency procedures;

(14) a system for maintaining and inspecting equipment;

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(15) requirements of the school district, if any, that exceed state law minimum requirements for school bus operations; and

(16) requirements for basic first aid training, which shall include the Heimlich maneuver and procedures for dealing with obstructed airways, shock, bleeding, and seizures.

School districts are encouraged to use the model policy developed by the Minnesota school boards association, the department of public safety, and the department of children, families, and learning, as well as the current edition of the "National Standards for School Buses and Operations" published by the National Safety Council, in developing safety policies. Each district shall submit a copy of its policy under this subdivision to the school bus safety advisory committee no later than August 1, 1994. Each district shall review its policy annually and make appropriate amendments, which must be submitted to the school bus safety advisory committee within one month of approval by the school board.

Sec. 22. Minnesota Statutes 1996, section 124.078, is amended to read:

124.078 [PERMANENT SCHOOL FUND ADVISORY COMMITTEE.]

A state permanent school fund advisory committee is established to advise the department of natural resources on the management of permanent school fund land, which is held in trust for the school districts of the state. The advisory committee shall consist of the following persons or their designees: the chairs of the education committees of the legislature, the chairs of the senate committee on finance and house committee on ways and means, the commissioner of children, families, and learning, one superintendent from a nonmetropolitan district, and one superintendent from a metropolitan area district. The school district superintendents shall be appointed by the commissioner of children, families, and learning.

The advisory committee shall review the policies of the department of natural resources and current statutes on management of school trust fund lands at least semiannually and shall recommend necessary changes in statutes, policy, and implementation in order to ensure provident utilization of the permanent school fund lands.

Sec. 23. Minnesota Statutes 1996, section 124.225, subdivision 7f, is amended to read:

Subd. 7f. [RESERVED REVENUE FOR TRANSPORTATION SAFETY.] A district shall reserve an amount equal to the greater of $500 or $1.50 times the number of fund balance pupil units, for that school year to provide student transportation safety programs under section 123.799. This revenue may only be used if the district complies with the reporting requirements of section 123.7991, 123.805, 169.452, 169.4582, or 171.321, subdivision 5.

Sec. 24. Minnesota Statutes 1996, section 124.225, subdivision 8m, is amended to read:

Subd. 8m. [TRANSPORTATION SAFETY AID.] A district's transportation safety aid equals the district's reserved revenue for transportation safety under subdivision 7f for that school year. Failure of a school district to comply with the reporting requirements of section 123.7991, 123.805, 169.452, 169.4582, or 171.321, subdivision 5, may result in a withholding of that district's transportation safety aid for that school year.

Sec. 25. Minnesota Statutes 1996, section 124.646, subdivision 4, is amended to read:

Subd. 4. [SCHOOL FOOD SERVICE FUND.] (a) The expenses described in this subdivision must be recorded as provided in this subdivision.

(b) In each school district, the expenses for a school food service program for pupils must be attributed to a school food service fund. Under a food service program, the school food service may prepare or serve milk, meals, or snacks in connection with school or community service activities.

(c) Revenues and expenditures for food service activities must be recorded in the food service fund. The costs of processing applications, accounting for meals, preparing and serving food, providing kitchen custodial services, and other expenses involving the preparing of meals or the kitchen section of the lunchroom may be charged to the food service fund or to the general fund of the district. The costs of lunchroom supervision, lunchroom custodial services, lunchroom utilities, and other administrative costs of the food service program must be charged to the general fund.

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That portion of superintendent and fiscal manager costs that can be documented as attributable to the food service program may be charged to the food service fund provided that the school district does not employ or contract with a food service director or other individual who manages the food service program, or food service management company. If the cost of the superintendent or fiscal manager is charged to the food service fund, the charge must be at a wage rate not to exceed the statewide average for food service directors as determined by the department of children, families, and learning.

(d) Capital expenditures for the purchase of food service equipment must be made from the capital general fund and not the food service fund, unless two conditions apply:

(1) the unreserved balance in the food service fund at the end of the last fiscal year is greater than the cost of the equipment to be purchased; and

(2) the department of children, families, and learning has approved the purchase of the equipment.

(e) If the two conditions set out in paragraph (d) apply, the equipment may be purchased from the food service fund.

(f) If a deficit in the food service fund exists at the end of a fiscal year, and the deficit is not eliminated by revenues from food service operations in the next fiscal year, then the deficit must be eliminated by a permanent fund transfer from the general fund at the end of that second fiscal year. However, if a district contracts with a food service management company during the period in which the deficit has accrued, the deficit must be eliminated by a payment from the food service management company.

(g) Notwithstanding paragraph (f), a district may incur a deficit in the food service fund for up to three years without making the permanent transfer if the district submits to the commissioner by January 1 of the second fiscal year a plan for eliminating that deficit at the end of the third fiscal year.

(h) If a surplus in the food service fund exists at the end of a fiscal year for three successive years, a district may recode for that fiscal year the costs of lunchroom supervision, lunchroom custodial services, lunchroom utilities, and other administrative costs of the food service program charged to the general fund according to paragraph (c) and charge those costs to the food service fund in a total amount not to exceed the amount of surplus in the food service fund.

Sec. 26. Minnesota Statutes 1997 Supplement, section 124.6475, is amended to read:

124.6475 [SUMMER FOOD SERVICE REPLACEMENT AID.]

States funds are available to compensate department-approved summer food program sponsors for reduced federal operating reimbursement rates under Public Law Number 104-193, the federal summer food service program. A sponsor is eligible for summer food service replacement aid equal to the sum of the following amounts:

(1) for breakfast service, subtract the current year maximum reimbursement rate from the 1996 maximum reimbursement rate and multiply the result by the number of breakfasts the district served up to four cents per breakfast served by the sponsor during the current school program year;

(2) for lunch or supper service, subtract the current year maximum reimbursement rate from the 1996 maximum reimbursement rate and multiply the result by the number of lunches and suppers the district served up to 14 cents per lunch or supper served by the sponsor during the current school program year; and

(3) for supplement service, subtract the current year maximum reimbursement rate from the 1996 maximum reimbursement rate and multiply the result by the number of up to ten cents per supplement meals served by the district served sponsor during the current school program year.

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Sec. 27. Minnesota Statutes 1997 Supplement, section 124.648, subdivision 3, is amended to read:

Subd. 3. [PROGRAM GUIDELINES; DUTIES OF THE COMMISSIONER.] (a) The commissioner shall:

(1) encourage all districts to participate in the school milk program for kindergartners;

(2) prepare program guidelines, not subject to chapter 14 until July 1, 1998, which will effectively and efficiently distribute appropriated and donated money to participating districts; and

(3) seek donations and matching funds from appropriate private and public sources.

(b) Program guidelines may provide for disbursement to districts through a mechanism of prepayments or by reimbursement for approved program expenses.

(c) It is suggested that the benefits of the school milk program may reach the largest number of kindergarten students if districts are allowed to submit annual bids stating the per-serving level of support that would be acceptable to the district for their participation in the program. The commissioner would review all bids received and approve bids in sufficient number and value to maximize the provision of milk to kindergarten students consistent with available funds.

Sec. 28. Minnesota Statutes 1996, section 125.191, is amended to read:

125.191 [LICENSE AND DEGREE EXEMPTION FOR HEAD COACH.]

Notwithstanding section 125.03, subdivision 1, a school district may employ as a head varsity coach of an interscholastic sport at its secondary school a person who does not have a license as head varsity coach of interscholastic sports and who does not have a bachelor's degree if:

(1) in the judgment of the school board, the person has the knowledge and experience necessary to coach the sport;

(2) the position has been posted as a vacancy within the present teaching staff for a period of 30 days and no licensed coaches have applied for the position;

(3) the person can verify completion of six quarter credits, or the equivalent, or 60 clock hours of instruction in first aid and the care and prevention of athletic injuries; and

(4) the person (3) can verify completion of a coaching methods or theory course.

Notwithstanding section 125.121, a person employed as a head varsity coach under this section has an annual contract as a coach that the school board may or may not renew as the board sees fit, after annually posting the position as required in clause (2) and no licensed coach has applied for the position.

Sec. 29. Minnesota Statutes 1996, section 126.12, subdivision 1, is amended to read:

Subdivision 1. Except for learning programs during summer, flexible learning year programs authorized under sections 120.59 to 120.67, and learning year programs under section 121.585, a school district shall not commence an elementary or secondary school year prior to Labor Day September 1. Days which are devoted to teachers' workshops may be held before Labor Day September 1. Districts that enter into cooperative agreements are encouraged to adopt similar school calendars.

Sec. 30. Minnesota Statutes 1997 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

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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 or cutaway front section vehicle with a left-side driver's door, designed for carrying more than ten persons. This definition includes two classifications: type A-I, with a gross vehicle weight rating (GVWR) over 10,000 pounds; and type A-II, with a GVWR of 10,000 pounds or less.

(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, 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 in service after January 1, 1999, having a maximum an original maximum manufacturer's rated seating capacity of ten or fewer 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. 31. Minnesota Statutes 1996, section 169.451, subdivision 5, is amended to read:

Subd. 5. [RANDOM SPOT INSPECTIONS.] In addition to the annual inspection, the Minnesota state patrol has authority to conduct random, unannounced spot inspections of any school bus or Head Start bus being operated within the state at the location where the bus is kept when not in operation to ascertain whether its construction, design, equipment, and color comply it is in compliance with all provisions of law, including the Minnesota school bus equipment standards in sections 169.4501 to 169.4504, subject to the procedures approved by the commissioner.

Sec. 32. Minnesota Statutes 1997 Supplement, section 290.0674, subdivision 1, is amended to read:

Subdivision 1. [CREDIT ALLOWED.] An individual is allowed a credit against the tax imposed by this chapter in an amount equal to the amount paid for education-related expenses for a dependent in kindergarten through grade 12. For purposes of this section, "education-related expenses" means:

(1) fees or tuition for instruction by an instructor under section 120.101, subdivision 7, clause (1), (2), (3), (4), or (5), for instruction outside the regular school day or school year, including tutoring, driver's education taken offered as part of school curriculum, regardless of whether it is taken from a public or private entity or summer camps, in grade or age appropriate curricula that supplement curricula and instruction available during the regular school year, that assists a dependent to improve knowledge of core curriculum areas or to expand knowledge and skills under the graduation rule under section 121.11, subdivision 7c, and that do not include the teaching of religious tenets, doctrines, or worship, the purpose of which is to instill such tenets, doctrines, or worship;

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(2) expenses for textbooks, including books and other instructional materials and equipment used in elementary and secondary schools in teaching only those subjects legally and commonly taught in public elementary and secondary schools in this state. "Textbooks" does not include instructional books and materials used in the teaching of religious tenets, doctrines, or worship, the purpose of which is to instill such tenets, doctrines, or worship, nor does it include books or materials for extracurricular activities including sporting events, musical or dramatic events, speech activities, driver's education, or similar programs;

(3) a maximum expense of $200 per family for personal computer hardware, excluding single purpose processors, and educational software that assists a dependent to improve knowledge of core curriculum areas or to expand knowledge and skills under the graduation rule under section 121.11, subdivision 7c, purchased for use in the taxpayer's home and not used in a trade or business regardless of whether the computer is required by the dependent's school; and

(4) the amount paid to others for transportation of a dependent attending an elementary or secondary school situated in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, wherein a resident of this state may legally fulfill the state's compulsory attendance laws, which is not operated for profit, and which adheres to the provisions of the Civil Rights Act of 1964 and chapter 363.

Sec. 33. [COMMISSIONER OF CHILDREN, FAMILIES, AND LEARNING.]

The commissioner of children, families, and learning shall apply directly to the Internal Revenue Service to obtain access to federal income tax information for the purpose of determining state school aids. If the commissioner's request is approved, then the commissioner shall report to the education committees of the legislature on the changes needed in state statute.

Sec. 34. [ACCELERATED TRANSITION PLAN.]

Notwithstanding Minnesota Statutes, section 122.23, subdivision 2b, or other law to the contrary, independent school district No. 2884, Red Rock Central, is authorized to terminate all existing school board members' terms by the first Monday in January 1999, and to hold elections for seven school board members at the 1998 school district general election under Minnesota Statutes, section 205A.04. Of the seven board members elected, three members shall be elected to serve four-year terms and four members shall be elected to serve two-year terms. Only one board member from each election district shall be elected to serve a four-year term. Candidates must specify in their affidavit the election district and the term of office to which they are seeking election. The school board members elected at the 1998 school district general election shall assume office on the first Monday in January 1999. The school board of independent school district No. 2884, Red Rock Central, then shall consist of seven members until such time as the electors in the school district vote on a proposition favoring a six-member board under Minnesota Statutes, section 123.33, subdivision 1.

Sec. 35. [SCHOOL YEAR START DATE.]

Subdivision 1. [BUFFALO.] Notwithstanding Minnesota Statutes, section 126.12, subdivision 1, and Laws 1997, First Special Session chapter 4, article 7, section 49, subdivision 1, for the 1998-1999 and 1999-2000 school years only, independent school district No. 877, Buffalo, may begin the school year any day prior to Labor Day.

Subd. 2. [SARTELL.] Notwithstanding Minnesota Statutes, section 126.12, subdivision 1, and Laws 1997, First Special Session chapter 4, article 7, section 49, subdivision 1, independent school district No. 748, Sartell, may begin the 1998-1999 school year before Labor Day only by the number of days necessary to accommodate the district building construction project.

Subd. 3. [HOLDINGFORD.] Notwithstanding Minnesota Statutes, section 126.12, subdivision 1, and Laws 1997, First Special Session chapter 4, article 7, section 49, subdivision 1, independent school district No. 738, Holdingford, may begin the 1998-1999 school year on the Monday prior to Labor Day.

Subd. 4. [BROWNS VALLEY.] Notwithstanding Minnesota Statutes, section 126.12, subdivision 1, and Laws 1997 First Special Session, chapter 4, article 7, section 49, subdivision 1, independent school district No. 801, Browns Valley, may begin the 1998-99 school year on August 24, 1998, to accommodate its shared school calendar with the Sisseton, South Dakota, school district.

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Subd. 5. [FARIBAULT ACADEMIES.] Notwithstanding Minnesota Statutes, section 126.12, subdivision 1, and Laws 1997, First Special Session chapter 4, article 7, section 49, subdivision 1, for the 1998-1999 and 1999-2000 school years only, Faribault Academies may begin the school year any day prior to Labor Day.

Subd. 6. [CROOKSTON.] Notwithstanding Minnesota Statutes, section 126.12, subdivision 1, and Laws 1997, First Special Session chapter 4, article 7, section 49, subdivision 1, for the 1998-1999 school year only, independent school district No. 593, Crookston, may begin the school year any day prior to Labor Day.

Subd. 7. [FERTILE-BELTRAMI.] Notwithstanding Minnesota Statutes, section 126.12, subdivision 1, and Laws 1997, First Special Session chapter 4, article 7, section 49, subdivision 1, for the 1998-1999 school year only, independent school district No. 599, Fertile-Bertrami, may begin the school year any day prior to Labor Day.

Subd. 8. [FISHER.] Notwithstanding Minnesota Statutes, section 126.12, subdivision 1, and Laws 1997, First Special Session chapter 4, article 7, section 49, subdivision 1, for the 1998-1999 school year only, independent school district No. 600, Fisher, may begin the school year any day prior to Labor Day.

Sec. 36. [FUND TRANSFERS.]

Subdivision 1. [ADA-BORUP.] Notwithstanding Minnesota Statutes, section 124.83, subdivision 6, independent school district No. 2854, Ada-Borup, may use up to $90,000 of its health and safety revenue for capital improvements, equipment, or furnishings for new facilities.

Subd. 2. [LYND.] Notwithstanding Minnesota Statutes, sections 121.912 and 121.9121, on June 30, 1998, independent school district No. 415, Lynd, may permanently transfer $100,000 from reserve accounts in the general fund to the unreserved general fund. The transfer may be made from the reemployment account and the bus purchase account. Transfers from the reemployment and bus purchase accounts may be made without making a levy reduction.

Subd. 3. [RUSSELL.] Notwithstanding Minnesota Statutes, section 121.912 or 121.9121, on June 30, 1998, independent school district No. 418, Russell, may permanently transfer up to $150,000 from its capital expenditure fund to the district's general fund. The transfer must not include health and safety or handicapped access revenue.

Subd. 4. [WIN-E-MAC.] Notwithstanding Minnesota Statutes, section 121.912 or 121.9121, on June 30, 1998, independent school district No. 2609, Win-E-Mac, may permanently transfer the balance of its health and safety account to its building construction fund. This is an eligible expenditure of health and safety revenue.

Sec. 37. [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 years designated.

Subd. 2. [MEDIA SPECIALIST.] For a media specialist for independent school district No. 707, Nett Lake:

$ 34,000 . . . . . 1999

Sec. 38. [REPEALER.]

(a) Minnesota Statutes 1996, section 121.11, subdivisions 5, 7, 7b, 9, 11, 12, and 14; and Minnesota Statutes 1997 Supplement, section 121.11, subdivision 7e, are repealed effective December 31, 1999.

(b) Minnesota Statutes 1996, section 121.11, subdivision 7d, is repealed effective January 10, 1999.

(c) Minnesota Statutes 1996, section 124.647; and Minnesota Statutes 1997 Supplement, section 169.452, are repealed.

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Sec. 39. [EFFECTIVE DATES.]

(a) Sections 1 to 13 are effective December 31, 1999.

(b) Sections 14, 28, 34, and 35 are effective the day following final enactment.

(c) Sections 17, 25, and 26 are effective July 1, 1998.

(d) Section 29 is effective for the 2000-2001 school year.

(e) Section 36 is effective June 30, 1998.

ARTICLE 7

LIBRARIES

Section 1. Laws 1997, First Special Session chapter 4, article 8, section 4, subdivision 3, is amended to read:

Subd. 3. [BOARD; APPOINTMENTS.] The resolution in subdivision 2 shall provide for a library board of five seven members as follows: two members appointed by the school board of independent school district No. 319, one member appointed by each town board located within independent school district No. 319 boundaries, one member appointed by the council of the city of Nashwauk, and one member appointed by the Itasca county board to represent the unorganized towns within the school district territory.

Sec. 2. [APPROPRIATION; DEPARTMENT OF CHILDREN, FAMILIES, AND LEARNING.]

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

Subd. 2. [REGIONAL LIBRARY SYSTEMS.] For regional library systems:

$250,000 . . . . . 1999

The money must be divided equally among the 12 regional public library systems established under Minnesota Statutes, section 134.20, for use in providing library services.

Subd. 3. [LIBRARY FOR THE BLIND; APPROPRIATION.] For the purchase and installation of online catalog software for the Minnesota library for the blind and physically handicapped:

$60,000 . . . . . 1999

ARTICLE 8

STATE AGENCIES

Section 1. Laws 1997, First Special Session chapter 4, article 10, section 3, subdivision 2, is amended to read:

Subd. 2. [DEPARTMENT.] For the department of children, families, and learning:

$24,360,000 $24,810,000 . . . . . 1998

$23,978,000 $24,428,000 . . . . . 1999

(a) Any balance in the first year does not cancel but is available in the second year.

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(b) $21,000 each year is from the trunk highway fund.

(c) $622,000 in 1998 and $627,000 in 1999 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 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 1998 does not cancel but is available in 1999. The amount carried forward must not be used to establish a larger annual base appropriation for later fiscal years.

(d) $207,000 in 1998 and $210,000 in 1999 is for the state board of education.

(e) $230,000 in 1998 and $234,000 in 1999 is for the board of teaching.

(f) 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.

(g) The department of 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 must include data to indicate the progress of the department in meeting its goals and objectives.

(h) At least $50,000 is to ensure compliance with state and federal laws prohibiting discrimination because of race, religion, or sex. The department shall use the appropriation to provide state-level leadership on equal education opportunities which promote elimination of discriminatory practices in the areas of race, religion, and sex in public schools and public educational agencies under its general supervision and on activities including, at least, compliance monitoring and voluntary compliance when local school district deficiencies are found.

(i) Notwithstanding Minnesota Statutes, section 15.53, subdivision 2, the commissioner of children, families, and learning may contract with a school district for a period no longer than five consecutive years to work in the development or implementation of the graduation rule. The commissioner may contract for services and expertise as necessary. The contracts are not subject to Minnesota Statutes, sections 16B.06 to 16B.08.

(j) In preparing the department budget for fiscal years 2000-2001, the department shall shift all administrative funding from aids appropriations into the appropriation for the department.

(k) Reallocations of excesses under Minnesota Statutes, section 124.14, subdivision 7, from appropriations within this act shall only be made to deficiencies in programs with appropriations contained within this act.

(l) $850,000 $1,300,000 each year is for costs associated with educational adequacy litigation costs and may only be used for those purposes. These appropriations are one-time only. Amounts appropriated for one year of the biennium may be used for the other.

(m) Collaborative efforts between the department of children, families, and learning and the office of technology, as specified in Minnesota Statutes, section 237A.015, include:

(1) advising the commissioner of children, families, and learning on new and emerging technologies, potential business partnerships, and technical standards;

(2) assisting the commissioner of children, families, and learning in the sharing of data between state agencies relative to children's programs; and

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(3) as requested by the commissioner of children, families, and learning, assisting in collaborative efforts for joint prekindergarten through grade 12 and higher education projects, including the learning network.

The commissioner of children, families, and learning shall have final approval for prekindergarten through grade 12 programs and lifelong learning programs, grant awards, and funding decisions.

Sec. 2. Laws 1997, First Special Session chapter 4, article 10, section 4, is amended to read:

Sec. 4. [APPROPRIATIONS; LOLA AND RUDY PERPICH MINNESOTA CENTER FOR ARTS EDUCATION.]

The sums indicated in this section are appropriated from the general fund to the center for arts education for the fiscal years designated:

$5,541,000 $5,559,000 . . . . . 1998

$6,054,000 $6,120,000 . . . . . 1999

Of the fiscal year 1998 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 1999 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, and $30,000 is for staff development activities related to implementation of the graduation rule. The guidelines for the education residency project and the pass program shall be developed and defined by the center for arts education in cooperation with the Minnesota arts board. The Minnesota arts board shall participate in the review and allocation process. The center for arts education and the Minnesota arts board shall cooperate to fund these projects.

Any balance in the first year does not cancel but is available in the second year.

Sec. 3. Laws 1997, First Special Session chapter 4, article 10, section 5, is amended to read:

Sec. 5. [APPROPRIATIONS; FARIBAULT ACADEMIES.]

The sums indicated in this section are appropriated from the general fund to the department of children, families, and learning for the Faribault academies for the fiscal years designated:

$8,910,000 $8,949,000 . . . . . 1998

$8,908,000 $8,986,000 . . . . . 1999

Any balance in the first year does not cancel but is available in the second year.

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. 4. [EFFECTIVE DATE.]

Sections 1 to 3 are effective the day following final enactment.

ARTICLE 9

MISCELLANEOUS

Section 1. [123.3517] [STUDENT ACHIEVEMENT LEVELS.]

Subdivision 1. [STATE EXPECTATIONS; PLAN.] (a) Each school year, a school district must determine if the student achievement levels at each school site meet state expectations. If student achievement levels at a school site do not meet state expectations for two out of three consecutive school years, beginning with the 1999-2000 school year, the

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district must work with the school site to adopt a plan to raise student achievement levels to state expectations. The legislature will determine state expectations after receiving a recommendation from the commissioner of children, families, and learning. The commissioner must submit its recommendations to the legislature by December 15, 1998.

(b) The department must assist the district and the school site in developing a plan to improve student achievement. The plan must include parental involvement components.

Sec. 2. [145.9266] [FETAL ALCOHOL SYNDROME CAMPAIGN AND EDUCATION.]

Subdivision 1. [PUBLIC AWARENESS AND EDUCATION.] The commissioner of health shall design and implement an ongoing statewide campaign to raise awareness and educate the public about fetal alcohol syndrome and other effects of prenatal alcohol exposure. The campaign shall include messages directed to the general population as well as culturally specific and community-based messages. A toll-free resource and referral telephone line shall be included in the messages. The commissioner of health shall conduct an evaluation to determine the effectiveness of the campaign.

Subd. 2. [STATEWIDE NETWORK OF FETAL ALCOHOL SYNDROME DIAGNOSTIC CLINICS.] A statewide network of regional fetal alcohol syndrome diagnostic clinics shall be developed between the department of health and the University of Minnesota. This collaboration shall be based on a statewide needs assessment and shall include involvement from consumers, providers, and payors. By the end of calendar year 1998, a plan shall be developed for the clinic network, and shall include a comprehensive evaluation component. Sites shall be established in calendar year 1999. The commissioner shall not access or collect individually identifiable data for the statewide network of regional fetal alcohol syndrome diagnostic clinics. Data collected at the clinics shall be maintained according to applicable data privacy laws, including section 144.335.

Subd. 3. [PROFESSIONAL TRAINING AND EDUCATION ABOUT FETAL ALCOHOL SYNDROME.] (a) The commissioner of health, in collaboration with the board of medical practice, the board of nursing, and other professional boards and state agencies, shall develop curricula and materials about fetal alcohol syndrome for professional training of health care providers, social service providers, educators, and judicial and corrections systems professionals. The training and curricula shall increase knowledge and develop practical skills of professionals to help them address the needs of at-risk pregnant women and the needs of individuals affected by fetal alcohol syndrome or fetal alcohol effects and their families.

(b) Training for health care providers shall focus on skill building for screening, counseling, referral, and follow-up for women using or at risk of using alcohol while pregnant. Training for health care professionals shall include methods for diagnosis and evaluation of fetal alcohol syndrome and fetal alcohol effects. Training for education, judicial, and corrections professionals shall involve effective education strategies, methods to identify the behaviors and learning styles of children with alcohol-related birth defects, and methods to identify available referral and community resources.

(c) Training and education for social service providers shall focus on resources for assessing, referring, and treating at-risk pregnant women, changes in the mandatory reporting and commitment laws, and resources for affected children and their families.

Subd. 4. [FETAL ALCOHOL SYNDROME COMMUNITY GRANT EDUCATION PROGRAM.] The commissioner of health shall administer a grant education program to provide money to community organizations and coalitions to collaborate on fetal alcohol syndrome prevention and intervention strategies and activities. The commissioner shall disburse grant money through a request for proposal process or sole-source distribution where appropriate, and shall include at least one grant award for transitional skills and services for individuals with fetal alcohol syndrome or fetal alcohol effects.

Subd. 5. [SCHOOL PILOT PROGRAMS.] (a) The commissioner of children, families, and learning shall award up to four grants to schools for pilot programs to identify and implement effective educational strategies for individuals with fetal alcohol syndrome and other alcohol-related birth defects.

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(b) One grant shall be awarded in each of the following age categories:

(1) birth to three years;

(2) three to five years;

(3) six to 12 years; and

(4) 13 to 18 years.

(c) Grant proposals must include an evaluation plan, demonstrate evidence of a collaborative or multisystem approach, provide parent education and support, and show evidence of a child- and family-focused approach consistent with research-based best educational practices and other guidelines developed by the department of children, families, and learning.

(d) Children participating in the pilot program sites may be identified through child find activities or a diagnostic clinic. No identification activity may be undertaken without the consent of a child's parent or guardian.

Subd. 6. [FETAL ALCOHOL COORDINATING BOARD; DUTIES.] (a) The fetal alcohol coordinating board consists of:

(1) the commissioners of health, human services, corrections, public safety, economic security, and children, families, and learning;

(2) the director of the office of strategic and long-range planning;

(3) the chair of the maternal and child health advisory task force established by section 145.881, or the chair's designee;

(4) a representative of the University of Minnesota academic health center, appointed by the provost;

(5) five members from the general public appointed by the governor, one of whom must be a family member of an individual with fetal alcohol syndrome or fetal alcohol effect; and

(6) one member from the judiciary appointed by the chief justice of the supreme court.

Terms, compensation, removal, and filling of vacancies of appointed members are governed by section 15.0575. The board shall elect a chair from its membership to serve a one-year term. The commissioner of health shall provide staff and consultant support for the board. Support must be provided based on an annual budget and work plan developed by the board. The board shall contract with the department of health for necessary administrative services. Administrative services include personnel, budget, payroll, and contract administration. The board shall adopt an annual budget and work program.

(b) Board duties include:

(1) reviewing programs of state agencies that involve fetal alcohol syndrome and coordinating those that are interdepartmental in nature;

(2) providing an integrated and comprehensive approach to fetal alcohol syndrome prevention and intervention strategies both at a local and statewide level;

(3) approving on an annual basis the statewide public awareness campaign as designed and implemented by the commissioner of health under subdivision 1;

(4) reviewing fetal alcohol syndrome community grants administered by the commissioner of health under subdivision 4; and

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(5) submitting a report to the governor on January 15 of each odd-numbered year summarizing board operations, activities, findings, and recommendations, and fetal alcohol syndrome activities throughout the state.

(c) The board expires on January 1, 2001.

Subd. 7. [FEDERAL FUNDS; CONTRACTS; DONATIONS.] The fetal alcohol coordinating board may apply for, receive, and disburse federal funds made available to the state by federal law or rules adopted for any purpose related to the powers and duties of the board. The board shall comply with any requirements of federal law, rules, and regulations in order to apply for, receive, and disburse funds. The board may contract with or provide grants to public and private nonprofit entities. The board may accept donations or grants from any public or private entity. Money received by the board must be deposited in a separate account in the state treasury and invested by the state board of investment. The amount deposited, including investment earnings, is appropriated to the board to carry out its duties. Money deposited in the state treasury shall not cancel.

Sec. 3. Minnesota Statutes 1996, section 254A.17, subdivision 1, is amended to read:

Subdivision 1. [MATERNAL AND CHILD SERVICE PROGRAMS.] (a) The commissioner shall fund maternal and child health and social service programs designed to improve the health and functioning of children born to mothers using alcohol and controlled substances. Comprehensive programs shall include immediate and ongoing intervention, treatment, and coordination of medical, educational, and social services through a child's preschool years. Programs shall also include research and evaluation to identify methods most effective in improving outcomes among this high-risk population. The commissioner shall ensure that the programs are available on a statewide basis to the extent possible with available funds.

(b) The commissioner of human services shall develop models for the treatment of children ages 6 to 12 who are in need of chemical dependency treatment. The commissioner shall fund at least two pilot projects with qualified providers to provide nonresidential treatment for children in this age group. Model programs must include a component to monitor and evaluate treatment outcomes.

Sec. 4. Minnesota Statutes 1996, section 254A.17, is amended by adding a subdivision to read:

Subd. 1b. [INTERVENTION, EDUCATION, AND ADVOCACY PROGRAM.] Within the limits of money available, the commissioner of human services shall fund voluntary hospital-based outreach programs targeted at women who deliver children affected by prenatal alcohol or drug use. The program shall help women obtain treatment, stay in recovery, and plan any future pregnancies. An advocate shall be assigned to each woman in the program to provide education, guidance, and advice with respect to treatment programs, child safety and parenting, housing, family planning, and any other personal issues that are barriers to remaining free of chemical dependence. The commissioner shall develop an evaluation component and provide centralized coordination of the evaluation process.

Sec. 5. Laws 1996, chapter 412, article 12, section 12, subdivision 5, is amended to read:

Subd. 5. [REPORT.] By January 1, 1999 2000, the selected district shall submit a report to the commissioner on the program with recommendations for expanding it or making changes.

Sec. 6. Laws 1997, First Special Session chapter 4, article 9, section 12, subdivision 6, is amended to read:

Subd. 6. [ELECTRONIC CURRICULUM RESOURCE.] For support of electronic curriculum development:

$4,000,000 . . . . . 1998

Of this amount, $2,700,000 is for the electronic curriculum resource under section 5, $1,000,000 of which is for the collaborative arts project in section 5, subdivision 1, paragraph (c), clause (5).

Of this amount, $300,000 is for the purposes of the Gopher Biology Shareware Project under section 5, subdivision 1, paragraph (c), clause (1).

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The department may use up to $100,000 for quality control of the curriculum repository.

This appropriation is available until June 30, 1999.

Sec. 7. [DATABASE ACCESS PROGRAM FOR PUBLIC LIBRARIES AND SCHOOL MEDIA CENTERS.]

Subdivision 1. [ESTABLISHMENT.] The commissioner of children, families, and learning shall establish a program to provide statewide licenses to commercial electronic databases of periodicals, encyclopedias, and associated reference materials for school media centers and public libraries. The commissioner, in consultation with Minitex and in cooperation with the Library Planning Task Force, shall solicit proposals for access licenses to commercial vendors of the databases. Responses to those proposals shall be evaluated by staff of the office of library development and services in the department of children, families, and learning, Minitex staff, and a representative panel of school media specialists and public librarians.

Subd. 2. [ELIGIBILITY.] Access to the selected databases shall be made available to a school or school district that is a member of a multicounty, multitype library system as defined in Minnesota Statutes, section 134.001, subdivision 6, or a public library as defined in Minnesota Statutes, section 134.001, subdivision 2, that is a member of a multicounty, multitype library system. With appropriate authentication any user of an eligible library may have access to the databases from a remote site.

Subd. 3. [RESOURCE GRANTS.] Graduation rule resource grants are available for the purposes of this section.

Sec. 8. [CITY OF EAST GRAND FORKS; APPROPRIATION.]

$650,000 is appropriated in fiscal year 1998 from the general fund to the department of public safety for a grant to the city of East Grand Forks to make a loan for the nonfederal share of flood costs for educational facilities in East Grand Forks.

Sec. 9. [APPROPRIATIONS.]

(a) $5,000,000 is appropriated in 1999 from the general fund to the commissioner of health for the fetal alcohol syndrome initiative in section 2.

(b)(1) Of the appropriation in paragraph (a), $5,000,000 in fiscal year 1999 is from the general fund to the commissioner for the fetal alcohol syndrome/fetal alcohol effect (FAS/FAE) initiatives specified in paragraphs (2) to (11).

(2) Of the amount in paragraph (a), $200,000 is transferred to the commissioner of children, families, and learning for school-based pilot programs to identify and implement effective educational strategies for individuals with FAS/FAE.

(3) Of the amount in paragraph (a), $800,000 is for the public awareness campaign under Minnesota Statutes, section 145.9266, subdivision 1.

(4) Of the amount in paragraph (a), $400,000 is to develop a statewide network of regional FAS diagnostic clinics under Minnesota Statutes, section 145.9266, subdivision 2.

(5) Of the amount in paragraph (a), $150,000 is for professional training about FAS under Minnesota Statutes, section 145.9266, subdivision 3.

(6) Of the amount in paragraph (a), $350,000 is for the fetal alcohol coordinating board under Minnesota Statutes, section 145.9266, subdivision 6.

(7) Of the amount in paragraph (a), $800,000 is transferred to the commissioner of human services to expand the maternal and child health social service programs under Minnesota Statutes, section 254A.17, subdivision 1.

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(8) Of the amount in paragraph (a), $200,000 is for the commissioner to study the extent of fetal alcohol syndrome in the state.

(9) Of the amount in paragraph (a), $400,000 is transferred to the commissioner of human services for the intervention and advocacy program under Minnesota Statutes, section 254A.17, subdivision 1b.

(10) Of the amount in paragraph (a), $850,000 is for the FAS community grant program under Minnesota Statutes, section 145.9266, subdivision 4.

(11) Of the amount in paragraph (a), $850,000 is transferred to the commissioner of human services to expand treatment services and halfway houses for pregnant women and women with children who abuse alcohol during pregnancy.

(c) Notwithstanding chapter 645 or any other law to the contrary, if the fetal alcohol syndrome initiative in this article is enacted into law in the same or a substantially similar form during the 1998 regular legislative session in S. F. No. 3346 or other legislation, then the provisions in section 2 and this subdivision are not effective.

Sec. 10. [EFFECTIVE DATES.]

Sections 1, 6, and 8 are effective the day following final enactment."

Delete the title and insert:

"A bill for an act relating to state government; education and educational programs; kindergarten through grade 12; providing for general education; special education; interagency service, lifelong learning, and technology; facilities and organization; policies promoting academic excellence; education policy issues; libraries; state agencies; miscellaneous provisions; appropriating money; amending Minnesota Statutes 1996, sections 43A.17, subdivisions 9 and 10; 120.03, subdivision 1; 120.06, subdivision 2a; 120.064, subdivision 5; 120.101, subdivision 3; 120.17, subdivisions 1, 2, 3, 3a, 3b, 6, 7, 7a, 9, and 15; 120.1701, subdivisions 2, 5, 11, and 17; 120.173, subdivisions 1 and 6; 120.73, subdivision 1; 121.11, subdivision 7d; 121.1115, by adding a subdivision; 121.14; 121.148, subdivision 3; 121.16, by adding subdivisions; 121.1601, subdivision 2; 121.908, subdivisions 2 and 3; 122.23, subdivisions 2b and 6; 123.34, subdivision 9; 123.35, subdivision 19a; 123.3514, by adding a subdivision; 123.39, subdivision 1, and by adding a subdivision; 123.805, subdivision 1; 123.935, subdivisions 1 and 2; 124.078; 124.14, subdivision 7, and by adding a subdivision; 124.17, subdivision 2; 124.225, subdivisions 7f and 8m; 124.248, subdivisions 1 and 1a; 124.2713, subdivision 6a; 124.2727, subdivisions 6a and 6c; 124.273, by adding a subdivision; 124.32, by adding a subdivision; 124.3201, subdivision 5; 124.323, by adding a subdivision; 124.646, subdivision 4; 124.755, subdivision 1; 124.83, subdivision 8; 124.85, subdivision 4; 124.91, subdivision 6; 124.95, subdivision 6; 124A.03, subdivisions 2b and 3c; 124A.034, subdivision 2; 124A.036, subdivisions 1a, 4, 6, and by adding a subdivision; 124A.22, by adding a subdivision; 124A.29, subdivision 1; 124A.292, subdivision 3; 124A.30; 124C.45, subdivision 2; 124C.47; 124C.48, by adding a subdivision; 125.183, subdivisions 1 and 3; 125.191; 126.12, subdivision 1; 126.237; 126.70, subdivision 2a; 127.27, subdivision 2; 128A.02, subdivisions 1, 3, 3b, 5, 6, and by adding subdivisions; 128A.022; 128A.023, subdivisions 1 and 2; 128A.026, subdivisions 1 and 3; 128A.07, subdivision 2; 169.451, subdivision 5; 254A.17, subdivision 1, and by adding a subdivision; 256B.0625, subdivision 26; 260.015, subdivision 19; 260.131, subdivision 1b; 260.132, subdivision 1; 260A.05, subdivision 2; 260A.06; and 268.665, subdivision 3; Minnesota Statutes 1997 Supplement, sections 120.064, subdivision 3; 120.101, subdivision 5; 120.1701, subdivision 3; 120.181; 121.11, subdivision 7c; 121.1113, subdivision 1; 121.15, subdivision 6; 121.904, subdivision 4a; 124.17, subdivisions 4, 6, and 7; 124.195, subdivision 7; 124.248, subdivisions 2a and 6; 124.2601, subdivisions 3 and 6; 124.2711, subdivision 2a; 124.2713, subdivision 6; 124.3111, subdivision 2; 124.3201, subdivision 2; 124.6475; 124.648, subdivision 3; 124.91, subdivisions 1 and 5; 124A.036, subdivision 5; 124A.22, subdivisions 1, 2, 11, and 13b; 124A.23, subdivision 1; 124A.28, subdivisions 1 and 1a; 124C.46, subdivisions 1 and 2; 126.79, subdivisions 3, 6, 7, 8, and 9; 127.27, subdivisions 10 and 11; 127.31, subdivision 15; 127.32; 127.36, subdivision 1; 127.38; 128A.02, subdivision 7; 169.01, subdivision 6; 268.665, subdivision 2; and 290.0674, subdivision 1; Laws 1992, chapter 499, article 7, section 31; Laws 1993, chapter 224, article 3, section 32; Laws 1996, chapter 412, article 12, section 12, subdivision 5; Laws 1997, chapter 157, section 71; Laws 1997, First Special Session chapter 4, article 1, sections 58 and 61, subdivision 3; article 2, section 51, subdivisions 2, 4, 5, 25, 29, and 33; article 3, sections 23, by adding a subdivision, and 25, subdivision 4; article 4, sections 34 and 35, subdivision 9; article 5, sections 24, subdivision 4, and 28,

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subdivisions 4, 9, 10, 11, 12, and 17; article 6, section 20, subdivision 4; article 8, section 4, subdivision 3; article 9, sections 11 and 12, subdivision 6; article 10, sections 3, subdivision 2, 4, and 5; proposing coding for new law in Minnesota Statutes, chapters 120; 121; 123; 124A; and 145; repealing Minnesota Statutes 1996, sections 121.02; 121.11, subdivisions 5, 7, 7b, 7d, 9, 11, 12, and 14; 121.904, subdivision 4c; 124.2601, subdivision 4; 124.2713, subdivision 6b; 124.2727, subdivision 6b; 124.647; and 124A.292, subdivisions 2 and 4; Minnesota Statutes 1997 Supplement, sections 121.11, subdivision 7e; 124.2601, subdivision 5; 124.912, subdivisions 2 and 3; and 169.452; Laws 1993, chapter 146, article 5, section 20; and Laws 1997, chapter 231, article 1, section 17; Minnesota Rules, part 3525.2750, subpart 1, item B."

We request adoption of this report and repassage of the bill.

House Conferees: Becky Kelso, Mindy Greiling, Len Biernat, Robert Leighton and Jerry Dempsey.

Senate Conferees: Lawrence J. Pogemiller, Jane Krentz, Martha R. Robertson, Sandra L. Pappas and Kenric J. Scheevel.

Kelso moved that the report of the Conference Committee on H. F. No. 2874 be adopted and that the bill be repassed as amended by the Conference Committee.

Sviggum moved that the House refuse to adopt the Conference Committee report on H. F. No. 2874, that the present House Conference Committee be discharged, that the Speaker appoint a new Conference Committee on the part of the House, and that the bill be returned to the Conference Committee.

A roll call was requested and properly seconded.

LAY ON THE TABLE

Kelso moved that the Conference Committee Report on H. F. No. 2874 be laid on the table temporarily. The motion prevailed and the Conference Committee Report on H. F. No. 2874 was laid on the table.

SPECIAL ORDERS, Continued

S. F. No. 2082 which was temporarily laid over earlier today on Special Orders was again reported to the House.

Kelso moved to amend S. F. No. 2082 as follows:

Page 31, delete lines 20 to 22 and insert:

"Sec. 57. [REPEALER.]

Minnesota Statutes 1996, section 120.90, is repealed."

Page 316, delete lines 17 to 19 and insert:

"Sec. 102. [REPEALER.]

Minnesota Statutes 1996, sections 122.532, subdivision 1; and 122.541, subdivision 3, are repealed."

Journal of the House - 109th Day - Thursday, April 9, 1998 - Top of Page 9833

Page 383, delete lines 7 to 9 and insert:

"Sec. 123. [REPEALER.]

Minnesota Statutes 1996, section 123.35, subdivision 10, is repealed."

Page 536 to page 537, delete section 42

Page 586, delete lines 16 to 19 and insert:

"Sec. 2. [REPEALER.]

Minnesota Statutes 1996, section 127.01, is repealed."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

Sviggum moved to amend S. F. No. 2082, as amended, as follows:

Page 586, after line 8, insert:

"ARTICLE 11

HIGH SCHOOL LEAGUE

Section 1. Minnesota Statutes 1997 Supplement, section 128C.12, subdivision 1, is amended to read:

Subdivision 1. [DUES AND EVENTS REVENUE.] The state auditor annually must examine the accounts of, and audit all money paid to, the state high school league by its members. The audit must include financial and compliance issues. The state auditor must also audit all money derived from any event sponsored by the league. League audits must include audits of The state auditor may audit administrative regions of the league. The league and its Administrative regions of the league may not contract with private auditors. The scope of the state auditor's examinations of the league must be agreed upon by the board and the state auditor, provided that all requirements of this section must be met."

Page 586, line 9, delete "11" and insert "12"

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Sviggum amendment and the roll was called.

Journal of the House - 109th Day - Thursday, April 9, 1998 - Top of Page 9834

Winter moved that those not voting be excused from voting. The motion prevailed.

There were 60 yeas and 67 nays as follows:

Those who voted in the affirmative were:

Anderson, B. Davids Jaros Molnau Rifenberg Tingelstad
Anderson, I. Dehler Kielkucki Mulder Rostberg Tompkins
Bettermann Dempsey Knoblach Ness Seagren Tuma
Bishop Erickson Kuisle Nornes Seifert Van Dellen
Boudreau Finseth Larsen Olson, M. Solberg Vandeveer
Bradley Goodno Lindner Ozment Stanek Weaver
Broecker Gunther Mares Paulsen Stang Westfall
Clark, J. Haas McCollum Pawlenty Sviggum Westrom
Commers Harder McElroy Pugh Swenson, H. Wolf
Daggett Holsten Milbert Reuter Sykora Workman

Those who voted in the negative were:

Abrams Folliard Kahn Long Otremba, M. Trimble
Bakk Garcia Kalis Mahon Paymar Tunheim
Biernat Greiling Kelso Mariani Pelowski Wagenius
Carlson Hasskamp Kinkel Marko Peterson Wejcman
Chaudhary Hausman Knight McGuire Rest Wenzel
Clark, K. Hilty Koskinen Mullery Rhodes Winter
Dawkins Huntley Kraus Munger Rukavina Spk. Carruthers
Delmont Jefferson Krinkie Murphy Schumacher
Entenza Jennings Kubly Olson, E. Sekhon
Erhardt Johnson, A. Leighton Opatz Skare
Evans Johnson, R. Leppik Orfield Skoglund
Farrell Juhnke Lieder Osthoff Tomassoni

The motion did not prevail and the amendment was not adopted.

Weaver and Tuma moved to amend S. F. No. 2082, as amended, as follows:

Page 586, after line 15, insert:

"Sec. 2. Minnesota Statutes, 1996, section 124.32, subdivision 13, as added by 1998 H. F. No. 2874, article 2, section 26, if enacted, is amended to read:

Subd. 13. [LITIGATION AND HEARING COSTS.] (a) For fiscal year 1999 and thereafter, the commissioner of children, families, and learning, or the commissioner's designee, shall use state funds to pay school districts for the administrative costs of a due process hearing incurred under section 120.17, subdivision 3b, paragraphs (e), (h), and (i), including hearing officer fees, court reporter fees, mileage costs, transcript costs, independent evaluations ordered by the hearing officer, and rental of hearing rooms, but not including district attorney fees. To receive state aid under this paragraph, a school district shall submit to the commissioner at the end of the school year an itemized list of unreimbursed actual costs for fees and other expenses under this paragraph. State funds used for aid to school districts under this paragraph shall be based on the unreimbursed actual costs and fees submitted by a district from previous school years.

(b) For fiscal year 1999 and thereafter, a school district, to the extent to which it prevails under United States Code, title 20, section 1415(i)(3)(B)(D) and Rule 68 of the Federal Rules of Civil Procedure, shall receive state aid equal to 50 percent of the total actual cost of attorney fees incurred after a request for a due process hearing under section 120.17,

Journal of the House - 109th Day - Thursday, April 9, 1998 - Top of Page 9835

subdivision 3b, paragraphs (e), (h), and (i), is served upon the parties. A district is eligible for reimbursement for attorney fees under this paragraph only if:

(1) a court of competent jurisdiction determines that the parent is not the prevailing party under United States Code, title 20, section 1415(i)(3)(B)(D), or the parties stipulate that the parent is not the prevailing party;

(2) the district has made a good faith effort to resolve the dispute through mediation, but the obligation to mediate does not compel the district to agree to a proposal or make a concession; and

(3) the district made an offer of settlement under Rule 68 of the Federal Rules of Civil Procedure.

To receive aid, a school district that meets the criteria of this paragraph shall submit to the commissioner at the end of the school year an itemized list of unreimbursed actual attorney fees associated with a due process hearing under section 120.17, subdivision 3b, paragraphs (e), (h), and (i). Aid under this paragraph for each school district is based on unreimbursed actual attorney fees submitted by the district from previous school years.

(c) For fiscal year 1999 and thereafter, a school district is eligible to receive state aid for 50 percent of the total actual cost of attorney fees it incurs in appealing to a court of competent jurisdiction the findings, conclusions, and order of a due process hearing under section 120.17, subdivision 3b, paragraphs (e), (h) and (i). The district is eligible for reimbursement under this paragraph only if the commissioner authorizes the reimbursement after evaluating the merits of the case. In a case where the commissioner is a named party in the litigation, the commissioner of the bureau of mediation services shall make the determination regarding reimbursement. The commissioner's decision is final.

(d) The commissioner shall provide districts with a form on which to annually report litigation costs under this section and shall base aid estimates on those reports."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The Speaker called Opatz to the Chair.

The question was taken on the Weaver and Tuma amendment and the roll was called.

Winter moved that those not voting be excused from voting. The motion prevailed.

There were 57 yeas and 72 nays as follows:

Those who voted in the affirmative were:

Anderson, B. Dehler Johnson, A. Molnau Rostberg Tuma
Bettermann Delmont Kielkucki Mulder Seagren Tunheim
Boudreau Dempsey Knight Ness Seifert Van Dellen
Bradley Erickson Krinkie Nornes Smith Weaver
Broecker Finseth Larsen Olson, M. Stanek Westfall
Clark, J. Goodno Lindner Osskopp Stang Westrom
Clark, K. Gunther Long Paymar Sviggum Workman
Commers Haas Macklin Reuter Swenson, H.
Daggett Harder Mares Rhodes Tingelstad
Davids Holsten McCollum Rifenberg Tompkins

Journal of the House - 109th Day - Thursday, April 9, 1998 - Top of Page 9836

Those who voted in the negative were:

Abrams Garcia Kalis Mariani Otremba, M. Slawik
Anderson, I. Greiling Kelso Marko Paulsen Solberg
Bakk Hasskamp Kinkel McElroy Pawlenty Sykora
Biernat Hausman Knoblach McGuire Pelowski Tomassoni
Bishop Hilty Koskinen Milbert Peterson Trimble
Carlson Huntley Kraus Mullery Pugh Vandeveer
Chaudhary Jaros Kubly Munger Rest Wagenius
Dawkins Jefferson Kuisle Murphy Rukavina Wejcman
Erhardt Jennings Leighton Olson, E. Schumacher Wenzel
Evans Johnson, R. Leppik Opatz Sekhon Winter
Farrell Juhnke Lieder Orfield Skare Wolf
Folliard Kahn Mahon Osthoff Skoglund Spk. Carruthers

The motion did not prevail and the amendment was not adopted.

Tuma, Kuisle and Sviggum moved to amend S. F. No. 2082, as amended, as follows:

Page 586, after line 33, insert:

"Sec. 4. [COORDINATED FACILITIES PLANS.]

For grants for coordinated facilities plans:

$1,000,000 . . . . . 1999

Of this amount, $200,000 is for the independent school district for each of the following communities: Dassel-Cokato, Kenyon-Wanamingo, LeCenter, Northfield, and Owatonna. The grants shall be used to examine and coordinate the districts' building needs. Each district must evaluate how the current use of its facilities is affecting its educational services and examine cost efficiencies that may result from a coordinated facilities plan. The grants may be used for operating purposes, transportation purposes, or facilities purposes that lead to greater program efficiencies."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

A roll call was requested and properly seconded.

The question was taken on the Tuma et al amendment and the roll was called.

Winter moved that those not voting be excused from voting. The motion prevailed.

There were 64 yeas and 68 nays as follows:

Those who voted in the affirmative were:

Abrams Dehler Knight Molnau Rifenberg Tompkins
Anderson, B. Dempsey Knoblach Mulder Rostberg Tuma
Bettermann Erhardt Kraus Ness Seagren Van Dellen
Journal of the House - 109th Day - Thursday, April 9, 1998 - Top of Page 9837
Bishop Erickson Krinkie Nornes Seifert Vandeveer
Boudreau Finseth Kuisle Olson, M. Smith Weaver
Bradley Goodno Larsen Osskopp Stanek Westfall
Broecker Gunther Leppik Ozment Stang Westrom
Clark, J. Haas Lindner Paulsen Sviggum Wolf
Commers Harder Macklin Pawlenty Swenson, H. Workman
Daggett Holsten Mares Reuter Sykora
Davids Kielkucki McElroy Rhodes Tingelstad

Those who voted in the negative were:

Bakk Garcia Juhnke Marko Paymar Tomassoni
Biernat Greenfield Kahn McCollum Pelowski Trimble
Carlson Greiling Kalis McGuire Peterson Tunheim
Chaudhary Hasskamp Kelso Milbert Pugh Wagenius
Clark, K. Hausman Kinkel Mullery Rest Wejcman
Dawkins Hilty Koskinen Munger Rukavina Wenzel
Delmont Huntley Kubly Murphy Schumacher Winter
Dorn Jaros Leighton Olson, E. Sekhon Spk. Carruthers
Entenza Jefferson Lieder Opatz Skare
Evans Jennings Long Orfield Skoglund
Farrell Johnson, A. Mahon Osthoff Slawik
Folliard Johnson, R. Mariani Otremba, M. Solberg

The motion did not prevail and the amendment was not adopted.

Kelso, Long and Abrams moved to amend S. F. No. 2082, as amended, as follows:

Page 586, after line 35, insert:

"ARTICLE 12

Section 1. Minnesota Statutes 1996, section 124.2727, subdivision 6a, as added by 1998 H. F. No. 2874, article 1, section 19, if enacted, is amended to read:

Subd. 6a. [FISCAL YEAR 1999 AND FISCAL YEAR 2000 DISTRICT COOPERATION REVENUE.] A district's cooperation revenue for fiscal year 1999 and fiscal year 2000 is equal to the greater of $67 times the actual pupil units or $25,000.

Sec. 2. Minnesota Statutes 1996, section 124.2727, subdivision 6c, as added by 1998 H. F. No. 2874, article 1, section 20, if enacted, is amended to read:

Subd. 6c. [FISCAL YEAR 1999 AND FISCAL YEAR 2000 DISTRICT COOPERATION AID.] A district's cooperation aid for fiscal year 1999 and fiscal year 2000 is the difference between its district cooperation revenue and its district cooperation levy. If a district does not levy the entire amount permitted, aid must be reduced in proportion to the actual amount levied.

Sec. 3. Minnesota Statutes 1997 Supplement, section 124A.22, subdivision 2, as added by 1998 H. F. No. 2874, article 1, section 27, if enacted, is amended to read:

Subd. 2. [BASIC REVENUE.] The basic revenue for each district equals the formula allowance times the actual pupil units for the school year. The formula allowance for fiscal year 1997 is $3,505. The formula allowance for fiscal year 1998 is $3,581 and the formula allowance for fiscal year 1999 and fiscal year 2000 is $3,530. The formula allowance for fiscal year 2000 2001 and subsequent fiscal years is $3,597.

Journal of the House - 109th Day - Thursday, April 9, 1998 - Top of Page 9838

Sec. 4. Minnesota Statutes 1997 Supplement, section 124A.22, subdivision 13b, as added by H. F. No. 2874, article 1, section 30, if enacted, is amended to read:

Subd. 13b. [TRANSITION ALLOWANCE.] (a) A district's transportation transition allowance for fiscal year 1998 and later 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 and later is greater than or equal to the fiscal year 1996 base allowance, the transportation transition allowance equals zero.

(b) A district's compensatory transition allowance equals the greater of zero or the difference between:

(1) the amount of compensatory revenue the district would have received under subdivision 3 for fiscal year 1998 computed using a basic formula allowance of $3,281; and

(2) the amount the district receives under subdivision 3; divided by

(3) the district's actual pupil units for fiscal year 1998.

(c) A district's cooperation transition allowance for fiscal year 2000 2001 and later equals the greater of zero or the difference between:

(1) $25,000; and

(2) $67 times the district's actual pupil units for fiscal year 2000 2001.

(d) A district's transition allowance for fiscal year 1999 is equal to the sum of its transportation transition allowance and its compensatory transition allowance. A district's transition allowance for fiscal year 2000 and thereafter is equal to the sum of its transportation transition allowance, its compensatory transition allowance, and its cooperation transition allowance.

Sec. 5. Minnesota Statutes 1996, section 124A.22, subdivision 14, as added by H. F. No. 2874, article 1, section 31, if enacted, is amended to read:

Subd. 14. [GRADUATION STANDARDS IMPLEMENTATION REVENUE.] (a) A school district's graduation standards implementation revenue is equal to $52 times its actual pupil units for fiscal year 1999 plus $14 times its actual pupil units for fiscal year 1999 if the district implements the graduation rule under section 121.1114, paragraph (b), and $43 per pupil unit for all districts for fiscal year 2000 and later. Graduation standards implementation revenue is reserved and must be used according to paragraphs (b) and (c).

(b) For fiscal year 1999, revenue must be reserved for programs according to clauses (1) to (3).

(1) At least $20 per actual pupil unit plus $14 per actual pupil unit for a district that implements the graduation rule under section 121.1114, paragraph (b), must be allocated to school sites in proportion to the number of students enrolled at each school site weighted according to section 124.17, subdivision 1, and is reserved for programs designed to enhance the implementation of the graduation rule through intensive staff development and decentralized decision making.

(2) At least $5 per actual pupil unit is reserved for gifted and talented programs that are integrated with the graduation rule. This aid must supplement, not supplant, money spent on gifted and talented programs authorized under Laws 1997, First Special Session chapter 4, article 5, section 24.

Journal of the House - 109th Day - Thursday, April 9, 1998 - Top of Page 9839

(3) Remaining aid under this paragraph must be used:

(i) for technology purposes including wiring, network connections, and other technology-related infrastructure improvements; purchase or lease of computer software and hardware to be used in classrooms and for instructional purposes; purchase or lease of interactive television network equipment and network support; purchase or lease of computer software and hardware designed to support special needs programming and limited English proficiency programming; network and technical support; and purchase of textbooks and other instructional materials; or

(ii) to reduce class size.

(c) For fiscal year 2000 and later, revenue must be allocated to school sites and reserved for programs designed to enhance the implementation of the graduation rule through: (1) staff development programs; (2) technology purposes under paragraph (b), clause (3); (3) gifted and talented programs; or (4) class size reduction programs based at the school site.

(d) To the extent possible, school districts shall make opportunities for graduation standards implementation available to teachers employed by intermediate school districts. If the commissioner determines that the supplemental appropriation made for this subdivision under section 40, subdivision 2, is in excess of the amount needed for this subdivision, the commissioner shall make equal payments of one-third of the excess to each intermediate school district for the purpose of paragraph (a).

(e) A district that qualifies for the referendum allowance reduction under section 124A.03, subdivision 3c, and whose authority does not exceed the referendum allowance limit under section 124A.03, subdivision 1c, clause (2), shall receive a graduation standards implementation equity adjustment. In fiscal year 1999, the equity adjustment aid is equal to $29 34 per actual pupil unit. In fiscal year 2001 2000 and thereafter, the equity adjustment is equal to $20 25 per actual pupil unit.

Sec. 6. Minnesota Statutes 1997 Supplement, section 124A.23, subdivision 1, as added by H. F. No. 2874, article 1, section 33, if enacted, is amended to read:

Subdivision 1. [GENERAL EDUCATION TAX RATE.] The commissioner shall establish the general education tax rate by July 1 of each year for levies payable in the following year. The general education tax capacity rate shall be a rate, rounded up to the nearest hundredth of a percent, that, when applied to the adjusted net tax capacity for all districts, raises the amount specified in this subdivision. The general education tax rate shall be the rate that raises $1,385,500,000 for fiscal year 1999, $1,325,500,000 for fiscal year 2000, and $1,387,100,000 for fiscal year 2001, and later fiscal years. The general education tax rate may not be changed due to changes or corrections made to a district's adjusted net tax capacity after the tax rate has been established. If the levy target for fiscal year 1999 or fiscal year 2000 is changed by another law enacted during the 1997 or 1998 session, the commissioner shall reduce the general education levy target in this section by the amount of the reduction in the enacted law.

Sec. 7. 1998 H. F. No. 2874, article 1, section 51, if enacted, is amended to read:

Sec. 51. [REPEALER.]

(a) Minnesota Statutes 1997 Supplement, section 124.912, subdivisions 2 and 3, are repealed effective for taxes payable in 1998.

(b) Minnesota Statutes 1996, sections 121.904, subdivision 4c; and 124.2601, subdivision 4, are repealed.

(c) Minnesota Statutes 1997 Supplement, section 124.2601, subdivision 5, is repealed effective July 1, 1999.

(d) Minnesota Statutes 1996, section 124.2713, subdivision 6b, is repealed effective for taxes payable in 1999 and revenue for fiscal year 2000.

(e) Minnesota Statutes 1996, section 124.2727, subdivision 6b, is repealed effective for taxes payable in 1999.

Journal of the House - 109th Day - Thursday, April 9, 1998 - Top of Page 9840

(f) Minnesota Statutes 1996, section 124A.292, subdivisions 2 and 4, are repealed effective for revenue for fiscal year 2000.

(g) (f) Laws 1997, chapter 231, article 1, section 17, is repealed effective the day following final enactment.

Sec. 8. [FORMULA ALLOWANCE.]

For fiscal year 2000 the basic formula allowance under Minnesota Statutes, section 124A.22, subdivision 2, is increased by $67 per actual pupil unit for purposes of calculating compensatory revenue and sparsity revenue under Minnesota Statutes, section 124A.22."

Renumber the sections in sequence and correct internal references

Amend the title accordingly

The motion prevailed and the amendment was adopted.

S. F. No. 2082, A bill for an act relating to education; recodifying and making technical amendments to kindergarten through grade 12 education statutes; amending Minnesota Statutes 1996, sections 120.02, subdivisions 1, 13, 14, 15, and 18; 120.06, subdivisions 1 and 2a; 120.062, subdivisions 4, 5, and 8a; 120.0621, as amended; 120.064, subdivisions 4, 4a, 5, 7, 9, 11, 12, 13, 14, 15, 17, 19, 20, 21, 22, and 24; 120.075, subdivisions 1, 2, 3a, and 4; 120.0751, subdivisions 1, 2, 3, 4, and 5; 120.0752, subdivisions 1, 2, and 3; 120.08; 120.101, subdivisions 5a, 7, 8, 9, and 10; 120.102, subdivisions 1, 3, and 4; 120.103, subdivisions 3, 4, 5, and 6; 120.11; 120.14; 120.17, subdivisions 1, 1b, 2, 3, 3a, 3b, 3d, 4, 4a, 5, 5a, 6, 7, 7a, 8a, 9, 10, 16, 18, and 19; 120.1701, subdivisions 2, 4, 5, 6, 7, 8, 8a, 9, 10, 11, 12, 15, 17, 19, 20, 21, and 22; 120.172, subdivision 2; 120.173, subdivisions 1, 3, 4, and 6; 120.1811; 120.182; 120.183; 120.185; 120.188; 120.189; 120.190; 120.59; 120.60; 120.61; 120.62; 120.63; 120.64; 120.66; 120.73, subdivisions 1, 2a, 2b, 3, and 4; 120.74; 120.75; 120.76; 120.80; 121.11, subdivision 7; 121.1115, subdivisions 1 and 2; 121.155; 121.201; 121.203, subdivision 1; 121.207, subdivisions 2 and 3; 121.585, subdivisions 2, 6, and 7; 121.615, subdivision 11; 121.704; 121.705, subdivision 2; 121.706; 121.707, subdivisions 3, 4, 5, 6, and 7; 121.708; 121.710, subdivisions 2 and 3; 121.831, subdivisions 6, 7, 8, 9, 10, 11, and 12; 121.835, subdivisions 4, 5, 7, and 8; 121.8355, subdivisions 2, 3, 5, and 6; 121.88, subdivisions 2, 3, 4, 6, 7, and 9; 121.882, subdivisions 1, 2b, 3, 7, 7a, 8, and 9; 121.885, subdivisions 1 and 4; 121.904, subdivisions 1, 2, 3, 4c, and 13; 121.906; 121.908; 121.911; 121.912, subdivisions 1a, 1b, 2, 3, 5, and 6; 121.9121, subdivisions 2 and 4; 121.914, subdivisions 2, 3, 4, 5, 6, 7, and 8; 121.917; 122.01; 122.02; 122.03; 122.21; 122.22, subdivisions 1, 4, 5, 6, 7a, 9, 13, 14, 18, 20, and 21; 122.23, subdivisions 2, 2b, 3, 6, 7, 8, 9, 10, 11, 12, 13, 14, 16, 16c, 18, 18a, and 20; 122.241; 122.242, subdivisions 1, 3, 8, and 9; 122.243; 122.245, subdivision 2; 122.246; 122.247, subdivisions 2 and 2a; 122.248; 122.25, subdivisions 2 and 3; 122.32; 122.34; 122.355; 122.41; 122.43; 122.44; 122.45, subdivisions 2 and 3a; 122.46; 122.47; 122.48; 122.531, subdivisions 2c, 5a, and 9; 122.5311, subdivision 1; 122.532, subdivisions 2, 3a, and 4; 122.535, subdivisions 2, 3, 4, 5, and 6; 122.541, subdivisions 1, 2, 4, 5, 6, and 7; 122.895; 122.91, subdivisions 2, 2a, 3a, 4, and 6; 122.93, subdivisions 3 and 8; 122.95, subdivisions 1, 1a, 2, and 4; 123.11, subdivisions 1, 2, 3, 4, and 7; 123.12; 123.13; 123.15; 123.33, subdivisions 1, 2, 2a, 3, 4, 6, 7, 11, and 11a; 123.335; 123.34, subdivisions 1, 2, 7, 8, 9, 9a, and 10; 123.35, subdivisions 1, 2, 4, 5, 8a, 9b, 12, 13, 15, 19a, 19b, 20, and 21; 123.351, subdivisions 1, 3, 4, 5, 8, and 8a; 123.3513; 123.3514, subdivisions 3, 4b, 4d, 5, 6, 6b, 7a, and 7b; 123.36, subdivisions 1, 5, 10, 11, 13, and 14; 123.37, subdivisions 1, 1a, and 1b; 123.38, subdivisions 1, 2, 2a, 2b, and 3; 123.39, subdivisions 1, 2, 8, 8a, 8b, 8c, 8d, 8e, 9a, 11, 12, 13, 14, 15, and 16; 123.40, subdivisions 1, 2, and 8; 123.41; 123.582, subdivision 2; 123.63; 123.64; 123.66; 123.681; 123.70, subdivisions 2, 4, and 8; 123.702, subdivisions 1, 1b, 2, 3, 4, 4a, 5, 6, and 7; 123.704; 123.7045; 123.71; 123.72; 123.75, subdivisions 2, 3, and 5; 123.751, subdivisions 1, 2, and 3; 123.76; 123.78, subdivisions 1a and 2; 123.79, subdivision 1; 123.799, as amended; 123.7991, subdivision 3; 123.801; 123.805; 123.932, subdivision 1b; 123.933; 123.935, subdivisions 1, 2, 4, 5, and 6; 123.936; 123.9361; 123.9362; 123.947; 124.06; 124.07, subdivision 2; 124.078; 124.08; 124.09; 124.10, subdivisions 1 and 2; 124.12; 124.14, subdivisions 2, 3, 3a, 4, 6, 7, and 8; 124.15, subdivisions 2, 2a, 3, 4, 5, 6, and 8; 124.17, subdivisions 1f, 2, 2a, 2b, and by adding subdivisions; 124.175; 124.19, subdivision 5; 124.195, subdivisions 1, 3, 3a, 3b, 4, 5, 6, and 14; 124.196; 124.2131, subdivisions 1, 2, 3a, 5, 6, 7, 8, 9, and 11; 124.214; 124.225, subdivisions 7f, 8l, 8m, and 9; 124.227; 124.239, subdivision 3; 124.242; 124.248, subdivisions 1 and 1a; 124.255;

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124.26, subdivision 1c; 124.2601, subdivision 7; 124.2605; 124.2615, subdivision 4; 124.2711, as amended; 124.2713, subdivision 7; 124.2715, subdivision 3; 124.2716, subdivisions 1 and 2; 124.2725, subdivision 15; 124.2726, subdivisions 1, 2, and 4; 124.2727, subdivision 9; 124.273, subdivisions 3, 4, 6, and 7; 124.276, subdivisions 1 and 3; 124.278, subdivision 3; 124.311, subdivision 1; 124.32; 124.3201, subdivisions 5, 6, and 7; 124.322, subdivision 1; 124.35; 124.37; 124.38, subdivisions 1, 4a, and 7; 124.381; 124.39; 124.40; 124.41, subdivision 3; 124.42, as amended; 124.431, subdivisions 4, 5, 6, 10, 12, 13, and 14; 124.44; 124.46, as amended; 124.48, as amended; 124.492; 124.493, subdivision 1; 124.494, subdivisions 1, 2, 2a, 3, 5, and 7; 124.4945; 124.511; 124.573, subdivisions 2, 2b, 2e, 2f, 3, 3a, and 5a; 124.625; 124.63; 124.646; 124.6462; 124.6469, subdivision 3; 124.647; 124.6471; 124.6472; 124.648, as amended; 124.71, subdivision 1; 124.72; 124.73; 124.74; 124.75; 124.755, subdivisions 2, 3, 4, 5, 6, 7, 8, and 9; 124.82, subdivisions 1 and 3; 124.83, subdivision 8; 124.84, subdivisions 1 and 2; 124.85, subdivisions 2, 2a, 2b, 2c, 5, 6, and 7; 124.86, subdivisions 1, 3, and 4; 124.90; 124.91, subdivisions 4 and 6; 124.912, subdivisions 7 and 9; 124.914; 124.916, as amended; 124.918, subdivisions 2, 3, and 7; 124.95, subdivision 1; 124.97; 124A.02, subdivisions 1, 3a, 20, 21, 22, 23, and 24; 124A.029, subdivisions 1, 3, and 4; 124A.03, subdivisions 2, 2a, and 3c; 124A.0311, subdivisions 2, 3, and 4; 124A.032; 124A.034; 124A.035; 124A.036, as amended; 124A.04, as amended; 124A.22, subdivisions 2a, 5, 8, and 12; 124A.225, subdivisions 4 and 5; 124A.29; 124A.30; 124C.07; 124C.08, subdivisions 2 and 3; 124C.09; 124C.12, subdivision 2; 124C.41, subdivision 4; 124C.45, subdivision 1; 124C.49; 124C.498, as amended; 124C.60, subdivision 2; 124C.72, subdivision 2; 124C.73, subdivision 3; 125.03, subdivisions 1 and 6; 125.04; 125.05, subdivisions 1, 1a, 6, and 8; 125.06; 125.09; 125.11; 125.12, subdivisions 1a, 2, 2a, 3, 3b, 4, 6, 6a, 6b, 7, 8, 9, 9a, 10, 11, and 13; 125.121, subdivisions 1 and 2; 125.135; 125.138, subdivisions 1, 3, 4, and 5; 125.16; 125.17, subdivisions 2, 2b, 3, 3b, 4, 5, 6, 7, 8, 9, 10, 10a, 11, and 12; 125.18; 125.181; 125.183, subdivisions 1, 4, and 5; 125.184; 125.185, subdivisions 1, 2, 4, 5, and 7; 125.187; 125.188, subdivisions 1, 3, and 5; 125.1885, subdivision 5; 125.189; 125.1895, subdivision 4; 125.211, subdivision 2; 125.230, subdivisions 4, 6, and 7; 125.231, subdivision 3; 125.53; 125.54; 125.60, subdivisions 2, 3, 4, 6a, and 8; 125.611, subdivisions 1 and 13; 125.62, subdivisions 2, 3, and 7; 125.623, subdivision 3; 125.702; 125.703; 125.704, subdivision 1; 125.705, subdivisions 1, 3, 4, and 5; 125.80; 126.05; 126.12; 126.13; 126.14; 126.15, subdivisions 2 and 3; 126.1995; 126.21, subdivisions 3 and 5; 126.22, subdivisions 5 and 6; 126.235; 126.239, subdivision 1; 126.262, subdivisions 3 and 6; 126.264; 126.265; 126.266, subdivision 1; 126.267; 126.36, subdivisions 1, 5, and 7; 126.43, subdivisions 1 and 2; 126.48, subdivisions 1, 2, 3, 4, and 5; 126.49, subdivisions 1, 5, 6, and 8; 126.50; 126.501; 126.51, subdivisions 1a and 2; 126.52, subdivisions 5 and 8; 126.531, subdivision 1; 126.54, subdivisions 1, 2, 3, 4, 5, and 6; 126.56, subdivision 6; 126.69, subdivision 1; 126.70, subdivisions 1 and 2a; 126.72, subdivisions 3 and 6; 126.78, subdivision 4; 126.84, subdivisions 1, 3, 4, and 5; 126A.01; 126B.01, subdivisions 2 and 4; 126B.10; 127.02; 127.03; 127.04; 127.17, subdivisions 1, 3, and 4; 127.19; 127.20; 127.40, subdivision 4; 127.41; 127.411; 127.412; 127.413; 127.42; 127.44; 127.45, subdivision 2; 127.455; 127.46; 127.47, subdivision 2; 127.48; 129C.10, subdivisions 3a, 3b, 4, and 6; and 129C.15; Minnesota Statutes 1997 Supplement, sections 120.05; 120.062, subdivisions 3, 6, and 7; 120.064, subdivisions 8, 10, 14a, and 20a; 120.101, subdivisions 5 and 5c; 120.1015; 120.1701, subdivision 3; 120.181; 121.1113, subdivision 1; 121.615, subdivisions 2, 3, 9, and 10; 121.831, subdivision 3; 121.88, subdivision 10; 121.882, subdivision 2; 121.904, subdivision 4a; 121.912, subdivision 1; 123.35, subdivision 8; 123.3514, subdivisions 4, 4a, 4e, 6c, and 8; 123.7991, subdivision 2; 124.155, subdivisions 1 and 2; 124.17, subdivisions 1 and 4; 124.195, subdivisions 2, 7, and 10; 124.2445; 124.2455; 124.248, subdivisions 3 and 4; 124.26, subdivision 2; 124.2601, subdivision 6; 124.2615, subdivision 2; 124.2713, subdivision 8; 124.321, subdivisions 1 and 2; 124.322, subdivision 1a; 124.323, subdivision 1; 124.41, subdivision 2; 124.431, subdivisions 2 and 11; 124.45, subdivision 2; 124.481; 124.574, subdivision 9; 124.83, subdivision 1; 124.86, subdivision 2; 124.91, subdivision 5; 124.912, subdivisions 1 and 6; 124.918, subdivisions 1, 6, and 8; 124A.22, subdivisions 6, 11, and 13; 124A.23, subdivisions 1, 2, and 3; 124A.28, subdivision 3; 124C.45, subdivision 1a; 125.05, subdivision 1c; 125.12, subdivision 14; 126.22, subdivisions 2, 3a, and 8; 126.23, subdivision 1; 126.51, subdivision 1; 126.531, subdivision 3; 126.72, subdivision 2; 126.77, subdivision 1; and 129C.10, subdivision 3; proposing coding for new law as Minnesota Statutes, chapters 120B; and 120C; repealing Minnesota Statutes 1996, sections 16B.43; 120.71; 120.72; 120.90; 122.52; 122.532, subdivision 1; 122.541, subdivision 3; 123.35, subdivision 10; 123.42; 124.01; 124.19, subdivision 4; 124.2725, subdivisions 1, 2, 3, 4, 5, 6, 7, 9, 10, 12, 13, 14, and 16; 124.312, as amended; 124.38, subdivision 9; 124.472; 124.473; 124.474; 124.476; 124.477; 124.478; 124.479; 124.71, subdivision 2; 124A.02, subdivisions 15 and 16; 124A.029, subdivision 2; 124A.03, subdivision 3b; 124A.22, subdivision 13f; 124A.225, subdivision 6; 124A.31; 124C.55; 124C.56; 124C.57; 124C.58; 125.10; 126.84, subdivision 6; 127.01; 127.08; 127.09; 127.10; 127.11; 127.12; 127.13; 127.15; 127.16; 127.17, subdivision 2; 127.21; and 127.23; Minnesota Statutes 1997 Supplement, sections 124.2725, subdivision 11; 124.313; 124.314; and 124A.26.

The bill was read for the third time, as amended, and placed upon its final passage.

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The question was taken on the passage of the bill and the roll was called.

Winter moved that those not voting be excused from voting. The motion prevailed.

There were 122 yeas and 10 nays as follows:

Those who voted in the affirmative were:

Abrams Dorn Jennings Mahon Pawlenty Swenson, H.
Anderson, B. Entenza Johnson, A. Mares Paymar Sykora
Anderson, I. Erhardt Johnson, R. Mariani Pelowski Tingelstad
Bakk Evans Juhnke Marko Peterson Tomassoni
Bettermann Farrell Kahn McCollum Pugh Trimble
Biernat Finseth Kalis McElroy Rest Tunheim
Bishop Folliard Kelso McGuire Rhodes Van Dellen
Boudreau Garcia Kinkel Milbert Rifenberg Vandeveer
Bradley Goodno Knight Molnau Rostberg Wagenius
Broecker Greenfield Knoblach Mullery Rukavina Weaver
Carlson Greiling Koskinen Munger Schumacher Wenzel
Chaudhary Gunther Kraus Murphy Seagren Westfall
Clark, J. Haas Krinkie Nornes Sekhon Westrom
Clark, K. Harder Kubly Olson, E. Skare Winter
Commers Hasskamp Kuisle Opatz Skoglund Wolf
Daggett Hausman Larsen Orfield Slawik Workman
Davids Hilty Leighton Osskopp Smith Spk. Carruthers
Dawkins Holsten Leppik Osthoff Solberg
Dehler Huntley Lieder Otremba, M. Stanek
Delmont Jaros Long Ozment Stang
Dempsey Jefferson Macklin Paulsen Sviggum

Those who voted in the negative were:

Erickson Lindner Ness Reuter Tompkins
Kielkucki Mulder Olson, M. Seifert Tuma

The bill was passed, as amended, and its title agreed to.

MESSAGES FROM THE SENATE, Continued

The following messages were received from the Senate:

Mr. Speaker:

I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on:

H. F. No. 3840, A bill for an act relating to the financing and operation of government in this state; providing property tax rebates; providing property tax reform; making changes to property tax rates, levies, notices, hearings, assessments, exemptions, aids, and credits; providing for limited market value; extending levy limits; providing bonding and levy authority, and other powers to certain political subdivisions; making changes to income, sales, excise, mortgage registry and deed, premiums, and solid waste tax provisions; authorizing the imposition of certain local sales, use, excise, and lodging taxes; authorizing a sanitary sewer district; modifying provisions relating to the budget reserve and other accounts; making changes to tax increment financing, regional development, housing, and economic development provisions; providing for the taxation of taconite and the distribution of taconite taxes; modifying provisions relating to the taxation

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and operation of gaming; providing for border city zones; making miscellaneous changes to state and local tax and administrative provisions; providing for calculation of rent constituting property taxes; changing the senior citizens' property tax deferral program; changing certain fiscal note requirements; establishing a tax study commission; providing for a land transfer; appropriating money; amending Minnesota Statutes 1996, sections 16A.102, subdivisions 1 and 2; 92.46, by adding a subdivision; 124.95, subdivisions 3, 4, and 5; 124A.02, subdivision 3; 240.15, subdivision 1; 273.111, subdivision 9; 273.112, subdivision 7; 273.13, subdivisions 22, 23, and 24; 273.135, subdivision 2; 273.1391, subdivision 2; 273.1398, subdivision 2; 275.07, by adding a subdivision; 289A.08, subdivision 13; 290.06, subdivision 2c, and by adding a subdivision; 290.067, subdivisions 2 and 2a; 290.091, subdivision 2; 290.0921, subdivision 3a; 290.10; 290.21, subdivision 3; 290A.03, subdivision 3; 297A.01, subdivision 8; 297A.02, subdivisions 2 and 4; 297A.135, subdivision 4; 297A.25, by adding subdivisions; 297E.02, subdivisions 1, 4, and 6; 298.225, subdivision 1; 298.28, subdivisions 4, 6, 9, 10, and 11; 360.653; 462.396, subdivision 2; 469.091, subdivision 1; 469.101, subdivision 1; 469.169, by adding a subdivision; 469.170, by adding a subdivision; 469.171, subdivision 9; 469.174, by adding a subdivision; 469.175, subdivisions 5, 6, 6a, and by adding a subdivision; 469.176, subdivision 7; 469.177, by adding a subdivision; 469.1771, subdivision 5, and by adding a subdivision; 473.3915, subdivisions 2 and 3; 475.58, subdivision 1; 477A.0122, subdivision 6; 477A.03, subdivision 2; 477A.14; Minnesota Statutes 1997 Supplement, sections 3.986, subdivisions 2 and 4; 3.987, subdivisions 1 and 2; 3.988, subdivision 3; 3.989, subdivisions 1 and 2; 16A.152, subdivision 2; 124.239, subdivisions 5a and 5b; 124.315, subdivisions 4 and 5; 124.918, subdivision 8; 124.961; 270.67, subdivision 2; 272.02, subdivision 1; 272.115, subdivisions 4 and 5; 273.11, subdivision 1a; 273.124, subdivision 14; 273.127, subdivision 3; 273.13, subdivisions 22, 23, 24, 25, as amended, and 31; 273.1382, subdivisions 1 and 3; 275.065, subdivisions 3 and 6; 275.70, subdivision 5, and by adding a subdivision; 275.71, subdivisions 2, 3, and 4; 275.72, by adding a subdivision; 287.08; 289A.02, subdivision 7; 289A.11, subdivision 1; 289A.19, subdivision 2; 290.01, subdivisions 19, 19a, 19b, 19c, 19f, and 31; 290.0671, subdivision 1; 290.0673, subdivision 2; 290.091, subdivision 6; 290.371, subdivision 2; 290A.03, subdivisions 11, 13, and 15; 290B.03, subdivision 1; 290B.04, subdivisions 1, 3, and by adding subdivisions; 290B.05, subdivisions 1, 2, and 4; 290B.06; 290B.07; 290B.08, subdivision 2; 290B.09, subdivision 1; 291.005, subdivision 1; 297A.01, subdivisions 4 and 16; 297A.14, subdivision 4; 297A.25, subdivisions 3, 9, and 11; 297A.256, subdivision 1; 297A.48, by adding a subdivision; 297B.03; 297G.01, by adding a subdivision; 297G.03, subdivision 1; 297H.04, by adding a subdivision; 349.19, subdivision 2a; 462A.071, subdivisions 2, 4, and 8; and 477A.011, subdivision 36; Laws 1971, chapter 773, sections 1, as amended, and 2, as amended; Laws 1980, chapter 511, sections 2 and 3; Laws 1984, chapter 380, sections 1, as amended, and 2; Laws 1992, chapter 511, articles 2, section 52, as amended; and 8, section 33, subdivision 5; Laws 1994, chapter 587, article 11, by adding a section; Laws 1995, chapter 255, article 3, section 2, subdivisions 1, as amended, and 4, as amended; Laws 1997, chapter 231, articles 1, section 16, as amended; 2, sections 63, subdivision 1, and 68, subdivision 3; 3, section 9; 5, section 20; 7, section 47; and 13, section 19; and Laws 1997, Second Special Session chapter 2, section 33; proposing coding for new law in Minnesota Statutes, chapters 272; 273; 290; 365A; and 469; repealing Minnesota Statutes 1996, sections 124A.697; 124A.698; 124A.70; 124A.71; 124A.711, subdivision 1; 124A.72; 124A.73; 289A.50, subdivision 6; and 365A.09; Minnesota Statutes 1997 Supplement, sections 3.987, subdivision 3; 14.431; and 124A.711, subdivision 2; Laws 1992, chapter 499, article 7, section 31.

The Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee. Said House File is herewith returned to the House.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on:

H. F. No. 2970, A bill for an act relating to retirement; various retirement plans; adjusting pension coverage for certain privatized public hospital employees; providing for voluntary deduction of health insurance premiums from certain annuities; providing for increased survivor benefits relating to certain public employees murdered in the line of duty; authorizing certain service credit purchases; specifying prior service credit purchase payment amount determination procedures increasing salaries of various judges; modifying other judicial salaries; modifying the judges retirement plan

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member and employer contribution rates; authorizing the transfer of certain prior retirement contributions from the legislators retirement plan and from the elective state officers retirement plan; creating a contribution transfer account in the general fund of the state; appropriating money; reformulating the Columbia Heights volunteer firefighters relief association plan as a defined contribution plan under the general volunteer fire law; restructuring the Columbia Heights volunteer firefighter relief association board; modifying various higher education retirement plan provisions; modifying administrative expense provisions for various public pension plans; expanding the teacher retirement plans part-time teaching positions eligible to participate in the qualified full-time service credit for part-time teaching service program; making certain Minneapolis fire department relief association survivor benefit options retroactive; providing increased disability benefit coverage for certain local government correctional facility employees; increasing local government correctional employee and employer contribution rates; providing increased survivor benefits to certain Minneapolis employee retirement fund survivors; authorizing certain Hennepin county regional park employees to change retirement plan membership; modifying benefit increase provision for Eveleth police and firefighters; modifying the length of the actuarial services contract of the legislative commission on pensions and retirement; modifying the scope of quadrennial projection valuations; amending Minnesota Statutes 1996, sections 3A.13; 136F.45, by adding a subdivision; 136F.48; 352.96, subdivision 4; 352D.09, subdivision 7; 352D.12; 353D.05, subdivision 3; 354.445; 354.66, subdivisions 2 and 3; 354A.094, subdivisions 2 and 3; 354B.23, by adding a subdivision; 354C.12, by adding a subdivision; 383B.52; 422A.23, subdivision 2; and 490.123, subdivisions 1a and 1b; Minnesota Statutes 1997 Supplement, sections 3.85, subdivision 11; 15A.083, subdivisions 5, 6a, and 7; 354B.25, subdivisions 1a and 5; 354C.12, subdivision 4; and 356.215, subdivision 2; Laws 1995, chapter 262, article 10, section 1; and Laws 1997, Second Special Session chapter 3, section 16; proposing new law for coding in Minnesota Statutes, chapter 356; repealing Minnesota Statutes 1996, sections 11A.17, subdivisions 10a and 14; and 352D.09, subdivision 8; Minnesota Statutes 1997 Supplement, section 136F.45, subdivision 3.

The Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee. Said House File is herewith returned to the House.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on:

H. F. No. 3853, A bill for an act relating to agriculture; modifying provisions relating to the Farmer-Lender Mediation Act; providing emergency financial relief for farm families in certain counties; establishing a temporary program of assistance for federal crop insurance premiums; mitigating neighborhood insect infestation; appropriating money; amending Minnesota Statutes 1997 Supplement, section 583.22, subdivision 5; Laws 1986, chapter 398, article 1, section 18, as amended.

The Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee. Said House File is herewith returned to the House.

Patrick E. Flahaven, Secretary of the Senate

Mr. Speaker:

I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on:

S. F. No. 2050.

The Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee. Said Senate File is herewith transmitted to the House.

Patrick E. Flahaven, Secretary of the Senate

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CONFERENCE COMMITTEE REPORT ON S. F. NO. 2050

A bill for an act relating to health; modifying provisions governing advance health care directives; combining laws governing living wills and durable power of attorney for health care; amending Minnesota Statutes 1996, sections 144.335, subdivision 1; 145C.01, subdivisions 2, 3, 4, 8, and by adding subdivisions; 145C.02; 145C.03; 145C.04; 145C.05, subdivisions 1 and 2; 145C.06; 145C.07; 145C.08; 145C.09; 145C.10; 145C.11; 145C.12; 145C.13, subdivision 1; 145C.15; 525.55, subdivisions 1 and 2; 525.551, subdivisions 1 and 5; 525.9212; and 609.215, subdivision 3; Minnesota Statutes 1997 Supplement, sections 149A.80, subdivision 2; 253B.04, subdivision 1a; 253B.07, subdivision 1; and 253B.092, subdivisions 2 and 6; proposing coding for new law in Minnesota Statutes, chapters 145B; and 145C.

April 9, 1998

The Honorable Allan H. Spear

President of the Senate

The Honorable Phil Carruthers

Speaker of the House of Representatives

We, the undersigned conferees for S. F. No. 2050, report that we have agreed upon the items in dispute and recommend as follows:

That the House recede from its amendments and S. F. No. 2050 be further amended as follows:

Page 4, line 29, delete "readily" and delete "without undue effort"

Page 7, line 12, before "A" insert "(a)"

Page 7, delete lines 22 to 24 and insert:

"(b) Nothing in this section shall be interpreted to authorize a directive or similar document to override the provisions of section 609.215 prohibiting assisted suicide."

Page 14, line 28, after "and" insert ", except as otherwise provided by section 145C.15,"

Page 15, line 1, delete "who has a health care directive"

Page 15, line 2, delete "in the third trimester"

Page 15, line 6, delete "it is presumed that" and insert "the health care provider shall presume that the patient would have wanted" and delete "should" and insert "to"

Page 16, line 1, delete everything before the comma

Page 16, line 4, before the period, insert "and in accordance with applicable standards of care"

We request adoption of this report and repassage of the bill.

Senate Conferees: Ember R. Junge, Sheila M. Kiscaden and Steve Kelley.

House Conferees: Dave Bishop, Wesley J. "Wes" Skoglund and Thomas Pugh.

Bishop moved that the report of the Conference Committee on S. F. No. 2050 be adopted and that the bill be repassed as amended by the Conference Committee.

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Osskopp moved that the House refuse to adopt the Conference Committee report on S. F. No. 2050, and that the bill be returned to the Conference Committee.

A roll call was requested and properly seconded.

The question was taken on the Osskopp motion and the roll was called.

Winter moved that those not voting be excused from voting. The motion prevailed.

There were 65 yeas and 66 nays as follows:

Those who voted in the affirmative were:

Anderson, B. Dempsey Kraus Ness Rostberg Tuma
Anderson, I. Erickson Krinkie Nornes Seagren Van Dellen
Bettermann Finseth Kubly Olson, M. Seifert Vandeveer
Boudreau Goodno Kuisle Osskopp Smith Weaver
Bradley Gunther Larsen Otremba, M. Stanek Wenzel
Broecker Haas Lindner Ozment Stang Westfall
Clark, J. Harder Macklin Paulsen Sviggum Westrom
Commers Hasskamp Mares Pawlenty Swenson, H. Winter
Daggett Kielkucki McElroy Peterson Sykora Wolf
Davids Knight Molnau Reuter Tingelstad Workman
Dehler Knoblach Mulder Rifenberg Tompkins

Those who voted in the negative were:

Abrams Erhardt Jaros Leppik Olson, E. Sekhon
Bakk Evans Jefferson Lieder Opatz Skare
Biernat Farrell Jennings Long Orfield Skoglund
Bishop Folliard Johnson, A. Mahon Osthoff Slawik
Carlson Garcia Johnson, R. Mariani Paymar Solberg
Chaudhary Greenfield Juhnke Marko Pelowski Tomassoni
Clark, K. Greiling Kahn McCollum Pugh Trimble
Dawkins Hausman Kelso McGuire Rest Tunheim
Delmont Hilty Kinkel Milbert Rhodes Wagenius
Dorn Holsten Koskinen Mullery Rukavina Wejcman
Entenza Huntley Leighton Munger Schumacher Spk. Carruthers

The motion did not prevail.

The question recurred on the Bishop motion that the report of the Conference Committee on S. F. No. 2050 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.

S. F. No. 2050, A bill for an act relating to health; modifying provisions governing advance health care directives; combining laws governing living wills and durable power of attorney for health care; amending Minnesota Statutes 1996, sections 144.335, subdivision 1; 145C.01, subdivisions 2, 3, 4, 8, and by adding subdivisions; 145C.02; 145C.03; 145C.04; 145C.05, subdivisions 1 and 2; 145C.06; 145C.07; 145C.08; 145C.09; 145C.10; 145C.11; 145C.12; 145C.13, subdivision 1; 145C.15; 525.55, subdivisions 1 and 2; 525.551, subdivisions 1 and 5; 525.9212; and 609.215, subdivision 3; Minnesota Statutes 1997 Supplement, sections 149A.80, subdivision 2; 253B.04, subdivision 1a; 253B.07, subdivision 1; and 253B.092, subdivisions 2 and 6; proposing coding for new law in Minnesota Statutes, chapters 145B; and 145C.

The bill was read for the third time, as amended by Conference, and placed upon its repassage.

Journal of the House - 109th Day - Thursday, April 9, 1998 - Top of Page 9847

The question was taken on the repassage of the bill and the roll was called. There were 75 yeas and 58 nays as follows:

Those who voted in the affirmative were:

Abrams Evans Jennings Mariani Paymar Tomassoni
Bakk Farrell Johnson, A. Marko Pelowski Trimble
Biernat Folliard Johnson, R. McCollum Pugh Tunheim
Bishop Garcia Juhnke McElroy Rest Van Dellen
Bradley Greenfield Kahn McGuire Rhodes Wagenius
Carlson Greiling Kelso Milbert Rukavina Weaver
Chaudhary Gunther Kinkel Molnau Schumacher Wejcman
Clark, K. Hausman Koskinen Mullery Sekhon Winter
Dawkins Hilty Leighton Munger Skare Wolf
Delmont Holsten Leppik Olson, E. Skoglund Spk. Carruthers
Dorn Huntley Lieder Opatz Slawik
Entenza Jaros Long Orfield Solberg
Erhardt Jefferson Mahon Osthoff Sykora

Those who voted in the negative were:

Anderson, B. Dempsey Knoblach Murphy Reuter Tingelstad
Anderson, I. Erickson Kraus Ness Rifenberg Tompkins
Bettermann Finseth Krinkie Nornes Rostberg Tuma
Boudreau Goodno Kubly Olson, M. Seagren Vandeveer
Broecker Haas Kuisle Osskopp Seifert Wenzel
Clark, J. Harder Larsen Otremba, M. Smith Westfall
Commers Hasskamp Lindner Ozment Stanek Westrom
Daggett Kalis Macklin Paulsen Stang Workman
Davids Kielkucki Mares Pawlenty Sviggum
Dehler Knight Mulder Peterson Swenson, H.

The bill was repassed, as amended by Conference, and its title agreed to.

Mr. Speaker:

I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on:

S. F. No. 1169.

The Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee. Said Senate File is herewith transmitted to the House.

Patrick E. Flahaven, Secretary of the Senate

CONFERENCE COMMITTEE REPORT ON S. F. NO. 1169

A bill for an act relating to personal watercraft; increasing restrictions on personal watercraft; imposing additional requirements on renters and dealers of personal watercraft; exempting emergency, safety, and enforcement watercraft from certain watercraft restrictions; amending Minnesota Statutes 1996, sections 86B.313, subdivisions 1, 3, and 4; and 86B.805, by adding a subdivision.

Journal of the House - 109th Day - Thursday, April 9, 1998 - Top of Page 9848

April 9, 1998

The Honorable Allan H. Spear

President of the Senate

The Honorable Phil Carruthers

Speaker of the House of Representatives

We, the undersigned conferees for S. F. No. 1169, report that we have agreed upon the items in dispute and recommend as follows:

That the House recede from its amendments and that S. F. No. 1169 be further amended as follows:

Delete everything after the enacting clause and insert:

"Section 1. Minnesota Statutes 1996, section 86B.101, subdivision 2, is amended to read:

Subd. 2. [YOUTH WATERCRAFT SAFETY COURSE.] (a) The commissioner shall establish an educational course and a testing program for personal watercraft and watercraft operators and for persons age 12 or older but younger than age 18 required to take the watercraft safety course. The commissioner shall prescribe a written test as part of the course. A personal watercraft educational course and testing program that emphasizes safe and legal operation must be required for persons age 13 or older but younger than age 18 operating personal watercraft.

(b) The commissioner shall issue a watercraft operator's permit to a person age 12 or older but younger than age 18 who successfully completes the educational program and the written test.

Sec. 2. Minnesota Statutes 1996, section 86B.313, subdivision 1, is amended to read:

Subdivision 1. [GENERAL REQUIREMENTS.] (a) In addition to requirements of other laws relating to watercraft, it is unlawful to a person may not operate or to permit the operation of a personal watercraft:

(1) without each person on board the personal watercraft wearing a United States Coast Guard approved Type I, II, III, or V personal flotation device;

(2) between one hour before sunset and 8:00 9:30 a.m.;

(3) at greater than slow-no wake speed within 100 150 feet of:

(i) a shoreline,;

(ii) a dock,;

(iii) a swimmer, or;

(iv) a raft used for swimming or diving raft; or

(v) a moored, anchored, or nonmotorized watercraft at greater than slow-no wake speed;

(4) while towing a person on water skis, a kneeboard, an inflatable craft, or any other device unless:

(i) an observer is on board; or

(ii) the personal watercraft is equipped with factory-installed or factory-specified accessory mirrors that give the operator a wide field of vision to the rear;

Journal of the House - 109th Day - Thursday, April 9, 1998 - Top of Page 9849

(5) without the lanyard-type engine cutoff switch being attached to the person, clothing, or personal flotation device of the operator, if the personal watercraft is equipped by the manufacturer with such a device;

(6) if any part of the spring-loaded throttle mechanism has been removed, altered, or tampered with so as to interfere with the return-to-idle system;

(7) to chase or harass wildlife;

(8) through emergent or floating vegetation at other than a slow-no wake speed;

(9) in a manner that unreasonably or unnecessarily endangers life, limb, or property, including weaving through congested watercraft traffic, jumping the wake of another watercraft within 100 150 feet of the other watercraft, or operating the watercraft while facing backwards; or

(10) in any other manner that is not reasonable and prudent; or

(11) without a personal watercraft rules decal, issued by the commissioner, attached to the personal watercraft so as to be in full view of the operator.

(b) Paragraph (a), clause (3), does not apply to a person operating a personal watercraft to launch or land a person on water skis, a kneeboard, or similar device by the most direct route to open water.

Sec. 3. Minnesota Statutes 1996, section 86B.313, subdivision 3, is amended to read:

Subd. 3. [OPERATOR'S PERMIT.] Except in the case of an emergency, a person 13 years of age or over but less than 18 years of age may not operate a personal watercraft, regardless of horsepower, without possessing a valid watercraft operator's permit as required by section 86B.305, unless there is a person 18 21 years of age or older on board the craft. In addition to the permit requirement, a person 13 years of age operating a personal watercraft must maintain unaided observation remain under visual supervision by a person 18 who is 21 years of age or older. It is unlawful for the An owner of a personal watercraft to may not permit the personal watercraft to be operated contrary to this subdivision.

Sec. 4. Minnesota Statutes 1996, section 86B.313, subdivision 4, is amended to read:

Subd. 4. [DEALERS AND RENTAL OPERATIONS.] (a) A dealer of personal watercraft shall distribute a summary of the laws and rules governing the operation of personal watercraft and, upon request, shall provide instruction to a purchaser regarding:

(1) the laws and rules governing personal watercraft; and

(2) the safe operation of personal watercraft.

(b) A person who offers personal watercraft for rent:

(1) shall provide a summary of the laws and rules governing the operation of personal watercraft and provide instruction regarding the laws and rules and the safe operation of personal watercraft to each person renting a personal watercraft; and

(2) shall provide a United States Coast Guard approved Type I, II, III, or V personal flotation device and any other required safety equipment to all persons who rent a personal watercraft at no additional cost; and

(3) shall require that a watercraft operator's permit from this state or from the operator's state of residence be shown each time a personal watercraft is rented to any person younger than age 18 and shall record the permit on the form provided by the commissioner.

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(c) Each dealer of personal watercraft or person offering personal watercraft for rent shall have the person who purchases or rents a personal watercraft sign a form provided by the commissioner acknowledging that the purchaser or renter has been provided a copy of the laws and rules regarding personal watercraft operation and has read them. The form must be retained by the dealer or person offering personal watercraft for rent for a period of six months following the date of signature and must be made available for inspection by sheriff's deputies or conservation officers during normal business hours.

Sec. 5. Minnesota Statutes 1996, section 86B.805, is amended by adding a subdivision to read:

Subd. 3. [EXEMPTIONS FOR ENFORCEMENT WATERCRAFT.] The restrictions on hours and location of operation in this chapter do not apply to emergency, safety, and enforcement watercraft.

Sec. 6. [EFFECTIVE DATE.]

Section 1 is effective the day following final enactment. Sections 2 to 5 are effective on June 1, 1998."

Delete the title and insert:

"A bill for an act relating to personal watercraft; modifying provisions for the operation of personal watercraft; amending Minnesota Statutes 1996, sections 86B.101, subdivision 2; 86B.313, subdivisions 1, 3, and 4; and 86B.805, by adding a subdivision."

We request adoption of this report and repassage of the bill.

Senate Conferees: LeRoy A. Stumpf, Janet B. Johnson, Cal Larson, Dallas C. Sams and Dean E. Johnson.

House Conferees: Kris Hasskamp, Tom Osthoff, Betty McCollum, Peggy Leppik and John Tuma.

Hasskamp moved that the report of the Conference Committee on S. F. No. 1169 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.

S. F. No. 1169, A bill for an act relating to personal watercraft; increasing restrictions on personal watercraft; imposing additional requirements on renters and dealers of personal watercraft; exempting emergency, safety, and enforcement watercraft from certain watercraft restrictions; amending Minnesota Statutes 1996, sections 86B.313, subdivisions 1, 3, and 4; and 86B.805, by adding a subdivision.

The bill was read for the third time, as amended by Conference, and placed upon its repassage.

The question was taken on the repassage of the bill and the roll was called.

Winter moved that those not voting be excused from voting. The motion prevailed.

There were 102 yeas and 28 nays as follows:

Those who voted in the affirmative were:

Abrams Erhardt Jennings McCollum Pawlenty Stang
Anderson, B. Evans Johnson, A. McElroy Paymar Sykora
Anderson, I. Farrell Johnson, R. McGuire Pelowski Tingelstad
Bakk Finseth Juhnke Milbert Peterson Tomassoni
Bettermann Folliard Kahn Molnau Pugh Tompkins
Biernat Garcia Kalis Mullery Rest Trimble
Bishop Greenfield Kelso Munger Rhodes Tuma
Broecker Greiling Kinkel Murphy Rukavina Tunheim
Journal of the House - 109th Day - Thursday, April 9, 1998 - Top of Page 9851
Carlson Gunther Koskinen Ness Schumacher Van Dellen
Chaudhary Haas Kubly Nornes Seagren Wagenius
Clark, K. Hasskamp Larsen Olson, E. Seifert Weaver
Daggett Hausman Leppik Opatz Sekhon Wejcman
Dawkins Hilty Lieder Orfield Skare Wenzel
Delmont Holsten Long Osthoff Skoglund Winter
Dempsey Huntley Macklin Otremba, M. Slawik Wolf
Dorn Jaros Mares Ozment Solberg Workman
Entenza Jefferson Marko Paulsen Stanek Spk. Carruthers

Those who voted in the negative were:

Boudreau Dehler Knight Lindner Rifenberg Vandeveer
Bradley Erickson Knoblach Mulder Rostberg Westfall
Clark, J. Goodno Kraus Olson, M. Smith Westrom
Commers Harder Krinkie Osskopp Sviggum
Davids Kielkucki Kuisle Reuter Swenson, H.

The bill was repassed, as amended by Conference, and its title agreed to.

MOTION TO TAKE FROM TABLE

Kelso moved that the Conference Committee Report on H. F. No. 2874 be taken from the table. The motion prevailed and the Conference Committee Report on H. F. No. 2874 was taken from the table.

H. F. No. 2874, as amended by Conference, was again reported to the House.

The question recurred on the Sviggum motion that the House refuse to adopt the Conference Committee report on H. F. No. 2874, that the present House conference Committee be discharged, that the Speaker appoint a new Conference Committee on the part of the House, and that the bill be returned to the Conference Committee.

A roll call was requested and properly seconded.

The question was taken on the Sviggum motion and the roll was called. There were 54 yeas and 79 nays as follows:

Those who voted in the affirmative were:

Abrams Erhardt Knight Molnau Reuter Tingelstad
Anderson, B. Erickson Knoblach Mulder Rostberg Tompkins
Bettermann Finseth Krinkie Ness Seifert Tuma
Boudreau Goodno Kuisle Nornes Smith Van Dellen
Broecker Gunther Larsen Olson, M. Stanek Vandeveer
Clark, J. Haas Lindner Osskopp Stang Weaver
Commers Harder Mares Ozment Sviggum Westfall
Daggett Holsten McElroy Paulsen Swenson, H. Westrom
Dehler Kielkucki Milbert Pawlenty Sykora Workman

Journal of the House - 109th Day - Thursday, April 9, 1998 - Top of Page 9852

Those who voted in the negative were:

Anderson, I. Evans Johnson, R. Mahon Pelowski Tomassoni
Bakk Farrell Juhnke Mariani Peterson Trimble
Biernat Folliard Kahn Marko Pugh Tunheim
Bishop Garcia Kalis McCollum Rest Wagenius
Bradley Greenfield Kelso McGuire Rhodes Wejcman
Carlson Greiling Kinkel Mullery Rifenberg Wenzel
Chaudhary Hasskamp Koskinen Munger Rukavina Winter
Clark, K. Hausman Kraus Murphy Schumacher Wolf
Davids Hilty Kubly Olson, E. Seagren Spk. Carruthers
Dawkins Huntley Leighton Opatz Sekhon
Delmont Jaros Leppik Orfield Skare
Dempsey Jefferson Lieder Osthoff Skoglund
Dorn Jennings Long Otremba, M. Slawik
Entenza Johnson, A. Macklin Paymar Solberg

The motion did not prevail.

The question recurred on the Kelso motion that the report of the Conference Committee on H. F. No. 2874 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.

H. F. No. 2874, A bill for an act relating to education; kindergarten through grade 12; providing for general education; special education; interagency services and lifelong learning; facilities and organization; policies promoting academic excellence; education policy issues; libraries; state agencies; appropriating money; amending Minnesota Statutes 1996, sections 43A.17, subdivisions 9 and 10; 120.03, subdivision 1; 120.06, subdivision 2a; 120.064, subdivisions 5 and 11; 120.101, subdivisions 3 and 6; 120.17, subdivisions 1, 2, 3, 3a, 3b, 6, 7, 9, and 15; 120.1701, subdivisions 2, 5, 11, and 17; 120.173, subdivisions 1 and 6; 120.73, subdivision 1; 121.1115, by adding subdivisions; 121.908, subdivisions 2 and 3; 122.23, subdivision 6; 123.35, subdivision 19a; 123.39, subdivision 1, and by adding a subdivision; 123.935, subdivisions 1 and 2; 124.078; 124.14, subdivision 7, and by adding a subdivision; 124.17, subdivision 2, and by adding a subdivision; 124.248, subdivisions 1 and 1a; 124.2713, subdivision 6a; 124.273, by adding a subdivision; 124.32, by adding a subdivision; 124.323, by adding a subdivision; 124.646, subdivision 4; 124.755, subdivision 1; 124.95, subdivision 6; 124A.03, subdivisions 2b and 3c; 124A.034, subdivision 2; 124A.036, subdivisions 1a, 4, 6, and by adding a subdivision; 124A.22, by adding a subdivision; 124A.292, subdivision 3; 124A.30; 124C.45, subdivision 2; 124C.47; 124C.48, by adding a subdivision; 125.191; 126.12, subdivision 1; 126.237; 127.27, subdivisions 2 and 4; 256B.0625, subdivision 26; 260.015, subdivision 19; 260.132, subdivision 4; and 471.895, subdivision 1; Minnesota Statutes 1997 Supplement, sections 120.101, subdivision 5; 120.1701, subdivision 3; 120.181; 121.11, subdivision 7c; 121.1113, subdivision 1; 121.904, subdivision 4a; 124.17, subdivisions 1d, 6, and 7; 124.248, subdivisions 2a and 6; 124.2601, subdivisions 3 and 6; 124.2711, subdivision 2a; 124.2713, subdivision 6; 124.3111, subdivisions 2 and 3; 124.3201, subdivisions 1, 2, and 4; 124.6475; 124.648, subdivision 3; 124.91, subdivisions 1 and 5; 124.916, subdivision 2; 124A.036, subdivision 5; 124A.22, subdivisions 1 and 11; 124A.23, subdivision 1; 124A.28, subdivisions 1 and 1a; 124C.46, subdivisions 1 and 2; 126.79, subdivisions 3, 6, 7, 8, and 9; 127.27, subdivisions 10 and 11; 127.281; 127.31, subdivision 15; 127.32; 127.36, subdivision 1; and 127.38; Laws 1992, chapter 499, article 7, section 31; Laws 1997, First Special Session chapter 4, article 1, section 58; article 1, section 61, subdivision 3; article 2, section 51, subdivisions 2, 4, 5, and 29; article 3, section 23, by adding a subdivision; article 3, section 25, subdivisions 2 and 4; article 4, section 35, subdivision 9; article 5, section 24, subdivision 4; article 5, section 28, subdivisions 4, 9, and 12; article 6, section 20, subdivision 4; article 8, section 4, subdivision 3; article 9, section 11; article 9, section 12, subdivision 8; article 10, section 3, subdivision 2; article 10, section 4; and article 10, section 5; proposing coding for new law in Minnesota Statutes, chapters 120; 121; 124; 124A; and 126; repealing Minnesota Statutes 1996, sections 124.2713, subdivision 6b; 124.647; 124A.292, subdivisions 2 and 4; 124A.697; 124A.698; 124A.70; 124A.71; 124A.711, subdivision 1; 124A.72; and 124A.73; Minnesota Statutes 1997 Supplement, sections 124.2601, subdivisions 4 and 5; 124.912, subdivisions 2 and 3; 124A.711, subdivision 2; and 135A.081; Laws 1993, chapter 146, article 5, section 20, as amended; Laws 1997, chapter 231, article 1, section 17; Minnesota Rules, part 3525.2750, subpart 1, item B.

The bill was read for the third time, as amended by Conference, and placed upon its repassage.

Journal of the House - 109th Day - Thursday, April 9, 1998 - Top of Page 9853

The question was taken on the repassage of the bill and the roll was called. There were 105 yeas and 28 nays as follows:

Those who voted in the affirmative were:

Anderson, I. Evans Johnson, A. Mares Pawlenty Stang
Bakk Farrell Johnson, R. Mariani Paymar Tingelstad
Biernat Finseth Juhnke Marko Pelowski Tomassoni
Bishop Folliard Kahn McCollum Peterson Trimble
Broecker Garcia Kalis McGuire Pugh Tunheim
Carlson Goodno Kelso Milbert Rest Vandeveer
Chaudhary Greenfield Kinkel Mullery Rhodes Wagenius
Clark, J. Greiling Knoblach Munger Rifenberg Weaver
Clark, K. Haas Koskinen Murphy Rukavina Wejcman
Daggett Harder Kraus Nornes Schumacher Wenzel
Davids Hasskamp Kubly Olson, E. Seifert Westfall
Dawkins Hausman Larsen Opatz Sekhon Westrom
Dehler Hilty Leighton Orfield Skare Winter
Delmont Holsten Leppik Osskopp Skoglund Wolf
Dempsey Huntley Lieder Osthoff Slawik Spk. Carruthers
Dorn Jaros Long Otremba, M. Smith
Entenza Jefferson Macklin Ozment Solberg
Erhardt Jennings Mahon Paulsen Stanek

Those who voted in the negative were:

Abrams Commers Krinkie Mulder Seagren Tuma
Anderson, B. Erickson Kuisle Ness Sviggum Van Dellen
Bettermann Gunther Lindner Olson, M. Swenson, H. Workman
Boudreau Kielkucki McElroy Reuter Sykora
Bradley Knight Molnau Rostberg Tompkins

The bill was repassed, as amended by Conference, and its title agreed to.

MESSAGES FROM THE SENATE, Continued

The following messages were received from the Senate:

Mr. Speaker:

I hereby announce that the Senate does not accede to the request of the House to return S. F. No. 3353 to the Conference Committee for further consideration.

S. F. No. 3353, A bill for an act relating to the organization and operation of state government; appropriating money for environmental, natural resource, and agricultural purposes; providing for regulation of certain activities and practices; amending Minnesota Statutes 1996, sections 3.737, subdivisions 1, 4, and by adding a subdivision; 41A.09, subdivision 1a; 84.83, subdivision 3; 84.871; 84.943, subdivision 3; 86B.415, by adding a subdivision; 97A.037, subdivision 1; 97A.245; 103C.315, subdivision 4; 103F.155, subdivision 2; 103F.161, subdivision 2; 103G.271, subdivision 6; 115B.175, subdivision 3; and 116.07, subdivision 4h; 116.49, by adding a subdivision; Minnesota Statutes 1997 Supplement, sections 17.101, subdivision 5; 41A.09, subdivision 3a; 84.8205; 84.86, subdivision 1; and 97A.485, subdivision 6; repealing Minnesota Statutes 1997 Supplement, section 85.015, subdivision 1c; Laws 1991, chapter 275, section 3.

Said Senate File is herewith transmitted to the House for further consideration.

Patrick E. Flahaven, Secretary of the Senate

Journal of the House - 109th Day - Thursday, April 9, 1998 - Top of Page 9854

MOTION FOR RECONSIDERATION

Solberg moved that the vote whereby the House refused to adopt the Conference Committee report on S. F. No. 3353 on April 3, 1998, and voted to return the bill to Conference Committee be now reconsidered.

A roll call was requested and properly seconded.

POINT OF ORDER

Abrams raised a point of order pursuant to rule 3.04 relating to the motion for reconsideration. Speaker pro tempore Opatz ruled the point of order not well taken.

Abrams appealed the decision of the Chair.

A roll call was requested and properly seconded.

The vote was taken on the question "Shall the decision of Speaker pro tempore Opatz stand as the judgment of the House?" and the roll was called.

Winter moved that those not voting be excused from voting. The motion prevailed.

There were 65 yeas and 64 nays as follows:

Those who voted in the affirmative were:

Biernat Garcia Johnson, R. Mariani Osthoff Skoglund
Carlson Greenfield Juhnke Marko Otremba, M. Slawik
Chaudhary Greiling Kahn McCollum Paymar Solberg
Clark, K. Hasskamp Kalis McGuire Pelowski Trimble
Dawkins Hausman Kelso Milbert Peterson Tunheim
Delmont Hilty Kinkel Mullery Pugh Wagenius
Dorn Huntley Koskinen Munger Rest Wejcman
Entenza Jaros Leighton Murphy Rukavina Wenzel
Evans Jefferson Lieder Olson, E. Schumacher Winter
Farrell Jennings Long Opatz Sekhon Spk. Carruthers
Folliard Johnson, A. Mahon Orfield Skare

Those who voted in the negative were:

Abrams Dehler Knight Molnau Rifenberg Tompkins
Anderson, B. Dempsey Knoblach Mulder Rostberg Tuma
Bettermann Erhardt Kraus Ness Seagren Van Dellen
Bishop Erickson Krinkie Nornes Seifert Vandeveer
Boudreau Finseth Kuisle Olson, M. Smith Weaver
Bradley Goodno Larsen Osskopp Stanek Westfall
Broecker Gunther Leppik Ozment Stang Westrom
Clark, J. Haas Lindner Paulsen Sviggum Wolf
Commers Harder Macklin Pawlenty Swenson, H. Workman
Daggett Holsten Mares Reuter Sykora
Davids Kielkucki McElroy Rhodes Tingelstad

So it was the judgment of the House that the decision of Speaker pro tempore Opatz should stand.

Journal of the House - 109th Day - Thursday, April 9, 1998 - Top of Page 9855

The question recurred on the Solberg motion and the roll was called.

Winter moved that those not voting be excused from voting. The motion prevailed.

There were 66 yeas and 64 nays as follows:

Those who voted in the affirmative were:

Biernat Garcia Johnson, R. Mariani Osthoff Skoglund
Carlson Greenfield Juhnke Marko Otremba, M. Slawik
Chaudhary Greiling Kahn McCollum Paymar Solberg
Clark, K. Hasskamp Kalis McGuire Pelowski Tomassoni
Dawkins Hausman Kinkel Milbert Peterson Trimble
Delmont Hilty Koskinen Mullery Pugh Tunheim
Dorn Huntley Kubly Munger Rest Wagenius
Entenza Jaros Leighton Murphy Rukavina Wejcman
Evans Jefferson Lieder Olson, E. Schumacher Wenzel
Farrell Jennings Long Opatz Sekhon Winter
Folliard Johnson, A. Mahon Orfield Skare Spk. Carruthers

Those who voted in the negative were:

Abrams Daggett Holsten Mares Reuter Tingelstad
Anderson, B. Davids Kielkucki McElroy Rhodes Tompkins
Anderson, I. Dehler Knight Molnau Rifenberg Van Dellen
Bakk Dempsey Knoblach Mulder Rostberg Vandeveer
Bettermann Erhardt Kraus Ness Seagren Weaver
Bishop Erickson Krinkie Nornes Seifert Westfall
Boudreau Finseth Kuisle Olson, M. Smith Westrom
Bradley Goodno Larsen Osskopp Stanek Wolf
Broecker Gunther Leppik Ozment Stang Workman
Clark, J. Haas Lindner Paulsen Sviggum
Commers Harder Macklin Pawlenty Sykora

The motion prevailed.

S. F. No. 3353, as amended by Conference, was reported to the House.

Mr. Speaker:

I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on:

S. F. No. 3353.

The Senate has repassed said bill in accordance with the recommendation and report of the Conference Committee. Said Senate File is herewith transmitted to the House.

Patrick E. Flahaven, Secretary of the Senate

CONFERENCE COMMITTEE REPORT ON S. F. NO. 3353

A bill for an act relating to the organization and operation of state government; appropriating money for environmental, natural resource, and agricultural purposes; providing for regulation of certain activities and practices; amending Minnesota Statutes 1996, sections 3.737, subdivisions 1, 4, and by adding a subdivision;
Journal of the House - 109th Day - Thursday, April 9, 1998 - Top of Page 9856

41A.09,subdivision 1a; 84.83, subdivision 3; 84.871; 84.943, subdivision 3; 86B.415, by adding a subdivision; 97A.037, subdivision 1; 97A.245; 103C.315, subdivision 4; 103F.155, subdivision 2; 103F.161, subdivision 2; 103G.271, subdivision 6; 115B.175, subdivision 3; and 116.07, subdivision 4h; 116.49, by adding a subdivision; Minnesota Statutes 1997 Supplement, sections 17.101, subdivision 5; 41A.09, subdivision 3a; 84.8205; 84.86, subdivision 1; and 97A.485, subdivision 6; repealing Minnesota Statutes 1997 Supplement, section 85.015, subdivision 1c; Laws 1991, chapter 275, section 3.

April 3, 1998

The Honorable Allan H. Spear

President of the Senate

The Honorable Phil Carruthers

Speaker of the House of Representatives

We, the undersigned conferees for S. F. No. 3353, report that we have agreed upon the items in dispute and recommend as follows:

That the House recede from its amendments and that S. F. No. 3353 be further amended as follows:

Delete everything after the enacting clause and insert:

"Section 1. [ENVIRONMENT AND NATURAL RESOURCES APPROPRIATIONS.]

The sums in the columns headed "APPROPRIATIONS" are appropriated from the general fund, or another named fund, to the agencies and for the purposes specified in this act to be available for the fiscal years indicated for each purpose. The figures "1998" and "1999," where used in this act, mean that the appropriation or appropriations listed under them are available for the year ending June 30, 1998, or June 30, 1999, respectively.

SUMMARY BY FUND

1998 1999

General Fund $5,294,000$12,498,000

Natural Resources Fund -0- 500,000

Total 5,294,000 12,998,000

APPROPRIATIONS

Available for the Year

Ending June 30

1998 1999

Sec. 2. POLLUTION CONTROL AGENCY 180,000 1,210,000

$350,000 in fiscal year 1999 is added to the appropriation for county feedlot program grants in Laws 1997, chapter 216, section 2, subdivision 2. In fiscal year 1999 delegated counties shall be eligible to receive a grant of either: $40 multiplied by the number of livestock or poultry farms with sales greater than $10,000, as reported in the 1992 Census of Agriculture, published by the United States Bureau of Census; or $50 multiplied by the number of feedlots with greater than ten animal units, as determined by a level 2 or level 3 feedlot inventory conducted in accordance with the Feedlot Inventory Guidebook published by the board of water and soil resources, dated June 1991.

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$50,000 in fiscal year 1999 is for the bioaccumulative residues research program at the University of Minnesota-Duluth to analyze fish contaminants, including researching the presence of selenium in fish samples. As a condition of this grant, the University of Minnesota-Duluth must submit a work program and submit semiannual progress reports as provided in Minnesota Statutes, section 116P.05, subdivision 2, paragraph (c). This is a one-time appropriation.

$180,000 in fiscal year 1998 is for the cost of administering the wastewater infrastructure program. This appropriation is available until June 30, 2002.

$50,000 in fiscal year 1999 is for a scoping study for a cost-benefit model to analyze the costs of water quality standards. This is a one-time appropriation.

$375,000 in fiscal year 1999 is for acceleration of research being conducted on deformities and possible causes found in amphibians. The funding must be shared with the departments of agriculture, natural resources, and health and with the appropriate University of Minnesota departments. $39,000 of the appropriation must be shared with Hamline University for its friends of the frog program. The money must be used for research and monitoring of amphibian deformities, including, but not limited to, a possible groundwater surface water interconnection. The money may be used as a match for any federal dollars available. This is a one-time appropriation.

$300,000 in fiscal year 1999 is for expansion of permitting activities under the federal Clean Water Act that affect feedlots in excess of 1,000 animal units.

The availability of the appropriation in Laws 1997, chapter 216, section 15, subdivision 14, paragraph (c), to monitor and research the effects of endocrine disrupting chemicals in surface waters is extended to June 30, 2000.

$85,000 in fiscal year 1999 is for a grant to Benton county to pay the principal amount due in fiscal year 1999 on bonds issued by the county to pay part of a final order or settlement of a lawsuit for environmental response costs at a mixed municipal solid waste facility. This money and any future money appropriated for this purpose must be apportioned by Benton county among the local units of government that were parties to the final order or settlement in the same proportion that the local units of government agreed to as their share of the liability. This is a one-time appropriation.

Sec. 3. ZOOLOGICAL BOARD 1,500,000 -0-

$1,500,000 is for zoo operations. This is a one-time supplemental appropriation. By September 1, 1998, the board shall report to the governor, the chair of the senate environment and agriculture

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budgetdivision, and the chair of the house environment, natural resources and agriculture finance committee on recommendations to internally manage the effects of lowered attendance projections and methods for improving attendance forecasting.

Sec. 4. NATURAL RESOURCES 2,974,0007,717,000

Summary by Fund

General Fund 2,974,000 7,267,000

Natural Resources Fund -0- 450,000

$1,504,000 in fiscal year 1999 is for flood-related activities in the division of waters. $200,000 of this appropriation is for alternative flood control measures beneficial to the environment, such as culvert downsizing on man-made waterways and wetland restoration. $10,000 of this appropriation is for a grant to the Marine-on-St. Croix watershed management organization for engineering analysis of flooding problems along Twin lake. Notwithstanding Minnesota Statutes, section 103F.161, subdivision 2, paragraph (c), this appropriation may be combined with a flood hazard mitigation grant previously awarded to the watershed management organization. $75,000 of this appropriation is for a grant under Minnesota Statutes, section 103F.161, to Swift county for improvements at Lake Oliver. $30,000 of this appropriation is for a grant under Minnesota Statutes, section 103F.161, to the Chisago Lake improvement district for improvements to the outlet project. The portion of this appropriation to be included in the department's base is $1,189,000 for each fiscal year.

$150,000 in fiscal year 1999 is for transfer to the Minnesota forest resources council for implementation of the Sustainable Forest Resources Act pursuant to Minnesota Statutes, chapter 89A. This a one-time appropriation.

$476,000 in fiscal year 1998 is for sealing inactive wells on state-owned land. The commissioner shall determine project priorities as appropriate based upon need. This appropriation is available until June 30, 2002.

$430,000 in fiscal year 1999 is for operations at Fort Snelling park and for statewide resource protection. The portion of this appropriation to be included in the department's base is $200,000 in each fiscal year.

$250,000 in fiscal year 1999 is for population and habitat objectives of the nongame wildlife management program.

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$180,000 in fiscal year 1998 and $120,000 in fiscal year 1999 are for increased public involvement in white pine management planning and to accelerate white pine management on state forest lands. Any amount of this appropriation not used in fiscal year 1998 is available in fiscal year 1999.

$370,000 in fiscal year 1998 and $230,000 in fiscal year 1999 are for improvement of camper safety and security in state forest campgrounds and to make repairs to selected state forest campgrounds.

$450,000 in fiscal year 1999 is from the water recreation account in the natural resources fund for enforcement of personal watercraft laws. At least one-half of the conservation officers hired pursuant to this item must be from the protected classes. $225,000 of this appropriation is for grants to counties where there is significant use of personal watercraft on waters in and bordering the counties. The grants must be used for personal watercraft safety education and law enforcement, pursuant to Minnesota Statutes, section 86B.415, subdivision 7a.

$250,000 in fiscal year 1999 is for operational costs related to wildlife management at the area level.

$470,000 in fiscal year 1998 and $250,000 in fiscal year 1999 are for the interpretation, management, and monitoring of scientific and natural areas.

$340,000 in fiscal year 1999 is for technical assistance and grants to assist local government units and organizations in the metropolitan area to acquire and develop natural areas and greenways.

$300,000 in fiscal year 1999 is for state trail maintenance and amenities.

$250,000 in fiscal year 1999 is for a grant to the city of North St. Paul for improvements including trail connections, lighting, and landscaping related to the trail bridge over Highway 36 in North St. Paul. This is a one-time appropriation.

$500,000 in fiscal year 1999 is for further work to develop protected water flow recommendations on Minnesota streams and for support of river restoration expertise and its application to the Whitewater river and Sandy river. $300,000 of this amount is a one-time appropriation for stream protection on Brown's creek in Washington county.

$53,000 in fiscal year 1999 is for minerals cooperative environmental research. $26,500 is available only as matched by $1 of nonstate money for each $1 of state money. This appropriation is added to the appropriation in Laws 1997, chapter 216, section 5, subdivision 2.

$75,000 in fiscal year 1998 is to repair state forest land in Morrison, Mille Lacs, Kanabec, and Crow Wing counties.

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$100,000 in fiscal year 1998 is for development and maintenance of habitat and facilities, and data management system development at Swan lake wildlife management area.

$1,175,000 in fiscal year 1999 is for wildlife habitat improvement, wildlife population surveys, monitoring, private lands cost-sharing for wildlife habitat and forest stewardship, and project grants to local governments and private organizations to enhance fish, wildlife, and native plant habitats. Of this amount, $375,000 is for brush land and forest habitat renewal for sharp-tailed grouse and other species of birds dependent on open brush lands in forest areas by providing financial and technical assistance to landowners as well as brush land renewal on public lands; $300,000 is for wildlife habitat improvements through cost-sharing and technical assistance to private landowners; $300,000 is for forest stewardship improvements through cost-sharing and technical assistance to private landowners; and $200,000 is for wildlife population surveys, monitoring, evaluation, and constituent surveys. The portion of this appropriation to be included in the department's base is $1,075,000 in each fiscal year. The base amounts for each specific item are $325,000, $275,000, $275,000, and $200,000, respectively.

$100,000 in fiscal year 1998 is for engineering and hydraulic studies in conjunction with the proposed development of an urban whitewater trail along the Mississippi river in the lower St. Anthony Falls area below the stone arch bridge in Minneapolis and to examine the economic impact, market use potential, public safety concerns, environmental considerations, and land and water use impacts of the proposed Mississippi Whitewater trail. The commissioner must coordinate and work with affected local, state, and federal governments and interested citizen groups, including, but not limited to, the National Park Service, the United States Army Corps of Engineers, the University of Minnesota, the Minnesota historical society, the metropolitan parks and open space commission, the Minneapolis park board, and the Mississippi Whitewater Park Development Corporation. The commissioner must report to the senate environment and agriculture budget division and the house environment, natural resources, and agriculture finance committee by November 1, 1999, on the findings from the studies required under this item. This appropriation is available until June 30, 1999.

$100,000 in fiscal year 1998 is for a grant to the township of Linwood in Anoka county to construct a surface water drainage system to control water pollution. This appropriation is available until expended. Expenses incurred by Linwood township related to the proposed project, prior to this appropriation, may be considered as part of the total project cost for purposes of satisfying the requirements of Minnesota Statutes, section 103F.161, subdivision 2, paragraph (c).

$200,000 in fiscal year 1998 is added to the appropriation in Laws 1997, chapter 216, section 15, subdivision 4, paragraph (c), clause (4), for the statewide conservation partners program.

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$215,000 in fiscal year 1998 and $250,000 in fiscal year 1999 are to enhance customer service and data access through the collaborative use of technology, to improve communication with citizens and stakeholders, to provide technical assistance and data delivery to citizens and local government, and for the Minnesota Environmental/Natural Resource Electronic Library (MENREL) to accelerate the development of integrated and indexed environmental and geographic data catalogs, cross-agency search and retrieval, and content-rich libraries of environmental data and information.

$350,000 in fiscal year 1998 is to serve as the state match to federal money to remove surplus sediment along the east bank of the Mississippi river at Little Falls. The commissioner must coordinate and work with the United States Army Corps of Engineers on this project. This appropriation is available until expended.

$203,000 in fiscal year 1998 is for a forestry information management system to improve the timber sale program, forest development model, and fire management.

$35,000 in fiscal year 1998 and $115,000 in fiscal year 1999 are for expansion of the "Becoming an Outdoors Woman Program," and for a position to coordinate shooting range development on a statewide basis. Of this amount, $35,000 in fiscal year 1998 is available until June 30, 1999, to match an equal amount of nonstate money for shooting range partnership agreements and is a one-time appropriation.

$50,000 in fiscal year 1998 is for ecosystem-based management workshops for teams of local officials, natural resource managers, and citizens.

$200,000 in fiscal year 1999 is for aquatic plant restoration.

$125,000 in fiscal year 1999 is for local initiatives grants program administration.

$150,000 in fiscal year 1999 is for long-term monitoring of lake ecosystems.

The appropriations in Laws 1996, chapter 407, section 3, for the Iron Range off-highway vehicle recreation area are available until June 30, 2000.

$100,000 in fiscal year 1999 is for an enhanced lake classification system to provide comprehensive lake descriptions. This appropriation is added to the base in fiscal year 2000 only.

$200,000 in fiscal year 1999 is to identify lake watershed boundaries for lakes greater than 100 acres in a geographic information system format. This appropriation is added to the base in fiscal year 2000 only.

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$150,000 in fiscal year 1999 is to develop methodologies to assess the cumulative effects of development on lakes. This appropriation is added to the base in fiscal year 2000 only.

$100,000 in fiscal year 1999 is for a grant to the Upper Swede Hollow Association for improvements in and around Swede Hollow Park. The appropriation must be used for plantings, improvements to railway trestles, trail repair, reconstruction of the pond outlet, and other trail improvements. This is a one-time appropriation.

$50,000 in fiscal year 1998 and $50,000 in fiscal year 1999 are for an agreement with the University of Minnesota College of Architecture and Landscape Architecture to develop environmental brownfields mitigation strategies. This is a one-time appropriation.

The appropriation in Laws 1997, chapter 216, section 5, subdivision 4, for grants to local community forest ecosystem health programs is available until June 30, 2000.

$25,000 in fiscal year 1999 is for promotion and enhanced public awareness of the RIM critical habitat license plate program.

Sec. 5. BOARD OF WATER AND SOIL RESOURCES 300,0001,100,000

$200,000 in fiscal year 1998 is for a grant to the Faribault county soil and water conservation district for the quad-lakes restoration project in Faribault and Blue Earth counties and is available until expended.

$1,000,000 in fiscal year 1999 is for grants to soil and water conservation districts for cost-sharing contracts for water quality management on feedlots. Priority must be given to feedlot operators who have received a notice of violation and for feedlots in counties that are conducting or have completed a level 2 or level 3 feedlot inventory.

$100,000 in fiscal year 1998 is for a grant to the University of Minnesota extension service to improve existing Minnesota extension shoreland guidance and other related guidebooks. This is a one-time appropriation, available until expended.

$100,000 in fiscal year 1999 is for a pilot grant program to soil and water conservation districts for cost-sharing contracts with landowners to establish and maintain plantings of trees, shrubs, and grass strips that are native species of a local ecotype for the primary purpose of controlling snow deposition for the benefit of public transportation. The board, in consultation with the Minnesota Association of Soil and Water Conservation Districts, shall select at least five districts for participation in the pilot program. Up to 20 percent of the appropriation may be used for the technical and administrative expenses of soil and water conservation districts to implement this item. The board shall enter into grant agreements

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toaccomplish the transfer of funds to soil and water conservation districts and to establish guidelines to implement this item. Cost-sharing contracts between soil and water conservation districts and landowners may provide for annual payments to landowners for maintenance. This appropriation is available until spent.

Sec. 6. AGRICULTURE 310,000 2,169,000

$110,000 in fiscal year 1998 and $250,000 in fiscal year 1999 are for expansion of efforts to prevent the establishment and spread of gypsy moths in Minnesota.

$25,000 in fiscal year 1998 and $325,000 in fiscal year 1999 are for a state meat inspection program.

$75,000 in fiscal year 1999 is for additional matching funds for the WIC coupon program.

$25,000 in fiscal year 1999 is for additional livestock depredation payments pursuant to Minnesota Statutes, section 3.737.

$50,000 in fiscal year 1999 is added to the appropriation in Laws 1997, chapter 216, section 7, subdivision 4, for beaver damage control grants. This is a one-time appropriation.

Any unencumbered balance from the appropriation in Laws 1997, chapter 216, section 7, subdivision 4, for beaver damage control grants for the first year of the biennium is available for the second year of the biennium.

$100,000 in fiscal year 1998 is added to the appropriation in Laws 1997, chapter 216, section 7, subdivision 4, to accomplish reform of the federal milk market order system and for legal actions opposing the Northeast Dairy Compact. This appropriation is available until June 30, 1999.

$500,000 in fiscal year 1999 is added to the appropriation for dairy diagnostic teams in Laws 1997, chapter 216, section 7, subdivision 2, and is added to the department's base.

$267,000 in fiscal year 1999 is for a pilot program to expand the concept of the Minnesota grown program. The program is to assist low-income families in accessing nutritious and affordable food and to promote economic development by creating new markets and food distribution systems. $17,000 of this appropriation is for costs of administration. $87,000 of this appropriation is for payment to the Sustainable Resources Center for the purposes of this appropriation. $163,000 of this appropriation is for food coupons. The coupons shall be distributed and administered according to this section, subject to the approval of the commissioner of agriculture. The portion of this appropriation to be included in the department's base for fiscal year 2001 is $200,000, which may only be used for food coupons.

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The Sustainable Resources Center, in conjunction with the Minnesota Food Association, and subject to the approval of the commissioner of agriculture, shall select up to two urban and up to two rural communities as locations for activities that will serve as models for sustainable community food systems. These activities shall include but are not limited to:

(1) conducting food system assessments in each community to identify assets and needs;

(2) supporting the creation of producer distribution networks to establish direct links to low-income consumers; and

(3) working with food processing plants in the selected community to develop the support services needed to make entry-level jobs accessible to low-income people.

During each fiscal year beginning in fiscal year 1999, the commissioner of agriculture, within the funds available, shall provide coupons to the Sustainable Resources Center for distribution to participating eligible individuals. The coupons must be issued in two allocations each fiscal year. Eligible individuals may receive up to $100 in coupons per year, subject to the limitation that additional eligible individuals who reside in the same household may receive up to $20 in coupons per year, up to a maximum of $200 per household per year. Eligible individuals include individuals who are residents of the communities in the pilot project and are eligible for the Minnesota grown coupons under this section. Eligible individuals include:

(1) individuals who are in a state-verified income program; and

(2) individuals who are selected by the Sustainable Resources Center based on guidelines targeting specific populations within the pilot communities.

The amount of the Minnesota grown coupons must be excluded as income under the AFDC, refugee cash assistance, general assistance, MFIP, MFIP-R, MFIP-S, food stamp programs, state housing subsidy programs, low-income energy assistance programs, and other programs that do not count food stamps as income.

The coupons must be clearly labeled as redeemable only for products licensed to use the Minnesota grown logo or labeling statement under Minnesota Statutes, section 17.102. Coupons may be redeemed by farmers, custom meat processors, community-supported agriculture farms, and other entities approved by the commissioner of agriculture. The person accepting the coupon is responsible for its redemption only on products licensed to use the Minnesota grown logo or labeling statement. The commissioner must receive and reimburse all valid coupons redeemed pursuant to this section.

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The commissioner may establish criteria for vendor eligibility and may enforce the Minnesota grown coupon program according to Minnesota Statutes, sections 17.982 to 17.984.

$160,000 in fiscal year 1999 is for value-added agricultural product processing and marketing grants under Minnesota Statutes, section 17.101, subdivision 5. This appropriation and the appropriation in Laws 1997, chapter 216, section 7, subdivision 3, for grants under Minnesota Statutes, section 17.101, subdivision 5, are available until June 30, 2001.

$125,000 in fiscal year 1999 is for a grant to the Market Champ, Inc. board. This is a one-time appropriation.

$25,000 in fiscal year 1999 is for the Passing on the Farm Center established in Minnesota Statutes, section 17.985. This is a one-time appropriation.

$200,000 in fiscal year 1999 is to expand the shared savings loan program under Minnesota Statutes, section 17.115, to include a program of revolving loans for demonstration projects of farm manure digester technology. Notwithstanding the limitations of Minnesota Statutes, section 17.115, subdivision 2, paragraphs (b) and (c), loans under this program are no-interest loans in principal amounts not to exceed $200,000 and may be made to any resident of this state. Loans for one or more projects must be made only after the commissioner seeks applications. Loans under this program may be used as a match for federal loans or grants. Money repaid from loans must be returned to the revolving fund for future projects. This is a one-time appropriation.

$50,000 in fiscal year 1998 is for a grant to the University of Minnesota for investigation, screening, and a survey of existing research into the design and development of low-cost alternatives to pasteurization that provide comparable bacteria count reduction in fruit juice. The commissioner must report to the chair of the house environment, natural resources, and agriculture finance committee and the chair of the senate environment and agriculture budget division by January 15, 1999, regarding the results of the research and with a recommendation for further action.

$25,000 in fiscal year 1998 is for a grant to the University of Minnesota to study factors associated with farms that experience varying levels of livestock depredation caused by timber wolves. The university shall make recommendations to the commissioner to assist in the development of best management practices to prevent timber wolf depredation on livestock farms. This appropriation is available until June 30, 1999.

$60,000 in fiscal year 1999 is for payment of attorney general and other costs of assisting local government units in the process of adoption, review, or modification of ordinances relating to animal feedlots. This appropriation is available until June 30, 1999.

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$107,000 in fiscal year 1999 is for development of the program under Minnesota Statutes, section 18C.430. This is a one-time appropriation.

As a condition of receiving state funds, the ethanol production plant in St. Paul must provide year-round public access to the well that was publicly accessible when the plant was a brewery.

Sec. 7. UNIVERSITY OF MINNESOTA -0- 292,000

For alternative and sustainable hog production facilities and programs. $125,000 of this appropriation is for a grant to the Minnesota Institute for Sustainable Agriculture to extend funding for the Alternative Swine Production Systems Task Force and coordinator. $30,000 of this appropriation is for a grant to the Minnesota Institute for Sustainable Agriculture for alternative and sustainable hog production programs and program support, including on-farm systems research. $137,000 of this appropriation is to establish a faculty position in agricultural and community sociology at the University of Minnesota-Morris, focusing on the sustainability of agricultural systems and rural communities. The position shall be defined by the Alternative Swine Production Systems Task Force. This is a one-time appropriation.

Sec. 8. BOARD OF ANIMAL HEALTH 30,000 160,000

$30,000 in fiscal year 1998 and $160,000 in fiscal year 1999 is for expansion of the program for the control of paratuberculosis ("Johne's disease") in domestic bovine herds. These appropriations are in addition to the appropriations for the same purposes in Laws 1997, chapter 216, section 8.

Sec. 9. ADMINISTRATION -0- 350,000

Summary by Fund

General Fund -0- 300,000

Natural Resources Fund -0- 50,000

$50,000 is from the water recreation account in the natural resources fund for a study by a qualified consultant to determine the actual percentage of all gasoline received in and produced or brought into the state, except gasoline used for aviation purposes, that is being used as fuel for watercraft in this state. The study must include a determination of the amount of gasoline consumed by vehicles in the course of transporting watercraft on the highways of this state. The commissioner shall consult with the commissioners of revenue, transportation, and natural resources in preparing the request for proposals for the study and in selecting the consultant to perform the study. The commissioner shall report to the chairs of the senate and

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house environment and natural resources committees, the senate environment and agriculture budget division, the house environment, natural resources, and agriculture finance committee, the senate transportation committee, and the house transportation and transit committee on the results of the study by February 1, 1999. This is a one-time appropriation.

$300,000 is for modifications of department of natural resources business systems to address year 2000 changes. This appropriation is added to the appropriation for technology management in Laws 1997, chapter 202, article 1, section 12, subdivision 7. This is a one-time appropriation.

Sec. 10. ETHANOL DEVELOPMENT FUND TRANSFER

As cash flow in the ethanol development fund under Minnesota Statutes, section 41B.044, permits, but no later than June 30, 1999, the commissioner of finance, in consultation with the commissioner of agriculture, shall transfer $400,000 from the unencumbered balance in the fund to the general fund. This transfer is in addition to the transfer required by Laws 1997, chapter 216, section 17.

Sec. 11. Minnesota Statutes 1996, section 3.737, subdivision 1, is amended to read:

Subdivision 1. [COMPENSATION REQUIRED.] (a) Notwithstanding section 3.736, subdivision 3, paragraph (e), or any other law, a livestock owner shall be compensated by the commissioner of agriculture for livestock that is destroyed by a timber wolf or is so crippled so by a timber wolf that it must be destroyed by an animal classified as endangered under the federal Endangered Species Act of 1973. The owner is entitled to the fair market value of the destroyed livestock, not to exceed $400 $750 per animal destroyed, as determined by the commissioner, upon recommendation of the county a university extension agent for the owner's county and a conservation officer.

(b) Either the agent or the conservation officer must make a personal inspection of the site. The agent or the conservation officer must take into account factors in addition to a visual identification of a carcass when making a recommendation to the commissioner. The commissioner, upon recommendation of the agent and conservation officer, shall determine whether the livestock was destroyed by an animal described in this subdivision a timber wolf and any deficiencies in the owner's adoption of the best management practices developed in subdivision 5. The commissioner may authorize payment of claims only if the agent and the conservation officer have recommended payment. The owner shall file a claim on forms provided by the commissioner and available at the county university extension agent's office.

Sec. 12. Minnesota Statutes 1996, section 3.737, subdivision 4, is amended to read:

Subd. 4. [PAYMENT, DENIAL OF COMPENSATION.] (a) If the commissioner finds that the livestock owner has shown that the loss of the livestock was likely caused more probably than not by an animal classified as an endangered species a timber wolf, the commissioner shall pay compensation as provided in this section and in the rules of the department.

(b) For a timber wolf depredation claim submitted by a livestock owner after September 1, 1999, the commissioner shall, based on the report from the university extension agent and conservation officer, evaluate the claim for conformance with the best management practices developed by the commissioner in subdivision 5. The commissioner must provide to the livestock owner an itemized list of any deficiencies in the livestock owner's adoption of best management practices that were noted in the university extension agent's or conservation officer's report.

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(c) If the commissioner denies compensation claimed by an owner under this section, the commissioner shall issue a written decision based upon the available evidence. It shall include specification of the facts upon which the decision is based and the conclusions on the material issues of the claim. A copy of the decision shall be mailed to the owner.

(d) A decision to deny compensation claimed under this section is not subject to the contested case review procedures of chapter 14, but may be reviewed upon a trial de novo in a court in the county where the loss occurred. The decision of the court may be appealed as in other civil cases. Review in court may be obtained by filing a petition for review with the administrator of the court within 60 days following receipt of a decision under this section. Upon the filing of a petition, the administrator shall mail a copy to the commissioner and set a time for hearing within 90 days of the filing.

Sec. 13. Minnesota Statutes 1996, section 3.737, is amended by adding a subdivision to read:

Subd. 5. [TIMBER WOLF BEST MANAGEMENT PRACTICES.] By September 1, 1999, the commissioner must develop best management practices to prevent timber wolf depredation on livestock farms. The commissioner shall periodically update the best management practices when new practices are found by the commissioner to prevent timber wolf depredation on livestock farms. The commissioner must provide an updated copy of the best management practices for timber wolf depredation to all livestock owners who are still engaged in livestock farming and have previously submitted livestock claims under this section.

Sec. 14. Minnesota Statutes 1997 Supplement, section 17.101, subdivision 5, is amended to read:

Subd. 5. [VALUE-ADDED AGRICULTURAL LIVESTOCK PRODUCT PROCESSING AND MARKETING GRANT PROGRAM.] (a) For purposes of this section,:

(1) "livestock or dairy agricultural commodity" means a material produced for use in or as food, feed, seed, or fiber and includes crops for fiber, food, oilseeds, seeds, livestock, livestock products, dairy, dairy products, poultry, poultry products, and other products or by-products of the farm produced for the same or similar use, except ethanol; and

(2) "agricultural product processing facility" means land, buildings, structures, fixtures, and improvements located or to be located in Minnesota and used or operated primarily for the processing or production of marketable products from agricultural livestock or dairy commodities produced in Minnesota.

(b) The commissioner shall establish and implement a value-added agricultural livestock and dairy product processing and marketing grant program to help farmers finance new cooperatives that organize for the purposes of operating livestock and dairy agricultural product processing facilities and for marketing activities related to the sale and distribution of processed livestock and dairy agricultural products.

(c) To be eligible for this program a grantee must:

(1) be a cooperative organized under chapter 308A;

(2) certify that all of the control and equity in the cooperative is from farmers as defined in section 500.24, subdivision 2, who are actively engaged in livestock or dairy agricultural commodity production;

(3) be operated primarily for the processing of livestock or dairy agricultural commodities produced in Minnesota;

(4) receive livestock or dairy agricultural commodities produced primarily by shareholders or members of the cooperative; and

(5) have no direct or indirect involvement in the production of livestock and dairy agricultural commodities.

(d) The commissioner may receive applications from and make grants up to $50,000 for feasibility, marketing analysis, and predesign of facilities to eligible cooperatives. The commissioner shall give priority to applicants who use the grants for planning costs related to an application for financial assistance from the United States Department of Agriculture, Rural Business - Cooperative Service.

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Sec. 15. [17.987] [MARKET CHAMP, INC; ACCESS TO QUALITY GENETICS BY FAMILY FARMERS.]

Subdivision 1. [ESTABLISHMENT; PURPOSE.] Market Champ, Inc. is established as a nonprofit public corporation under chapter 317A and is subject to the provisions of that chapter. The corporation is neither a state agency nor an entity within the University of Minnesota. The purpose of the corporation is to transfer high quality swine genetic material from the University of Minnesota to the family farmers of the state in order to enhance the state's economic growth and the competitiveness of family farmers. Market Champ, Inc. shall assist Minnesota swine producers in understanding genetic technologies and developing improved animal genetic lines.

Subd. 2. [DUTIES.] Market Champ, Inc. shall:

(1) encourage family farmers to use the highest quality swine genetics;

(2) facilitate the transfer of the latest swine genetic research and technology information and materials from the University of Minnesota and other sources to family farmers;

(3) assist family farmers to market the swine they produce;

(4) develop a system for tracking family farmers' products through the processing, meat packing, and marketing system to determine the market value of the genetic technology;

(5) provide genetic testing, counseling, and assistance in genetic decisions to identify new market developments and capture value-added opportunities;

(6) provide centralized testing services with regional technology transfer specialists;

(7) secure access to new genetic tests and services for all Minnesota producers through licensing agreements; and

(8) assist family farmers who do not otherwise have access to high quality genetic technologies.

Subd. 3. [BOARD OF DIRECTORS.] (a) Market Champ, Inc. shall be governed by a board of directors consisting of 11 voting members, appointed by the governor.

(b) The members of the board shall be:

(1) two representatives of small family farmers with under 250 sows;

(2) one representative of purebred swine producers;

(3) one member of the Minnesota Pork Producers Association;

(4) one representative of the pork industry;

(5) one member of the meat packing industry;

(6) one member representing the University of Minnesota;

(7) one member representing Minnesota state colleges and universities;

(8) the commissioner of agriculture;

(9) the chair of the senate committee on agriculture and rural development, or the chair's designee; and

(10) the chair of the house committee on agriculture, or the chair's designee.

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Members listed in clauses (1) to (5) must be recommended by the president of the University of Minnesota or a designee of the president, in consultation with the chairs of the senate and house of representatives committees with jurisdiction over agricultural policy and finance issues.

(c) Meetings of the board are subject to section 471.705.

(d) Members of the board shall be compensated and reimbursed in the same manner as members of advisory councils under section 15.059, subdivision 3.

Subd. 4. [BYLAWS.] Bylaws of Market Champ, Inc. must provide for the qualification and removal of directors and for filling vacancies on the board in a manner not inconsistent with this section.

Subd. 5. [ARTICLES OF INCORPORATION.] The articles of incorporation of Market Champ, Inc. must be filed with the secretary of state under chapter 317A and must be consistent with this section.

Subd. 6. [AUDIT.] Market Champ, Inc. shall contract with the legislative auditor to perform audits and must report the results to the legislature.

Subd. 7. [REPORT.] The board of directors of Market Champ, Inc. shall submit an annual report on the activities of Market Champ, Inc. by January 15 of each year to the appropriations, finance, and agriculture committees of the legislature and to the governor. The report must include a description of the corporation's activities for the past year, a list of all contracts entered into by the corporation, and a financial report of revenues and expenditures of the corporation.

Subd. 8. [EXPIRATION.] The board of directors of Market Champ, Inc. expires on June 30, 2003.

Sec. 16. Minnesota Statutes 1996, section 18C.141, is amended to read:

18C.141 [SOIL AND MANURE TESTING LABORATORY CERTIFICATION.]

Subdivision 1. [PROGRAM ESTABLISHMENT.] The commissioner shall establish a program to certify the accuracy of analyses from soil and manure testing laboratories and promote standardization of soil and manure testing procedures and analytical results.

Subd. 2. [CHECK SAMPLE SYSTEM.] (a) The commissioner shall institute a system of check samples that requires a laboratory to be certified to analyze at least four two multiple soil or manure check samples during the calendar year. The samples must be supplied by the commissioner or by a person under contract with the commissioner to prepare and distribute the samples.

(b) Within 30 days after the laboratory receives check samples, the laboratory shall report to the commissioner the results of the analyses for all requested elements or compounds or for the elements or compounds the laboratory makes an analytical determination of as a service to others.

(c) The commissioner shall compile analytical data submitted by laboratories and provide laboratories submitting samples with a copy of the data without laboratory names or code numbers.

(d) The commissioner may conduct check samples on laboratories that are not certified.

Subd. 3. [ANALYSES REPORTING STANDARDS.] (a) The results obtained from soil, manure, or plant analysis must be reported in accordance with standard reporting units established by the commissioner by rule. The standard reporting units must conform as far as practical to uniform standards that are adopted on a regional or national basis.

(b) If a certified laboratory offers a recommendation, the University of Minnesota recommendation or that of another land grant college in a contiguous state must be offered in addition to other recommendations, and the source of the recommendation must be identified on the recommendation form. If relative levels such as low, medium, or high are presented to classify the analytical results, the corresponding relative levels based on the analysis as designated by the University of Minnesota or the land grant college in a contiguous state must also be presented.

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Subd. 4. [REVOCATION OF CERTIFICATION.] If the commissioner determines that analysis being performed by a laboratory is inaccurate as evidenced by check sample results, the commissioner may deny, suspend, or revoke certification.

Subd. 5. [CERTIFICATION FEES.] (a) A laboratory applying for certification shall pay an application fee of $100 and a certification fee of $100 before the certification is issued.

(b) Certification is valid for one year and the renewal fee is $100. The commissioner shall charge an additional application fee of $100 if a certified laboratory allows certification to lapse before applying for renewed certification.

(c) The commissioner shall notify a certified lab that its certification lapses within 30 to 60 days of the date when the certification lapses.

Subd. 6. [RULES.] The commissioner shall adopt rules for the establishment of minimum standards for laboratories, equipment, procedures, and personnel used in soil and manure analysis and rules necessary to administer and enforce this section. The commissioner shall consult with representatives of the fertilizer industry, representatives of the laboratories doing business in this state, and with the University of Minnesota college of agriculture before proposing rules.

Sec. 17. [18C.430] [COMMERCIAL ANIMAL WASTE TECHNICIAN.]

Subdivision 1. [REQUIREMENT.] (a) Except as provided in paragraph (c), after March 1, 2000, a person may not manage or apply animal wastes for hire without a valid commercial animal waste technician license. This section does not apply to a person managing or applying animal waste on land managed by the person's employer.

(b) A person managing or applying animal wastes for hire must have a valid license identification card when managing or applying animal wastes for hire and must display it upon demand by an authorized representative of the commissioner or a law enforcement officer. The commissioner shall prescribe the information required on the license identification card.

(c) A person who is not a licensed commercial animal waste technician who has had at least two hours of training or experience in animal waste management may manage or apply animal waste for hire under the supervision of a commercial animal waste technician.

Subd. 2. [RESPONSIBILITY.] A person required to be licensed under this section who performs animal waste management or application for hire or who employs a person to perform animal waste management or application for compensation is responsible for proper management or application of the animal wastes.

Subd. 3. [LICENSE.] A commercial animal waste technician license:

(1) is valid for three years and expires on December 31 of the third year for which it is issued, unless suspended or revoked before that date;

(2) is not transferable to another person; and

(3) must be prominently displayed to the public in the commercial animal waste technician's place of business.

Subd. 4. [APPLICATION.] (a) A person must apply to the commissioner for a commercial animal waste technician license on forms and in the manner required by the commissioner and must include the application fee. The commissioner shall prescribe and administer an examination or equivalent measure to determine if the applicant is eligible for the commercial animal waste technician license.

(b) The commissioner of agriculture, in cooperation with the Minnesota extension service and appropriate educational institutions, shall establish and implement a program for training and licensing commercial animal waste technicians.

Subd. 5. [RENEWAL APPLICATION.] A person must apply to the commissioner of agriculture to renew a commercial animal waste technician license and must include the application fee. The commissioner may renew a commercial animal waste technician license, subject to reexamination, attendance at workshops approved by the

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commissioner, or other requirements imposed by the commissioner to provide the animal waste technician with information regarding changing technology and to help ensure a continuing level of competence and ability to manage and apply animal wastes properly. The applicant may renew a commercial animal waste technician license within 12 months after expiration of the license without having to meet initial testing requirements. The commissioner may require additional demonstration of animal waste technician qualification if a person has had a license suspended or revoked or has had a history of violations of this section.

Subd. 6. [FINANCIAL RESPONSIBILITY.] (a) A commercial animal waste technician license may not be issued unless the applicant furnishes proof of financial responsibility. The financial responsibility may be demonstrated by (1) proof of net assets equal to or greater than $50,000, or (2) a performance bond or insurance of the kind and in an amount determined by the commissioner of agriculture.

(b) The bond or insurance must cover a period of time at least equal to the term of the applicant's license. The commissioner shall immediately suspend the license of a person who fails to maintain the required bond or insurance.

(c) An employee of a licensed person is not required to maintain an insurance policy or bond during the time the employer is maintaining the required insurance or bond.

(d) Applications for reinstatement of a license suspended under paragraph (b) must be accompanied by proof of satisfaction of judgments previously rendered.

Subd. 7. [APPLICATION FEE.] A person initially applying for or renewing a commercial animal waste technician license must pay a nonrefundable application fee of $50 and a fee of $10 for each additional identification card requested.

Sec. 18. Minnesota Statutes 1996, section 35.82, subdivision 2, is amended to read:

Subd. 2. [DISPOSITION OF CARCASSES.] (a) Except as provided in subdivision 1b and paragraph (d), every person owning or controlling any domestic animal that has died or been killed otherwise than by being slaughtered for human or animal consumption, shall as soon as reasonably possible bury the carcass at least three feet deep at a depth adequate to prevent scavenging by other animals in the ground or thoroughly burn it or dispose of it by another method approved by the board as being effective for the protection of public health and the control of livestock diseases. The board, through its executive secretary, may issue permits to owners of rendering plants located in Minnesota which are operated and conducted as required by law, to transport carcasses of domestic animals and fowl that have died, or have been killed otherwise than by being slaughtered for human or animal consumption, over the public highways to their plants for rendering purposes in accordance with the rules adopted by the board relative to transportation, rendering, and other provisions the board considers necessary to prevent the spread of disease. The board may issue permits to owners of rendering plants located in an adjacent state with which a reciprocal agreement is in effect under subdivision 3.

(b) Carcasses collected by rendering plants under permit may be used for pet food or mink food if the owner or operator meets the requirements of subdivision 1b.

(c) An authorized employee or agent of the board may enter private or public property and inspect the carcass of any domestic animal that has died or has been killed other than by being slaughtered for human or animal consumption. Failure to dispose of the carcass of any domestic animal within the period specified by this subdivision is a public nuisance. The board may petition the district court of the county in which a carcass is located for a writ requiring the abatement of the public nuisance. A civil action commenced under this paragraph does not preclude a criminal prosecution under this section. No person may sell, offer to sell, give away, or convey along a public road or on land the person does not own, the carcass of a domestic animal when the animal died or was killed other than by being slaughtered for human or animal consumption unless it is done with a special permit pursuant to this section. The carcass or parts of a domestic animal that has died or has been killed other than by being slaughtered for human or animal consumption may be transported along a public road for a medical or scientific purpose if the carcass is enclosed in a leakproof container to prevent spillage or the dripping of liquid waste. The board may adopt rules relative to the transportation of the carcass of any domestic animal for a medical or scientific purpose. A carcass on a public thoroughfare may be transported for burial or other disposition in accordance with this section.

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No person who owns or controls diseased animals shall negligently or willfully permit them to escape from that control or to run at large.

(d) A sheep producer may compost sheep carcasses owned by the producer on the producer's land without a permit and is exempt from compost facility specifications contained in rules of the board.

(e) The board shall develop best management practices for dead animal disposal and the pollution control agency feedlot program shall distribute them to livestock producers in the state.

Sec. 19. Minnesota Statutes 1996, section 41A.09, subdivision 1a, is amended to read:

Subd. 1a. [ETHANOL PRODUCTION GOAL.] It is a goal of the state that ethanol production plants in the state attain a total annual production level of 220,000,000 240,000,000 gallons.

Sec. 20. Minnesota Statutes 1997 Supplement, section 41A.09, subdivision 3a, is amended to read:

Subd. 3a. [PAYMENTS.] (a) The commissioner of agriculture shall make cash payments to producers of ethanol, anhydrous alcohol, and wet alcohol located in the state. These payments shall apply only to ethanol, anhydrous alcohol, and wet alcohol fermented in the state and produced at plants that have begun production by June 30, 2000. For the purpose of this subdivision, an entity that holds a controlling interest in more than one ethanol plant is considered a single producer. The amount of the payment for each producer's annual production is:

(1) except as provided in paragraph (b), for each gallon of ethanol or anhydrous alcohol produced on or before June 30, 2000, or ten years after the start of production, whichever is later, 20 cents per gallon; and

(2) for each gallon produced of wet alcohol on or before June 30, 2000, or ten years after the start of production, whichever is later, a payment in cents per gallon calculated by the formula "alcohol purity in percent divided by five," and rounded to the nearest cent per gallon, but not less than 11 cents per gallon.

The producer payments for anhydrous alcohol and wet alcohol under this section may be paid to either the original producer of anhydrous alcohol or wet alcohol or the secondary processor, at the option of the original producer, but not to both.

(b) If the level of production at an ethanol plant increases due to an increase in the production capacity of the plant and the increased production begins by June 30, 2000, the payment under paragraph (a), clause (1), applies to the additional increment of production until ten years after the increased production began. Once a plant's production capacity reaches 15,000,000 gallons per year, no additional increment will qualify for the payment.

(c) The commissioner shall make payments to producers of ethanol or wet alcohol in the amount of 1.5 cents for each kilowatt hour of electricity generated using closed-loop biomass in a cogeneration facility at an ethanol plant located in the state. Payments under this paragraph shall be made only for electricity generated at cogeneration facilities that begin operation by June 30, 2000. The payments apply to electricity generated on or before the date ten years after the producer first qualifies for payment under this paragraph. Total payments under this paragraph in any fiscal year may not exceed $750,000. For the purposes of this paragraph:

(1) "closed-loop biomass" means any organic material from a plant that is planted for the purpose of being used to generate electricity or for multiple purposes that include being used to generate electricity; and

(2) "cogeneration" means the combined generation of:

(i) electrical or mechanical power; and

(ii) steam or forms of useful energy, such as heat, that are used for industrial, commercial, heating, or cooling purposes.

(d) Except for new production capacity approved under paragraph (i), clause (1), the total payments under paragraphs (a) and (b) to all producers may not exceed $34,000,000 in a fiscal year. Total payments under paragraphs (a) and (b) to a producer in a fiscal year may not exceed $3,000,000.

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(e) By the last day of October, January, April, and July, each producer shall file a claim for payment for ethanol, anhydrous alcohol, and wet alcohol production during the preceding three calendar months. A producer with more than one plant shall file a separate claim for each plant. A producer shall file a separate claim for the original production capacity of each plant and for each additional increment of production that qualifies under paragraph (b). A producer that files a claim under this subdivision shall include a statement of the producer's total ethanol, anhydrous alcohol, and wet alcohol production in Minnesota during the quarter covered by the claim, including anhydrous alcohol and wet alcohol produced or received from an outside source. A producer shall file a separate claim for any amount claimed under paragraph (c). For each claim and statement of total ethanol, anhydrous alcohol, and wet alcohol production filed under this subdivision, the volume of ethanol, anhydrous alcohol, and wet alcohol production or amounts of electricity generated using closed-loop biomass must be examined by an independent certified public accountant in accordance with standards established by the American Institute of Certified Public Accountants.

(f) Payments shall be made November 15, February 15, May 15, and August 15. A separate payment shall be made for each claim filed. The total quarterly payment to a producer under this paragraph, excluding amounts paid under paragraph (c), may not exceed $750,000. Except for new production capacity approved under paragraph (i), clause (1), if the total amount for which all other producers are eligible in a quarter under paragraphs (a) and (b) exceeds $8,500,000, the commissioner shall make payments for production capacity that is subject to this restriction in the order in which the portion of production capacity covered by each claim went into production. If the total amount of ethanol or wet alcohol production reported for a quarter under paragraph (e) equals or exceeds 55,000,000 gallons:

(1) payments under this subdivision do not apply to the amount produced in excess of 55,000,000 gallons;

(2) the commissioner shall make payments to producers in the order in which the portion of production capacity covered by each claim began production; and

(3) only those producers that receive payments for the quarter, or received payments under paragraph (a) or (b) in an earlier quarter, will be eligible for future ethanol or wet alcohol production payments under this subdivision.

(g) If the total amount for which all producers are eligible in a quarter under paragraph (c) exceeds the amount available for payments, the commissioner shall make payments in the order in which the plants covered by the claims began generating electricity using closed-loop biomass.

(h) After July 1, 1997, new production capacity is only eligible for payment under this subdivision if the commissioner receives:

(1) an application for approval of the new production capacity;

(2) an appropriate letter of long-term financial commitment for construction of the new production capacity; and

(3) copies of all necessary permits for construction of the new production capacity.

The commissioner may approve the additional new production capacity based on the order in which the applications are received. The commissioner shall not approve production capacity in excess of the limitations in paragraph (f).

(i) After the effective date of this section, the commissioner may only approve: (1) up to 12,000,000 gallons of new production capacity at one plant that has not previously received approval or payment for any production capacity; or (2) new production capacity at existing plants are not eligible for new capacity beyond not to exceed planned expansions reported to the commissioner by February 1997. The commissioner may not approve any new production capacity after July 1, 1998.

(j) For the purposes of this subdivision "new production capacity" means annual ethanol production capacity that was not allowed under a permit issued by the pollution control agency prior to July 1, 1997, or for which construction did not begin prior to July 1, 1997.

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Sec. 21. Minnesota Statutes 1997 Supplement, section 84.8205, is amended to read:

84.8205 [SNOWMOBILE STATE TRAIL PERMIT STICKER.]

Subdivision 1. [STICKER REQUIRED; FEE.] A person may not operate a snowmobile that is not registered in this state may not be operated on a state or grant-in-aid snowmobile trail unless a snowmobile state trail sticker is affixed to the snowmobile operator has in possession a snowmobile state trail permit. The commissioner of natural resources shall issue a permit sticker upon application and payment of a $15 fee. The permit sticker is valid from November 1 through April 30. Fees collected under this section shall be deposited in the state treasury and credited to the snowmobile trails and enforcement account in the natural resources fund.

Subd. 2. [PLACEMENT OF STICKER.] The state trail sticker shall be permanently affixed to the forward half of the snowmobile directly above or below the headlight of the snowmobile.

Subd. 3. [LICENSE AGENTS.] County auditors are appointed agents of the commissioner for the sale of snowmobile state trail stickers. The commissioner may appoint other state agencies as agents for the sale of the stickers. A county auditor may appoint subagents within the county or within adjacent counties to sell stickers. Upon appointment of a subagent, the auditor shall notify the commissioner of the name and address of the subagent. The auditor may revoke the appointment of a subagent, and the commissioner may revoke the appointment of a state agency at any time. The commissioner may require an auditor to revoke a subagent's appointment. The auditor shall furnish stickers on consignment to any subagent who furnishes a surety bond in favor of the county in an amount at least equal to the value of the stickers to be consigned to that subagent. A surety bond is not required for a state agency appointed by the commissioner. The county auditor shall be responsible for all stickers issued to and user fees received by agents except in a county where the county auditor does not retain fees paid for license purposes. In these counties, the responsibilities imposed by this section upon the county auditor are imposed upon the county. The commissioner may promulgate additional rules governing the accounting and procedures for handling state trail stickers as provided in section 97A.485, subdivision 11.

Any resident desiring to sell snowmobile state trail stickers may either purchase for cash or obtain on consignment stickers from a county auditor in groups of not less than ten individual stickers. In selling stickers, the resident shall be deemed a subagent of the county auditor and the commissioner, and shall observe all rules promulgated by the commissioner for accounting and handling of licenses and stickers pursuant to section 97A.485, subdivision 11.

The county auditor shall promptly deposit all money received from the sale of the stickers with the county treasurer and shall promptly transmit any reports required by the commissioner, plus 96 percent of the price paid by each stickerholder, exclusive of the issuing fee, for each sticker sold or consigned by the auditor and subsequently sold to a stickerholder during the accounting period. The county auditor shall retain as a commission four percent of all sticker fees, excluding the issuing fee for stickers consigned to subagents and the issuing fee on stickers sold by the auditor to stickerholders.

Unsold stickers in the hands of any subagent shall be redeemed by the commissioner if presented for redemption within the time prescribed by the commissioner. Any stickers not presented for redemption within the period prescribed shall be conclusively presumed to have been sold, and the subagent possessing the same or to whom they are charged shall be accountable.

Subd. 4. [DISTRIBUTION OF STICKERS.] The commissioner shall provide stickers to all agents authorized to issue stickers by the commissioner.

Subd. 5. [AGENT'S FEE.] The fee for a sticker shall be increased by the amount of an issuing fee of $1 per sticker. The issuing fee may be retained by the seller of the sticker.

Sec. 22. Minnesota Statutes 1997 Supplement, section 84.86, subdivision 1, is amended to read:

Subdivision 1. With a view of achieving maximum use of snowmobiles consistent with protection of the environment the commissioner of natural resources shall adopt rules in the manner provided by chapter 14, for the following purposes:

(1) Registration of snowmobiles and display of registration numbers.

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(2) Use of snowmobiles insofar as game and fish resources are affected.

(3) Use of snowmobiles on public lands and waters, or on grant-in-aid trails, including, but not limited to, the use of specified metal traction devices and nonmetal traction devices.

(4) Uniform signs to be used by the state, counties, and cities, which are necessary or desirable to control, direct, or regulate the operation and use of snowmobiles.

(5) Specifications relating to snowmobile mufflers.

(6) A comprehensive snowmobile information and safety education and training program, including but not limited to the preparation and dissemination of snowmobile information and safety advice to the public, the training of snowmobile operators, and the issuance of snowmobile safety certificates to snowmobile operators who successfully complete the snowmobile safety education and training course. For the purpose of administering such program and to defray a portion of the expenses of training and certifying snowmobile operators, the commissioner shall collect a fee of not to exceed $5 from each person who receives the youth and young adult training and a fee established under chapter 16A from each person who receives the adult training. The commissioner shall deposit the fee in the snowmobile trails and enforcement account and the amount thereof is appropriated annually to the commissioner of natural resources for the administration of such programs. The commissioner shall cooperate with private organizations and associations, private and public corporations, and local governmental units in furtherance of the program established under this clause. The commissioner shall consult with the commissioner of public safety in regard to training program subject matter and performance testing that leads to the certification of snowmobile operators.

(7) The operator of any snowmobile involved in an accident resulting in injury requiring medical attention or hospitalization to or death of any person or total damage to an extent of $500 or more, shall forward a written report of the accident to the commissioner on such form as the commissioner shall prescribe. If the operator is killed or is unable to file a report due to incapacitation, any peace officer investigating the accident shall file the accident report within ten business days.

Sec. 23. Minnesota Statutes 1996, section 84.871, is amended to read:

84.871 [MUFFLERS EQUIPMENT REQUIREMENTS.]

Subdivision 1. [MUFFLERS.] Except as provided in this section, every snowmobile shall be equipped at all times with a muffler in good working order which blends the exhaust noise into the overall snowmobile noise and is in constant operation to prevent excessive or unusual noise. The exhaust system shall not emit or produce a sharp popping or crackling sound. This section does not apply to organized races or similar competitive events held on (1) private lands, with the permission of the owner, lessee, or custodian of the land; (2) public lands and water under the jurisdiction of the commissioner of natural resources, with the commissioner's permission; or (3) other public lands, with the consent of the public agency owning the land. No person shall have for sale, sell, or offer for sale on any new snowmobile any muffler that fails to comply with the specifications required by the rules of the commissioner after the effective date of the rules.

Subd. 2. [METAL TRACTION DEVICES ON SNOWMOBILE TRACKS.] Except as provided in this subdivision, a person may not operate a snowmobile with a track equipped with metal traction devices on public lands, roads, or trails, or public road or trail rights-of-way. Pursuant to section 84.86, the commissioner may adopt rules that: (1) limit the use of nonmetal traction devices; and (2) permit metal traction devices that meet certain specifications.

Sec. 24. [84.8715] [METAL TRACTION DEVICE STICKER.]

Subdivision 1. [STICKER REQUIRED; FEE.] A person may not operate a snowmobile with a track equipped with metal traction devices unless a metal traction device sticker is affixed to the snowmobile. The commissioner shall issue a metal traction device sticker upon application and payment of a $50 fee. The sticker is valid for one year following June 30 in the year it is issued. Fees collected under this section shall be deposited in the state treasury and credited to the snowmobile trails and enforcement account in the natural resources fund. Money deposited under this section must be used for repair of paved public trails except that any money not necessary for this purpose may be used for the grant-in-aid snowmobile trail system.

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Subd. 2. [PLACEMENT OF STICKER.] The metal traction device sticker must be permanently affixed to the forward half of the snowmobile directly above or below the headlight of the snowmobile.

Subd. 3. [LICENSE AGENTS.] The commissioner shall sell metal traction device stickers through the process established under section 84.8205.

Subd. 4. [REPEALER.] This section is repealed on July 1, 1999.

Sec. 25. Minnesota Statutes 1997 Supplement, section 85.015, subdivision 1c, is amended to read:

Subd. 1c. [METAL TRACTION DEVICES; PROHIBITION ON PAVED TRAILS.] A person may not use a snowmobile with metal traction devices on any paved state public trail, except as otherwise provided by a local government with jurisdiction over a trail.

Sec. 26. [85.0156] [MISSISSIPPI WHITEWATER TRAIL.]

Subdivision 1. [CREATION.] An urban whitewater trail is created along the Mississippi river in the lower St. Anthony falls area below the stone arch bridge in Minneapolis. The trail must be primarily developed for whitewater rafters, canoers, and kayakers.

Subd. 2. [COMMISSIONER'S DUTIES.] (a) The commissioner of natural resources must coordinate the creation of the whitewater trail by placing designation signs near and along the river and must publicize the designation.

(b) In designating the Mississippi whitewater trail, the commissioner must work with other federal, state, and local agencies and private businesses and organizations interested in the trail.

Subd. 3. [GIFTS; DONATIONS.] The commissioner of natural resources is authorized to accept, on behalf of a nonprofit corporation, donations of land or easements in land for the whitewater trail and may seek and accept money for the trail from other public and private sources.

Sec. 27. Minnesota Statutes 1996, section 86B.101, subdivision 2, is amended to read:

Subd. 2. [YOUTH WATERCRAFT SAFETY COURSE.] (a) The commissioner shall establish an educational course and a testing program for personal watercraft and watercraft operators and for persons age 12 or older but younger than age 18 required to take the watercraft safety course. The commissioner shall prescribe a written test as part of the course. A personal watercraft educational course and testing program that emphasizes safe and legal operation must be required for persons age 13 or older but younger than age 18 operating personal watercraft.

(b) The commissioner shall issue a watercraft operator's permit to a person age 12 or older but younger than age 18 who successfully completes the educational program and the written test.

Sec. 28. Minnesota Statutes 1996, section 86B.415, subdivision 1, is amended to read:

Subdivision 1. [WATERCRAFT 19 FEET OR LESS.] The fee for a watercraft license for watercraft 19 feet or less in length is $12 except:

(1) for watercraft, other than personal watercraft, 19 feet in length or less that is offered for rent or lease, the fee is $6;

(2) for a canoe, kayak, sailboat, sailboard, paddle boat, or rowing shell 19 feet in length or less, the fee is $7;

(3) for a watercraft 19 feet in length or less used by a nonprofit corporation for teaching boat and water safety, the fee is as provided in subdivision 4; and

(4) for a watercraft owned by a dealer under a dealer's license, the fee is as provided in subdivision 5.

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Sec. 29. Minnesota Statutes 1996, section 86B.415, is amended by adding a subdivision to read:

Subd. 7a. [PERSONAL WATERCRAFT SURCHARGE.] A $50 surcharge is placed on each personal watercraft licensed under subdivisions 1 to 5 for enforcement of personal watercraft laws and for personal watercraft safety education. The surcharge must be deposited in the state treasury and credited to the water recreation account in the natural resources fund. Any grants to counties from revenue collected under this subdivision must be proportional to the use of personal watercraft in each county. Grants made under this subdivision are subject to the applicable administrative, reporting, and auditing requirements in sections 86B.701 and 86B.705.

Sec. 30. Minnesota Statutes 1996, section 89A.03, subdivision 1, is amended to read:

Subdivision 1. [MEMBERSHIP.] The Minnesota forest resources council has 13 members appointed by the governor and one member appointed by the Indian affairs council. The council membership appointed by the governor must include one representative from each of the following individuals:

(1) a representative from an organization representing environmental interests within the state;

(2) a representative from an organization representing the interests of management of game species;

(3) a representative from a conservation organization;

(4) a representative from an association representing forest products industry within the state;

(5) a commercial logging contractor active in a forest product association;

(6) a representative from a statewide association representing the resort and tourism industry;

(7) a faculty or researcher of a Minnesota research or higher educational institution;

(8) an owner of nonindustrial, private forest land of 40 acres or more;

(9) an agricultural woodlot owner;

(10) a representative from the department;

(11) a county land commissioner who is a member of the Minnesota association of county land commissioners;

(12) a representative from the United States Forest Service unit with land management responsibility in Minnesota; and

(13) a representative from a labor organization with membership having an interest in forest resource issues.

Sec. 31. Minnesota Statutes 1996, section 90.193, is amended to read:

90.193 [EXTENSION OF TIMBER PERMITS.]

The commissioner may, in the case of an exceptional circumstance beyond the control of the timber permit holder which makes it unreasonable, impractical, and not feasible to complete cutting and removal under the permit within the time allowed, grant an extension of one year. A request for the extension must be received by the commissioner before the permit expires. The request must state the reason the extension is necessary and be signed by the permit holder. The value of the timber remaining to be cut will be recalculated using current stumpage rates. Any timber cut during the period of extension or remaining uncut at the expiration of the extension shall be billed for at the stumpage rates determined at the time of extension provided that in no event shall stumpage rates be less than those in effect at the time of the original sale. An interest rate of eight percent will may be charged for the period of extension.

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Sec. 32. Minnesota Statutes 1996, section 93.002, subdivision 1, is amended to read:

Subdivision 1. [ESTABLISHMENT.] The mineral coordinating committee is established to plan for diversified mineral development. The mineral coordinating committee consists of the director of the minerals division of the department of natural resources, the deputy commissioner of the Minnesota pollution control agency, the director of United Steelworkers of America, district 11, or the director's designee, the commissioner of the iron range resources and rehabilitation board, the director of the Minnesota geological survey, the dean of the University of Minnesota institute of technology, and the director of the natural resources research institute, and three individuals appointed by the governor for a four-year term, one each representing the iron ore and taconite, the nonferrous metallic minerals, and the industrial minerals industries within the state. The director of the minerals division of the department of natural resources shall serve as chair. A member of the committee may designate another person of the member's organization to act in the member's place. The commissioner of natural resources shall provide staff and administrative services necessary for the committee's activities.

The mineral coordinating committee is encouraged to solicit and receive advice from representatives of the United States Bureau of Mines, the United States Geological Survey, and the United States Environmental Protection Agency.

Sec. 33. Minnesota Statutes 1996, section 97A.037, subdivision 1, is amended to read:

Subdivision 1. [INTERFERENCE WITH TAKING WILD ANIMALS PROHIBITED.] A person who has the intent to prevent, or disrupt, or dissuade the taking of another person from taking or preparing to take a wild animal or enjoyment of the out-of-doors may must not disturb or interfere with another that person who if that person is lawfully taking a wild animal or preparing to take a wild animal. "Preparing to take a wild animal" includes travel, camping, and other acts that occur on land or water where the affected person has the right or privilege to take lawfully a wild animal.

Sec. 34. Minnesota Statutes 1996, section 97A.245, is amended to read:

97A.245 [REWARDS.]

The commissioner may pay rewards for information leading to the conviction of a person that has violated a provision of laws relating to wild animals or threatened or endangered species of wildlife. A reward may not exceed $500, except a reward for information relating to big game or threatened or endangered species of wildlife, may be up to $1,000 and a reward for information relating to timber wolves may be up to $2,500. The rewards may only be paid from funds donated to the commissioner for these purposes and may not be paid to salaried conservation officers or peace officers.

Sec. 35. Minnesota Statutes 1996, section 103C.315, subdivision 4, is amended to read:

Subd. 4. [COMPENSATION.] A supervisor shall receive compensation for services as the state board may determine, and may be reimbursed for expenses, including traveling expenses, necessarily incurred in the discharge of duties. A supervisor shall may be reimbursed for the use of the supervisor's own automobile in the performance of official duties at the a rate per mile prescribed for state officers and employees up to the maximum tax-deductible mileage rate permitted under the federal Internal Revenue Code.

Sec. 36. Minnesota Statutes 1996, section 103F.155, subdivision 2, is amended to read:

Subd. 2. [COMMISSIONER'S REVIEW.] (a) The commissioner shall review the plan and consult with the state office of civil defense and other appropriate state and federal agencies. Following the review, the commissioner shall accept, require modification, or reject the plan.

(b) If required modifications are not made, or if the plan is rejected, the commissioner shall order the removal of the emergency protection measures and shall not provide grant money under section 103F.161 until the plan is approved or the required modifications are made.

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Sec. 37. Minnesota Statutes 1996, section 103F.161, subdivision 2, is amended to read:

Subd. 2. [ACTION ON GRANT APPLICATIONS.] (a) A local government may apply to the commissioner for a grant on forms provided by the commissioner. The commissioner shall confer with the local government requesting the grant and may make a grant up to $75,000 $150,000 based on the following considerations:

(1) the extent and effectiveness of mitigation measures already implemented by the local government requesting the grant;

(2) the feasibility, practicality, and effectiveness of the proposed mitigation measures and the associated nonflood related benefits and detriments;

(3) the level of grant assistance that should be provided to the local government, based on available facts regarding the nature, extent, and severity of flood problems;

(4) the frequency of occurrence of severe flooding that has resulted in declaration of the area as a flood disaster area by the President of the United States;

(5) the economic, social, and environmental benefits and detriments of the proposed mitigation measures;

(6) whether the floodplain management ordinance or regulation adopted by the local government meets the minimum standards established by the commissioner, the degree of enforcement of the ordinance or regulation, and whether the local government is complying with the ordinance or regulation;

(7) the degree to which the grant request is consistent with local water plans developed under chapters 103B and 103D;

(8) the financial capability of the local government to solve its flood hazard problems without financial assistance; and

(9) the estimated cost and method of financing of the proposed mitigation measures based on local money and federal and state financial assistance.

(b) If the amount of the grant requested is $75,000 $150,000 or more, the commissioner shall determine, under the considerations in paragraph (a), whether any part of the grant should be awarded. The commissioner must submit an appropriation request to the governor and the legislature for funding consideration before each odd-numbered year, consisting of requests or parts of grant requests of $75,000 $150,000 or more. The commissioner must prioritize the grant requests, under the considerations in paragraph (a), beginning with the projects the commissioner determines most deserving of financing.

(c) A grant may not exceed one-half the total cost of the proposed mitigation measures.

(d) After July 1, 1991, grants made under this section may be made to local governments whose grant requests are part of, or responsive to, a comprehensive local water plan prepared under chapter 103B or 103D.

Sec. 38. Minnesota Statutes 1996, section 103G.271, subdivision 6, is amended to read:

Subd. 6. [WATER USE PERMIT PROCESSING FEE.] (a) Except as described in paragraphs (b) to (f), a water use permit processing fee must be prescribed by the commissioner in accordance with the following schedule of fees for each water use permit in force at any time during the year:

(1) 0.05 cents per 1,000 gallons for the first 50,000,000 gallons per year;

(2) 0.10 cents per 1,000 gallons for amounts greater than 50,000,000 gallons but less than 100,000,000 gallons per year;

(3) 0.15 cents per 1,000 gallons for amounts greater than 100,000,000 gallons but less than 150,000,000 gallons per year; and

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(4) 0.20 cents per 1,000 gallons for amounts greater than 150,000,000 gallons but less than 200,000,000 gallons per year;

(5) 0.25 cents per 1,000 gallons for amounts greater than 200,000,000 gallons but less than 250,000,000 gallons per year;

(6) 0.30 cents per 1,000 gallons for amounts greater than 250,000,000 gallons but less than 300,000,000 gallons per year;

(7) 0.35 cents per 1,000 gallons for amounts greater than 300,000,000 gallons but less than 350,000,000 gallons per year;

(8) 0.40 cents per 1,000 gallons for amounts greater than 350,000,000 gallons but less than 400,000,000 gallons per year; and

(9) 0.45 cents per 1,000 gallons for amounts greater than 400,000,000 gallons per year.

(b) For once-through cooling systems, a water use processing fee must be prescribed by the commissioner in accordance with the following schedule of fees for each water use permit in force at any time during the year:

(1) for nonprofit corporations and school districts:

(i) 5.0 cents per 1,000 gallons until December 31, 1991;

(ii) 10.0 cents per 1,000 gallons from January 1, 1992, until December 31, 1996; and

(iii), 15.0 cents per 1,000 gallons after January 1, 1997; and

(2) for all other users, 20 cents per 1,000 gallons.

(c) The fee is payable based on the amount of water appropriated during the year and, except as provided in paragraph (f), the minimum fee is $50.

(d) For water use processing fees other than once-through cooling systems:

(1) the fee for a city of the first class may not exceed $175,000 per year;

(2) the fee for other entities for any permitted use may not exceed:

(i) $35,000 per year for an entity holding three or fewer permits;

(ii) $50,000 per year for an entity holding four or five permits;

(iii) $175,000 per year for an entity holding more than five permits;

(3) the fee for agricultural irrigation may not exceed $750 per year; and

(4) the fee for a municipality that furnishes electric service and cogenerates steam for home heating may not exceed $10,000 for its permit for water use related to the cogeneration of electricity and steam; and

(5) no fee is required for a project involving the appropriation of surface water to prevent flood damage or to remove flood waters during a period of flooding, as determined by the commissioner.

(e) Failure to pay the fee is sufficient cause for revoking a permit. A penalty of two percent per month calculated from the original due date must be imposed on the unpaid balance of fees remaining 30 days after the sending of a second notice of fees due. A fee may not be imposed on an agency, as defined in section 16B.01, subdivision 2, or federal governmental agency holding a water appropriation permit.

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(f) The minimum water use processing fee for a permit issued for irrigation of agricultural land is $10 for years in which:

(1) there is no appropriation of water under the permit; or

(2) the permit is suspended for more than seven consecutive days between May 1 and October 1.

(g) For once-through systems fees payable after July 1, 1993, 75 percent of the fees must be credited to a special account and are appropriated to the Minnesota public facilities authority for loans under section 446A.21.

Sec. 39. Minnesota Statutes 1996, section 115.076, subdivision 1, is amended to read:

Subdivision 1. [AUTHORITY OF COMMISSIONER.] (a) The agency may refuse to issue or to authorize the transfer of:

(1) a hazardous waste facility permit or a solid waste facility permit to construct or operate a commercial waste facility as defined in section 115A.03, subdivision 6, if the agency determines that the permit applicant does not possess sufficient expertise and competence to operate the facility in conformance with the requirements of this chapter and chapters 114C and 116, or if other circumstances exist that demonstrate that the permit applicant may not operate the facility in conformance with the requirements of this chapter and chapters 114C and 116; or

(2) an animal feedlot facility permit, under section 116.07, subdivision 7, to construct or operate an animal feedlot facility, if the agency determines that the permit applicant does not possess sufficient expertise and competence to operate the feedlot facility in conformance with the requirements of this chapter and chapter 116 or if other circumstances exist that demonstrate that the permit applicant may not operate the feedlot facility in conformance with the requirements of this chapter and chapter 116.

(b) In making this a determination under paragraph (a), the agency may consider:

(1) the experience of the permit applicant in constructing or operating commercial waste facilities or animal feedlot facilities;

(2) the expertise of the permit applicant;

(3) the past record of the permit applicant in operating commercial waste facilities or animal feedlot facilities in Minnesota and other states;

(4) any criminal convictions of the permit applicant in state or federal court during the past five years that bear on the likelihood that the permit applicant will operate the facility in conformance with the applicable requirements of this chapter and chapters 114C and 116; and

(5) in the case of a corporation or business entity, any criminal convictions in state or federal court during the past five years of any of the permit applicant's officers, partners, or facility managers that bear on the likelihood that the facility will be operated in conformance with the applicable requirements of this chapter and chapters 114C and 116.

Sec. 40. Minnesota Statutes 1997 Supplement, section 115.55, subdivision 5a, is amended to read:

Subd. 5a. [INSPECTION CRITERIA FOR EXISTING SYSTEMS.] (a) An inspection of an existing system must evaluate the criteria in paragraphs (b) to (h).

(b) If the inspector finds one or more of the following conditions:

(1) sewage discharge to surface water;

(2) sewage discharge to ground surface;

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(3) sewage backup; or

(4) a cesspool; or

(5) any other situation with the potential to immediately and adversely affect or threaten public health or safety,

then the system constitutes an imminent threat to public health or safety and, if not repaired, must be upgraded, replaced, or its use discontinued within ten months of receipt of the notice described in subdivision 5b, or within a shorter period of time if required by local ordinance.

(c) An existing system that has none of the conditions in paragraph (b), and has at least two feet of soil separation need not be upgraded, repaired, replaced, or its use discontinued, notwithstanding any local ordinance that is more restrictive.

(d) Paragraph (c) does not apply to systems in shoreland areas regulated under sections 103F.201 to 103F.221, wellhead protection areas as defined in section 103I.005, or those used in connection with food, beverage, and lodging establishments regulated under chapter 157.

(e) If the local unit of government with jurisdiction over the system has adopted an ordinance containing local standards pursuant to subdivision 7, the existing system must comply with the ordinance. If the system does not comply with the ordinance, it must be upgraded, replaced, or its use discontinued according to the ordinance.

(f) If a seepage pit, drywell, cesspool, or leaching pit exists and the local unit of government with jurisdiction over the system has not adopted local standards to the contrary, the system is failing and must be upgraded, replaced, or its use discontinued within the time required by subdivision 3 or local ordinance.

(g) If the system fails to provide sufficient groundwater protection, then the local unit of government or its agent shall order that the system be upgraded, replaced, or its use discontinued within the time required by rule or the local ordinance.

(h) The authority to find a threat to public health under section 145A.04, subdivision 8, is in addition to the authority to make a finding under paragraphs (b) to (d).

Sec. 41. Minnesota Statutes 1997 Supplement, section 116.07, subdivision 7, is amended to read:

Subd. 7. [COUNTIES; PROCESSING OF APPLICATIONS FOR ANIMAL LOT PERMITS.] Any Minnesota county board may, by resolution, with approval of the pollution control agency, assume responsibility for processing applications for permits required by the pollution control agency under this section for livestock feedlots, poultry lots or other animal lots. The responsibility for permit application processing, if assumed by a county, may be delegated by the county board to any appropriate county officer or employee.

(a) For the purposes of this subdivision, the term "processing" includes:

(1) the distribution to applicants of forms provided by the pollution control agency;

(2) the receipt and examination of completed application forms, and the certification, in writing, to the pollution control agency either that the animal lot facility for which a permit is sought by an applicant will comply with applicable rules and standards, or, if the facility will not comply, the respects in which a variance would be required for the issuance of a permit; and

(3) rendering to applicants, upon request, assistance necessary for the proper completion of an application.

(b) For the purposes of this subdivision, the term "processing" may include, at the option of the county board, issuing, denying, modifying, imposing conditions upon, or revoking permits pursuant to the provisions of this section or rules promulgated pursuant to it, subject to review, suspension, and reversal by the pollution control agency. The pollution control agency shall, after written notification, have 15 days to review, suspend, modify, or reverse the issuance of the permit. After this period, the action of the county board is final, subject to appeal as provided in chapter 14.

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(c) For the purpose of administration of rules adopted under this subdivision, the commissioner and the agency may provide exceptions for cases where the owner of a feedlot has specific written plans to close the feedlot within five years. These exceptions include waiving requirements for major capital improvements.

(d) For purposes of this subdivision, a discharge caused by an extraordinary natural event such as a precipitation event of greater magnitude than the 25-year, 24-hour event, tornado, or flood in excess of the 100-year flood is not a "direct discharge of pollutants."

(e) In adopting and enforcing rules under this subdivision, the commissioner shall cooperate closely with other governmental agencies.

(f) The pollution control agency shall work with the Minnesota extension service, the department of agriculture, the board of water and soil resources, producer groups, local units of government, as well as with appropriate federal agencies such as the Soil Natural Resources Conservation Service and the Agricultural Stabilization and Conservation Service Farm Service Agency, to notify and educate producers of rules under this subdivision at the time the rules are being developed and adopted and at least every two years thereafter.

(g) The pollution control agency shall adopt rules governing the issuance and denial of permits for livestock feedlots, poultry lots or other animal lots pursuant to this section. A feedlot permit is not required for livestock feedlots with more than ten but less than 50 animal units; provided they are not in shoreland areas. These rules apply both to permits issued by counties and to permits issued by the pollution control agency directly.

(h) The pollution control agency shall exercise supervising authority with respect to the processing of animal lot permit applications by a county.

(i) After May 17, 1997, any new rules or amendments to existing rules proposed under the authority granted in this subdivision, must be submitted to the members of legislative policy committees with jurisdiction over agriculture and the environment prior to final adoption. The rules must not become effective until 90 days after the proposed rules are submitted to the members.

(j) Until new rules are adopted that provide for plans for manure storage structures, any plans for a liquid manure storage structure must be prepared or approved by a registered professional engineer or a United States Department of Agriculture, Natural Resources Conservation Service employee.

(k) A county may adopt by ordinance standards for animal feedlots that are more stringent than standards in pollution control agency rules.

(l) After January 1, 2001, a county that has not accepted delegation of the feedlot permit program must hold a public meeting prior to the agency issuing a feedlot permit for a feedlot facility with 300 or more animal units, unless another public meeting has been held with regard to the feedlot facility to be permitted.

Sec. 42. Minnesota Statutes 1996, section 116.07, is amended by adding a subdivision to read:

Subd. 7b. [FEEDLOT INVENTORY NOTIFICATION AND PUBLIC MEETING REQUIREMENTS.] (a) Any state agency or local government unit conducting an inventory or survey of livestock feedlots under its jurisdiction must publicize notice of the inventory in a newspaper of general circulation in the affected area and in other media as appropriate. The notice must state the dates the inventory will be conducted, the information that will be requested in the inventory, and how the information collected will be provided to the public. The notice must also specify the date for a public meeting to provide information regarding the inventory.

(b) A local government unit conducting an inventory or survey of livestock feedlots under its jurisdiction must hold at least one public meeting within the boundaries of the jurisdiction of the local unit of government, prior to beginning the inventory. A state agency conducting a survey of livestock feedlots must hold at least four public meetings outside of the seven-county Twin Cities metropolitan area, prior to beginning the inventory. The public meeting must provide information concerning the dates the inventory will be conducted, the procedure the agency or local unit of government will use to request the information to be included in the inventory, and how the information collected will be provided to the public.

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Sec. 43. Minnesota Statutes 1996, section 116.07, is amended by adding a subdivision to read:

Subd. 7c. [NPDES PERMITTING REQUIREMENTS.] (a) The agency must issue National Pollutant Discharge Elimination System permits for feedlots with 1,000 animal units or more based on the following schedule:

(1) for applications received after the effective date of this section, a permit for a newly constructed or expanded animal feedlot with 2,000 or more animal units must be issued as an individual permit;

(2) for applications received after January 1, 1999, a permit for a newly constructed or expanded animal feedlot with between 1,000 and 2,000 animal units that is identified as a priority by the commissioner, using criteria established under paragraph (e), must be issued as an individual permit; and

(3) after January 1, 2001, all existing feedlots with 1,000 or more animal units must be issued an individual or general National Pollutant Discharge Elimination System permit.

(b) By October 1, 1999, the agency must issue a general National Pollutant Discharge Elimination System permit for animal feedlots with between 1,000 and 2,000 animal units that are not identified under paragraph (a), clause (2).

(c) Prior to the issuance of a general National Pollutant Discharge Elimination System permit for a category of animal feedlot facility permittees, the agency must hold at least one public hearing on the permit issuance.

(d) To the extent practicable, the agency must include a public notice and comment period for an individual National Pollutant Discharge Elimination System permit concurrent with any public notice and comment for:

(1) the purpose of environmental review of the same facility under chapter 116D; or

(2) the purpose of obtaining a conditional use permit from a local unit of government where the local government unit is the responsible governmental unit for purposes of environmental review under chapter 116D.

(e) By January 1, 1999, the commissioner, in consultation with the feedlot and manure management advisory committee, created under section 17.136, and other interested parties must develop criteria for determining whether an individual National Pollutant Discharge Elimination System permit is required under paragraph (a), clause (2), for an animal feedlot with between 1,000 and 2,000 animal units. The criteria must be based on proximity to waters of the state, facility design, and other site-specific environmental factors.

(f) By January 1, 2000, the commissioner, in consultation with the feedlot and manure management advisory committee, created under section 17.136, and other interested parties must develop criteria for determining whether an individual National Pollutant Discharge Elimination System permit is required for an existing animal feedlot, under paragraph (a), clause (3). The criteria must be based on violations and other compliance problems at the facility.

Sec. 44. Minnesota Statutes 1997 Supplement, section 116.18, subdivision 3c, is amended to read:

Subd. 3c. [INDIVIDUAL ON-SITE TREATMENT SYSTEMS AND ALTERNATIVE DISCHARGING SEWAGE SYSTEMS PROGRAM.] (a) Beginning in fiscal year 1989, up to ten percent of the money to be awarded as grants under subdivision 3a in any single fiscal year, up to a maximum of $1,000,000, may be set aside for the award of grants by the agency to municipalities to reimburse owners of individual on-site wastewater treatment systems or alternative discharging sewage systems for a part of the costs of upgrading or replacing the systems.

(b) An individual on-site treatment system is a wastewater treatment system, or part thereof, that uses soil treatment and disposal technology to treat 5,000 gallons or less of wastewater per day from dwellings or other establishments.

(c) An alternative discharging sewage system is a system permitted under section 115.58 that:

(1) serves one or more dwellings and other establishments;

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(2) discharges less than 10,000 gallons of water per day; and

(3) uses any treatment and disposal methods other than subsurface soil treatment and disposal.

(d) Municipalities may apply yearly for grants of up to 50 percent of the cost of replacing or upgrading individual on-site treatment systems, including conversion to an alternative discharging sewage system, within their jurisdiction, up to a limit of $5,000 per system or per connection to a cluster system. Before agency approval of the grant application, a municipality must certify that:

(1) it has adopted and is enforcing the requirements of Minnesota Rules governing individual sewage treatment systems;

(2) the existing systems for which application is made do not conform to those rules, are at least 20 years old, do not serve seasonal residences, and were not constructed with state or federal funds; and

(3) the costs requested do not include administrative costs, costs for improvements or replacements made before the application is submitted to the agency unless it pertains to the plan finally adopted, and planning and engineering costs other than those for the individual site evaluations and system design.

(d) (e) The federal and state regulations regarding the award of state and federal wastewater treatment grants do not apply to municipalities or systems funded under this subdivision, except as provided in this subdivision.

(e) (f) The agency shall adopt permanent rules regarding priorities, distribution of funds, payments, inspections, procedures for administration of the agency's duties, and other matters that the agency finds necessary for proper administration of grants awarded under this subdivision.

Sec. 45. Minnesota Statutes 1997 Supplement, section 169.1217, subdivision 1, is amended to read:

Subdivision 1. [DEFINITIONS.] As used in this section, the following terms have the meanings given them:

(a) "Appropriate agency" means a law enforcement agency that has the authority to make an arrest for a violation of a designated offense or to require a test under section 169.123.

(b) "Designated license revocation" includes a license revocation under section 169.123:

(1) within five years of two prior impaired driving convictions, two prior license revocations, or a prior impaired driving conviction and a prior license revocation, based on separate incidents; or

(2) within 15 years of the first of three or more prior impaired driving convictions, three or more prior license revocations, or any combination of three or more prior impaired driving convictions and prior license revocations, based on separate incidents.

(c) "Designated offense" includes:

(1) a violation of section 169.121, subdivision 1, clause (a), (b), (c), (d), (e), (g), or (h), subdivision 1a, an ordinance in conformity with any of them, or section 169.129:

(i) within five years of two prior impaired driving convictions, or two prior license revocations, or a prior impaired driving conviction and a prior license revocation, based on separate incidents; or

(ii) within 15 years of the first of three or more prior impaired driving convictions, three or more prior license revocations, or any combination of three or more impaired driving convictions and prior license revocations, based on separate incidents;

(2) a violation of section 169.121, subdivision 1, clause (f), or a violation of section 169.121, subdivision 3, paragraph (c), clause (4):

(i) within five years of a prior impaired driving conviction or a prior license revocation; or

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(ii) within 15 years of the first of two or more prior impaired driving convictions, two or more prior license revocations, or a prior impaired driving conviction and a prior license revocation, based on separate incidents; or

(3) a violation of section 169.121, an ordinance in conformity with it, or section 169.129:

(i) by a person whose driver's license or driving privileges have been canceled under section 171.04, subdivision 1, clause (9); or

(ii) by a person who is subject to a restriction on the person's driver's license under section 171.09 which provides that the person may not use or consume any amount of alcohol or a controlled substance; or

(4) until June 30, 1999, a second or subsequent violation of section 85.015, subdivision 1c.

(d) "Motor vehicle" and "vehicle" have the meaning given "motor vehicle" in section 169.121, subdivision 11. The terms do not include a vehicle which is stolen or taken in violation of the law.

(e) "Owner" means the registered owner of the motor vehicle according to records of the department of public safety and includes a lessee of a motor vehicle if the lease agreement has a term of 180 days or more.

(f) "Prior impaired driving conviction" has the meaning given it in section 169.121, subdivision 3. A prior impaired driving conviction also includes a prior juvenile adjudication that would have been a prior impaired driving conviction if committed by an adult.

(g) "Prior license revocation" has the meaning given it in section 169.121, subdivision 3.

(h) "Prosecuting authority" means the attorney in the jurisdiction in which the designated offense occurred who is responsible for prosecuting violations of a designated offense.

Sec. 46. Minnesota Statutes 1996, section 308A.131, subdivision 1, is amended to read:

Subdivision 1. [CONTENTS.] (a) The incorporators shall prepare the articles, which must include:

(1) the name of the cooperative;

(2) the purpose of the cooperative;

(3) the principal place of business for the cooperative;

(4) the period of duration for the cooperative, if the duration is not to be perpetual;

(5) the total authorized number of shares and the par value of each share if the cooperative is organized on a capital stock basis;

(6) a description of the classes of shares, if the shares are to be classified;

(7) a statement of the number of shares in each class and relative rights, preferences, and restrictions granted to or imposed upon the shares of each class, and a provision that only common stockholders have voting power;

(8) a statement that individuals owning common stock shall be restricted to one vote in the affairs of the cooperative or a statement that the cooperative is one described in section 308A.641, subdivision 2;

(9) a statement that shares of stock are transferable only with the approval of the board;

(10) a statement that dividends on the capital stock and nonstock units of equity of the cooperative may not exceed eight percent annually;

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(11) the names, post office addresses, and terms of office of the directors of the first board;

(12) a statement that net income in excess of dividends and additions to reserves shall be distributed on the basis of patronage, and that the records of the cooperative may show the interest of patrons, stockholders of any classes, and members in the reserves; and

(13) the registered office address of the cooperative and the name of the registered agent, if any, at that address.

(b) The articles must always contain the provisions in paragraph (a), except that the names, post office addresses, and terms of offices of the directors of the first board may be omitted after their successors have been elected by the members or the articles are amended in their entirety.

(c) The articles may contain other lawful provisions.

(d) The articles must be signed by the incorporators.

Sec. 47. Minnesota Statutes 1997 Supplement, section 308A.705, subdivision 1, is amended to read:

Subdivision 1. [DISTRIBUTION OF NET INCOME.] Net income in excess of dividends on capital stock, nonstock units of equity, and additions to reserves shall be distributed on the basis of patronage. A cooperative may establish allocation units, whether the units are functional, divisional, departmental, geographic, or otherwise, and pooling arrangements and may account for and distribute net income on the basis of allocation units and pooling arrangements. A cooperative may offset the net loss of an allocation unit or pooling arrangement against the net income of other allocation units or pooling arrangements to the extent permitted by section 1388(j) of the Internal Revenue Code of 1986, as amended through December 31, 1996.

Sec. 48. Minnesota Statutes 1996, section 308A.705, subdivision 3, is amended to read:

Subd. 3. [DIVIDENDS.] Dividends may be paid on capital stock and nonstock units of equity only if the net income of the cooperative for the previous fiscal year is sufficient. The dividends are not cumulative.

Sec. 49. Laws 1997, chapter 216, section 15, subdivision 8, is amended to read:

Subd. 8. Pollution Prevention

(a) TOXIC EMISSIONS FROM FIRE TRAINING 65,000

This appropriation is from the trust fund to metropolitan state university to identify and quantify toxic emissions from live-burn training in acquired structures to evaluate and propose alternatives. This appropriation is available until June 30, 2000, at which time the project must be completed and final products delivered, unless an earlier date is specified in the work program.

(b) POLLUTION PREVENTION TRAINING PROGRAM FOR

INDUSTRIAL EMPLOYEES 200,000

This appropriation is from the future resources fund to the director of the office of environmental assistance for agreements with Citizens for a Better Environment and the University of Minnesota to provide the training and technical assistance needed for pollution prevention by industrial employees.

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Sec. 50. [AGGREGATE RESOURCES TASK FORCE.]

Subdivision 1. [CREATION; MEMBERSHIP.] (a) An aggregate resources task force consists of 12 members appointed as follows:

(1) the subcommittee on subcommittees of the senate committee on rules and administration shall appoint one citizen member with experience in the state's aggregates industry, one citizen member who is an employee of a local government unit that works with environmental and land use impacts from aggregate mining, and four members of the senate, two of whom must be members of the minority caucus; and

(2) the speaker of the house shall appoint one citizen member who is an employee of a local governmental unit that works with environmental and land use impacts from aggregate mining, one citizen member with experience in native prairie conservation, and four members of the house, two of whom must be members of the minority caucus.

(b) The appointing authorities must make their respective appointments not later than July 1, 1998.

(c) The first meeting of the task force must be convened by a person designated by the chair of the senate committee on rules and administration. Task force members shall then elect a permanent chair from among the task force members.

Subd. 2. [DUTIES.] The task force shall examine current and projected issues concerning the need for and use of the state's aggregate resources. The task force shall seek input from the aggregate industry, state agencies, counties, local units of government, environmental organizations, and other interested parties on aggregate resource issues, including resource inventory, resource depletion, mining practices, nuisance problems, safety, competing land uses and land use planning, native prairie conservation, environmental review, local permit requirements, reclamation, recycling, transportation of aggregates, and the aggregate material tax.

Subd. 3. [REPORT.] Not later than February 1, 2000, the task force shall report to the legislature on the findings of its study. The report must include a recommendation as to whether there is a need for a comprehensive statewide policy on any aggregate resource issue. If the task force recommends a statewide policy, the report must include recommendations on the framework for the statewide policy.

Subd. 4. [EXPIRATION.] The aggregate resources task force expires 45 days after its report and recommendations are delivered to the legislature, or on June 30, 2001, whichever date is earlier.

Sec. 51. [REPORT ON NONCOMMERCIAL MANURE APPLICATOR TRAINING AND CERTIFICATION.]

The commissioner of agriculture, in close consultation with the commissioner of the pollution control agency and statewide farm organizations including the Minnesota Farmers Union and the Minnesota Farm Bureau Federation, shall conduct a study to assess the need for and feasibility of a program for noncommercial manure applicator training and certification. The commissioner must submit a report to the members of the senate and house policy committees with jurisdiction over agriculture and the environment by January 20, 1999. The report must include recommendations on:

(1) persons and activities that should be exempt from certification;

(2) dates by which persons should be required to obtain certification;

(3) content of the noncommercial animal waste technician training curriculum; and

(4) procedures and timelines for implementing noncommercial animal waste technician training programs.

Sec. 52. [PERMIT REQUIREMENTS.]

Until June 30, 2000, neither the pollution control agency nor a county board may issue a permit for the construction of an open-air clay, earthen, or flexible membrane lined swine waste lagoon. This section does not apply to repair or modification related to an environmental improvement of an existing lagoon.

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Sec. 53. [FEEDLOT RULES.]

By March 1, 1999, the commissioner of the pollution control agency must submit a copy of updated feedlot permit rules as prescribed in Minnesota Statutes, section 116.07, subdivision 7, paragraph (i). The updated rules must become effective no later than June 1, 1999.

Sec. 54. [ENVIRONMENTAL REVIEW RULES.]

The environmental quality board, in consultation with the pollution control agency, shall study and adopt rules pursuant to Minnesota Statutes, chapter 14, to revise and clarify Minnesota Rules, part 4410.1000, subpart 4, as it applies to connected actions on animal feedlots and the need for environmental review. The board must submit a copy of the proposed rules and a summary of public comments received on the rules to the members of the senate and house policy committees with jurisdiction over agriculture and the environment, the senate environment and agriculture budget division, and the house environment, natural resources, and agriculture finance committee by March 1, 1999. The rules may not become effective until 60 days after they are submitted to the committee members and must become effective no later than June 1, 1999.

Sec. 55. [REPORT ON REVISED STANDARDS FOR HYDROGEN SULFIDE EXPOSURE.]

By January 15, 1999, the commissioner of labor and industry, in consultation with the commissioners of the pollution control agency, health, and agriculture, shall report to the senate and house policy committees with jurisdiction over agriculture and environment on the need for and, if appropriate, suggested changes to standards for hydrogen sulfide exposure levels within livestock confinement facilities having a design capacity of 500 animal units or more and at various distances up to 5,000 feet from animal waste storage facilities.

Sec. 56. [REPORT ON ANIMAL WASTE LIABILITY.]

By January 15, 1999, the commissioner of the pollution control agency, in conjunction with the commissioner of agriculture, shall report to the legislative policy and finance committees or divisions with jurisdiction over agriculture and the environment on the need for an animal waste liability account, improved animal waste incident reporting, and a contingency action plan for animal waste sites. The report must include:

(1) an analysis of the need and level of funding required for an animal waste liability account;

(2) the identification of possible funding sources to ensure adequate resources for animal waste site cleanup under clause (1);

(3) an analysis of the need for changes to the current animal waste incident reporting system; and

(4) the need for development of a statewide animal waste contingency plan for animal waste sites, including containment, closure, and cleanup.

Sec. 57. [COUNTIES AND TOWNS TO REPORT.]

(a) Not later than August 1, 1998, each county and each town that has adopted ordinances related to animal feedlots shall supply copies of the ordinances to the commissioner of agriculture. A county or town that adopts a new or amended ordinance related to animal feedlots shall report the new or amended ordinance to the commissioner within 60 days after the adoption.

(b) The reporting requirements of paragraph (a) expire after June 30, 2001.

Sec. 58. [LOAN WORK PLAN.]

Notwithstanding the requirements of rules adopted pursuant to Minnesota Statutes, section 115A.0716, that prevent the use of funds for costs incurred before the term of the agreement, the director shall disburse loan funds awarded to United Recycling, Inc., provided that the director has approved a new project proposal that includes performance goals for carpet recycling and demonstrates the financial viability of the recycling enterprise.

Journal of the House - 109th Day - Thursday, April 9, 1998 - Top of Page 9891

Sec. 59. [WATER QUALITY COST-BENEFIT MODEL SCOPING TASK FORCE.]

The commissioner of the pollution control agency shall convene a task force comprising of no more than three representatives each from industry, municipalities, watershed management groups, labor, agriculture, and environmental groups within 30 days of the effective date of this section. The task force shall select an entity to conduct a scoping study for a cost-benefit model to analyze water quality standards. The scoping study shall include: a watershed-based approach that evaluates both point and nonpoint pollution sources, the extent of the costs and benefits to be evaluated, the necessary elements of the model, a model that is transferable to other watersheds and standards, and the characteristics of the watersheds and standards to be evaluated. By October 15, 1998, the task force shall review the completed scoping study and make recommendations on the scope, cost, and time frame for development of the model to the commissioner and to the chairs of the house and senate environment and natural resources committees, the chair of the house environment, natural resources, and agriculture finance committee, and the chair of the senate environment and agriculture budget division.

Sec. 60. [ANALYSIS AND SALE OF LAKESHORE LEASED LOTS.]

Subdivision 1. [ANALYSIS OF LOTS.] By January 15, 1999, the commissioner of natural resources must submit a report to the chairs of the senate and house environment and natural resources committees, the chair of the house environment, natural resources, and agriculture finance committee, the chair of the senate environment and agriculture budget division, the chairs of the senate children, families and learning committee, and the chair of the house education committee, including the results of the field inspection required by this section, recommendations on appropriations needed to accomplish this section, and additional recommendations on methods to preserve public lakeshore in the state. The commissioner must conduct a field inspection of all lands leased pursuant to Minnesota Statutes, section 92.46, subdivision 1. The commissioner shall identify all lots within the following classifications:

(1) sale of the lot would create a block of contiguous property that could result in a shift in land use from residential to commercial development;

(2) the lot should remain in public ownership in order to provide public access to the lake where it is located;

(3) the lot is part of the trust land in Horseshoe Bay, as referenced in Laws 1997, chapter 216, section 151;

(4) the lot contains all or part of an unusual resource, such as a historical or archaeological site, or a sensitive ecological resource, or contains high quality habitat, or has a high scenic value;

(5) the lot is not in compliance with state law concerning on-site sewage treatment or minimum lot size requirements for development, or the lot is hydrologically unsuitable for future development; and

(6) the lot provides access for adjacent state land.

Subd. 2. [SCHOOL TRUST LAKESHORE LOTS; EXCHANGE AND SALE.] (a) For each parcel of land that does not meet the criteria in subdivision 1, the commissioner must preserve the assets of the school trust pursuant to this subdivision.

(b) The commissioner must attempt to establish a land exchange with each lessee. The lessee and the commissioner must attempt to agree on a parcel of private lakeshore land to be used for the land exchange. If the lessee obtains an option to purchase the parcel, the commissioner must conduct an appraisal and a survey of both parcels of land at the lessee's expense. If the commissioner determines that the parcel offered by the lessee is of equal or greater value than the trust land, the commissioner must submit the proposed exchange to the land exchange board, as defined in Minnesota Statutes, section 94.341, for approval. Notwithstanding Minnesota Statutes, sections 94.342 to 94.347, the land exchange board shall determine the procedures for approval of individual land exchanges, subject to the requirements of the Minnesota Constitution and this section. Any exchange under this paragraph must be submitted to the land exchange board by July 1, 2004.

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(c) By December 15, 2004, the commissioner must submit a list of each parcel of land that has not been exchanged pursuant to paragraph (b) to the house and senate environment and natural resource committees. The list submitted by the commissioner must include recommendations for sale or retention of the remaining individual parcels. Subject to approval by the legislature, the commissioner must sell parcels approved for sale by public sale at the expiration of the lease term using a sealed bid procedure under the remaining provisions of Minnesota Statutes, chapter 92. After approval of sale by the legislature, a lessee of land approved for sale may request during the remainder of the lease term that lands leased by the lessee be sold at a public sale pursuant to this section within one year of the request.

(d) The commissioner must mail notice of this section to each lessee by July 1, 1998.

Sec. 61. [REPEALER.]

(a) Minnesota Statutes 1997 Supplement, section 85.015, subdivision 1c, as amended by this act, is repealed effective June 30, 1999.

(b) Laws 1991, chapter 275, section 3, is repealed.

Sec. 62. [EFFECTIVE DATE.]

Section 31 is effective January 1, 1998. Sections 28 and 29 are effective January 1, 1999. Section 23 is effective July 1, 1999. Section 52 is effective the day following final enactment and applies to new applications submitted after that date. The remainder of this act is effective the day following final enactment."

Delete the title and insert:

"A bill for an act relating to the organization and operation of state government; appropriating money for environmental, natural resource, and agricultural purposes; providing for regulation of certain activities and practices; amending Minnesota Statutes 1996, sections 3.737, subdivisions 1, 4, and by adding a subdivision; 18C.141; 35.82, subdivision 2; 41A.09, subdivision 1a; 84.871; 86B.101, subdivision 2; 86B.415, subdivision 1, and by adding a subdivision; 89A.03, subdivision 1; 90.193; 93.002, subdivision 1; 97A.037, subdivision 1; 97A.245; 103C.315, subdivision 4; 103F.155, subdivision 2; 103F.161, subdivision 2; 103G.271, subdivision 6; 115.076, subdivision 1; 116.07, by adding subdivisions; 308A.131, subdivision 1; 308A.705, subdivision 3; Minnesota Statutes 1997 Supplement, sections 17.101, subdivision 5; 41A.09, subdivision 3a; 84.8205; 84.86, subdivision 1; 85.015, subdivision 1c; 115.55, subdivision 5a; 116.07, subdivision 7; 116.18, subdivision 3c; 169.1217, subdivision 1; and 308A.705, subdivision 1; Laws 1997, chapter 216, section 15, subdivision 8; proposing coding for new law in Minnesota Statutes, chapters 17; 18C; and 84; repealing Minnesota Statutes 1997 Supplement, section 85.015, subdivision 1c; and Laws 1991, chapter 275, section 3."

We request adoption of this report and repassage of the bill.

Senate Conferees: Steven Morse, Dallas C. Sams, Becky Lourey and Steve Dille.

House Conferees: Tom Osthoff, Willard Munger, Betty McCollum and Doug Peterson.

Osthoff moved that the report of the Conference Committee on S. F. No. 3353 be adopted and that the bill be repassed as amended by the Conference Committee.

Winter moved that the House recess subject to the call of the Chair. The motion prevailed.

RECESS

The House recessed for an address by the Honorable Arne H. Carlson, Governor of the State of Minnesota
Journal of the House - 109th Day - Thursday, April 9, 1998 - Top of Page 9893

RECONVENED

The House reconvened and was called to order by the Speaker.

Krinkie moved that the House refuse to adopt the Conference Committee report on S. F. No. 3353, and that the bill be returned to the Conference Committee. The motion prevailed.

A roll call was requested and properly seconded.

The question was taken on the Krinkie motion and the roll was called.

McCollum moved that those not voting be excused from voting. The motion prevailed.

There were 62 yeas and 70 nays as follows:

Those who voted in the affirmative were:

Abrams Davids Kielkucki Mulder Rostberg Tompkins
Anderson, B. Dehler Knight Ness Seagren Van Dellen
Anderson, I. Dempsey Knoblach Nornes Seifert Vandeveer
Bakk Erhardt Kraus Olson, M. Smith Weaver
Bettermann Erickson Krinkie Osskopp Stanek Westfall
Boudreau Finseth Kuisle Ozment Stang Westrom
Bradley Goodno Lindner Paulsen Sviggum Workman
Broecker Gunther Macklin Pawlenty Swenson, H.
Clark, J. Haas Mahon Reuter Sykora
Commers Harder McElroy Rhodes Tingelstad
Daggett Holsten Molnau Rifenberg Tomassoni

Those who voted in the negative were:

Biernat Garcia Juhnke Mariani Otremba, M. Solberg
Bishop Greenfield Kahn Marko Paymar Trimble
Carlson Greiling Kalis McCollum Pelowski Tuma
Chaudhary Hasskamp Kelso McGuire Peterson Tunheim
Clark, K. Hausman Kinkel Milbert Pugh Wagenius
Dawkins Hilty Koskinen Mullery Rest Wejcman
Delmont Huntley Kubly Munger Rukavina Wenzel
Dorn Jaros Larsen Murphy Schumacher Winter
Entenza Jefferson Leighton Olson, E. Sekhon Wolf
Evans Jennings Lieder Opatz Skare Spk. Carruthers
Farrell Johnson, A. Long Orfield Skoglund
Folliard Johnson, R. Mares Osthoff Slawik

The motion did not prevail.

The question recurred on the Osthoff motion that the report of the Conference Committee on S. F. No. 3353 be adopted and that the bill be repassed as amended by the Conference Committee. The motion prevailed.

S. F. No. 3353, A bill for an act relating to the organization and operation of state government; appropriating money for environmental, natural resource, and agricultural purposes; providing for regulation of certain activities and practices; amending Minnesota Statutes 1996, sections 3.737, subdivisions 1, 4, and by adding a subdivision; 41A.09,

Journal of the House - 109th Day - Thursday, April 9, 1998 - Top of Page 9894

subdivision 1a; 84.83, subdivision 3; 84.871; 84.943, subdivision 3; 86B.415, by adding a subdivision; 97A.037, subdivision 1; 97A.245; 103C.315, subdivision 4; 103F.155, subdivision 2; 103F.161, subdivision 2; 103G.271, subdivision 6; 115B.175, subdivision 3; and 116.07, subdivision 4h; 116.49, by adding a subdivision; Minnesota Statutes 1997 Supplement, sections 17.101, subdivision 5; 41A.09, subdivision 3a; 84.8205; 84.86, subdivision 1; and 97A.485, subdivision 6; repealing Minnesota Statutes 1997 Supplement, section 85.015, subdivision 1c; Laws 1991, chapter 275, section 3.

The bill was read for the third time, as amended by Conference, and placed upon its repassage.

The question was taken on the repassage of the bill and the roll was called.

Winter moved that those not voting be excused from voting. The motion prevailed.

There were 72 yeas and 60 nays as follows:

Those who voted in the affirmative were:

Biernat Garcia Johnson, R. Long Orfield Slawik
Bishop Greenfield Juhnke Mares Osthoff Solberg
Carlson Greiling Kahn Mariani Otremba, M. Swenson, H.
Chaudhary Hasskamp Kalis Marko Paymar Trimble
Clark, K. Hausman Kelso McCollum Pelowski Tuma
Dawkins Hilty Kinkel McGuire Peterson Tunheim
Delmont Holsten Koskinen Milbert Pugh Wagenius
Dorn Huntley Kubly Mullery Rest Wejcman
Entenza Jaros Larsen Munger Rukavina Wenzel
Evans Jefferson Leighton Murphy Schumacher Winter
Farrell Jennings Leppik Olson, E. Sekhon Wolf
Folliard Johnson, A. Lieder Opatz Skoglund Spk. Carruthers

Those who voted in the negative were:

Abrams Daggett Harder McElroy Reuter Sykora
Anderson, B. Davids Kielkucki Molnau Rhodes Tingelstad
Anderson, I. Dehler Knight Mulder Rifenberg Tomassoni
Bakk Dempsey Knoblach Ness Rostberg Tompkins
Bettermann Erhardt Kraus Nornes Seagren Van Dellen
Boudreau Erickson Krinkie Olson, M. Seifert Vandeveer
Bradley Finseth Kuisle Osskopp Smith Weaver
Broecker Goodno Lindner Ozment Stanek Westfall
Clark, J. Gunther Macklin Paulsen Stang Westrom
Commers Haas Mahon Pawlenty Sviggum Workman

The bill was repassed, as amended by Conference, and its title agreed to.

Mr. Speaker:

I hereby announce that the Senate has concurred in and adopted the report of the Conference Committee on:

H. F. No. 2874, A bill for an act relating to education; kindergarten through grade 12; providing for general education; special education; interagency services and lifelong learning; facilities and organization; policies promoting academic excellence; education policy issues; libraries; state agencies; appropriating money; amending Minnesota Statutes 1996,

Journal of the House - 109th Day - Thursday, April 9, 1998 - Part 1 pages 9511-9713
Journal of the House - 109th Day - Thursday, April 9, 1998 - Part 3 pages 9896-10274