EIGHTY-SECOND SESSION 2001
__________________
FORTY-SECOND DAY
Saint Paul, Minnesota, Friday, April 27, 2001
This Journal as a PDF document
The House of Representatives convened at 9:00 a.m. and was called to order by Steve Sviggum, Speaker of the House.
Prayer was offered by Pastor Lori Walber, Our Savior's Reformed Church, Brooklyn Park, Minnesota.
The members of the House gave the pledge of allegiance to the flag of the United States of America.
The roll was called and the following members were present:
| Abeler | Dorn | Holberg | Lenczewski | Paulsen | Swapinski | |
| Anderson, B. | Eastlund | Holsten | Leppik | Pawlenty | Swenson | |
| Anderson, I. | Entenza | Howes | Lieder | Paymar | Sykora | |
| Bakk | Erhardt | Huntley | Lindner | Pelowski | Thompson | |
| Bernardy | Erickson | Jacobson | Lipman | Penas | Tingelstad | |
| Biernat | Evans | Jaros | Luther | Peterson | Tuma | |
| Bishop | Finseth | Jennings | Mahoney | Pugh | Vandeveer | |
| Boudreau | Folliard | Johnson, J. | Mares | Rhodes | Wagenius | |
| Bradley | Fuller | Johnson, R. | Mariani | Rifenberg | Walz | |
| Buesgens | Gerlach | Johnson, S. | Marko | Rukavina | Wasiluk | |
| Carlson | Gleason | Juhnke | McElroy | Ruth | Wenzel | |
| Cassell | Goodno | Kahn | McGuire | Schumacher | Westerberg | |
| Clark, J. | Goodwin | Kalis | Molnau | Seagren | Westrom | |
| Clark, K. | Gray | Kelliher | Mulder | Seifert | Wilkin | |
| Daggett | Greiling | Kielkucki | Mullery | Sertich | Winter | |
| Davids | Gunther | Knoblach | Murphy | Skoe | Wolf | |
| Davnie | Haas | Koskinen | Nornes | Skoglund | Workman | |
| Dawkins | Hackbarth | Krinkie | Opatz | Slawik | Spk. Sviggum | |
| Dehler | Harder | Kubly | Osskopp | Smith | ||
| Dempsey | Hausman | Kuisle | Osthoff | Solberg | ||
| Dibble | Hilstrom | Larson | Otremba | Stanek | ||
| Dorman | Hilty | Leighton | Ozment | Stang | ||
A quorum was present.
Abrams, Marquart, Milbert, Ness and Walker were excused.
The Chief Clerk proceeded to read the Journal of the preceding day. Ruth moved that further reading of the Journal be suspended and that the Journal be approved as corrected by the Chief Clerk. The motion prevailed.
REPORTS OF CHIEF CLERK
S. F. No. 2343 and H. F. No. 2489, which had been referred to the Chief Clerk for comparison, were examined and found to be identical with certain exceptions.
Leppik moved that the rules be so far suspended that S. F. No. 2343 be substituted for H. F. No. 2489 and that the House File be indefinitely postponed. The motion prevailed.
Seagren from the Committee on K-12 Education Finance to which was referred:
H. F. No. 82, A bill for an act relating to education finance; concentrating a portion of the reserved revenue for staff development on induction and mentorship activities for new teachers; amending Minnesota Statutes 2000, section 122A.61, subdivision 1.
Reported the same back with the following amendments:
Delete everything after the enacting clause and insert:
"ARTICLE 1
GENERAL EDUCATION REVENUE
Section 1. Minnesota Statutes 2000, section 123B.143, subdivision 1, is amended to read:
Subdivision 1. [CONTRACT; DUTIES.] All districts maintaining a classified secondary school must employ a superintendent who shall be an ex officio nonvoting member of the school board. The authority for selection and employment of a superintendent must be vested in the board in all cases. An individual employed by a 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 board, at its discretion, may or may not renew an employment contract. A board must 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 board may negotiate and enter into a subsequent employment contract to take effect upon the expiration of the existing contract. A subsequent contract must be contingent upon the employee completing the terms of an existing contract. If a contract between a board and a superintendent is terminated prior to the date specified in the contract, the 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 board may terminate a superintendent during the term of an employment contract for any of the grounds specified in section 122A.40, subdivision 9 or 13. A superintendent shall not rely upon an employment contract with a board to assert any other continuing contract rights in the position of superintendent under section 122A.40. Notwithstanding the provisions of sections 122A.40, subdivision 10 or 11, 123A.32, 123A.75, 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 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;
(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 to identify how much the district is cross-subsidizing programs with special
education, basic skills, and general education revenue; and
(6) perform other duties prescribed by the board.
Sec. 2. Minnesota Statutes 2000, section 123B.42, subdivision 3, is amended to read:
Subd. 3. [COST; LIMITATION.] (a) The cost per pupil of the textbooks, individualized instructional or
cooperative learning materials, and standardized tests provided for in this section for each school year must not
exceed the statewide average expenditure per pupil, adjusted pursuant to clause (b), by the Minnesota public
elementary and secondary schools for textbooks, individualized instructional materials and standardized tests as
computed and established by the department by March February 1 of the preceding school year from
the most recent public school year data then available.
(b) The cost computed in clause (a) shall be increased by an inflation adjustment equal to the percent of increase in the formula allowance, pursuant to section 126C.10, subdivision 2, from the second preceding school year to the current school year.
(c) The commissioner shall allot to the districts or intermediary service areas the total cost for each school year of providing or loaning the textbooks, individualized instructional or cooperative learning materials, and standardized tests for the pupils in each nonpublic school. The allotment shall not exceed the product of the statewide average expenditure per pupil, according to clause (a), adjusted pursuant to clause (b), multiplied by the number of nonpublic school pupils who make requests pursuant to this section and who are enrolled as of September 15 of the current school year.
Sec. 3. Minnesota Statutes 2000, section 123B.44, subdivision 6, is amended to read:
Subd. 6. [COMPUTATION OF MAXIMUM ALLOTMENTS.] For purposes of computing maximum allotments
for each school year pursuant to this section, the average public school expenditure per pupil for health services and
the average public school expenditure per secondary pupil for guidance and counseling services shall be computed
and established by the department by March February 1 of the preceding school year from the most
recent public school year data then available.
Sec. 4. Minnesota Statutes 2000, section 123B.75, subdivision 5, is amended to read:
Subd. 5. [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.
(b) In June of each year 2001, the school district must recognize as revenue, in the fund for which
the levy was made, the lesser of:
(1) the sum of May, June, and July school district tax settlement revenue received in that calendar year plus general education aid according to section 126C.13, subdivision 4, received in July and August of that calendar year; or
(2) the sum of:
(i) 31 percent of the referendum levy certified in the prior calendar year according to section 126C.17, subdivision 9; plus
(ii) the entire amount of the levy certified in the prior calendar year according to sections 124D.86, subdivision 4, for school districts receiving revenue under 124D.86, subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, and 3, paragraphs (4), (5), and (6); 126C.43, subdivision 2; and 126C.48, subdivision 6.
(c) For fiscal year 2002 and later years, in June of each year, the school district must recognize as revenue, in the fund for which the levy was made, the lesser of:
(1) the sum of May, June, and July school district tax settlement revenue received in that calendar year, plus general education aid according to section 126C.13, subdivision 4, received in July and August of that calendar year; or
(2) the sum of:
(i) the lesser of 50 percent of the referendum levy certified in the prior calendar year according to section 126C.17, subdivision 9; or 31 percent of the referendum levy certified according to section 126C.17, in calendar year 2000; plus
(ii) the entire amount of the levy certified in the prior calendar year according to section 124D.86, subdivision 4, for school districts receiving revenue under sections 124D.86, subdivision 3, clauses (1), (2), and (3); 126C.41, subdivisions 1, 2, and 3, paragraphs (4), (5), and (6); 126C.43, subdivision 2; and 126C.48, subdivision 6.
[EFFECTIVE DATE.] This section is effective June 30, 2001.
Sec. 5. Minnesota Statutes 2000, section 123B.75, is amended by adding a subdivision to read:
Subd. 6b. [GENERAL EDUCATION AID.] If the amount to be recognized as revenue under subdivision 5 exceeds the May, June, and July school district tax settlement revenue received in that calendar year, the district must recognize an amount of general education aid equal to the difference between the total amount to be recognized as revenue under subdivision 5, and the May, June, and July school district tax settlement revenue received in that calendar year as revenue in the previous fiscal year.
[EFFECTIVE DATE.] This section is effective June 30, 2001.
Sec. 6. Minnesota Statutes 2000, section 123B.92, is amended by adding a subdivision to read:
Subd. 11. [TRANSPORTATION RESERVE.] Each school district must reserve all transportation revenue, including the portion of the general education formula identified for transportation, integration, sparsity, nonpublic, and special needs. This revenue may only be spent for transportation purposes. If a school board determines that it has excess funds in its transportation reserve, then the board may adopt a written resolution unreserving any specified portion of the general education basic revenue otherwise reserved for transportation purposes.
Sec. 7. Minnesota Statutes 2000, section 123B.92, is amended by adding a subdivision to read:
Subd. 12. [BUS PURCHASE RESERVE.] Each school district must reserve an amount equal to seven percent of the depreciated value of the district's owned or contracted school bus fleet. Each school district must use this reserve for school bus purchases or other transportation purposes.
Sec. 8. Minnesota Statutes 2000, section 124D.69, subdivision 1, is amended to read:
Subdivision 1. [AID.] If a pupil enrolls in an alternative program, eligible under section 124D.68, subdivision 3,
paragraph (d), or subdivision 4, operated by a private organization that has contracted with a school district to
provide educational services for eligible pupils under section 124D.68, subdivision 2, the district contracting with
the private organization must reimburse the provider an amount equal to at least 90 95 percent of
the district's average general education less basic skills revenue per pupil unit times the number of pupil units for
pupils attending the program. Basic skills revenue shall be paid according to section 126C.10, subdivision 4.
Compensatory revenue must be allocated according to section 126C.15, subdivision 2. For a pupil attending the
program part time, the revenue paid to the program must be reduced proportionately, according to the amount of time
the pupil attends the program, and revenue paid to the district shall be reduced accordingly. Pupils for whom a
district provides reimbursement may not be counted by the district for any purpose other than computation of general
education revenue. If payment is made to a district or program for a pupil under this section, the department must
not make a payment for the same pupil under section 124D.68, subdivision 9.
[EFFECTIVE DATE.] This section is effective for revenue for fiscal years 2002 and later.
Sec. 9. Minnesota Statutes 2000, section 124D.86, subdivision 3, is amended to read:
Subd. 3. [INTEGRATION REVENUE.] (a) For fiscal year 2000 and later fiscal years, integration revenue equals the following amounts:
(1) for independent school district No. 709, Duluth, $207 times the adjusted pupil units for the school year;
(2) for independent school district No. 625, St. Paul, $446 times the adjusted pupil units for the school year;
(3) for special school district No. 1, Minneapolis, $536 times the adjusted pupil units for the school year; and
(4) for a district not listed in clause (1), (2), or (3) that is required to implement a plan according to the requirements of Minnesota Rules, parts 3535.0100 to 3535.0180, the lesser of
(i) the actual cost of implementing the plan during the fiscal year minus the aid received under subdivision 6, or
(ii) $93 times the adjusted pupil units for the school year.
Any money received by districts in clauses (1) to (3) which exceeds the amount received in fiscal year 2000 shall be subject to the budget requirements in subdivision 1a.
(b) Each district that receives integration revenue under paragraph (a) must reserve for integration transportation an amount equal to the amount expended on integration transportation in fiscal year 1998.
Sec. 10. Minnesota Statutes 2000, section 126C.05, subdivision 1, is amended to read:
Subdivision 1. [PUPIL UNIT.] Pupil units for each Minnesota resident pupil in average daily membership enrolled in the district of residence, in another district under sections 123A.05 to 123A.08, 124D.03, 124D.06, 124D.07, 124D.08, or 124D.68; in a charter school under section 124D.10; or for whom the resident district pays tuition under section 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65, shall be counted according to this subdivision.
(a) A prekindergarten pupil with a disability who is enrolled in a program approved by the commissioner and has an individual education plan is counted as the ratio of the number of hours of assessment and education service to 825 times 1.25 with a minimum average daily membership of 0.28, but not more than 1.25 pupil units.
(b) A prekindergarten pupil who is assessed but determined not to be handicapped is counted as the ratio of the number of hours of assessment service to 825 times 1.25.
(c) A kindergarten pupil with a disability who is enrolled in a program approved by the commissioner is counted as the ratio of the number of hours of assessment and education services required in the fiscal year by the pupil's individual education program plan to 875, but not more than one.
(d) A kindergarten pupil who is not included in paragraph (c) is counted as .557 of a pupil unit for fiscal year 2000 and thereafter.
(e) A pupil who is in any of grades 1 to 3 is counted as 1.115 pupil units for fiscal year 2000 and thereafter.
(f) A pupil who is any of grades 4 to 6 is counted as 1.06 pupil units for fiscal year 1995 and thereafter.
(g) A pupil who is in any of grades 7 to 12 is counted as 1.3 pupil units.
(h) A pupil who is in the post-secondary enrollment options program is counted as 1.3 pupil units.
Sec. 11. Minnesota Statutes 2000, section 126C.05, subdivision 3, is amended to read:
Subd. 3. [COMPENSATION REMEDIAL REVENUE PUPIL UNITS.] Compensation
(a) Remedial revenue pupil units for fiscal year 1998 and thereafter must be computed according
to this subdivision.
(a) (b) The compensation remedial revenue concentration percentage for each
building in a district equals the product of 100 times the ratio of:
(1) the sum of the number of pupils enrolled in the building eligible to receive free lunch plus one-half of the pupils eligible to receive reduced priced lunch on October 1 of the previous fiscal year; to
(2) the number of pupils enrolled in the building on October 1 of the previous fiscal year.
(b) (c) The compensation remedial revenue pupil weighting factor for a building
equals the lesser of one or the quotient obtained by dividing the building's compensation revenue concentration
percentage by 80.0.
(c) (d) The compensation remedial revenue pupil units for a building equals
the product of:
(1) the sum of the number of pupils enrolled in the building eligible to receive free lunch and one-half of the pupils eligible to receive reduced priced lunch on October 1 of the previous fiscal year; times
(2) the compensation remedial revenue pupil weighting factor for the building; times
(3) .60.
(d) (e) Notwithstanding paragraphs (a) (b) to (c) (d), for
charter schools and contracted alternative programs in the first year of operation, compensation
remedial revenue pupil units shall be computed using data for the current fiscal year. If the charter school
or contracted alternative program begins operation after October 1, compensatory remedial revenue
pupil units shall be computed based on pupils enrolled on an alternate date determined by the commissioner, and
the compensation remedial revenue pupil units shall be prorated based on the ratio of the number
of days of student instruction to 170 days.
(e) (f) The percentages in this subdivision must be based on the count of individual pupils and
not on a building average or minimum.
(g) For fiscal years 2004 and later, statewide total remedial revenue equals the amount of remedial revenue for fiscal year 2003. This amount is included in general education revenue.
Sec. 12. Minnesota Statutes 2000, section 126C.05, subdivision 5, is amended to read:
Subd. 5. [ADJUSTED PUPIL UNITS.] (a) Adjusted pupil units for a district or charter school means the sum of:
(1) the number of pupil units served, according to subdivision 7, plus
(2) pupil units according to subdivision 1 for whom the district or charter school pays tuition under section 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65, minus
(3) pupil units according to subdivision 1 for whom the district or charter school receives tuition under section 123A.18, 123A.22, 123A.30, 123A.32, 123A.44, 123A.488, 123B.88, subdivision 4, 124D.04, 124D.05, 125A.03 to 125A.24, 125A.51, or 125A.65.
(b) Adjusted marginal cost pupil units means the greater of:
(1) the sum of .77 .50 times the pupil units defined in paragraph (a) for the current school year
and .23 .50 times the pupil units defined in paragraph (a) for the previous school year; or
(2) the number of adjusted pupil units defined in paragraph (a) for the current school year.
[EFFECTIVE DATE.] This section is effective for revenue for fiscal years 2002 and later.
Sec. 13. Minnesota Statutes 2000, section 126C.05, subdivision 6, is amended to read:
Subd. 6. [RESIDENT PUPIL UNITS.] (a) Resident pupil units for a district means the number of pupil units according to subdivision 1 residing in the district.
(b) Resident marginal cost pupil units means the greater of:
(1) the sum of .77 .50 times the pupil units defined in paragraph (a) for the current year and
.23 .50 times the pupil units defined in paragraph (a) for the previous school year; or
(2) the number of resident pupil units defined in paragraph (a) for the current school year.
[EFFECTIVE DATE.] This section is effective for revenue for fiscal years 2002 and later.
Sec. 14. Minnesota Statutes 2000, section 126C.10, subdivision 1, is amended to read:
Subdivision 1. [GENERAL EDUCATION REVENUE.] For fiscal year 2000 2002 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, equity revenue, referendum offset adjustment, transition
revenue, and supplemental revenue.
[EFFECTIVE DATE.] This section is effective for revenue for fiscal year 2002.
Sec. 15. Minnesota Statutes 2000, section 126C.10, subdivision 2, is amended to read:
Subd. 2. [BASIC REVENUE.] (a) The basic revenue for each district equals the formula allowance times
the adjusted marginal cost pupil units for the school year. The formula allowance for fiscal year 1998 is $3,581.
The formula allowance for fiscal year 1999 is $3,530. The formula allowance for fiscal year 2000 is $3,740.
The formula allowance for fiscal year 2001 and subsequent fiscal years is $3,964. The formula
allowance for fiscal year 2002 is $4,050. The formula allowance for fiscal year 2003 and later is $4,175.
(b) Each district must reserve five percent of the formula allowance times the adjusted marginal cost pupil units for pupil transportation services. If a school board determines that it has excess funds in its transportation reserve, then the board may adopt a written resolution unreserving any specified portion of the general education basic revenue otherwise reserved for transportation purposes.
Sec. 16. Minnesota Statutes 2000, section 126C.10, subdivision 3, is amended to read:
Subd. 3. [COMPENSATORY REMEDIAL EDUCATION REVENUE.] For fiscal year 2002
and later, the compensatory remedial education revenue for each building in the district equals
the formula allowance for fiscal year 2001 times the compensation remedial revenue pupil
units computed according to section 126C.05, subdivision 3. Revenue shall be paid to the district and must be
allocated according to section 126C.15, subdivision 2.
Sec. 17. Minnesota Statutes 2000, section 126C.10, subdivision 9, is amended to read:
Subd. 9. [SUPPLEMENTAL REVENUE.] (a) A district's supplemental revenue allowance for fiscal year
1994 2002 and later fiscal years equals the district's supplemental revenue allowance for
fiscal year 1993 divided by the district's 1992-1993 resident pupil units 2001.
(b) A district's supplemental revenue allowance is reduced for fiscal year 1995 and later according to
subdivision 12.
(c) A district's supplemental revenue equals the supplemental revenue allowance, if any, times its adjusted
marginal cost pupil units for that year.
(d) A district may cancel its supplemental revenue by notifying the commissioner of education prior to
June 30, 1994. A district that is reorganizing under section 123A.35, 123A.46, or 123A.48 may cancel its
supplemental revenue by notifying the commissioner of children, families, and learning before July 1 of the year of
the reorganization. If a district cancels its supplemental revenue according to this paragraph, its
supplemental revenue allowance for fiscal year 1993 for purposes of subdivision 12 and section 124A.03,
subdivision 3b, equals zero.
[EFFECTIVE DATE.] This section is effective for revenue for fiscal year 2002.
Sec. 18. Minnesota Statutes 2000, section 126C.10, subdivision 20, is amended to read:
Subd. 20. [TRANSITION REVENUE ADJUSTMENT.] A district's transition revenue
adjustment equals the district's transition allowance times the adjusted marginal cost pupil units for the
school year.
Sec. 19. Minnesota Statutes 2000, section 126C.10, subdivision 21, is amended to read:
Subd. 21. [TRANSITION LEVY ADJUSTMENT.] A district's general education levy shall be
adjusted by an amount equal to transition levy for fiscal year 2003 and later equals the district's
transition revenue times the lesser of 1 or the ratio of its adjusted net tax capacity per adjusted marginal cost pupil
unit to $8,404.
Sec. 20. Minnesota Statutes 2000, section 126C.10, subdivision 22, is amended to read:
Subd. 22. [TRANSITION AID ADJUSTMENT.] A district's transition aid adjustment is the
difference between the transition revenue and the transition levy.
Sec. 21. Minnesota Statutes 2000, section 126C.10, subdivision 24, is amended to read:
Subd. 24. [EQUITY REVENUE.] (a) A school district qualifies for equity revenue if:
(1) the school district's adjusted marginal cost pupil unit amount of basic revenue, supplemental revenue,
transition revenue, and referendum revenue is less than the value of the school district at or immediately above the
90th 95th percentile of school districts in its equity region for those revenue
categories; and
(2) the school district's administrative offices are not located in a city of the first class on July 1, 1999.
(b) Equity revenue for a qualifying district that receives referendum revenue under section 126C.17,
subdivision 4, equals the product of (1) the district's adjusted marginal cost pupil units for that year; times (2)
the sum of (i) $10 $8, plus (ii) $30 $64, times the school district's equity index
computed under subdivision 27; times (3) the school district's small school index number under subdivision
29.
(c) Equity revenue for a qualifying district that does not receive referendum revenue under section 126C.17,
subdivision 4, equals the product of the district's adjusted marginal cost pupil units for that year times $10
must not exceed $150 times the adjusted marginal cost pupil units for that year.
[EFFECTIVE DATE.] This section is effective for revenue for fiscal year 2002 and later.
Sec. 22. Minnesota Statutes 2000, section 126C.10, subdivision 25, is amended to read:
Subd. 25. [REGIONAL STATEWIDE EQUITY GAP.] The regional statewide
equity gap equals the difference between the value of the school district at or immediately above the fifth percentile
of adjusted general revenue per adjusted marginal cost pupil unit and the value of the school district at or
immediately above the 90th 95th percentile of adjusted general revenue per adjusted marginal cost
pupil unit.
[EFFECTIVE DATE.] This section is effective for revenue for fiscal year 2002 and later.
Sec. 23. Minnesota Statutes 2000, section 126C.10, subdivision 27, is amended to read:
Subd. 27. [DISTRICT EQUITY INDEX.] A district's equity index equals the ratio of the sum of the district equity
gap amount to the regional statewide equity gap amount.
[EFFECTIVE DATE.] This section is effective for revenue for fiscal year 2002 and later.
Sec. 24. Minnesota Statutes 2000, section 126C.10, is amended by adding a subdivision to read:
Subd. 29. [SMALL SCHOOL INDEX.] The small school index for a district with 1,500 or fewer adjusted marginal cost pupil units for that school year equals one plus the product of two and the ratio of 200 to the district's adjusted marginal cost pupil units for that year. The small school index for a district with more than 1,500 adjusted marginal cost pupil units for that year equals 1.0.
[EFFECTIVE DATE.] This section is effective for revenue for fiscal year 2002 and later.
Sec. 25. Minnesota Statutes 2000, section 126C.12, subdivision 2, is amended to read:
Subd. 2. [INSTRUCTOR DEFINED DEFINITIONS.] Primary instructor (a)
"Classroom teacher" means a public employee licensed by the board of teaching who is authorized to teach
all subjects to children in any grade in kindergarten through grade 6 and whose duties are full-time regular
classroom instruction, excluding a teacher for
whom federal aids are received or for whom categorical aids are received pursuant to under
section 125A.76 or who is an itinerant teacher or provides instruction outside of the regular classroom.
Except as provided in section 122A.68, subdivision 6, instructor classroom teacher does not include
supervisory and support personnel, except school social workers as defined in section 122A.15. An
instructor A classroom teacher whose duties are less than full-time instruction must be included as an
equivalent only for the number of hours of instruction in grades kindergarten through 6 grade
3.
(b) "Class size" means the districtwide ratio at each grade level of the number of full-time students in kindergarten through grade 3 served at least 40 percent of the time in regular classrooms to the number of full-time classroom teachers in kindergarten through grade 3, determined as of October 1 of each school year.
Sec. 26. Minnesota Statutes 2000, section 126C.12, subdivision 3, is amended to read:
Subd. 3. [INSTRUCTION CONTACT TIME.] Instruction may be provided by a primary instructor,
classroom teacher or by a team of instructors classroom teachers, or by a teacher
resident supervised by a primary instructor classroom teacher. The district must maximize
instructor classroom teacher to learner average instructional contact time in the core subjects
of reading and mathematics.
Sec. 27. Minnesota Statutes 2000, section 126C.12, subdivision 4, is amended to read:
Subd. 4. [REVENUE USE.] (a) Revenue must be used according to either paragraph (b) or (c).
(b) Revenue must be used to reduce and maintain the district's instructor to learner ratios
average class size in kindergarten through grade 6 3 to a level of 1 17
to 17 1 on average in each of the respective grades. The district must prioritize the
use of the revenue to attain this level initially in kindergarten and grade 1 and then through the subsequent grades
as revenue is available.
(c) The revenue may be used to prepare and use an individualized learning plan for each learner.
(b) A district must not increase the district wide instructor-to-learner ratios districtwide class
sizes in other grades as a result of reducing instructor-to-learner ratios class sizes in
kindergarten through grade 6 3. Revenue may not be used to provide instructor preparation
time. A district may use a portion of the revenue reserved under this section to employ up to the same
number of full-time equivalent education assistants or aides as the district employed during the 1992-1993 school
year under Minnesota Statutes 1992, section 124.331, subdivision 2 through fiscal year 2002. Beginning in
fiscal year 2003, class size reduction revenue may only be reserved to employ classroom teachers contributing to
lower class sizes in kindergarten through grade 3.
Sec. 28. Minnesota Statutes 2000, section 126C.12, subdivision 5, is amended to read:
Subd. 5. [ADDITIONAL REVENUE USE.] If the board of a district determines that the district has achieved and
is maintaining the instructor-to-learner ratios class sizes specified in subdivision 4 and is using
individualized learning plans, the board may use the revenue to:
(1) reduce class size in grades 4, 5, and 6; or
(2) purchase instructional material and, services, or provide staff
development needed for reduced instructor-to-learner ratios. If additional revenue remains, the district must use the
revenue to improve program offerings, including programs provided through interactive television, throughout the
district or other general education purposes technology.
Sec. 29. Minnesota Statutes 2000, section 126C.12, is amended by adding a subdivision to read:
Subd. 6. [ANNUAL REPORT.] By December 1 of each year, districts receiving revenue under
subdivision 1 shall make available to the public a report on the amount of revenue the district has received and the
use of the revenue. This report shall be in the form and manner determined by the commissioner and shall include
the district average
class sizes in kindergarten through grade 6 as of October 1 of the current school year and the class sizes for each site serving kindergarten through grade 6 students in the district. A copy of the report shall be filed with the commissioner by December 15.
Sec. 30. Minnesota Statutes 2000, section 126C.13, subdivision 1, is amended to read:
Subdivision 1. [GENERAL EDUCATION TAX RATE.] The commissioner must 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 must
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 must be the rate that
raises $1,330,000,000 $1,361,000,000 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.
Sec. 31. Minnesota Statutes 2000, section 126C.15, subdivision 1, is amended to read:
Subdivision 1. [USE OF THE REVENUE.] The basic skills revenue under section 126C.10, subdivision 4, and the portion of the transition revenue adjustment under section 126C.10, subdivision 20, attributable to the compensatory transition allowance under section 126C.10, subdivision 19, paragraph (b), must be reserved and 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 124D.66;
(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 122A.60, 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;
(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; and
(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. 32. Minnesota Statutes 2000, section 126C.15, subdivision 2, is amended to read:
Subd. 2. [BUILDING ALLOCATION.] (a) A district must allocate its compensatory revenue to each school building in the district where the children who have generated the revenue are served.
(b) Notwithstanding paragraph (a), for fiscal years 1999, 2000, and 2001, upon approval by the
commissioner, a district may allocate up to five percent of the amount of compensatory revenue that the district
would have received under Minnesota Statutes 1996, section 124A.22, subdivision 3, for fiscal year 1998,
computed using a basic formula allowance of $3,581 during the previous fiscal year to school sites
according to a plan adopted by the school board.
(c) For the purposes of this section and section 126C.05, subdivision 3, "building" means education site as defined in section 123B.04, 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. 33. Minnesota Statutes 2000, section 126C.15, subdivision 5, is amended to read:
Subd. 5. [ANNUAL EXPENDITURE REPORT.] Each year a district that receives basic skills revenue must submit a report identifying the expenditures it incurred to meet the needs of eligible learners under subdivision 1. The report must conform to uniform financial and reporting standards established for this purpose. Using valid and reliable data and measurement criteria, the report also must determine whether increased expenditures raised student achievement levels.
Sec. 34. Minnesota Statutes 2000, section 126C.16, is amended by adding a subdivision to read:
Subd. 4. [REFERENDUM ALLOWANCE ADJUSTMENT.] Beginning in fiscal year 2003, the referendum allowance determined for a district under subdivision 3 is increased by an amount equal to the reduction in the district's referendum allowance for fiscal year 2001 under section 126C.17, subdivision 2. The increased allowance, as adjusted according to section 126C.17, subdivision 2, shall be used in computing a district's referendum revenue for all later years for which the revenue is authorized.
Sec. 35. Minnesota Statutes 2000, section 126C.17, subdivision 1, is amended to read:
Subdivision 1. [REFERENDUM ALLOWANCE.] A district's referendum revenue allowance equals the
referendum revenue authority for that year divided by its resident marginal cost pupil units for that school
year sum of the allowance under section 126C.16, subdivision 2, plus any additional allowance per resident
marginal cost pupil unit authorized under subdivision 9 for fiscal year 2002 and later.
[EFFECTIVE DATE.] This section is effective for revenue for fiscal year 2002.
Sec. 36. Minnesota Statutes 2000, section 126C.17, subdivision 2, is amended to read:
Subd. 2. [REFERENDUM ALLOWANCE LIMIT.] (a) Notwithstanding subdivision 1, a district's referendum allowance must not exceed the greater of:
(1) the district's referendum allowance for fiscal year 1994 multiplied by the inflation factor established in paragraph (b);
(2) 25 35 percent of the formula allowance; or
(3) for a newly reorganized district created after July 1, 1994, the sum of the referendum revenue authority for the reorganizing districts for the fiscal year preceding the reorganization, divided by the sum of the resident marginal cost pupil units of the reorganizing districts for the fiscal year preceding the reorganization.
(b) The operating referendum inflation factor equals the ratio of the consumer price index for urban consumers as prepared by the United States Department of Labor, for the most recently available year to the Consumer Price Index for urban consumers for 1994.
Sec. 37. Minnesota Statutes 2000, section 126C.17, subdivision 5, is amended to read:
Subd. 5. [REFERENDUM EQUALIZATION REVENUE.] (a) A district's referendum equalization revenue equals the referendum equalization allowance times the district's resident marginal cost pupil units for that year.
(b) The referendum equalization allowance equals $350 for fiscal year 2000 and $415 for fiscal
year years 2001 and 2002, $515 for fiscal year 2003, and $615 for fiscal year 2004 and
later.
(c) Referendum equalization revenue must not exceed a district's total referendum revenue for that year.
[EFFECTIVE DATE.] This section is effective for revenue for fiscal year 2003 and later.
Sec. 38. Minnesota Statutes 2000, section 126C.17, subdivision 6, is amended to read:
Subd. 6. [REFERENDUM EQUALIZATION LEVY.] (a) A district's referendum equalization levy for
a referendum levied against the referendum market value of all taxable property as defined in section 126C.01,
subdivision 3, equals the district's referendum equalization revenue times the lesser of one or the ratio of the
district's referendum market value per resident marginal cost pupil unit to $476,000.
(b) A district's referendum equalization levy for a referendum levied against the net tax capacity of all taxable
property equals the district's referendum equalization revenue times the lesser of one or the ratio of the district's
adjusted net tax capacity per resident marginal cost pupil unit to $8,404.
[EFFECTIVE DATE.] This section is effective for revenue for fiscal year 2002.
Sec. 39. Minnesota Statutes 2000, section 126C.17, subdivision 9, is amended to read:
Subd. 9. [REFERENDUM REVENUE.] (a) The revenue authorized by section 126C.10, subdivision 1, may be increased in the amount approved by the voters of the district at a referendum called for the purpose. The referendum may be called by the board or shall be called by the board upon written petition of qualified voters of the district. The referendum must be conducted one or two calendar years before the increased levy authority, if approved, first becomes payable. Only one election to approve an increase may be held in a calendar year. Unless the referendum is conducted by mail under paragraph (g), the referendum must be held on the first Tuesday after the first Monday in November. The ballot must state the maximum amount of the increased revenue per resident marginal cost pupil unit, the estimated referendum tax rate as a percentage of referendum market value in the first year it is to be levied, and that the revenue must be used to finance school operations. The ballot may state a schedule, determined by the board, of increased revenue per resident marginal cost pupil unit that differs from year to year over the number of years for which the increased revenue is authorized. If the ballot contains a schedule showing different amounts, it must also indicate the estimated referendum tax rate as a percent of referendum market value for the amount specified for the first year and for the maximum amount specified in the schedule. The ballot may state that existing referendum levy authority is expiring. In this case, the ballot may also compare the proposed levy authority to the existing expiring levy authority, and express the proposed increase as the amount, if any, over
the expiring referendum levy authority. The ballot must designate the specific number of years, not to exceed ten, for which the referendum authorization applies. The notice required under section 275.60 may be modified to read, in cases of renewing existing levies:
"BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING FOR A PROPERTY TAX INCREASE."
The ballot may contain a textual portion with the information required in this subdivision and a question stating substantially the following:
"Shall the increase in the revenue proposed by (petition to) the board of ........., School District No. .., be approved?"
If approved, an amount equal to the approved revenue per resident marginal cost pupil unit times the resident marginal cost pupil units for the school year beginning in the year after the levy is certified shall be authorized for certification for the number of years approved, if applicable, or until revoked or reduced by the voters of the district at a subsequent referendum.
(b) The board must prepare and deliver by first class mail at least 15 days but no more than 30 days before the day of the referendum to each taxpayer a notice of the referendum and the proposed revenue increase. The board need not mail more than one notice to any taxpayer. For the purpose of giving mailed notice under this subdivision, owners must be those shown to be owners on the records of the county auditor or, in any county where tax statements are mailed by the county treasurer, on the records of the county treasurer. Every property owner whose name does not appear on the records of the county auditor or the county treasurer is deemed to have waived this mailed notice unless the owner has requested in writing that the county auditor or county treasurer, as the case may be, include the name on the records for this purpose. The notice must project the anticipated amount of tax increase in annual dollars and annual percentage for typical residential homesteads, agricultural homesteads, apartments, and commercial-industrial property within the school district.
The notice for a referendum may state that an existing referendum levy is expiring and project the anticipated amount of increase over the existing referendum levy in the first year, if any, in annual dollars and annual percentage for typical residential homesteads, agricultural homesteads, apartments, and commercial-industrial property within the district.
The notice must include the following statement: "Passage of this referendum will result in an increase in your property taxes." However, in cases of renewing existing levies, the notice may include the following statement: "Passage of this referendum may result in an increase in your property taxes."
(c) A referendum on the question of revoking or reducing the increased revenue amount authorized pursuant to paragraph (a) may be called by the board and shall be called by the board upon the written petition of qualified voters of the district. A referendum to revoke or reduce the levy amount must be based upon the dollar amount, local tax rate, or amount per resident marginal cost pupil unit, that was stated to be the basis for the initial authorization. Revenue approved by the voters of the district pursuant to paragraph (a) must be received at least once before it is subject to a referendum on its revocation or reduction for subsequent years. Only one revocation or reduction referendum may be held to revoke or reduce referendum revenue for any specific year and for years thereafter.
(d) A petition authorized by paragraph (a) or (c) is effective if signed by a number of qualified voters in excess of 15 percent of the registered voters of the district on the day the petition is filed with the board. A referendum invoked by petition must be held on the date specified in paragraph (a).
(e) The approval of 50 percent plus one of those voting on the question is required to pass a referendum authorized by this subdivision.
(f) At least 15 days before the day of the referendum, the district must submit a copy of the notice required under paragraph (b) to the commissioner and to the county auditor of each county in which the district is located. Within 15 days after the results of the referendum have been certified by the board, or in the case of a recount, the certification of the results of the recount by the canvassing board, the district must notify the commissioner of the results of the referendum.
(g) Except for a referendum held under subdivision 11, any referendum under this section held on a day other
than the first Tuesday after the first Monday in November must be conducted by mail in accordance with section
204B.46. Notwithstanding paragraph (b) to the contrary, in the case of a referendum conducted by mail under this
paragraph, the notice required by paragraph (b) must be prepared and delivered by first class mail at least 20 days
before the referendum.
Sec. 40. Minnesota Statutes 2000, section 126C.17, subdivision 10, is amended to read:
Subd. 10. [SCHOOL REFERENDUM LEVY; MARKET VALUE.] Notwithstanding the provisions of
subdivision 9, A school referendum levy approved after November 1, 1992, for taxes payable in 1993 and
thereafter, must be levied against the referendum market value of all taxable property as defined in section
126C.01, subdivision 3. Any referendum levy amount subject to the requirements of this subdivision must be
certified separately to the county auditor under section 275.07.
All other provisions of subdivision 9 that do not conflict with this subdivision apply to referendum levies under
this subdivision.
[EFFECTIVE DATE.] This section is effective for revenue for fiscal year 2002.
Sec. 41. Minnesota Statutes 2000, section 126C.17, subdivision 11, is amended to read:
Subd. 11. [REFERENDUM DATE.] (a) Except for a referendum held under paragraph (b), any referendum under this section held on a day other than the first Tuesday after the first Monday in November must be conducted by mail in accordance with section 204B.46. Notwithstanding subdivision 9, paragraph (b), to the contrary, in the case of a referendum conducted by mail under this paragraph, the notice required by subdivision 9, paragraph (b), must be prepared and delivered by first-class mail at least 20 days before the referendum.
(b) In addition to the referenda allowed in subdivision 9, 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 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. 42. Minnesota Statutes 2000, section 126C.23, subdivision 5, is amended to read:
Subd. 5. [DATA REPORTING.] Each district must report to the commissioner the estimated amount of
general education and referendum initially allocated to each building under subdivision 2 and the amount of any
reallocations under subdivision 3 by January 30 of the current fiscal year, and the actual amount of general
education and
referendum revenue initially allocated to each building under subdivision 2 and the amount of any reallocations under subdivision 3 by January 30 of the next fiscal year.
Sec. 43. Minnesota Statutes 2000, section 126C.41, subdivision 3, is amended to read:
Subd. 3. [RETIREMENT LEVIES.] (1) In addition to the excess levy authorized in 1976 any district within
a city of the first class which was authorized in 1975 to make a retirement levy under Minnesota Statutes 1974,
section 275.127 and chapter 422A may levy an amount per pupil unit which is equal to the amount levied in 1975
payable 1976, under Minnesota Statutes 1974, section 275.127 and chapter 422A, divided by the number of pupil
units in the district in 1976-1977.
(2) In 1979 and each year thereafter, any district which qualified in 1976 for an extra levy under paragraph
(1) shall be allowed to levy the same amount as levied for retirement in 1978 under this clause reduced each year
by ten percent of the difference between the amount levied for retirement in 1971 under Minnesota Statutes 1971,
sections 275.127 and 422.01 to 422.54 and the amount levied for retirement in 1975 under Minnesota Statutes 1974,
section 275.127 and chapter 422A.
(3) (a) In 1991 and each year thereafter, a district to which this subdivision applies may levy an
additional amount required for contributions to the Minneapolis employees retirement fund as a result of the
maximum dollar amount limitation on state contributions to the fund imposed under section 422A.101, subdivision
3. The additional levy must not exceed the most recent amount certified by the board of the Minneapolis employees
retirement fund as the district's share of the contribution requirement in excess of the maximum state contribution
under section 422A.101, subdivision 3.
(4) (b) For taxes payable in 1994 and thereafter, special school district No. 1, Minneapolis, and
independent school district No. 625, St. Paul, may levy for the increase in the employer retirement fund
contributions, under Laws 1992, chapter 598, article 5, section 1.
(5) (c) If the employer retirement fund contributions under section 354A.12, subdivision 2a, are
increased for fiscal year 1994 or later fiscal years, special school district No. 1, Minneapolis, and independent school
district No. 625, St. Paul, may levy in payable 1994 or later an amount equal to the amount derived by applying the
net increase in the employer retirement fund contribution rate of the respective teacher retirement fund association
between fiscal year 1993 and the fiscal year beginning in the year after the levy is certified to the total covered payroll
of the applicable teacher retirement fund association. If an applicable school district levies under this paragraph,
they may not levy under paragraph (4) (b).
(6) (d) In addition to the levy authorized under paragraph (5) (c), special school
district No. 1, Minneapolis, may also levy payable in 1997 or later an amount equal to the contributions under section
423A.02, subdivision 3, and may also levy in payable 1994 or later an amount equal to the state aid contribution
under section 354A.12, subdivision 3b. Independent school district No. 625, St. Paul, may levy payable in 1997 or
later an amount equal to the supplemental contributions under section 423A.02, subdivision 3.
Sec. 44. Minnesota Statutes 2000, section 126C.43, subdivision 3, is amended to read:
Subd. 3. [TAX LEVY FOR UNPAID JUDGMENT.] A school district may levy the amounts
necessary to pay the district's obligations judgments against the school district and, if the school district
is a member of an intermediate school district, the district's proportionate share of the judgments against the
intermediate school district, under section 126C.47 123B.25 that became final after the date the
district certified its proposed levy in the previous year. With the approval of the commissioner, a district may spread
this levy over a period not to exceed three years.
Sec. 45. Minnesota Statutes 2000, section 127A.41, subdivision 5, is amended to read:
Subd. 5. [DISTRICT APPEAL OF AID REDUCTION; INSPECTION OF DISTRICT SCHOOLS AND ACCOUNTS AND RECORDS.] Public schools shall at all times be open to the inspection of the commissioner. The accounts and records of any district must be open to inspection by the state auditor, or the commissioner for the
purpose of audits conducted under this section. Each district shall keep for a minimum of three years at least the
following: (1) identification of the annual session days held, together with a record of the length of each session day,
(2) a record of each pupil's daily attendance, with entrance and withdrawal dates, and (3) identification of the
pupils transported who are reported for transportation aid to-and-from school transportation category
for each pupil as defined in section 123B.92, subdivision 1.
Sec. 46. Minnesota Statutes 2000, section 127A.50, subdivision 2, is amended to read:
Subd. 2. [APPROPRIATION AND ESTIMATED NET SAVINGS.] The amounts necessary to pay any
positive net adjustments under this section to any school district are appropriated annually from the general fund
to the commissioner of children, families, and learning. The estimated net general fund savings under this
section is $29,819,000 in fiscal year 1998, and $26,997,000 in each fiscal year thereafter.
Sec. 47. Laws 1992, chapter 499, article 7, section 31, as amended by Laws 1998, chapter 398, article 1, section 39, Laws 1999, chapter 241, article 1, section 54, and Laws 2000, chapter 489, article 2, section 28, 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, 2004; Laws 1991, chapter 265, article 7, section
35, is repealed.
Sec. 48. Laws 2000, chapter 489, article 2, section 34, is amended to read:
Sec. 34. [TRAINING AND EXPERIENCE REPLACEMENT REVENUE.]
(a) For fiscal year 2001 only, a school district's training and experience replacement revenue equals the sum of the following:
(1) the ratio of the amount of training and experience revenue the district would have received for fiscal year 1999 calculated using the training and experience index in Minnesota Statutes 1996, section 124A.04, to its resident pupil units for that year, times the district's adjusted marginal cost pupil units for fiscal year 2001, times .06; plus
(2) the difference between .47 times the training and experience revenue the district would have received for fiscal year 1999, calculated using the training and experience index in Minnesota Statutes 1996, section 124A.04, and the amount calculated in Minnesota Statutes, section 126C.10, subdivision 5, for fiscal year 2001, but not less than zero.
(b) This revenue is paid entirely in fiscal year 2001 based on estimated data.
(c) By January 31, 2002, the department of children, families, and learning shall recalculate the revenue for each district using actual data, and shall adjust the general education aid paid to school districts for fiscal year 2002 by the amount of the difference between the estimated revenue and the actual revenue.
Sec. 49. Laws 2000, chapter 489, article 2, section 36, is amended to read:
Sec. 36. [FISCAL YEARS 2003 2004 TO 2007 2008 AIRPORT RUNWAY
IMPACT PUPIL UNIT AID; RICHFIELD.]
Subdivision 1. [AIRPORT IMPACT ZONE PUPIL UNITS, DEFINITION.] For the purposes of this section, "airport impact zone pupil units" means the number of pupil units, according to Minnesota Statutes 1999 Supplement, section 126C.05, subdivision 1, in school year 1998-1999 that were attributable to the airport impact zone, as defined in Laws 1999, chapter 243, article 16, section 35, subdivision 1.
Subd. 2. [FISCAL YEAR 2003 2004.] For fiscal year 2003 2004 only,
independent school district No. 280, Richfield, is eligible for declining pupil unit aid equal to the product of 70
percent of the airport impact zone pupil units times the general education formula allowance for fiscal year
2003 2004.
Subd. 3. [FISCAL YEAR 2004 2005.] For fiscal year 2004 2005 only,
independent school district No. 280, Richfield, is eligible for declining pupil unit aid equal to the product of 70
percent of the airport impact zone pupil units times the general education formula allowance for fiscal year
2004 2005.
Subd. 4. [FISCAL YEAR 2005 2006.] For fiscal year 2005 2006 only,
independent school district No. 280, Richfield, is eligible for declining pupil unit aid equal to the product of 52.5
percent of the airport impact zone pupil units times the general education formula allowance for fiscal year
2005 2006.
Subd. 5. [FISCAL YEAR 2006 2007.] For fiscal year 2006 2007 only,
independent school district No. 280, Richfield, is eligible for declining pupil unit aid equal to the product of 35
percent of the airport impact zone pupil units times the general education formula allowance for fiscal year
2006 2007.
Subd. 6. [FISCAL YEAR 2007 2008.] For fiscal year 2007 2008 only,
independent school district No. 280, Richfield, is eligible for declining pupil unit aid equal to the product of 17.5
percent of the airport impact zone pupil units times the general education formula allowance for fiscal year
2007 2008.
Sec. 50. Laws 2000, chapter 489, article 2, section 37, subdivision 3, is amended to read:
Subd. 3. [FISCAL YEAR 2001 CALCULATION.] (a) For fiscal year 2001, a school district's sparsity correction revenue equals .5 times the difference between sparsity revenue in fiscal year 2001 calculated according to Laws 1999, chapter 241, article 1, sections 18 and 19, and the sparsity revenue the district would have received for fiscal year 2001 had these sections of law not been approved.
(b) This revenue is paid entirely in fiscal year 2001 based on estimated data.
(c) By January 31, 2002, the department of children, families, and learning shall recalculate the revenue for each district using actual data, and shall adjust the general education aid paid to school districts for fiscal year 2002 by the amount of the difference between the estimated revenue and the actual revenue.
Sec. 51. Laws 2000, chapter 489, article 2, section 39, subdivision 2, is amended to read:
Subd. 2. [SPARSITY CORRECTION REVENUE.] For sparsity correction revenue:
$1,030,000 . . . . . 2000
$515,000 . . . . . 2001
The 2000 appropriation is available until June 30, 2001.
[EFFECTIVE DATE.] This section is effective the day following final enactment.
Sec. 52. Laws 2000, chapter 489, article 3, section 25, subdivision 5, is amended to read:
Subd. 5. [SPECIAL EDUCATION CROSS-SUBSIDY REVENUE.] For special education cross-subsidy revenue:
$7,898,000 . . . . . 2000
$18,396,000 . . . . . 2001
The 2000 appropriation is available until June 30, 2001.
[EFFECTIVE DATE.] This section is effective the day following final enactment.
Sec. 53. [LEGISLATIVE TASK FORCE ON REDUCING THE COMPLEXITY OF KINDERGARTEN THROUGH GRADE 12 EDUCATION FUNDING STATUTES AND RULES.]
(a) The legislative task force on reducing the complexity of kindergarten through grade 12 education funding consists of 13 members. The speaker of the house of representatives shall appoint four members from the house, two of whom must be from the minority caucus. The subcommittee on committees of the senate committee on rules and administration shall appoint four members from the senate, two of whom must be from the minority caucus. The task force membership shall also consist of the following persons or their designees:
(1) the commissioner of the department of children, families, and learning;
(2) the executive director of the Minnesota school boards association and the executive director of the Minnesota association of school administrators;
(3) the executive director of the Minnesota association of school business officials; and
(4) the parent of a school-age child appointed by the governor.
(b) The task force shall study and make recommendations to the legislature by January 15, 2002, on any changes in statutes and rules needed to simplify, clarify, and reduce the complexity of the kindergarten through grade 12 education funding system. The task force shall consider, at least, the following in making its recommendations for changes in statutes and rules:
(1) the extent to which funding system provisions are readily readable and understandable;
(2) the extent to which the funding system can be simplified;
(3) the extent to which regional variations in cost and differentials in market-based wages affect school district costs;
(4) how to define compensatory revenue to most effectively meet the academic needs of poor performing students;
(5) the extent to which references to other sections or provisions of law or rule are minimized;
(6) the extent to which definitional provisions are incorporated in the text of the statutes or rules; and
(7) the extent to which the legislative process of funding kindergarten through grade 12 education can be improved to provide school districts with timely, accurate information concerning legislative decisions.
(c) The task force shall seek the input of various kindergarten through grade 12 education stakeholders as well as the general public in making its recommendations. The task force may call upon the staff of the legislature and the department of children, families, and learning to assist with its duties. Upon submission of its recommendations, the task force expires.
Sec. 54. [DECLINING PUPIL UNIT AID; YELLOW MEDICINE EAST.]
Subdivision 1. [FISCAL YEAR 2002.] For fiscal year 2002, independent school district No. 2190, Yellow Medicine East, is eligible for tornado impact declining enrollment aid equal to $156,000.
Subd. 2. [FISCAL YEAR 2003.] For fiscal year 2003, independent school district No. 2190, Yellow Medicine East, is eligible for tornado impact declining enrollment aid equal to 75 percent of the fiscal year 2002 appropriation in subdivision 1.
Subd. 3. [FISCAL YEAR 2004.] For fiscal year 2004, independent school district No. 2190, Yellow Medicine East, is eligible for tornado impact declining enrollment aid equal to 50 percent of the fiscal year 2002 appropriation in subdivision 1.
Subd. 4. [FISCAL YEAR 2005.] For fiscal year 2005, independent school district No. 2190, Yellow Medicine East, is eligible for tornado impact declining enrollment aid equal to 25 percent of the fiscal year 2002 appropriation in subdivision 1.
Sec. 55. [SUPPLEMENTAL REVENUE; ANOKA.]
For fiscal year 2002 and later, the supplemental revenue for independent school district No. 11, Anoka, is increased by $1,000,000.
Sec. 56. [DIRECTION TO COMMISSIONER.]
(a) The commissioner of children, families, and learning is directed to collect the necessary data from each school district to create a cost-based pupil transportation formula based on the following ridership categories:
(1) regular;
(2) excess;
(3) disabled;
(4) nonpublic;
(5) desegregation;
(6) noon kindergarten;
(7) learning year summer;
(8) between schools;
(9) late activity;
(10) summer school;
(11) open enrollment;
(12) student activity trips; and
(13) enrollment options.
(b) The commissioner must recommend a cost-based pupil transportation formula and report to the legislative committees responsible for kindergarten through grade 12 education finance by February 15, 2002.
(c) The commissioner is directed to identify for each district all transportation revenues.
Sec. 57. [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. [GENERAL AND SUPPLEMENTAL EDUCATION AID.] For general and supplemental education aid:
$3,369,140,000 . . . . . 2002
$3,465,366,000 . . . . . 2003
The 2002 appropriation includes $318,932,000 for 2001 and $3,050,208,000 for 2002.
The 2003 appropriation includes $328,926,000 for 2002 and $3,136,440,000 for 2003.
Subd. 3. [TRANSPORTATION AID FOR ENROLLMENT OPTIONS.] For transportation of pupils attending post-secondary institutions according to Minnesota Statutes, section 124D.09, or for transportation of pupils attending nonresident districts according to Minnesota Statutes, section 124D.03:
$70,000 . . . . . 2002
$80,000 . . . . . 2003
Any balance in the first year does not cancel but is available in the second year.
Subd. 4. [ABATEMENT AID.] For abatement aid according to Minnesota Statutes, section 127A.49:
$7,098,000 . . . . . 2002
$7,692,000 . . . . . 2003
The 2002 appropriation includes $640,000 for 2001 and $6,458,000 for 2002.
The 2003 appropriation includes $717,000 for 2002 and $6,975,000 for 2003.
Subd. 5. [NONPUBLIC PUPIL AID.] For nonpublic pupil education aid according to Minnesota Statutes, sections 123.79 and 123B.40 to 123B.43:
$13,881,000 . . . . . 2002
$14,526,000 . . . . . 2003
The 2002 appropriation includes $1,330,000 for 2001 and $12,551,000 for 2002.
The 2003 appropriation includes $1,395,000 for 2002 and $13,131,000 for 2003.
Subd. 6. [NONPUBLIC PUPIL TRANSPORTATION.] For nonpublic pupil transportation aid under Minnesota Statutes, section 123B.92, subdivision 9:
$20,411,000 . . . . . 2002
$22,276,000 . . . . . 2003
The 2002 appropriation includes $2,000,000 for 2001 and $18,411,000 for 2002.
The 2003 appropriation includes $2,045,000 for 2002 and $20,231,000 for 2003.
Subd. 7. [CONSOLIDATION TRANSITION AID.] For districts consolidating under Minnesota Statutes, section 123A.485:
$675,000 . . . . . 2002
$669,000 . . . . . 2003
The 2002 appropriation includes $44,000 for 2001 and $631,000 for 2002.
The 2003 appropriation includes $70,000 for 2002 and $599,000 for 2003.
Any balance in the first year does not cancel but is available in the second year.
Subd. 8. [TORNADO IMPACT; YELLOW MEDICINE EAST.] For a grant to independent school district No. 2190, Yellow Medicine East, for tornado impact declining enrollment aid:
$156,000 . . . . . 2002
$117,000 . . . . . 2003
Subd. 9. [TORNADO IMPACT; ST. PETER.] For a grant to independent school district No. 508, St. Peter, for tornado impact declining enrollment aid:
$455,000 . . . . . 2002
This grant is in lieu of funds authorized under Laws 1999, chapter 241, article 4, section 22.
Sec. 58. [REVISOR INSTRUCTION.]
In the next and subsequent editions of Minnesota Statutes, the revisor shall change all references to "compensatory revenue" to "remedial revenue."
Sec. 59. [REPEALER.]
(a) Minnesota Statutes 2000, sections 123B.05; 124D.07; 126C.01, subdivision 10; 126C.16, subdivision 2; 126C.18; 126C.22; 126C.30; 126C.31; 126C.32; 126C.33; 126C.34; 126C.35; 126C.36; and 127A.44, are repealed.
(b) Minnesota Statutes 2000, sections 126C.10, subdivisions 12, 23, and 28; and 126C.17, subdivision 12, are repealed effective for revenue for fiscal year 2002.
(c) Minnesota Statutes 2000, sections 126C.42, subdivisions 2 and 3; and 126C.47, are repealed effective for taxes payable in 2002.
(d) Minnesota Statutes 2000, section 126C.10, subdivision 3, is repealed for revenue for fiscal year 2004 and later.
ARTICLE 2
EDUCATION EXCELLENCE
Section 1. [120B.12] [READING COMPETENCY; GRANTS.]
Subdivision 1. [LITERACY GOAL.] The legislature wants Minnesota's children to read by the end of the third grade as measured by the Minnesota comprehensive assessment and other general outcome measures.
Subd. 2. [DEFINITION.] For purposes of this section, a "district" may be a local school district, an intermediate district, or an education district.
Subd. 3. [GRANT RECIPIENTS; CRITERIA.] The commissioner may award up to three grants to assist charter schools and sites in district-operated schools in achieving children's reading competency by the end of third grade. Grant recipients must have:
(1) expertise in early literacy and the teaching of reading or mathematics;
(2) research-based evidence that the strategies recommended by the grant recipient improve student performance in reading;
(3) a measurement system for teachers to use that includes an individual student test that is reliable, easy to use, and requires minimal time; and
(4) an accountability structure for measuring the grant recipient's results.
Subd. 4. [GRANT REQUIREMENTS.] (a) Grant recipients also must meet the requirements of this subdivision.
(b) Grant recipients must collaborate with the commissioner in informing district-operated schools and charter schools about available assistance with reading competency. In awarding a grant, the commissioner may give highest priority to those sites and charter schools in greatest need of assistance based on annual yearly progress reports.
(c) A district that is a grant recipient must assist a minimum of 50 sites, at least 30 of which must have at least 25 percent enrolled students in kindergarten through grade 3 eligible for free or reduced price lunch.
(d) Grant recipients must consult with preschool programs including early childhood family education, learning readiness, Head Start, child care centers, and other programs to ensure that staff at these programs possess skills that are research-based predictors of literacy.
(e) Grant recipients must agree with a site on the reading results the site will achieve over a three-school year period and on the assistance with reading competency the grant recipient will provide. The site council or the school board if there is no site council and the teachers at the site must consent to the agreement.
(f) The agreement must include the timeline for a baseline measurement of each student, the frequency that individual student performance is measured, and the manner for reporting data to the site and the district board.
(g) The agreement also must estimate the amount of grant funds the district will provide to the site, including funds allocated for site planning and collecting student performance data, and the amount of revenue the site will contribute. The agreement must provide that if the district fails to perform according to the agreement, the commissioner will award to the site the funds remaining for the site under the agreement, which the site may use for contracting with a different reading vendor.
(h) The agreement must define the site's responsibilities. If the site does not fulfill its responsibilities, the district may discontinue its services to that site, inform the site of the reason for terminating the agreement, and indicate the funding amount expended for that site.
Subd. 5. [REPORT.] Grant recipients annually must report to the commissioner on the results achieved at each site. The report must include:
(1) demographic information about the students at the site;
(2) the service provided to the site;
(3) student performance data for fall, winter, and spring, although all sites may not have fall student performance data in the first year of the program; and
(4) the amount of grant funding expended for the site.
Subd. 6. [APPLICATION PROCESS.] The commissioner shall award one grant by July 1, 2001. The commissioner must award the remaining grants no later than October 1, 2001.
Sec. 2. Minnesota Statutes 2000, section 120B.13, subdivision 1, is amended to read:
Subdivision 1. [PROGRAM STRUCTURE; TRAINING PROGRAMS FOR TEACHERS.] (a) The advanced placement and international baccalaureate programs are well-established academic programs for mature, academically-directed high school students. These programs, in addition to providing academic rigor, offer sound curricular design, accountability, comprehensive external assessment, feedback to students and teachers, and the opportunity for high school students to compete academically on a global level. Advanced placement and international baccalaureate programs allow students to leave high school with the academic skills and self-confidence to succeed in college and beyond. The advanced placement and international baccalaureate programs help provide Minnesota students with world-class educational opportunity.
(b) Critical to schools' educational success is ongoing advanced placement/international baccalaureate-approved teacher training. A secondary teacher assigned by a district to teach an advanced placement or international baccalaureate course or other interested educator may participate in a training program offered by the college board or International Baccalaureate North America, Inc. The state may pay a portion of the tuition, room, and board costs a teacher or other interested educator incurs in participating in a training program. The commissioner shall determine application procedures and deadlines, and select teachers and other interested educators to participate in the training program. The procedures determined by the commissioner shall, to the extent possible, ensure that advanced placement and international baccalaureate courses become available in all parts of the state and that a variety of course offerings are available in school districts. This subdivision does not prevent teacher or other interested educator participation in training programs offered by the college board or International Baccalaureate North America, Inc., when tuition is paid by a source other than the state.
Sec. 3. Minnesota Statutes 2000, section 120B.30, 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 test, which shall be aligned with the state's graduation standards and administered annually to all students in the third, fifth, and eighth grades. All elementary and secondary students who take a statewide math test designed for students in grade 3, 4, 5, 6, 7, or 8 are prohibited from using a calculator while taking such a test. The commissioner shall:
(1) ensure that all multiple choice and true/false test items contained in a statewide test have a single correct answer;
(2) include in test items measuring a student's reading comprehension, a variety of print sources in addition to mass media, including fiction or nonfiction literature;
(3) ensure that all statewide tests administered to elementary and secondary students measure students' academic knowledge and not students' values, attitudes, and beliefs; and
(4) establish one or more months during which schools shall administer the tests to students each school year. Only Minnesota basic skills tests in reading, mathematics, and writing shall fulfill students' basic skills testing requirements for a passing state notation. The passing scores of the state tests in reading and mathematics are the equivalent of:
(1) (i) 70 percent correct for students entering grade 9 in 1996; and
(2) (ii) 75 percent correct for students entering grade 9 in 1997 and thereafter, as based on the
first uniform test administration of February 1998.
Notwithstanding Minnesota Rules, part 3501.0050, subpart 2, at the written request of a parent or guardian, and with the recommendation of the student's teacher, a district may offer the test of basic requirements in reading, math, or writing to an individual student beginning in grade 5. The student must take the same test on the same date as administered to students in eighth grade or higher. Third and fifth grade test results shall be available to districts for diagnostic purposes affecting student learning and district instruction and curriculum, and for establishing educational accountability. The commissioner must disseminate to the public the third and fifth grade test results upon receiving those results.
(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 profile 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 commissioner shall report school site and school district student academic achievement levels of the current and two immediately preceding school years. The report shall include students' unweighted mean test scores in each tested subject, the unweighted mean test scores of only those students enrolled in the school by January 1 of the previous school year, and the unweighted test scores of all students except those students receiving limited English proficiency instruction. The report also shall record separately, in proximity to the reported performance levels, 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 shall include the following components in the statewide public reporting system:
(1) uniform statewide testing of all third, fifth, eighth, and post-eighth grade students that provides exemptions, only with parent or guardian approval, for those very few students for whom the student's individual education plan team under sections 125A.05 and 125A.06, determines that the student is incapable of taking a statewide test, or for a limited English proficiency student under section 124D.59, 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, including average daily attendance, high school graduation rates, and high school drop-out rates by age and grade level;
(3) students' scores on the American College Test; and
(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.
(e) Districts must report exemptions under paragraph (d), clause (1), to the commissioner consistent with a format provided by the commissioner.
(f) The commissioner shall make a student's test results, including the student's individual test, on all statewide tests available to the student's school district and the student's parent or guardian.
[EFFECTIVE DATE.] This section is effective the day following final enactment.
Sec. 4. [120B.32] [SCHOOL DISTRICT SYSTEM ACCOUNTABILITY AND EDUCATIONAL IMPROVEMENT PLAN.]
Subdivision 1. [QUALIFYING PLAN.] A district may develop a system accountability and educational improvement plan. The plan must establish comprehensive measures of school district, school site, teacher, and individual student performance consistent with subdivisions 2 to 5.
Subd. 2. [DISTRICT ACCOUNTABILITY.] A school board must approve a system accountability and educational improvement plan. The plan must indicate the data and measures needed for improving educational performance within the district, including baseline data, performance goals, and benchmarks accompanied by specific dates for meeting those benchmarks. A district's performance goals must include student achievement goals and may include other performance goals such as improved school attendance, student discipline, school safety, or parent involvement, or enhancing the knowledge and skills of school staff. The plan also must describe the methods for developing, reviewing, and implementing means to improve educational performance at each school site located within the district.
Subd. 3. [SCHOOL SITE ACCOUNTABILITY.] Each school site must develop a board-approved accountability and educational improvement plan that is aligned with the performance goals contained in the school district accountability and educational improvement plan. While a site plan must be consistent with the district accountability plan, it may establish performance goals and benchmarks that meet or exceed those of the district.
Subd. 4. [TEACHER ACCOUNTABILITY.] A district's accountability and educational improvement plan must identify the district's plan to assess teacher performance. The plan must include clearly defined, research-based teacher professional development standards that permit objective assessment, including classroom observation, consistent with district goals for instruction. The exclusive bargaining representative of the teachers and the school board must agree to the plan. The plan may include:
(1) teacher professional development standards that emphasize content;
(2) staff development opportunities for teachers to attain teacher professional development standards; or
(3) standards and procedures for assessing teachers' professional practice.
The teacher professional development standards must be sufficiently rigorous to effect meaningful professional development and improvement.
Subd. 5. [STUDENT ACCOUNTABILITY.] A district's system accountability and educational improvement plan must include comprehensive measures of student performance and a list of assessment tools the district will use to determine student performance.
[EFFECTIVE DATE.] This section is effective the day following final enactment.
Sec. 5. [120B.33] [ALTERNATIVE TEACHER COMPENSATION; ACCOUNTABILITY AND EDUCATIONAL IMPROVEMENT.]
Subdivision 1. [RESTRUCTURED SYSTEM ESTABLISHED.] A restructured teacher compensation system is established to provide incentives for teachers to continuously improve their knowledge and skills, for school districts to successfully recruit and retain highly qualified teachers, and to support teachers' roles in improving students' educational achievement.
Subd. 2. [TEACHER PROFESSIONAL PAY LADDER.] (a) In order to qualify for funding under
this section, all of a district's eligible probationary teachers must be compensated according to the teacher
professional pay ladder schedule instead of the existing step and lane salary schedule. The professional pay ladder
is as described in this section. A district must include in a teacher professional pay ladder schedule the conditions
needed for a teacher
to advance to each subsequent progression. The schedule and conditions must be developed in collaboration with the exclusive bargaining representative of the teachers and approved by the school board. The restructured teacher compensation system must accurately and adequately reflect teachers' level of content knowledge and general pedagogy, include professional standards of best practices, and promote professional growth and expertise. The professional pay ladder must contain an evaluation mechanism at each subsequent progression that is aligned with teacher accountability provisions in section 120B.32, subdivision 4.
(b) The restructured teacher compensation system may provide compensation increases to teachers who attain additional relevant knowledge and skills.
(c) All teachers with fewer than three years of teaching experience who are newly hired in a district that implements a professional pay ladder must be placed on the professional pay ladder.
Subd. 3. [ADDITIONAL DAYS FOR ELIGIBLE PROBATIONARY TEACHER INDUCTION AND MENTORING.] (a) To be eligible to implement a restructured teacher compensation system, participating teachers, which must include eligible probationary teachers, and school districts must agree to increase by at least ten days per school year the number of days devoted to staff development activities. The ten additional days must be:
(1) the equivalent in hours of ten school days, consistent with section 120A.41; and
(2) calculated in terms of the number of days that teachers with continuing contract or tenure rights must work.
Teachers and school districts must use the additional days for establishing and implementing a new teacher induction and mentoring program that provides continuous learning opportunities, ongoing orientation, and sustained teacher support. Teachers and school districts may schedule some additional days during the school year.
(b) Teachers and school districts are encouraged to use the resources of existing educational institutions and organizations to establish and implement the program.
(c) Teachers and school districts may extend the work year of nonparticipating teachers in order to provide induction and mentoring activities for peer review and assessment, and for professional development that aligns with the district's accountability system if the exclusive bargaining representative of the teachers and the school board agree to the terms and conditions under which to extend the work year of nonparticipating teachers providing the mentoring.
[EFFECTIVE DATE.] This section is effective the day following final enactment.
Sec. 6. [120B.34] [ALTERNATIVE COMPENSATION AID.]
A school district that meets the conditions of section 120B.33 is eligible for alternative compensation aid. Alternative compensation aid for a qualifying school district equals $2,000 times the number of eligible probationary teachers teaching in the school district during the current school year plus $500 times the number of nonprobationary teachers providing induction and mentoring activities for peer review and assessment during the current school year. For purposes of this section, the number of eligible probationary teachers includes any nontenured licensed teacher or licensed teacher without a continuing contract who is working at least 60 percent of a full-time teacher's hours. This aid is available to a school district only after the school board and the exclusive bargaining representative of the teachers sign and submit to the commissioner of the department of children, families, and learning a written statement that they have developed an alternative teacher compensation proposal based on the system accountability and educational improvement plan under section 120B.32. The aid received under this section must be used for activities under section 120B.33, subdivision 3.
[EFFECTIVE DATE.] This section is effective July 1, 2002.
Sec. 7. Minnesota Statutes 2000, section 120B.35, is amended to read:
120B.35 [STUDENT ACADEMIC ACHIEVEMENT LEVELS.]
Subdivision 1. [VALUE ADDED ASSESSMENT.] (a) "Value added assessment" is the basis for defining adequate yearly progress and for determining student achievement levels and has the components described in paragraphs (b), (c), and (d).
(b) A value added assessment is a statistical system for assessing educational outcomes that relies on measures of student learning to estimate teacher, school, and school district statistical distributions. The system uses available and appropriate data as input to explain differences in prior student attainment so that the impact of the teacher, school, and school district on a student's educational progress is estimated on a constant student attainment basis. The impact that a teacher, school, or school district has on a student's progress, or lack of progress, in making educational advancements or acquiring learning is the "effect" of the teacher, school, or school district on a student's educational progress.
(c) The system includes mixed model methodologies that provide linear unbiased prediction for the effect of the teacher, school, and school district on the student's educational progress. The system adequately provides these estimates for classrooms where a single teacher teaches multiple subjects to the same group of students, for team teaching arrangements, and for other teaching circumstances.
(d) In order to minimize ceiling and floor effects, the metrics used to measure student learning are linear scales that cover the entire range of subjects contained in a school's academic curriculum. A strong relationship exists between the metrics and the academic curriculum for the applicable grade level and subject.
Subd. 2. [STUDENT ACHIEVEMENT LEVELS.] (a) Consistent with subdivision 1, each
school year, a school district must determine if the student achievement levels at each school site meet state and local
expectations. If student achievement levels at a school site do not meet state and local expectations for two out of
three consecutive school years, beginning with the 2000-2001 school year, the district must work with the school
site to adopt a plan to raise student achievement levels to meet state and local expectations. The legislature will
determine state expectations after receiving a recommendation from the commissioner of children, families, and
learning.
(b) The department, at a district's request, must assist the district and the school site in developing a plan to improve student achievement. The plan must include parental involvement components.
[EFFECTIVE DATE.] This section is effective for the 2001-2002 school year and later.
Sec. 8. Minnesota Statutes 2000, section 121A.11, is amended by adding a subdivision to read:
Subd. 3. [PLEDGE OF ALLEGIANCE.] (a) All public and charter school students shall recite the pledge of allegiance to the flag of the United States of America one or more times each week. The recitation shall be conducted:
(1) by each individual classroom teacher or the teacher's surrogate; or
(2) over a school intercom system by a person designated by the school principal or other person having administrative control over the school.
A local school board or a charter school board of directors annually, by majority vote, may waive this requirement.
(b) Any student or teacher who objects to reciting the pledge must be excused from participating without penalty.
(c) A local school board or a charter school board of directors that waives the requirement to recite the pledge of allegiance under paragraph (a) may adopt a district or school policy regarding the reciting of the pledge of allegiance.
[EFFECTIVE DATE.] This section is effective the day following final enactment.
Sec. 9. Minnesota Statutes 2000, section 121A.11, is amended by adding a subdivision to read:
Subd. 4. [INSTRUCTION.] Unless this requirement is waived annually by a majority vote of the school board, a school district must instruct students in the proper etiquette toward, correct display of, and respect for the flag, and in patriotic exercises. The instruction must be part of the district's fifth grade social studies curriculum.
[EFFECTIVE DATE.] This section is effective the day following final enactment. Each school district must begin the instruction required under this section no later than the 2002-2003 school year.
Sec. 10. Minnesota Statutes 2000, section 121A.45, subdivision 2, is amended to read:
Subd. 2. [GROUNDS FOR DISMISSAL.] A pupil may be dismissed on any of the following grounds:
(a) willful violation of any reasonable school board regulation. Such regulation must be clear and definite to provide notice to pupils that they must conform their conduct to its requirements;
(b) willful conduct that materially and substantially significantly disrupts the rights of others to
an education, or the ability of school personnel to perform their duties, or school sponsored extracurricular
activities; or
(c) willful conduct that endangers the pupil or other pupils, or surrounding persons, including school district employees, or property of the school.
Sec. 11. Minnesota Statutes 2000, section 121A.45, is amended by adding a subdivision to read:
Subd. 3. [PARENT NOTIFICATION AND MEETING.] If a pupil's total days of removal from school exceeds ten cumulative days in a school year, the school district shall make reasonable attempts to convene a meeting with the pupil and the pupil's parent or guardian prior to subsequently removing the pupil from school. The purpose of this meeting is to attempt to determine the pupil's need for assessment or other services.
Sec. 12. Minnesota Statutes 2000, section 121A.582, is amended to read:
121A.582 [STUDENT DISCIPLINE; REASONABLE FORCE.]
Subdivision 1. [REASONABLE FORCE STANDARD.] (a) A teacher or school principal, in exercising the person's lawful authority, may use reasonable force when it is necessary under the circumstances to correct or restrain a student or prevent bodily harm or death to another.
(b) A school employee, school bus driver, or other agent of a district, in exercising the person's lawful authority, may use reasonable force when it is necessary under the circumstances to restrain a student or prevent bodily harm or death to another.
(c) Paragraphs (a) and (b) do not authorize conduct prohibited under sections 121A.58 and 121A.67.
Subd. 2. [CIVIL LIABILITY.] (a) A teacher or school principal who, in the exercise of the person's lawful authority, uses reasonable force under the standard in subdivision 1, paragraph (a), has a defense against a civil action for damages under section 123B.25.
(b) A school employee, bus driver, or other agent of a district who, in the exercise of the person's lawful authority, uses reasonable force under the standard in subdivision 1, paragraph (b), has a defense against a civil action for damages under section 123B.25.
Subd. 3. [CRIMINAL PROSECUTION.] (a) A teacher or school principal who, in the exercise of the person's lawful authority, uses reasonable force under the standard in subdivision 1, paragraph (a), has a defense against a criminal prosecution under section 609.06, subdivision 1.
(b) A school employee, bus driver, or other agent of a district who, in the exercise of the person's lawful authority, uses reasonable force under the standard in subdivision 1, paragraph (b), has a defense against a criminal prosecution under section 609.06, subdivision 1.
Subd. 4. [SUPPLEMENTARY RIGHTS AND DEFENSES.] Any right or defense in this section is supplementary to those specified in section 121A.58, 121A.67, 123B.25, or 609.06, subdivision 1.
[EFFECTIVE DATE.] This section is effective the day following final enactment.
Sec. 13. Minnesota Statutes 2000, section 121A.61, subdivision 2, is amended to read:
Subd. 2. [GROUNDS FOR REMOVAL FROM CLASS.] The policy must establish the various grounds for which
a student may be removed from a class in the district for a period of time pursuant to under the
procedures specified in the policy. The policy must include a procedure for notifying and meeting with a
student's parent or guardian to discuss the problem that is causing the student to be removed from class after the
student has been removed from class more than ten times in one school year. The grounds in the policy must
include at least the following provisions as well as other grounds determined appropriate by the board:
(a) willful conduct which materially and substantially that significantly disrupts the rights of
others to an education, including conduct that interferes with a teacher's ability to teach or communicate
effectively with students in a class or with the ability of other students to learn;
(b) willful conduct which that endangers surrounding persons, including school district
employees, the student or other students, or the property of the school; and
(c) willful violation of any rule of conduct specified in the discipline policy adopted by the board.
Sec. 14. Minnesota Statutes 2000, section 122A.06, is amended by adding a subdivision to read:
Subd. 4. [COMPREHENSIVE, SCIENTIFICALLY BASED READING INSTRUCTION.] "Comprehensive, scientifically based reading instruction" includes instruction and practice in phonemic awareness, phonics and other word-recognition skills, and guided oral reading for beginning readers, as well as extensive silent reading, vocabulary instruction, instruction in comprehension, and instruction that fosters understanding and higher-order thinking for readers of all ages and proficiency levels.
Sec. 15. Minnesota Statutes 2000, section 122A.09, subdivision 4, is amended to read:
Subd. 4. [LICENSE AND RULES.] (a) The board must adopt rules to license public school teachers and interns subject to chapter 14.
(b) The board must adopt rules requiring a person to successfully complete a skills examination in reading, writing, and mathematics as a requirement for initial teacher licensure. Such rules must require college and universities offering a board approved teacher preparation program to provide remedial assistance to persons who did not achieve a qualifying score on the skills examination, including those for whom English is a second language.
(c) The board must adopt rules to approve teacher preparation programs. The board, upon the request of a post-secondary student preparing for teacher licensure or a licensed graduate of a teacher preparation program, shall assist in resolving a dispute between the person and a post-secondary institution providing a teacher preparation program when the dispute involves an institution's recommendation for licensure affecting the person or the person's credentials. At the board's discretion, assistance may include the application of chapter 14.
(d) The board must provide the leadership and shall adopt rules for the redesign of teacher education programs to implement a research based, results-oriented curriculum that focuses on the skills teachers need in order to be effective. The board shall implement new systems of teacher preparation program evaluation to assure program effectiveness based on proficiency of graduates in demonstrating attainment of program outcomes.
(e) The board must adopt rules requiring successful completion of an examination of general pedagogical knowledge and examinations of licensure-specific teaching skills. The rules shall be effective on the dates determined by the board, but not later than September 1, 2001.
(f) The board must adopt rules requiring teacher educators to work directly with elementary or secondary school teachers in elementary or secondary schools to obtain periodic exposure to the elementary or secondary teaching environment.
(g) The board must grant licenses to interns and to candidates for initial licenses.
(h) The board must design and implement an assessment system which requires a candidate for an initial license and first continuing license to demonstrate the abilities necessary to perform selected, representative teaching tasks at appropriate levels.
(i) The board must receive recommendations from local committees as established by the board for the renewal of teaching licenses.
(j) The board must grant life licenses to those who qualify according to requirements established by the board, and suspend or revoke licenses pursuant to sections 122A.20 and 214.10. The board must not establish any expiration date for application for life licenses.
(k) The board must adopt rules that require all licensed teachers who are renewing their continuing license to
include in their renewal requirements further preparation in the areas of using positive behavior interventions and
in accommodating, modifying, and adapting curricula, materials, and strategies to appropriately meet the needs of
individual students and ensure adequate progress toward the state's graduation rule. The rules adopted under
this paragraph apply to teachers who renew their licenses in year 2001 and later.
(l) In adopting rules to license public school teachers who provide health-related services for disabled children, the board shall adopt rules consistent with license or registration requirements of the commissioner of health and the health-related boards who license personnel who perform similar services outside of the school.
(m) The board must adopt rules that require all licensed teachers who are renewing their continuing license to include in their renewal requirements further reading preparation, consistent with section 122A.06, subdivision 4. The rules do not take effect until they are approved by law.
[EFFECTIVE DATE.] This section is effective for teachers who renew their licenses in year 2004 and later.
Sec. 16. Minnesota Statutes 2000, section 122A.18, subdivision 2, is amended to read:
Subd. 2. [TEACHER AND SUPPORT PERSONNEL QUALIFICATIONS.] (a) The board of teaching must issue licenses under its jurisdiction to persons the board finds to be qualified and competent for their respective positions.
(b) The board must require a person to successfully complete an examination of skills in reading, writing, and mathematics before being granted an initial teaching license to provide direct instruction to pupils in prekindergarten, elementary, secondary, or special education programs. The board must require colleges and universities offering a board approved teacher preparation program to provide remedial assistance that includes a formal diagnostic component to persons enrolled in their institution who did not achieve a qualifying score on the skills examination, including those for whom English is a second language. The colleges and universities must provide assistance in the specific academic areas of deficiency in which the person did not achieve a qualifying score. School districts must provide similar, appropriate, and timely remedial assistance that includes a formal diagnostic component and mentoring to those persons employed by the district who completed their teacher education program outside the state of Minnesota, received a one-year license to teach in Minnesota and did not achieve a qualifying score on the skills examination, including those persons for whom English is a second language. The board of teaching shall report annually to the education committees of the legislature on the total number of teacher candidates during the most recent school year taking the skills examination, the number who achieve a qualifying score on the examination, the number who do not achieve a qualifying score on the examination, the distribution of all candidates' scores, the number of candidates who have taken the examination at least once before, and the number of candidates who have taken the examination at least once before and achieve a qualifying score.
(c) A person who has completed an approved teacher preparation program and obtained a one-year license to teach, but has not successfully completed the skills examination, may renew the one-year license for two additional one-year periods. Each renewal of the one-year license is contingent upon the licensee:
(1) providing evidence of participating in an approved remedial assistance program provided by a school district or post-secondary institution that includes a formal diagnostic component in the specific areas in which the licensee did not obtain qualifying scores; and
(2) attempting to successfully complete the skills examination during the period of each one-year license.
(d) The board of teaching must grant continuing licenses only to those persons who have met board criteria for granting a continuing license, which includes successfully completing the skills examination in reading, writing, and mathematics.
(e) All colleges and universities approved by the board of teaching to prepare persons for teacher licensure must include in their teacher preparation programs a common core of teaching knowledge and skills to be acquired by all persons recommended for teacher licensure. This common core shall meet the standards developed by the interstate new teacher assessment and support consortium in its 1992 "model standards for beginning teacher licensing and development." Amendments to standards adopted under this paragraph are covered by chapter 14. The board of teaching shall report annually to the education committees of the legislature on the performance of teacher candidates on common core assessments of knowledge and skills under this paragraph during the most recent school year.
[EFFECTIVE DATE.] This section is effective for the 2001-2002 school year and later.
Sec. 17. Minnesota Statutes 2000, section 122A.18, subdivision 2a, is amended to read:
Subd. 2a. [READING STRATEGIES.] (a) All colleges and universities approved by the board of teaching to prepare persons for classroom teacher licensure must include in their teacher preparation programs reading best practices that enable classroom teacher licensure candidates to know how to teach reading, such as phonics or other research-based best practices.
(b) Colleges and universities offering board-approved teacher preparation programs must require instruction in the application of comprehensive, scientifically based reading instruction programs, as defined in section 122A.06, subdivision 4.
[EFFECTIVE DATE.] This section is effective for candidates for initial licensure in year 2004 and later.
Sec. 18. Minnesota Statutes 2000, section 122A.18, is amended by adding a subdivision to read:
Subd. 2b. [READING SPECIALIST.] Not later than July 1, 2002, the board of teaching must adopt rules providing for the licensure of reading teachers.
Sec. 19. Minnesota Statutes 2000, section 122A.61, subdivision 1, is amended to read:
Subdivision 1. [STAFF DEVELOPMENT REVENUE.] (a) A district is required to reserve revenue
for staff development purposes. An amount equal to at least one percent of the basic revenue under section 126C.10,
subdivision 2, must be reserved for teacher mentoring and teacher induction programs according to paragraph (d)
and an amount equal to at least two one percent of the basic revenue under section 126C.10,
subdivision 2, must be reserved for in-service education for programs under section 120B.22, subdivision
2, for staff development plans, including plans for challenging instructional activities and experiences under section
122A.60, 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.
(b) A district may annually waive the requirement to reserve their basic revenue under this section if a majority vote of the licensed teachers in the district and a majority vote of the school board agree to a resolution to waive the requirement. A district in statutory operating debt is exempt from reserving basic revenue according to this section. Districts may expend an additional amount of unreserved revenue for staff development based on their needs.
(c) With the exception of amounts reserved for new teacher mentoring and teacher induction programs, and staff development from revenues allocated directly to school sites, the board must initially allocate 50 percent of the reserved revenue to each school site in the district on a per teacher basis, which must 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 must be used to make grants to school sites for best practices methods. A grant may be used for any purpose authorized under section 120B.22, subdivision 2, 122A.60, 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 professional development team. The site professional development 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.
(d) A school district must use its reserved revenue for teacher mentoring and teacher induction programs to serve teachers who have taught five or fewer years in the school district. Teacher mentoring and induction activities include programs designed to train teachers to serve as mentors, provide ongoing peer coaching and assessment, assist in developing individual professional development plans, and offer other structured learning experiences to new teachers.
[EFFECTIVE DATE.] This section is effective for revenue for fiscal year 2002 and later.
Sec. 20. [122A.76] [BEST PRACTICES.]
"Best practices" means research-based proven practices.
Sec. 21. Minnesota Statutes 2000, section 123B.03, subdivision 3, is amended to read:
Subd. 3. [DEFINITIONS.] For purposes of this section:
(a) "School" means a school as defined in section 120A.22, subdivision 4, except a home-school, and includes a school receiving tribal contract or grant school aid under section 124D.83; school, for the purposes of this section, also means a service cooperative, a special education cooperative, or an education district under Minnesota Statutes 1997 Supplement, section 123.35, a charter school under section 124D.10, and a joint powers district under section 471.59.
(b) "School hiring authority" means the school principal or other person having general control and supervision of the school.
Sec. 22. Minnesota Statutes 2000, section 124D.10, is amended by adding a subdivision to read:
Subd. 3a. [CONFLICT OF INTEREST.] (a) A member of a charter school board of directors is prohibited from serving as a member of the board of directors or as an employee or agent of or a contractor with an entity with whom the charter school contracts, directly or indirectly, for professional services, goods, or facilities. A violation of this prohibition renders a contract voidable at the option of the commissioner. A member of a charter school board of directors who violates this prohibition shall be individually liable to the charter school for any damage caused by the violation.
(b) An individual may serve as a member of the board of directors if no conflict of interest under paragraph (a) exists.
(c) The conflict of interest provisions under this subdivision do not apply to the standard compensation paid to a teacher employed by the charter school who also serves as a member of the board of directors.
[EFFECTIVE DATE.] This section is effective for the 2001-2002 school year and following.
Sec. 23. Minnesota Statutes 2000, section 124D.10, subdivision 4, is amended to read:
Subd. 4. [FORMATION OF SCHOOL.] (a) A sponsor may authorize one or more licensed teachers under section 122A.18, subdivision 1, to operate a charter school subject to approval by the commissioner. A board must vote on charter school application for sponsorship no later than 90 days after receiving the application. After 90 days, the applicant may apply to the commissioner. If a board elects not to sponsor a charter school, the applicant may appeal the board's decision to the commissioner. If the commissioner authorizes the school, the commissioner must sponsor the school according to this section. The school must be organized and operated as a cooperative under chapter 308A or nonprofit corporation under chapter 317A and the provisions under the applicable chapter shall apply to the school except as provided in this section.
(b) Before the operators may form and operate a school, the sponsor must file an affidavit with the commissioner stating its intent to authorize a charter school. The affidavit must state the terms and conditions under which the sponsor would authorize a charter school. The commissioner must approve or disapprove the sponsor's proposed authorization within 60 days of receipt of the affidavit. Failure to obtain commissioner approval precludes a sponsor from authorizing the charter school that was the subject of the affidavit.
(c) The operators authorized to organize and operate a school, before entering into a contract or other
agreement for professional or other services, goods, or facilities, must hold an election for members of the
school's board of directors in a timely manner after the school is operating incorporate as a cooperative
under chapter 308A or as a nonprofit corporation under chapter 317A and must establish a board of directors
composed of at least five members until a timely election for members of the charter school board of directors is held
according to the school's articles and bylaws. A charter school board of directors must be composed of at least seven
members. Any staff members who are employed at the school, including teachers providing instruction under
a contract with a cooperative, and all parents of children enrolled in the school may participate in the election for
members of the school's board of directors. Licensed teachers employed at the school, including teachers
providing instruction under a contract with a cooperative, must be a majority of the members of the board of directors
before the school completes its third year of operation, unless the commissioner waives the requirement for
the school a majority of licensed teachers on the board. A provisional board may operate before
the election of the school's board of directors. Board of director meetings must comply with chapter 13D.
(d) The granting or renewal of a charter by a sponsoring entity must not be conditioned upon the bargaining unit status of the employees of the school.
(e) The state board for charter schools annually must provide timely financial management training to newly elected members of a charter school board of directors and ongoing training to other members of a charter school board of directors. Training must address ways to:
(1) proactively assess opportunities for a charter school to maximize all available revenue sources;
(2) establish and maintain complete, auditable records for the charter school;
(3) establish proper filing techniques;
(4) document formal actions of the charter school, including meetings of the charter school board of directors;
(5) properly manage and retain charter school and student records;
(6) comply with state and federal payroll recordkeeping requirements; and
(7) address other similar factors that facilitate establishing and maintaining complete records on the charter school's operations.
[EFFECTIVE DATE.] This section is effective for the 2001-2002 school year and later.
Sec. 24. Minnesota Statutes 2000, section 124D.10, is amended by adding a subdivision to read:
Subd. 6a. [AUDIT REPORT.] The charter school must submit an audit report to the commissioner by December 31 each year. The charter school, with the assistance of the auditor conducting the audit, must include with the report a copy of all charter school agreements for corporate management services. If the entity that provides the professional services to the charter school is exempt from taxation under section 501 of the Internal Revenue Code of 1986, that entity must file with the commissioner by February 15 a copy of the annual return required under section 6033 of the Internal Revenue Code of 1986. If the commissioner receives as part of the audit report a management letter indicating that a material weakness exists in the financial reporting systems of a charter school, the charter school must submit a written report to the commissioner explaining how the material weakness will be resolved. Upon the request of an individual, the charter school must make available in a timely fashion the minutes of meetings of members, the board of directors, and committees having any of the authority of the board of directors, and statements showing the financial result of all operations and transactions affecting income and surplus during the school's last annual accounting period and a balance sheet containing a summary of its assets and liabilities as of the closing date of the accounting period.
[EFFECTIVE DATE.] This section is effective for the 2001-2002 school year and later.
Sec. 25. Minnesota Statutes 2000, section 124D.10, subdivision 15, is amended to read:
Subd. 15. [REVIEW AND COMMENT.] The department must review and comment on the evaluation, by the
sponsor, of the performance of a charter school before the charter school's contract is renewed. A sponsor shall
monitor and evaluate the fiscal and student performance of the school, and may for this purpose annually assess
the school a charter school: (1) in its first, second, or third year of operation up to $10
$30 per student up to a maximum of $3,500 $10,000; and (2) in its fourth or a subsequent year
of operation up to $10 per student up to a maximum of $3,500. The information for the review and comment
shall be reported by the sponsor to the commissioner of children, families, and learning in a timely manner.
Periodically, the commissioner shall report trends or suggestions based on the evaluation of charter school contracts
to the education committees of the state legislature.
Sec. 26. Minnesota Statutes 2000, section 124D.10, is amended by adding a subdivision to read:
Subd. 23a. [EXCESSIVE LEASE COSTS; RECOVERY.] (a) This subdivision does not apply to a lease in which:
(1) the lessor and lessee are not related parties, as defined in this subdivision, as determined in writing by the commissioner prior to the lease becoming effective; or
(2) the lessor and lessee are related parties, but the lessor is a nonprofit corporation under chapter 317A or a cooperative under chapter 308A.
(b) For purposes of this subdivision:
(1) A "related party" is an affiliate or close relative of the other party in question, an affiliate of a close relative, or a close relative of an affiliate.
(2) "Affiliate" means a person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, another person.
(3) "Close relative" means an individual whose relationship by blood, marriage, or adoption to another individual is no more remote than first cousin.
(4) "Person" means an individual or entity of any kind.
(5) "Control" includes the terms "controlling," "controlled by," and "under common control with" and means the possession, direct or indirect, of the power to direct or cause the direction of the management, operations, or policies of a person, whether through the ownership of voting securities, by contract, or otherwise.
(c) A lease of real property to be used for a charter school, not excluded in paragraph (a), must contain the following statement: "This lease is subject to Minnesota Statutes, section 124D.10, subdivision 23a."
(d) A lease described in paragraph (c) does not go into effect, and no rent or other payments may be made under the lease, until the commissioner or a party to the lease has recorded with the county recorder or filed with the registrar of titles, whichever is appropriate, a document entitled "Notice of Lien," stating that the commissioner of children, families, and learning of the state of Minnesota claims a lien under this subdivision on the real property, including fixtures. The notice of lien must contain a legal description of the leased real property, be signed and acknowledged by the commissioner, and meet all other applicable requirements for recording or filing. The lessor or lessee, as agreed between them, shall pay the recording or filing fee.
(e) A lease described in paragraph (c) must contain the following clause: "The lessor under this lease hereby grants to the commissioner of children, families, and learning of the state of Minnesota a lien under Minnesota Statutes, section 124D.10, subdivision 23a, on the real property, including fixtures, that is included in this lease. This lien is evidenced by a recorded or filed notice of lien, as required by that subdivision."
(f) A lien granted under this subdivision secures the rights of the commissioner under paragraph (g).
(g) The commissioner may recover from the lessor the amount of rent or other payments made under this lease, to the extent that the rent or other payments exceed the fair market rental value of the real property, as determined by the commissioner. If the lessor is not the holder of fee title to the real property, the commissioner's right of recovery extends to the holder of fee title if the lessor and holder of fee title are related parties as defined in this subdivision.
(h) The lien created under this subdivision applies only to the equity in the real property of the lessor or other party against whom the commissioner has a right of recovery under paragraph (g). The lien created in this subdivision is subordinate to the interest of any mortgagee or other lienholder of the property, whether the mortgage or other lien is prior or subsequent to the recording or filing of the lien created in this subdivision, except that this provision does not apply to a mortgagee or other lienholder that is a related party to the lessor or other party against whom the commissioner has a right of recovery under paragraph (g).
(i) If the parties to a lease to which this subdivision applies fail to record or file the notice of lien, the commissioner may do so at any time.
(j) If, or to the extent that, the commissioner determines that the commissioner has no right of recovery under paragraph (g), the commissioner shall provide to the lessor a release or partial release of this lien. Any recording or filing fees for the release are the responsibility of the lessor.
(k) A decision or action of the commissioner under this subdivision may be appealed under chapter 14.
(l) A lien created under this section may be foreclosed in the manner provided in chapter 581, foreclosure by action, except that there is no redemption period.
[EFFECTIVE DATE.] This section is effective the day following final enactment and applies to any charter school organized as of January 1, 2001.
Sec. 27. Minnesota Statutes 2000, section 124D.11, subdivision 4, is amended to read:
Subd. 4. [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 126C.10, subdivision 13, 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 126C.40, subdivision 1, paragraphs (a) and (b). The commissioner must review and either
approve or deny a lease aid application using the following criteria:
(1) the reasonableness of the price based on current market values;
(2) the appropriateness of the space for the proposed activity;
(3) the extent to which the lease conforms to applicable state laws and rules; and
(4) the appropriateness of the proposed lease in the context of the space needs and financial circumstances of the charter school.
A charter school must not use the building lease aid it receives for custodial, maintenance service, utility, or other operating costs. The amount of building lease aid per pupil unit served for a charter school for any year shall not exceed the lesser of (a) 90 percent of the approved cost or (b) the product of the pupil units served for the current school year times $1,500.
Sec. 28. Minnesota Statutes 2000, section 124D.11, subdivision 9, is amended to read:
Subd. 9. [PAYMENT OF AIDS TO CHARTER SCHOOLS.] (a) Notwithstanding section 127A.45, subdivision 3, aid payments for the current fiscal year to a charter school not in its first year of operation shall be of an equal amount on each of the 23 payment dates. A charter school in its first year of operation shall receive, on its first payment date, ten percent of its cumulative amount guaranteed for the year and 22 payments of an equal amount thereafter the sum of which shall be 90 percent of the cumulative amount guaranteed.
(b) Notwithstanding section 127A.45, subdivision 3, and paragraph (a), 90 percent of the start-up cost aid under subdivision 8 shall be paid within 45 days after the first day of student attendance for that school year.
(c) In order to receive state aid payments under this subdivision, a charter school in its first three years of operation must submit a quarterly enrollment report to the department of children, families, and learning. The report must list each student by grade, show the student's start and end dates, if any, with the charter school, and for any student participating in a learning year program, the report must list the hours and times of learning year activities. The report must be submitted not more than two weeks after the end of the calendar quarter to the department. The department must develop a web-based reporting form for charter schools to use when submitting enrollment reports. A charter school in its fourth and subsequent year of operation must submit enrollment information to the department in the form and manner requested by the department.
Sec. 29. Minnesota Statutes 2000, section 124D.128, subdivision 1, is amended to read:
Subdivision 1. [PROGRAM ESTABLISHED.] A learning year program provides instruction throughout the year. A pupil may participate in the program and to attain or accelerate attainment of grade level requirements or graduation requirements. A learning year program may begin after the close of the regular school year in June. The program may be for students in one or more grade levels from kindergarten through grade 12.
Students may participate in the program if they reside in:
(1) a district that has been designated a learning year site under subdivision 2;
(2) a district that is a member of the same education district as a site; or
(3) a district that participates in the same area learning center program as a site.
[EFFECTIVE DATE.] This section is effective the day following final enactment.
Sec. 30. Minnesota Statutes 2000, section 124D.128, subdivision 2, is amended to read:
Subd. 2. [COMMISSIONER DESIGNATION.] (a) An area learning center designated by the state must be a site. To be designated, a district or center must demonstrate to the commissioner that it will:
(1) provide a program of instruction that permits pupils to receive instruction throughout the entire year; and
(2) maintain a record system that, for purposes of section 126C.05, permits identification of membership attributable to pupils participating in the program. The record system and identification must ensure that the program will not have the effect of increasing the total number of pupil units attributable to an individual pupil as a result of a learning year program. The record system must include the date the pupil originally enrolled in a learning year program, the pupil's grade level, the date of each grade promotion, the average daily membership generated in each grade level, the number of credits or standards earned, and the number needed to graduate.
(b) A student who has not completed a school district's graduation requirements may continue to enroll in courses the student must complete in order to graduate until the student satisfies the district's graduation requirements or the student is 21 years old, whichever comes first.
[EFFECTIVE DATE.] This section is effective the day following final enactment.
Sec. 31. Minnesota Statutes 2000, section 124D.128, subdivision 3, is amended to read:
Subd. 3. [STUDENT PLANNING.] A district must inform all pupils and their parents about the learning year
program and that participation in the program is optional. A continual learning plan must be developed
at least annually for each pupil with the participation of the pupil, parent or guardian, teachers, and other
staff; each participant must sign and date the plan. The plan must specify the learning experiences that
must occur each during the entire fiscal year and, for secondary students, for graduation. The
plan must include:
(1) the pupil's learning objectives and experiences, including courses or credits the pupil plans to complete each year and, for a secondary pupil, the graduation requirements the student must complete;
(2) the assessment measurements used to evaluate a pupil's objectives;
(3) requirements for grade level or other appropriate progression; and
(4) for pupils generating more than one average daily membership in a given grade, an indication of which objectives were unmet.
The plan may be modified to conform to district schedule changes. The district may not modify the plan if the modification would result in delaying the student's time of graduation.
Sec. 32. Minnesota Statutes 2000, section 124D.128, subdivision 6, is amended to read:
Subd. 6. [REVENUE COMPUTATION AND REPORTING.] Aid and levy revenue computations must be based
on the total number of hours of education programs for pupils in average daily membership for each fiscal year.
For purposes of section 126C.05, Average daily membership shall be computed by dividing the total
number of hours of participation for the fiscal year by the minimum number of hours for a year determined for the
appropriate grade level under section 126C.05, subdivision 15. Hours of participation that occur after
the close of the regular instructional year and before July 1 must be attributed to the following fiscal year. Thirty
hours may be used for teacher workshops, staff development, or parent-teacher conferences. As part of each pilot
program, the department and each district must report and evaluate the changes needed to adjust the dates of the
fiscal year for aid and levy computation and fiscal year reporting. For revenue computation purposes, the
learning year program shall generate revenue based on the formulas for the fiscal year in which the services are
provided. The dates a participating pupil is promoted must be reported in a timely manner to the
department.
State aid and levy revenue computation for the learning year programs begins July 1, 1988, for fiscal year
1989.
Sec. 33. Minnesota Statutes 2000, section 124D.74, subdivision 1, is amended to read:
Subdivision 1. [PROGRAM DESCRIBED.] American Indian language and culture education programs
are programs in public elementary and secondary schools, nonsectarian nonpublic, community, tribal,
or alternative schools enrolling American Indian children designed to:
(1) to support post-secondary preparation for pupils;
(2) support the academic achievement of American Indian students with identified focus to improve reading and mathematic skills;
(3) make the curriculum more relevant to the needs, interests, and cultural heritage of American Indian pupils;
(2) to (4) provide positive reinforcement of the self-image of American Indian pupils;
and
(3) to (5) develop intercultural awareness among pupils, parents, and staff; and
(6) supplement, not supplant, state and federal educational and cocurricular programs.
Program components may include: instruction in American Indian language, literature, history, and culture
development of support components for students in the areas of academic achievement, retention, and
attendance; development of support components for staff, including in-service training and technical assistance
in methods of teaching American Indian pupils; research projects, including experimentation with and evaluation
of methods of relating to American Indian pupils; provision of personal and vocational counseling to American
Indian pupils; modification of curriculum, instructional methods, and administrative procedures to meet the needs
of American Indian pupils; and establishment of cooperative liaisons with nonsectarian nonpublic, community,
tribal or alternative schools offering curricula which reflect American Indian culture supplemental
instruction in American Indian language, literature, history, and culture. Districts offering programs may make
contracts for the provision of program components by nonsectarian nonpublic, community, tribal or alternative
schools establishing cooperative liaisons with tribal programs and American Indian social service
agencies. These programs may also be provided as components of early childhood and family education
programs.
Sec. 34. Minnesota Statutes 2000, section 124D.74, subdivision 2, is amended to read:
Subd. 2. [VOLUNTARY ENROLLMENT.] Enrollment in American Indian language and culture
education programs must be voluntary. School districts and participating schools must make affirmative efforts to
encourage participation. They shall encourage parents to visit classes or come to school for a conference explaining
the nature of the program and provide visits by school staff to parents' homes to explain the nature of the program.
Sec. 35. Minnesota Statutes 2000, section 124D.74, subdivision 3, is amended to read:
Subd. 3. [ENROLLMENT OF OTHER CHILDREN; SHARED TIME ENROLLMENT.] To the extent it is
economically feasible, a district or participating school may make provision for the voluntary enrollment of
non-American Indian children in the instructional components of an American Indian language and culture
education program in order that they may acquire an understanding of the cultural heritage of the American Indian
children for whom that particular program is designed. However, in determining eligibility to participate in a
program, priority must be given to American Indian children. American Indian children and other children enrolled
in an existing nonpublic school system may be enrolled on a shared time basis in American Indian language and
culture education programs.
Sec. 36. Minnesota Statutes 2000, section 124D.74, subdivision 4, is amended to read:
Subd. 4. [LOCATION OF PROGRAMS.] American Indian language and culture education programs
must be located in facilities in which regular classes in a variety of subjects are offered on a daily basis.
Programs may operate on an extended day or extended year basis.
Sec. 37. Minnesota Statutes 2000, section 124D.74, subdivision 6, is amended to read:
Subd. 6. [NONVERBAL COURSES AND EXTRACURRICULAR ACTIVITIES.] In predominantly nonverbal
subjects, such as art, music, and physical education, American Indian children shall participate fully and on an equal
basis with their contemporaries in school classes provided for these subjects. Every school district or participating
school shall ensure to children enrolled in American Indian language and culture education programs an
equal and meaningful opportunity to participate fully with other children in all extracurricular activities. This
subdivision shall not be construed to prohibit instruction in nonverbal subjects or extracurricular activities which
relate to the cultural heritage of the American Indian children, or which are otherwise necessary to accomplish the
objectives described in sections 124D.71 to 124D.82.
Sec. 38. Minnesota Statutes 2000, section 124D.75, subdivision 6, is amended to read:
Subd. 6. [PERSONS ELIGIBLE FOR EMPLOYMENT; EXEMPTIONS.] Any person licensed under this section
shall be eligible for employment by a school board or a participating school as a teacher in an American Indian
language and culture education program in which the American Indian language or culture in which the
person is licensed is taught. A school district or participating school may prescribe only those additional
qualifications for teachers licensed under this section as are approved by the board of teaching. Any school board
or participating school upon request may be exempted from the licensure requirements of this section in the hiring
of one or more American Indian language and culture education teachers for any school year in which compliance
would, in the opinion of the commissioner, create a hardship in the securing of the teachers.
Sec. 39. Minnesota Statutes 2000, section 124D.76, is amended to read:
124D.76 [TEACHERS AIDES; COMMUNITY COORDINATORS.]
In addition to employing American Indian language and culture education teachers, each district or participating school providing programs pursuant to sections 124D.71 to 124D.82 may employ teachers' aides. Teachers' aides must not be employed for the purpose of supplanting American Indian language and culture education teachers.
Any district or participating school which conducts American Indian language and culture education
programs pursuant to sections 124D.71 to 124D.82 must employ one or more full-time or part-time community
coordinators if there are 100 or more students enrolled in the program. Community coordinators shall promote
communication understanding, and cooperation between the schools and the community and shall visit the homes
of children who are to be enrolled in an American Indian language and culture education program in order
to convey information about the program.
Sec. 40. Minnesota Statutes 2000, section 124D.78, subdivision 1, is amended to read:
Subdivision 1. [PARENT COMMITTEE.] School boards and American Indian schools must provide for the
maximum involvement of parents of children enrolled in education programs, including language and culture
education programs, programs for elementary and secondary grades, special education programs, and support
services. Accordingly, the board of a school district in which there are ten or more American Indian children
enrolled and each American Indian school must establish a parent committee. If a committee whose membership
consists of a majority of parents of American Indian children has been or is established according to federal, tribal,
or other state law, that committee may serve as the committee required by this section and is subject to, at least, the
requirements of this subdivision and subdivision 2.
The parent committee must develop its recommendations in consultation with the curriculum advisory committee required by section 120B.11, subdivision 3. This committee must afford parents the necessary information and the opportunity effectively to express their views concerning all aspects of American Indian education and the educational needs of the American Indian children enrolled in the school or program. The committee must also address the need for adult education programs for American Indian people in the community. The board or American Indian school must ensure that programs are planned, operated, and evaluated with the involvement of and in consultation with parents of children served by the programs.
Sec. 41. Minnesota Statutes 2000, section 124D.81, subdivision 1, is amended to read:
Subdivision 1. [GRANTS; PROCEDURES.] Each fiscal year the commissioner of children, families, and learning
must make grants to no fewer than six American Indian language and culture education programs. At least
three programs must be in urban areas and at least three must be on or near reservations. The board of a local
district, a participating school or a group of boards may develop a proposal for grants in support of American Indian
language and culture education programs. Proposals may provide for contracts for the provision of program
components by nonsectarian nonpublic, community, tribal, or alternative schools. The commissioner shall prescribe
the form and manner of application for grants, and no grant shall be made for a proposal not complying with the
requirements of sections 124D.71 to 124D.82. The commissioner must submit all proposals to the state advisory
task force committee on American Indian language and culture education programs for its
recommendations concerning approval, modification, or disapproval and the amounts of grants to approved
programs.
Sec. 42. Minnesota Statutes 2000, section 124D.81, subdivision 3, is amended to read:
Subd. 3. [ADDITIONAL REQUIREMENTS.] Each district receiving a grant under this section must each year
conduct a count of American Indian children in the schools of the district; test for achievement; identify the extent
of other educational needs of the children to be enrolled in the American Indian language and culture
education program; and classify the American Indian children by grade, level of educational attainment, age and
achievement. Participating schools must maintain records concerning the needs and achievements of American
Indian children served.
Sec. 43. Minnesota Statutes 2000, section 124D.81, subdivision 5, is amended to read:
Subd. 5. [RECORDS.] Participating schools and districts must keep records and afford access to them as the
commissioner finds necessary to ensure that American Indian language and culture education programs are
implemented in conformity with sections 124D.71 to 124D.82. Each school district or participating school must
keep accurate, detailed, and separate revenue and expenditure accounts for pilot American Indian language and
culture education programs funded under this section.
Sec. 44. Minnesota Statutes 2000, section 124D.81, subdivision 6, is amended to read:
Subd. 6. [MONEY FROM OTHER SOURCES.] A district or participating school providing American Indian
language and culture education programs shall be eligible to receive moneys for these programs from other
government agencies and from private sources when the moneys are available.
Sec. 45. Minnesota Statutes 2000, section 124D.81, subdivision 7, is amended to read:
Subd. 7. [EXCEPTIONS.] Nothing in sections 124D.71 to 124D.82 shall be construed as prohibiting a district
or school from implementing an American Indian language and culture education program which is not in
compliance with sections 124D.71 to 124D.82 if the proposal and plan for that program is not funded pursuant to
this section.
Sec. 46. Minnesota Statutes 2000, section 124D.86, subdivision 3, is amended to read:
Subd. 3. [INTEGRATION REVENUE.] For fiscal year 2000 and later fiscal years, integration revenue equals the following amounts:
(1) for independent school district No. 709, Duluth, $207 times the adjusted pupil units for the school
year;
(2) for independent school district No. 625, St. Paul, $446 times the adjusted pupil units for the school
year;
(3) (2) for special school district No. 1, Minneapolis, $536 times the adjusted pupil units for the
school year; and
(3) for a district not listed in clause (1) or (2) that must implement a plan under Minnesota Rules, parts 3535.0100 to 3535.0180, where the district's enrollment of protected students, as defined under Minnesota Rules, part 3535.0110, exceeds 17 percent, and that is located in the rural equity region as defined under section 126C.10, subdivision 28, the lesser of (i) the actual cost of implementing the plan during the fiscal year minus the aid received under subdivision 6, or (ii) $150 times the adjusted pupil units for the school year;
(4) for a district not listed in clause (1), (2), or (3) that is required to implement a plan according to the requirements of Minnesota Rules, parts 3535.0100 to 3535.0180, the lesser of
(i) the actual cost of implementing the plan during the fiscal year minus the aid received under subdivision 6, or
(ii) $93 times the adjusted pupil units for the school year.
Any money received by districts in clauses (1) to (3) which exceeds the amount received in fiscal year 2000 shall
be subject to the budget requirements in subdivision 1a.; and
(5) for a member district of a multidistrict integration collaborative that files a plan with the commissioner, but is not contiguous to a racially isolated district, integration revenue equals the amount defined in clause (4).
[EFFECTIVE DATE.] This section is effective for aid payable in fiscal year 2002.
Sec. 47. Minnesota Statutes 2000, section 124D.86, subdivision 6, is amended to read:
Subd. 6. [ALTERNATIVE ATTENDANCE PROGRAMS.] (a) The integration aid under subdivision 5 must be adjusted for each pupil residing in a district eligible for integration revenue under subdivision 3, clause (1), (2), or (3), and attending a nonresident district under sections 123A.05 to 123A.08, 124D.03, 124D.06, 124D.07, and 124D.08, that is not eligible for integration revenue under subdivision 3, clause (1), (2), or (3), and has implemented a plan under Minnesota Rules, parts 3535.0100 to 3535.0180, if the enrollment of the pupil in the nonresident district contributes to desegregation or integration purposes. The adjustments must be made according to this subdivision.
(b) Aid paid to a district serving nonresidents must be increased by an amount equal to the revenue per pupil unit
of the resident district under subdivision 3, clause (1), (2), or (3), minus the revenue attributable to the pupil in the
nonresident district under subdivision 3, clause clauses (4) and (5), for the time the pupil
is enrolled in the nonresident district.
[EFFECTIVE DATE.] This section is effective for aid payable in fiscal year 2000, and for taxes payable in 2002.
Sec. 48. Minnesota Statutes 2000, section 126C.05, subdivision 15, is amended to read:
Subd. 15. [LEARNING YEAR PUPIL UNITS.] (a) When a pupil is enrolled in a learning year program under section 124D.128, an area learning center under sections 123A.05 and 123A.06, an alternative program approved by the commissioner, or a contract alternative program under section 124D.68, 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 district must meet the requirements in this paragraph. The district must develop, with
for 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 consistent with section 124D.128, subdivision 3. 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 126C.15,
subdivision 2.
(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. The district must develop a continual learning plan for the pupil, consistent with section 124D.128, subdivision 3. 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 126C.15, subdivision 2.
(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. 49. Minnesota Statutes 2000, section 179A.20, is amended by adding a subdivision to read:
Subd. 2b. [STRUCTURALLY BALANCED SCHOOL DISTRICT CONTRACTS.] (a) A school board must not enter into a contract with the exclusive representative of the teachers that is not structurally balanced for a time period that corresponds to the term of the contract and the following year beginning on the July 1 following the specified end date of that contract. Failure to enter into a contract to implement a proposed contract settlement or an interest arbitration decision that violates the provisions of this subdivision shall not be an unfair labor practice under section 179A.13, subdivision 2. The provisions of section 123B.05 shall not apply to a contract or an interest arbitration decision that is not structurally balanced and that is not approved by the date specified therein.
(b) The school board must make a good-faith determination as to whether a proposed contract settlement is structurally balanced for the time period specified prior to its approval of that contract. The resolution adopted by the school board making the determination that the proposed contract is structurally balanced must include or incorporate written findings and specific calculations to support the determination. The findings and calculations must be available to members of the school board and the public at the meeting at which the resolution is adopted. A copy of the resolution with supporting findings and calculations shall also be attached to the uniform collective bargaining agreement settlement document filed with the commissioner of finance under section 179A.07, subdivision 7.
(c) An arbitrator in an interest arbitration must make a good-faith determination as to whether an interest arbitration decision for a teacher contract is structurally balanced for the time period specified and must prove that structural balance in the decision. The school board must review the arbitrator's decision to determine whether the arbitrator has correctly determined that the arbitration decision is structurally balanced. If the school board makes a good-faith determination that the arbitration decision is not structurally balanced for the time period specified, it must return the decision to the arbitrator with a detailed explanation of why the board has determined that the decision is not structurally balanced. The arbitrator must revise the decision until the school board can make a good-faith determination that the decision is structurally balanced for the time period specified. The resolution adopted by the school board making the determination that the interest arbitration decision is structurally balanced must include or incorporate written findings and specific calculations to support the determination. The findings and calculations must be available to members of the school board and the public at the meeting at which the resolution is adopted. A copy of the resolution with supporting findings and calculations shall also be attached to the uniform collective bargaining agreement settlement document filed with the commissioner of finance under section 179A.07, subdivision 7.
(d) In making a determination as to whether a contract settlement or interest arbitration decision is structurally balanced for the term of the contract and the following year, the board shall review the general fund revenue and expenditure projections for the three-year time period specified based on laws in effect at the time the determination is made.
(1) Revenue projections must be based on the general education and other formulas in effect for the time period specified at the time the determination is made.
(2) Revenue projections must be based on pupil unit projections for the time period specified.
(3) Expenditure projections must be based on the costs of this contract and the projected costs of the contract with the teachers for the third year of the time period specified.
(4) Expenditure projections must be based on the projected seniority of the staff during each year of the time period specified and on current teacher-to-student ratios. The projections must include projected movement through contract steps and lanes each year during the time period specified to reflect increased seniority leading to step changes and increased education or training leading to lane changes.
(5) Expenditure projections must include anticipated costs of fringe benefits, including, but not limited to, health insurance, during each year of the time period specified.
(6) Expenditure projections must include projected staff retirements and the hiring of projected new teachers during the time period specified. The projections must include projected payouts of severance pay, accumulated sick leave or other leave if any, vacation pay if any, and other benefits to retiring employees or employees leaving employment in the district.
(7) Expenditure projections must include all other projected contract-related general fund expenditures for the time period specified.
(e) A school board may determine that a contract with the exclusive representative of the employees is structurally balanced for the time period specified if, taking into account at least the projections specified in paragraph (d) and such other projections as may be necessary, the projected general fund expenditures for each year of the time period specified will not exceed projected general fund revenues for that year.
[EFFECTIVE DATE.] This section is effective the day following final enactment and applies to contracts between school boards and exclusive representatives of teachers for the time period July 1, 2001, to June 30, 2003, and thereafter.
Sec. 50. [ACCESS TO STATEWIDE TESTS AND STUDENTS' TEST RESULTS.]
Subdivision 1. [TEST ACCESS.] Consistent with subdivisions 2 and 3 and Minnesota Statutes, section 120B.30, subdivision 1, paragraph (f), the commissioner of children, families, and learning shall make available copies of the statewide basic skills tests and the Minnesota comprehensive assessments and students' test results.
Subd. 2. [ACCESS TO BASIC SKILLS TESTS.] Beginning in February 2002, the commissioner, on the date the results for the February statewide basic skills tests are released, at the same time also shall:
(1) make available to the public electronic copies of those tests and accompanying answer sheets and mail to districts paper copies of the tests and accompanying answer sheets; and
(2) make available to parents or guardians a copy of their students' answers to the test questions.
The commissioner must release to a student's parent or guardian a copy of the student's actual answer sheet upon receiving a written request from that student's parent or guardian within a reasonable time of the request. The requirements of this paragraph apply only to those statewide basic skills tests administered in February of any year. The commissioner must allow a parent or guardian to examine a statewide basic skills test administered in April or July and the student's accompanying answer sheets upon receiving a written request from that student's parent or guardian.
Subd. 3. [ACCESS TO MINNESOTA COMPREHENSIVE ASSESSMENTS.] Beginning in the 2000-2001 school year, the commissioner shall release copies of Minnesota comprehensive assessments previously administered as follows:
(1) in the 2000-2001 school year, the commissioner shall make available to the public electronic copies of the tests administered in March 1999 and accompanying answer sheets;
(2) in the 2001-2002 school year, the commissioner shall make available to the public electronic copies of the tests administered in March 2000 and March 2001 and accompanying answer sheets; and
(3) in the 2002-2003 school year, the commissioner shall make available to the public electronic copies of the tests administered in March 2002 and accompanying answer sheets.
Beginning in the 2002-2003 school year and later, the commissioner shall release the tests administered in that school year. Beginning in January 2003 and later, the commissioner, on the date the results for the Minnesota comprehensive assessments are released, at the same time also shall:
(1) make available to the public electronic copies of those tests and accompanying answer sheets and mail to districts paper copies of the tests and accompanying answer sheets; and
(2) make available to parents or guardians a copy of their students' answers to the test questions.
The commissioner must release to a student's parent or guardian a copy of the student's actual answer sheet upon receiving a written request from that student's parent or guardian within a reasonable time of the request.
Subd. 4. [TEST ACCESS POLICY.] If statewide elementary or secondary level tests other than the basic skills tests or the Minnesota comprehensive assessments are administered to elementary or secondary students, the commissioner must adopt and publish a policy to provide public or parental access to copies of such tests and to students' accompanying test results, consistent with the provisions of this section.
[EFFECTIVE DATE.] This section is effective the day following final enactment.
Sec. 51. [ALTERNATIVE MODELS FOR DELIVERING EDUCATION; EXPANDING THE FLEXIBLE LEARNING YEAR PROGRAM.]
Subdivision 1. [ESTABLISHMENT; GOAL.] A three-year pilot project is established to permit participating school districts and school sites approved by the commissioner of children, families, and learning under subdivision 2 to use alternative models for delivering education by expanding the flexible learning year program under Minnesota Statutes, sections 124D.12 to 124D.127. The project is intended to explore effective alternatives for delivering education, with the goal of improving instruction and students' educational outcomes and opportunities and increasing the cost-effectiveness of educational programs.
Subd. 2. [ELIGIBILITY; APPLICATIONS.] The commissioner shall make application forms available to school districts and school sites interested in exploring effective alternative models for delivering instruction during a redefined flexible learning year as described in this section. Interested school districts and school sites must have their application to participate in this program first approved by the local school board and a majority of teachers employed in the district or at the site, respectively, after a public hearing on the matter. Applications must be submitted to the commissioner by January 1, 2002. The application must describe how the applicant proposes to realize the goal of this project, including what activities and procedures the applicant proposes to develop and implement and the specific changes in the learning year the applicant requires to accomplish those activities and procedures. The commissioner, consistent with the requirements of this section, shall approve applications before March 1, 2002.
Subd. 3. [EXEMPTIONS.] (a) Notwithstanding other laws or rules to the contrary, a participant in the pilot project under this section is exempt from Minnesota Statutes, sections 120A.40 and 120A.41, through the 2004-2005 school year. Minnesota Statutes, sections 124D.12 to 124D.127, apply through the 2004-2005 school year except to the extent that the provisions of this section or the participant's learning year changes conflict with particular provisions in Minnesota Statutes, sections 124D.12 to 124D.127.
(b) Consistent with this section, a participant may adopt a learning year calendar that allows the participant to suitably fulfill the educational needs of its students using an alternative learning year calendar. The commissioner must provide participants with a formula for computing average daily membership so that all formulas based upon average daily membership are not affected as a result of participating in this pilot project.
Subd. 4. [TECHNICAL ASSISTANCE.] The commissioner, at the request of a participant, must provide technical assistance to the participant. Also, the commissioner must assist participants in developing and implementing a valid and uniform procedure to evaluate the efficacy of their alternative learning year calendar, consistent with the goals of this section.
Subd. 5. [EVALUATION; REPORT.] (a) Participants must complete a formative and summative evaluation of their experiences in delivering education under an alternative learning year calendar. Participants must focus the evaluation on the overall efficacy of the pilot project, including the cost-effectiveness of educational programs and the extent to which students' educational outcomes and opportunities improved. Participants shall use their interim evaluations, with the commissioner's approval, to modify their project where appropriate.
(b) Participants shall submit to the commissioner a progress report by September 1, 2004, and a final report by January 1, 2006, evaluating the cost-effectiveness of educational programs and the extent to which students' educational outcomes and opportunities improved. The commissioner shall compile the reports to present to the committees in the legislature that deal with education policy and education finance by March 1, 2006. When presenting the report, the commissioner must recommend whether or not to continue or expand this pilot project.
[EFFECTIVE DATE.] This section is effective the day following final enactment.
Sec. 52. [FEDERAL FUNDS.]
The commissioner of children, families, and learning shall use federal funds available for reading-related purposes to fund grants under Minnesota Statutes, section 120B.12.
Sec. 53. [INTEGRATION LEVY.]
Subdivision 1. [AUTHORIZATION AMOUNT.] A district eligible for integration revenue under Minnesota Statutes, section 124D.86, subdivision 3, clause (5), is authorized to levy for integration revenue for 2001 payable 2002 taxes an amount up to the district's integration levy limit for fiscal years 2002 and 2003.
Subd. 2. [LEVY RECOGNITION.] Notwithstanding Minnesota Statutes, section 123B.75, subdivision 5, for a district eligible for integration revenue under Minnesota Statutes, section 124D.86, subdivision 3, clause (5), the full amount of integration levy for taxes payable in 2002, attributable to fiscal year 2002, shall be recognized in fiscal year 2002.
Sec. 54. [SCHOOLS' ACADEMIC AND FINANCIAL PERFORMANCE EVALUATION; INDEPENDENT CONTRACTOR.]
(a) To assist taxpayers, educators, school board members, and state and local officials in realizing their commitment to improving student achievement and the management of school systems, the commissioner of children, families, and learning shall contract with an independent school evaluation services contractor to evaluate and report on the academic and financial performance of the state's independent school districts using six core categories of analysis:
(1) school district expenditures;
(2) students' performance outcomes based on multiple indicia including students' test scores, attendance rates, dropout rates, and graduation rates;
(3) return on resources to determine the extent to which student outcomes improve commensurate with increases in district spending;
(4) school district finances, taxes, and debt to establish the context for analyzing the district's return on resources under clause (3);
(5) students' learning environment to establish the context for analyzing the district's return on resources under clause (3); and
(6) school district demographics to establish the socioeconomic context for analyzing the district's return on resources under clause (3).
(b) In order to compare the regional and socioeconomic peers of particular school districts, monitor educational changes over time and identify important educational trends, the contractor shall use the six core categories of analysis to:
(1) identify allocations of baseline and incremental school district spending;
(2) connect student achievement with expenditure patterns;
(3) track school district financial health;
(4) observe school district debt and capital spending levels; and
(5) measure the return on a school district's educational resources.
(c) The contractor under paragraph (a) shall evaluate and report on the academic and financial performance of all school districts.
(d) Consistent with paragraph (a), clause (2), the evaluation and reporting of test scores must distinguish between:
(1) performance-based assessments; and
(2) academic, objective knowledge-based tests.
(e) The contractor must complete its written report and submit it to the commissioner within 360 days of the date on which the contract is signed. The commissioner immediately must make the report available in a readily accessible format to state and local elected officials, members of the public, educators, parents, and other interested individuals. The commissioner, upon receiving an individual's request, also must make available all draft reports prepared by the contractor, consistent with Minnesota Statutes, chapter 13.
Sec. 55. [TECHNICAL ASSISTANCE.]
(a) The department of children, families, and learning or the state board of teaching, at a participant's request, must assist teachers and school districts in designing the teacher professional development standards and training interested parties in assessing whether and at what level teachers are attaining the standards, consistent with Minnesota Statutes, sections 120B.32 and 120B.33.
(b) Teachers and school districts also are encouraged to seek assistance from education districts, education cooperatives, and other education organizations in designing the teacher professional development standards and training teachers and administrators in assessing whether and at what level teachers are attaining the standards, consistent with Minnesota Statutes, sections 120B.32 and 120B.33.
[EFFECTIVE DATE.] This section is effective the day following final enactment.
Sec. 56. [PARTICIPATION IN ATHLETIC ACTIVITIES; MINNESOTA STATE HIGH SCHOOL LEAGUE STUDY.]
The Minnesota state high school league must prepare a written report by February 15, 2002, for the legislative committees charged with overseeing kindergarten through grade 12 education policy that indicates the interest of charter school students in participating in athletic activities available in the students' resident district. The Minnesota state high school league at least must:
(1) survey the students enrolled in the state's charter schools to determine how interested the students are in participating in various athletic activities offered by their resident school district;
(2) review the ability of charter schools to independently or through a cooperative sponsorship provide students with various athletic activities; and
(3) determine whether the league's cooperative sponsorship rules need to be amended to facilitate cooperative sponsorship arrangements involving charter schools. The Minnesota state high school league must cover the costs of this report.
[EFFECTIVE DATE.] This section is effective the day following final enactment.
Sec. 57. [CHARTER SCHOOL CONTRACTS TEMPORARILY PERMITTED.]
Notwithstanding Minnesota Statutes, section 124D.10, subdivision 3a, a school organized as a charter school as of the 2000-2001 school year may enter into a contract of up to $2,000 annually with a nonteacher board member until June 30, 2003, when such a contract must expire.
Sec. 58. [SCIENCE LICENSURE.]
The board of teaching must issue a teaching license to an applicant who qualifies to teach general science to students in grades five to eight, or who qualifies to teach a specialty in physics, chemistry, life science, or earth and space science to students in grades nine to 12 if the applicant meets other applicable licensure requirements, including the requirements of Minnesota Statutes, section 122A.18, subdivision 8.
[EFFECTIVE DATE.] This section is effective the day following final enactment.
Sec. 59. [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 indicated.
Subd. 2. [EXAMINATION FEES; TEACHER TRAINING AND SUPPORT PROGRAMS.] (a) For students' advanced placement and international baccalaureate examination fees under Minnesota Statutes 2000, section 120B.13, subdivision 3, and the training and related costs for teachers and other interested educators under Minnesota Statutes 2000, section 120B.13, subdivision 1:
$2,000,000 . . . . . 2002
$2,000,000 . . . . . 2003
Any funds unexpended in the first year do not cancel and are available in the second year.
(b) The advanced placement program shall receive 75 percent of the appropriation each year and the international baccalaureate program shall receive 25 percent of the appropriation each year. The department, in consultation with representatives of the advanced placement and international baccalaureate programs selected by the advanced placement advisory council and IBMN, respectively, shall determine the amounts of the expenditures each year for examination fees and training and support programs for each program.
(c) Notwithstanding Minnesota Statutes, section 120B.13, subdivision 1, $375,000 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.
(d) Notwithstanding Minnesota Statutes, section 120B.13, 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.
Any balance in the first year does not cancel but is available in the second year.
Subd. 3. [IMPLEMENTATION ASSISTANCE.] For grants to school districts for the costs of developing research-based teacher professional development and assessment standards and for training to implement the standards under Minnesota Statutes, sections 120B.32 and 120B.33:
$1,500,000 . . . . . 2002
$1,500,000 . . . . . 2003
Districts may apply for a grant amount of $50 per full-time equivalent instructional staff person or $2,500, whichever is greater. No grant may exceed $50,000. Districts receiving grants are encouraged to cooperate with other grant recipients for the purposes of this appropriation.
This appropriation is available until June 30, 2003.
Subd. 4. [ALTERNATIVE COMPENSATION AID.] For alternative compensation aid under Minnesota Statutes, section 120B.34:
$6,000,000 . . . . . 2002
$6,000,000 . . . . . 2003
Of the annual appropriations, at least $2,000,000 must be awarded to school districts whose administrative offices on July 1, 2001, are located in Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington county, and at least $2,000,000 must be awarded to school districts whose administrative offices on July 1, 2001, are not located in Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, or Washington county. If applications for funding are not sufficient to distribute the full amount of funding designated for each geographic area, the commissioner may reallocate those funds to the remaining applicant districts, regardless of their location. The commissioner shall award grants based on the order in which the documents required under Minnesota Statutes, section 120B.34, are received. A school district that qualifies for aid in fiscal year 2002 remains eligible for aid in fiscal year 2003.
Any balance in the first year does not cancel but is available in the second year.
Subd. 5. [STATEWIDE TESTING.] For administering tests under Minnesota Statutes, sections 120B.02; 120B.30, subdivision 1; and 120B.35:
$6,500,000 . . . . . 2002
$6,500,000 . . . . . 2003
A district may apply to the commissioner for a grant to reimburse the district for test-related costs.
Any balance in the first year does not cancel but is available in the second year.
Subd. 6. [CHARTER SCHOOL BUILDING LEASE AID.] For building lease aid under Minnesota Statutes, section 124D.11, subdivision 4:
$16,554,000 . . . . . 2002
The 2002 appropriation includes $1,114,000 for 2001 and $15,440,000 for 2002.
The 2003 appropriation includes $1,715,000 for 2002 and $23,461,000 for 2003.
Subd. 7. [CHARTER SCHOOL STARTUP GRANTS.] For charter school startup cost aid under Minnesota Statutes, section 124D.11:
$2,738,000 . . . . . 2002
$3,143,000 . . . . . 2003
The 2002 appropriation includes $273,000 for 2001 and $2,465,000 for 2002.
The 2003 appropriation includes $274,000 for 2002 and $2,869,000 for 2003.
Subd. 8. [CHARTER SCHOOL INTEGRATION AID.] For grants to charter schools to promote integration and desegregation under Minnesota Statutes, section 124D.11, subdivision 6, paragraph (e):
$50,000 . . . . . 2002
$50,000 . . . . . 2003
Any balance in the first year does not cancel but is available in the second year.
Subd. 9. [BEST PRACTICES GRANTS.] For best practices grants:
$1,000,000 . . . . . 2002
$1,000,000 . . . . . 2003
Of this amount, $1,000,000 each year is for the Minnesota new teacher project.
Subd. 10. [INTEGRATION AID.] For integration aid:
$63,231,000 . . . . . 2002
$63,742,000 . . . . . 2003
The 2002 appropriation includes $5,729,000 for 2001 and $57,502,000 for 2002.
The 2003 appropriation includes $6,389,000 for 2002 and $57,353,000 for 2003.
Subd. 11. [INTEGRATION PROGRAMS.] For minority fellowship grants under Laws 1994, chapter 647, article 8, section 29; minority teacher incentives under Minnesota Statutes, section 122A.65; teachers of color program grants under Minnesota Statutes, section 122A.64; and cultural exchange grants under Minnesota Statutes, section 124D.89:
$1,000,000 . . . . . 2002
$1,000,000 . . . . . 2003
Any balance in the first year does not cancel but is available in the second year.
In awarding teachers of color program grants, the commissioner must give priority to districts with students who are currently completing their academic program.
Subd. 12. [MAGNET SCHOOL GRANTS.] For magnet school and program grants under Minnesota Statutes, section 124D.871:
$1,750,000 . . . . . 2002
$1,050,000 . . . . . 2003
Subd. 13. [MAGNET SCHOOL STARTUP AID.] For magnet school startup aid under Minnesota Statutes, section 124D.88:
$482,000 . . . . . 2002
$326,000 . . . . . 2003
The 2002 appropriation includes $25,000 for 2001 and $457,000 for 2002.
The 2003 appropriation includes $51,000 for 2002 and $275,000 for 2003.
Subd. 14. [INTERDISTRICT DESEGREGATION OR INTEGRATION TRANSPORTATION GRANTS.] For interdistrict desegregation or integration transportation grants under Minnesota Statutes, section 124D.87:
$2,932,000 . . . . . 2003
Subd. 15. [AMERICAN INDIAN LANGUAGE AND CULTURE PROGRAMS.] For grants to American Indian language and culture education programs under Minnesota Statutes 2000, section 124D.81, subdivision 1:
$73,000 . . . . . 2002
The 2002 appropriation includes $73,000 for 2001 and $0 for 2002.
Subd. 16. [AMERICAN INDIAN EDUCATION.] For certain American Indian education programs in school districts:
$17,000 . . . . . 2002
The 2002 appropriation includes $17,000 for 2001 and $0 for 2002.
Subd. 17. [SUCCESS FOR THE FUTURE.] For American Indian success for the future grants under Minnesota Statutes, section 124D.81:
$1,797,000 . . . . . 2002
$1,887,000 . . . . . 2003
The 2002 appropriation includes $0 for 2001 and $1,797,000 for 2002.
The 2003 appropriation includes $200,000 for 2002 and $1,687,000 for 2003.
Subd. 18. [AMERICAN INDIAN SCHOLARSHIPS.] For American Indian scholarships under Minnesota Statutes, section 124D.84:
$1,875,000 . . . . . 2002
$1,875,000 . . . . . 2003
Any balance in the first year does not cancel but is available in the second year.
Subd. 19. [AMERICAN INDIAN TEACHER PREPARATION GRANTS.] (a) For joint grants to assist American Indian people to become teachers under Minnesota Statutes, section 122A.63:
$190,000 . . . . . 2002
$190,000 . . . . . 2003
(b) Up to $70,000 each year is for a joint grant to the University of Minnesota at Duluth and the Duluth school district.
(c) Up to $40,000 each year is for a joint grant to each of the following:
(1) Bemidji state university and the Red Lake school district;
(2) Moorhead state university and a school district located within the White Earth reservation; and
(3) Augsburg college, independent school district No. 625, St. Paul, and the Minneapolis school district.
(d) Money not used for students at one location may be transferred for use at another location.
(e) Any balance in the first year does not cancel but is available in the second year.
Subd. 20. [TRIBAL CONTRACT SCHOOLS.] For tribal contract school aid under Minnesota Statutes, section 124D.83:
$2,520,000 . . . . . 2002
$2,767,000 . . . . . 2003
The 2002 appropriation includes $192,000 for 2001 and $2,328,000 for 2002.
The 2003 appropriation includes $258,000 for 2002 and $2,509,000 for 2003.
Subd. 21. [EARLY CHILDHOOD PROGRAMS AT TRIBAL SCHOOLS.] For early childhood family education programs at tribal contract schools:
$68,000 . . . . . 2002
$68,000 . . . . . 2003
Subd. 22. [FIRST GRADE PREPAREDNESS.] For first grade preparedness grants under Minnesota Statutes, section 124D.081:
$7,000,000 . . . . . 2002
$7,000,000 . . . . . 2003
Subd. 23. [SECONDARY VOCATIONAL EDUCATION AID.] For secondary vocational education aid under Minnesota Statutes, section 124D.453:
$1,242,000 . . . . . 2002
The 2002 appropriation includes $1,242,000 for 2001 and $0 for 2002.
Subd. 24. [YOUTHWORKS PROGRAM.] For youthworks programs under Minnesota Statutes, sections 124D.37 to 124D.45:
$1,788,000 . . . . . 2002
$1,788,000 . . . . . 2003
A grantee organization may provide health and child care coverage to the dependents of each participant enrolled in a full-time youth works program to the extent such coverage is not otherwise available.
Any balance in the first year does not cancel but is available in the second year.
Subd. 25. [EDUCATION AND EMPLOYMENT TRANSITIONS PROGRAM GRANTS.] For education and employment transitions programming under Minnesota Statutes, section 124D.46:
$450,000 . . . . . 2002
$450,000 . . . . . 2003
$450,000 each year is for ISEEKS.
Any balance in the first year does not cancel but is available in the second year.
Subd. 26. [LEARN AND EARN GRADUATION ACHIEVEMENT PROGRAM.] For the learn and earn graduation achievement program under Minnesota Statutes, section 124D.32:
$725,000 . . . . . 2002
Any balance in the first year does not cancel but is available in the second year.
Subd. 27. [SCHOOL EVALUATION SERVICES.] For contracting with an independent school evaluation services contractor to evaluate and report on school districts' academic and financial performance under section 54:
$2,500,000 . . . . . 2002
Subd. 28. [MINNESOTA STUDENT ORGANIZATION FOUNDATION.] For the Minnesota student organization foundation under Minnesota Statutes, section 124D.34:
$625,000 . . . . . 2002
$625,000 . . . . . 2003
Any balance in the first year does not cancel but is available in the second year.
Subd. 29. [READING COMPETENCY GRANTS.] For reading competency grants under Minnesota Statutes, section 120B.12:
$100,000 . . . . . 2002
$100,000 . . . . . 2003
The commissioner must award one grant to the St. Croix river education district by July 1, 2001.
Sec. 60. [REPEALER.]
(a) Minnesota Statutes 2000, section 124D.85, is repealed.
(b) Minnesota Statutes 2000, section 124D.32, is repealed, effective July 1, 2002.
(c) Minnesota Statutes 2000, sections 124D.128, subdivision 7, and 135A.081, are repealed effective the day following final enactment.
ARTICLE 3
SPECIAL PROGRAMS
Section 1. Minnesota Statutes 2000, section 120B.031, subdivision 11, is amended to read:
Subd. 11. [TECHNOLOGY AND RECORDKEEPING.] (a) Consistent with the requirements of this section,
the commissioner must ensure the availability and maintain the ongoing operation of a uniform system for school
districts to report profile of learning data at the state and local levels. The commissioner also shall
designate to school districts, area learning centers, and charter schools software packages for reporting student
performance on the content standards. The commissioner shall ensure that the designated recordkeeping software
is capable of transferring student records between schools and school districts and is available to school districts at
a minimal cost. The commissioner shall convene an advisory group composed of qualified experts and interested
stakeholders to recommend to districts and charter schools recordkeeping practices under the graduation rule.
The commissioner also must also report on an ongoing basis on technology needs for
efficient daily classroom recordkeeping and accountability reporting.
(b) The commissioner annually shall notify inform the education committees of the
legislature that regarding recordkeeping practices under the profile of learning until the
requirements in paragraph (a) have been fully met.
[EFFECTIVE DATE.] This section is effective the day following final enactment.
Sec. 2. Minnesota Statutes 2000, section 121A.41, 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 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. Consistent with section 125A.09, subdivision 3, the readmission plan must not obligate a parent to provide a sympathomimetic medication for the parent's child as a condition of readmission. 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 initiating an expulsion, in which case the school administration may extend the suspension to a total of 15 days. In the case of a student with a disability, the student's individual education plan team must meet immediately but not more than ten school days after the date on which the decision to remove the student from the student's current education placement is made. The individual education plan team shall at that meeting: conduct a review of the relationship between the child's disability and the behavior subject to disciplinary action; and determine the appropriateness of the child's education plan.
The requirements of the individual education plan team meeting apply when:
(1) the parent requests a meeting;
(2) the student is removed from the student's current placement for five or more consecutive days; or
(3) the student's total days of removal from the student's placement during the school year exceed ten cumulative days in a school year. The school administration shall implement alternative educational services when the suspension exceeds five days. A separate administrative conference is required for each period of suspension.
[EFFECTIVE DATE.] This section is effective the day following final enactment.
Sec. 3. Minnesota Statutes 2000, section 122A.18, is amended by adding a subdivision to read:
Subd. 2b. [SPECIAL EDUCATION INFORMATION.] All colleges and universities approved by the board of teaching to prepare persons for classroom teacher licensure must include in their teacher preparation programs information on special education laws, teaching strategies, and positive behavior interventions.
[EFFECTIVE DATE.] This section is effective for the 2002-2003 school year and later.
Sec. 4. Minnesota Statutes 2000, section 122A.31, is amended to read:
122A.31 [AMERICAN SIGN LANGUAGE/ENGLISH INTERPRETERS.]
Subdivision 1. [REQUIREMENTS FOR AMERICAN SIGN LANGUAGE/ENGLISH INTERPRETERS.] (a) In addition to any other requirements that a school district establishes, any person employed to provide American sign language/English interpreting or sign transliterating services on a full-time or part-time basis for a school district after July 1, 2000, must:
(1) hold current interpreter and transliterator certificates awarded by the Registry of Interpreters for the Deaf (RID), or the general level interpreter proficiency certificate awarded by the National Association of the Deaf (NAD), or a comparable state certification from the commissioner of children, families, and learning; and
(2) satisfactorily complete an interpreter/transliterator training program affiliated with an accredited educational institution.
(b) To provide American sign language/English interpreting or transliterating services on a full-time or
part-time basis, a person employed in a school district during the 1999-2000 school year must only comply with
paragraph (a), clause (1). The commissioner shall grant a nonrenewable, one-year provisional certificate to
individuals who have not attained a current applicable transliterator certificate pursuant to paragraph (a), clause (1).
During the one-year provisional period, the interpreter/transliterator must develop and implement an education plan
in collaboration with a mentor under paragraph (d). This paragraph shall expire on June 30, 2001.
(c) New graduates of an interpreter/transliterator program affiliated with an accredited education
institution shall be granted a two-year provisional certificate by the commissioner. During the two-year provisional
period, the interpreter/transliterator must develop and implement an education plan in collaboration with a mentor
under paragraph (d) (c). This paragraph applies to spring semester 2000 graduates and
thereafter.
(d) (c) A mentor of a provisionally certified interpreter/transliterator must be an
interpreter/transliterator who has either NAD level IV or V certification or RID certified interpreter and certified
transliterator certification and have at least three years interpreting/transliterating experience in any educational
setting. The mentor, in collaboration with the provisionally certified interpreter/transliterator, shall develop and
implement an education plan designed to meet the requirements of paragraph (a), clause (1), and include a weekly
on-site mentoring process.
(d) Consistent with the requirements of this paragraph, a person holding a two-year provisional certificate may apply to the commissioner for a time-limited extension. The commissioner, in consultation with the commission serving deaf and hard-of-hearing people, must grant the person a time-limited extension of the provisional certificate based on the following documentation:
(1) letters of support from the person's mentor, a parent of a pupil the person serves, the special education director of the district in which the person is employed, and a representative from the regional service center of the deaf and hard-of-hearing;
(2) records of the person's formal education, training, experience, and progress on the person's education plan; and
(3) an explanation of why an extension is needed.
As a condition of receiving an extension, the person must comply with a plan and the accompanying time line for meeting the requirements of this subdivision. A committee composed of the director of the Minnesota resource center serving deaf and hard-of-hearing, or the director's designee, a representative of the Minnesota association of deaf citizens, a representative of the Minnesota registry of interpreters of the deaf, and other appropriate persons selected by the commissioner must develop the plan and time line for the person receiving the extension.
(e) A school district may not employ only an interpreter/transliterator who has not been
certified under paragraph (a), or (b), or (c) for whom a time-limited extension has been
granted under paragraph (d).
Subd. 2. [ORAL OR CUED SPEECH TRANSLITERATORS.] (a) In addition to any other requirements that a school district establishes, any person employed to provide oral transliterating or cued speech transliterating services on a full-time or part-time basis for a school district after July 1, 2000, must hold a current applicable transliterator certificate awarded by the national certifying association or comparable state certification from the commissioner of children, families, and learning.
(b) Consistent with the requirements of this paragraph, a person holding a two-year provisional certificate may apply to the commissioner for a time-limited extension. The commissioner, in consultation with the commission serving deaf and hard-of-hearing people, must grant the person a time-limited extension of the provisional certificate based on the following documentation:
(1) letters of support from the person's mentor, a parent of a pupil the person serves, the special education director of the district in which the person is employed, and a representative from the regional service center of the deaf and hard-of-hearing;
(2) records of the person's formal education, training, experience, and progress on the person's education plan; and
(3) an explanation of why an extension is needed.
As a condition of receiving an extension, the person must comply with a plan and the accompanying time line for meeting the requirements of this subdivision. A committee composed of the director of the Minnesota resource center serving deaf and hard-of-hearing, or the director's designee, a representative of the Minnesota association of deaf citizens, a representative of the Minnesota registry of interpreters of the deaf, and other appropriate persons selected by the commissioner must develop the plan and time line for the person receiving the extension.
Subd. 3. [QUALIFIED INTERPRETERS.] The department of children, families, and learning and the resource center: deaf and hard of hearing shall work with existing interpreter/transliterator training programs, other training/educational institutions, and the regional service centers to ensure that ongoing staff development training for educational interpreters/transliterators is provided throughout the state.
Subd. 4. [REIMBURSEMENT.] (a) For purposes of revenue under section 125A.78, the department of children, families, and learning must only reimburse school districts for the services of those interpreters/transliterators who satisfy the standards of competency under this section.
(b) Notwithstanding paragraph (a), a district shall be reimbursed for the services of interpreters with a
nonrenewable provisional certificate and, interpreters/transliterators employed to mentor the
provisional certified interpreters and persons for whom a time-limited extension has been granted under
subdivision 1, paragraph (d), or subdivision 2, paragraph (b).
[EFFECTIVE DATE.] This section is effective for the 2001-2002 school year and later.
Sec. 5. Minnesota Statutes 2000, section 122A.61, subdivision 1, is amended to read:
Subdivision 1. [STAFF DEVELOPMENT REVENUE.] A district is required to reserve an amount equal to at least two percent of the basic revenue under section 126C.10, subdivision 2, for in-service education for programs under section 120B.22, subdivision 2, for staff development plans, including plans for challenging instructional activities and experiences under section 122A.60, and for curriculum development and programs, other in-service education, teachers' workshops, teacher conferences, the cost of substitute teachers staff development purposes, preservice and in-service education for special education professionals and paraprofessionals, and other related costs for staff development efforts. A district may annually waive the requirement to reserve their basic revenue under this section if a majority vote of the licensed teachers in the district and a majority vote of the school board agree to a resolution to waive the requirement. A district in statutory operating debt is exempt from reserving basic revenue according to this section. Districts may expend an additional amount of unreserved revenue for staff development based on their needs. With the exception of amounts reserved for staff development from revenues allocated directly to school sites, the board must initially allocate 50 percent of the reserved revenue to each school site in the district on a per teacher basis, which must 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 must be used to make grants to school sites for best practices methods. A grant may be used for any purpose authorized under section 120B.22, subdivision 2, 122A.60, 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 professional development team. The site professional development 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.
[EFFECTIVE DATE.] This section is effective the day following final enactment.
Sec. 6. Minnesota Statutes 2000, section 124D.65, subdivision 5, is amended to read:
Subd. 5. [SCHOOL DISTRICT LEP REVENUE.] (a) A school district's limited English proficiency programs revenue for fiscal year 2000 equals the state total limited English proficiency programs revenue, minus the amount determined under paragraph (b), times the ratio of the district's adjusted limited English proficiency programs base revenue to the state total adjusted limited English proficiency programs base revenue.
(b) Notwithstanding paragraph (a), if the limited English proficiency programs base revenue for a district equals zero, the limited English proficiency programs revenue equals the sum of the following amounts, computed using current year data:
(1) 68 percent of the salary of one full-time equivalent teacher for each 40 pupils of limited English proficiency enrolled, or 68 percent of the salary of one-half of a full-time teacher in a district with 20 or fewer pupils of limited English proficiency enrolled; and
(2) for supplies and equipment purchased or rented for use in the instruction of pupils of limited English proficiency an amount equal to 47 percent of the sum actually spent by the district but not to exceed an average of $47 in any one school year for each pupil of limited English proficiency receiving instruction.
(c) A district's limited English proficiency programs revenue for fiscal year 2001 and later equals the product of $584 times the greater of 20 or the number of adjusted marginal cost pupils of limited English proficiency enrolled in the district during the current fiscal year.
(d) A pupil ceases to generate state limited English proficiency aid in the school year following the school year in which the pupil attains the state cut-off score on a commissioner-provided assessment that measures the pupil's emerging academic English.
[EFFECTIVE DATE.] This section is effective July 1, 2002.
Sec. 7. Minnesota Statutes 2000, section 125A.023, subdivision 4, is amended to read:
Subd. 4. [STATE INTERAGENCY COMMITTEE.] (a) The governor shall convene an 18-member a
19-member interagency committee to develop and implement a coordinated, multidisciplinary, interagency
intervention service system for children ages three to 21 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, the Minnesota administrators of special education, 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 21;
(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 21;
(7) develop guidelines to assist the governing boards of the interagency early intervention committees in carrying out the duties assigned in section 125A.027, 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 ongoing 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.
Sec. 8. Minnesota Statutes 2000, section 125A.08, is amended to read:
125A.08 [SCHOOL DISTRICT OBLIGATIONS.]
(a) As defined in this section, every district must ensure the following:
(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 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 individual education plan team shall consider and may authorize services covered by medical assistance according to section 256B.0625, subdivision 26. The student's needs and the special education instruction and services to be provided must be agreed upon through the development of an individual education plan. The plan must address the student's need to develop skills to live and work as independently as possible within the community. The individual education plan team must consider positive behavioral interventions, strategies, and supports that address behavior for children with attention deficit disorder or attention deficit hyperactivity disorder. By grade 9 or age 14, the plan must 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;
(6) in accordance with recognized professional standards, testing and evaluation materials, and procedures used 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
(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;
(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.
[EFFECTIVE DATE.] This section is effective the day following final enactment.
Sec. 9. Minnesota Statutes 2000, section 125A.09, subdivision 3, is amended to read:
Subd. 3. [INITIAL ACTION; PARENT CONSENT.] (a) The district must 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 subdivision 6 at the district's initiative.
(b) A parent, after consulting with health care, education, or other professional providers, may agree or disagree to provide the parent's child with sympathomimetic medications unless section 144.344 applies.
[EFFECTIVE DATE.] This section is effective the day following final enactment.
Sec. 10. Minnesota Statutes 2000, section 125A.11, subdivision 3, is amended to read:
Subd. 3. [AGREEMENT BETWEEN DISTRICTS TO PROVIDE SPECIAL INSTRUCTION AND SERVICES.]
For the purposes of this section, any school district may enter into an agreement, upon mutually agreed upon terms
and conditions, to provide special instruction and services for children with a disability. In that event, one of the
participating units may employ and contract with necessary qualified personnel to offer services in the several
districts. Each participating unit must reimburse the employing unit a proportionate amount of the actual cost of
providing the special instruction and services, less the amount of state special education aid, which shall be
claimed in full by the employing district.
Sec. 11. Minnesota Statutes 2000, section 125A.27, subdivision 15, is amended to read:
Subd. 15. [PART H C STATE PLAN.] "Part H C 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 C, Public Law Number 102-119
105-117).
Sec. 12. Minnesota Statutes 2000, section 125A.76, subdivision 1, is amended to read:
Subdivision 1. [DEFINITIONS.] For the purposes of this section, the definitions in this subdivision apply.
(a) "Base year" for fiscal year 1998 and later fiscal years means the second fiscal year preceding the fiscal year for which aid will be paid.
(b) "Basic revenue" has the meaning given it in section 126C.10, subdivision 2. For the purposes of computing basic revenue pursuant to this section, each child with a disability shall be counted as prescribed in section 126C.05, subdivision 1.
(c) "Essential personnel" means teachers, cultural liaisons, related services, and support services staff providing direct services to students. Essential personnel may also include special education paraprofessionals or clericals providing support to teachers and students by preparing paperwork and making arrangements related to special education compliance requirements, including parent meetings and individual education plans.
(d) "Average daily membership" has the meaning given it in section 126C.05.
(e) "Program growth factor" means 1.08 for fiscal year 2002, and 1.046 for fiscal year 2003 and later.
Sec. 13. Minnesota Statutes 2000, section 125A.76, 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 fiscal year, not including the share of salaries for personnel providing health-related services
counted in clause (8), 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;
(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
amount of the basic revenue, as defined in section 126C.10, subdivision 2, special education aid, and any other
aid earned on behalf of the child 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, not
including the portion of the expenses for supplies and equipment used to provide health-related services counted in
clause (8), 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 123B.92, subdivision 1, paragraph (b), clause (4).
The department shall establish procedures through the uniform financial accounting and reporting system to identify and track all revenues generated from third-party billings as special education revenue at the school district level; include revenue generated from third-party billings as special education revenue in the annual cross-subsidy report; and exclude third-party revenue from calculation of excess cost aid to the districts.
(b) If requested by a school district operating a special education program during the base year for less than the full 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 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 facility's first year of operating on a fee-for-service basis shall be computed using current year data.
Sec. 14. Minnesota Statutes 2000, section 260A.01, is amended to read:
260A.01 [TRUANCY PROGRAMS AND SERVICES.]
(a) The programs in this chapter are designed to provide a continuum of intervention and services to support families and children in keeping children in school and combating truancy and educational neglect. School districts, county attorneys, and law enforcement may establish the programs and coordinate them with other community-based truancy services in order to provide the necessary and most effective intervention for children and their families. This continuum of intervention and services involves progressively intrusive intervention, beginning with strong service-oriented efforts at the school and community level and involving the court's authority only when necessary.
(b) Consistent with section 125A.09, subdivision 3, a parent's refusal to provide the parent's child with sympathomimetic medications does not constitute educational neglect.
[EFFECTIVE DATE.] This section is effective the day following final enactment.
Sec. 15. Minnesota Statutes 2000, section 260C.163, subdivision 11, is amended to read:
Subd. 11. [PRESUMPTIONS REGARDING TRUANCY OR EDUCATIONAL NEGLECT.] (a) A child's absence from school is presumed to be due to the parent's, guardian's, or custodian's failure to comply with compulsory instruction laws if the child is under 12 years old and the school has made appropriate efforts to resolve the child's attendance problems; this presumption may be rebutted based on a showing by clear and convincing evidence that the child is habitually truant. A child's absence from school without lawful excuse, when the child is 12 years old or older, is presumed to be due to the child's intent to be absent from school; this presumption may be rebutted based on a showing by clear and convincing evidence that the child's absence is due to the failure of the child's parent, guardian, or custodian to comply with compulsory instruction laws, sections 120A.22 and 120A.24.
(b) Consistent with section 125A.09, subdivision 3, a parent's refusal to provide the parent's child with sympathomimetic medications does not constitute educational neglect.
[EFFECTIVE DATE.] This section is effective the day following final enactment.
Sec. 16. Minnesota Statutes 2000, section 626.556, subdivision 2, is amended to read:
Subd. 2. [DEFINITIONS.] As used in this section, the following terms have the meanings given them unless the specific content indicates otherwise:
(a) "Sexual abuse" means the subjection of a child by a person responsible for the child's care, by a person who has a significant relationship to the child, as defined in section 609.341, or by a person in a position of authority, as defined in section 609.341, subdivision 10, to any act which constitutes a violation of section 609.342 (criminal sexual conduct in the first degree), 609.343 (criminal sexual conduct in the second degree), 609.344 (criminal sexual conduct in the third degree), 609.345 (criminal sexual conduct in the fourth degree), or 609.3451 (criminal sexual conduct in the fifth degree). Sexual abuse also includes any act which involves a minor which constitutes a violation of prostitution offenses under sections 609.321 to 609.324 or 617.246. Sexual abuse includes threatened sexual abuse.
(b) "Person responsible for the child's care" means (1) an individual functioning within the family unit and having responsibilities for the care of the child such as a parent, guardian, or other person having similar care responsibilities, or (2) an individual functioning outside the family unit and having responsibilities for the care of the child such as a teacher, school administrator, or other lawful custodian of a child having either full-time or short-term care responsibilities including, but not limited to, day care, babysitting whether paid or unpaid, counseling, teaching, and coaching.
(c) "Neglect" means:
(1) failure by a person responsible for a child's care to supply a child with necessary food, clothing, shelter, health, medical, or other care required for the child's physical or mental health when reasonably able to do so;
(2) failure to protect a child from conditions or actions which imminently and seriously endanger the child's physical or mental health when reasonably able to do so;
(3) failure to provide for necessary supervision or child care arrangements appropriate for a child after considering factors as the child's age, mental ability, physical condition, length of absence, or environment, when the child is unable to care for the child's own basic needs or safety, or the basic needs or safety of another child in their care;
(4) failure to ensure that the child is educated as defined in sections 120A.22 and 260C.163, subdivision 11, which does not include a parent's refusal to provide the parent's child with sympathomimetic medications, consistent with section 125A.09, subdivision 3;
(5) nothing in this section shall be construed to mean that a child is neglected solely because the child's parent, guardian, or other person responsible for the child's care in good faith selects and depends upon spiritual means or prayer for treatment or care of disease or remedial care of the child in lieu of medical care; except that a parent, guardian, or caretaker, or a person mandated to report pursuant to subdivision 3, has a duty to report if a lack of medical care may cause serious danger to the child's health. This section does not impose upon persons, not otherwise legally responsible for providing a child with necessary food, clothing, shelter, education, or medical care, a duty to provide that care;
(6) prenatal exposure to a controlled substance, as defined in section 253B.02, subdivision 2, used by the mother for a nonmedical purpose, as evidenced by withdrawal symptoms in the child at birth, results of a toxicology test performed on the mother at delivery or the child at birth, or medical effects or developmental delays during the child's first year of life that medically indicate prenatal exposure to a controlled substance;
(7) "medical neglect" as defined in section 260C.007, subdivision 4, clause (5);
(8) chronic and severe use of alcohol or a controlled substance by a parent or person responsible for the care of the child that adversely affects the child's basic needs and safety; or
(9) emotional harm from a pattern of behavior which contributes to impaired emotional functioning of the child which may be demonstrated by a substantial and observable effect in the child's behavior, emotional response, or cognition that is not within the normal range for the child's age and stage of development, with due regard to the child's culture.
(d) "Physical abuse" means any physical injury, mental injury, or threatened injury, inflicted by a person responsible for the child's care on a child other than by accidental means, or any physical or mental injury that cannot reasonably be explained by the child's history of injuries, or any aversive and deprivation procedures that have not been authorized under section 245.825. Abuse does not include reasonable and moderate physical discipline of a child administered by a parent or legal guardian which does not result in an injury. Actions which are not reasonable and moderate include, but are not limited to, any of the following that are done in anger or without regard to the safety of the child:
(1) throwing, kicking, burning, biting, or cutting a child;
(2) striking a child with a closed fist;
(3) shaking a child under age three;
(4) striking or other actions which result in any nonaccidental injury to a child under 18 months of age;
(5) unreasonable interference with a child's breathing;
(6) threatening a child with a weapon, as defined in section 609.02, subdivision 6;
(7) striking a child under age one on the face or head;
(8) purposely giving a child poison, alcohol, or dangerous, harmful, or controlled substances which were not prescribed for the child by a practitioner, in order to control or punish the child; or other substances that substantially affect the child's behavior, motor coordination, or judgment or that results in sickness or internal injury, or subjects the child to medical procedures that would be unnecessary if the child were not exposed to the substances; or
(9) unreasonable physical confinement or restraint not permitted under section 609.379, including but not limited to tying, caging, or chaining.
(e) "Report" means any report received by the local welfare agency, police department, or county sheriff pursuant to this section.
(f) "Facility" means a licensed or unlicensed day care facility, residential facility, agency, hospital, sanitarium, or other facility or institution required to be licensed under sections 144.50 to 144.58, 241.021, or 245A.01 to 245A.16, or chapter 245B; or a school as defined in sections 120A.05, subdivisions 9, 11, and 13; and 124D.10; or a nonlicensed personal care provider organization as defined in sections 256B.04, subdivision 16, and 256B.0625, subdivision 19a.
(g) "Operator" means an operator or agency as defined in section 245A.02.
(h) "Commissioner" means the commissioner of human services.
(i) "Assessment" includes authority to interview the child, the person or persons responsible for the child's care, the alleged perpetrator, and any other person with knowledge of the abuse or neglect for the purpose of gathering the facts, assessing the risk to the child, and formulating a plan.
(j) "Practice of social services," for the purposes of subdivision 3, includes but is not limited to employee assistance counseling and the provision of guardian ad litem and parenting time expeditor services.
(k) "Mental injury" means an injury to the psychological capacity or emotional stability of a child as evidenced by an observable or substantial impairment in the child's ability to function within a normal range of performance and behavior with due regard to the child's culture.
(l) "Threatened injury" means a statement, overt act, condition, or status that represents a substantial risk of physical or sexual abuse or mental injury.
(m) Persons who conduct assessments or investigations under this section shall take into account accepted child-rearing practices of the culture in which a child participates, which are not injurious to the child's health, welfare, and safety.
[EFFECTIVE DATE.] This section is effective the day following final enactment.
Sec. 17. Laws 2000, chapter 489, article 3, section 24, is amended to read:
Sec. 24. [SPECIAL EDUCATION CROSS-SUBSIDY REVENUE.]
(a) For fiscal year 2000, a school district shall receive an amount of revenue equal to $8.15 times the district's adjusted marginal cost pupil units.
(b) For fiscal year 2001, a school district shall receive an amount of revenue equal to $19 times the district's adjusted marginal cost pupil units. Special education cross-subsidy revenue must be used to pay for a district's unfunded special education costs that are currently cross-subsidized by a district's general education revenue.
(c) The fiscal year 2001 revenue is paid entirely in fiscal year 2001 based on estimated data. By January 31, 2002, the department of children, families, and learning shall recalculate the revenue for each district using actual data, and shall adjust the general education aid paid to school districts for fiscal year 2002 by the amount of the difference between the estimated revenue and the actual revenue.
Sec. 18. [INTERAGENCY AUTISM COORDINATING COMMITTEE.]
(a) The commissioner of children, families, and learning shall establish an interagency committee to coordinate state efforts related to serving children with autism. The committee shall include representatives of the departments of children, families, and learning and human services; parents or guardians of children with autism; pediatricians; local public health officials; and representatives of private or nonprofit organizations that advocate on behalf of children with autism.
(b) The interagency autism coordinating committee shall study and recommend by December 1, 2001, to the committees in the legislature charged with early childhood through grade 12 education policy and finance matters a plan for improving efforts at early assessment and identification of autism in young children. The plan must consider:
(1) all existing assessment program options;
(2) public and private funding sources including programmatic funding for early and periodic screening, diagnosis, and treatment; and
(3) current, research-based best practice models.
The plan must be designed to make optimal use of existing public resources.
(c) The committee expires June 30, 2003.
[EFFECTIVE DATE.] This section is effective the day following final enactment.
Sec. 19. [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. [SPECIAL EDUCATION AID.] For special education aid according to Minnesota Statutes, section 125A.75:
$507,448,000 . . . . . 2002
$531,481,000 . . . . . 2003
The 2002 appropriation includes $47,400,000 for 2001 and $460,048,000 for 2002.
The 2003 appropriation includes $51,116,000 for 2002 and $480,365,000 for 2003.
Subd. 3. [AID FOR CHILDREN WITH A DISABILITY.] For aid according to Minnesota Statutes, section 125A.75, subdivision 3, for children with a disability placed in residential facilities within the district boundaries for whom no district of residence can be determined:
$1,877,000 . . . . . 2002
$2,033,000 . . . . . 2003
If the appropriation for either year is insufficient, the appropriation for the other year is available. Any balance in the first year does not cancel but is available in the second year.
Subd. 4. [TRAVEL FOR HOME-BASED SERVICES.] For aid for teacher travel for home-based services according to Minnesota Statutes, section 125A.75, subdivision 1:
$135,000 . . . . . 2002
$138,000 . . . . . 2003
The 2002 appropriation includes $13,000 for 2001 and $122,000 for 2002.
The 2003 appropriation includes $13,000 for 2002 and $125,000 for 2003.
Subd. 5. [SPECIAL EDUCATION EXCESS COST AID.] For excess cost aid:
$102,665,000 . . . . . 2002
$104,773,000 . . . . . 2003
The 2002 appropriation includes $9,889,000 for 2001 and $92,776,000 for 2002.
The 2003 appropriation includes $10,308,000 for 2002 and $94,465,000 for 2003.
Subd. 6. [LITIGATION COSTS.] For paying the costs a district incurs under Minnesota Statutes, section 125A.75, subdivision 8:
$375,000 . . . . . 2002
$375,000 . . . . . 2003
Subd. 7. [TRANSITION PROGRAMS; STUDENTS WITH DISABILITIES.] For aid for transition programs for pupils with disabilities according to Minnesota Statutes, section 124D.454:
$8,954,000 . . . . . 2002
$8,939,000 . . . . . 2003
The 2002 appropriation includes $896,000 for 2001 and $8,058,000 for 2002.
The 2003 appropriation includes $895,000 for 2002 and $8,044,000 for 2003.
Subd. 8. [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 125A.79, subdivision 4:
$350,000 . . . . . 2002
$350,000 . . . . . 2003
Subd. 9. [OUT-OF-STATE TUITION SPECIAL EDUCATION.] For special education out-of-state tuition according to Minnesota Statutes, section 125A.79, subdivision 8:
$250,000 . . . . . 2002
Subd. 10. [BEST PRACTICES GRANT.] For a best practices grant to intermediate school districts Nos. 287, 916, and 917:
$1,000,000 . . . . . 2002
The intermediate school districts must use the grant proceeds to train teachers of special needs students under Laws 1998, chapter 398, article 5, section 42.
Subd. 11. [USE OF SYMPATHOMIMETIC MEDICATIONS; STUDY.] For the purpose of contracting with a qualified expert to determine and report, consistent with Minnesota Statutes, chapter 13, the number and overall incidence rate of Minnesota children ages three to 18, by age, grade level, gender, and race, diagnosed with attention deficit disorder (ADD) or attention deficit hyperactivity disorder (ADHD) currently taking sympathomimetic medications such as Ritalin:
$50,000 . . . . . 2002
In preparing the report, the contractor also must determine the number and overall incidence rate of children not identified with ADD or ADHD currently taking sympathomimetic medications such as Ritalin. The contractor is encouraged to examine the number of children who take sympathomimetic medications at home and not at school, the previous interventions tried with children taking sympathomimetic medications, the types of practitioners who prescribe the sympathomimetic medications, and what pressures families have experienced in terms of providing their children with sympathomimetic medications. The commissioner must submit the report to the education committees of the legislature by February 15, 2002.
ARTICLE 4
FACILITIES AND TECHNOLOGY
Section 1. Minnesota Statutes 2000, section 16B.616, subdivision 4, is amended to read:
Subd. 4. [ENFORCEMENT.] (a) A statutory or home rule charter city that is not covered by the code because of action taken under section 16B.72 or 16B.73 is responsible for enforcement in the city of the code's requirements for bleacher safety. In all other areas where the code does not apply because of action taken under section 16B.72 or 16B.73, the county is responsible for enforcement of those requirements.
(b) Municipalities that have not adopted the code may enforce the code requirements for bleacher safety by either entering into a joint powers agreement for enforcement with another municipality that has adopted the code or contracting for enforcement with a qualified and certified building official or state licensed design professional to enforce the code.
(c) Municipalities, school districts, organizations, individuals, and other persons operating or owning places of public accommodation with bleachers that are subject to the safety requirements in subdivision 3 shall provide a signed certification of compliance to the commissioner by January 1, 2002. For bleachers subject to the exception in subdivision 3, clause (1), entities covered by this paragraph must have on file a bleacher safety management plan and amortization schedule. The certification shall be prepared by a qualified and certified building official or state licensed design professional and shall certify that the bleachers have been inspected and are in compliance with the requirements of this section and are structurally sound. For bleachers owned by a school district or nonpublic school, the person the district or nonpublic school designates to be responsible for buildings and grounds may make the certification.
Sec. 2. Minnesota Statutes 2000, section 123B.53, subdivision 1, is amended to read:
Subdivision 1. [DEFINITIONS.] (a) For purposes of this section, the eligible debt service revenue of a district is defined as follows:
(1) the amount needed to produce between five and six percent in excess of the amount needed to meet when due the principal and interest payments on the obligations of the district for eligible projects according to subdivision 2, including the amounts necessary for repayment of energy loans according to section 216C.37 or sections 298.292 to 298.298, debt service loans and capital loans, lease purchase payments under section 126C.40, subdivision 2, alternative facilities levies under section 123B.59, subdivision 5, minus
(2) the amount of debt service excess levy reduction for that school year calculated according to the procedure established by the commissioner.
(b) The obligations in this paragraph are excluded from eligible debt service revenue:
(1) obligations under section 123B.61;
(2) the part of debt service principal and interest paid from the taconite environmental protection fund or northeast Minnesota economic protection trust;
(3) obligations issued under Laws 1991, chapter 265, article 5, section 18, as amended by Laws 1992, chapter 499, article 5, section 24; and
(4) obligations under section 123B.62.
(c) For purposes of this section, if a preexisting school district reorganized under sections 123A.35 to 123A.43, 123A.46, and 123A.48 is solely responsible for retirement of the preexisting district's bonded indebtedness, capital loans or debt service loans, debt service equalization aid must be computed separately for each of the preexisting districts.
(d) For purposes of this section, "revenue eligible for second tier debt equalization" means the eligible debt service revenue according to paragraphs (a) to (c) for projects receiving a positive review and comment according to section 123B.70 and receiving voter approval or school district approval after January 1, 2000, or, for projects not requiring a review and comment, that are approved by the commissioner after January 1, 2000.
Sec. 3. Minnesota Statutes 2000, section 123B.53, subdivision 2, is amended to read:
Subd. 2. [ELIGIBILITY.] (a) The following portions of a district's debt service levy qualify for debt service equalization:
(1) debt service for repayment of principal and interest on bonds issued before July 2, 1992;
(2) debt service for bonds refinanced after July 1, 1992, if the bond schedule has been approved by the commissioner and, if necessary, adjusted to reflect a 20-year maturity schedule; and
(3) debt service for bonds issued after July 1, 1992, for construction projects that have received a positive
review and comment according to section 123B.71, if the commissioner has determined that the district has met the
criteria under section 126C.69, subdivision 3, except section 126C.69, subdivision 3, paragraph (a), clause
(2), and if the bond schedule has been approved by the commissioner and, if necessary, adjusted to reflect a
20-year maturity schedule.
(b) The criterion described in section 126C.69, subdivision 3, paragraph (a), clause (9), does not apply to bonds authorized by elections held before July 1, 1992.
(c) For the purpose of this subdivision the department shall determine the eligibility for sparsity at the location of the new facility, or the site of the new facility closest to the nearest operating school if there is more than one new facility.
(d) Notwithstanding paragraphs (a) to (c), debt service for repayment of principal and interest on bonds issued after July 1, 1997, does not qualify for debt service equalization aid unless the primary purpose of the facility is to serve students in kindergarten through grade 12.
Sec. 4. Minnesota Statutes 2000, section 123B.53, subdivision 4, is amended to read:
Subd. 4. [DEBT SERVICE EQUALIZATION REVENUE.] (a) The debt service equalization revenue of a district equals the sum of the first tier debt service equalization revenue and the second tier debt service equalization revenue.
(b) The first tier debt service equalization revenue of a district equals the greater of zero or the eligible debt service revenue minus the amount raised by a levy of 12 percent times the adjusted net tax capacity of the district minus the second tier debt service equalization revenue of the district.
(c) The second tier debt service equalization revenue of a district equals the greater of zero or the lesser of the eligible debt service revenue minus the amount raised by a levy of 20 percent times the adjusted net tax capacity of the district or the district's revenue eligible for second tier debt equalization.
Sec. 5. Minnesota Statutes 2000, section 123B.53, subdivision 5, is amended to read:
Subd. 5. [EQUALIZED DEBT SERVICE LEVY.] To obtain debt service equalization revenue, a district must
levy an amount not to exceed the district's debt service equalization revenue (a) The equalized debt service
levy of a district equals the sum of the first tier equalized debt service levy and the second tier equalized debt service
levy.
(b) A district's first tier equalized debt service levy equals the district's first tier debt service equalization 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 adjusted pupil units in the district for the school year ending in the year prior to the year the levy is certified; to
(2) $4,000.
(c) A district's second tier equalized debt service levy equals the district's second tier debt service equalization 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 adjusted pupil units in the district for the school year ending in the year prior to the year the levy is certified; to
(2) $10,000.
Sec. 6. Minnesota Statutes 2000, section 123B.54, is amended to read:
123B.54 [DEBT SERVICE APPROPRIATION.]
(a) $33,141,000 in fiscal year 2000, $29,400,000 in fiscal year 2001, $26,934,000 in fiscal year 2002, and
$24,540,000 in fiscal year 2003 and each year thereafter is There is annually appropriated from the
general fund to the commissioner of children, families, and learning the amounts necessary for payment
of debt service equalization aid under section 123B.53.
(b) The appropriations in paragraph (a) must be reduced by the amount of any money specifically appropriated for the same purpose in any year from any state fund.
Sec. 7. Minnesota Statutes 2000, section 123B.57, subdivision 3, is amended to read:
Subd. 3. [HEALTH AND SAFETY REVENUE.] A district's health and safety revenue for a fiscal year equals:
(1) the sum of (a) the total approved cost of the district's hazardous substance plan for fiscal years 1985 through 1989, plus (b) the total approved cost of the district's health and safety program for fiscal year 1990 through the fiscal year to which the levy is attributable, excluding expenditures funded with bonds issued under section 123B.59 or 123B.62, or chapter 475; certificates of indebtedness or capital notes under section 123B.61; levies under section 123B.58, 123B.59, 123B.63, or 126C.40, subdivision 1 or 6; and other federal, state, or local revenues, minus
(2) the sum of (a) the district's total hazardous substance aid and levy for fiscal years 1985 through 1989 under
sections 124.245 and 275.125, subdivision 11c, plus (b) the district's health and safety revenue under this
subdivision, for years before the fiscal year to which the levy is attributable, plus (c) the amount of other federal,
state, or local receipts for the district's hazardous substance or health and safety programs for fiscal year 1985
through the fiscal year to which the levy is attributable.
Sec. 8. Minnesota Statutes 2000, section 123B.57, subdivision 6, is amended to read:
Subd. 6. [USES OF HEALTH AND SAFETY REVENUE.] Health and safety revenue may be used only for approved expenditures necessary to correct fire safety hazards, life safety hazards, or for the removal or encapsulation of asbestos from school buildings or property owned or being acquired by the district, asbestos-related repairs, cleanup and disposal of polychlorinated biphenyls found in school buildings or property owned or being acquired by the district, or the cleanup, removal, disposal, and repairs related to storing heating fuel or transportation fuels such as alcohol, gasoline, fuel oil, and special fuel, as defined in section 296A.01, labor and industry regulated facility and equipment hazards, and health, safety, and environmental management. Health and safety revenue must not be used to finance a lease purchase agreement, installment purchase agreement, or other deferred payments agreement. Health and safety revenue must not be used for the construction of new facilities or the purchase of portable classrooms, for interest or other financing expenses, or for energy efficiency projects under section 123B.65. The revenue may not be used for a building or property or part of a building or property used for post-secondary instruction or administration or for a purpose unrelated to elementary and secondary education.
Sec. 9. Minnesota Statutes 2000, section 123B.71, subdivision 1, is amended to read:
Subdivision 1. [CONSULTATION.] A school district shall consult with the commissioner of children, families,
and learning before developing any plans and specifications to construct, remodel, or improve the building or site
of an educational facility for which the estimated cost exceeds $100,000 $250,000. This
consultation shall occur before a referendum for bonds, solicitation for bids, or use of capital expenditure facilities
revenue according to section 126C.10, subdivision 14, clause (2). The commissioner may require the district to
participate in a management assistance plan before conducting a review and comment on the project.
Sec. 10. Minnesota Statutes 2000, section 123B.71, subdivision 4, is amended to read:
Subd. 4. [PLAN SUBMITTAL.] For a project for which consultation is required under subdivision 1, the
commissioner, after the consultation required in subdivision 1, may require a school district to submit the
following preliminary and final plans for approval:
(a) two sets of preliminary plans for each new building or addition, and
(b) one set of final plans for each construction, remodeling, or site improvement project. The
commissioner shall approve or disapprove the plans within 90 days after submission.
Final plans shall meet all applicable state laws, rules, and codes concerning public buildings, including sections
16B.59 to 16B.73. The department may furnish to a school district plans and specifications for temporary school
buildings containing two classrooms or less.
Sec. 11. Minnesota Statutes 2000, section 123B.71, subdivision 8, is amended to read:
Subd. 8. [REVIEW AND COMMENT.] A school district, a special education cooperative, or a cooperative unit
of government, as defined in section 123A.24, subdivision 2, 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 $500,000 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. 12. Minnesota Statutes 2000, section 123B.71, subdivision 9, is amended to read:
Subd. 9. [INFORMATION REQUIRED.] A school board proposing to construct a facility described in subdivision 8 shall submit to the commissioner a proposal containing information including at least the following:
(a) the geographic area proposed to be served, whether within or outside the boundaries of the school
district;
(b) the people proposed to be served, including census findings and projections for the next ten years of the
number of preschool and school-aged people in the area;
(c) the reasonably anticipated need for the facility or service to be provided;
(d) a description of the construction in reasonable detail, including: the expenditures contemplated; the
estimated annual operating cost, including the anticipated salary and number of new staff necessitated by the
proposal; and an evaluation of the energy efficiency and effectiveness of the construction, including estimated annual
energy costs; and a description of the telephone capabilities of the facility and its classrooms;
(e) a description of existing facilities within the area to be served and within school districts adjacent to the
area to be served; the extent to which existing facilities or services are used; the extent to which alternate space is
available, including other school districts, post-secondary institutions, other public or private buildings, or other
noneducation community resources; and the anticipated effect that the facility will have on existing facilities and
services;
(f) the anticipated benefit of the facility to the area;
(g) if known, the relationship of the proposed construction to any priorities that have been established for the
area to be served;
(h) the availability and manner of financing the facility and the estimated date to begin and complete the
facility;
(i) desegregation requirements that cannot be met by any other reasonable means;
(j) the relationship of the proposed facility to the cooperative integrated learning needs of the area;
(k) the effects of the proposed facility on the district's operating budget;
(l) the level of collaboration at the facility between the district and other governmental or nonprofit entities;
and
(m) the extent to which the district has minimized administrative overhead among facilities.
(1) the geographic area and population to be served, preschool through grade 12 student enrollments for the past five years, and student enrollment projections for the next five years;
(2) a list of existing facilities by year constructed, their uses, and an assessment of the extent to which alternate facilities are available within the school district boundaries and in adjacent school districts;
(3) a list of the specific deficiencies of the facility that demonstrate the need for a new or renovated facility to be provided, and a list of the specific benefits that the new or renovated facility will provide to the students, teachers, and community users served by the facility;
(4) the relationship of the project to any priorities established by the school district, educational cooperatives that provide support services, or other public bodies in the service area;
(5) a specification of how the project will increase community use of the facility and whether and how the project will increase collaboration with other governmental or nonprofit entities;
(6) a description of the project, including the specification of site and outdoor space acreage and square footage allocations for classrooms, laboratories, and support spaces; estimated expenditures for the major portions of the project; and the dates the project will begin and be completed;
(7) a specification of the source of financing the project; the scheduled date for a bond issue or school board action; a schedule of payments, including debt service equalization aid; and the effect of a bond issue on local property taxes by the property class and valuation;
(8) an analysis of how the proposed new or remodeled facility will affect school district operational or administrative staffing costs, and how the district's operating budget will cover any increased operational or administrative staffing costs;
(9) a description of the consultation with local or state road and transportation officials on school site access and safety issues, and the ways that the project will address those issues;
(10) a description of how indoor air quality issues have been considered and a certification that the architects and engineers designing the facility will have professional liability insurance;
(11) as required under section 123B.72, for buildings coming into service after July 1, 2002, a certification that the plans and designs for the extensively renovated or new facility's heating, ventilation, and air conditioning systems will meet or exceed code standards; will provide for the monitoring of outdoor airflow and total airflow of ventilation systems; and will provide an indoor air quality filtration system that meets ASHRAE standard 52.1; and
(12) a specification of any desegregation requirements that cannot be met by any other reasonable means.
Sec. 13. Minnesota Statutes 2000, section 126C.63, subdivision 8, is amended to read:
Subd. 8. [MAXIMUM EFFORT DEBT SERVICE LEVY.] "Maximum effort debt service levy" means the lesser of:
(1) a levy in whichever of the following amounts is applicable:
(a) in any district receiving a debt service loan for a debt service levy payable in 2002 and thereafter, or granted a capital loan after January 1, 2001, a levy in total dollar amount computed at a rate of 30 percent of adjusted net tax capacity for taxes payable in 2002 and thereafter;
(b) in any district receiving a debt service loan for a debt service levy payable in 1991 and thereafter, or granted a capital loan after January 1, 1990, a levy in a total dollar amount computed at a rate of 24 percent of adjusted net tax capacity for taxes payable in 1991 and thereafter;
(b) (c) in any district granted a debt service loan after July 31, 1981, or granted a capital loan
which is approved after July 31, 1981, a levy in a total dollar amount computed as a tax rate of 21.92 percent on the
adjusted net tax capacity for taxes payable in 1991 and thereafter; or
(2) a levy in any district for which a capital loan was approved prior to August 1, 1981, a levy in a total dollar amount equal to the sum of the amount of the required debt service levy and an amount which when levied annually will in the opinion of the commissioner be sufficient to retire the remaining interest and principal on any outstanding loans from the state within 30 years of the original date when the capital loan was granted.
The board in any district affected by the provisions of clause (2) may elect instead to determine the amount of its levy according to the provisions of clause (1). If a district's capital loan is not paid within 30 years because it elects to determine the amount of its levy according to the provisions of clause (2), the liability of the district for the amount of the difference between the amount it levied under clause (2) and the amount it would have levied under clause (1), and for interest on the amount of that difference, must not be satisfied and discharged pursuant to Minnesota Statutes 1988, or an earlier edition of Minnesota Statutes if applicable, section 124.43, subdivision 4.
Sec. 14. Minnesota Statutes 2000, section 126C.69, subdivision 2, is amended to read:
Subd. 2. [CAPITAL LOANS ELIGIBILITY.] Beginning July 1, 1999, a district is not eligible for a capital loan
unless the district's estimated net debt tax rate as computed by the commissioner after debt service equalization aid
would be more than 24 30 percent of adjusted net tax capacity. The estimate must assume a 20-year
maturity schedule for new debt.
Sec. 15. Minnesota Statutes 2000, section 126C.69, subdivision 3, is amended to read:
Subd. 3. [DISTRICT REQUEST FOR REVIEW AND COMMENT.] A district or a joint powers district that intends to apply for a capital loan must submit a proposal to the commissioner for review and comment according to section 123B.71 by July 1 of an odd-numbered year. The commissioner shall prepare a review and comment on the proposed facility, regardless of the amount of the capital expenditure required to construct the facility. In addition to the information provided under section 123B.71, subdivision 9, the commissioner shall require that predesign packages comparable to those required under section 16B.335 be prepared by the applicant school district. The predesign packages must be sufficient to define the scope, cost, and schedule of the project and must demonstrate that the project has been analyzed according to appropriate space needs standards and also consider the following criteria in determining whether to make a positive review and comment.
(a) To grant a positive review and comment the commissioner shall determine that all of the following conditions are met:
(1) the facilities are needed for pupils for whom no adequate facilities exist or will exist;
(2) the district will serve, on average, at least 80 pupils per grade or is eligible for elementary or secondary
sparsity revenue there is evidence to indicate that the facilities will have a useful public purpose for at least
the term of the bonds;
(3) no form of cooperation with another district would provide the necessary facilities;
(4) the facilities are comparable in size and quality to facilities recently constructed in other districts that have similar enrollments;
(5) the facilities are comparable in size and quality to facilities recently constructed in other districts that are financed without a capital loan;
(6) the district is projected to maintain or increase its average daily membership over the next five years or
is eligible for elementary or secondary sparsity revenue have adequate funds in its general operating budget
to support a quality education for its students for at least the next five years;
(7) the current facility poses a threat to the life, health, and safety of pupils, and cannot reasonably be brought into compliance with fire, health, or life safety codes;
(8) the district has made a good faith effort, as evidenced by its maintenance expenditures, to adequately maintain the existing facility during the previous ten years and to comply with fire, health, and life safety codes and state and federal requirements for handicapped accessibility;
(9) the district has made a good faith effort to encourage integration of social service programs within the new
facility; and
(10) evaluations by boards of adjacent districts have been received; and
(11) the proposal includes a comprehensive technology plan that assures information access for the students, parents, and community.
(b) The commissioner may grant a negative review and comment if:
(1) the state demographer has examined the population of the communities to be served by the facility and determined that the communities have not grown during the previous five years;
(2) the state demographer determines that the economic and population bases of the communities to be served by the facility are not likely to grow or to remain at a level sufficient, during the next ten years, to ensure use of the entire facility;
(3) the need for facilities could be met within the district or adjacent districts at a comparable cost by leasing, repairing, remodeling, or sharing existing facilities or by using temporary facilities;
(4) the district plans do not include cooperation and collaboration with health and human services agencies and other political subdivisions; or
(5) if the application is for new construction, an existing facility that would meet the district's needs could be purchased at a comparable cost from any other source within the area.
Sec. 16. Minnesota Statutes 2000, section 126C.69, subdivision 9, is amended to read:
Subd. 9. [LOAN AMOUNT LIMITS.] (a) A loan must not be recommended for approval for a district exceeding an amount computed as follows:
(1) the amount requested by the district under subdivision 6;
(2) plus the aggregate principal amount of general obligation bonds of the district outstanding on June 30 of the
year following the year the application was received, not exceeding the limitation on net debt of the district in
section 475.53, subdivision 4, or 363 450 percent of its adjusted net tax capacity as most recently
determined, whichever is less;
(3) less the maximum net debt permissible for the district on December 1 of the year the application is received,
under the limitation in section 475.53, subdivision 4, or 363 450 percent of its adjusted net tax
capacity as most recently determined, whichever is less;
(4) less any amount by which the amount voted exceeds the total cost of the facilities for which the loan is granted.
(b) The loan may be approved in an amount computed as provided in paragraph (a), clauses (1) to (3), subject to later reduction according to paragraph (a), clause (4).
Sec. 17. Minnesota Statutes 2000, section 126C.69, subdivision 12, is amended to read:
Subd. 12. [CONTRACT.] (a) Each capital loan must be evidenced by a contract between the district and the state
acting through the commissioner. The contract must obligate the state to reimburse the district, from the maximum
effort school loan fund, for eligible capital expenses for construction of the facility for which the loan is granted, an
amount computed as provided in subdivision 9. The commissioner must receive from the district a certified
resolution of the board estimating the costs of construction and reciting that contracts for construction of the facilities
for which the loan is granted have been awarded and, that bonds of the district have been issued
and sold in the amount necessary to pay all estimated costs of construction in excess of the amount of the loan,
and that all work, when completed, will meet or exceed standards established in the state building code. The
contract must obligate the district to repay the loan out of the excesses of its maximum effort debt service levy over
its required debt service levy, including interest at a rate equal to the weighted average annual rate payable on
Minnesota state school loan bonds issued or reissued for the project and disbursed to the districts on a
reimbursement basis, but in no event less than 3-1/2 percent per year on the principal amount from time to time
unpaid.
(b) The district must each year, as long as it is indebted to the state, levy for debt service (i) the amount of its maximum effort debt service levy or (ii) the amount of its required debt service levy, whichever is greater, except as the required debt service levy may be reduced by a loan under section 126C.68. The district shall remit payments to the commissioner according to section 126C.71.
(c) The commissioner shall supervise the collection of outstanding accounts due the fund and may, by notice to the proper county auditor, require the maximum levy to be made as required in this subdivision. Interest on capital loans must be paid on December 15 of the year after the year the loan is granted and annually in later years. By September 30, the commissioner shall notify the county auditor of each county containing taxable property situated within the district of the amount of the maximum effort debt service levy of the district for that year. The county auditor or auditors shall extend upon the tax rolls an ad valorem tax upon all taxable property within the district in the aggregate amount so certified.
Sec. 18. Minnesota Statutes 2000, section 126C.69, subdivision 15, is amended to read:
Subd. 15. [BOND SALE LIMITATIONS.] A district having an outstanding state loan must not issue and sell any bonds on the public market, except to refund state loans, unless it agrees to make the maximum effort debt service levy in each later year at the higher rate provided in section 126C.63, subdivision 8, and unless it schedules the maturities of the bonds according to section 475.54, subdivision 2. A district that refunds bonds at a lower interest rate may continue to make the maximum effort debt service levy in each later year at the current rate provided in section 126C.63, subdivision 8, if the district can demonstrate to the commissioner's satisfaction that the district's repayments of the state loan will not be reduced below the previous year's level. The district must report each sale to the commissioner.
For a capital loan issued prior to July 1, 2001, after a the district's capital loan has been
outstanding for 30 years, the district must not issue bonds on the public market except to refund the loan.
For a capital loan issued on or after July 1, 2001, after the district's capital loan has been outstanding for 20 years, the district must not issue bonds on the public market except to refund the loan.
Sec. 19. Minnesota Statutes 2000, section 136D.281, subdivision 4, is amended to read:
Subd. 4. [REFERENDUM.] (a) The intermediate school board shall not may sell and
issue bonds for acquisition or betterment purposes until in an aggregate amount not to exceed $8,000,000
if:
(1) each member school district board has adopted a resolution authorizing the project;
(2) the intermediate board has prepared and published in a newspaper of general circulation in the district a notice of the public meeting on the intermediate district's intent to sell bonds;
(3) the intermediate board has adopted a resolution authorizing the bonds; and
(4) the question of their issuance has been submitted to the voters of the intermediate school district at a special election held in and for the intermediate district.
(b) The date of the election, the question to be submitted, and all other necessary conduct of the election shall be fixed by the intermediate school board. The election shall be conducted and canvassed under the direction of the intermediate school board in accordance with chapter 205A, insofar as applicable.
(c) If a majority of the total number of votes cast on the question within the intermediate school district is in favor of the question, the intermediate school board may proceed with the sale and issuance of the bonds.
(d) The bonds shall be general obligations of the intermediate school district; however, each member school district must each year certify its proportionate share of the debt service levy on the bonds, with the allocation of its share of that levy determined in accordance with the resolution authorizing the project previously adopted by each member school board. For purposes of section 123B.53, the debt service levies certified for this purpose by an individual member school district shall be considered debt service levies of that school district. By July 1 and December 1 of each year, the school board of each member school district shall transfer to the intermediate school district an amount equal to 50 percent of the debt service levy certified by that member school district in the previous fiscal year to pay its proportionate share.
Sec. 20. Minnesota Statutes 2000, section 136D.741, subdivision 4, is amended to read:
Subd. 4. [REFERENDUM.] (a) The intermediate school board shall not may sell and
issue bonds for acquisition or betterment purposes until in an aggregate amount not to exceed $8,000,000
if:
(1) each member school district board has adopted a resolution authorizing the project;
(2) the intermediate board has prepared and published in a newspaper of general circulation in the district a notice of the public meeting on the intermediate district's intent to sell bonds;
(3) the intermediate board has adopted a resolution authorizing the bonds; and
(4) the question of their issuance has been submitted to the voters of the intermediate school district at a special election held in and for such intermediate district.
(b) The date of such election, the question to be submitted, and all other necessary conduct of such election shall be fixed by the intermediate school board and said election shall be conducted and canvassed under the direction of the intermediate school board in accordance with chapter 205A, insofar as the same may be deemed applicable.
(c) If a majority of the total number of votes cast on the question within the intermediate school district is in favor of the question, the intermediate school board may thereupon proceed with the sale and the issuance of said bonds.
(d) The bonds shall be general obligations of the intermediate school district; however, each member school district must each year certify its proportionate share of the debt service levy on the bonds, with the allocation of its share of that levy determined in accordance with the resolution authorizing the project previously adopted by each member school board. For purposes of section 123B.53, the debt service levies certified for this purpose by an individual member school district shall be considered debt service levies of that school district. By July 1 and December 1 of each year, the school board of each member school district shall transfer to the intermediate school district an amount equal to 50 percent of the debt service levy certified by that member school district in the previous fiscal year to pay its proportionate share.
Sec. 21. Minnesota Statutes 2000, section 136D.88, subdivision 4, is amended to read:
Subd. 4. [REFERENDUM.] (a) The intermediate school board shall not may sell and
issue bonds for acquisition or betterment purposes until in an aggregate amount not to exceed $8,000,000
if:
(1) each member school district board has adopted a resolution authorizing the project;
(2) the intermediate board has prepared and published in a newspaper of general circulation in the district a notice of the public meeting on the intermediate district's intent to sell bonds;
(3) the intermediate board has adopted a resolution authorizing the bonds; and
(4) the question of their issuance has been submitted to the voters of the intermediate school district at a special election held in and for the intermediate district.
(b) The date of the election, the question to be submitted, and all other necessary conduct of the election shall be fixed by the intermediate school board. The election shall be conducted and canvassed under the direction of the intermediate school board in accordance with chapter 205A, insofar as applicable.
(c) If a majority of the total number of votes cast on the question within the intermediate school district is in favor of the question, the intermediate school board may thereupon proceed with the sale and issuance of the bonds.
(d) The bonds shall be general obligations of the intermediate school district; however, each member school district must each year certify its proportionate share of the debt service levy on the bonds, with the allocation of its share of that levy determined in accordance with the resolution authorizing the project previously adopted by each member school board. For purposes of section 123B.53, the debt service levies certified for this purpose by an individual member school district shall be considered debt service levies of that school district. By July 1 and December 1 of each year, the school board of each member school district shall transfer to the intermediate school district an amount equal to 50 percent of the debt service levy certified by that member school district in the previous fiscal year to pay its proportionate share.
Sec. 22. Minnesota Statutes 2000, section 475.53, subdivision 4, is amended to read:
Subd. 4. [SCHOOL DISTRICTS.] Except as otherwise provided by law, no school district shall be subject to a
net debt in excess of ten 15 percent of the actual market value of all taxable property situated within
its corporate limits, as computed in accordance with this subdivision. The county auditor of each county containing
taxable real or personal property situated within any school district shall certify to the district upon request the
market value of all such property. Whenever the commissioner of revenue, in accordance with section 127A.48,
subdivisions 1 to 6, has determined that the net tax capacity of any district furnished by county auditors is not based
upon the market value of taxable property in the district, the commissioner of revenue shall certify to the district
upon request the ratio most recently ascertained to exist between such value and the actual market value of property
within the district. The actual market value of property within a district, on which its debt limit under this
subdivision is based, is (a) the value certified by the county auditors, or (b) this value divided by the ratio certified
by the commissioner of revenue, whichever results in a higher value.
Sec. 23. Laws 2000, chapter 489, article 5, section 21, is amended to read:
Sec. 21. [ONE-TIME DEFERRED MAINTENANCE AID.]
(a) For fiscal year 2001 only, a district's one-time deferred maintenance aid is equal to:
(1) $10 times the adjusted marginal cost pupil units for the school year; plus
(2) $21.90 times the adjusted marginal cost pupil units for the school year for a district that does not qualify for alternative facilities bonding under Minnesota Statutes, section 123B.59, or under Laws 1999, chapter 241, article 4, section 25.
(b) Aid received under this section must be used for deferred maintenance, to make accessibility improvements, or to make fire, safety, or health repairs.
(c) This aid is paid entirely in fiscal year 2001 based on estimated data. By January 31, 2002, the department of children, families, and learning shall recalculate the aid for each district using actual data, and shall adjust the general education aid paid to school districts for fiscal year 2002 by the amount of the difference between the estimated aid and the actual aid.
Sec. 24. Laws 2000, chapter 489, article 7, section 15, subdivision 3, is amended to read:
Subd. 3. [COOPERATIVE SECONDARY FACILITY FACILITIES NEEDS; PLANNING AND
EXPENSES.] For a grant and administrative expenses to facilitate for facilities and curricular
planning for a cooperative secondary facility under a joint powers agreement for school district
districts Nos. 411, Balaton, 402, Hendricks, 403, Ivanhoe, 404, Lake Benton, 418, Russell, 584,
Ruthton, and 409, Tyler:
$100,000 . . . . . 2001 2002
This is a one-time appropriation. This appropriation is available until June 30, 2003.
Sec. 25. [RESTORATION OF DISABLED ACCESS LEVY AUTHORITY.]
Subdivision 1. [PINE CITY.] Notwithstanding the time limits in Minnesota Statutes, section 123B.58, subdivision 3, independent school district No. 578, Pine City, may levy its remaining disabled access levy authority over five or fewer years.
Subd. 2. [SOUTHLAND.] Notwithstanding the time limits in Minnesota Statutes, section 123B.58, subdivision 3, independent school district No. 500, Southland, may levy up to $66,000 of its remaining disabled access levy authority over five or fewer years.
[EFFECTIVE DATE.] This section is effective the day following final enactment.
Sec. 26. [INTERMEDIATE SCHOOL DISTRICTS; BONDING AUTHORITY WITHOUT VOTER APPROVAL.]
Subdivision 1. [INTERMEDIATE SCHOOL DISTRICT NO. 916.] Notwithstanding Minnesota Statutes, chapter 136D, the school board of intermediate school district No. 916 may sell and issue up to $1,500,000 in bonds for acquisition and betterment purposes upon adoption of a resolution by the board authorizing the bonds.
The bonds shall be general obligations of the intermediate school district; however, each member school district must each year certify its proportionate share of the debt service levy on the bonds, with the allocation of its share of that levy determined in accordance with the resolution authorizing the project previously adopted by each member school board. For purposes of section 123B.53, the debt service levies certified for this purpose by an individual member school district shall be considered debt service levies of that school district. By July 1 and December 1 of each year, the school board of each member school district shall transfer to the intermediate school district an amount equal to 50 percent of the debt service levy certified by that member school district in the previous fiscal year to pay its proportionate share.
Subd. 2. [INTERMEDIATE SCHOOL DISTRICT NO. 917.] Notwithstanding Minnesota Statutes, chapter 136D, the school board of intermediate school district No. 917 may sell and issue up to $4,000,000 in bonds for acquisition and betterment purposes upon adoption of a resolution by the board authorizing the bonds.
The bonds shall be general obligations of the intermediate school district; however, each member school district must each year certify its proportionate share of the debt service levy on the bonds, with the allocation of its share of that levy determined in accordance with the resolution authorizing the project previously adopted by each member school board. For purposes of section 123B.53, the debt service levies certified for this purpose by an individual member school district shall be considered debt service levies of that school district. By July 1 and December 1 of each year, the school board of each member school district shall transfer to the intermediate school district an amount equal to 50 percent of the debt service levy certified by that member school district in the previous fiscal year to pay its proportionate share.
Sec. 27. [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. [HEALTH AND SAFETY AID.] For health and safety aid according to Minnesota Statutes, section 123B.57, subdivision 5:
$14,980,000 . . . . . 2002
$14,550,000 . . . . . 2003
The 2002 appropriation includes $1,480,000 for 2001 and $13,500,000 for 2002.
The 2003 appropriation includes $1,500,000 for 2002 and $13,050,000 for 2003.
Subd. 3. [DEBT SERVICE AID.] For debt service aid according to Minnesota Statutes, section 123B.53, subdivision 6:
$25,989,000 . . . . . 2002
$33,360,000 . . . . . 2003
The 2002 appropriation includes $2,890,000 for 2001 and $23,099,000 for 2002.
The 2003 appropriation includes $2,567,000 for 2002 and $30,793,000 for 2003.
Subd. 4. [INTERACTIVE TELEVISION (ITV) AID.] For interactive television (ITV) aid under Minnesota Statutes, section 126C.40, subdivision 4:
$1,418,000 . . . . . 2002
$129,000 . . . . . 2003
The 2002 appropriation includes $260,000 for 2001 and $1,158,000 for 2002.
The 2003 appropriation includes $129,000 for 2002 and $0 for 2003.
Subd. 5. [ALTERNATIVE FACILITIES BONDING AID.] For alternative facilities bonding aid, according to Minnesota Statutes, section 123B.59, subdivision 1:
$19,279,000 . . . . . 2002
$19,287,000 . . . . . 2003
The 2002 appropriation includes $1,921,000 for 2001 and $17,358,000 for 2002.
The 2003 appropriation includes $1,929,000 for 2002 and $17,358,000 for 2003.
Subd. 6. [TELECOMMUNICATION ACCESS COST REVENUE.] For telecommunication access cost revenue under Minnesota Statutes, section 125B.25:
$17,968,000 . . . . . 2002
$1,852,000 . . . . . 2003
The 2002 appropriation includes $1,300,000 for 2001 and $16,668,000 for 2002.
The 2003 appropriation includes $1,852,000 for 2002 and $0 for 2003.
If the appropriation amount is insufficient, the commissioner shall reduce the reimbursement rate in Minnesota Statutes, section 125B.25, subdivisions 5 and 6, and the revenue for the 2001-2002 school year shall be prorated. The reimbursement rate shall not exceed 100 percent.
Subd. 7. [FLOODS; DECLINING PUPIL AID.] For declining pupil aid under Laws 1999, chapter 241, article 4, section 23:
$921,000 . . . . . 2002
Sec. 28. [REPEALER.]
Minnesota Statutes 2000, sections 123B.71, subdivisions 3 and 10; 136D.281, subdivision 8; 136D.741, subdivision 8; 136D.88, subdivision 8; and 136D.94, are repealed.
ARTICLE 5
NUTRITION; SCHOOL ACCOUNTING; AND OTHER PROGRAMS
Section 1. Minnesota Statutes 2000, section 123B.75, is amended by adding a subdivision to read:
Subd. 10. [RESERVED REVENUE.] (a) In addition to any other reserve accounts authorized to be established pursuant to other law, a school district may establish one or more reserve accounts in the general fund which will contain revenue appropriated to those accounts by the board. Revenue contained in a reserve account may only be used for the purposes specified by the board and shall not be available for other purposes.
(b) A school district must establish a reserve account for secondary vocational programming. A district must reserve up to the amount of secondary vocational revenue that it received in fiscal year 2001.
Sec. 2. Minnesota Statutes 2000, section 123B.80, subdivision 1, is amended to read:
Subdivision 1. [COMMISSIONER'S AUTHORIZATION.] The commissioner may authorize a board to
transfer money from any fund or account other than the debt redemption fund to another fund or account
according to this section.
Sec. 3. [124D.1156] [FAST BREAK TO LEARNING BREAKFAST PROGRAM.]
Subdivision 1. [ELIGIBILITY.] The commissioner shall provide funding to the 41 targeted breakfast program grant recipients under Laws 1997, First Special Session chapter 4, article 6, section 19, and then to public or nonpublic elementary schools that participate in the federal School Breakfast and Lunch Programs where at least 33 percent of the lunches served to children during the second preceding school year were provided free or at a reduced price. Schools shall not charge student households for fast break to learning meals.
Subd. 2. [PROGRAM.] The fast break to learning school breakfast program enables schools participating in the federal School Breakfast and Lunch Programs to cover the costs for school breakfast without charging student households.
Subd. 3. [PROGRAM REIMBURSEMENT.] State funds are provided to reimburse fast break to learning school breakfasts. Each school year, the state must reimburse schools for the difference between the per meal federal rate of reimbursement and the per meal state average cost. Meals that are reimbursed at a federal rate that is equal to or higher than the state average cost do not qualify for fast break to learning funds. Schools must use the funds to provide school breakfast to school children every day school is in session.
Sec. 4. [124D.1195] [COMMODITY DONATED FOOD REVOLVING FUND.]
A revolving fund is established for the purpose of depositing cash received for commodity donated foods that have been lost, damaged, recalled, or diverted for processing. The state shall use the fund to issue payments for the value of the lost, damaged, recalled, or diverted commodity donated foods and related costs.
Sec. 5. Minnesota Statutes 2000, section 127A.45, subdivision 12, is amended to read:
Subd. 12. [PAYMENT PERCENTAGE FOR CERTAIN AIDS.] One hundred percent of the aid for the current
fiscal year must be paid for the following aids: reimbursement for transportation to post-secondary institutions,
according to section 124D.09, subdivision 22; aid for the program for adults with disabilities, according to section
124D.56, subdivision 2; school lunch aid, according to section 124D.111; hearing impaired support services
aid, according to section 124D.57; Indian post-secondary preparation grants according to section 124D.85;
integration grants according to Laws 1989, chapter 329, article 8, section 14, subdivision 3; and debt service aid
according to section 123B.53, subdivision 6.
Sec. 6. Minnesota Statutes 2000, section 127A.45, is amended by adding a subdivision to read:
Subd. 14a. [STATE NUTRITION PROGRAMS.] Notwithstanding subdivision 3, the state shall pay 100 percent of the aid for the current year according to sections 124D.111, 124D.115, 124D.1156, and 124D.118 based on submitted monthly vouchers showing meals and milk served.
Sec. 7. Minnesota Statutes 2000, section 475.61, subdivision 3, is amended to read:
Subd. 3. [IRREVOCABILITY.] (a) Tax levies so made and filed shall be irrevocable, except as provided in this subdivision.
(b) For purposes of this subdivision, "excess debt redemption fund balance" means the greater of zero or the balance in the district's debt redemption fund as of June 30 of the fiscal year ending in the year before the year the levy is certified, minus any debt redemption fund balance attributable to refunding of existing bonds, minus the amount of the levy reduction for the current year and the prior year under paragraphs (e) and (f), minus five percent of the district's required debt service levy for the next year.
(c) By July 15 each year, a district shall report to the commissioner of children, families, and learning the amount of the districts' debt redemption fund balance as of June 30 of the prior year attributable to refunding of existing bonds.
(d) By August 15 each year, the commissioner shall determine the excess debt redemption fund balance for each school district, and shall certify the amount of the excess balance to the school district superintendent.
(e) In each year when there is on hand any a district has an excess amount in the
debt redemption fund of a school district at the time the district makes its property tax levies, the amount of the
excess shall be certified by the school board to the commissioner. balance, the commissioner shall
report the amount of the excess to the county auditor and the auditor shall reduce the tax levy otherwise to be
included in the rolls next prepared by the amount certified. The commissioner shall prescribe the form and
calculation to be used in computing the excess amount.
(f) The school board may, with the approval of the commissioner, retain all or part of the excess
amount balance if it is necessary to ensure the prompt and full payment of the obligations and any
call premium on the obligations, or will be used for redemption of the obligations in accordance with their terms.
A school district requesting authority to retain all or part of the excess balance shall provide written
documentation to the commissioner describing the rationale for its request by September 15. A school district that
retains an excess may request to transfer the excess to its operating capital account in the general fund under section
123B.80. The school board may, with the approval of the commissioner, specify a tax levy in a higher amount
if necessary because of anticipated tax delinquency or for cash flow needs to meet the required payments from the
debt redemption fund.
(g) If the governing body, including the governing body of a school district, in any year makes an irrevocable appropriation to the debt service fund of money actually on hand or if there is on hand any excess amount in the debt service fund, the recording officer may certify to the county auditor the fact and amount thereof and the auditor shall reduce by the amount so certified the amount otherwise to be included in the rolls next thereafter prepared.
Sec. 8. [FUND TRANSFERS.]
Subdivision 1. [LAPORTE.] Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, on June 30, 2001, independent school district No. 306, LaPorte, may permanently transfer up to $141,000 from the bus purchase account in its transportation fund to its capital expenditure fund without making a levy reduction.
Subd. 2. [CLEVELAND.] Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, on June 30, 2001, independent school district No. 391, Cleveland, may permanently transfer up to $107,000 from its reserved operating capital account in its general fund to the undesignated fund balance.
Subd. 3. [LEWISTON.] (a) Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, for calendar years 2002 through 2012, on June 30 of each year, independent school district No. 857, Lewiston, may permanently transfer up to $175,000 from its capital accounts in its general fund or from its unrestricted general fund to the debt redemption fund.
(b) The eligible debt service revenue and debt service equalization aid, if any, for independent school district No. 857, Lewiston, must be determined prior to the annual transfer of general fund revenue authorized in subdivision 1.
Subd. 4. [RUSSELL.] Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, on June 30, 2001, independent school district No. 418, Russell, may permanently transfer up to $160,000 from its reserved capital accounts in its general fund to the undesignated fund balance.
Subd. 5. [MOUNTAIN LAKE.] Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, on June 30, 2001, independent school district No. 173, Mountain Lake, may permanently transfer up to $300,000 from its reserved capital accounts in its general fund to the undesignated fund balance.
Subd. 6. [ISLE.] (a) Notwithstanding Minnesota Statutes, section 123B.79 or 123B.80, on June 30, 2001, upon approval of the commissioner of children, families, and learning, independent school district No. 473, Isle, may permanently transfer up to $175,000 from its reserved account for disability access to its undesignated general fund balance.
(b) Prior to making the fund transfer, independent school district No. 473, Isle, must demonstrate to the commissioner's satisfaction that the district's school buildings are accessible to students or employees with disabilities.
[EFFECTIVE DATE.] This section is effective the day following final enactment.
Sec. 9. [FUND TRANSFERS; DEBT REDEMPTION FUND.]
Subdivision 1. [ELGIN-MILLVILLE.] Notwithstanding Minnesota Statutes, sections 123B.79, 123B.80, and 475.61, subdivision 4, on June 30, 2001, independent school district No. 806, Elgin-Millville, may permanently transfer up to $100,000 from its debt redemption fund to its reserved capital accounts in its general fund without making a levy reduction.
Subd. 2. [PINE CITY.] (a) Notwithstanding Minnesota Statutes, sections 123B.79, 123B.80, and 475.61, subdivision 4, on June 30, 2001, independent school district No. 578, Pine City, may permanently transfer up to $200,000 from its debt redemption fund to its capital account in its general fund without making a levy reduction.
(b) Revenue transferred under this section must be used to purchase a facility for the area learning center.
Subd. 3. [ROCORI.] Notwithstanding Minnesota Statutes, sections 123B.80, 123B.912, and 475.61, subdivision 4, on June 30, 2001, independent school district No. 750, Rocori, may permanently transfer up to $325,000 from its debt redemption fund to its capital account in its general fund without making a levy reduction.
Subd. 4. [TRI-COUNTY SCHOOLS.] Notwithstanding Minnesota Statutes, sections 123B.79, 123B.80, and 475.61, subdivision 4, on June 30, 2001, independent school district No. 2358, Tri-County schools, may permanently transfer up to $120,000 from its debt redemption fund to its operating capital account in its general fund without making a levy reduction.
Subd. 5. [WATERTOWN-MAYER.] Notwithstanding Minnesota Statutes, sections 123B.79, 123B.80, and 475.61, subdivision 4, on June 30, 2001, independent school district No. 111, Watertown-Mayer, may permanently transfer up to $325,000 from its debt redemption fund to its reserved capital accounts in its general fund without making a levy reduction.
Subd. 6. [HOLDINGFORD.] Notwithstanding Minnesota Statutes, sections 123B.79, 123B.80, and 475.61, subdivision 4, on June 30, 2001, independent school district No. 738, Holdingford, may permanently transfer up to $200,000 from its debt redemption fund to its undesignated general fund balance without making a levy reduction.
Subd. 7. [ROYALTON.] Notwithstanding Minnesota Statutes, sections 123B.79, 123B.80, and 475.61, subdivision 4, on June 30, 2001, independent school district No. 485, Royalton, may permanently transfer up to $64,000 from its debt redemption fund to its reserved capital accounts in its general fund without making a levy reduction.
Subd. 8. [GLENCOE-SILVER LAKE.] Notwithstanding Minnesota Statutes, sections 123B.79, 123B.80, and 475.61, subdivision 4, on June 30, 2001, independent school district No. 2859, Glencoe-Silver Lake, may permanently transfer up to $27,000 from its debt redemption fund to its reserved operating capital account in its general fund without making a levy reduction.
Subd. 9. [PILLAGER.] Notwithstanding Minnesota Statutes, sections 123B.79, 123B.80, and 475.61, subdivision 4, on June 30, 2001, independent school district No. 116, Pillager, may permanently transfer up to $60,000 from its debt redemption fund to its reserved operating capital account in its general fund without making a levy reduction.
[EFFECTIVE DATE.] This section is effective the day following final enactment.
Sec. 10. [OPERATING CAPITAL ACCOUNT DEFICIT; EXCEPTION.]
Notwithstanding Minnesota Statutes, section 123B.78, subdivision 5, independent school district No. 492, Austin, may incur a deficit of up to $4,200,000 in its reserved capital operating account for the Westcott Field improvement project. The deficit must be eliminated by June 30, 2011. Any donations or contributions received by the district for the Westcott Field improvement project must be deposited in the reserved capital operating account.
[EFFECTIVE DATE.] This section is effective the day following final enactment.
Sec. 11. [APPROPRIATIONS.]
Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND LEARNING.] The sums indicated in this section are appropriated from the general fund to the department of children, families, and learning for the fiscal years designated.
Subd. 2. [SCHOOL LUNCH.] (a) For school lunch aid according to Minnesota Statutes, section 124D.111, and Code of Federal Regulations, title 7, section 210.17, and for school milk aid according to Minnesota Statutes, section 124D.118:
$8,710,000 . . . . . 2002
$8,950,000 . . . . . 2003
(b) Not more than $800,000 of the amount appropriated each year may be used for school milk aid.
Subd. 3. [SCHOOL BREAKFAST.] For school breakfast aid under Minnesota Statutes, section 124D.115:
$640,000 . . . . . 2002
$700,000 . . . . . 2003
Subd. 4. [SUMMER FOOD SERVICE REPLACEMENT AID.] For summer food service replacement aid under Minnesota Statutes, section 124D.119:
$150,000 . . . . . 2002
$150,000 . . . . . 2003
Subd. 5. [FAST BREAK TO LEARNING GRANTS.] For fast break to learning grants under Minnesota Statutes, section 124D.1156:
$2,500,000 . . . . . 2002
$2,500,000 . . . . . 2003
Any balance in the first year does not cancel but is available in the second year.
Sec. 12. [REPEALER.]
Minnesota Statutes 2000, section 124D.1155, is repealed.
ARTICLE 6
AGENCY PROVISIONS
Section 1. Minnesota Statutes 2000, section 120A.05, is amended by adding a subdivision to read:
Subd. 14a. [STATE BOARD OF EDUCATION.] "State board of education" or "state board" means the state board of education established under section 127A.03 that is charged with general supervision over educational agencies and other education-related matters.
[EFFECTIVE DATE.] This section is effective January 1, 2002.
Sec. 2. Minnesota Statutes 2000, section 122A.162, is amended to read:
122A.162 [LICENSURE RULES.]
The commissioner may make rules relating to licensure of school personnel not licensed by the board of teaching or board of educational administration.
Sec. 3. Minnesota Statutes 2000, section 122A.163, is amended to read:
122A.163 [TEACHER RULE VARIANCES; COMMISSIONER.]
Notwithstanding any law to the contrary, and only upon receiving the agreement of the state board of teaching
or board of educational administration, whichever has jurisdiction over the licensure, the commissioner of
children, families, and learning may grant a variance to rules governing licensure of teachers for those
teachers persons licensed by the board of teaching or board of educational administration,
whichever has jurisdiction. 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.
Sec. 4. Minnesota Statutes 2000, section 122A.18, subdivision 1, is amended to read:
Subdivision 1. [AUTHORITY TO LICENSE.] (a) The board of teaching must license teachers, as defined in section 122A.15, subdivision 1, except for supervisory personnel, as defined in section 122A.15, subdivision 2.
(b) The commissioner of children, families, and learning board of educational administration
must license supervisory personnel as defined in section 122A.15, subdivision 2, except for athletic coaches.
(c) Licenses under the jurisdiction of the board of teaching and the commissioner of children, families, and learning must be issued through the licensing section of the department.
Sec. 5. Minnesota Statutes 2000, section 122A.18, subdivision 4, is amended to read:
Subd. 4. [EXPIRATION AND RENEWAL.] (a) Each license the department of children, families, and learning
issues through its licensing section must bear the date of issue. Licenses must expire and be renewed according to
the respective rules the board of teaching, the board of educational administration, or the commissioner of
children, families, and learning adopts. Requirements for renewing a license must include showing satisfactory
evidence of successful teaching or administrative experience for at least one school year during the period
covered by the license in grades or subjects for which the license is valid or completing such additional preparation
as the board of teaching prescribes. The commissioner of children, families, and learning board of
educational administration shall establish requirements for renewing the licenses of supervisory personnel
except athletic coaches. The state board of teaching shall establish requirements for renewing the licenses of
athletic coaches.
(b) The board of teaching shall offer alternative continuing relicensure options for teachers who are accepted into and complete the national board for professional teaching standards certification process, and offer additional continuing relicensure options for teachers who earn national board for professional teaching standards certification. Continuing relicensure requirements for teachers who do not maintain national board for professional teaching standards certification are those the board prescribes.
Sec. 6. [122A.191] [DEFINITIONS.]
Subdivision 1. [SCOPE.] For the purposes of sections 122A.191 to 122A.194, the terms defined in this section have the meanings given them, unless another meaning is clearly indicated.
Subd. 2. [BOARD.] "Board" means the board of educational administration.
Subd. 3. [COMMUNITY EDUCATION DIRECTOR.] "Community education director" means a person devoting time to administrative and supervisory duties pertaining to community education and employed as a community education director.
Subd. 4. [PRINCIPAL.] "Principal" means a person who devotes more than 50 percent of the time to administrative or supervisory duties and is employed as an elementary principal, secondary principal, or kindergarten through grade 12 principal. The term also includes assistant principals.
Subd. 5. [SCHOOL ADMINISTRATORS.] "School administrators" means superintendents, principals, special education directors, community education directors, and vocational administrators.
Subd. 6. [SPECIAL EDUCATION DIRECTOR.] "Special education director" means a person devoting time to administrative or supervisory duties for special instruction and services for children and is employed as a special education director. Special education director includes assistant special education directors.
Subd. 7. [SUPERINTENDENT.] "Superintendent" means a school administrator employed pursuant to section 123B.143, subdivision 1, and includes assistant superintendents.
Subd. 8. [VOCATIONAL ADMINISTRATOR.] "Vocational administrator" means a person devoting time to administrative or supervisory duties for vocational education.
Sec. 7. [122A.192] [BOARD OF EDUCATIONAL ADMINISTRATION.]
Subdivision 1. [APPOINTMENT OF MEMBERS; ELIGIBILITY.] The board of educational administration consists of seven members appointed by the governor as follows:
(1) an elementary school principal employed by a school district;
(2) a secondary school principal employed by a school district;
(3) a school superintendent employed by a school district;
(4) a classroom teacher employed by a school district;
(5) a community education director or a special education director;
(6) one higher education representative, who must be a faculty member preparing school administrators; and
(7) a public member, as defined in section 214.02.
In making appointments, the governor shall solicit recommendations from groups representing persons in clauses (1) to (6).
Subd. 2. [TERMS; COMPENSATION; REMOVAL.] Membership terms, removal of members, and the filling of membership vacancies shall be as provided under section 214.09 except the terms expire July 31. The terms of the initial board members must be determined by lot as follows: one member must be appointed for a term that expires August 1, 2002; one member must be appointed for a term that expires August 1, 2003; two members must be appointed for a term that expires August 1, 2004; and three members must be appointed to terms that expire August 1, 2005. The actual and necessary expenses of all members serving on the board shall be as provided in section 214.09, subdivision 3. Members shall not receive the daily payment under section 214.09, subdivision 3. The employer of a member shall not reduce the member's compensation or benefits for the member's absence from employment when engaging in the business of the board. A member shall not be reappointed for more than one additional term.
Subd. 3. [VACANT POSITION.] The position of a member who leaves Minnesota or whose employment status changes to a category different from that from which appointed shall be deemed vacant.
Subd. 4. [ADMINISTRATION.] The provision of staff, administrative services, and office space; the review and processing of complaints; the setting of fees; the selection and duties of an executive secretary to serve the board; and other provisions relating to board operations are as provided in chapter 214. Fiscal year and reporting requirements shall be as provided under sections 214.07 and 214.08.
Sec. 8. [122A.193] [MEETINGS.]
Subdivision 1. [MEETINGS.] The board of educational administration shall meet regularly at the times and places determined by the board. The board shall nominate and elect a chair and other officers from its membership. Meetings shall be called by the chair or at the written request of any three members.
Subd. 2. [EXECUTIVE SECRETARY.] The board of educational administration may hire an executive secretary and other staff or may arrange to share a director and staff with the board of teaching. If the board hires an executive director, the person is in the unclassified service.
Sec. 9. [122A.194] [DUTIES OF BOARD OF EDUCATIONAL ADMINISTRATION.]
Subdivision 1. [LICENSING.] The board shall license school administrators. The board shall adopt rules to license school administrators in accordance with chapter 14. Other than the rules transferred to the board under section 122A.18, subdivision 4, the board may not adopt or amend rules under this section until the rules are approved by law. The rules shall include the licensing of persons who have successfully completed alternative preparation programs under section 122A.27. The board may enter into agreements with the board of teaching regarding multiple license matters.
Subd. 2. [PREPARATION PROGRAMS.] The board shall review and approve preparation programs for school administrators and alternative preparation programs under section 122A.27.
Subd. 3. [RULES FOR CONTINUING EDUCATION REQUIREMENTS.] The board shall adopt rules establishing continuing education requirements which promote continuous improvement and acquisition of new and relevant skills by school administrators.
Subd. 4. [CODE OF ETHICS.] The board shall adopt by rule a code of ethics covering standards of professional practice, including ethical conduct, professional performance, and methods of enforcement, and advise school administrators in interpreting the code of ethics.
Subd. 5. [COMMISSIONER'S REPRESENTATIVE TO COMMENT ON PROPOSED RULE.] Prior to the adoption of any rule that must be submitted to public hearing, a representative of the commissioner of children, families, and learning shall appear before the board and at any hearing required under section 14.14, subdivision 1, to comment on the cost and educational implications of the proposed rule.
Subd. 6. [REGISTER OF PERSONS LICENSED.] The executive director of the board shall keep a record of the proceedings of the board and a register of all persons licensed under this chapter. The register must show the name, address, license number, and the renewal of the license. The board must on July 1 of each year, or as soon thereafter as is practicable, compile a list of licensed school administrators and transmit a copy of the list to the board. A copy of the register must be available during business hours at the office of the board to any interested person.
Subd. 7. [COMMISSIONER'S ASSISTANCE; BOARD MONEY.] The commissioner shall provide all necessary materials and assistance for the transaction of the business of the board and all money received by the board shall be paid into the state treasury as provided by law. The expenses of administering the board of educational administration shall be paid for from appropriations made to the board of educational administration.
Sec. 10. Minnesota Statutes 2000, section 122A.20, subdivision 2, is amended to read:
Subd. 2. [MANDATORY REPORTING.] A school board must report to the board of teaching, the board of
educational administration, or the board of trustees of the Minnesota state colleges and universities, whichever
has jurisdiction over the teacher's or administrator's license, when its teacher or administrator is
discharged or resigns from employment after a charge is filed with the school board under section 122A.41,
subdivisions 6, clauses (1), (2), and (3), and 7, or after charges are filed that are ground for discharge under section
122A.40, subdivision 13, paragraph (a), clauses (1) to (5), or when a teacher or administrator is suspended
or resigns while an investigation is pending under section 122A.40, subdivision 13, paragraph (a) clauses (1) to (5);
122A.41, subdivisions 6, clauses (1), (2), and (3), and 7; or 626.556. The report must be made to the appropriate
licensing board within ten days after the discharge, suspension, or resignation has occurred. The licensing board
to which the report is made must investigate the report for violation of subdivision 1 and the reporting board must
cooperate in the investigation. Notwithstanding any provision in chapter 13 or any law to the contrary, upon written
request from the licensing board having jurisdiction over the teacher's license, a board or school
superintendent shall provide the licensing board with information about the teacher or administrator from
the district's files, any termination or disciplinary proceeding, any settlement or compromise, or any investigative
file. Upon written request from the appropriate licensing board, a board or school superintendent may, at the
discretion of the board or school superintendent, solicit the written consent of a student and the student's parent to
provide the licensing board with information that may aid the licensing board in its investigation and license
proceedings. The licensing board's request need not identify a student or parent by name. The consent of the student
and the student's parent must meet the requirements of chapter 13 and Code of Federal Regulations, title 34, section
99.30. The licensing board may provide a consent form to the district. Any data transmitted to any board under this
section is private data under section 13.02, subdivision 12, notwithstanding any other classification of the data when
it was in the possession of any other agency.
The licensing board to which a report is made must transmit to the attorney general's office any record or data it receives under this subdivision for the sole purpose of having the attorney general's office assist that board in its investigation. When the attorney general's office has informed an employee of the appropriate licensing board in writing that grounds exist to suspend or revoke a teacher's license to teach, that licensing board must consider suspending or revoking or decline to suspend or revoke the teacher's or administrator's license within 45 days of receiving a stipulation executed by the teacher or administrator under investigation or a recommendation from an administrative law judge that disciplinary action be taken.
Sec. 11. Minnesota Statutes 2000, section 122A.21, is amended to read:
122A.21 [TEACHERS' AND ADMINISTRATORS' LICENSES; FEES.]
Each application for the issuance, renewal, or extension of a license to teach and each application for the
issuance, renewal, or extension of a license as supervisory personnel must be accompanied by a processing fee
in an amount set by the board of teaching by rule. Each application for the issuance, renewal, or extension of
a license as school administrators and supervisors must be accompanied by a processing fee in the same amounts
set by the board of teaching. The processing fee for a teacher's license and for the licenses of supervisory
personnel must be paid to the executive secretary of the appropriate board of teaching. The
executive secretary of the board of teaching shall deposit the fees with the state treasurer, as provided by law,
and report each month to the commissioner of finance the amount of fees collected. The fees as set by the board are
nonrefundable for applicants not qualifying for a license. However, a fee must be refunded by the state treasurer in
any case in which the applicant already holds a valid unexpired license. The board may waive or reduce fees for
applicants who apply at the same time for more than one license.
Sec. 12. Minnesota Statutes 2000, section 124D.10, subdivision 1, is amended to read:
Subdivision 1. [PURPOSES.] (a) The purpose of this section is to:
(2) increase learning opportunities for pupils;
(3) encourage the use of different and innovative teaching methods;
(4) require the measurement of learning outcomes and create different and innovative forms of measuring outcomes;
(5) establish new forms of accountability for schools; or
(6) create new professional opportunities for teachers, including the opportunity to be responsible for the learning program at the school site;
(7) test new and more accountable, results-based forms of oversight and accountability for schools;
(8) focus state oversight on the role of sponsors of charter schools; or
(9) encourage school boards to make full use of the opportunities provided by this section.
(b) This section does not provide a means to keep open a school that otherwise would be closed. Applicants
in these circumstances bear the burden of proving that conversion to a charter school fulfills a purpose specified in
this subdivision, independent of the school's closing.
Sec. 13. Minnesota Statutes 2000, section 124D.10, is amended by adding a subdivision to read:
Subd. 2a. [STATE BOARD FOR CHARTER SCHOOLS.] (a) The state board for charter schools shall administer laws governing charter schools. The state board shall:
(1) perform the state role in sponsorship of charter schools;
(2) encourage the creation of innovative schools;
(3) provide leadership and support for sponsors to increase innovation, effectiveness, accountability, and fiscal soundness of schools authorized under this section; and
(4) administer state and federal start-up aid.
The board may establish advisory groups.
(b) The state board shall consist of seven members appointed by the governor with the advice and consent of the senate. Persons appointed to the board shall have demonstrated experience or interest in charter schools. Members must be appointed for staggered terms of six years, with terms beginning August 1 of each year. The terms of the initial board members must be determined by lot as follows: one member must be appointed for a term that expires August 1, 2004; two members must be appointed for terms that expire August 1, 2005; two members must be appointed for terms that expire August 1, 2006; and two members must be appointed to terms that expire August 1, 2007.
(c) The initial chair of the board must be appointed by the governor and successor chairs must be elected by the board members. The chair shall serve a two-year term.
(d) Except as otherwise provided in this section, the membership terms, compensation, removal of members, and filling of vacancies shall be as provided for in section 15.0575.
(e) The state board shall appoint an executive director who shall serve in the unclassified service and may appoint other staff.
Sec. 14. Minnesota Statutes 2000, section 124D.10, subdivision 3, is amended to read:
Subd. 3. [SPONSOR.] A school board; intermediate school district school board; education district organized
under sections 123A.15 to 123A.19; charitable organization under section 501(c)(3) of the Internal Revenue Code
of 1986 that is a member of the Minnesota council of nonprofits or the Minnesota council on foundations, registered
with the attorney general's office, and reports an end-of-year fund balance of at least $2,000,000; Minnesota private
college that grants two- or four-year degrees and is registered with the higher education services office under chapter
136A; community college, state university, or technical college, governed by the board of trustees of the Minnesota
state colleges and universities; or the University of Minnesota; or the state board for charter schools
may sponsor one or more charter schools.
Sec. 15. Minnesota Statutes 2000, section 124D.10, subdivision 4, is amended to read:
Subd. 4. [FORMATION OF SCHOOL.] (a) A sponsor may authorize one or more licensed teachers under section
122A.18, subdivision 1, to operate a charter school subject to approval by the commissioner state board
for charter schools. A board must vote on charter school application for sponsorship no later than 90 days after
receiving the application. After 90 days, the applicant may apply to the commissioner state board for
charter schools. If a board elects not to sponsor a charter school, the applicant may appeal the board's decision
to the commissioner state board for charter schools. If the commissioner state board
for charter schools authorizes the school, the commissioner state board must sponsor the school
according to this section. The school must be organized and operated as a cooperative under chapter 308A or
nonprofit corporation under chapter 317A.
(b) Before the operators may form and operate a school, the sponsor must file an affidavit with the
commissioner state board for charter schools stating its intent to authorize a charter school. The
affidavit must state the terms and conditions under which the sponsor would authorize a charter school. The
commissioner state board for charter schools must approve or disapprove the sponsor's proposed
authorization within 60 days of receipt of the affidavit. Failure to obtain commissioner state board
approval precludes a sponsor from authorizing the charter school that was the subject of the affidavit.
(c) The operators authorized to organize and operate a school must hold an election for members of the school's
board of directors in a timely manner after the school is operating. Any staff members who are employed at the
school, including teachers providing instruction under a contract with a cooperative, and all parents of children
enrolled in the school may participate in the election. Licensed teachers employed at the school, including teachers
providing instruction under a contract with a cooperative, must be a majority of the members of the board of
directors, unless the commissioner state board for charter schools waives the requirement for the
school. A provisional board may operate before the election of the school's board of directors. Board of director
meetings must comply with chapter 13D.
(d) The granting or renewal of a charter by a sponsoring entity must not be conditioned upon the bargaining unit status of the employees of the school.
Sec. 16. Minnesota Statutes 2000, section 124D.10, subdivision 6, is amended to read:
Subd. 6. [CONTRACT.] The sponsor's authorization for a charter school must be in the form of a written contract
signed by the sponsor and the board of directors of the charter school. The contract must be completed within 90
days of the commissioner's approval by the state board of charter schools of the sponsor's proposed
authorization. The contract for a charter school must 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, 16, and 23;
(7) assumption of liability by the charter school;
(8) types and amounts of insurance coverage to be obtained by the charter school;
(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 sections 125A.03 to 125A.24, and 125A.65, 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.
Sec. 17. Minnesota Statutes 2000, section 124D.10, subdivision 8, is amended to read:
Subd. 8. [STATE AND LOCAL REQUIREMENTS.] (a) A charter school shall meet all applicable state and local health and safety requirements.
(b) A school sponsored by a school board may be located in any district, unless the school board of the district of
the proposed location disapproves by written resolution. If such a board denies a request to locate within its
boundaries a charter school sponsored by another school board, the sponsoring school board may appeal to the
commissioner state board for charter schools. If the commissioner state board for
charter schools authorizes the school, the commissioner state board must sponsor the school.
(c) A charter school must be nonsectarian in its programs, admission policies, employment practices, and all other operations. A sponsor may not authorize a charter school or program that is affiliated with a nonpublic sectarian school or a religious institution.
(d) Charter schools must not be used as a method of providing education or generating revenue for students who are being home-schooled.
(e) The primary focus of a charter school must be to provide a comprehensive program of instruction for at least one grade or age group from five through 18 years of age. Instruction may be provided to people younger than five years and older than 18 years of age.
(f) A charter school may not charge tuition.
(g) A charter school is subject to and must comply with chapter 363 and section 121A.04.
(h) A charter school is subject to and must comply with the Pupil Fair Dismissal Act, sections 121A.40 to 121A.56, and the Minnesota Public School Fee Law, sections 123B.34 to 123B.39.
(i) A charter school is subject to the same financial audits, audit procedures, and audit requirements as a district. The audit must comply with the requirements of sections 123B.75 to 123B.83, except to the extent deviations are necessary because of the program at the school. The department of children, families, and learning, state board for charter schools, state auditor, or legislative auditor may conduct financial, program, or compliance audits. A charter school determined to be in statutory operating debt under sections 123B.81 to 123B.83 must submit a plan under section 123B.81, subdivision 4.
(j) A charter school is a district for the purposes of tort liability under chapter 466.
Sec. 18. Minnesota Statutes 2000, section 124D.10, subdivision 10, is amended to read:
Subd. 10. [PUPIL PERFORMANCE.] A charter school must design its programs to at least meet the outcomes adopted by the commissioner of children, families, and learning for public school students. In the absence of the commissioner's requirements, the school must meet the outcomes contained in the contract with the sponsor. The achievement levels of the outcomes contained in the contract may exceed the achievement levels of any outcomes adopted by the commissioner for public school students.
Sec. 19. Minnesota Statutes 2000, section 124D.10, subdivision 14, is amended to read:
Subd. 14. [ANNUAL PUBLIC REPORTS.] A charter school must report at least annually to its sponsor and the
commissioner state board for charter schools the information required by the sponsor or the
commissioner state board. The reports are public data under chapter 13.
Sec. 20. Minnesota Statutes 2000, section 124D.10, subdivision 15, is amended to read:
Subd. 15. [REVIEW AND COMMENT.] The department state board for charter schools must
review and comment on the evaluation, by the sponsor, of the performance of a charter school before the charter
school's contract is renewed. A sponsor shall monitor and evaluate the fiscal and student performance of the school,
and may for this purpose annually assess the school up to $10 per student up to a maximum of $3,500. The
information for the review and comment shall be reported by the sponsor to the commissioner of children,
families, and learning state board in a timely manner. Periodically, the commissioner state
board shall report trends or suggestions based on the evaluation of charter school contracts to the education
committees of the state legislature. Annually, the state board shall report to the governor and education
committees of the legislature on the status of the charter schools formed and operated under this section.
Sec. 21. Minnesota Statutes 2000, section 124D.10, subdivision 19, is amended to read:
Subd. 19. [DISSEMINATE INFORMATION.] The sponsor, the operators, and the department of children,
families, and learning state board for charter schools must disseminate information to the public on
how to form and operate a charter school and how to utilize the offerings of a charter school. Particular groups to
be targeted include low-income families and communities, and students of color.
Sec. 22. Minnesota Statutes 2000, section 124D.10, subdivision 23, is amended to read:
Subd. 23. [CAUSES FOR NONRENEWAL OR TERMINATION OF CHARTER SCHOOL CONTRACT.]
(a) The duration of the contract with a sponsor must be for the term contained in the contract according to
subdivision 6. The sponsor may or may not renew a contract at the end of the term for any ground listed in
paragraph (b). A sponsor may unilaterally terminate a contract during the term of the contract for any ground listed
in paragraph (b). At least 60 days before not renewing or terminating a contract, the sponsor shall notify the board
of directors of the charter school of the proposed action in writing. The notice shall state the grounds for the
proposed action in reasonable detail and that the charter school's board of directors may request in writing an
informal hearing before the sponsor within 14 days of receiving notice of nonrenewal or termination of the contract.
Failure by the board of directors to make a written request for a hearing within the 14-day period shall be treated
as acquiescence to the proposed action. Upon receiving a timely written request for a hearing, the sponsor shall give
reasonable notice to the charter school's board of directors of the hearing date. The sponsor shall conduct an
informal hearing before taking final action. The sponsor shall take final action to renew or not renew a contract by
the last day of classes in the school year. If the sponsor is a local board, the school's board of directors may appeal
the sponsor's decision to the commissioner state board for charter schools.
(b) A contract may be terminated or not renewed upon any of the following grounds:
(1) failure to meet the requirements for pupil performance contained in the contract;
(2) failure to meet generally accepted standards of fiscal management;
(3) violations of law; or
(4) other good cause shown.
If a contract is terminated or not renewed, the school must be dissolved according to the applicable provisions of
chapter 308A or 317A, except when the commissioner state board for charter schools approves the
decision of a different eligible sponsor to authorize the charter school.
(c) The commissioner or state board for charter schools, after providing reasonable notice to the board of directors of a charter school and the existing sponsor, and after providing an opportunity for a public hearing, may terminate the existing sponsorial relationship if the charter school has a history of:
(1) financial mismanagement; or
(2) repeated violations of the law.
Sec. 23. Minnesota Statutes 2000, section 124D.10, subdivision 25, is amended to read:
Subd. 25. [EXTENT OF SPECIFIC LEGAL AUTHORITY.] (a) The board of directors of a charter school may sue and be sued.
(b) The board may not levy taxes or issue bonds.
(c) The commissioner state board for charter schools, a sponsor, members of the board of a
sponsor in their official capacity, and employees of a sponsor are immune from civil or criminal liability with respect
to all activities related to a charter school they approve or sponsor. The board of directors shall obtain at least the
amount of and types of insurance required by the contract, according to subdivision 6.
Sec. 24. [127A.03] [STATE BOARD OF EDUCATION.]
Subdivision 1. [STATE BOARD ESTABLISHED; APPOINTMENTS; MEETINGS; CONFLICT OF INTEREST; ADMINISTRATIVE COSTS.] (a) The department of children, families, and learning is maintained under the direction of a state board of education composed of the following members: ten representative citizens of the state, at least one of whom resides in each congressional district in the state and two of whom serve as members at-large; the chancellor of the Minnesota state colleges and universities or a person appointed by the chancellor; and the president of the University of Minnesota or a person appointed by the president.
(b) Of the ten representative citizens of the state appointed to the state board of education, one member at-large is a student who is enrolled full-time in a Minnesota public high school at the time of the student's appointment and one member at-large previously shall have served as an elected member of a board of education of a school district.
(c) The governor appoints the representative citizen members of the state board with the advice and consent of the senate. The state board of education annually elects one of its members as president, but no member serves as president more than three consecutive years.
(d) The state board of education holds meetings on dates and at places it designates.
(e) No member shall hold any public office, or represent or be employed by any board of education or school district, public or private, and shall not voluntarily have any personal financial interest in any contract with a board of education or school district, or be engaged in any capacity where a conflict of interest may arise.
(f) The administrative costs of the state board of education must be paid out of department of children, families, and learning appropriations.
Subd. 2. [MEMBERSHIP; COMPENSATION.] The membership terms, compensation, removal of members, and filling of vacancies on the state board are as provided in section 15.0575.
Subd. 3. [RESIDENCY REQUIREMENT.] If a member moves out of the congressional district from which the member was appointed, the member ceases to be a member of the state board. The governor appoints a successor within six months thereafter.
[EFFECTIVE DATE.] This section is effective January 1, 2002.
Sec. 25. Minnesota Statutes 2000, section 127A.05, subdivision 1, is amended to read:
Subdivision 1. [APPOINTMENT AND DUTIES.] (a) The department shall be under the administrative
control of the commissioner of children, families, and learning which office is established. The governor
commissioner is the secretary of the state board of education. The state board of education shall appoint
the commissioner under the provisions of section 15.06. For purposes of section 15.06, the state board of
education is the appointing authority.
(b) The commissioner serves at the pleasure of the board.
(c) The commissioner shall be a person who possesses educational attainment and breadth of experience in the administration of public education and of the finances pertaining thereto commensurate with the spirit and intent of this code. Notwithstanding any other law to the contrary, the commissioner may appoint two deputy commissioners who shall serve in the unclassified service. The commissioner shall also appoint other employees as may be necessary for the organization of the department. The commissioner shall perform such duties as the law and rules may provide and be held responsible for the efficient administration and discipline of the department. The commissioner is charged with the execution of powers and duties to promote public education in the state and to safeguard the finances pertaining thereto.
[EFFECTIVE DATE.] This section is effective January 1, 2002.
Sec. 26. Minnesota Statutes 2000, section 214.01, subdivision 3, is amended to read:
Subd. 3. [NON-HEALTH-RELATED LICENSING BOARD.] "Non-health-related licensing board" means the board of teaching established pursuant to section 122A.07, the board of educational administration established pursuant to section 122A.192, the board of barber examiners established pursuant to section 154.22, the board of assessors established pursuant to section 270.41, the board of architecture, engineering, land surveying, landscape architecture, geoscience, and interior design established pursuant to section 326.04, the board of accountancy established pursuant to section 326.17, the board of electricity established pursuant to section 326.241, the private detective and protective agent licensing board established pursuant to section 326.33, the board of boxing established pursuant to section 341.01, and the peace officer standards and training board established pursuant to section 626.841.
Sec. 27. Minnesota Statutes 2000, section 214.04, subdivision 1, is amended to read:
Subdivision 1. [SERVICES PROVIDED.] The commissioner of administration with respect to the board of electricity, the commissioner of children, families, and learning with respect to the board of teaching and the board of educational administration, the commissioner of public safety with respect to the board of private detective and protective agent services, and the board of peace officer standards and training, and the commissioner of revenue with respect to the board of assessors, shall provide suitable offices and other space, joint conference and hearing facilities, examination rooms, and the following administrative support services: purchasing service, accounting service, advisory personnel services, consulting services relating to evaluation procedures and techniques, data processing, duplicating, mailing services, automated printing of license renewals, and such other similar services
of a housekeeping nature as are generally available to other agencies of state government. Investigative services shall be provided the boards by employees of the office of attorney general. The commissioner of health with respect to the health-related licensing boards shall provide mailing and office supply services and may provide other facilities and services listed in this subdivision at a central location upon request of the health-related licensing boards. The commissioner of commerce with respect to the remaining non-health-related licensing boards shall provide the above facilities and services at a central location for the remaining non-health-related licensing boards. The legal and investigative services for the boards shall be provided by employees of the attorney general assigned to the departments servicing the boards. Notwithstanding the foregoing, the attorney general shall not be precluded by this section from assigning other attorneys to service a board if necessary in order to insure competent and consistent legal representation. Persons providing legal and investigative services shall to the extent practicable provide the services on a regular basis to the same board or boards.
Sec. 28. Minnesota Statutes 2000, section 214.04, subdivision 3, is amended to read:
Subd. 3. [OFFICERS; STAFF.] The executive director of each health-related board and the executive secretary of each non-health-related board shall be the chief administrative officer for the board but shall not be a member of the board. The executive director or executive secretary shall maintain the records of the board, account for all fees received by it, supervise and direct employees servicing the board, and perform other services as directed by the board. The executive directors, executive secretaries, and other employees of the following boards shall be hired by the board, and the executive directors or executive secretaries shall be in the unclassified civil service, except as provided in this subdivision:
(1) dentistry;
(2) medical practice;
(3) nursing;
(4) pharmacy;
(5) accountancy;
(6) architecture, engineering, land surveying, landscape architecture, geoscience, and interior design;
(7) barber examiners;
(8) cosmetology;
(9) electricity;
(10) teaching;
(11) peace officer standards and training;
(12) social work;
(13) marriage and family therapy; and
(14) dietetics and nutrition practice; and
(15) educational administration.
The executive directors or executive secretaries serving the boards are hired by those boards and are in the unclassified civil service, except for part-time executive directors or executive secretaries, who are not required to be in the unclassified service. Boards not requiring full-time executive directors or executive secretaries may employ
them on a part-time basis. To the extent practicable, the sharing of part-time executive directors or executive secretaries by boards being serviced by the same department is encouraged. Persons providing services to those boards not listed in this subdivision, except executive directors or executive secretaries of the boards and employees of the attorney general, are classified civil service employees of the department servicing the board. To the extent practicable, the commissioner shall ensure that staff services are shared by the boards being serviced by the department. If necessary, a board may hire part-time, temporary employees to administer and grade examinations.
Sec. 29. Minnesota Statutes 2000, section 214.12, subdivision 1, is amended to read:
Subdivision 1. [REQUIREMENTS.] The health-related and non-health-related licensing boards may promulgate by rule requirements for renewal of licenses designed to promote the continuing professional competence of licensees. These requirements of continuing professional education or training shall be designed solely to improve professional skills and shall not exceed an average attendance requirement of 50 clock hours per year. All requirements promulgated by the boards shall be effective commencing January 1, 1977, or at a later date as the board may determine. The 50 clock hour limitation shall not apply to the board of teaching and board of educational administration.
Sec. 30. [TRANSFER; DEPARTMENT ASSISTANCE.]
The powers and duties of the department of children, families, and learning with respect to charter schools are transferred to the state board for charter schools under Minnesota Statutes, section 15.039, subdivisions 1, 2, 3, 4, 5, 5a, 6, and 8. The department shall provide all necessary materials and assistance for the transfer from the department to the state board.
Sec. 31. [TRANSFER OF POWERS AND DUTIES.]
The powers, duties, and responsibilities of the commissioner of children, families, and learning with respect to supervisory personnel as defined in Minnesota Statutes, section 122A.15, subdivision 2, are transferred to the board of educational administration under Minnesota Statutes, section 15.039.
Sec. 32. [INITIAL STATE BOARD OF EDUCATION APPOINTMENTS.]
Initial appointments to the state board of education under Minnesota Statutes, section 122A.162, are as follows:
(1) four members, at least one of whom resides in each of four congressional districts and one member at-large serve a two-year term; and
(2) four members, at least one of whom resides in each of the remaining four congressional districts not represented under clause (1) and one member at-large serve a four-year term.
The membership terms, compensation, removal of members, and filling of vacancies on the state board otherwise are as provided in Minnesota Statutes, section 15.0575.
[EFFECTIVE DATE.] This section is effective the day following final enactment.
Sec. 33. [FEE INCREASE APPROVAL; MODIFICATION.]
The fee for licenses issued by the board of educational administration is approved at $75.
Sec. 34. [DEPARTMENT OF CHILDREN, FAMILIES, AND LEARNING; SCHOOL MEDIA STAFF PERSON.]
The commissioner of children, families, and learning shall designate a staff person as a resource person for providing state-level leadership for school media programs. The commissioner shall pay all costs for that staff person out of existing department appropriations.
Sec. 35. [SCHOOL MEDIA CENTER STUDY.]
The commissioner shall use existing funds to conduct a study of school media centers. The study must:
(1) make available comprehensive data about school media center staffing, facilities, collections, and technology;
(2) identify elements of school media programs that contribute to students' educational achievement; and
(3) recommend best practices for school media programs.
The commissioner, by January 15, 2003, must provide copies of the study to the chairs of the legislature's committees charged with oversight of kindergarten through grade 12 education policy.
[EFFECTIVE DATE.] This section is effective the day following final enactment.
Sec. 36. [APPROPRIATIONS; DEPARTMENT OF CHILDREN, FAMILIES, AND LEARNING.]
Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND LEARNING.] Unless otherwise indicated, 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. [DEPARTMENT.] (a) For the department of children, families, and learning:
$30,164,000 . . . . . 2002
$30,164,000 . . . . . 2003
Any balance in the first year does not cancel but is available in the second year.
(b) $684,000 in 2002 and $690,000 in 2003 is for the board of teaching.
(c) $200,000 each year is for the board of educational administration.
(d) $200,000 each year is for the state board for charter schools.
(e) $100,000 in fiscal year 2002 and $200,000 in fiscal year 2003 are for the state board of education.
(f) $400,000 in fiscal year 2002 and $400,000 in fiscal year 2003 are for the office of educational accountability under Minnesota Statutes, section 120B.31, subdivision 3.
(g) 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.
(h) In preparing the department budget for fiscal years 2004-2005, the department shall shift all administrative funding from aids appropriations into the appropriation for the department.
Sec. 37. [APPROPRIATIONS; PERPICH CENTER FOR ARTS EDUCATION.]
The sums indicated in this section are appropriated from the general fund to the Perpich center for arts education for the fiscal years designated:
$7,531,000 . . . . . 2002
$7,666,000 . . . . . 2003
Any balance in the first year does not cancel but is available in the second year.
Sec. 38. [APPROPRIATIONS; MINNESOTA STATE ACADEMIES.]
The sums indicated in this section are appropriated from the general fund to the Minnesota state academies for the deaf and the blind for the fiscal years designated:
$10,761,000 . . . . . 2002
$10,966,000 . . . . . 2003
Any balance in the first year does not cancel but is available in the second year.
Sec. 39. [REVISOR INSTRUCTION; STATE BOARD OF EDUCATIONAL ADMINISTRATION.]
In the next and subsequent editions of Minnesota Statutes, the revisor of statutes shall substitute the term "board of educational administration" for the term "commissioner" or "commissioner of children, families, and learning" in the following sections of Minnesota Statutes: 122A.18, subdivisions 3, 6, and 8; 122A.20, subdivision 1; 122A.23, subdivision 1; 122A.27, subdivisions 1, 4, and 5; 123A.21; 123B.03, subdivision 1; and 125A.67, subdivision 2.
Sec. 40. [REVISOR'S INSTRUCTION; STATE BOARD OF EDUCATION.]
Except as provided in Minnesota Statutes, section 124D.10, establishing a state board for charter schools, and the section transferring powers, duties, and responsibilities for supervisory personnel to the board of educational administration, in the next and subsequent editions of Minnesota Statutes and Minnesota Rules, all references changed from the state board of education to the commissioner of children, families, and learning and all authority transferred from the state board of education to the commissioner of children, families, and learning under Laws 1998, chapter 398, and Laws 1999, chapter 241, shall be changed back to the state board of education. Among other things, and as an illustration only, these changes shall affect the authority to exercise general supervision over educational agencies and adopt or amend administrative rules. In addition, and consistent with the provisions of this article, the revisor of statutes, in consultation with house and senate counsel, shall make other necessary changes affecting the powers and duties of the state board of education, consistent with the law as it appeared in Minnesota Statutes 1996 and Minnesota Statutes 1997 Supplement, and in Minnesota Rules 1997 and supplements. The revisor shall prepare a report to the 2002 legislature showing where these changes were made. The changes identified by the revisor shall be effective January 1, 2002.
[EFFECTIVE DATE.] This section is effective the day following final enactment.
ARTICLE 7
DEFICIENCIES
Section 1. [APPROPRIATIONS; DEFICIENCIES.]
Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND LEARNING.] Unless otherwise indicated, 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 for the funding of programs subject to state-aid deficiencies in fiscal year 2001. These appropriations are in addition to any other appropriations for those purposes.
Subd. 2. [GENERAL EDUCATION AID.] For general education aid:
$19,754,000 . . . . . 2001
Subd. 3. [SECONDARY VOCATIONAL AID.] For secondary vocational aid:
Subd. 4. [SPECIAL EDUCATION EXCESS COST AID.] For special education excess cost aid:
$6,740,000 . . . . . 2001
Subd. 5. [HEALTH AND SAFETY AID.] For health and safety aid:
$273,000 . . . . . 2001
Subd. 6. [INTERACTIVE TELEVISION AID.] For interactive television aid:
$6,000 . . . . . 2001
Subd. 7. [ALTERNATIVE FACILITIES BONDING AID.] For alternative facilities bonding aid:
$68,000 . . . . . 2001
ARTICLE 8
LOCAL ACHIEVEMENT TESTING
Section 1. Minnesota Statutes 2000, section 120B.02, is amended to read:
120B.02 [RESULTS-ORIENTED GRADUATION RULE; BASIC SKILLS REQUIREMENTS;
PROFILE OF LEARNING.]
(a) The legislature is committed to establishing a rigorous, results-oriented graduation rule for
Minnesota's public school students. To that end, the commissioner shall use its rulemaking authority under section
127A.05, subdivision 4, to adopt a statewide, results-oriented graduation rule to be implemented starting
with students beginning ninth grade in the 1996-1997 school year. The commissioner shall not prescribe in rule
or otherwise the delivery system or form of instruction that independent school sites
districts must use to meet the requirements contained in this rule. For purposes of this chapter, a school
site is a separate facility, or a separate program within a facility that a local school board recognizes as a school
site.
(b) To successfully accomplish paragraph (a), the commissioner shall set in rule high academic standards for
all students. The standards must contain the foundational basic skills requirements in the three
core curricular areas of reading, writing, and mathematics while meeting requirements are established
by Minnesota Rules, parts 3501.0010 to 3501.0180 and 3501.0200 to 3501.0290, and must be completed for
public high school graduation. The standards graduation rule 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 local academic achievement testing under section
120B.35 that measures knowledge and skills beyond the foundational skills. All commissioner actions
regarding the graduation 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 commissioner, 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.
(e) The profile of learning contains the following learning areas:
(1) read, listen, and view;
(2) write and speak;
(3) arts and literature;
(4) mathematical concepts and applications;
(5) inquiry and research;
(6) scientific concepts and applications;
(7) social studies;
(8) physical education and lifetime fitness;
(9) economics and business;
(10) world languages; and
(11) technical and vocational education.
(f) The commissioner 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.
(g) Beginning August 31, 2000, the commissioner must publish, including in electronic format for the
Internet, a report, by school site, area learning center, and charter school, of:
(1) the required preparatory content standards;
(2) the high school content standards required for graduation; and
(3) the number of student waivers the district, area learning center, or charter school approves under
section 120B.031, subdivisions 4, 5, and 6, based on information each district, area learning center, and charter
school provides.
(h) School districts must integrate required and elective content standards in the scope and sequence of the
district curriculum.
(i) School districts are not required to adopt, and students are not required to participate in,
specific provisions of the Goals 2000 and the, federal School-to-Work programs, the
National Assessment of Educational Progress, and Title I of the Elementary and Secondary Education Act.
Sec. 2. Minnesota Statutes 2000, section 120B.30, 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 test, which shall be aligned 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 basic skills tests to students each school year. Only
Minnesota basic skills tests in reading, mathematics, and writing shall fulfill students' basic skills testing
requirements for a passing state notation. The passing scores of the state tests in reading and mathematics are the
equivalent of:
(1) 70 percent correct for students entering grade 9 in 1996; and
(2) 75 percent correct for students entering grade 9 in 1997 and thereafter, as based on the first uniform test
administration of February 1998.
Notwithstanding Minnesota Rules, part 3501.0050, subpart 2, at the written request of a parent or guardian, and
with the recommendation of the student's teacher, a district may offer the test of basic requirements in reading, math,
or writing to an individual student beginning in grade 5. The student must take the same test on the same date as
administered to students in eighth grade or higher. Third and fifth grade test results shall be available to districts
for diagnostic purposes affecting student learning and district instruction and curriculum, and for establishing
educational accountability. The commissioner must disseminate to the public the third and fifth grade test results
upon receiving those results.
(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 profile 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. A statewide test under
this section shall:
(1) use a multiple choice format with only one factually correct answer, except for writing, which may include an essay requirement;
(2) test academic, objective knowledge, and not personal characteristics, values, attitudes, or conscientiously held beliefs of students; and
(3) be made available in its entirety, including questions, answer key, and aggregate results, to the public, and the aggregated results shall be reported to the department and the office of educational accountability within 60 days of its administration. Upon request, a parent of a student who participated in the testing program shall receive a copy of each test in its entirety and the results for the child.
(c) The commissioner shall report aggregate school site and school district student academic basic skills achievement levels of the current and two immediately preceding school years. The report shall include students' unweighted mean test scores in each tested subject, the unweighted mean test scores of only those students enrolled in the school by January 1 of the previous school year, and the unweighted test scores of all students except those students receiving limited English proficiency instruction. The report also shall record separately, in proximity to the reported performance levels, 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 shall
include the following components in the statewide public reporting system:
(1) uniform statewide testing of all third, fifth, eighth, and post-eighth grade students that provides
exemptions, only with parent or guardian approval, for those very few students for whom the student's individual
education plan team under sections 125A.05 and 125A.06, determines that the student is incapable of taking a
statewide test, or for
a limited English proficiency student under section 124D.59, 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, including average daily attendance, high school graduation rates, and high school drop-out rates
by age and grade level; and
(3) (2) students' scores on the American College Test; and
(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.
(e) Districts must report exemptions under paragraph (d), clause (1), to the commissioner consistent with a
format provided by the commissioner, the Preliminary Scholastic Aptitude Test, and the Scholastic Aptitude
Test.
Sec. 3. Minnesota Statutes 2000, section 120B.31, subdivision 3, is amended to read:
Subd. 3. [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 testing 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 reflect student
academic achievement.
(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. 4. Minnesota Statutes 2000, section 120B.35, is amended to read:
120B.35 [STUDENT ACADEMIC ACHIEVEMENT LEVELS.]
Subdivision 1. [LOCAL TESTING.] (a) Each school year, a school district must administer a
uniform testing program to determine if the student academic achievement levels at each school site
in the third, fifth, and tenth grades meet state and local expectations. If student achievement levels
at a school site do not meet state and local expectations for two out of three consecutive school years,
beginning with the 2000-2001 school year, the district must work with the school site to adopt a plan to raise
student achievement levels to meet state and local expectations. The legislature will determine state
expectations after receiving a recommendation from the commissioner of children, families, and learning.
(b) The testing program shall measure knowledge in the following subject areas:
(1) for third grade, at least mathematics and language arts, which shall include reading, writing, grammar, vocabulary, and spelling; and
(2) for fifth and tenth grades:
(i) mathematics;
(ii) language arts, which shall include reading, writing, grammar, vocabulary, and spelling;
(iii) science;
(iv) history, which shall include an emphasis on the United States and Minnesota; and
(v) geography.
(c) The testing program shall be selected by the school district and may include nationally normed tests, the placement tests or their equivalents used by Minnesota post-secondary institutions, locally developed tests, or other valid tests. Each test shall be:
(1) in multiple choice question format with only one factually correct answer for each question, except for language arts, which may include an essay requirement;
(2) academic, objective, and not pertain to the personal characteristics, values, attitudes, or conscientiously held beliefs of students;
(3) secure, confidential, timed, and not permit the use of any outside aid or reference, except that calculators may be permitted at the secondary level and special accommodations may be permitted under state or federal law for students with an individualized education plan;
(4) comprehensive enough to include questions that would identify students of academic excellence; and
(5) made available in its entirety, including questions, answer key, and aggregate results, to the public, and be reported to the department and the office of educational accountability, within 60 days of its administration. Upon request, a parent of a student who participated in the testing program shall receive a copy of each test in its entirety and the results for the child.
Subd. 2. [ASSISTANCE.] The department, at a district's request, must assist the district and the school
site in developing a plan to improve student achievement. The plan When developing the plan, a
district must include consider parental involvement components
recommendations.
Sec. 5. [INSTRUCTION TO THE REVISOR.]
The revisor of statutes shall change the headnote names of Minnesota Statutes, section 120B.30 from "STATEWIDE TESTING AND REPORTING SYSTEM" to "STATEWIDE BASIC SKILLS TESTING AND REPORTING" and Minnesota Statutes, section 120B.31 from "SYSTEM ACCOUNTABILITY AND STATISTICAL ADJUSTMENTS" to "OFFICE OF EDUCATIONAL ACCOUNTABILITY."
Sec. 6. [REPEALER.]
(a) Minnesota Statutes 2000, sections 120B.031; and 120B.31, subdivisions 1, 2, and 4, are repealed.
(b) Minnesota Rules, parts 3501.0300; 3501.0310; 3501.0320; 3501.0330; 3501.0340; 3501.0350; 3501.0370; 3501.0380; 3501.0390; 3501.0400; 3501.0410; 3501.0420; 3501.0430; 3501.0440; 3501.0441; 3501.0442; 3501.0443; 3501.0444; 3501.0445; 3501.0446; 3501.0447; 3501.0448; 3501.0449; 3501.0450; 3501.0460; 3501.0461; 3501.0462; 3501.0463; 3501.0464; 3501.0465; 3501.0466; 3501.0467; 3501.0468; and 3501.0469, are repealed.
ARTICLE 9
TECHNICAL AMENDMENTS
Section 1. Minnesota Statutes 2000, section 122A.26, subdivision 3, is amended to read:
Subd. 3. [ENGLISH AS A SECOND LANGUAGE.] Notwithstanding subdivision 2, a person who possesses a
bachelor's or master's degree in English as a second language, applied linguistics, or bilingual education, or who
possesses a related degree as approved by the commissioner, shall be permitted to teach English as a second language
in an adult basic education program that receives funding under section 124D.53 124D.531.
Sec. 2. Minnesota Statutes 2000, section 124D.11, subdivision 5, is amended to read:
Subd. 5. [SPECIAL EDUCATION AID.] Except as provided in subdivision 2, special education aid must be paid
to a charter school according to section 125A.76, as though it were a school district. The charter school may charge
tuition to the district of residence as provided in section 125A.11. The charter school shall allocate its special
education levy equalization revenue to the resident districts of the pupils attending the charter school. The districts
of residence shall levy as though they were participating in a cooperative, as provided in section 125A.77,
subdivision 3.
Sec. 3. Minnesota Statutes 2000, section 124D.454, subdivision 11, is amended to read:
Subd. 11. [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND INTERMEDIATE
DISTRICTS.] For purposes of this section and section 125A.77, a cooperative center or an intermediate
district must allocate its approved expenditures for transition programs for children with a disability among
participating school districts. Aid for transition programs for children with a disability for services provided by a
cooperative or intermediate district shall be paid to the participating districts.
Sec. 4. Minnesota Statutes 2000, section 125A.17, is amended to read:
125A.17 [LEGAL RESIDENCE OF A CHILD WITH A DISABILITY PLACED IN A FOSTER FACILITY.]
The legal residence of a child with a disability placed in a foster facility for care and treatment is the district in which the child resides when:
(1) parental rights have been terminated by court order;
(2) the parent or guardian is not living within the state;
(3) no other district residence can be established; or
(4) the parent or guardian having legal custody of the child is an inmate of a Minnesota correctional
facility or is a resident of a halfway house under the supervision of the commissioner of corrections;
is the district in which the child resides. The school board of the district of residence must provide the same
educational program for the child as it provides for all resident children with a disability in the district.
Sec. 5. Minnesota Statutes 2000, section 127A.41, subdivision 8, is amended to read:
Subd. 8. [APPROPRIATION TRANSFERS.] If a direct appropriation from the general fund to the department
for any education aid or grant authorized in this chapter and chapters 122A, 123A, 123B, 124D, 126C, and 134,
excluding appropriations under sections 124D.135, 124D.16, 124D.20, 124D.21, 124D.22, 124D.52,
124D.53 124D.531, 124D.54, 124D.55, and 124D.56, exceeds the amount required, the
commissioner may transfer the excess to any education aid or grant appropriation that is insufficient. However,
section 126C.20 applies to a deficiency
in the direct appropriation for general education aid. Excess appropriations must 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. 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. 6. Minnesota Statutes 2000, section 127A.41, subdivision 9, is amended to read:
Subd. 9. [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 124D.135, 124D.16, 124D.20, 124D.21, 124D.22, 124D.52, 124D.53
124D.531, 124D.54, 124D.55, or 124D.56 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.
Sec. 7. [REPEALER.]
Laws 2000, chapter 254, section 30; and Laws 2000, chapter 489, article 1, section 18, are repealed."
Delete the title and insert:
"A bill for an act relating to education; providing for kindergarten through grade 12 education including general education revenue; education excellence; special programs; facilities and technology; nutrition, school accounting, and other programs; agency provisions; deficiencies; local achievement testing; and technical amendments; appropriating money; amending Minnesota Statutes 2000, sections 16B.616, subdivision 4; 120A.05, by adding a subdivision; 120B.02; 120B.031, subdivision 11; 120B.13, subdivision 1; 120B.30, subdivision 1; 120B.31, subdivision 3; 120B.35; 121A.11, by adding subdivisions; 121A.41, subdivision 10; 121A.45, subdivision 2, by adding a subdivision; 121A.582; 121A.61, subdivision 2; 122A.06, by adding a subdivision; 122A.09, subdivision 4; 122A.162; 122A.163; 122A.18, subdivisions 1, 2, 2a, 4, by adding subdivisions; 122A.20, subdivision 2; 122A.21; 122A.26, subdivision 3; 122A.31; 122A.61, subdivision 1; 123B.03, subdivision 3; 123B.143, subdivision 1; 123B.42, subdivision 3; 123B.44, subdivision 6; 123B.53, subdivisions 1, 2, 4, 5; 123B.54; 123B.57, subdivisions 3, 6; 123B.71, subdivisions 1, 4, 8, 9; 123B.75, subdivision 5, by adding subdivisions; 123B.80, subdivision 1; 123B.92, by adding subdivisions; 124D.10, subdivisions 1, 3, 4, 6, 8, 10, 14, 15, 19, 23, 25, by adding subdivisions; 124D.11, subdivisions 4, 5, 9; 124D.128, subdivisions 1, 2, 3, 6; 124D.454, subdivision 11; 124D.65, subdivision 5; 124D.69, subdivision 1; 124D.74, subdivisions 1, 2, 3, 4, 6; 124D.75, subdivision 6; 124D.76; 124D.78, subdivision 1; 124D.81, subdivisions 1, 3, 5, 6, 7; 124D.86, subdivisions 3, 6; 125A.023, subdivision 4; 125A.08; 125A.09, subdivision 3; 125A.11, subdivision 3; 125A.17; 125A.27, subdivision 15; 125A.76, subdivisions 1, 2; 126C.05, subdivisions 1, 3, 5, 6, 15; 126C.10, subdivisions 1, 2, 3, 9, 20, 21, 22, 24, 25, 27, by adding a subdivision; 126C.12, subdivisions 2, 3, 4, 5, by adding a subdivision; 126C.13, subdivision 1; 126C.15, subdivisions 1, 2, 5; 126C.16, by adding a subdivision; 126C.17, subdivisions 1, 2, 5, 6, 9, 10, 11; 126C.23, subdivision 5; 126C.41, subdivision 3; 126C.43, subdivision 3; 126C.63, subdivision 8; 126C.69, subdivisions 2, 3, 9, 12, 15; 127A.05, subdivision 1; 127A.41, subdivisions 5, 8, 9; 127A.45, subdivision 12, by adding a subdivision; 127A.50, subdivision 2; 136D.281, subdivision 4; 136D.741, subdivision 4; 136D.88, subdivision 4; 179A.20, by adding a subdivision; 214.01, subdivision 3; 214.04, subdivisions 1, 3; 214.12, subdivision 1; 260A.01; 260C.163, subdivision 11; 475.53, subdivision 4; 475.61, subdivision 3; 626.556, subdivision 2; Laws 1992, chapter 499, article 7, section 31, as amended; Laws 2000, chapter 489, article 2, sections 34, 36, 37, subdivision 3, 39, subdivision 2; Laws 2000, chapter 489, article 3, sections 24, 25, subdivision 5; Laws 2000, chapter 489, article 5, section 21; Laws 2000, chapter 489, article 7, section 15, subdivision 3; proposing coding for new law in Minnesota Statutes, chapters 120B; 122A; 124D; 127A; repealing Minnesota Statutes 2000, sections 120B.031; 120B.31, subdivisions 1, 2, 4; 123B.05; 123B.71, subdivisions 3, 10; 124D.07; 124D.1155; 124D.128, subdivision 7; 124D.32; 124D.85; 126C.01,
subdivision 10; 126C.10, subdivisions 3, 12, 23, 28; 126C.16, subdivision 2; 126C.17, subdivision 12; 126C.18; 126C.22; 126C.30; 126C.31; 126C.32; 126C.33; 126C.34; 126C.35; 126C.36; 126C.42, subdivisions 2, 3; 126C.47; 127A.44; 135A.081; 136D.281, subdivision 8; 136D.741, subdivision 8; 136D.88, subdivision 8; 136D.94; Laws 2000, chapter 254, section 30; Laws 2000, chapter 489, article 1, section 18; Minnesota Rules, parts 3501.0300; 3501.0310; 3501.0320; 3501.0330; 3501.0340; 3501.0350; 3501.0370; 3501.0380; 3501.0390; 3501.0400; 3501.0410; 3501.0420; 3501.0430; 3501.0440; 3501.0441; 3501.0442; 3501.0443; 3501.0444; 3501.0445; 3501.0446; 3501.0447; 3501.0448; 3501.0449; 3501.0450; 3501.0460; 3501.0461; 3501.0462; 3501.0463; 3501.0464; 3501.0465; 3501.0466; 3501.0467; 3501.0468; 3501.0469."
With the recommendation that when so amended the bill pass and be re-referred to the Committee on Taxes.
The report was adopted.
Goodno from the Committee on Health and Human Services Finance to which was referred:
H. F. No. 281, A bill for an act relating to civil commitment; modifying a definition; modifying the standard for an emergency hold; extending the potential hospitalization stay under early intervention; requiring certain hearings on neuroleptic medications to be combined with a civil commitment proceeding; amending Minnesota Statutes 2000, sections 253B.02, subdivision 13; 253B.05, subdivision 1; 253B.066, subdivision 1; and 253B.07, subdivision 2.
Reported the same back with the following amendments:
Delete everything after the enacting clause and insert:
"Section 1. Minnesota Statutes 2000, section 253B.02, subdivision 13, is amended to read:
Subd. 13. [MENTALLY ILL PERSON.] (a) "Mentally ill person" means any person who has an organic disorder of the brain or a substantial psychiatric disorder of thought, mood, perception, orientation, or memory which grossly impairs judgment, behavior, capacity to recognize reality, or to reason or understand, which is manifested by instances of grossly disturbed behavior or faulty perceptions and poses a substantial likelihood of physical harm to self or others as demonstrated by:
(1) a an inability or failure for reasons other than indigence to obtain necessary food,
clothing, shelter, or medical care as a result of the impairment; or and it is more probable than not that
the person will suffer substantial harm, significant psychiatric deterioration or debilitation, or serious illness, unless
appropriate treatment and services are provided;
(2) a recent attempt or threat to physically harm self or others; or
(3) recent and intentional conduct involving significant damage to substantial property.
(b) A person is not mentally ill under this section if the impairment is solely due to:
(1) epilepsy;
(2) mental retardation;
(3) brief periods of intoxication caused by alcohol, drugs, or other mind-altering substances; or
(4) dependence upon or addiction to any alcohol, drugs, or other mind-altering substances.
Sec. 2. Minnesota Statutes 2000, section 253B.03, subdivision 5, is amended to read:
Subd. 5. [PERIODIC ASSESSMENT.] A patient has the right to periodic medical assessment, including assessment of the medical necessity of continuing care and, if the treatment facility declines to provide continuing care, the right to receive specific written reasons why continuing care is declined at the time of the assessment. The treatment facility shall assess the physical and mental condition of every patient as frequently as necessary, but not less often than annually. If the patient refuses to be examined, the facility shall document in the patient's chart its attempts to examine the patient. If a person is committed as mentally retarded for an indeterminate period of time, the three-year judicial review must include the annual reviews for each year as outlined in Minnesota Rules, part 9525.0075, subpart 6.
Sec. 3. Minnesota Statutes 2000, section 253B.03, subdivision 10, is amended to read:
Subd. 10. [NOTIFICATION.] All persons admitted or committed to a treatment facility shall be notified in
writing of their rights under this chapter regarding hospitalization and other treatment at the time
of admission. This notification must include:
(1) patient rights specified in this section and section 144.651, including nursing home discharge rights;
(2) the right to obtain treatment and services voluntarily under this chapter;
(3) the right to voluntary admission and release under section 253B.04;
(4) rights in case of an emergency admission under section 253B.05, including the right to documentation in support of an emergency hold and the right to a summary hearing before a judge if the patient believes an emergency hold is improper;
(5) the right to request expedited review under section 62M.05 if additional days of inpatient stay are denied;
(6) the right to continuing benefits pending appeal and to an expedited administrative hearing under section 256.045 if the patient is a recipient of medical assistance, general assistance medical care, or MinnesotaCare; and
(7) the right to an external appeal process under section 62Q.73, including the right to a second opinion.
Sec. 4. Minnesota Statutes 2000, section 253B.03, is amended by adding a subdivision to read:
Subd. 11. [PROXY.] A legally authorized health care proxy, agent, guardian, or conservator may exercise the patient's rights on the patient's behalf.
Sec. 5. Minnesota Statutes 2000, section 253B.04, subdivision 1, is amended to read:
Subdivision 1. [VOLUNTARY ADMISSION AND TREATMENT.] (a) Voluntary admission is preferred over involuntary commitment and treatment. Any person 16 years of age or older may request to be admitted to a treatment facility as a voluntary patient for observation, evaluation, diagnosis, care and treatment without making formal written application. Any person under the age of 16 years may be admitted as a patient with the consent of a parent or legal guardian if it is determined by independent examination that there is reasonable evidence that (1) the proposed patient has a mental illness, or is mentally retarded or chemically dependent; and (2) the proposed patient is suitable for treatment. The head of the treatment facility shall not arbitrarily refuse any person seeking admission as a voluntary patient. In making decisions regarding admissions, the facility shall use clinical admission criteria consistent with the current applicable inpatient admission standards established by the American Psychiatric Association or the American Academy of Child and Adolescent Psychiatry. These criteria must be no more restrictive than, and must be consistent with, the requirements of section 62Q.53. The facility may not refuse to admit a person voluntarily solely because the person does not meet the criteria for involuntary holds under section 253B.05 or the definition of mental illness under section 253B.02, subdivision 13.
(b) In addition to the consent provisions of paragraph (a), a person who is 16 or 17 years of age who refuses to consent personally to admission may be admitted as a patient for mental illness or chemical dependency treatment with the consent of a parent or legal guardian if it is determined by an independent examination that there is reasonable evidence that the proposed patient is chemically dependent or has a mental illness and is suitable for treatment. The person conducting the examination shall notify the proposed patient and the parent or legal guardian of this determination.
Sec. 6. Minnesota Statutes 2000, section 253B.04, subdivision 1a, is amended to read:
Subd. 1a. [VOLUNTARY TREATMENT OR ADMISSION FOR PERSONS WITH MENTAL ILLNESS.] (a) A person with a mental illness may seek or voluntarily agree to accept treatment or admission to a facility. If the mental health provider determines that the person lacks the capacity to give informed consent for the treatment or admission, and in the absence of a health care power of attorney that authorizes consent, the designated agency or its designee may give informed consent for mental health treatment or admission to a treatment facility on behalf of the person.
(b) The designated agency shall apply the following criteria in determining the person's ability to give informed consent:
(1) whether the person demonstrates an awareness of the person's illness, and the reasons for treatment, its risks, benefits and alternatives, and the possible consequences of refusing treatment; and
(2) whether the person communicates verbally or nonverbally a clear choice concerning treatment that is a reasoned one, not based on delusion, even though it may not be in the person's best interests.
(c) The basis for the designated agency's decision that the person lacks the capacity to give informed consent for treatment or admission, and that the patient has voluntarily accepted treatment or admission, must be documented in writing.
(d) A mental health provider that provides treatment in reliance on the written consent given by the designated agency under this subdivision or by a substitute decision-maker appointed by the court is not civilly or criminally liable for performing treatment without consent. This paragraph does not affect any other liability that may result from the manner in which the treatment is performed.
(e) A person who receives treatment or is admitted to a facility under this subdivision or subdivision 1b has the right to refuse treatment at any time or to be released from a facility as provided under subdivision 2. The person or any interested person acting on the person's behalf may seek court review within five days for a determination of whether the person's agreement to accept treatment or admission is voluntary. At the time a person agrees to treatment or admission to a facility under this subdivision, the designated agency or its designee shall inform the person in writing of the person's rights under this paragraph.
(f) This subdivision does not authorize the administration of neuroleptic medications. Neuroleptic medications may be administered only as provided in section 253B.092.
Sec. 7. Minnesota Statutes 2000, section 253B.04, is amended by adding a subdivision to read:
Subd. 1b. [COURT APPOINTMENT OF SUBSTITUTE DECISION-MAKER.] If the designated agency or its designee declines or refuses to give informed consent under subdivision 1a, the person who is seeking treatment or admission, or an interested person acting on behalf of the person, may petition the court for appointment of a substitute decision-maker who may give informed consent for voluntary treatment and services. In making this determination, the court shall apply the criteria in subdivision 1a, paragraph (b).
Sec. 8. Minnesota Statutes 2000, section 253B.05, subdivision 1, is amended to read:
Subdivision 1. [EMERGENCY HOLD.] (a) Any person may be admitted or held for emergency care and treatment in a treatment facility with the consent of the head of the treatment facility upon a written statement by an examiner that:
(1) the examiner has examined the person not more than 15 days prior to admission,;
(2) the examiner is of the opinion, for stated reasons, that the person is mentally ill, mentally retarded or
chemically dependent, and is in imminent danger of causing injury to self or others if not immediately
restrained, detained; and
(3) an order of the court cannot be obtained in time to prevent the anticipated injury.
(b) If the proposed patient has been brought to the treatment facility by another person, the examiner shall make a good-faith effort to obtain a statement of information that is available from that person, which must be taken into consideration in deciding whether to place the proposed patient on an emergency hold. The statement of information must include direct observations of the proposed patient's behaviors, reliable knowledge of recent and past behavior, and information regarding psychiatric history, past treatment, and current mental health providers. The examiner shall also inquire into the existence of health care directives under chapter 145, and advance psychiatric directives under section 253B.03, subdivision 6d.
(c) The examiner's statement shall be: (1) sufficient authority for a peace or health officer to transport
a patient to a treatment facility, (2) stated in behavioral terms and not in conclusory language, and (3) of sufficient
specificity to provide an adequate record for review. If imminent danger to specific individuals is a basis
for the emergency hold, the statement must identify those individuals, to the extent practicable. A copy of the
examiner's statement shall be personally served on the person immediately upon admission and a copy shall be
maintained by the treatment facility.
Sec. 9. Minnesota Statutes 2000, section 253B.066, subdivision 1, is amended to read:
Subdivision 1. [TREATMENT ALTERNATIVES.] If the court orders early intervention under section 253B.065,
subdivision 5, the court may include in its order a variety of treatment alternatives including, but not limited to, day
treatment, medication compliance monitoring, and short-term hospitalization not to exceed ten 21
days.
If the court orders short-term hospitalization and the proposed patient will not go voluntarily, the court may direct a health officer, peace officer, or other person to take the person into custody and transport the person to the hospital.
Sec. 10. Minnesota Statutes 2000, section 253B.07, subdivision 1, is amended to read:
Subdivision 1. [PREPETITION SCREENING.] (a) Prior to filing a petition for commitment of or early
intervention for a proposed patient, an interested person shall apply to the designated agency in the county of the
proposed patient's residence or presence for conduct of a preliminary investigation, except when the proposed patient
has been acquitted of a crime under section 611.026 and the county attorney is required to file a petition for
commitment. The designated agency shall appoint a screening team to conduct an investigation which shall
include. The petitioner may not be a member of the screening team. The investigation must include:
(i) (1) a personal interview with the proposed patient and other individuals who appear to have
knowledge of the condition of the proposed patient. If the proposed patient is not interviewed, specific
reasons must be documented;
(ii) (2) identification and investigation of specific alleged conduct which is the basis for
application;
(iii) (3) identification, exploration, and listing of the specific reasons for rejecting or
recommending alternatives to involuntary placement;
(iv) (4) in the case of a commitment based on mental illness, the following information, if it is
known or available: information, that may be relevant to the administration of neuroleptic
medications, if necessary, including the existence of a declaration under section 253B.03, subdivision 6d,
or a health care directive under chapter 145C or a guardian, conservator, proxy, or agent with authority to make
health care decisions for the proposed patient; information regarding the capacity of the proposed patient to make
decisions regarding administration of neuroleptic medication; and whether the proposed patient is likely to consent
or refuse consent to administration of the medication; and
(v) (5) seeking input from the proposed patient's health plan company to provide the court with
information about services the enrollee needs and the least restrictive alternatives.; and
(6) in the case of a commitment based on mental illness, information listed in clause (4) for other purposes relevant to treatment.
(b) In conducting the investigation required by this subdivision, the screening team shall have access to all relevant medical records of proposed patients currently in treatment facilities. Data collected pursuant to this clause shall be considered private data on individuals. The prepetition screening report is not admissible as evidence except by agreement of counsel and is not admissible in any court proceedings unrelated to the commitment proceedings.
(c) The prepetition screening team shall provide a notice, written in easily understood language, to the proposed patient, the petitioner, persons named in a declaration under chapter 145C or section 253B.03, subdivision 6d, and, with the proposed patient's consent, other interested parties. The team shall ask the patient if the patient wants the notice read and shall read the notice to the patient upon request. The notice must contain information regarding the process, purpose, and legal effects of civil commitment and early intervention. The notice must inform the proposed patient that:
(1) if a petition is filed, the patient has certain rights, including the right to a court-appointed attorney, the right to request a second examiner, the right to attend hearings, and the right to oppose the proceeding and to present and contest evidence; and
(2) if the proposed patient is committed to a state regional treatment center or group home, the patient may be billed for the cost of care and the state has the right to make a claim against the patient's estate for this cost.
The ombudsman for mental health and mental retardation shall develop a form for the notice, which includes the requirements of this paragraph.
(d) When the prepetition screening team recommends commitment, a written report shall be sent to the county attorney for the county in which the petition is to be filed. The statement of facts contained in the written report must meet the requirements of subdivision 2, paragraph (b).
(d) (e) The prepetition screening team shall refuse to support a petition if the investigation does
not disclose evidence sufficient to support commitment. Notice of the prepetition screening team's decision shall
be provided to the prospective petitioner and to the proposed patient.
(e) (f) If the interested person wishes to proceed with a petition contrary to the recommendation
of the prepetition screening team, application may be made directly to the county attorney, who may
shall determine whether or not to proceed with the petition. Notice of the county attorney's determination
shall be provided to the interested party.
(f) (g) If the proposed patient has been acquitted of a crime under section 611.026, the county
attorney shall apply to the designated county agency in the county in which the acquittal took place for a preliminary
investigation unless substantially the same information relevant to the proposed patient's current mental condition,
as could be obtained by a preliminary investigation, is part of the court record in the criminal proceeding or is
contained in the report of a mental examination conducted in connection with the criminal proceeding. If a court
petitions for commitment
pursuant to the rules of criminal or juvenile procedure or a county attorney petitions pursuant to acquittal of a criminal charge under section 611.026, the prepetition investigation, if required by this section, shall be completed within seven days after the filing of the petition.
Sec. 11. Minnesota Statutes 2000, section 253B.07, subdivision 2, is amended to read:
Subd. 2. [THE PETITION.] (a) Any interested person, except a member of the prepetition screening team, may file a petition for commitment in the district court of the county of the proposed patient's residence or presence. If the head of the treatment facility believes that commitment is required and no petition has been filed, the head of the treatment facility shall petition for the commitment of the person.
(b) The petition shall set forth the name and address of the proposed patient, the name and address of the patient's nearest relatives, and the reasons for the petition. The petition must contain factual descriptions of the proposed patient's recent behavior, including a description of the behavior, where it occurred, and the time period over which it occurred. Each factual allegation must be supported by observations of witnesses named in the petition. Petitions shall be stated in behavioral terms and shall not contain judgmental or conclusory statements.
(c) The petition shall be accompanied by a written statement by an examiner stating that the examiner has
examined the proposed patient within the 15 days preceding the filing of the petition and is of the opinion that the
proposed patient is suffering a designated disability and should be committed to a treatment facility. The statement
shall include the reasons for the opinion. In the case of a commitment based on mental illness, the petition and the
examiner's statement may shall include, to the extent this information is available, a statement and
opinion regarding the proposed patient's need for treatment with neuroleptic medication and the patient's capacity
to make decisions regarding the administration of neuroleptic medications, and the reasons for the opinion. If
use of neuroleptic medications is recommended, the petition for commitment must include a request for proceedings
under section 253B.092. If a petitioner has been unable to secure a statement from an examiner, the petition
shall include documentation that a reasonable effort has been made to secure the supporting statement.
Sec. 12. Minnesota Statutes 2000, section 253B.09, subdivision 1, is amended to read:
Subdivision 1. [STANDARD OF PROOF.] (a) If the court finds by clear and convincing evidence that the proposed patient is a mentally ill, mentally retarded, or chemically dependent person and after careful consideration of reasonable alternative dispositions, including but not limited to, dismissal of petition, voluntary outpatient care, voluntary admission to a treatment facility, appointment of a guardian or conservator, or release before commitment as provided for in subdivision 4, it finds that there is no suitable alternative to judicial commitment, the court shall commit the patient to the least restrictive treatment program or alternative programs which can meet the patient's treatment needs consistent with section 253B.03, subdivision 7.
(b) In deciding on the least restrictive program, the court shall consider a range of treatment alternatives including, but not limited to, community-based nonresidential treatment, community residential treatment, partial hospitalization, acute care hospital, and regional treatment center services. The court shall also consider the proposed patient's treatment preferences and willingness to participate voluntarily in the treatment ordered. The court may not commit a patient to a facility or program that is not capable of meeting the patient's needs.
(c) For purposes of findings under this chapter, none of the following constitute a refusal to accept appropriate mental health treatment:
(1) a willingness to take medication but a reasonable disagreement about type or dosage;
(2) a good-faith effort to follow a reasonable alternative treatment plan, including treatment as specified in a valid advance directive under chapter 145C or section 253B.03, subdivision 6d;
(3) an inability to obtain access to appropriate treatment because of inadequate health care coverage or an insurer's refusal or delay in providing coverage for the treatment; or
(4) an inability to obtain access to needed mental health services because the provider will only accept patients who are under a court order or because the provider gives persons under a court order a priority over voluntary patients in obtaining treatment and services."
Delete the title and insert:
"A bill for an act relating to civil commitment; modifying a definition; specifying certain patient rights and examination requirements; expanding voluntary consent procedures; modifying the standard for and collection of information for an emergency hold; requiring certain hearings on neuroleptic medications to be combined with a civil commitment proceeding; amending Minnesota Statutes 2000, sections 253B.02, subdivision 13; 253B.03, subdivisions 5, 10, by adding a subdivision; 253B.04, subdivisions 1, 1a, by adding a subdivision; 253B.05, subdivision 1; 253B.066, subdivision 1; 253B.07, subdivisions 1, 2; 253B.09, subdivision 1."
With the recommendation that when so amended the bill pass and be re-referred to the Committee on Ways and Means.
The report was adopted.
Bishop from the Committee on Ways and Means to which was referred:
H. F. No. 351, A bill for an act relating to the operation of state government; crime prevention and judiciary finance; appropriating money for the judicial branch, public defense, human rights, corrections, public safety, crime victims, and related purposes; establishing and expanding grant programs, task forces, and pilot projects; requiring reports and studies; transferring, modifying, and expanding responsibility for various governmental responsibilities; providing procedures and policies for integrated criminal justice information systems; adopting various provisions relating to corrections; imposing, clarifying, and expanding certain criminal and civil provisions and penalties; making certain changes related to sex offenders and sex offender registration; providing for state funding of certain programs and personnel; abolishing the office of the ombudsman for corrections; eliminating the Camp Ripley weekend camp program; increasing certain fees and modifying the allocation of certain fees; establishing a theft prevention advisory board; establishing a felony-level penalty for driving while impaired; modifying certain policies and procedures relating to domestic violence; making technical changes to the driving while impaired laws; amending Minnesota Statutes 2000, sections 2.724, subdivision 3; 8.16, subdivision 1; 13.87, by adding a subdivision; 15A.083, subdivision 4; 169A.03, subdivision 12, by adding subdivisions; 169A.20, subdivision 3; 169A.25; 169A.26; 169A.27; 169A.275, subdivisions 3, 5; 169A.277, subdivision 2; 169A.28, subdivision 2; 169A.283, subdivision 1; 169A.37, subdivision 1; 169A.40, subdivision 3; 169A.41, subdivision 2; 169A.51, subdivision 7; 169A.54, subdivision 6; 169A.60, subdivisions 1, 13, 14; 169A.63, subdivision 1; 171.09; 171.29, subdivision 2; 241.272, subdivision 6; 242.192; 243.166, subdivisions 1, 3, 4a, 6; 243.167, subdivision 1; 243.51, subdivisions 1, 3; 299A.75, subdivision 1, by adding subdivisions; 299C.10, subdivision 1; 299C.11; 299C.147, subdivision 2; 299C.65, subdivisions 1, 2; 299F.058, subdivision 2; 343.20, by adding subdivisions; 343.21, subdivisions 9, 10, by adding a subdivision; 518B.01, subdivisions 2, 3, 6, 14; 609.02, by adding a subdivision; 609.035, subdivision 2; 609.117; 609.224, subdivisions 2, 4; 609.2242, subdivisions 2, 4; 609.487, subdivision 4; 609.495, subdivisions 1, 3; 609.521; 609.748, subdivisions 6, 8; 609.749, subdivisions 4, 5; 611.23; 611.272; 611A.201, subdivision 2; 611A.32, by adding a subdivision; 611A.74, subdivisions 1, 1a; 617.247, subdivisions 3, 4; 626.52; 626.55, subdivision 1; 629.471, subdivision 2; 629.72; Laws 1996, chapter 408, article 2, section 16; proposing coding for new law in Minnesota Statutes, chapters 8; 15A; 169A; 299A; 299C; 518; 518B; 609; 626; repealing Minnesota Statutes 2000, sections 169A.275, subdivision 4; 241.41; 241.42; 241.43; 241.44; 241.441; 241.45; 243.166, subdivision 10; 609.2244, subdivision 4; 626.55, subdivision 2.
Reported the same back with the following amendments:
Page 4, after line 3, insert:
"$200,000 the first year and $175,000 the second year are appropriated to the court of appeals for legal research assistance."
Page 9, line 47, after "release" insert "and to provide treatment to these offenders"
Page 14, after line 29, insert:
"$1,332,000 the first year and $1,357,000 the second year from the general fund, and notwithstanding Minnesota Statutes, section 161.20, subdivision 3, $354,000 the first year and $361,000 the second year from the trunk highway fund are for laboratory analysis related to driving while intoxicated cases."
Page 17, line 8, delete "33,702,000" and insert "31,702,000" and delete "29,713,000" and insert "31,713,000"
Page 17, line 9, delete "$2,500,000" and insert "$1,500,000" and delete "$500,000" and insert "$1,500,000"
Page 17, line 17, after the period, insert "Of these amounts, $1,000,000 each year must be reallocated from within the crime victims services center base budget."
Page 17, delete lines 18 to 21
Page 21, line 20, move "35,000" from the column for fiscal year 2003 to the column for fiscal year 2002
Pages 49 to 50, delete section 2
Pages 50 to 53, delete sections 4 and 5
Page 54, delete section 8
Page 120, after line 25, insert:
"ARTICLE 12
MARRIAGE DISSOLUTION, LEGAL SEPARATION, AND ANNULMENT
Section 1. [517A.25] [SIX-MONTH REVIEW.]
(a) A decree of dissolution or legal separation or an order that establishes child custody, parenting time, or support rights and obligations of parents must contain a review date six months after its entry. At the six-month hearing, the court must review:
(1) whether child support is current; and
(2) whether both parties are complying with the parenting time provisions of the order.
(b) At the six-month hearing, the obligor has the burden to present evidence to establish that child support payments are current. A party may request that the public authority provide information to the parties and court regarding child support payments. A party must request the information from the public authority at least 14 days before the hearing. The commissioner of human services must develop a form to be used by the public authority to submit child support payment information to the parties and court.
(c) A hearing need not be held under this section if both parties file an affidavit with the court administrator before the scheduled hearing date indicating that child support is current and that the parties are complying with the parenting time provisions of the order.
(d) Contempt of court and all statutory remedies for child support and parenting time enforcement may be imposed by the court at the six-month hearing for noncompliance by either party.
(e) At least one month before the six-month hearing, a court administrator must send the parties written notice of the hearing. The written notice must include a statement that an obligor has the burden to present evidence at the hearing to establish that child support payments are current. The written notice also must include a statement that a hearing will not be held if both parties submit an affidavit to the court administrator before the hearing date indicating that child support is current and that the parties are in compliance with parenting time provisions.
Sec. 2. Minnesota Statutes 2000, section 518.002, is amended to read:
518.002 [USE TERM DISSOLUTION MEANING OF DIVORCE.]
Wherever the word "Divorce" is, as used in the statutes, it has the same meaning
as "dissolution" or "dissolution of marriage."
Sec. 3. Minnesota Statutes 2000, section 518.003, subdivision 1, is amended to read:
Subdivision 1. [SCOPE.] For the purposes of The definitions in this section apply to this
chapter, the following terms have the meanings provided in this section unless the context clearly requires
otherwise.
Sec. 4. Minnesota Statutes 2000, section 518.005, is amended to read:
518.005 [RULES GOVERNING PROCEEDINGS.]
Subdivision 1. [APPLICABLE RULES.] Unless otherwise specifically provided, the rules of civil procedure for the district court apply to all proceedings under this chapter and chapters 517B and 517C.
Subd. 2. [TITLE.] A proceeding for dissolution of marriage, legal separation, or annulment shall
must be entitled "In re the Marriage of .......... and .......... ." A custody or support proceeding shall be
entitled "In re the (Custody) (Support) of .......... ."
Subd. 3. [NAMES OF PLEADINGS.] The initial pleading in all proceedings under sections 518.002 to
518.66 shall this chapter and chapters 517B and 517C must be denominated a petition. A responsive
pleading shall must be denominated an answer. Other pleadings shall must be
denominated as provided in the rules of civil procedure.
Subd. 4. [DECREE; JUDGMENT.] In sections 518.002 to 518.66 this chapter and chapters 517B
and 517C, "decree" includes "judgment."
Subd. 5. [PROHIBITED DISCLOSURE.] In all proceedings under this chapter and chapters 517B and 517C, in which public assistance is assigned under section 256.741 or the public authority provides services to a party or parties to the proceedings, notwithstanding statutory or other authorization for the public authority to release private data on the location of a party to the action, information on the location of one party may not be released by the public authority to the other party if:
(1) the public authority has knowledge that a protective order with respect to the other party has been entered; or
(2) the public authority has reason to believe that the release of the information may result in physical or emotional harm to the other party.
Subd. 6. [REQUIRED NOTICE.] Every court order or judgment and decree that provides for child support, spousal maintenance, custody, or parenting time must contain the notices required by section 517C.99.
Sec. 5. Minnesota Statutes 2000, section 518.01, is amended to read:
518.01 [VOID MARRIAGES.]
All marriages which are A marriage prohibited by section 517.03 shall be absolutely
is void, without any decree of dissolution or other legal proceedings; except if a person whose
husband or wife has been absent for four successive years, without being known to the person to be living during that
time, marries during the lifetime of the absent husband or wife, the marriage shall be is void only
from the time that its nullity is duly adjudged. If the absentee is declared dead in accordance with section 576.142,
the subsequent marriage shall is not be void.
Sec. 6. Minnesota Statutes 2000, section 518.02, is amended to read:
518.02 [VOIDABLE MARRIAGES.]
A marriage shall must be declared a nullity under the following circumstances
if:
(a) (1) a party lacked capacity to consent to the marriage at the time the marriage was
solemnized, either because of: (i) mental incapacity or infirmity and if the other
party at the time the marriage was solemnized did not know of the incapacity; or because of (ii) the
influence of alcohol, drugs, or other incapacitating substances; or because (iii) consent of either
was having been obtained by force or fraud and there was with no subsequent
voluntary cohabitation of the parties;
(b) (2) a party lacks the physical capacity to consummate the marriage by sexual intercourse and
the other party at the time the marriage was solemnized did not know of the incapacity; or
(c) (3) a party was under the age for marriage established by section 517.02.
Sec. 7. Minnesota Statutes 2000, section 518.03, is amended to read:
518.03 [ACTION TO ANNUL; DECREE.]
An annulment shall must be commenced and, the complaint shall be
filed, and proceedings had as in proceedings for dissolution. Upon due proof of the nullity of the marriage,
it shall must be adjudged null and void.
The provisions of sections 518.54 to 518.66 relating to property rights of the spouses, maintenance, support, and custody of children on dissolution of marriage are applicable to proceedings for annulment.
Sec. 8. Minnesota Statutes 2000, section 518.04, is amended to read:
518.04 [INSUFFICIENT GROUNDS FOR ANNULMENT.]
No marriage shall may be adjudged a nullity on the ground that one of the parties was under the
age of legal consent if it appears that the parties had voluntarily cohabited together as husband and wife after having
attained such that age; nor shall. The marriage of any an insane
person must not be adjudged void after restoration of the insane person to reason, if it appears that
the parties freely cohabited together as husband and wife after such the restoration to
reason.
Sec. 9. Minnesota Statutes 2000, section 518.05, is amended to read:
518.05 [ANNULMENT; WHEN TO BRING.]
An annulment may be sought by any of the following persons and must be commenced within the times specified, but in no event may an annulment be sought after the death of either party to the marriage:
(a) For a reason set forth in (1) under section 518.02, clause (a) (1), by either
party or by the legal representative of the party who lacked capacity to consent, no later than 90 days after the
petitioner obtained knowledge of the described condition;
(b) For the reason set forth in (2) under section 518.02, clause (b) (2), by either
party no later than one year after the petitioner obtained knowledge of the described condition;
(c) For the reason set forth in (3) under section 518.02, clause (c) (3), by the
underaged party, or the party's parent or guardian, before the time the underaged party
reaches the age at which the party could have married without satisfying the omitted requirement.
Sec. 10. Minnesota Statutes 2000, section 518.055, is amended to read:
518.055 [PUTATIVE SPOUSE.]
Any person who has cohabited with another to whom the person is not legally married in the good faith belief that
the person was married to the other is a putative spouse until knowledge of the fact that the person is not legally
married terminates the status and prevents acquisition of further rights. A putative spouse acquires the rights
conferred upon a legal spouse, including the right to maintenance following termination of the status, whether or
not the marriage is prohibited or declared a nullity. If there is a legal spouse or other putative spouses, rights
acquired by a putative spouse do not supersede the rights of the legal spouse or those acquired by other putative
spouses, but the court shall must apportion property, maintenance, and support rights among the
claimants as appropriate in the circumstances and in the interests of justice.
Sec. 11. Minnesota Statutes 2000, section 518.06, is amended to read:
518.06 [DISSOLUTION OF MARRIAGE; LEGAL SEPARATION; GROUNDS; UNCONTESTED LEGAL SEPARATION.]
Subdivision 1. [MEANING AND EFFECT OF DECREES; GROUNDS.] A dissolution of
marriage is the termination of the marital relationship between a husband and wife. A decree of dissolution
completely terminates the marital status of both parties. A legal separation is a court determination of the rights and
responsibilities of a husband and wife arising out of the marital relationship. A decree of legal separation does not
terminate the marital status of the parties.
A dissolution of a marriage shall must be granted by a county or district court when
if the court finds that there has been an irretrievable breakdown of the marriage relationship. A decree
of legal separation shall must be granted when if the court finds that one or
both parties need a legal separation.
Defenses to divorce, dissolution and legal separation, including, but not limited to, condonation, connivance, collusion, recrimination, insanity, and lapse of time, are abolished.
Subd. 3. [UNCONTESTED LEGAL SEPARATION.] If one or both parties petition for a decree of legal
separation and neither party contests the granting of the decree nor petitions for a decree of dissolution, the court
shall must grant a decree of legal separation.
Sec. 12. Minnesota Statutes 2000, section 518.07, is amended to read:
518.07 [RESIDENCE OF PARTIES.]
No A dissolution shall must not be granted unless (1) one of the parties has
resided in this state, or has been a member of the armed services stationed in this state, for
not less than at least 180 days immediately preceding the commencement of the proceeding; or (2)
one of the parties has been a domiciliary of this state for not less than at least 180 days immediately
preceding commencement of the proceeding.
Sec. 13. Minnesota Statutes 2000, section 518.09, is amended to read:
518.09 [PROCEEDING; HOW AND WHERE BROUGHT; VENUE.]
A proceeding for dissolution or legal separation may be brought by either or both spouses and shall be
is commenced by personal service of the summons and petition venued in the county where either spouse
resides. If neither party resides in the state and jurisdiction is based on the domicile of either spouse
party, the proceeding may be brought in the county where either party is domiciled. If neither party resides
or is domiciled in this state and jurisdiction is premised upon one of the parties being a member of the armed services
stationed in this state for not less than 180 days immediately preceding the commencement of the proceeding, the
proceeding may be brought in the county where the member is stationed. This venue shall be is
subject to the court's power of the court to change the place of hearing by consent of the parties,
or when if it appears to the court that an impartial hearing cannot be had in the county where the
proceedings are pending, or when if the convenience of the parties or the ends of justice would be
promoted by the change. No summons shall be if required if a joint petition is filed.
Sec. 14. Minnesota Statutes 2000, section 518.10, is amended to read:
518.10 [REQUISITES OF PETITION.]
The A petition for dissolution of marriage or legal separation shall must state
and allege:
(a) (1) the name, address, and, in circumstances in which child support or spousal maintenance
will be addressed, social security number of the petitioner and any prior or other name used by the petitioner;
(b) (2) the name and, if known, the address and, in circumstances in which child support or
spousal maintenance will be addressed, social security number of the respondent and any prior or other name used
by the respondent and known to the petitioner;
(c) (3) the place and date of the marriage of the parties;
(d) (4) in the case of a petition for dissolution, that either the petitioner or the respondent or both:
(1) (i) has resided in this state for not less than 180 days immediately preceding the
commencement of the proceeding, or;
(2) (ii) has been a member of the armed services and has been stationed in this state for not less
than 180 days immediately preceding the commencement of the proceeding,; or
(3) (iii) has been a domiciliary of this state for not less than 180 days immediately preceding the
commencement of the proceeding;
(e) (5) the name at the time of the petition and any prior or other name, social security number,
age, and date of birth of each living minor or dependent child of the parties born before the marriage or born or
adopted during the marriage and a reference to, and the expected date of birth of, a child of the parties conceived
during the marriage but not born;
(f) (6) whether or not a separate proceeding for dissolution, legal separation, or custody is
pending in a court in this state or elsewhere;
(g) (7) in the case of a petition for dissolution, that there has been an irretrievable breakdown
of the marriage relationship;
(h) (8) in the case of a petition for legal separation, that there is a need for a decree of legal
separation;
(i) (9) any temporary or permanent maintenance, child support, child custody, disposition of
property, attorneys' fees, costs and disbursements applied for without setting forth the amounts; and
(j) (10) whether an order for protection under chapter 518B or a similar law of another state that
governs the parties or a party and a minor child of the parties is in effect and, if so, the district court or similar
jurisdiction in which it was entered.
The petition shall must be verified by the petitioner or petitioners, and its allegations established
by competent evidence.
Sec. 15. Minnesota Statutes 2000, section 518.11, is amended to read:
518.11 [SERVICE; ALTERNATE SERVICE; PUBLICATION.]
(a) Unless a proceeding is brought by both parties, copies of the summons and petition shall must
be served on the respondent personally.
(b) When Service is made out of this state and within the United States, it may be proved
by the affidavit of the person making the same service. When Service is made
without outside of the United States it may be proved by the affidavit of the person making
the same service, taken before and certified by any United States minister, charge d'affaires,
commissioner, consul or commercial agent, or other consular or diplomatic officer of the United States appointed
to reside in such the country, including all deputies a deputy or other
representatives representative of such the officer authorized to perform
their the officer's duties; or before an officer authorized to administer an oath with the certificate
of an officer of a court of record of the country wherein such in which the affidavit is taken as to
the identity and authority of the officer taking the same affidavit.
(c) If personal service cannot be made, the court may order service of the summons by alternate means. The application for alternate service must include the last known location of the respondent; the petitioner's most recent contacts with the respondent; the last known location of the respondent's employment; the names and locations of the respondent's parents, siblings, children, and other close relatives; the names and locations of other persons who are likely to know the respondent's whereabouts; and a description of efforts to locate those persons.
The court shall must consider the length of time the respondent's location has been unknown,
the likelihood that the respondent's location will become known, the nature of the relief sought, and the nature of
efforts made to locate the respondent. The court shall must order service by first class mail,
forwarding address requested, to any addresses where there is a reasonable possibility that mail or information will
be forwarded or communicated to the respondent or, if no address so qualifies, then to the respondent's last known
address.
If the petitioner seeks disposition of real estate located within the state of in Minnesota, the court
shall must order that the summons, which shall must contain the legal description
of the real estate, be published in the county where the real estate is located. The court may also order publication,
within or without the state, but only if it might reasonably succeed in notifying the respondent of the proceeding.
Also, the court may require the petitioner to make efforts to locate the respondent by telephone calls to appropriate
persons. Service shall be is deemed complete 21 days after mailing or 21 days after court-ordered
publication.
Sec. 16. Minnesota Statutes 2000, section 518.12, is amended to read:
518.12 [TIME FOR ANSWERING.]
The respondent shall have has 30 days in which to answer the petition. In case of service by
publication, the 30 days shall does not begin to run until the expiration of the period allowed for
publication. In the case of a counterpetition for dissolution or legal separation to a petition for dissolution or legal
separation, no answer shall be is required to the counterpetition and the original petitioner shall
be is deemed to have denied each and every statement, allegation, and claim in the
counterpetition.
Sec. 17. Minnesota Statutes 2000, section 518.13, is amended to read:
518.13 [FAILURE TO ANSWER; FINDINGS; HEARING.]
Subdivision 1. [DEFAULT.] If the respondent does not appear after service duly made and proved, the court may hear and determine the proceeding as a default matter.
Subd. 2. [DISPUTE OVER IRRETRIEVABLE BREAKDOWN.] If one of the parties has denied under oath or
affirmation that the marriage is irretrievably broken, the court shall must consider all relevant
factors, including the circumstances that gave rise to the commencement of the proceeding and the prospect of
reconciliation, and shall make a finding whether the marriage is irretrievably broken.
A finding of irretrievable breakdown under this subdivision is a determination that there is no reasonable prospect of reconciliation. The finding must be supported by evidence that (i) the parties have lived separate and apart for a period of not less than 180 days immediately preceding the commencement of the proceeding, or (ii) there is serious marital discord adversely affecting the attitude of one or both of the parties toward the marriage.
Subd. 3. [AGREEMENT OVER IRRETRIEVABLE BREAKDOWN.] If both parties by petition or otherwise
have stated under oath or affirmation that the marriage is irretrievably broken, or one of the parties has so
stated and the other has not denied it, the court, after hearing, shall must make a finding that the
marriage is irretrievably broken.
Subd. 4. [REFEREE; OPEN COURT.] The court or judge, upon application, may refer the proceeding to a referee
to take and report the evidence therein. Hearings for dissolution of marriage shall must
be heard in open court or before a referee appointed by the court to receive the testimony of the witnesses,
or depositions taken as in other equitable actions. However, the court may in its discretion close the hearing.
Subd. 5. [APPROVAL WITHOUT HEARING.] Proposed findings of fact, conclusions of law, order for judgment, and judgment and decree must be submitted to the court for approval and filing without a final hearing in the following situations:
(1) if there are no minor children of the marriage, and (i) the parties have entered into a written stipulation, or (ii) the respondent has not appeared after service duly made and proved by affidavit and at least 20 days have elapsed since the time for answering under section 518.12 expired; or
(2) if there are minor children of the marriage, the parties have signed and acknowledged a stipulation, and all parties are represented by counsel.
Notwithstanding clause (1) or (2), the court shall must schedule the matter for hearing in
any case where if the proposed judgment and decree does not appear to be in the best interests of the
minor children or is contrary to the interests of justice.
Sec. 18. Minnesota Statutes 2000, section 518.131, is amended to read:
518.131 [TEMPORARY ORDERS AND RESTRAINING ORDERS.]
Subdivision 1. [PERMISSIBLE ORDERS.] In a proceeding brought for custody, dissolution, or legal separation,
or for disposition of property, or maintenance, or child support following the dissolution
of a marriage, either party may, by motion, request from the court and the court may grant a temporary order pending
the final disposition of the proceeding to or for:
(a) (1) temporary custody and parenting time regarding the minor children of the parties;
(b) (2) temporary maintenance of either spouse;
(c) temporary child support for the children of the parties;
(d) (3) temporary costs and reasonable attorney fees;
(e) (4) award the temporary use and possession, exclusive or otherwise, of the family home,
furniture, household goods, automobiles, and other property of the parties;
(f) (5) restrain one or both parties from transferring, encumbering, concealing, or disposing of
property except in the usual course of business or for the necessities of life, and to account to the court for all such
transfers, encumbrances, dispositions, and expenditures made after the order is served or communicated to the party
restrained in open court;
(g) (6) restrain one or both parties from harassing, vilifying, mistreating, molesting, disturbing
the peace, or restraining the liberty of the other party or the children of the parties;
(h) (7) restrain one or both parties from removing any minor child of the parties from the
jurisdiction of the court;
(i) (8) exclude a party from the family home of the parties or from the home of the other party;
and
(j) (9) require one or both of the parties to perform or to not perform such additional acts
as that will facilitate the just and speedy disposition of the proceeding, or will
protect the parties or their children from physical or emotional harm.
Subd. 2. [IMPERMISSIBLE ORDERS.] No A temporary order shall must not:
(a) (1) deny parenting time to a noncustodial parent unless the court finds that parenting
time by the noncustodial parent is likely to cause physical or emotional harm to the child;
(b) (2) exclude a party from the family home of the parties unless the court finds that physical
or emotional harm to one of the parties or to the children of the parties is likely to result, or that the
exclusion is reasonable in the circumstances; or
(c) (3) vacate or modify an order granted under section 518B.01, subdivision 6, paragraph (a),
clause (1), restraining an abusing party from committing acts of domestic abuse, except that the court may hear a
motion for modification of an order for protection concurrently with a proceeding for dissolution of marriage upon
notice of motion and motion. The notice required by court rule shall must not be waived. If the
proceedings are consolidated and the motion to modify is granted, a separate order for modification of an order for
protection shall must be issued.
Subd. 3. [EX PARTE RESTRAINING ORDER; LIMITATIONS.] A party may request and the court may make
an ex parte restraining order which may include that includes any matter that may be included in
a temporary order except it may not:
(a) A restraining order may not (1) exclude either party from the family home of the parties
except upon a finding by the court of immediate danger of physical harm to the other party or the children of either
party; and or
(b) A restraining order may not (2) deny parenting time to either party or grant custody of the
minor children to either party except upon a finding by the court of immediate danger of physical harm to the minor
children of the parties.
Subd. 4. [HEARING ON RESTRAINING ORDER; DURATION.] A restraining orders shall
order must be personally served upon the party to be restrained and shall be accompanied
along with a notice of the time and place of hearing for disposition of the matters contained in the
restraining order at a hearing for a temporary order. When If a restraining order has been issued,
a hearing on the temporary order shall must be held at the earliest practicable date. The restrained
party may upon written notice to the other party advance the hearing date to a time earlier than that noticed by the
other party. The restraining order shall continue continues in full force and effect only until the
hearing time noticed, unless the court, for good cause and upon notice, extends the time for hearing.
Subd. 5. [DURATION OF TEMPORARY ORDER.] A temporary order shall continue continues
in full force and effect until the earlier of its amendment or vacation, dismissal of the main action, or entry
of a final decree of dissolution or legal separation.
Subd. 6. [EFFECT OF DISMISSAL OF MAIN ACTION.] If a proceeding for dissolution or legal separation is dismissed, a temporary custody order is vacated unless one of the parties or the child's custodian moves that the proceeding continue as a custody proceeding and the court finds, after a hearing, that the circumstances of the parties and the best interests of the child require that a custody order be issued.
Subd. 7. [GUIDING FACTORS.] The court shall must be guided by the factors set forth in
sections 518.551 (concerning child support), 518.552 (concerning maintenance), 518.17 to 518.175
(concerning custody and parenting time), and 518.14 (concerning costs and attorney fees) in making temporary
orders and restraining orders.
Subd. 8. [BASIS FOR ORDER.] Temporary orders shall must be made solely on the basis of
affidavits and argument of counsel except upon demand by either party in a motion or responsive motion made
within the time limit for making and filing a responsive motion that the matter be heard on oral testimony before
the court, or if the court in its discretion orders the taking of oral testimony.
Subd. 9. [PREJUDICIAL EFFECT, REVOCATION; MODIFICATION.] A temporary order or restraining order:
(a) Shall (1) must not prejudice the rights of the parties or the child which are to be adjudicated
at subsequent hearings in the proceeding; and
(b) (2) may be revoked or modified by the court before the final disposition of the proceeding
upon the same grounds and subject to the same requirements as the initial granting of the order.
Subd. 10. [MISDEMEANOR.] In addition to being punishable by contempt, a violation of a provision of a
temporary order or restraining order granting the relief authorized in subdivision 1, clauses (f), (g)
clause (6), (7), or (h) (8) is a misdemeanor.
Subd. 11. [TEMPORARY SUPPORT AND MAINTENANCE.] Temporary support and
maintenance may be ordered during the time a parenting plan is being developed under section 518.1705.
Sec. 19. Minnesota Statutes 2000, section 518.14, subdivision 1, is amended to read:
Subdivision 1. [GENERAL.] (a) Except as provided in subdivision 2, in a proceeding under this chapter
or chapter 517B or 517C, the court shall must award attorney fees, costs, and
disbursements in an amount necessary to enable a party to carry on or contest the proceeding, provided
if it finds that:
(1) that the fees are necessary for the good-faith assertion of the party's rights in the proceeding and will
not contribute unnecessarily to the length and expense of the proceeding;
(2) that the party from whom fees, costs, and disbursements are sought has the means to pay them; and
(3) that the party to whom fees, costs, and disbursements are awarded does not have the means to pay
them.
(b) Nothing in this section precludes the court from awarding, in its discretion, additional fees, costs, and
disbursements against a party who unreasonably contributes to the length or expense of the proceeding. Fees, costs,
and disbursements provided for in this section may be awarded at any point in the proceeding, including a
modification proceeding under sections 518.18 and 518.64. The court may adjudge costs and disbursements against
either party. The court may authorize the collection of money awarded by execution, or out of property
sequestered, or in any other manner within the power of the court. An award of attorney's fees made by the court
during the pendency of the proceeding or in the final judgment survives the proceeding and if not paid by the party
directed to pay the same them may be enforced as above provided in the manner
provided in this paragraph or by a separate civil action brought in the attorney's own name. If the proceeding
is dismissed or abandoned prior to determination and award of attorney's fees, the court may nevertheless award
attorney's fees upon the attorney's motion. The award shall also survive survives the proceeding
and may be enforced in the same manner as last above provided in this paragraph.
Sec. 20. Minnesota Statutes 2000, section 518.148, is amended to read:
518.148 [CERTIFICATION OF DISSOLUTION.]
Subdivision 1. [CERTIFICATE OF DISSOLUTION.] An attorney or pro se party may prepare and submit to the
court a separate certificate of dissolution to be attached to the judgment and decree at the time of granting the
dissolution of marriage. Upon approval by the court and filing of the certificate of dissolution with the court
administrator, the court administrator shall must provide to any party upon request certified copies
of the certificate of dissolution.
Subd. 2. [REQUIRED INFORMATION.] The certificate shall must include the following
information:
(1) the full caption and file number of the case and the title "Certificate of Dissolution";
(2) the names and any prior or other names of the parties to the dissolution;
(3) the names of any living minor or dependent children as identified in the judgment and decree;
(4) that the marriage of the parties is dissolved;
(5) the date of the judgment and decree; and
(6) the social security number of the parties to the dissolution and the social security number of any living minor or dependent children identified in the judgment and decree.
Subd. 3. [CERTIFICATION.] The certificate of dissolution shall be is conclusive evidence of
the facts recited in the certificate.
Sec. 21. Minnesota Statutes 2000, section 518.24, is amended to read:
518.24 [SECURITY; SEQUESTRATION; CONTEMPT.]
In all cases when If maintenance or support payments are ordered, the court may require
sufficient security to be given for the payment of them according to the terms of the order. Upon neglect or refusal
to give security, or upon failure to pay the maintenance or support, the court may sequester
the obligor's personal estate and the rents and
profits of real estate of the obligor, and appoint a receiver of them. The court may cause the personal estate
and the rents and profits of the real estate to be applied according to the terms of the order. The obligor is presumed
to have an income from a source sufficient to pay the maintenance or support order. A child support
or maintenance order constitutes prima facie evidence that the obligor has the ability to pay the award. If the
obligor disobeys the order, it is prima facie evidence of contempt. The court may cite the obligor for contempt under
this section, section 518.617, or chapter 588.
Sec. 22. Minnesota Statutes 2000, section 518.25, is amended to read:
518.25 [REMARRIAGE; REVOCATION.]
When a dissolution has been granted, and the parties afterward intermarry If two people remarry each
other after dissolution of their prior marriage, the court, upon their joint application, and upon
satisfactory proof of such the marriage, may revoke all decrees and orders of dissolution,
maintenance, and subsistence which will that do not affect the rights of third persons.
Sec. 23. Minnesota Statutes 2000, section 518.54, subdivision 1, is amended to read:
Subdivision 1. [TERMS SCOPE.] For the purposes of sections 518.54 to 518.66, the terms
defined The definitions in this section shall have the meanings respectively ascribed to them
apply to sections 517A.30 to 517A.46.
Sec. 24. Minnesota Statutes 2000, section 518.54, subdivision 5, is amended to read:
Subd. 5. [MARITAL PROPERTY; EXCEPTIONS.] "Marital property" means property, real or personal
property, including vested public or private pension plan benefits or rights, acquired by one or both
of the parties, or either of them, to a dissolution, legal separation, or annulment proceeding at any time
during the existence of the marriage relation between them, or at any time during which the parties were living
together as husband and wife under a purported marriage relationship which is annulled in an annulment
proceeding, but prior to the date of valuation under section 518.58, subdivision 1. All property acquired by either
spouse subsequent to the marriage and before the valuation date is presumed to be marital property regardless of
whether title is held individually or by the spouses in a form of coownership such as joint tenancy, tenancy in
common, tenancy by the entirety, or community property. Each spouse shall be is deemed to have
a common ownership in marital property that vests not later than the time of the entry of the decree in a proceeding
for dissolution or annulment. The extent of the vested interest shall must be determined and made
final by the court pursuant to section 518.58. If a title interest in real property is held individually by only one
spouse, the interest in the real property of the nontitled spouse is not subject to claims of creditors or judgment or
tax liens until the time of entry of the decree awarding an interest to the nontitled spouse. The presumption of
marital property is overcome by a showing that the property is nonmarital property.
"Nonmarital property" means property real or personal, acquired by either spouse before, during, or after the existence of their marriage, which:
(a) (1) is acquired as a gift, bequest, devise, or inheritance made by a third party to one
but not to the other spouse;
(b) (2) is acquired before the marriage;
(c) (3) is acquired in exchange for or is the increase in value of property which is described in
clauses (a), (b), (d), and (e) clause (1), (2), (4), or (5);
(d) (4) is acquired by a spouse after the valuation date; or
(e) (5) is excluded by a valid antenuptial contract.
Sec. 25. Minnesota Statutes 2000, section 518.54, subdivision 6, is amended to read:
Subd. 6. [INCOME.] "Income" means any form of periodic payment to an individual including, but not limited
to, wages, salaries, payments to an independent contractor, workers' compensation, unemployment benefits,
and annuity, military and or naval retirement, pension and or disability
payments. "Income" does not include benefits received under Title IV-A of the Social Security Act
and or chapter 256J are not income under this section.
Sec. 26. Minnesota Statutes 2000, section 518.54, subdivision 7, is amended to read:
Subd. 7. [OBLIGEE.] "Obligee" means a person to whom payments for maintenance or support are owed.
Sec. 27. Minnesota Statutes 2000, section 518.54, subdivision 8, is amended to read:
Subd. 8. [OBLIGOR.] "Obligor" means a person obligated to pay maintenance or support. A person
who is designated as the sole physical custodian of a child is presumed not to be an obligor for purposes of
calculating current support under section 518.551 unless the court makes specific written findings to overcome this
presumption.
Sec. 28. Minnesota Statutes 2000, section 518.55, is amended to read:
518.55 [MAINTENANCE OR SUPPORT MONEY.]
Subdivision 1. [CONTENTS OF ORDER.] Every award of maintenance or support money in a judgment of
dissolution or legal separation shall must clearly designate whether the same it
is maintenance or support money, or what part of the award is maintenance and what part is support money. An
award of payments from future income or earnings of the custodial parent with whom the child
resides is presumed to be maintenance and an award of payments from the future income or earnings of the
noncustodial other parent is presumed to be support money, unless otherwise designated by the
court. In a judgment of dissolution or legal separation the court may determine, as one of the issues of the case,
whether or not either spouse is entitled to an award of maintenance notwithstanding that no award is then made, or
it may reserve jurisdiction of the issue of maintenance for determination at a later date.
Subd. 3. [NOTICE OF ADDRESS OR RESIDENCE CHANGE.] Every obligor shall must notify
the obligee and the public authority responsible for collection, if applicable, of a change of address or residence
within 60 days of the address or residence change. Every order for support or maintenance must contain
a conspicuous notice complying with section 518.68, subdivision 2. The court may waive or modify the requirements
of this subdivision by order if necessary to protect the obligor from contact by the obligee.
Subd. 4. [DETERMINATION OF CONTROLLING ORDER.] The public authority or a party may request the district court to determine a controlling order in situations in which more than one order involving the same obligor and child exists.
Sec. 29. Minnesota Statutes 2000, section 518.552, is amended to read:
518.552 [MAINTENANCE.]
Subdivision 1. [JURISDICTION; GROUNDS.] In a proceeding for dissolution of marriage or legal separation, or in a proceeding for maintenance following dissolution of the marriage by a court which lacked personal jurisdiction over the absent spouse and which has since acquired jurisdiction, the court may grant a maintenance order for either spouse if it finds that the spouse seeking maintenance:
(a) (1) lacks sufficient property, including marital property apportioned to the spouse, to provide
for reasonable needs of the spouse considering the standard of living established during the marriage, especially, but
not limited to, a period of training or education,; or
(b) (2) is unable to provide adequate self-support, after considering the standard of living
established during the marriage and all relevant circumstances, through appropriate employment, or is
the custodian of if a child whose resides with the spouse and the child's condition or
circumstances make it appropriate that the custodian spouse not be required to seek employment
outside the home.
Subd. 2. [AMOUNT; DURATION.] The maintenance order shall must be in amounts and for
periods of time, either temporary or permanent, as that the court deems just, without regard
to marital misconduct, and after considering all relevant factors including:
(a) (1) the financial resources of the party seeking maintenance, including marital property
apportioned to the party, and the party's ability to meet needs independently, including the extent to which a
provision for support of a child living with the party includes a sum for that party as custodian
caretaker;
(b) (2) the time necessary to acquire sufficient education or training to enable the party seeking
maintenance to find appropriate employment, and the probability, given the party's age and skills, of completing
education or training and becoming fully or partially self-supporting;
(c) (3) the standard of living established during the marriage;
(d) (4) the duration of the marriage and, in the case of a homemaker, the length of absence from
employment and the extent to which any education, skills, or experience have become outmoded and earning capacity
has become permanently diminished;
(e) (5) the loss of earnings, seniority, retirement benefits, and other employment opportunities
forgone by the spouse seeking spousal maintenance;
(f) (6) the age, and the physical and emotional condition of the spouse seeking
maintenance;
(g) (7) the ability of the spouse from whom maintenance is sought to meet needs while meeting
those of the spouse seeking maintenance; and
(h) (8) the contribution of each party in the acquisition, preservation, depreciation, or
appreciation in the amount or value of the marital property, as well as the contribution of a spouse as a homemaker
or in furtherance of the other party's employment or business.
Subd. 3. [PERMANENCY OF AWARD.] Nothing in This section shall must not be
construed to favor a temporary award of maintenance over a permanent award, where if the factors
under subdivision 2 justify a permanent award.
Where If there is some uncertainty as to the necessity of a permanent award, the court
shall must order a permanent award leaving its order open for later modification.
Subd. 4. [REOPENING MAINTENANCE AWARDS.] Section 518.145, subdivision 2, applies to
maintenance awards of spousal maintenance.
Subd. 5. [PRIVATE AGREEMENTS.] The parties may expressly preclude or limit modification of maintenance
through a stipulation, if the court makes specific findings that the stipulation is fair and,
equitable, is and supported by consideration described in the findings, and that full
disclosure of each party's financial circumstances has occurred. The stipulation must be made a part of the judgment
and decree.
Sec. 30. Minnesota Statutes 2000, section 518.58, is amended to read:
518.58 [DIVISION OF MARITAL PROPERTY.]
Subdivision 1. [GENERAL.] Upon a dissolution of a marriage, an annulment, or in a proceeding for disposition
of property following a dissolution of marriage by a court which lacked personal jurisdiction over the absent spouse
or lacked jurisdiction to dispose of the property and which has since acquired jurisdiction, the court shall
must make a just and equitable division of the marital property of the parties without regard to marital
misconduct, after making findings regarding the division of the property. The court shall must base
its findings on all relevant factors including the length of the marriage, any prior marriage of a party, the age, health,
station, occupation, amount and sources of income, vocational skills, employability, estate, liabilities, needs,
opportunity for future acquisition of capital assets, and income of each party. The court shall must
also consider the contribution of each in the acquisition, preservation, depreciation, or appreciation in the
amount or value of the marital property, as well as the contribution of a spouse as a homemaker. It shall be
is conclusively presumed that each spouse made a substantial contribution to the acquisition of income and
property while they were living together as husband and wife. The court may also award to either spouse the
household goods and furniture of the parties, whether or not acquired during the marriage. The court shall
must value marital assets for purposes of division between the parties as of the day of the initially scheduled
prehearing settlement conference, unless a different date is agreed upon by the parties, or unless the
court makes specific findings that another date of valuation is fair and equitable. If there is a substantial change in
value of an asset between the date of valuation and the final distribution, the court may adjust the valuation of that
asset as necessary to effect an equitable distribution.
Subd. 1a. [TRANSFER, ENCUMBRANCE, CONCEALMENT, OR DISPOSITION OF MARITAL ASSETS.]
In contemplation of commencing or during the pendency of a marriage dissolution, separation, or
annulment proceeding, or in contemplation of commencing a marriage dissolution, separation, or annulment
proceeding, each party owes a fiduciary duty to the other for any profit or loss derived by the party, without the
consent of the other, from a transaction or from any use by the party of the marital assets. If the court finds that a
party to a marriage, without consent of the other party, has in contemplation of commencing, or during the
pendency of, the current dissolution, separation, or annulment proceeding, transferred, encumbered,
concealed, or disposed of marital assets except in the usual course of business or for the necessities of life, the court
shall must compensate the other party by placing both parties in the same position that they would
have been in had the transfer, encumbrance, concealment, or disposal not occurred. The burden of proof under this
subdivision is on the party claiming that the other party transferred, encumbered, concealed, or disposed of marital
assets in contemplation of commencing or during the pendency of the current dissolution, separation, or annulment
proceeding, without consent of the claiming party, and that the transfer, encumbrance, concealment, or
disposal was not in the usual course of business or for the necessities of life. In compensating a party under this
section, the court, in dividing the marital property, may impute the entire value of an asset and a fair return on the
asset to the party who transferred, encumbered, concealed, or disposed of it. Use of a power of attorney, or
the absence of a restraining order against the transfer, encumbrance, concealment, or disposal of marital property
is not available as a defense under this subdivision.
Subd. 2. [AWARD OF NONMARITAL PROPERTY.] If the court finds that either spouse's resources or property,
including the spouse's portion of the marital property as defined in section 518.54, subdivision 5, are so inadequate
as to work an unfair hardship, considering all relevant circumstances, the court may, in addition to the marital
property, apportion up to one-half of the property otherwise excluded under section 518.54, subdivision 5, clauses
(a) to (d), to prevent the unfair hardship. If the court apportions property other than marital property, it shall
must make findings in support of the apportionment. The findings shall must be based
on all relevant factors including the length of the marriage, any prior marriage of a party, the age, health, station,
occupation, amount and sources of income, vocational skills, employability, estate, liabilities, needs, and opportunity
for future acquisition of capital assets and income of each party.
Subd. 3. [SALE OR DISTRIBUTION WHILE PROCEEDING PENDING.] (a) If the court finds that it is necessary to preserve the marital assets of the parties, the court may order the sale of the homestead of the parties or the sale of other marital assets, as the individual circumstances may require, during the pendency of a proceeding for a dissolution of marriage or an annulment. If the court orders a sale, it may further provide for the disposition
of the funds received from the sale during the pendency of the proceeding. If liquid or readily liquidated marital
property other than property representing vested pension benefits or rights is available, the court, so far as possible,
shall must divide the property representing vested pension benefits or rights by the disposition of
an equivalent amount of the liquid or readily liquidated property.
(b) The court may order a partial distribution of marital assets during the pendency of a proceeding for a
dissolution of marriage or an annulment for good cause shown or upon the request of both parties, provided
that as long as the court shall fully protect protects the interests of the other
party.
Subd. 4. [PENSION PLANS.] (a) The division of marital property that represents pension plan benefits or rights in the form of future pension plan payments:
(1) is payable only to the extent of the amount of the pension plan benefit payable under the terms of the plan;
(2) is not payable for a period that exceeds the time that pension plan benefits are payable to the pension plan benefit recipient;
(3) is not payable in a lump sum amount from pension plan assets attributable in any fashion to a spouse with the status of an active member, deferred retiree, or benefit recipient of a pension plan;
(4) if the former spouse to whom the payments are to be made dies prior to the end of the specified payment period with the right to any remaining payments accruing to an estate or to more than one survivor, is payable only to a trustee on behalf of the estate or the group of survivors for subsequent apportionment by the trustee; and
(5) in the case of public pension plan benefits or rights, may not commence until the public plan member submits a valid application for a public pension plan benefit and the benefit becomes payable.
(b) The An individual retirement account plans plan established under chapter
354B may provide in its plan document, if published and made generally available, for an alternative marital
property division or distribution of individual retirement account plan assets. If an alternative division or distribution
procedure is provided, it applies in place of paragraph (a), clause (5).
Sec. 31. Minnesota Statutes 2000, section 518.581, is amended to read:
518.581 [SURVIVING SPOUSE BENEFIT.]
Subdivision 1. [AWARD OF BENEFIT.] If a current or former employee's marriage is dissolved, the court may order the employee, the employee's pension plan, or both, to pay amounts as part of the division of pension rights that the court may make under section 518.58, or as an award of maintenance in the form of a percentage of periodic or other payments or in the form of a fixed dollar amount. The court may, as part of the order, award a former spouse all or part of a survivor benefit unless the plan does not allow by law the payment of a surviving spouse benefit to a former spouse.
Subd. 2. [PAYMENT OF FUNDS BY RETIREMENT PLAN.] (a) If the court has ordered that a spouse has an
interest in a pension plan, the court may order the pension plan to withhold payment of a refund upon termination
of employment or lump sum distribution to the extent of the spouse's interest in the plan, or to provide
survivor benefits ordered by the court.
(b) The court may not order the pension plan to:
(1) pay more than the equivalent of one surviving spouse benefit, regardless of the number of spouses or former spouses who may be sharing in a portion of the total benefit;
(2) pay surviving spouse benefits under circumstances where the plan member does not have a right to elect surviving spouse benefits;
(3) pay surviving spouse benefits to a former spouse if the former spouse would not be eligible for benefits under the terms of the plan; or
(4) order survivor benefits which, when combined with the annuity or benefit payable to the pension plan member, exceed the actuarial equivalent value of the normal retirement annuity form, determined under the plan documents of the pension plan then in effect and the actuarial assumptions then in effect for calculating optional annuity forms by the pension plan or for calculating the funding requirements of the pension plan if no optional annuity forms are provided by the pension plan.
(c) If more than one spouse or former spouse is entitled to a surviving spouse benefit, the pension plan
shall must pay each spouse a portion of the benefit based on the ratio of the number of years the
spouse was married to the plan member to the total number of years the plan member was married to spouses who
are entitled to the benefit.
Subd. 3. [NOTICE TO FORMER SPOUSE.] A pension plan shall must notify a former spouse
of an application by the employee for a refund of pension benefits if the former spouse has filed with the pension
plan:
(1) a copy of the court order, including a withholding order, determining the former spouse's rights;
(2) the name and last known address of the employee; and
(3) the name and address of the former spouse.
A pension plan shall must comply with an order, including a withholding order, issued by a court
having jurisdiction over dissolution of marriage that is served on the pension plan, if the order states the name, last
known address of the payees, and name and address of the former spouse, or if the names and addresses are
provided to the pension plan with service of the order.
Subd. 4. [DEFINITIONS.] For purposes of The definitions in this subdivision apply to this
section, the following terms have the meanings given in this subdivision.
(a) "Current or former employee" or "employee" means an individual who has an interest in a pension plan.
(b) "Surviving spouse benefit" means (1) a benefit a surviving spouse may be eligible for under the laws and bylaws of the pension plan if the employee dies before retirement, or (2) a benefit selected for or available to a surviving spouse under the laws and bylaws of the pension plan upon the death of the employee after retirement.
Sec. 32. Minnesota Statutes 2000, section 518.582, is amended to read:
518.582 [PROCEDURE FOR VALUING PENSION BENEFITS OR RIGHTS.]
Subdivision 1. [APPOINTMENT OF ACTUARY.] Each A court of this state that has
with jurisdiction to decide marriage dissolution matters may appoint a qualified person experienced in the
valuation of pension benefits and rights to function as an expert witness in valuing pension benefits or rights.
Subd. 2. [STANDARDS.] A court appointed actuary shall must determine the present value of
pension benefits or rights that are marital property of the parties to the action based on the applicable plan documents
of the pension plan and the applicable actuarial assumptions specified for use in calculating optional annuity forms
by the pension plan or for funding the pension plan, if reasonable, or as specified by the court. The court appointed
actuary shall must report to the court and to the parties the present value of the pension benefits
or rights that are marital property.
Subd. 3. [COMPENSATION.] The court appointed actuary may be compensated at a rate established by the court.
The compensation of the court appointed actuary shall must be allocated between the parties as the
court directs.
Subd. 4. [STIPULATION.] In lieu of valuing pension benefits or rights through use of the court appointed actuary, the parties may stipulate the present value of pension benefits or rights that are marital property.
Sec. 33. Minnesota Statutes 2000, section 518.62, is amended to read:
518.62 [TEMPORARY MAINTENANCE.]
Temporary maintenance and temporary support may be awarded as provided in section 518.131. The
court may also award to either party to the proceeding, having due regard to all the circumstances and the party
awarded the custody of the children, the right to the exclusive use of the household goods and furniture of the parties
pending the proceeding and the right to the use of the homestead of the parties, exclusive or otherwise, pending the
proceeding. The court may order either party to remove from the homestead of the parties upon proper application
to the court for an order pending the proceeding.
Sec. 34. Minnesota Statutes 2000, section 518.64, subdivision 1, is amended to read:
Subdivision 1. [AUTHORITY.] After an order for temporary or permanent maintenance or support
money, temporary or permanent, or for the appointment of trustees to receive property awarded as maintenance
or support money, the court may from time to time, on motion of either of the parties, a copy of which is
served on the public authority responsible for child support enforcement if payments are made through it,
or on motion of the public authority responsible for support enforcement, modify the order respecting the amount
of maintenance or support money, and the its payment of it, and also respecting
the or appropriation and payment of the principal and income of property held in trust, and may make
an order respecting these matters which it might have made in the original proceeding, except as herein
otherwise provided subject to subdivisions 2 to 5. A party or the public authority also may bring a
motion for contempt of court if the obligor is in arrears in support or maintenance payments.
Sec. 35. Minnesota Statutes 2000, section 518.64, subdivision 2, is amended to read:
Subd. 2. [MODIFICATION.] (a) The terms of an order respecting maintenance or support may be
modified upon a showing of one or more of the following: (1) substantially increased or decreased earnings of a
party; (2) substantially increased or decreased need of a party or the child or children that are the subject of these
proceedings; (3) receipt of assistance under the AFDC program formerly codified under sections 256.72 to
256.87 or 256B.01 to 256B.40, or chapter 256J or 256K; (4) a change in the cost of living for either party as
measured by the federal bureau of statistics, any of which makes the terms unreasonable and unfair; (5) extraordinary
medical expenses of the child not provided for under section 518.171; or (6) the addition of work-related or
education-related child care expenses of the obligee or a substantial increase or decrease in existing work-related or
education-related child care expenses.
On a motion to modify support, the needs of any child the obligor has after the entry of the support order that
is the subject of a modification motion shall be considered as provided by section 518.551, subdivision 5f.
(b) It is presumed that there has been a substantial change in circumstances under paragraph (a) and the terms
of a current support order shall be rebuttably presumed to be unreasonable and unfair if:
(1) the application of the child support guidelines in section 518.551, subdivision 5, to the current
circumstances of the parties results in a calculated court order that is at least 20 percent and at least $50 per month
higher or lower than the current support order;
(2) the medical support provisions of the order established under section 518.171 are not enforceable by the
public authority or the custodial parent;
(3) health coverage ordered under section 518.171 is not available to the child for whom the order is
established by the parent ordered to provide; or
(4) the existing support obligation is in the form of a statement of percentage and not a specific dollar
amount.
(c) (b) On a motion for modification of maintenance, including a motion for the extension of the
duration of a maintenance award, the court shall must apply, in addition to all other relevant
factors, the factors for an award of maintenance under section 518.552 that exist at the time of the motion. On
a motion for modification of support, the court:
(1) shall apply section 518.551, subdivision 5, and shall not consider the financial circumstances of each
party's spouse, if any; and
(2) shall not consider compensation received by a party for employment in excess of a 40-hour work week,
provided that the party demonstrates, and the court finds, that:
(i) the excess employment began after entry of the existing support order;
(ii) the excess employment is voluntary and not a condition of employment;
(iii) the excess employment is in the nature of additional, part-time employment, or overtime employment
compensable by the hour or fractions of an hour;
(iv) the party's compensation structure has not been changed for the purpose of affecting a support or
maintenance obligation;
(v) in the case of an obligor, current child support payments are at least equal to the guidelines amount based
on income not excluded under this clause; and
(vi) in the case of an obligor who is in arrears in child support payments to the obligee, any net income from
excess employment must be used to pay the arrearages until the arrearages are paid in full.
(d) (c) A modification of support or maintenance, including interest that accrued
pursuant to section 548.091, may be made retroactive only with respect to any period during which the petitioning
party has pending a motion for modification but only from the date of service of notice of the motion on the
responding party and on the public authority if public assistance is being furnished or the county attorney is the
attorney of record. However, modification may be applied to an earlier period if the court makes express findings
that:
(1) the party seeking modification was precluded from serving a motion by reason of a significant physical or mental disability, a material misrepresentation of another party, or fraud upon the court and that the party seeking modification, when no longer precluded, promptly served a motion;
(2) the party seeking modification was a recipient of federal Supplemental Security Income (SSI), Title II Older Americans, Survivor's Disability Insurance (OASDI), other disability benefits, or public assistance based upon need during the period for which retroactive modification is sought; or
(3) the order for which the party seeks amendment was entered by default, the party shows good cause for not appearing, and the record contains no factual evidence, or clearly erroneous evidence regarding the individual obligor's ability to pay.
The court may provide that a reduction in the amount allocated for child care expenses based on a substantial decrease in the expenses is effective as of the date the expenses decreased.
(e) (d) Except for an award of the right of occupancy of the homestead, provided in
under section 518.63, all divisions of real and personal property provided by section 518.58 shall be
are final, and may be revoked or modified only where if the court finds the existence of
conditions that justify reopening a judgment under the laws of this state, including motions under section 518.145,
subdivision 2. The court may impose a lien or charge on the divided property at any time while the property, or
subsequently acquired property, is owned by the parties or either of them, for the payment of maintenance or support
money, or may sequester the property as is provided by under section 518.24.
(f) (e) The court need not hold an evidentiary hearing on a motion for modification of
maintenance or support.
(g) (f) Section 518.14 shall govern governs the award of attorney fees for
motions brought under this subdivision.
Sec. 36. Minnesota Statutes 2000, section 518.641, is amended to read:
518.641 [COST-OF-LIVING ADJUSTMENTS IN MAINTENANCE OR CHILD SUPPORT ORDER.]
Subdivision 1. [REQUIREMENT.] An order for maintenance or child support shall must provide
for a biennial adjustment in the amount to be paid based on a change in the cost of living. An order that provides
for a cost-of-living adjustment shall must specify the cost-of-living index to be applied and the date
on which the cost-of-living adjustment shall become becomes effective. The court may use the
consumer price index for all urban consumers, Minneapolis-St. Paul (CPI-U), the consumer price index for wage
earners and clerical, Minneapolis-St. Paul (CPI-W), or another cost-of-living index published by the department of
labor which it specifically finds is more appropriate. Cost-of-living increases under this section shall
must be compounded. The court may also increase the amount by more than the cost-of-living adjustment
by agreement of the parties or by making further findings. The adjustment becomes effective on the first of May of
the year in which it is made, for cases in which payment is made to the public authority. For cases in which payment
is not made to the public authority, application for an adjustment may be made in any month but no application for
an adjustment may be made sooner than two years after the date of the dissolution decree. A court may waive the
requirement of the cost-of-living clause if it expressly finds that the obligor's occupation or income, or both, does
not provide for cost-of-living adjustment or that the order for maintenance or child support has a provision
such as a step increase that has the effect of a cost-of-living clause. The court may waive a cost-of-living adjustment
in a maintenance order if the parties so agree in writing. The commissioner of human services may promulgate
rules for child support adjustments under this section in accordance with the rulemaking provisions of chapter
14. Notice of this statute must comply with section 518.68, subdivision 2.
Subd. 2. [CONDITIONS.] No adjustment under this section may be made unless the order provides for it and
until
(a) the following conditions are met:
(a) (1) the obligee serves notice of the application for adjustment by mail on the obligor at the
obligor's last known address at least 20 days before the effective date of the adjustment;
(b) (2) the notice to the obligor informs the obligor of the date on which the adjustment in
payments will become effective; and
(c) (3) after receipt of notice and before the effective day of the adjustment, the obligor fails to
request a hearing on the issue of whether the adjustment should take effect, and ex parte, to stay imposition of the
adjustment pending outcome of the hearing; or
(d) (b) the public authority sends notice of its application for adjustment to the obligor at the
obligor's last known address at least 20 days before the effective date of the adjustment, and the notice informs the
obligor of the date on which the adjustment will become effective and the procedures for contesting the adjustment
according to section 484.702.
Subd. 3. [RESULT OF HEARING.] If, at a hearing pursuant to this section, the obligor establishes an insufficient
cost of living or other increase in income that prevents fulfillment of the adjusted maintenance or child
support obligation, the court may direct that all or part of the adjustment not take effect. If, at the hearing, the
obligor does not establish this insufficient increase in income, the adjustment shall must take effect
as of the date it would have become effective had no hearing been requested.
Subd. 4. [FORM.] The department of human services shall prepare and make available to the court and
obligors a form to be submitted to the department by the obligor in support of a request for hearing under this section
regarding a child support order.
Subd. 5. [REQUEST FOR COST-OF-LIVING CLAUSE.] A motion for enforcement or modification of
an existing maintenance or child support order shall must include a request for a
cost-of-living clause. The court may deny the request only upon an express finding that the obligor's occupation,
income, or both, does not provide for a cost-of-living adjustment or that the existing maintenance or child
support order either has a cost-of-living clause or sets forth a step increase which has the effect of a
cost-of-living adjustment.
Sec. 37. Minnesota Statutes 2000, section 518.642, is amended to read:
518.642 [OVERPAYMENTS.]
If child support or maintenance is not assigned under section 256.741, and an obligor has
overpaid a child support or maintenance obligation because of a modification or error in the amount owed,
the public authority shall must:
(1) apply the amount of the overpayment to reduce the amount of any child support or
maintenance-related arrearages or debts owed to the obligee; and
(2) if an overpayment exists after the reduction of any arrearage or debt, reduce the amount of the child
support maintenance remitted to the obligee by an amount no greater than 20 percent of the current
monthly support or maintenance obligation and remit this amount to the obligor until the overpayment is
reduced to zero.
Sec. 38. [518.643] [MAINTENANCE PAYMENT ENFORCEMENT.]
The enforcement requirements and procedures in sections 518.551, subdivisions 1, 12, 13, 13a, and 14, 518.5511, 518.6111, 518.614, 518.615, 518.616, and 518.617, apply to maintenance payments as well as child support obligations.
Sec. 39. Minnesota Statutes 2000, section 518.646, is amended to read:
518.646 [NOTICE OF ORDER.]
Whenever these laws require If a law requires service of a court's order on an employer,
union, or payor of funds, service of a verified notice of order may be made in lieu thereof of the
order. The verified notice shall must contain the title of the action, the name of the court, the
court file number, the date of the court order, and shall recite the operative provisions of the order.
Sec. 40. Minnesota Statutes 2000, section 518.65, is amended to read:
518.65 [PROPERTY; SALE, PARTITION.]
In order to effect a division or award of property as is provided by under section 518.58, the court
may order property sold or partitioned. Personal property may be ordered sold in the manner directed by the
court, and real estate may be partitioned in the manner provided by Minnesota Statutes 1949, chapter 558.
Sec. 41. [INSTRUCTION TO REVISOR.]
The revisor of statutes must renumber the sections in Minnesota Statutes 2000 listed in column A as indicated in column B and correct cross-references to those sections throughout Minnesota Statutes and Minnesota Rules.
A B
518.002 517A.02, subd. 5
518.003 517A.01
518.005 517A.02
518.01 517A.05
518.02 517A.08
518.03 517A.09
518.04 517A.10
518.05 517A.11
518.055 517A.12
518.06 517A.15
518.07 517A.16
518.09 517A.17
518.091 517A.18
518.10 517A.19
518.11 517A.20
518.12 517A.21
518.13 517A.22
518.131 517A.03
518.14 517A.04
518.145 517A.23
518.146 517A.24
518.148 517A.26
518.191 517A.27
518.195 517A.28
518.24 517A.29
518.25 517A.30
518.27 517A.31
518.54, subd. 1 517A.32, subd. 1
518.54, subd. 2a 517A.32, subd. 2
518.54, subd. 2b 517A.32, subd. 3
518.54, subd. 3 517A.32, subd. 4
518.54, subd. 4 517A.32, subd. 5
518.54, subd. 5 517A.32, subd. 6
518.54, subd. 6 517A.32, subd. 7
518.54, subd. 7 517A.32, subd. 8
518.54, subd. 8 517A.32, subd. 9
518.54, subd. 9 517A.32, subd. 10
518.54, subd. 10 517A.32, subd. 11
518.54, subd. 11 517A.32, subd. 12
518.54, subd. 12 517A.32, subd. 13
518.55 517A.34
518.552 517A.33
518.58 517A.35
518.581 517A.36
518.582 517A.37
518.583 517A.38
518.63 517A.41
518.64 517A.42
518.641, subd. 1 517A.43, subd. 1
518.641, subd. 2 517A.43, subd. 2
518.641, subd. 3 517A.43, subd. 3
518.641, subd. 4 517A.43, subd. 4
518.642 517A.44
518.646 517A.06
518.65 517A.46
518.68 517A.07
Sec. 42. [REPEALER.]
Minnesota Statutes 2000, section 518.64, subdivisions 4, 4a, and 5, are repealed.
ARTICLE 13
CUSTODY, PARENTING TIME, AND VISITATION
GENERAL
Section 1. [517B.01] [DEFINITIONS.]
Subdivision 1. [SCOPE.] The definitions in this section apply to this chapter.
Sec. 2. [517B.03] [TEMPORARY ORDERS RELATING TO CUSTODY AND PARENTING TIME.]
(a) A temporary order for custody or parenting time may be sought under section 518.131.
(b) A party seeking a temporary custody order must submit with moving papers an affidavit setting forth facts supporting the requested order. The party must give notice and a copy of the affidavit to other parties to the proceeding, who may file opposing affidavits.
Sec. 3. [517B.04] [CUSTODY AND PARENTING TIME NOTICES.]
A court order or judgment and decree concerning custody of or parenting time with a minor child must contain the notice set out in section 517C.99, subdivision 3.
Sec. 4. [517B.05] [ATTORNEY FEES, COSTS, AND DISBURSEMENTS.]
Attorney fees, costs, and disbursements must be awarded in a proceeding under this chapter as provided by section 518.14.
Sec. 5. [517B.17] [CUSTODY OF CHILDREN.]
Subdivision 1. [CUSTODY ORDER.] Upon adjudging the nullity of a marriage, in a dissolution or legal separation proceeding, or in a child custody proceeding, the court must make a further order as it deems just and proper concerning:
(1) the legal custody of each minor child of the parties, which must be sole or joint; and
(2) their physical custody and residence.
Subd. 2. [STANDARD; PREFERENCE PROHIBITED.] In determining custody, the court must consider the best interests of the child and must not prefer one parent over the other solely on the basis of the sex of the parent.
Subd. 3. [THE BEST INTERESTS OF THE CHILD; FACTORS.] "The best interests of the child" means all relevant factors to be considered and evaluated by the court including:
(1) the wishes of the child's parent or parents as to custody;
(2) the reasonable preference of the child, if the court deems the child to be of sufficient age to express a preference;
(3) the child's primary caretaker;
(4) the intimacy of the relationship between each parent and the child;
(5) the interaction and interrelationship of the child with a parent or parents, siblings, and any other person who may significantly affect the child's best interests;
(6) the child's adjustment to home, school, and community;
(7) the length of time the child has lived in a stable, satisfactory environment and the desirability of maintaining continuity;
(8) the permanence, as a family unit, of the existing or proposed home;
(9) the mental and physical health of all individuals involved; except that a disability, as defined in section 363.01, of a parent or the child is not determinative of the custody of the child, unless the proposed custodial arrangement is not in the best interest of the child;
(10) the capacity and disposition of the parties to give the child love, affection, and guidance, and to continue educating and raising the child in the child's culture and religion or creed, if any;
(11) the child's cultural background;
(12) the effect on the child of the actions of an abuser, if related to domestic abuse, as defined in section 518B.01, that has occurred between the parents or between a parent and another individual, whether or not the individual alleged to have committed domestic abuse is or ever was a family or household member of the parent;
(13) except in cases in which a finding of domestic abuse as defined in section 518B.01 has been made, the disposition of each parent to encourage and permit frequent and continuing contact by the other parent with the child; and
(14) evidence of a violation of section 609.507.
Subd. 4. [BEST INTERESTS DETERMINATION.] The court must make detailed findings on each of the factors in subdivision 3 and explain how the factors led to its conclusion and to the determination of the best interests of the child. In determining the best interests of a child, the court may not use one factor in subdivision 3 to the exclusion of all others. The primary caretaker factor may not be used as a presumption in determining the best interests of the child. The court may not consider conduct of a parent that does not affect the parent's relationship to the child.
Sec. 6. [517B.18] [JOINT CUSTODY.]
Subdivision 1. [FACTORS WHEN JOINT CUSTODY IS SOUGHT.] In addition to the factors listed in section 517B.17, if either joint legal or joint physical custody is sought, the court must consider the following relevant factors:
(1) the ability of parents to cooperate in the rearing of their child;
(2) methods for resolving disputes regarding any major decision concerning the life of the child, and the parents' willingness to use those methods;
(3) whether it would be detrimental to the child if one parent were to have sole authority over the child's upbringing; and
(4) whether domestic abuse, as defined in section 518B.01, has occurred between the parents.
Subd. 2. [PRESUMPTIONS; FINDINGS.] (a) The court must use a rebuttable presumption that upon request of either or both parties, joint legal custody is in the best interests of the child. However, the court must use a rebuttable presumption that joint legal or physical custody is not in the best interests of the child if domestic abuse, as defined in section 518B.01, has occurred between the parents.
(b) If the court awards joint legal or physical custody over the objection of a party, the court must make detailed findings on each of the factors in this section and explain how the factors led to its determination that joint custody would be in the best interests of the child.
Subd. 3. [JOINT CUSTODY; SUPPORT GUIDELINES.] An award of joint legal custody is not a reason for departure from the support guidelines in section 518.551, subdivision 5.
Sec. 7. [517B.19] [CUSTODY; ACCESS RIGHTS OF PARENTS; LIMITATIONS.]
Subdivision 1. [ACCESS; LIMITATIONS.] (a) Whether sole or joint legal custody is ordered, the court must grant the following rights to each of the parties, unless specific findings are made under section 518.68, subdivision 1. Each party:
(1) has the right of access to, and to receive copies of, a minor child's school, medical, dental, religious training, and other important records and information;
(2) has the right of access to information regarding health or dental insurance available to a minor child;
(3) must keep the other party informed as to the name and address of the school a minor child attends;
(4) must notify the other party, in the case of an accident or serious illness of a minor child, of the accident or illness, and the name of the health care provider and the place of treatment; and
(5) has the right to reasonable access and telephone contact with a minor child.
(b) Each party has the right to be informed by school officials about a child's welfare, educational progress and status, and to attend school and parent-teacher conferences. The school is not required to hold a separate conference for each party.
(c) The court may waive any of the rights under this subdivision if it finds it is necessary to protect the welfare of a party or child.
Sec. 8. Minnesota Statutes 2000, section 518.003, subdivision 3, is amended to read:
Subd. 3. [CUSTODY.] Unless otherwise agreed by the parties:
(a) "Legal custody" means the right to determine the child's upbringing, including education, health care, and religious training.
(b) "Joint legal custody" means that both parents have equal rights and responsibilities, including the right to participate in major decisions determining the child's upbringing, including education, health care, and religious training.
(c) "Physical custody and residence" means the routine daily care and control and the residence of the child.
(d) "Joint physical custody" means that the routine daily care and control and the residence of the child is structured between the parties.
(e) Wherever used in this chapter, the term "Custodial parent" or "custodian" means the person who has
the physical custody of the child at any particular time.
(f) "Custody determination" means a court decision and court orders and instructions providing for the custody of a child, including parenting time, but does not include a decision relating to child support or any other monetary obligation of any person.
(g) "Custody proceeding" includes proceedings in which a custody determination is one of several issues, such as an action for dissolution, divorce, or separation, and includes proceedings involving children who are in need of protection or services, domestic abuse, and paternity.
Sec. 9. Minnesota Statutes 2000, section 518.155, is amended to read:
518.155 [CUSTODY DETERMINATIONS AND PARENTING TIME JURISDICTION.]
Notwithstanding any law to the contrary, a court in which a proceeding for dissolution, legal separation, or child
custody has been commenced shall must not issue, revise, modify or amend any order, pursuant to
sections section 518.131, 518.165, 518.168, 518.17, 518.175 or 518.18, which that
affects the custody of a minor child or the parenting time of a noncustodial parent unless the court has
jurisdiction over the matter pursuant to the provisions of chapter 518D.
Sec. 10. Minnesota Statutes 2000, section 518.156, is amended to read:
518.156 [COMMENCEMENT OF CUSTODY PROCEEDING.]
Subdivision 1. [PROCEDURE.] In a court of this state which that has jurisdiction to decide child
custody matters, a child custody proceeding is commenced:
(a) by a parent
(1) by filing a petition for dissolution or legal separation; or
(2) where if a decree of dissolution or legal separation has been entered or where none is sought,
or when if paternity has been recognized under section 257.75, by filing a petition or motion
seeking custody or parenting time with the child in the county where the child is permanently resident or where the
child is found or where an earlier order for custody of the child has been entered; or
(b) by a person other than a parent, where if a decree of dissolution or legal separation has been
entered or where if none is sought by filing a petition or motion seeking custody or visitation of the
child in the county where the child is permanently resident or where the child is found or where an earlier order for
custody of the child has been entered. A person seeking visitation pursuant to this paragraph must qualify under one
of the provisions of section 257.022.
Subd. 2. [REQUIRED NOTICE.] Written notice of a child custody or parenting time or visitation proceeding
shall must be given to the child's parent, guardian, and custodian, who may appear and be heard
and may file a responsive pleading. The court may, upon a showing of good cause, permit the intervention of other
interested parties.
Sec. 11. Minnesota Statutes 2000, section 518.157, subdivision 1, is amended to read:
Subdivision 1. [IMPLEMENTATION; ADMINISTRATION.] By January 1, 1998, The chief judge of
each judicial district or a designee shall must implement one or more parent education programs
within the judicial district for the purpose of educating parents about the impact that divorce, the restructuring of
families, and judicial proceedings have upon children and families; methods for preventing parenting time conflicts;
and dispute resolution options. The chief judge of each judicial district or a designee may require that children
attend a separate education program designed to deal with the impact of divorce upon children as part of the parent
education program. Each parent education program must enable persons to have timely and reasonable access to
education sessions.
Sec. 12. Minnesota Statutes 2000, section 518.157, subdivision 2, is amended to read:
Subd. 2. [MINIMUM STANDARDS; PLAN.] The Minnesota supreme court should promulgate minimum
standards for the implementation and administration of a parent education program. The chief judge of each judicial
district or a designee shall must submit a plan to the Minnesota conference of chief judges for their
approval that is designed to implement and administer a parent education program in the judicial district. The plan
must be consistent with the minimum standards promulgated by the Minnesota supreme court.
Sec. 13. Minnesota Statutes 2000, section 518.157, subdivision 3, is amended to read:
Subd. 3. [ATTENDANCE.] In a proceeding under this chapter or sections 257.51 to 257.75 where custody or
parenting time is contested, the parents of a minor child shall must attend an orientation and
education program that meets the minimum standards promulgated by the Minnesota supreme court. In all other
proceedings involving custody, support, or parenting time the court may order the parents of a minor child to attend
a parent education program. The program shall must provide the court with names of persons who
fail to attend the parent education program as ordered by the court. Persons who are separated or contemplating
involvement in a dissolution, paternity, custody, or parenting time proceeding may attend a parent education program
without a court order. Participation in a parent education program must occur as early as possible. Parent education
programs must offer an opportunity to participate at all phases of a pending or postdecree proceeding. Upon request
of a party and a showing of good cause, the court may excuse the party from attending the program. If past or
present domestic abuse, as defined in chapter 518B, is alleged, the court shall must not require the
parties to attend the same parent education sessions and shall must enter an order setting forth the
manner in which the parties may safely participate in the program.
Sec. 14. Minnesota Statutes 2000, section 518.157, subdivision 5, is amended to read:
Subd. 5. [CONFIDENTIALITY.] Unless all parties agree in writing, statements made by a party during
participation in a parent education program are inadmissible as evidence for any purpose, including impeachment.
No record may be made regarding a party's participation in a parent education program, except a record of
attendance at and completion of the program as required under this section. Instructors shall must
not disclose information regarding an individual participant obtained as a result of participation in a parent education
program. Parent education instructors may not be subpoenaed or called as witnesses in court proceedings.
Sec. 15. Minnesota Statutes 2000, section 518.157, subdivision 6, is amended to read:
Subd. 6. [FEE.] Except as provided in this subdivision, each person who attends a parent education program
shall must pay a fee to defray the cost of the program. A party who qualifies for waiver of filing
fees under section 563.01 is exempt from paying the parent education program fee and the court shall
must waive the fee or direct its payment under section 563.01. Program providers shall implement a sliding
fee scale.
Sec. 16. Minnesota Statutes 2000, section 518.158, subdivision 2, is amended to read:
Subd. 2. [EMERGENCY CUSTODY HEARING.] If the parent seeks to remove the child from the home of the
relative or if the relative seeks to remove the child from the home of the parent and the applicable factors in
subdivision 1 exist, the relative may apply for an ex parte temporary order for custody of the child. The application
must include an affidavit made under oath that states with particularity the specific facts and circumstances on which
the application is based. The court shall must grant temporary custody if it finds, based on the
application, that the applicable factors in subdivision 1 exist. If it finds that the factors in subdivision 1 do not exist,
the court shall must order that the child be returned to or remain with the parent. An ex parte
temporary custody order under this subdivision is effective for a fixed period not to exceed 14 days. A temporary
custody hearing under this chapter must be set for not later than seven days after issuance of the ex parte temporary
custody order, except that if the ex parte temporary custody order is based on the grounds under subdivision 1,
paragraph (b), clause (2), the temporary custody hearing must be set for not later than 72 hours, excluding Saturdays,
Sundays, and holidays, after issuance of the order. The parent must be promptly served with a copy of the ex parte
order and the petition and notice of the date for the hearing.
Sec. 17. Minnesota Statutes 2000, section 518.158, subdivision 4, is amended to read:
Subd. 4. [RETURN TO PARENT.] If the court orders permanent custody to a relative under this section, the court
shall must set conditions the parent must meet in order to obtain custody. The court may notify the
parent that the parent may request assistance from the local social service agency in order to meet the conditions set
by the court.
Sec. 18. Minnesota Statutes 2000, section 518.165, is amended to read:
518.165 [GUARDIANS FOR MINOR CHILDREN.]
Subdivision 1. [PERMISSIVE APPOINTMENT OF GUARDIAN AD LITEM.] In all proceedings for child
custody or for dissolution or legal separation where custody or parenting time with a minor child is in issue, the court
may appoint a guardian ad litem from a panel established by the court to represent the interests of the child. The
guardian ad litem shall must advise the court with respect to custody, support, and parenting time.
Subd. 2. [REQUIRED APPOINTMENT OF GUARDIAN AD LITEM.] In all proceedings for child custody or
for marriage dissolution or legal separation in which custody or parenting time with a minor child is an issue, if the
court has reason to believe that the minor child is a victim of domestic child abuse or neglect, as those terms are
defined in sections 260C.007 and 626.556, respectively, the court shall must appoint a guardian
ad litem. The guardian ad litem shall must represent the interests of the child and advise the court
with respect to custody, support, and parenting time. If the child is represented by a guardian ad litem in any other
pending proceeding, the court may appoint that guardian to represent the child in the custody or parenting time
proceeding. No guardian ad litem need be appointed if the alleged domestic child abuse or neglect is before the court
on a juvenile dependency and neglect petition. Nothing in this subdivision requires the court to appoint a guardian
ad litem in any proceeding for child custody, marriage dissolution, or legal separation in which an allegation of
domestic child abuse or neglect has not been made.
Subd. 2a. [RESPONSIBILITIES OF GUARDIAN AD LITEM.] A guardian ad litem shall must
carry out the following responsibilities:
(1) conduct an independent investigation to determine the facts relevant to the situation of the child and the family, which must include, unless specifically excluded by the court, reviewing relevant documents; meeting with and observing the child in the home setting and considering the child's wishes, as appropriate; and interviewing parents, caregivers, and others with knowledge relevant to the case;
(2) advocate for the child's best interests by participating in appropriate aspects of the case and advocating for appropriate community services when necessary;
(3) maintain the confidentiality of information related to a case, with the exception of sharing information as permitted by law to promote cooperative solutions that are in the best interests of the child;
(4) monitor the child's best interests throughout the judicial proceeding; and
(5) present written reports on the child's best interests that include conclusions and recommendations and the facts upon which they are based.
Subd. 3. [FEES.] (a) A guardian ad litem appointed under either subdivision 1 or 2 may be appointed either as
a volunteer or on a fee basis. If a guardian ad litem is appointed on a fee basis, the court shall must
enter an order for costs, fees, and disbursements in favor of the child's guardian ad litem. The order may be made
against either or both parties, except that any part of the costs, fees, or disbursements which the court finds the
parties are incapable of paying shall must be borne by the state courts. The costs of court-appointed
counsel to the guardian ad litem shall must be paid by the county in which the proceeding is being
held if a party is incapable of paying for them. Until the recommendations of the task force created in Laws 1999,
chapter 216, article 7, section 42, are implemented, the costs of court-appointed counsel to a guardian ad litem in
the eighth judicial district shall must be paid by the state courts if a party is incapable of paying for
them. In no event may the court order that costs, fees, or disbursements be paid by a party receiving public assistance
or legal assistance or by a party whose annual income falls below the poverty line as established under United States
Code, title 42, section 9902(2).
(b) In each fiscal year, the state treasurer shall must deposit guardian ad litem reimbursements
in the general fund and credit them to a separate account with the trial courts. The balance of this account is
appropriated to the trial courts and does not cancel but is available until expended. Expenditures by the state court
administrator's office from this account must be based on the amount of the guardian ad litem reimbursements
received by the state from the courts in each judicial district.
Sec. 19. Minnesota Statutes 2000, section 518.166, is amended to read:
518.166 [INTERVIEWS.]
The court may interview the child in chambers to ascertain the child's reasonable preference as to
custodian with which parent the child would reside, if the court deems the child to be of sufficient
age to express preference. The court shall must permit counsel to be present at the interview and
shall must permit counsel to propound reasonable questions to the child either directly or through
the court. The court shall must cause a record of the interview to be made and to be made part of
the record in the case unless waived by the parties.
In contested custody proceedings, and in other custody proceedings if a parent or the child's custodian requests,
the court may seek the recommendations of professional personnel whether or not they are employed on a regular
basis by the court. The recommendations given shall must be in writing and shall
must be made available by the court to counsel upon request. Counsel may call for cross-examination of
professional personnel consulted by the court.
Sec. 20. Minnesota Statutes 2000, section 518.167, subdivision 3, is amended to read:
Subd. 3. [AVAILABILITY TO COUNSEL.] The court shall must mail the investigator's report
to counsel and to any party not represented by counsel at least ten days before the hearing. The investigator
shall must maintain and, upon request, make available to counsel and to a party not represented
by counsel the investigator's file of underlying data and reports, complete texts of diagnostic reports made to the
investigator pursuant to the provisions of subdivision 2, and the names and addresses of all persons whom the
investigator has consulted. The investigator and any person the investigator has consulted is subject to other
pretrial discovery in accordance with the requirements of the Minnesota Rules of Civil Procedure. Mediation
proceedings are not subject to discovery without written consent of both parties. A party to the proceeding may call
the investigator and any person whom the investigator has consulted for cross-examination at the hearing. A party
may not waive the right of cross-examination before the hearing.
Sec. 21. Minnesota Statutes 2000, section 518.167, subdivision 4, is amended to read:
Subd. 4. [USE AT DISCOVERY; HEARING.] The investigator and any person the
investigator has consulted is subject to other pretrial discovery in accordance with the requirements of the Minnesota
Rules of Civil Procedure. Mediation proceedings are not subject to discovery without written consent of both parties.
A party to the proceeding may call the investigator and any person whom the investigator has consulted for
cross-examination at the hearing. A party may not waive the right of cross-examination before the hearing.
The investigator's report may be received in evidence at the hearing.
Sec. 22. Minnesota Statutes 2000, section 518.167, subdivision 5, is amended to read:
Subd. 5. [COSTS.] The court shall must order all or part of the cost of the investigation and
report to be paid by either or both parties, based on their ability to pay. Any part of the cost that the court finds the
parties are incapable of paying must be borne by the county welfare local social services agency or
department of court services that performs the investigation. The court may not order costs under this subdivision
to be paid by a party receiving public assistance or legal assistance from a qualified legal services program or by a
party whose annual income falls below the poverty line under United States Code, title 42, section 9902(2).
Sec. 23. Minnesota Statutes 2000, section 518.168, is amended to read:
518.168 [HEARINGS.]
(a) Custody proceedings shall must receive priority in being set for hearing.
(b) The court may tax as costs the payment of necessary travel and other expenses incurred by a person whose presence at the hearing the court deems necessary to determine the best interests of the child.
(c) The court without a jury shall must determine questions of law and fact. If it finds that a
public hearing may be detrimental to the child's best interests, the court may exclude the public from a custody
hearing, but may admit any person who has a direct interest in the particular case.
(d) If the court finds it necessary for the protection of the child's welfare that the record of an interview, report,
investigation, or testimony in a custody proceeding not be kept secret disclosed, the court
may make an appropriate order sealing the record.
Sec. 24. Minnesota Statutes 2000, section 518.1705, subdivision 6, is amended to read:
Subd. 6. [RESTRICTIONS ON PREPARATION AND CONTENT OF PARENTING PLAN.] (a)
Dispute resolution processes other than the judicial process may not be required in the preparation of a parenting
plan if a parent is alleged to have committed domestic abuse toward a parent or child who is a party to, or subject
of, the matter before the court. In these cases, the court shall must consider the appointment of a
guardian ad litem and a parenting plan evaluator.
(b) The court may not require a parenting plan that provides for joint legal custody or use of dispute resolution
processes, other than the judicial process, if the court finds that section 518.179 applies, or the court
finds that either parent has engaged in the following toward a parent or child who is a party to, or subject of, the
matter before the court:
(1) acts of domestic abuse, including physical harm, bodily injury, and infliction of fear of physical harm, assault, terroristic threats, or criminal sexual conduct;
(2) physical, sexual, or a pattern of emotional abuse of a child; or
(3) willful abandonment that continues for an extended period of time or substantial refusal to perform parenting functions.
Sec. 25. Minnesota Statutes 2000, section 518.175, subdivision 1, is amended to read:
Subdivision 1. [GENERAL.] (a) In all proceedings for dissolution or legal separation, subsequent to the
commencement of the proceeding and continuing thereafter during the minority of the child, the court shall
must, upon the request of either parent, grant such parenting time on behalf of the child and
noncustodial the parent as that will enable the child and the noncustodial
parent to maintain a child to parent relationship that will be in the best interests of the child. If the court finds, after
a hearing, that parenting time is likely to endanger the child's physical or emotional health or impair the child's
emotional development, the court shall must restrict parenting time with the noncustodial
parent as to time, place, duration, or supervision and may deny parenting time entirely, as the circumstances warrant.
The court shall must consider the age of the child and the child's relationship with the
noncustodial parent prior to before the commencement of the proceeding. A parent's failure
to pay support because of the parent's inability to do so shall is not be sufficient cause for
denial of parenting time.
(b) The court may provide that a law enforcement officer or other appropriate person will accompany a party seeking to enforce or comply with parenting time.
(c) Upon request of either party, to the extent practicable an order for parenting time must include a specific schedule for parenting time, including the frequency and duration of visitation and visitation during holidays and vacations, unless parenting time is restricted, denied, or reserved.
(d) The court administrator shall must provide a form for a pro se motion regarding parenting
time disputes, which includes must include provisions for indicating the relief requested, an
affidavit in which the party may state the facts of the dispute, and a brief description of the parenting time expeditor
process under section 518.1751. The form may not include a request for a change of custody. The court
shall must provide instructions on serving and filing the motion.
Sec. 26. Minnesota Statutes 2000, section 518.175, subdivision 1a, is amended to read:
Subd. 1a. [DOMESTIC ABUSE; SUPERVISED PARENTING TIME.] (a) If a custodial parent requests
supervised parenting time under subdivision 1 or 5 and an order for protection under chapter 518B or a similar law
of another state is in effect against the noncustodial other parent to protect the custodial
parent with whom the child resides or the child, the judge or judicial officer must consider the order for
protection in making a decision regarding parenting time.
(b) The state court administrator, in consultation with representatives of custodial and noncustodial
parents and other interested persons, shall must develop standards to be met by persons who are
responsible for supervising parenting time. Either parent may challenge the appropriateness of an individual chosen
by the court to supervise parenting time.
Sec. 27. Minnesota Statutes 2000, section 518.175, subdivision 2, is amended to read:
Subd. 2. [RIGHTS OF CHILDREN AND NONCUSTODIAL PARENT.] Upon the request of either
parent, the court may inform any child of the parties, if eight years of age or older, or otherwise of an age of suitable
comprehension, of the rights of the child and the noncustodial each parent under the order or decree
or any substantial amendment thereof of it. The custodial parent shall with
whom the child resides must present the child for parenting time with the noncustodial other
parent, at such the times as the court directs.
Sec. 28. Minnesota Statutes 2000, section 518.175, subdivision 3, is amended to read:
Subd. 3. [MOVE TO ANOTHER STATE.] The custodial parent shall with whom the child
resides must not move the residence of the child to another state except upon order of the court or with the
consent of the noncustodial other parent, when if the noncustodial
other parent has been given parenting time by the decree. If the purpose of the move is to interfere with
parenting time given to the noncustodial other parent by the decree, the court shall
must not permit the child's residence to be moved to another state.
Sec. 29. Minnesota Statutes 2000, section 518.175, subdivision 5, is amended to read:
Subd. 5. [MODIFICATION OF PARENTING PLAN OR ORDER FOR PARENTING TIME.] If modification
would serve the best interests of the child, the court shall must modify the decision-making
provisions of a parenting plan or an order granting or denying parenting time, if the modification would not change
the child's primary residence. Except as provided in section 631.52, the court may not restrict parenting time unless
it finds that:
(1) parenting time is likely to endanger the child's physical or emotional health or impair the child's emotional development; or
(2) the noncustodial parent has chronically and unreasonably failed to comply with court-ordered
parenting time.
If the custodial a parent makes specific allegations that parenting time places the
custodial parent or child in danger of harm, the court shall must hold a hearing at the
earliest possible time to determine the need to modify the order granting parenting time. Consistent with subdivision
1a, the court may require a third party, including the local social services agency, to supervise the parenting time
or may restrict a parent's parenting time if necessary to protect the custodial other parent or child
from harm. In addition, if there is an existing order for protection governing the parties, the court shall
must consider the use of an independent, neutral exchange location for parenting time.
Sec. 30. Minnesota Statutes 2000, section 518.175, subdivision 6, is amended to read:
Subd. 6. [REMEDIES.] (a) The court may provide for one or more of the following remedies for denial of or interference with court-ordered parenting time as provided under this subdivision. All parenting time orders must include notice of the provisions of this subdivision.
(b) If the court finds that a person parent has been deprived of court-ordered parenting time, the
court shall must order the custodial parent who has caused the deprivation to
permit additional parenting time to compensate for the allow compensatory parenting time of
which the person was deprived to the other parent or the court shall must make
specific findings as to why a request for compensatory parenting time is denied. If compensatory parenting time is
awarded, additional parenting time must be:
(1) at least of the same type and duration as the deprived parenting time and, at the discretion of the court, may be in excess of or of a different type than the deprived parenting time;
(2) taken within one year after the deprived parenting time; and
(3) at a time acceptable to the person parent deprived of parenting time.
(c) If the court finds that a party has wrongfully failed to comply with a parenting time order or a binding agreement or decision under section 518.1751, the court may:
(1) impose a civil penalty of up to $500 on the party;
(2) require the party to post a bond with the court for a specified period of time to secure the party's compliance;
(3) award reasonable attorney's fees and costs;
(4) require the party who violated the parenting time order or binding agreement or decision of the parenting time expeditor to reimburse the other party for costs incurred as a result of the violation of the order or agreement or decision; or
(5) award any other remedy that the court finds to be in the best interests of the children involved.
A civil penalty imposed under this paragraph must be deposited in the county general fund and must be used to fund the costs of a parenting time expeditor program in a county with this program. In other counties, the civil penalty must be deposited in the state general fund.
(d) If the court finds that a party has been denied parenting time and has incurred expenses in connection with the denied parenting time, the court may require the party who denied parenting time to post a bond in favor of the other party in the amount of prepaid expenses associated with upcoming planned parenting time.
(e) Proof of an unwarranted denial of or interference with duly established parenting time may constitute contempt of court and may be sufficient cause for reversal of custody.
Sec. 31. Minnesota Statutes 2000, section 518.175, subdivision 7, is amended to read:
Subd. 7. [GRANDPARENT VISITATION.] In all proceedings for dissolution or legal separation, after the
commencement of the proceeding or at any time after completion of the proceedings, and continuing during the
child's minority of the child, the court may make an order granting visitation rights to grandparents
under and other individuals as provided by section 257.022, subdivision 2.
Sec. 32. Minnesota Statutes 2000, section 518.175, subdivision 8, is amended to read:
Subd. 8. [ADDITIONAL PARENTING TIME FOR CARE OF CHILD BY NONCUSTODIAL
PARENT.] The court may allow additional parenting time to the noncustodial parent to provide child care while
the custodial parent is working if this arrangement is reasonable and in the best interests of the child, as defined in
section 518.17, subdivision 1. In addition, the court shall must consider:
(1) the ability of the parents to cooperate;
(2) methods for resolving disputes regarding the care of the child, and the parents' willingness to use those methods; and
(3) whether domestic abuse, as defined in section 518B.01, has occurred between the parties.
Sec. 33. Minnesota Statutes 2000, section 518.1751, subdivision 1b, is amended to read:
Subd. 1b. [PURPOSE; DEFINITIONS.] (a) The purpose of a parenting time expeditor is to resolve parenting time disputes by enforcing, interpreting, clarifying, and addressing circumstances not specifically addressed by an existing parenting time order and, if appropriate, to make a determination as to whether the existing parenting time order has been violated. A parenting time expeditor may be appointed to resolve a one-time parenting time dispute or to provide ongoing parenting time dispute resolution services.
(b) For purposes of this section, "parenting time dispute" means a disagreement among parties about parenting
time with a child, including a dispute about an anticipated denial of future scheduled parenting time. "Parenting
time dispute" includes a claim by a custodial parent that a noncustodial the other parent
is not spending time with a child as well as a claim by a noncustodial parent that a custodial the
other parent is denying or interfering with parenting time.
(c) A "parenting time expeditor" is a neutral person authorized to use a mediation-arbitration process to resolve
parenting time disputes. A parenting time expeditor shall must attempt to resolve a parenting time
dispute by facilitating negotiations between the parties to promote settlement and,. If it becomes
apparent that the dispute cannot be resolved by an agreement of the parties, the parenting time expeditor
shall must make a decision resolving the dispute.
Sec. 34. Minnesota Statutes 2000, section 518.1751, subdivision 2, is amended to read:
Subd. 2. [APPOINTMENT.] (a) The parties may stipulate to the appointment of a parenting time expeditor or
a team of two expeditors without appearing in court by submitting to the court a written agreement identifying the
names of the individuals to be appointed by the court; the nature of the dispute; the responsibilities of the parenting
time expeditor, including whether the expeditor is appointed to resolve a specific issue or on an ongoing basis; the
term of the appointment; and the apportionment of fees and costs. The court shall must review the
agreement of the parties.
(b) If the parties cannot agree on a parenting time expeditor, the court shall must provide to
the parties them with a copy of the court administrator's roster of parenting time expeditors and require
the parties to exchange the names of three potential parenting time expeditors by a specific date. If after exchanging
names the parties are unable to agree upon a parenting time expeditor, the court shall must select
the parenting time expeditor and, in its discretion, may appoint one expeditor or a team of two
expeditors. In the selection process the court must give consideration to the financial circumstances of the
parties and the fees of those being considered as parenting time expeditors. Preference must be given to
persons who agree to volunteer their services or who will charge a variable fee for services based on the ability of
the parties to pay for them.
(c) An order appointing a parenting time expeditor must identify the name of the individual to be appointed, the
nature of the dispute, the responsibilities of the expeditor including whether the expeditor is appointed to resolve a
specific issue or on an ongoing basis, the term of the appointment, the apportionment of fees, and notice that if the
parties are unable to reach an agreement with the expeditor's assistance of the expeditor, the
expeditor is authorized to make a decision resolving the dispute which is binding upon the parties unless modified
or vacated by the court.
Sec. 35. Minnesota Statutes 2000, section 518.1751, subdivision 2a, is amended to read:
Subd. 2a. [FEES.] Prior to Before appointing the parenting time expeditor, the court
shall must give the parties notice that the expeditor's fees of the expeditor will be
apportioned among the parties. In its order appointing the expeditor, the court shall must apportion
the expeditor's fees of the expeditor among the parties, with each party bearing the portion of fees
that the court determines is just and equitable under the circumstances. If a party files a pro se motion regarding
a parenting time dispute and there is not a an existing court order that provides for
apportionment of apportioning the fees of an expeditor, the court administrator may require the party
requesting the appointment of an expeditor to pay the expeditor's fees of the expeditor in
advance. Neither party may be required to submit a dispute to a visitation an expeditor if the party
cannot afford to pay for the fees of an expeditor and an affordable expeditor is not available, unless
the other party agrees to pay the fees. After fees are incurred, a party may by motion request that the fees be
reapportioned on equitable grounds. The court may consider the resources of the parties, the nature of the dispute,
and whether a party acted in bad faith. The court may consider information from the expeditor in determining bad
faith.
Sec. 36. Minnesota Statutes 2000, section 518.1751, subdivision 2b, is amended to read:
Subd. 2b. [ROSTER OF PARENTING TIME EXPEDITORS.] Each The court administrator
shall must maintain and make available to judicial officers and the public and judicial
officers a roster of individuals available to serve as parenting time expeditors, including. The roster
must include each individual's name, address, telephone number, and fee charged, if any. A court administrator
shall must not place on the roster the name of an individual who has not completed the training
required in subdivision 2c. If the use of a parenting time an expeditor is initiated by stipulation
of the parties, the parties may agree upon a person to serve as an expeditor even if that person has not completed the
training described in subdivision 2c. The court may appoint a person to serve as an expeditor even if
the a person who is not on the court administrator's roster, but may not appoint a person who
has not completed the training described in subdivision 2c, unless so stipulated by the parties. To maintain one's
listing on a court administrator's roster of parenting time expeditors, an individual shall must
annually submit to the court administrator proof of completion of continuing education requirements.
Sec. 37. Minnesota Statutes 2000, section 518.1751, subdivision 2c, is amended to read:
Subd. 2c. [TRAINING AND CONTINUING EDUCATION REQUIREMENTS.] To qualify for listing on a court
administrator's roster of parenting time expeditors, an individual shall must complete a minimum
of 40 hours of family mediation training that has been certified by the Minnesota supreme court, which.
The training must include certified training in domestic abuse issues as required under Rule 114 of the
Minnesota General Rules of Practice for the District Courts. To maintain one's listing remain listed
on a court administrator's roster of parenting time expeditors, an individual shall must annually
attend three hours of continuing education about alternative dispute resolution subjects.
Sec. 38. Minnesota Statutes 2000, section 518.1751, subdivision 3, is amended to read:
Subd. 3. [AGREEMENT OR DECISION.] (a) Within five days of notice of the appointment, or within five days
of notice of a subsequent parenting time dispute between the same parties, the parenting time expeditor shall
must meet with the parties together or separately and shall make a diligent effort to facilitate an
agreement to resolve the dispute. If a parenting time dispute requires immediate resolution, the parenting
time expeditor may confer with the parties through a telephone conference or similar means. An expeditor may
make a decision without conferring with a party if the expeditor made a good faith effort to confer with the party,
but the party chose not to participate in resolution of the dispute.
(b) If the parties do not reach an agreement, the expeditor shall must make a decision resolving
the dispute as soon as possible, but not later than five days after receiving all information necessary to make
a decision and after the final meeting or conference with the parties. The expeditor is authorized to award
compensatory parenting time under section 518.175, subdivision 6, and may recommend to the court that the
noncomplying party pay attorney's fees, court costs, and other costs under section 518.175, subdivision 6, paragraph
(d), if the parenting time order has been violated. The expeditor shall not lose retains the authority
to make a decision if circumstances beyond the expeditor's control make it impracticable to meet the five-day
timelines.
(c) Unless the parties mutually agree, the parenting time expeditor shall must not make a
decision that is inconsistent with an existing parenting time order, but may make decisions interpreting or clarifying
a parenting time order, including the development of a specific schedule when the existing court order grants
"reasonable parenting time."
(d) The expeditor shall must put an agreement or decision in writing and provide a copy to the
parties. The expeditor may include or omit reasons for the agreement or decision. An agreement of the parties or
a decision of the expeditor is binding on the parties unless vacated or modified by the court. If a party does not
comply with an agreement of the parties or a decision of the expeditor, any party may bring a motion with the court
and shall must attach a copy of the parties' written agreement or decision of the expeditor. The
court may enforce, modify, or vacate the agreement of the parties or the decision of the expeditor.
Sec. 39. Minnesota Statutes 2000, section 518.176, is amended to read:
518.176 [JUDICIAL SUPERVISION.]
Subdivision 1. Except as otherwise agreed by the parties in writing at the time of the custody order,
(a) The custodian parent with whom the child resides may determine the child's
upbringing, including education, health care, and religious training, unless:
(1) otherwise agreed by the parties in writing at the time of the custody order; or
(2) upon motion by the other parent, the court after hearing, finds, upon motion by the
noncustodial parent, that in the absence of a specific limitation of the custodian's authority of the
parent with whom the child resides, the child's physical or emotional health is likely to be endangered or the
child's emotional development impaired.
Subd. 2. (b) If both parents or all contestants agree to the order, or if the court finds that in the
absence of the order the child's physical or emotional health is likely to be endangered or the child's emotional
development impaired, the court may order the local social services agency or the department of court services to
exercise continuing supervision over the case under guidelines established by the court to assure that the custodial
or parenting time terms of the decree are carried out.
Sec. 40. Minnesota Statutes 2000, section 518.177, is amended to read:
518.177 [NOTIFICATION REGARDING DEPRIVATION OF PARENTAL RIGHTS LAW.]
Every A court order and judgment and decree concerning custody of or parenting time or
visitation with a minor child shall must contain the notice set out in section 518.68, subdivision
2.
Sec. 41. Minnesota Statutes 2000, section 518.178, is amended to read:
518.178 [PARENTING TIME AND SUPPORT REVIEW HEARING.]
Upon motion of either party, the court shall must conduct a hearing to review compliance with
the parenting time and child support provisions set forth in a decree of dissolution or legal separation or an
order that establishes child custody, parenting time, and support rights and obligations of parents. The state court
administrator shall must prepare, and each court administrator shall must make
available, simplified pro se forms for reviewing parenting time and child support disputes. The court may impose
any parenting time enforcement remedy available under sections 518.175 and 518.1751, and any support
enforcement remedy available under section 518.551.
Sec. 42. Minnesota Statutes 2000, section 518.179, subdivision 1, is amended to read:
Subdivision 1. [SEEKING CUSTODY OR PARENTING TIME.] Notwithstanding any contrary provision in
section 518.17 or 518.175, if a person seeking child custody or parenting time who has been
convicted of a crime described in subdivision 2, the person seeking custody or parenting time has the burden
to prove that custody or parenting time by that person is in the best interests of the child if:
(1) the conviction occurred within the preceding five years;
(2) the person is currently incarcerated, on probation, or under supervised release for the offense; or
(3) the victim of the crime was a family or household member as defined in section 518B.01, subdivision 2.
If this section applies, the court may not grant custody or parenting time to the person unless it finds that the custody or parenting time is in the best interests of the child. If the victim of the crime was a family or household member, the standard of proof is clear and convincing evidence. A guardian ad litem must be appointed in any case where this section applies.
Sec. 43. Minnesota Statutes 2000, section 518.18, is amended to read:
518.18 [MODIFICATION OF ORDER.]
(a) Unless agreed to in writing by the parties, no motion to modify a custody order or parenting plan may be made earlier than one year after the date of the entry of a decree of dissolution or legal separation containing a provision dealing with custody, except in accordance with paragraph (c).
(b) If a motion for modification has been heard, whether or not it was granted, unless agreed to in writing by the parties no subsequent motion may be filed within two years after disposition of the prior motion on its merits, except in accordance with paragraph (c).
(c) The time limitations prescribed in paragraphs (a) and (b) shall do not prohibit a motion to
modify a custody order or parenting plan if the court finds that there is persistent and willful denial or interference
with parenting time, or has reason to believe that the child's present environment may endanger the child's physical
or emotional health or impair the child's emotional development.
(d) If the A court that has jurisdiction to determine child custody matters, the court
shall must not modify a prior custody order or a parenting plan provision which that
specifies the child's primary residence unless it finds, upon the basis of facts, including unwarranted denial of,
or interference with, a duly established parenting time schedule, that have arisen since the prior order or that were
unknown to the court at the time of the prior order, that a change has occurred in the circumstances of the child
or the parties and that the modification is necessary to serve the best interests of the child. The court must make
its finding upon the basis of facts, including unwarranted denial of, or interference with, a duly established parenting
time schedule, that have arisen since the prior order or that were unknown to the court at the time of the prior
order. In applying these standards the court shall must retain the custody arrangement or the
parenting plan provision specifying the child's primary residence that was established by the prior order unless:
(i) the court finds that a change in the custody arrangement or primary residence is in the best interests of the child and the parties previously agreed, in a writing approved by a court, to apply the best interests standard in section 518.17 or 257.025, as applicable; and, with respect to agreements approved by a court on or after April 28, 2000, both parties were represented by counsel when the agreement was approved or the court found the parties were fully informed, the agreement was voluntary, and the parties were aware of its implications;
(ii) both parties agree to the modification;
(iii) the child has been integrated into the family of the petitioner with the consent of the other party; or
(iv) the child's present environment endangers the child's physical or emotional health or impairs the child's emotional development and the harm likely to be caused by a change of environment is outweighed by the advantage of a change to the child.
In addition, (e) A court may modify a custody order or parenting plan under section 631.52.
(e) (f) In deciding whether to modify a prior joint custody order, the court shall
must apply the standards set forth in paragraph (d) unless:
(1) the parties agree in writing to the application of a different standard,; or
(2) the party seeking the modification is asking the court for permission to move the residence of the child to another state.
(f) If a custodial parent has been granted sole physical custody of a minor and the child subsequently lives with
the noncustodial parent, and temporary sole physical custody has been approved by the court or by a court-appointed
referee, (g) The court may suspend the noncustodial parent's obligor's child support
obligation pending the a final custody determination if:
(1) the obligee has been granted sole physical custody of a child;
(2) the child subsequently lives with the obligor; and
(3) a temporary sole custody order has been approved by the court or a court-approved referee.
The court's A court order denying the suspension of child support under this paragraph
must include a written explanation of the reasons why continuation of the child support obligation would be in the
best interests of the child.
(h) A party seeking modification of a custody order must submit with moving papers an affidavit setting forth facts supporting the requested modification. The party must give notice and a copy of the affidavit to other parties to the proceeding, who may file opposing affidavits.
Sec. 44. Minnesota Statutes 2000, section 518.612, is amended to read:
518.612 [INDEPENDENCE OF PROVISIONS OF DECREE OR TEMPORARY ORDER.]
Failure by a party to make support payments is not a defense to: interference with parenting time; or without
the permission of the court or the noncustodial parent removing a child from this state. Nor is interference with
parenting time or taking a child from this state without permission of the court or the noncustodial parent a defense
to nonpayment of support. If a party fails to make support payments, or interferes with parenting time, or without
permission of the court or the noncustodial parent removes a child from this state, the other party may petition the
court for an appropriate order.
(a) An obligor may not assert as a defense to failure to pay child support that the obligee interfered with parenting time or removed the child from the state without permission of the obligor or the court.
(b) An obligee may not assert as a defense to interference with parenting time or removing the child from the state without permission of the obligor or the court, that the obligor failed to pay child support.
(c) A party may petition the court for an appropriate order if the other party:
(1) fails to make support payments;
(2) interferes with parenting time; or
(3) removes a child from this state without permission of the court or the other parent.
Sec. 45. Minnesota Statutes 2000, section 518.619, is amended to read:
518.619 [CUSTODY OR VISITATION PARENTING TIME; MEDIATION SERVICES.]
Subdivision 1. [MEDIATION PROCEEDING.] Except as provided in subdivision 2, if it appears on the face of
the petition or other application for an order or modification of an order for the child custody of
a child that custody or parenting time is contested, or that any issue pertinent to a custody or parenting time
determination, including parenting time rights, is unresolved, the matter may be set for mediation of the contested
issue prior to before, concurrent with, or subsequent to the after setting of
the matter for hearing. The purpose of the mediation proceeding is to reduce acrimony which that
may exist between the parties and to develop an agreement that is supportive of the child's best interests. The
mediator shall must use best efforts to effect a settlement of the custody or parenting time dispute,
but shall have has no coercive authority.
Subd. 2. [EXCEPTION.] If the court determines that there is probable cause that one of the parties, or a child
of a party, has been physically or sexually abused by the other a party, the court shall
must not require or refer the parties to mediation or any other process that requires parties to meet and
confer without counsel, if any, present.
Subd. 3. [MEDIATOR APPOINTMENT.] In order to participate in a custody mediation, a mediator must be appointed by the family court. A mediator must be a member of the professional staff of a family court, probation department, mental health services agency, or a private mediation service. The mediator must be on a list of mediators approved by the court having jurisdiction of the matter, unless the parties stipulate to a mediator not on the list.
Subd. 4. [MEDIATOR QUALIFICATIONS.] A mediator who performs mediation in contested child custody
matters shall must meet the following minimum qualifications:
(a) (1) knowledge of the court system and the procedures used in contested child custody matters;
(b) (2) knowledge of other resources in the community to which the parties to contested child
custody matters can be referred for assistance;
(c) (3) knowledge of child development, clinical issues relating to children, the effects of
marriage dissolution on children, and child custody research; and
(d) (4) a minimum of 40 hours of certified mediation training.
Subd. 5. [RECORDS; PRIVATE DATA.] Mediation proceedings shall must be conducted in
private. All records of a mediation proceeding shall be are private and not available as evidence
in an action for marriage dissolution and related proceedings on any issue in controversy in the dissolution.
Subd. 6. [MEDIATOR RECOMMENDATIONS.] When the parties have not reached agreement as a result of the mediation proceeding, the mediator may recommend to the court that an investigation be conducted under section 518.167, or that other action be taken to assist the parties to resolve the controversy before hearing on the issues. The mediator may not conduct the investigation or evaluation unless: (1) the parties agree in a writing, executed after the termination of mediation, that the mediator may conduct the investigation or evaluation, or (2) there is no other person reasonably available to conduct the investigation or evaluation. The mediator may recommend that mutual restraining orders be issued in appropriate cases, pending determination of the controversy, to protect the well-being of the children involved in the controversy.
Subd. 7. [MEDIATION AGREEMENT.] An agreement reached by the parties as a result of mediation
shall must be discussed by the parties with their attorneys, if any, and. The
approved agreement may then be included in the marital dissolution decree or other stipulation submitted to the
court. An agreement reached by the parties as a result of mediation may not be presented to the court nor made
enforceable unless the parties and their counsel, if any, consent to its presentation to the court, and the court adopts
the agreement.
Subd. 8. [RULES.] Each court shall must adopt rules to implement this section, and
shall must compile and maintain a list of mediators.
Sec. 46. [INSTRUCTION TO REVISOR.]
The revisor of statutes must renumber the sections in Minnesota Statutes 2000 listed in column A as indicated in column B and correct cross-references to those sections throughout Minnesota Statutes and Minnesota Rules.
A B
518.003, subd. 3 517B.01, subd. 2
518.003, subd. 5 517B.01, subd. 3
518.155 517B.02
518.156 517B.13
518.157 517B.06
518.158, subd. 1 517B.22, subd. 2
518.158, subd. 2 517B.22, subd. 3
518.158, subd. 3 517B.22, subd. 4
518.158, subd. 4 517B.22, subd. 5
518.158, subd. 5 517B.22, subd. 1
518.165 517B.08
518.166 517B.14
518.167 517B.15
518.168 517B.16
518.1705 517B.25
518.175, subd. 1 517B.27, subd. 1
518.175, subd. 1a 517B.27, subd. 2
518.175, subd. 2 517B.27, subd. 3
518.175, subd. 3 517B.27, subd. 4
518.175, subd. 5 517B.27, subd. 6
518.175, subd. 6 517B.27, subd. 7
518.175, subd. 7 517B.30
518.175, subd. 8 517B.27, subd. 8
518.1751, subd. 1 517B.28, subd. 1
518.1751, subd. 1a 517B.28, subd. 2
518.1751, subd. 1b 517B.28, subd. 3
518.1751, subd. 2 517B.28, subd. 6
518.1751, subd. 2a 517B.28, subd. 7
518.1751, subd. 2b 517B.28, subd. 4
518.1751, subd. 2c 517B.28, subd. 5
518.1751, subd. 3 517B.28, subd. 8
518.1751, subd. 4 517B.28, subd. 13
518.1751, subd. 4a 517B.28, subd. 9
518.1751, subd. 5 517B.28, subd. 10
518.1751, subd. 5a 517B.28, subd. 11
518.1751, subd. 6 517B.28, subd. 12
518.176 517B.20
518.177 517B.04
518.178 517B.27, subd. 5
518.179 517B.09
518.18 517B.21
518.183 517B.26
518.612 517B.10
518.619 517B.07
Sec. 47. [REPEALER.]
Minnesota Statutes 2000, sections 518.17; and 518.185, are repealed.
ARTICLE 14
CHILD SUPPORT
Section 1. Minnesota Statutes 2000, section 256.9791, is amended to read:
256.9791 [MEDICAL SUPPORT BONUS INCENTIVES.]
Subdivision 1. [BONUS INCENTIVE.] (a) A bonus incentive program is created to increase the identification
and enforcement by county agencies of dependent health insurance coverage for persons who are
receiving medical assistance under section 256B.055 and children and family units for whom the county
agency is providing child support enforcement services.
(b) The bonus shall be awarded to a county child support agency for each person child for whom
coverage is identified and enforced by the child support enforcement program when the obligor is under a
court order to provide dependent health insurance coverage is in effect.
(c) Bonus incentive funds under this section must be reinvested in the county child support enforcement program and a county may not reduce funding of the child support enforcement program by the amount of the bonus earned.
Subd. 2. [DEFINITIONS.] For the purpose of this section, the following definitions apply.
(a) "Case" means a family unit that is receiving medical assistance under section 256B.055 and for whom
the county agency is providing child support enforcement services.
(b) "Commissioner" means the commissioner of the department of human services.
(c) "County agency" means the county child support enforcement agency.
(d) "Coverage" means initial dependent health insurance benefits for a case or individual member
child of a case, or medical assistance under section 256B.055 and MinnesotaCare under section
256L.07.
(e) "Enforce" or "enforcement" means obtaining proof of current or future dependent health insurance
coverage through an overt act by the county agency.
(f) "Enforceable order" means a child support court order containing the statutory language in section
518.171 517C.15 or other language ordering an obligor a parent to provide
dependent health insurance coverage.
(g) "Identify" or "identification" means obtaining proof of dependent health insurance coverage through
an overt act by the county agency.
Subd. 3. [ELIGIBILITY; REPORTING REQUIREMENTS.] (a) In order for a county to be eligible to claim a
bonus incentive payment, the county agency must provide the required information for each public assistance
case no later than June 30 of each year to determine eligibility. The public authority shall use the information to
establish for each county the number of cases in which (1) the court has established an obligation for coverage by
the obligor, and (2) coverage was in effect as of June 30.
(b) A county that fails to provide the required information by June 30 of each fiscal year is not eligible for any bonus payments under this section for that fiscal year.
Subd. 4. [RATE OF BONUS INCENTIVE.] The rate of the bonus incentive shall be determined according to paragraph (a).
(a) When a county agency has identified or enforced coverage, the county shall receive $50 for each additional
person child for whom coverage is identified or enforced.
(b) Bonus payments according to paragraph (a) are limited to one bonus for each covered person
child each time the county agency identifies or enforces previously unidentified health insurance
coverage and apply only to coverage identified or enforced after July 1, 1990.
Subd. 5. [CLAIMS FOR BONUS INCENTIVE.] (a) Beginning July 1, 1990, county agencies shall file a claim
for a medical support bonus payment by reporting to the commissioner the following information for each case where
dependent health insurance coverage is identified or enforced as a result of an overt act of the
county agency:
(1) child support enforcement system case number or county specific case number;
(2) names and dates of birth for each person child covered; and
(3) the effective date of coverage.
(b) The report must be made upon enrollment in coverage but no later than September 30 for coverage identified or established during the preceding fiscal year.
(c) The county agency making the initial contact resulting in the establishment of coverage is the county agency entitled to claim the bonus incentive even if the case is transferred to another county agency prior to the time coverage is established.
(d) Disputed claims must be submitted to the commissioner and the commissioner's decision is final.
Subd. 6. [DISTRIBUTION.] (a) Bonus incentives must be issued to the county agency quarterly, within 45 days after the last day of each quarter for which a bonus incentive is being claimed, and must be paid up to the limit of the appropriation in the order in which claims are received.
(b) Total bonus incentives must be computed by multiplying the number of persons children
included in claims submitted in accordance with this section by the applicable bonus payment as determined in
subdivision 4.
(c) The county agency must repay any bonus erroneously issued.
(d) A county agency must maintain a record of bonus incentives claimed and received for each quarter.
Sec. 2. [517C.01] [TITLE.]
This chapter may be cited as the "Minnesota Child Support Act."
Sec. 3. [517C.02] [DEFINITIONS.]
Subdivision 1. [SCOPE.] The definitions in this section apply to this chapter.
Subd. 2. [ARREARS.] "Arrears" means amounts owed under a support order that are past due. It includes child support, pregnancy and confinement expenses, attorney fees, and any other obligations addressed in a support order.
Subd. 3. [BUSINESS DAY.] "Business day" means a day on which state offices are open for regular business.
Subd. 4. [CHILD.] "Child" means an individual under 18 years of age, an individual under age 20 who is still attending secondary school, or an individual who, by reason of physical or mental condition, is incapable of self-support.
Subd. 5. [CHILD SUPPORT.] "Child support" means:
(1) an award in a dissolution, legal separation, annulment, or parentage proceeding for the care, support, and education of a child of the marriage or of the parties to the proceeding;
(2) a contribution by parents ordered under section 256.87; or
(3) support ordered under chapter 518B or 518C.
Subd. 6. [DEPOSIT ACCOUNT.] "Deposit account" means funds deposited with a financial institution in the form of a savings account, checking account, NOW account, or demand deposit account.
Subd. 7. [FINANCIAL INSTITUTION.] "Financial institution" means a savings association, bank, trust company, credit union, industrial loan and thrift company, bank and trust company, or savings association, and includes a branch or detached facility of a financial institution.
Subd. 8. [OBLIGEE.] "Obligee" means a person to whom payments for child support are owed.
Subd. 9. [OBLIGOR.] "Obligor" means a person obligated to pay child support. A person who is designated as the sole physical custodian of a child is presumed not to be an obligor for purposes of calculating current support unless the court makes specific written findings to overcome this presumption.
Subd. 10. [PAYMENT.] "Payment" means the payment of child support, child care support, medical support, and related payments required by order of a tribunal, voluntary support, or statutory fees.
Subd. 11. [PAYOR OF FUNDS.] "Payor of funds" means a person or entity that provides funds to an obligor, including an employer as defined under chapter 24 of the Internal Revenue Code, section 3401(d), an independent contractor, payor of workers' compensation benefits or reemployment compensation, or a financial institution as defined in section 13B.06.
Subd. 12. [PUBLIC AUTHORITY.] "Public authority" means the local unit of government, acting on behalf of the state, that is responsible for child support enforcement or the child support enforcement division of the department of human services.
Subd. 13. [SUBSEQUENT CHILD.] "Subsequent child" means a child born after the child who is the subject of the child support proceeding.
Subd. 14. [SUPPORT ORDER.] (a) "Support order" means a judgment, decree, or order, whether temporary, final, or subject to modification, issued by a court or administrative agency of competent jurisdiction that:
(1) provides for the support of a child, including a child who has attained the age of majority under the law of the issuing state;
(2) provides for monetary support, child care, medical support including expenses for confinement and pregnancy, arrears, or reimbursement; and
(3) may include related costs and fees, interest and penalties, income withholding, and other relief.
(b) The definition in paragraph (a) applies to orders issued under this chapter and chapters 256, 257, 518B, and 518C.
Subd. 15. [TRIBUNAL.] "Tribunal" has the meaning given in section 518C.101.
Sec. 4. [517C.03] [PROCEDURAL RULES.]
The supreme court may promulgate rules to be used in child support cases.
Sec. 5. [517C.04] [CHILD SUPPORT ORDERS.]
Subdivision 1. [ORDER.] (a) Upon dissolution of marriage, legal separation, annulment, establishment of paternity, or when otherwise required by statute, the court must order child support as provided by this chapter.
(b) Nothing contained in this chapter limits the power of the court to make appropriate, adequate orders for the support and education of a child of the parties to a dissolution, legal separation, or annulment action if the dissolution, legal separation, or annulment is denied.
Subd. 2. [PROVISIONS.] Child support orders must provide for general child rearing costs, or basic needs, and must also specifically address medical care and child care costs, providing for those costs pursuant to this chapter.
Subd. 3. [AGREEMENTS.] If the parties stipulate or agree to a child support order, the court must review the agreement to ensure it serves the best interests of the child. The supreme court may promulgate rules regarding the review of stipulations and agreements. The court may refuse to accept or may alter an agreement that does not conform with the requirements of this chapter or that is otherwise not in the best interests of the child.
Subd. 4. [PREFERENCE FOR SPECIFIC DOLLAR AMOUNT.] (a) There is a presumption in favor of ordering child support in a specific dollar amount, as opposed to a percentage of income.
(b) The court may order an obligor to pay child support in the form of a percentage share of the obligor's net bonuses, commissions, or other forms of compensation, in addition to, or if the obligor receives no base pay, in lieu of an order for a specific dollar amount.
Subd. 5. [PREFERENCE FOR MONTHLY PAYMENT.] There is a presumption in favor of ordering child support in an amount that reflects an obligor's monthly obligation.
Subd. 6. [PREFERENCE FOR STATIC PAYMENT.] (a) There is a presumption in favor of ordering child support so that an obligor makes the same monthly payments throughout the year, as opposed to payment amounts that fluctuate by season or month. If the obligor is seasonally employed, it is generally the responsibility of the obligor to budget income accordingly.
Subd. 7. [ACCOUNTING FOR CHILD SUPPORT BY OBLIGEE.] (a) Upon the motion of an obligor, a court may order an obligee to account for the use or disposition of child support received. The motion must assert the specific allegations of abuse or misapplication of child support received and that a child's needs are not being met. If the court orders a hearing, the court may order an accounting only if the obligor establishes the specific allegations of abuse or misapplication of child support received and that the child's needs are not being met.
(b) If the court orders an accounting under paragraph (a), the obligee must provide documentation that breaks down monthly expenditures of child support received into the following categories:
(1) housing and utilities;
(2) food;
(3) transportation;
(4) clothing;
(6) child care and education; and
(7) miscellaneous.
An obligee may account for expenditures on housing, utilities, food, and transportation that are attributable to multiple household members on a per capita basis.
(c) If the court finds that an obligee does not make the accounting required under paragraph (b) or the obligee does not spend the entire child support payment on behalf of the child, the court may:
(1) hold the obligee in contempt of court;
(2) reduce or eliminate the obligor's child support obligation;
(3) order the obligee to make future expenditures on behalf of the child, whether in whole or in part, in a manner that documents the transaction; or
(4) make any other appropriate order to ensure that the needs of the child are met.
(d) If the court determines that an obligor's motion under this section is brought in bad faith, the court may award reasonable attorney fees to the obligee.
Subd. 8. [DEPARTURE.] The court may depart from a presumption in subdivision 4, 5, or 6 if:
(1) all parties agree; or
(2) the presumption would impose an extreme hardship on the obligor and would not be in the best interests of the child.
Subd. 9. [CHILD SUPPORT TO BE DISTINGUISHED FROM MAINTENANCE.] In a judgment of dissolution or legal separation, the court must clearly distinguish between payments ordered for maintenance and payments ordered for child support. An award of payments from future income or earnings of the parent with whom the child resides is presumed to be maintenance and an award of payments from the future income or earnings of the other parent is presumed to be child support, unless otherwise designated by the court.
Subd. 10. [OTHER CUSTODIANS.] If a child resides with a person other than a parent and the court approves of the custody arrangement, the court may order child support payments to be made to the custodian regardless of whether the person has legal custody.
Subd. 11. [EITHER PARENT LIABLE; MARITAL MISCONDUCT IRRELEVANT.] The court may order either or both parents owing a duty of support to a child to pay an amount reasonable or necessary for the child's support, without regard to marital misconduct.
Sec. 6. [517C.05] [TEMPORARY ORDERS.]
Subdivision 1. [MOTION; SCOPE.] In a child support proceeding a party may, by motion, request that the court grant a temporary order pending the final disposition of the proceeding for temporary child support, costs, and reasonable attorney fees. Additionally, to facilitate the just and speedy disposition of the proceeding, the court may require a party to perform or refrain from performing additional acts.
Subd. 2. [DURATION.] A temporary order continues in full force and effect until:
(2) it is vacated;
(3) the main action is dismissed; or
(4) a final decree of dissolution, legal separation, or other final order is entered.
Subd. 3. [FACTORS.] The court must consider the factors set forth in this chapter in making temporary orders.
Subd. 4. [EVIDENCE.] Temporary orders must be made solely on the basis of affidavits and argument of counsel unless:
(1) a party makes a timely motion or responsive motion to hear the matter on oral testimony before the court; or
(2) the court in its discretion orders the taking of oral testimony.
Subd. 5. [LIMITED EFFECT.] A temporary order does not prejudice the rights of the parties or the child that are to be adjudicated at subsequent hearings in the proceeding.
Subd. 6. [MODIFICATION.] A temporary order may be revoked or modified by the court before the final disposition of the proceeding upon the same grounds and subject to the same requirements as the initial granting of the order.
Sec. 7. [517C.06] [DETERMINATION OF CONTROLLING ORDER.]
The public authority or a party may request the court to determine a controlling order when more than one order involving the same obligor and child exists.
Sec. 8. [517C.07] [ATTORNEY FEES; COSTS AND DISBURSEMENTS.]
Subdivision 1. [GENERAL.] (a) Except as provided in section 517C.83, in a proceeding under this chapter, the court must award attorney fees, costs, and disbursements in an amount necessary to enable a party to carry on or contest the proceeding if:
(1) the fees are necessary for the good-faith assertion of the party's rights in the proceeding and will not contribute unnecessarily to the length and expense of the proceeding;
(2) the party from whom fees, costs, and disbursements are sought has the means to pay them; and
(3) the party to whom fees, costs, and disbursements are awarded does not have the means to pay them.
(b) Fees, costs, and disbursements may be awarded at any point during or after a proceeding under this chapter.
(c) The court may assess costs and disbursements against either party.
Subd. 2. [UNREASONABLE ACTIONS.] The court may, in its discretion, assess additional fees, costs, and disbursements against a party who unreasonably contributes to the length or expense of the proceeding.
Subd. 3. [COLLECTION.] The court may authorize the collection of money awarded by execution, or out of property sequestered, or in any other manner within the power of the court. An award of attorney fees survives the proceeding. If the award is not paid by the party directed to pay it, the award may be enforced as provided by this subdivision or by a separate civil action brought in the attorney's own name.
Sec. 9. [517C.10] [EXCHANGE OF INFORMATION.]
Subdivision 1. [DOCUMENTATION.] The parties must timely serve and file documentation of earnings and income. Documentation of earnings and income includes, but is not limited to, pay stubs for the most recent three months, employer statements, or statement of receipts and expenses if self-employed. Documentation of earnings and income also includes copies of each parent's most recent federal tax returns, W-2 forms, 1099 forms, reemployment compensation statements, workers' compensation statements, and all other documents evidencing the receipt of income that provide verification of income over a longer period.
Subd. 2. [ANNUAL EXCHANGE OF TAX RETURNS.] An obligor and obligee must annually provide all other parties with a copy of his or her federal tax return filed with the Internal Revenue Service.
Subd. 3. [NOTICE OF ADDRESS OR RESIDENCE CHANGE.] An obligor must notify other parties of a change of address or residence within 60 days of the address or residence change.
Subd. 4. [NOTICE TO PUBLIC AUTHORITY; PUBLIC ASSISTANCE.] The petitioner must notify the public authority of all proceedings for dissolution, legal separation, determination of parentage, or for the custody of a child, if either party is receiving public assistance or applies for it subsequent to the commencement of the proceeding. The notice must contain the full names of the parties to the proceeding, their social security account numbers, and their birth dates.
Subd. 5. [FAILURE OF NOTICE.] If the court in a dissolution, legal separation, or determination of parentage proceeding, finds before issuing the order for judgment and decree, that notification has not been given to the public authority, the court must set child support according to the guidelines in this chapter. In those proceedings in which no notification has been made pursuant to this section and in which the public authority determines that the judgment is lower than the child support required by the guidelines in this chapter, it must move the court for a redetermination of the support payments ordered so that the support payments comply with the guidelines.
Sec. 10. [517C.11] [PRIVACY PROTECTION; PERSONAL PROTECTION.]
Subdivision 1. [SOCIAL SECURITY NUMBERS; TAX RETURNS.] The social security numbers and tax returns required under this chapter are not accessible to the public, except that they must be disclosed to the other parties to a proceeding as provided in section 517C.10.
Subd. 2. [MODIFICATION OF CERTAIN REQUIREMENTS.] The court may modify or limit the information exchange requirements of this chapter by order if necessary to protect a party from contact by another party.
Subd. 3. [ACCESS TO ADDRESS FOR SERVICE OF PROCESS.] (a) If the public authority is a party or is providing services in a support case, a party may obtain an ex parte order under this subdivision. The party may obtain an ex parte order requiring the public authority to serve legal documents on the other party by mail if the party submits a sworn affidavit to the court stating that:
(1) the party needs to serve legal process in a support proceeding and does not have access to the address of the other party;
(2) the party has made reasonable efforts to locate the other party; and
(3) the other party is not represented by counsel.
(b) The public authority must serve legal documents provided by the moving party at the last known address of the other party upon receipt of a court order under paragraph (a). The public authority must provide for appropriate service and must certify to all parties the date of service by mail. The public authority's proof of service must not include the place or address of service.
(c) The state court administrator must prepare and make available forms for use in seeking access to an address under this subdivision.
Sec. 11. [517C.12] [INCOME.]
Subdivision 1. [DEFINITION.] For purposes of calculating child support under this chapter, "income" means gross income.
Subd. 2. [SOURCES.] For purposes of this chapter, income includes any form of periodic payment to an individual including, but not limited to:
(1) wages;
(2) salaries;
(3) payments to an independent contractor;
(4) workers' compensation;
(5) reemployment compensation;
(6) annuity;
(7) military and naval retirement;
(8) pension and disability payments; and
(9) in-kind payments received by the obligor in the course of employment, self-employment, or operation of a business if the payments reduce the obligor's living expenses.
Subd. 3. [COMMISSIONS; BONUSES.] If the court finds that a party's commissions or bonuses are reliable and predictable, the court may include them in income calculations.
Subd. 4. [SELF-EMPLOYMENT; INDEPENDENT CONTRACTORS.] (a) Income from self-employment is equal to gross receipts minus ordinary and necessary expenses. Ordinary and necessary expenses do not necessarily include amounts allowed by the Internal Revenue Service for accelerated depreciation expenses or investment tax credits or any other business expenses determined by the court to be inappropriate for determining income for purposes of child support. The person seeking to deduct an expense, including depreciation, has the burden of proving, if challenged, that the expense is ordinary and necessary. Income calculated under this section may be different from taxable income.
Subd. 5. [PUBLIC ASSISTANCE EXCLUSIONS.] Benefits received under Title IV-A of the Social Security Act and chapter 256J are not income under this section.
Subd. 6. [OVERTIME.] (a) Income does not include compensation received by a party for employment in excess of a 40-hour work week if:
(1) the excess employment is not within the normal range of hours worked, given the party's employment history;
(2) the excess employment is voluntary and not a condition of employment;
(3) the excess employment is in the nature of additional, part-time or overtime employment compensable by the hour or fraction of an hour; and
(4) the party's compensation structure has not been changed for the purpose of affecting a child support obligation.
(b) The court may presume that a party with seasonal or intermittent income who works periods in excess of a 40-hour work week, but who works a substantially normal number of hours over the course of a year, is working within the normal range of hours worked.
Subd. 7. [INCOME OF A SPOUSE OR OTHER HOUSEHOLD MEMBER.] (a) Income must not include the income of a party's spouse or other household member. The court must not consider the income or resources provided by a spouse or other household member when determining all the earnings, income, and resources of a parent under section 517C.17.
(b) Notwithstanding paragraph (a), the court may issue an order permitting discovery of a spouse or other household member's income information if there is probable cause to believe the spouse or other household member is being used to shelter income from a party. If the court finds that income was improperly or unfairly sheltered, it may impute income to the party or otherwise adjust the support amount in a just and proper manner. However, the court may not under any circumstances consider income or resources properly attributable to a spouse or other household member when setting support.
Subd. 8. [PRIOR ORDERS BEING PAID.] A child support or maintenance order that is currently being paid must be deducted from income.
Sec. 12. [517C.13] [IMPUTED INCOME.]
Subdivision 1. [NONAPPEARANCE OF A PARTY.] If a parent under the jurisdiction of the court does not appear at a court hearing after proper notice of the time and place of the hearing, the court must set income for that parent based on credible evidence before the court or in accordance with subdivision 3. Credible evidence may include documentation of current or recent income, testimony of the other parent concerning recent earnings and income levels, and the parent's wage reports filed with the Minnesota department of economic security under section 268.044.
Subd. 2. [VOLUNTARY UNEMPLOYMENT OR UNDEREMPLOYMENT.] (a) The principles of income imputation apply equally to obligors and obligees.
(b) If the court finds that a parent is voluntarily unemployed or underemployed or was voluntarily unemployed or underemployed during the period for which past support is being sought, support must be calculated based on a determination of imputed income.
(c) A parent is not considered voluntarily unemployed or underemployed upon a showing by the parent that:
(1) the unemployment or underemployment is temporary and will ultimately lead to an increase in income;
(2) the unemployment or underemployment represents a bona fide career change that outweighs the adverse effect of that parent's diminished income on the child;
(3) the parent is a recipient of public assistance under section 256.741; or
(4) the parent is physically or mentally incapacitated.
(d) Imputed income means the estimated earning ability of a parent based on the parent's prior earnings history, education, and job skills, and on availability of jobs within the community for an individual with the parent's qualifications.
Subd. 3. [INSUFFICIENT INFORMATION.] If there is insufficient information to determine actual income or to impute income pursuant to subdivision 1 or 2, the court may calculate support based on full-time employment of 40 hours per week at 150 percent of the federal minimum wage or the Minnesota minimum wage, whichever is higher.
Sec. 13. [517C.14] [PRESUMPTIVE CHILD SUPPORT ORDER; GENERAL.]
Subdivision 1. [REBUTTABLE PRESUMPTION.] The guidelines in sections 517C.12 to 517C.16 are a rebuttable presumption and must be used in all cases when establishing or modifying child support.
Subd. 2. [SUBSTANTIAL UNFAIRNESS; MINIMUM SUPPORT AMOUNT.] (a) If the presumptive support amount derived from the child support worksheet leaves the obligor with income less than 150 percent of the federal poverty guidelines, the worksheet does not apply and the court must order support in a fair and equitable amount that leaves both parties in a substantially similar situation in relation to the federal poverty guidelines considering:
(1) the factors outlined in section 517C.17;
(2) tax credits and deductions available to either party; and
(3) receipt of public assistance by either party.
(b) In any event, the court must order support in an amount not less than $50 per child per month unless the court finds that the obligor completely lacks an ability to pay due to a circumstance such as a permanent and total disability or incarceration without work release privileges.
(c) For purposes of this section, when determining income relative to the federal poverty guidelines, only children common to the obligor and obligee are included in the household.
Subd. 3. [CHILD SUPPORT CAP.] (a) Except as provided under paragraph (b), a monthly basic needs obligation in a child support order must not exceed:
(1) $1,500 for one child;
(2) $2,400 for two children;
(3) $2,800 for three children; or
(4) $2,800 plus $300 for each additional child over three children.
(b) A court may order a basic needs obligation in a child support order in an amount that exceeds the limit in paragraph (a) if it finds that a child has a disability or other substantial, demonstrated need for the additional support and that the additional support will directly benefit the child.
(c) The dollar amounts in paragraph (a) must be adjusted on July 1 of every even-numbered year to reflect cost-of-living changes. The supreme court must select the index for the adjustment from the indices listed in section 517C.31. The state court administrator must make the changes in the dollar amounts required by this paragraph available to courts and the public on or before April 30 of the year in which the amount is to change.
Subd. 4. [CHILD CARE COSTS.] (a) The court must require verification of employment or school attendance and documentation of child care expenses from the obligee and the public authority, if applicable.
(b) If child care expenses fluctuate during the year because of seasonal employment or school attendance of the obligee or extended periods of parenting time with the obligor, the court must determine child care expenses based on an average monthly cost.
(c) The amount allocated for child care expenses is considered child support but is not subject to a cost-of-living adjustment under section 517C.31.
(d) The amount allocated for child care expenses terminates when either party notifies the public authority that the child care costs have ended and without any legal action on the part of either party. The public authority must verify the information received under this paragraph before authorizing termination. The termination is effective as of the date of the notification. In other cases where there is a substantial increase or decrease in child care expenses, the parties may modify the order under section 517C.31.
(e) The court may allow the parent with whom the child does not reside to care for the child while the parent with whom the child resides is working, as provided in section 517B.27, subdivision 8. Allowing the parent with whom the child does not reside to care for the child under section 517B.27, subdivision 8, is not a reason to deviate from the guidelines.
Subd. 5. [PARENTING TIME ADJUSTMENTS.] (a) For the purpose of applying the proper parenting time adjustment on line 5 of the presumptive support worksheet, the following principles apply:
(1) the label given to a custody arrangement is not determinative of the applicable adjustment;
(2) the actual division of parenting time controls; and
(3) an overnight stay presumptively constitutes a day of caregiving.
(b) A parenting time division approximates joint physical custody if each parent provides, or is responsible for providing, care at least 45 percent of the days in a year.
(c) If each parent provides, or is responsible for providing, care at least 45 percent of the days in a year, the obligor's basic needs obligation on line 5 of the presumptive child support worksheet under section 517C.16, is 50 percent of the difference between the obligor's and obligee's basic needs obligations. The court must make specific written findings in support of a parenting time adjustment.
Subd. 6. [CHILD'S INSURANCE BENEFIT.] In establishing or modifying child support, if a child receives a child's insurance benefit under United States Code, title 42, section 402, because the obligor is entitled to old age or disability insurance benefits, the amount of support ordered must be offset by the amount of the child's benefit. The court must make findings regarding the obligor's income from all sources, the child support amount calculated under this chapter, the amount of the child's benefit, and the obligor's child support obligation. A benefit received by the child in a given month in excess of the child support obligation must not be treated as a payment of arrears or a future payment.
Subd. 7. [MORE THAN SIX CHILDREN.] If a child support proceeding involves more than six children, the court may derive a support order without specifically following the guidelines. However, the court must consider the basic principles encompassed by the guidelines and must consider the needs, resources, and circumstances of both parties.
Sec. 14. [517C.15] [MEDICAL SUPPORT.]
Subdivision 1. [DEFINITIONS.] The definitions in this subdivision apply to this chapter.
(a) "Health care coverage" means health care benefits that are provided by a health plan. Health care coverage does not include any form of medical assistance under chapter 256B or MinnesotaCare under chapter 256L.
(b) "Health carrier" means a carrier as defined in sections 62A.011, subdivision 2, and 62L.02, subdivision 16.
(c) "Health plan" means a plan meeting the definition under section 62A.011, subdivision 3, or a policy, contract, or certificate issued by a community integrated service network licensed under chapter 62N, and includes plans: (1) provided on an individual and group basis, (2) provided by an employer or union, (3) purchased in the private market, (4) available to a person eligible to carry insurance for the child, and (5) provided through a health plan governed under the federal Employee Retirement Income Security Act of 1974 (ERISA), United States Code, title 29, section 1169(a). "Health plan" includes a plan providing for dependent-only, dental, or vision coverage and a plan provided through a party's spouse or parent.
(d) "Medical support" means providing health care coverage for a child by carrying health care coverage for the child or by contributing to the cost of health care coverage, public coverage, unreimbursed medical expenses, and uninsured medical expenses of the child.
(e) "National medical support notice" is an administrative notice issued by the public authority to enforce medical support provisions of a support order in accordance with Code of Federal Regulations, title 45, section 303.32.
(f) "Public coverage" means health care benefits provided by any form of medical assistance under chapter 256B or MinnesotaCare under chapter 256L.
(g) "Uninsured medical expenses" means a child's reasonable and necessary health-related expenses if the child is not covered by a health plan or public coverage when the expenses are incurred.
(h) "Unreimbursed medical expenses" means a child's reasonable and necessary health-related expenses if a child is covered by a health plan or public coverage and the plan or coverage does not pay for the total cost of the expenses when the expenses are incurred. Unreimbursed medical expenses do not include the cost of premiums. Unreimbursed medical expenses include, but are not limited to, deductibles, co-payments, and expenses for orthodontia, prescription eye glasses and contact lenses, and over-the-counter medicine.
Subd. 2. [ORDER.] (a) A completed national medical support notice issued by the public authority or a court order that complies with this section is a qualified medical child support order under the federal Employee Retirement Income Security Act of 1974 (ERISA), United States Code, title 29, section 1169(a).
(b) Every order addressing child support must state:
(1) the names, last known addresses, and social security numbers of the parents and the child that is a subject of the order unless the court prohibits the inclusion of an address or social security number and orders the parent to provide the address and social security number to the administrator of the health plan;
(2) whether appropriate health care coverage for the child is available and, if so, state:
(i) which party must carry health care coverage;
(ii) the cost of premiums and how the cost is allocated between the parties;
(iii) how unreimbursed expenses will be allocated and collected by the parties; and
(iv) the circumstances, if any, under which the obligation to provide health care coverage for the child will shift from one party to the other; and
(3) if appropriate health care coverage is not available for the child, whether a contribution for medical support is required.
(c) The amount ordered for medical support is subject to a cost-of-living adjustment under section 517C.31.
Subd. 3. [DETERMINATION OF APPROPRIATE COVERAGE.] (a) In determining whether a party has appropriate health care coverage for the child, the court must evaluate the health plan using the following factors:
(1) accessible coverage. Dependent health care coverage is accessible if the covered child can obtain services from a health plan provider with reasonable effort by the parent with whom the child resides. Health care coverage is presumed accessible if:
(i) primary care coverage is available within 30 minutes or 30 miles of the child's residence and specialty care coverage is available within 60 minutes or 60 miles of the child's residence;
(ii) the coverage is available through an employer and the employee can be expected to remain employed for a reasonable amount of time; and
(iii) no preexisting conditions exist to delay coverage unduly;
(2) comprehensive coverage. Dependent health care coverage is comprehensive if it includes, at a minimum, medical and hospital coverage and provides for preventive, emergency, acute, and chronic care. If both parties have health care coverage that meets the minimum requirements, the court must determine which health care coverage is more comprehensive by considering whether the coverage includes:
(i) basic dental coverage;
(ii) orthodontics;
(iii) eyeglasses;
(iv) contact lenses;
(v) mental health services; or
(vi) substance abuse treatment;
(3) affordable coverage. Dependent health care coverage is affordable if a party's gross income is 150 percent of the federal poverty guidelines or more and the party's contribution to the health care coverage premium does not exceed five percent of the party's gross income. If a party's gross income is less than 150 percent of the federal poverty guidelines, it is presumed that the party is unable to contribute to the cost of health care coverage unless health care is available at no or low cost to that party; and
(4) the child's special medical needs, if any.
(b) If both parties have health care coverage available for a child, and the court determines under paragraph (a), clauses (1) and (2), that the available coverage is comparable with regard to accessibility and comprehensiveness, the least costly health care coverage is the appropriate health care coverage for the child.
Subd. 4. [COVERAGE.] (a) If a child is presently enrolled in health care coverage, the court must order that the parent who currently has the child enrolled continue that enrollment unless the parties agree otherwise or a party requests a change in coverage and the court determines that other health care coverage is more appropriate.
(b) If a child is not presently enrolled in health care coverage, upon motion of a party or the public authority, the court must determine whether one or both parties have appropriate health care coverage for the child and order the party with appropriate health care coverage available to carry the coverage for the child.
(c) If only one party has appropriate health care coverage available, the court must order that party to carry the coverage for the child.
(d) If both parties have appropriate health care coverage available, the court must order the parent with whom the child resides to carry the coverage for the child, unless:
(1) either party expresses a preference for coverage available through the parent with whom the child does not reside;
(2) the parent with whom the child does not reside is already carrying dependent health care coverage for other children and the cost of contributing to the premiums of the other parent's coverage would cause the parent with whom the child does not reside extreme hardship; or
(3) both parents agree to provide coverage and agree on the allocation of costs.
If the exception in clause (1) or (2) applies, the court must determine which party has the most appropriate coverage available and order that party to carry coverage for the child. If the court determines under subdivision 3, paragraph (a), clauses (1) and (2), that the parties' health care coverage for the child is comparable with regard to accessibility and comprehensiveness, the court must order the party with the least costly health care coverage to carry coverage for the child.
(e) If neither party has appropriate health care coverage available, the court must order the parent with whom the child does not reside to contribute toward the cost of public coverage for the child or the child's uninsured medical expenses in an amount equal to the lesser of:
(1) five percent of gross income; or
(2) the monthly amount the parent with whom the child does not reside would pay for the child's premiums if the parent's income meets the eligibility requirements for public coverage. For purposes of determining the premium amount, a parent's household size is equal to the parent plus the child who is the subject of the child support order. The court may order the parent with whom the child resides to apply for public coverage for the child.
Subd. 5. [CALCULATING MEDICAL SUPPORT; UNREIMBURSED MEDICAL EXPENSES.] (a) The court must calculate the cost of medical support on line 7 of the presumptive child support worksheet under section 517C.16. Unless otherwise agreed by the parties and approved by the court, the court must order that the cost of health care coverage be divided between the obligor and obligee based on their proportionate share of the parties' combined gross income.
(b) If a party's obligation for health care coverage premiums is greater than five percent of the party's gross income, the court may order the other party to contribute more for the cost of the premiums, if doing so would not result in extreme hardship to that party. If an additional contribution causes a party extreme hardship, the court must order the obligor to contribute the lesser of the two amounts under subdivision 4, paragraph (e).
(c) The court must order that all unreimbursed medical expenses be divided between the obligor and obligee based on their proportionate share of the parties' combined gross income.
Subd. 6. [ALLOCATING MEDICAL SUPPORT COSTS.] (a) If the party ordered to carry health care coverage for the child already carries dependent health care coverage for other dependents and would incur no additional premium costs to add the child to the existing coverage, the court must not order the other party to contribute to the premium costs for coverage of the child.
(b) If a party ordered to carry health care coverage for the child does not already carry dependent health care coverage but has other dependents who may be added to the ordered coverage, the full premium costs of the dependent health care coverage must be allocated between the parties in proportion to the party's share of the parties' combined income available for child support, unless the parties agree otherwise.
(c) If a party ordered to carry health care coverage for the child is required to enroll in a health plan so that the child can be enrolled in dependent health care coverage under the plan, the court must allocate the costs of the dependent health care coverage between the parties. The costs of the health care coverage for the party ordered to carry the coverage for the child must not be allocated between the parties.
Subd. 7. [NOTICE TO EMPLOYER BY PUBLIC AUTHORITY OR COURT.] (a) A copy of the national medical support notice or court order for health care coverage must be forwarded by the public authority to the employer within two business days after the date an employee is entered into the work reporting system under section 256.998.
(b) If a party is ordered to carry health care coverage for the child and the public authority provides support enforcement services, the public authority must forward a copy of the national medical support notice or notice of medical support withholding to the party's employer or union and to the health carrier when the conditions under paragraph (d) are met or when ordered by the court.
(c) If the public authority does not provide support enforcement services, the party seeking to enforce the order may forward a copy of the court order for health care coverage for the child to the employer or union of the party ordered to carry coverage and to the health carrier when the conditions under paragraph (d) are met or when ordered by the court.
(d) The public authority or party seeking to enforce the order must forward a copy of the national medical support notice or court order for health care coverage to the employer under paragraphs (b) and (c) if:
(1) the party ordered to carry health care coverage for the child fails to provide written proof to the other party or the public authority, within 30 days of the effective date of the court order, that health care coverage has been obtained for the child;
(2) the other party or the public authority gives written notice to the party ordered to carry health care coverage for the child of intent to enforce medical support. The other party or public authority must mail the written notice to the last known address of the party ordered to carry health care coverage for the child; and
(3) the party ordered to carry health care coverage for the child fails, within 15 days after the date on which the written notice under clause (2) was mailed, to provide written proof to the other party or the public authority that the party has obtained health care coverage for the child.
Subd. 8. [EFFECT OF ORDER.] (a) A new employer or union of a party who is ordered to provide health care coverage for the child must enroll the child in the party's health plan as required by a national medical support notice or court order.
(b) If a health plan administrator receives a completed national medical support notice, the plan administrator must notify the public authority within 40 business days after the date of the notice of the following:
(1) whether coverage is available to the child under the terms of the health plan;
(2) whether the child is covered under the health plan;
(3) the effective date of the child's coverage under the health plan; and
(4) what steps, if any, are required to effectuate the child's coverage under the health plan.
(c) The plan administrator must also provide the public authority and the parties with a notice of enrollment of the child, description of the coverage, and any documents necessary to effectuate coverage.
Subd. 9. [CONTESTING ENROLLMENT.] (a) A party may contest the enrollment of a child in a health plan on the limited grounds that the enrollment is improper due to mistake of fact or that the enrollment meets the requirements of section 517C.26. If the party chooses to contest the enrollment, the party must do so no later than 15 days after the employer notifies the party of the enrollment by doing the following:
(1) filing a request for hearing according to section 484.702;
(2) serving a copy of the request for hearing upon the public authority and the other party; and
(3) securing a date for the matter to be heard no later than 45 days after the notice of enrollment.
(b) The enrollment must remain in place while the party contests the enrollment.
Subd. 10. [EMPLOYER OR UNION REQUIREMENTS.] (a) An employer must send the national medical support notice to its health plan within 20 business days after the date on the national medical support notice.
(b) An employer or union that is included under the federal Employee Retirement Income Security Act of 1974 (ERISA), United States Code, title 29, section 1169(a), may not deny enrollment to the child or to the parent if necessary to enroll the child based on exclusionary clauses described in section 62A.048.
(c) Upon application of the party, or if a court orders a party to carry health insurance coverage for a child, the employer or union and its health plan must enroll the child as a beneficiary in the health plan and withhold any required premiums from the income or wages of the party ordered to carry health care coverage for the child.
(d) If more than one plan is offered by the employer or union and the national medical support notice or court order does not specify the plan to be carried, the plan administrator must notify the parents and the public authority.
(e) If the party ordered to carry health care coverage for the child is not enrolled in the health plan, the employer or union must also enroll the party in the chosen plan if enrollment of the party is necessary to obtain dependent health care coverage under the plan.
(f) Enrollment of dependents and, if necessary, the party ordered to carry health care coverage for the child must be immediate and not dependent upon open enrollment periods. Enrollment is not subject to the underwriting policies under section 62A.048.
(g) Failure of the party ordered to carry health care coverage for the child to execute any documents necessary to enroll the dependent in the health plan does not affect the obligation of the employer or union and health plan to enroll the dependent in a plan. Information and authorization provided by the public authority, or by a party or guardian, is valid for the purposes of meeting enrollment requirements of the health plan.
Subd. 11. [EMPLOYER LIABILITY.] An employer or union that willfully fails to comply with the order is liable for any uninsured medical expenses incurred by the dependents while the dependents were eligible to be enrolled in the health plan and for any other premium costs incurred because the employer or union willfully failed to comply with the order. An employer or union that fails to comply with the order is subject to a finding of contempt and a $250 civil penalty under section 517C.57 and is also subject to a civil penalty of $500 to be paid to the party entitled to reimbursement or the public authority. Penalties paid to the public authority are designated for child support enforcement services.
Subd. 12. [DISENROLLMENT; CONTINUATION OF COVERAGE; OPTIONS IN COVERAGE.] (a) A child for whom a party is required to provide health care coverage under this section must be covered as a dependent of the party until the child is emancipated, until further order of the court, or as consistent with the terms of the coverage.
(b) The health carrier, employer, or union may not disenroll or eliminate coverage for the child unless:
(1) the health carrier, employer, or union is provided satisfactory written evidence that the court order is no longer in effect;
(2) the child is or will be enrolled in comparable health care coverage through another health plan that will take effect no later than the effective date of the disenrollment;
(3) the employee is no longer eligible for dependent coverage; or
(4) the required premium has not been paid by or on behalf of the child.
(c) If disenrollment or elimination of coverage of a child under this subdivision is based upon nonpayment of premiums, the health plan must provide 30 days' written notice to the child's parents and the public authority, if the public authority is providing support enforcement services, prior to the disenrollment or elimination of coverage.
(d) A child enrolled in health care coverage under a qualified medical child support order, including a national medical support notice, under this section is a dependent and a qualified beneficiary under the Consolidated Omnibus Budget and Reconciliation Act of 1985 (COBRA), Public Law Number 99-272. Upon expiration of the order, the child is entitled to the opportunity to elect continued coverage that is available under the health plan. Notice must be provided by the employer or union to the parties and the public authority, if it provides child support services, within ten days of the termination date.
(e) If the public authority provides support enforcement services and a plan administrator reports to the public authority that there is more than one coverage option available under the health plan, the public authority, in consultation with the parents, must promptly select coverage from the available options. If the parents fail to cooperate in a reasonable period of time, the public authority must select coverage from the available health plan options.
Subd. 13. [SPOUSAL OR FORMER SPOUSAL COVERAGE.] The court must require the parent with whom the child does not reside to provide dependent health care coverage for the benefit of the parent with whom the child resides if the parent with whom the child does not reside is ordered to provide dependent health care coverage for the parties' child and adding the other parent to the coverage results in no additional premium cost to the parent with whom the child does not reside.
Subd. 14. [PLAN REIMBURSEMENT.] The signature of a parent of the insured child is a valid authorization to a health plan for purposes of processing an insurance reimbursement payment to the provider of the medical services or to the parent if medical services have been prepaid by that parent.
Subd. 15. [CORRESPONDENCE AND NOTICE.] The health plan must send copies of all correspondence regarding the health care coverage to both parents.
Subd. 16. [DISCLOSURE OF INFORMATION.] (a) Parties must provide the public authority with the following information when support enforcement services are provided:
(1) information relating to dependent health care coverage or public coverage available for the benefit of the child for whom support is sought, including all information required to be included in a medical support order under this section;
(2) verification that application for court-ordered health care coverage was made within 30 days of the court's order; and
(3) the reason that a child is not enrolled in court-ordered health care coverage, if a child is not enrolled in coverage or subsequently loses coverage.
(b) Upon request from the public authority under section 256.978, an employer, union, or plan administrator, including an employer subject to the federal Employee Retirement Income Security Act of 1974 (ERISA), United States Code, title 29, section 1169(a), must provide the public authority the following information:
(1) information relating to dependent health care coverage available to a party for the benefit of the child for whom support is sought, including all information required to be included in a medical support order under this section; and
(2) information that will enable the public authority to determine whether a health plan is appropriate for a child, including, but not limited to, all available plan options, any geographic service restrictions, and the location of service providers.
(c) The employer, union, or plan administrator must not release information regarding one party to the other party. The employer, union, or plan administrator must provide both parties with insurance identification cards and all necessary written information to enable the parties to utilize the insurance benefits for the covered dependents.
(d) The public authority is authorized to release to a party's employer, union, or health plan information necessary to obtain or enforce medical support.
(e) An employee must disclose to an employer if medical support is required to be withheld under this section and the employer must begin withholding according to the terms of the order and under section 517C.52. If an employee discloses an obligation to obtain health care coverage and coverage is available through the employer, the employer must make all application processes known to the individual and enroll the employee and dependent in the plan under subdivision 10.
Subd. 17. [APPLICATION FOR CHILD SUPPORT ENFORCEMENT SERVICES.] The public authority must take necessary steps to establish and enforce an order for medical support if the child receives public assistance or a party completes an application for services from the public authority.
Subd. 18. [ENFORCEMENT.] (a) Remedies available for the collection and enforcement of child support apply to medical support. For the purpose of enforcement, the costs of individual or group health or hospitalization coverage, dental coverage, all medical costs ordered by the court to be paid by either party, including health and dental insurance premiums paid by the obligee because of the obligor's failure to obtain coverage as ordered, or liabilities established under this subdivision, are additional support.
(b) If a party owes a basic support obligation for a child and is ordered to carry health care coverage for the child, and the other party is ordered to contribute to the carrying party's cost for coverage, the carrying party's basic support payment must be reduced by the amount of the contributing party's contribution.
(c) If a party owes a basic support obligation for a child and is ordered to contribute to the other party's cost for carrying health care coverage for the child, the contributing party's basic support payment must be increased by the amount of the contribution.
(d) If a party owes no basic support obligation for a child and is ordered to contribute to the other party's cost for carrying health care coverage for the child, the contributing party is subject to income withholding under section 517C.52 for the amount of the contribution to the carrying party's cost for health care coverage for the child.
(e) If a party's court-ordered health care coverage for the child terminates and the child is not enrolled in other health care coverage or public coverage, and a modification motion is not pending, the public authority may remove the offset to the basic support obligation or terminate income withholding instituted against a party under section 517C.52. The public authority must provide notice to the parties of the action taken.
(f) A party may contest the action of the public authority to remove the offset to the basic support obligation or terminate income withholding if the party makes a written request for a hearing within 30 days after receiving written notice. If a party makes a timely request for a hearing, the public authority must schedule a hearing and give written notice of the hearing to the parties at least 14 days before the hearing. The written notice of the hearing must be sent by mail to the parties' last known addresses. The hearing must be conducted in district court or in the expedited child support process if section 484.702 applies. The district court or child support magistrate must determine whether removal of the offset or termination of income withholding is appropriate and, if appropriate, the effective date for the removal or termination. If the party does not request a hearing, the court must order the offset or termination effective the first day of the month following termination of the child's health care coverage.
(g) A party who fails to carry court-ordered dependent health care coverage is liable for the child's uninsured medical expenses unless a court order provides otherwise. A party's failure to carry court-ordered coverage, or to provide other medical support as ordered, is a basis for modification of a support order under section 517C.28.
(h) Payments by the health carrier or employer for services rendered to the dependents that are directed to a party not owed reimbursement must be endorsed over to and forwarded to the vendor or appropriate party or the public authority. A party retaining insurance reimbursement not owed to the party is liable for the amount of the reimbursement.
Subd. 19. [COLLECTING UNREIMBURSED AND UNINSURED MEDICAL EXPENSES.] (a) A request for reimbursement of unreimbursed and uninsured medical expenses must be initiated within two years of the date that the unreimbursed or uninsured medical expenses were incurred. The time period in this paragraph does not apply if the location of the other parent is unknown.
(b) A party seeking reimbursement of unreimbursed and uninsured medical expenses must mail the other party written notice of intent to collect the expenses and an affidavit of health care expenses to the other party at the party's last known address. The affidavit of health care expenses must itemize and document the child's unreimbursed or uninsured medical expenses. A copy of the bills, receipts, and the insurance company's explanation of the benefits must be attached to the affidavit. The written notice must include a statement that the party has 30 days from the date of mailing the notice to pay in full, enter a payment agreement, or file a motion requesting a hearing contesting the matter. If the public authority provides support enforcement services, the written notice also must include a statement that the requesting party must submit the amount due to the public authority for collection.
(c) If, after 30 days, the other party has not paid in full, the parties are unable to enter a payment agreement, or the other party has not filed a motion contesting the matter, and:
(1) if the public authority provides support enforcement services, the requesting party must send the original affidavit, a copy of the written notice, and copies of the bills, receipts, and the insurance company's explanation of the benefits to the public authority. The public authority must serve the other party with a notice of intent to enforce unreimbursed and uninsured medical expenses and file an affidavit of service by mail with the district court administrator. The notice must provide that, unless the other party pays in full, enters into a payment agreement, or files a motion contesting the matter within 14 days of service of the notice, the public authority will commence enforcement under subdivision 20; or
(2) if the public authority does not provide support enforcement services, the requesting party may move the court for enforcement.
(d) If the party who receives notice under paragraph (b) or (c), clause (1), files a timely motion for a hearing
contesting the requested reimbursement, a hearing must be scheduled in district court or in the expedited child
support process if section 484.702 applies. The contesting party must provide the party seeking reimbursement and
the public authority, if the public authority provides support enforcement services, with written notice of the hearing
at least 14 days before the hearing by mailing notice of the hearing to the public authority and the party at the party's
last known address. The party seeking reimbursement must file the original affidavit of health care expenses with
the court at least five days before the hearing. Based upon the evidence presented, the court must determine liability for the expenses and order that the liable party is subject to enforcement of the expenses as medical support arrears under subdivision 20.
Subd. 20. [ENFORCING AN ORDER FOR MEDICAL SUPPORT ARREARS.] (a) If a party liable for unreimbursed and uninsured medical expenses under subdivision 19 owes a basic support obligation to the party seeking reimbursement of the expenses, the expenses must be collected as medical support arrears as follows:
(1) if income withholding under section 517C.52 is available, medical support arrears must be withheld from a liable party's income or wages pursuant to section 517C.60; or
(2) if income withholding under section 517C.52 is not available, a liable party must pay medical support arrears under the terms of a payment agreement under section 517C.71. If a liable party fails to enter into or comply with a payment agreement, the party seeking reimbursement or the public authority, if it provides support enforcement services, may schedule a hearing to have a court order payment. The party seeking reimbursement or the public authority must provide the liable party with written notice of the hearing at least 14 days before the hearing.
(b) If a party liable for unreimbursed and uninsured medical expenses does not owe a basic support obligation to the party seeking reimbursement, and the party seeking reimbursement owes the liable party child support arrears, the liable party's medical support arrears under subdivision 19 must be deducted from the amount of the child support arrears. If a liable party owes medical support arrears after deducting the amount owed from the amount of the child support arrears owed by the party seeking reimbursement, it must be collected as follows:
(1) if the party seeking reimbursement owes a basic support obligation to the liable party, the basic support obligation must be reduced by 20 percent until the medical support arrears are satisfied;
(2) if the party seeking reimbursement does not owe a basic support obligation to the liable party, the liable party's income must be subject to income withholding under section 517C.52 for an amount required under section 517C.71 until the medical support arrears are satisfied; or
(3) if the party seeking reimbursement does not owe a basic support obligation, and income withholding under section 517C.52 is not available, payment of the medical support arrears must be required under a payment agreement under section 517C.71.
Sec. 15. [517C.16] [PRESUMPTIVE CHILD SUPPORT WORKSHEET.]
The court must use the following worksheet to determine the presumptive child support order:
1. Monthly Income:
a. Obligor: .......
b. Obligee: .......
2. Parents' Combined Income: line 1a plus line 1b: .....
3. Parental Share:
a. Obligor: line 1a divided by line 2: .......
b. Obligee: line 1b divided by line 2: .......
4. Basic Needs:
a. Shared Responsibility:
Parents combined monthly income
x .09
+ 300
=....... (one child)
x 1.61 (two children)= .......
x 1.86 (three children)= .......
x 2.06 (four children)= .......
x 2.26 (five children)= .......
x 2.46 (six children)= .......
b. Obligor Proportionate Responsibility: line 3a multiplied by line 4a: .......
c. Obligee Proportionate Responsibility: line 3b multiplied by line 4a: .......
5. Basic Needs Obligation After Parenting Time Adjustment:
Parenting time division approximates joint physical custody:
Line 4b
- Line 4c
x .5
= .....
6. Child Care Needs (complete appropriate section):
a. Obligor paying for child care: cost of child care (.......) multiplied by line 3b: ....... (deduct from support obligation)
b. Obligee paying for child care or obligor's income exceeds eligibility requirements for basic sliding fee child care; not receiving basic sliding fee child care: cost of child care (.......) multiplied by line 3a: ........
c. Obligee receiving basic sliding fee child care: order reimbursement to the state in an amount equal to copayment obligor would make, based on line 1a, if obligor was receiving basic sliding fee child care: .......
7. Medical Support (complete appropriate section):
a. Obligor providing health care coverage: line 3b multiplied by cost of health care coverage: ....... (deduct from support obligation)
b. Obligee providing health care coverage: line 3a multiplied by cost of health care coverage: .......
c. Obligor and obligee do not have appropriate health care coverage: obligor must pay the lesser of the following amounts:
(i) the monthly premium amount obligor would pay if obligor's income meets the income eligibility requirements for public coverage: ....... or
(ii) five percent of obligor's monthly gross income, if obligor's income does not meet the eligibility requirements for public coverage: .......
8. Presumed child support amount: add (or subtract, when appropriate) amounts from lines 5, 6, and 7: .......
Sec. 16. [517C.17] [DEVIATIONS.]
Subdivision 1. [GENERAL FACTORS.] In addition to the child support guidelines, the court must take into consideration the following factors in setting or modifying child support or in determining whether to deviate from the guidelines:
(1) all earnings, income, and resources of the parents, including real and personal property, but excluding income from excess employment of the obligor or obligee that meets the criteria of section 517C.12, subdivision 5;
(2) the financial needs and resources, physical and emotional condition, and educational needs of the child to be supported;
(3) the standard of living the child would have enjoyed had the marriage not been dissolved, but recognizing that the parents now have separate households;
(4) which parent receives the income taxation dependency exemption and the financial benefit the parent receives from it;
(5) the parents' debts as provided in subdivision 2;
(6) the obligor's receipt of public assistance under the AFDC program formerly codified under sections 256.72 to 256.82 or 256B.01 to 256B.40 and chapter 256J or 256K; and
(7) the child spends between 33 and 45 percent of overnights with the obligor pursuant to a court order or with the consent of the obligee, which results in an increased financial burden on the obligor.
Subd. 2. [DEBT.] (a) In establishing or modifying a support obligation, the court may consider debts owed to private creditors, but only if:
(1) the right to support has not been assigned under section 256.741;
(2) the court determines that the debt was reasonably incurred for necessary support of the child or parent or for the necessary generation of income. If the debt was incurred for the necessary generation of income, the court may consider only the amount of debt that is essential to the continuing generation of income; and
(3) the party requesting a departure produces a sworn schedule of the debts, with supporting documentation, showing goods or services purchased, the recipient of them, the amount of the original debt, the outstanding balance, the monthly payment, and the number of months until the debt will be fully paid.
(b) A schedule prepared under paragraph (a), clause (3), must contain a statement that the debt will be fully paid after the number of months shown in the schedule, barring emergencies beyond the party's control.
(c) Any further departure below the guidelines that is based on a consideration of debts owed to private creditors must not exceed 18 months in duration. After 18 months the support must increase automatically to the level ordered by the court. This section does not prohibit one or more step increases in support to reflect debt retirement during the 18-month period.
(d) If payment of debt is ordered pursuant to this section, the payment must be ordered to be in the nature of child support.
Subd. 3. [EVIDENCE.] The court may receive evidence on the factors in this section to determine if the guidelines should be exceeded or modified in a particular case.
Subd. 4. [NO DEVIATION WHEN PAYMENTS ARE MADE TO THE PUBLIC AUTHORITY EXCEPT FOR EXTREME HARDSHIP.] If the child support payments are assigned to the public authority, the court may not deviate downward from the child support guidelines unless the court specifically finds that the failure to deviate downward would impose an extreme hardship on the obligor.
Subd. 5. [NO DEPARTURE BASED ON JOINT LEGAL CUSTODY.] An award of joint legal custody is not a reason for departure from the guidelines.
Sec. 17. [517C.18] [WRITTEN FINDINGS.]
Subdivision 1. [NO DEVIATION.] If the court does not deviate from the guidelines, the court must make written findings concerning the amount of the parties' income used as the basis for the guidelines calculation and any other significant evidentiary factors affecting the determination of child support.
Subd. 2. [DEVIATION.] (a) If the court deviates from the guidelines, the court must make written findings giving the amount of support calculated under the guidelines, the reasons for the deviation, and must specifically address the criteria in section 517C.17 and how the deviation serves the best interests of the child.
(b) The court may deviate from the guidelines if both parties agree and the court makes written findings that it is in the best interests of the child, except that in cases where child support payments are assigned to the public authority under section 256.741, the court may deviate downward only as provided in section 517C.17, subdivision 4. Nothing in this section prohibits the court from deviating in other cases.
Subd. 3. [WRITTEN FINDINGS REQUIRED IN EVERY CASE.] The provisions of this section apply whether or not the parties are each represented by independent counsel and have entered into a written agreement. The court must review stipulations presented to it for conformity to the guidelines. The court is not required to conduct a hearing, but the parties must provide the documentation of earnings required under section 517C.10.
Sec. 18. [517C.19] [GUIDELINES REVIEW.]
No later than 2002 and every four years after that, the department of human services must conduct a review of the child support guidelines.
Sec. 19. [517C.20] [EDUCATION TRUST FUND.]
The parties may agree to designate a sum of money above court-ordered child support as a trust fund for the costs of post-secondary education.
Sec. 20. [517C.25] [MODIFICATION; GENERAL.]
Subdivision 1. [AUTHORITY.] After a child support order is established, the court may, on motion of a party, modify the order respecting the amount and payment of support. The court may make an order respecting any matters it had authority to address in the original proceeding, except as otherwise provided in section 517C.29. A party or the public authority also may make a motion for contempt of court if the obligor is in arrears in support payments.
Subd. 2. [GUIDELINES REMAIN APPLICABLE.] On a motion for modification of support, the guidelines in this chapter remain applicable.
Subd. 3. [EVIDENTIARY HEARING NOT REQUIRED.] The court need not hold an evidentiary hearing on a motion for modification of child support.
Subd. 4. [FORM.] The state court administrator must prepare and make available to courts, obligors, and obligees a form to be submitted in support of a motion for a modification of child support or for contempt of court.
Sec. 21. [517C.26] [REOPENING AN ORDER.]
Subdivision 1. [FACTORS.] Upon the motion of a party, the court may rescind a child support order or judgment and may issue a new order or grant other relief as may be just for the following reasons:
(1) mistake, inadvertence, surprise, or excusable neglect;
(2) newly discovered evidence that could not have been discovered by due diligence in time to move for a new trial under the rules of civil procedure;
(3) fraud, whether denominated intrinsic or extrinsic, misrepresentation, or other misconduct of an adverse party;
(4) the judgment or order is void;
(5) the judgment has been satisfied, released, or discharged;
(6) the judgment is based on a prior order that has been reversed or otherwise vacated; or
(7) it is no longer equitable that the order should have prospective application.
Subd. 2. [PROCEDURE; EFFECT.] The motion must be made within a reasonable time, and, for a reason under subdivision 1, clause (1), (2), or (3), not more than one year after the judgment and decree, order, or proceeding was entered or taken. A motion under this section does not affect the finality of an order or suspend its operation. This section does not limit the power of a court to entertain an independent action to relieve a party from an order or proceeding or to grant relief to a party not actually personally notified as provided in the rules of civil procedure, or to set aside a judgment for fraud upon the court.
Sec. 22. [517C.27] [CHANGE IN CUSTODY OR PARENTING TIME.]
Subdivision 1. [OFFICIAL CHANGE IN CUSTODY.] If an obligee has been granted sole physical custody of a child, the child subsequently lives with the obligor, and temporary sole physical custody has been approved by the court or by a court-appointed referee, the court may suspend the obligor's child support obligation pending the final custody determination. The court's order denying the suspension of child support must include a written explanation of the reasons why continuation of the child support obligation would be in the best interests of the child.
Subd. 2. [UNOFFICIAL CHANGE IN CUSTODY.] The court may conclude that an obligor has satisfied a child support obligation by providing a home, care, and support for the child while the child is living with the obligor, if the court finds that the child was integrated into the family of the obligor with the consent of the obligee and child support payments were not assigned to the public authority.
Subd. 3. [30-DAY CHANGE.] A support order issued under this chapter may provide that during any period of time of 30 consecutive days or longer that the child is residing with the obligor, the amount of support otherwise due under the order may be reduced.
Sec. 23. [517C.28] [SUBSTANTIAL CHANGE IN CIRCUMSTANCES, EARNINGS, OR NEEDS.]
Subdivision 1. [FACTORS.] The terms of a child support order may be modified upon a showing of one or more of the following:
(1) substantially increased or decreased earnings of a party;
(2) substantially increased or decreased need of a party or the child that is the subject of these proceedings;
(3) receipt of assistance under the AFDC program formerly codified under sections 256.72 to 256.87 or 256B.01 to 256B.40 or chapter 256J or 256K;
(4) a change in the cost of living for either party, as measured by the federal Bureau of Statistics, that makes the terms unreasonable and unfair;
(5) extraordinary medical expenses of the child not provided for under section 517C.15;
(6) the addition of work-related or education-related child care expenses of the obligee or a substantial increase or decrease in existing work-related or education-related child care expenses; or
(7) upon the emancipation of a child if there is still a child under the order. A child support obligation for two or more children that is not a support obligation in a specific amount per child continues in the full amount until modified or until the emancipation of the last child for whose benefit the order was made.
Subd. 2. [PRESUMPTIONS.] It is presumed that there has been a substantial change in circumstances under subdivision 1 and the terms of a current support order are rebuttably presumed to be unreasonable and unfair if:
(1) when applied to the current circumstances of the parties, the presumptive child support amount derived under this chapter is at least 20 percent and at least $50 per month higher or lower than the current support order;
(2) the medical support provisions of the order established under section 517C.15 are not enforceable by the public authority or the obligee;
(3) health insurance coverage ordered under section 517C.15 is not available to the child for whom the order is established by the parent ordered to provide it; or
(4) the existing support obligation is in the form of a statement of percentage and not a specific dollar amount.
Subd. 3. [SUBSEQUENT CHILD.] The needs of a subsequent child must not be factored into a support guidelines calculation. The fact that an obligor had an additional child after the entry of a child support order is not grounds for a modification to decrease the amount of support owed. However, the fact that an obligor has a subsequent child must be considered in response to a request by an obligee for a modification to increase child support. In order to deviate from the presumptive support amount derived under this chapter to consider the needs of a subsequent child, the trial court must:
(1) find the obligor's total ability to contribute to dependent children, taking into account the obligor's income and reasonable expenses exclusive of child care. The obligor's expenses must be:
(i) reduced as appropriate to take into account contributions to those costs by other adults who share the obligor's current household; and
(ii) apportioned between the parent and a subsequent child with regard to shared benefits, including, but not limited to, housing and transportation;
(2) find the total needs of all the obligor's children, and if these needs are less than the obligor's ability to pay, the needs may become the obligor's child support obligation. When considering the needs of a subsequent child, the trial court must reduce those amounts as appropriate to take into account the ability to contribute to those needs by another parent of the child;
(3) make specific findings on the needs of the child or children who are the subject of the support order under consideration; and
(4) exercise discretion to fairly determine the current support obligation and the contribution left available for other children, considering that the support obligation being determined should be in an amount at least equal to the contribution for a subsequent child.
Sec. 24. [517C.29] [MODIFICATION EFFECTIVE DATE.]
Subdivision 1. [DATE OF MOTION DETERMINATIVE.] A modification of support, including interest that accrued pursuant to section 548.091, may be made effective no sooner than the date of service of notice of the motion for modification on the responding parties.
Subd. 2. [RETROACTIVE MODIFICATION PERMITTED ONLY IN LIMITED CIRCUMSTANCES.] Notwithstanding subdivision 1, modification may be applied to an earlier period if the court makes express findings that:
(1) the party seeking modification was precluded from serving a motion by reason of a significant physical or mental disability, a material misrepresentation of another party, or fraud upon the court; and the party seeking modification, when no longer precluded, promptly served a motion;
(2) the party seeking modification was a recipient of federal Supplemental Security Income (SSI), Title II Older Americans Insurance, Survivor's Disability Insurance (OASDI), other disability benefits, or public assistance based upon need during the period for which retroactive modification is sought; or
(3) the order the party seeks to amend was entered by default, the party shows good cause for not appearing, and the record contains no factual evidence, or clearly erroneous evidence, regarding the obligor's ability to pay.
Subd. 3. [CHILD CARE EXCEPTION.] The court may provide that a reduction in the amount allocated for child care expenses based on a substantial decrease in the expenses is effective as of the date the expenses decreased.
Sec. 25. [517C.30] [TERMINATION OF CHILD SUPPORT.]
Subdivision 1. [DEATH OF OBLIGOR.] Unless otherwise agreed in writing or expressly provided in the order, provisions for the support of a child are not terminated by the death of a parent obligated to support the child. When a parent obligated to pay support dies, the amount of support may be modified, revoked, or commuted to a lump sum payment, to the extent just and appropriate in the circumstances.
Subd. 2. [AUTOMATIC TERMINATION.] (a) Unless a court order provides otherwise, a child support obligation in a specific amount per child terminates automatically and without any action by the obligor to reduce, modify, or terminate the order upon the emancipation of the child.
(b) A child support obligation for two or more children that is not a support obligation in a specific amount per child continues in the full amount until the emancipation of the last child for whose benefit the order was made, or until further order of the court.
(c) The obligor may request a modification of the obligor's child support order upon the emancipation of a child if there are still minor children under the order. The child support obligation shall be determined based on the income of the parties at the time the modification is sought.
Sec. 26. [517C.31] [COST-OF-LIVING ADJUSTMENTS.]
Subdivision 1. [GENERAL.] An order for child support must provide for a biennial adjustment in the amount to be paid based on a change in the cost of living. Cost-of-living adjustments are compounded.
Subd. 2. [REQUEST FOR COST-OF-LIVING CLAUSE.] If an existing support order does not contain a cost-of-living clause, the obligee or public authority may request one. A motion for enforcement or modification of an existing support order must include a request for a cost-of-living clause if the existing support order does not contain one.
Subd. 3. [WAIVER.] A court may waive the requirement of the cost-of-living clause if it expressly finds that the obligor's occupation or income, or both, does not provide for cost-of-living adjustment or that the order for child support has a provision such as a step increase that has the effect of a cost-of-living clause.
Subd. 4. [INDEX; AMOUNT.] (a) An order that provides for a cost-of-living adjustment must specify the cost-of-living index to be applied. The court may use the Consumer Price Index for All Urban Consumers, Minneapolis-St. Paul (CPI-U), the Consumer Price Index for Wage Earners and Clerical, Minneapolis-St. Paul (CPI-W), or another cost-of-living index published by the department of labor that the court specifically finds is more appropriate.
(b) The court may increase the amount by more than the cost-of-living adjustment by agreement of the parties or by making further findings.
Subd. 5. [EFFECTIVE DATE.] If payment is made to the public authority, an adjustment is effective on May 1 of the year it is made. If payment is not made to the public authority, an adjustment may be made in any month but no adjustment may be made sooner than two years after the date of the dissolution decree. A support order must specify the effective date of cost-of-living adjustments.
Subd. 6. [CONDITIONS.] A cost-of-living adjustment may not be made unless:
(1) the support order requires it; and
(2) the obligee or public authority notifies the obligor of the adjustment by mail at the obligor's last known address at least 20 days before the effective date of the adjustment. The notice must inform the obligor of the effective date of the adjustment, the right to contest the adjustment, and the permissible grounds to contest the adjustment.
Subd. 7. [CONTEST; GROUNDS; HEARING.] (a) To contest a cost-of-living adjustment, an obligor must request a hearing before the effective date of the adjustment. The request for a hearing must be made to the court and served on the other parties. The obligor may make an ex parte motion to stay imposition of the adjustment pending outcome of the hearing.
(b) An obligor may contest a cost-of-living adjustment on the grounds that the obligor has an insufficient increase in income to fulfill the adjusted child support obligation.
(c) At a hearing, if the obligor establishes an insufficient increase in income to fulfill the adjusted child support obligation, the court may direct that all or part of the adjustment not take effect.
(d) At a hearing, if the obligor does not establish an insufficient increase in income, the adjustment must take effect as of the date originally specified in the support order.
Subd. 8. [FORM.] The department of human services must prepare and make available to the court and obligors a form to be submitted in support of a request for a hearing under this section.
Subd. 9. [RULES.] The commissioner of human services may promulgate rules for child support adjustments under this section in accordance with the rulemaking provisions of chapter 14.
Sec. 27. [517C.35] [ASSIGNMENT.]
Subdivision 1. [GENERAL.] The court must direct that all payments ordered for support be made to the public authority if the obligee is receiving or has applied for public assistance. Amounts received by the public authority greater than the amount granted to the obligee must be remitted to the obligee pursuant to federal requirements.
Subd. 2. [JUDGMENTS.] The court administrator must enter and docket a judgment obtained by operation of law under section 548.091, subdivision 1, in the name of the public authority to the extent that the obligation has been assigned. When arrears are reduced to judgment and section 548.091 is not applicable, the court must grant judgment in favor of, and in the name of, the public authority to the extent that the arrears are assigned. The public authority must file notice of an assignment with the court administrator, who must enter the notice in the docket. The public authority may then enforce a judgment entered before the assignment of rights as if the judgment were granted to it, and in its name, to the extent that the arrears in that judgment are assigned.
Subd. 3. [PROPERTY LIEN.] The court may make any child support order a lien or charge upon the property of the obligor, either at the time of the entry of the judgment or by subsequent order upon proper application.
Sec. 28. [517C.36] [PARTY STATUS.]
Subdivision 1. [WHEN A PARTY RECEIVES PUBLIC ASSISTANCE.] The public authority is joined as a party if the obligee is receiving, or subsequently applies for, public assistance and rights are assigned under section 256.741, subdivision 2.
Subd. 2. [NO PUBLIC ASSISTANCE; APPLICATION FOR SERVICES.] If the obligee is not receiving public assistance, but has applied for child support services, the public authority has a pecuniary interest, as well as an interest in the welfare of a child. The public authority may intervene as a matter of right in those cases to ensure that child support orders are obtained, enforced, and provide for an appropriate and accurate level of child, medical, and child care support. If the public authority participates in a case where the action taken by the public authority requires the use of an attorney's services, the public authority must be represented by an attorney consistent with the provisions in section 517C.37.
Sec. 29. [517C.37] [ROLE OF THE PUBLIC AUTHORITY.]
Subdivision 1. [PUBLIC AUTHORITY DOES NOT REPRESENT OBLIGOR OR OBLIGEE.] The provision of services under the child support enforcement program that includes services by an attorney or an attorney's representative employed by, under contract to, or representing the public authority does not create an attorney-client relationship with any party other than the public authority. Attorneys employed by or under contract with the public authority have an affirmative duty to inform applicants and recipients of services under the child support enforcement program that no attorney-client relationship exists between the attorney and the applicant or recipient. This section applies to all legal services provided by the child support enforcement program.
Subd. 2. [WRITTEN NOTICE.] The public authority must provide written notice to an applicant or recipient of services that:
(1) no attorney-client relationship exists between the attorney and the applicant or recipient;
(2) the rights of the individual as a subject of data are controlled by section 13.04, subdivision 2; and
(3) the individual has a right to have an attorney represent the individual.
Subd. 3. [POWER TO REPRESENT OTHER PUBLIC AUTHORITIES.] The public authority may act on behalf of a public authority from another jurisdiction. This includes the authority to represent the legal interests of, or execute documents on behalf of, the other public authority in connection with the establishment, enforcement, and collection of child support and collection on judgments.
Sec. 30. [517C.38] [SERVICE FEES.]
Subdivision 1. [OBLIGOR FEE.] When the public authority provides child support collection services either to a public assistance recipient or to a party who does not receive public assistance, the public authority may upon written notice to the obligor charge a monthly collection fee equivalent to the full monthly cost to the county of providing collection services, in addition to the amount of the child support ordered by the court. The fee must be deposited in the county general fund. The service fee assessed is limited to ten percent of the monthly court ordered child support and must not be assessed to obligors who are current in payment of the monthly court ordered child support.
Subd. 2. [OBLIGEE FEE.] An application fee of $25 must be paid by the person who applies for child support and maintenance collection services, except persons who are receiving public assistance as defined in section 256.741, persons who transfer from public assistance to nonpublic assistance status, and minor parents and parents enrolled in a public secondary school, area learning center, or alternative learning program approved by the commissioner of children, families, and learning.
Subd. 3. [TAX INTERCEPT FEES.] Fees assessed by state and federal tax agencies for collection of overdue support owed to or on behalf of a person not receiving public assistance must be imposed on the person for whom these services are provided. The public authority upon written notice to the obligee must assess a fee of $25 to the person not receiving public assistance for each successful federal tax interception. The fee must be withheld prior to the release of the funds received from each interception and must be deposited in the general fund.
Subd. 4. [COMPLIANCE WITH FEDERAL LAW.] The limitations of this section on the assessment of fees do not apply to the extent they are inconsistent with the requirements of federal law for receiving funds for the programs under Title IV-A and Title IV-D of the Social Security Act, United States Code, title 42, sections 601 to 613 and 651 to 662.
Sec. 31. [517C.39] [PUBLIC AUTHORITY PROCEDURES FOR CHILD SUPPORT AND PARENTAGE ORDERS.]
The public authority may use the provisions of sections 517C.40 to 517C.44 when support rights are assigned under section 256.741, subdivision 2, or when the public authority is providing services under an application for child support services.
Sec. 32. [517C.40] [NONATTORNEY EMPLOYEE DUTIES.]
Subdivision 1. [DUTIES PERFORMED UNDER SUPERVISION OF COUNTY ATTORNEY.] (a) The county attorney must review and approve as to form and content all pleadings and other legal documents prepared by nonattorney employees of the public authority for use in the expedited child support process.
(b) Under the direction of, and in consultation with, the county attorney, nonattorney employees of the public authority may perform the following legal duties:
(1) meet and confer with parties by mail, telephone, electronic, or other means regarding legal issues;
(2) explain to parties the purpose, procedure, and function of the expedited child support process and the role and authority of nonattorney employees of the public authority regarding legal issues;
(3) prepare pleadings, including, but not limited to, summonses and complaints, notices, motions, subpoenas, orders to show cause, proposed orders, administrative orders, and stipulations and agreements;
(4) issue administrative subpoenas;
(5) prepare judicial notices;
(6) negotiate settlement agreements;
(7) attend and participate as a witness in hearings and other proceedings and, if requested by the child support magistrate, present evidence, agreements and stipulations of the parties, and any other information deemed appropriate by the magistrate;
(8) participate in other activities and perform other duties delegated by the county attorney; and
(9) exercise other powers and perform other duties as permitted by statute or court rule.
Subd. 2. [DUTIES PERFORMED AUTONOMOUSLY.] Nonattorney employees of the public authority may perform the following duties without direction from the county attorney:
(1) gather information on behalf of the public authority;
(2) prepare financial worksheets;
(3) obtain income information from the department of economic security and other sources;
(4) serve documents on parties;
(5) file documents with the court;
(6) meet and confer with parties by mail, telephone, electronic, or other means regarding nonlegal issues;
(7) explain to parties the purpose, procedure, and function of the expedited child support process and the role and authority of nonattorney employees of the public authority regarding nonlegal issues; and
(8) perform other routine nonlegal duties as assigned.
Subd. 3. [PRACTICE OF LAW.] Performance of the duties prescribed in subdivisions 1 and 2 by nonattorney employees of the public authority does not constitute the unauthorized practice of law for purposes of section 481.02.
Sec. 33. [517C.41] [FINANCIAL WORKSHEET.]
Subdivision 1. [PREPARATION.] In cases involving establishment or modification of a child support order, a nonattorney employee of the public authority must prepare a financial worksheet that contains:
(1) names and addresses of the parties;
(2) social security numbers of the parties;
(3) number of members in each party's household and dependents of the parties;
(4) names and addresses of the parties' employers;
(5) gross income of the parties as defined in this chapter;
(6) amounts and sources of any other earnings and income of the parties;
(7) health insurance coverage of parties; and
(8) any other information relevant to the determination of child or medical support under this chapter.
Subd. 2. [INCOME INFORMATION.] In preparing the financial worksheet, the nonattorney employee of the public authority must obtain income information available to the public authority from the department of economic security and serve this information on the parties. The information must be filed with the court or child support magistrate at least five days before a hearing involving child support, medical support, or child care reimbursement issues.
Sec. 34. [517C.42] [NONCONTESTED MATTERS.]
Under the direction of the county attorney and based on agreement of the parties, nonattorney employees may prepare a stipulation, findings of fact, conclusions of law, and proposed order. The documents must be approved and signed by the county attorney as to form and content before submission to the court or child support magistrate for approval.
Sec. 35. [517C.43] [ADMINISTRATIVE AUTHORITY; PARENTAGE; SUPPORT.]
Subdivision 1. [POWERS.] The public authority may take the following actions relating to establishment of paternity or to establishment, modification, or enforcement of support orders, without the necessity of obtaining an order from a judicial or administrative tribunal:
(1) recognize and enforce orders of child support agencies of other states;
(2) upon request for genetic testing by a child, parent, or an alleged parent, and using the procedure in subdivision 2, order the child, parent, or alleged parent to submit to blood or genetic testing for the purpose of establishing paternity;
(3) subpoena financial or other information needed to establish, modify, or enforce a child support order and request sanctions for failure to respond to a subpoena;
(4) upon notice to the obligor, obligee, and the appropriate court, direct the obligor or other payor to change the payee to the central collections unit under section 517C.50;
(5) order income withholding of child support under section 517C.52;
(6) secure assets to satisfy a support debt or arrears by:
(i) intercepting or seizing periodic or lump-sum payments from state or local agencies, including reemployment compensation, workers' compensation payments, judgments, settlements, lotteries, and other lump-sum payments;
(ii) attaching and seizing assets of the obligor held in financial institutions or public or private retirement funds; and
(iii) imposing liens in accordance with section 548.091, and, in appropriate cases, forcing the sale of property and the distribution of proceeds;
(7) for the purpose of securing overdue support, increase the amount of the monthly support payments by an additional amount equal to 20 percent of the monthly support payment to include amounts for debts or arrears; and
(8) subpoena an employer or payor of funds to provide promptly information on the employment, compensation, and benefits of an individual employed by that employer as an employee or contractor, and to request sanctions for failure to respond to the subpoena as provided by law.
Subd. 2. [GENETIC TESTING.] (a) A request for genetic testing by a child, parent, or alleged parent must be supported by a sworn statement by the person requesting genetic testing that:
(1) alleges paternity and sets forth facts establishing a reasonable possibility of the requisite sexual contact between the parties; or
(2) denies paternity and sets forth facts establishing a reasonable possibility of the nonexistence of sexual contact between the alleged parties.
(b) The order for genetic tests may be served anywhere within the state and served outside the state in the same manner as prescribed by law for service of subpoenas issued by the district court of this state.
(c) If the child, parent, or alleged parent fails to comply with the genetic testing order, the public authority may seek to enforce that order in district court through a motion to compel testing.
(d) No results obtained through genetic testing done in response to an order issued under this section may be used in a criminal proceeding.
Subd. 3. [SUBPOENAS.] (a) Subpoenas may be served anywhere within the state and served outside the state in the same manner as prescribed by law for service of process of subpoenas issued by the district court of this state. When a subpoena under this subdivision is served on a third-party recordkeeper, written notice of the subpoena must be mailed to the person who is the subject of the subpoenaed material at the person's last known address within three days of the day the subpoena is served. This notice provision does not apply if there is reasonable cause to believe the giving of the notice may lead to interference with the production of the subpoenaed documents.
(b) A person served with a subpoena may make a written objection to the public authority or court before the time specified in the subpoena for compliance. The public authority or the court may cancel or modify the subpoena, if appropriate. The public authority must pay the reasonable costs of producing the documents, if requested.
(c) Subpoenas are enforceable in the same manner as subpoenas of the district court. Upon motion of the county attorney, the court may issue an order directing the production of the records. A person who fails to comply with the court order is subject to civil or criminal contempt of court.
Subd. 4. [DUE PROCESS.] The administrative actions under this section are subject to due process safeguards, including requirements for notice, opportunity to contest the action, and opportunity to appeal the order to a judge, judicial officer, or child support magistrate.
Sec. 36. [517C.44] [SHARING OF INFORMATION; DATA.]
Subdivision 1. [GENERAL.] The public authority may share available and relevant information on the parties in order to perform its duties under this chapter or under supreme court rules governing the expedited child support hearing process under section 484.702, subject to the limitations of subdivision 3, section 256.87, subdivision 8, and section 257.70.
Subd. 2. [DATA DISCLOSED TO AN ATTORNEY OF THE PUBLIC AUTHORITY.] (a) Data disclosed by an applicant for, or recipient of, child support services to an attorney employed by, or under contract with, the public authority is private data on an individual. However, the data may be disclosed under section 13.46, subdivision 2, clauses (1) to (3) and (6) to (19), and in order to obtain, modify, or enforce child support, medical support, and parentage determinations.
(b) An attorney employed by, or under contract with, the public authority may disclose additional information received from an applicant for, or recipient of, services for other purposes with the consent of the individual applicant for, or recipient of, child support services.
Subd. 3. [PROHIBITED DISCLOSURE.] In all proceedings under this chapter in which public assistance is assigned under section 256.741, or the public authority provides services to a party or parties to the proceedings, notwithstanding statutory or other authorization for the public authority to release private data on the location of a party to the action, information on the location of one party may not be released by the public authority to the other party if:
(1) the public authority has knowledge that a protective order with respect to the other party has been entered; or
(2) the public authority has reason to believe that the release of the information may result in physical or emotional harm to the other party.
Sec. 37. [517C.45] [SUFFICIENCY OF NOTICE.]
Automated child support notices sent by the public authority which do not require service are sufficient notice when issued and mailed by first class mail to the person's last known address.
Sec. 38. [517C.50] [CHILD SUPPORT PAYMENT CENTER; CENTRAL COLLECTIONS UNIT.]
Subdivision 1. [CREATION.] (a) The commissioner of human services must create and maintain a central collections unit to receive, process, and disburse payments, and to maintain a record of payments in cases when:
(1) the public authority is a party;
(2) the public authority provides child support enforcement services to a party; or
(3) payment is collected through income withholding.
(b) The commissioner may contract for services to carry out these provisions if the commissioner first meets and negotiates with the affected exclusive representatives.
Subd. 2. [CREDITOR COLLECTIONS.] The central collections unit under this section is not a third party under chapters 550, 552, and 571 for purposes of creditor collection efforts against child support and maintenance order obligors or obligees, and is not subject to creditor levy, attachment, or garnishment.
Sec. 39. [517C.51] [MANDATORY PAYMENT OF OBLIGATIONS TO CENTRAL COLLECTIONS UNIT.]
Subdivision 1. [GENERAL.] All payments described in section 517C.50 must be made to the central collections unit.
Subd. 2. [LOCAL PAYMENT; TRANSMITTAL.] The public authority must provide a location for obligors to pay child support in each local jurisdiction. When the public authority receives a payment it must transmit the funds to the central collections unit within one working day.
Subd. 3. [INCENTIVES.] Notwithstanding a rule to the contrary, incentives must be paid to the county providing services and maintaining the case to which the payment is applied. Incentive payments awarded for the collection of child support must be based solely upon payments processed by the central collections unit. Incentive payments received by the county under this subdivision must be used for county child support collection efforts.
Subd. 4. [ELECTRONIC FUNDS TRANSFER.] The central collections unit may receive and disburse funds electronically.
Subd. 5. [REQUIRED CONTENT OF ORDER.] A tribunal issuing an order that establishes or modifies a payment must issue an income withholding order in conformity with section 517C.52. The automatic income withholding order must include the name of the obligor, the obligor's social security number, the obligor's date of birth, and the name and address of the obligor's employer. The street mailing address and the electronic mail address for the central collections unit must be included in each automatic income withholding order issued by a tribunal.
Subd. 6. [TRANSMITTAL OF ORDER TO THE PUBLIC AUTHORITY BY THE TRIBUNAL.] The tribunal must transmit a copy of the order establishing or modifying the payment, and a copy of the automatic income withholding order, to the public authority within two working days of the approval of the order by the judge or child support magistrate or other person or entity authorized to sign the automatic withholding order.
Subd. 7. [TRANSMITTAL OF FUNDS FROM THE OBLIGOR OR PAYOR OF FUNDS TO THE CENTRAL COLLECTIONS UNIT.] The obligor or other payor of funds must identify the obligor on the check or remittance by name, payor number, and social security number, and must comply with section 517C.52.
Subd. 8. [SANCTION FOR CHECKS DRAWN ON INSUFFICIENT FUNDS.] A notice may be directed to a person or entity submitting a check drawn on insufficient funds stating that future payments must be made by cash or certified funds. The central collections unit and the public authority may refuse a check from a person or entity that has been given notice that payments must be in cash or certified funds.
Subd. 9. [ADMISSIBILITY OF PAYMENT RECORDS.] A copy of the record of payments maintained by the central collections unit is admissible evidence in all tribunals as proof of payments made through the central collections unit without the need of testimony to prove authenticity.
Subd. 10. [TRANSITION PROVISIONS.] (a) The commissioner of human services must develop a plan for the implementation of the central collections unit. The plan must require that payments be redirected to the central collections unit. Payments may be redirected in groups according to county of origin, county of payment, method of payment, type of case, or any other distinguishing factor designated by the commissioner.
(b) Notice that payments must be made to the central collections unit must be provided to the obligor and to the payor of funds at least 30 days before payments are redirected to the central collections unit. After the notice has been provided to the obligor or payor of funds, mailed payments received by the public authority must be forwarded to the central collections unit. A notice must be sent to the obligor or payor of funds stating that payment application may be delayed and must provide directions to submit future payments to the central collections unit.
Subd. 11. [COLLECTIONS UNIT RECOUPMENT ACCOUNT.] The commissioner of human services may establish a revolving account to cover funds issued in error due to insufficient funds or other reasons. Appropriations for this purpose and all recoupments against payments from the account must be deposited in the collections unit's recoupment account and are appropriated to the commissioner. An unexpended balance in the account does not cancel, but is available until expended.
Sec. 40. [517C.52] [INCOME WITHHOLDING; GENERAL.]
Subdivision 1. [APPLICATION.] Sections 517C.52 to 517C.62 apply to all support orders issued by a court or an administrative tribunal and orders for or notices of withholding issued by the public authority according to section 517C.43, subdivision 1, clause (5).
Subd. 2. [ORDER.] (a) Every support order must address income withholding. Whenever a support order is initially entered or modified, the full amount of the support order must be withheld from the income of the obligor and forwarded to the public authority. Sections 517C.51 to 517C.62 apply regardless of the source of income of the person obligated to pay the child support.
(b) A payor of funds must implement income withholding according to sections 517C.51 to 517C.62 upon receipt of an order for or notice of withholding. The notice of withholding must be on a form provided by the commissioner of human services.
Subd. 3. [NOTICE; INCOME WITHHOLDING AND COLLECTION SERVICES.] (a) The commissioner of human services must prepare and make available to the courts a notice of services that explains child support and maintenance collection services available through the public authority, including income withholding. Upon receiving a petition for dissolution of marriage or legal separation, the court administrator must promptly send the notice of services to the petitioner and respondent at the addresses stated in the petition.
(b) Upon receipt of a support order requiring income withholding, a petitioner or respondent, who is not a recipient of public assistance and does not receive child support services from the public authority, must apply to the public authority for either full child support collection services or for income withholding only services.
(c) For those persons applying for income withholding only services, a monthly service fee of $15 must be charged to the obligor. This fee is in addition to the amount of the support order and must be withheld through income withholding. The public authority must explain the service options in this section to the affected parties and encourage the application for full child support collection services.
Subd. 4. [CONTRACT FOR SERVICE.] To carry out income withholding, the public authority may contract for services, including the use of electronic funds transfer.
Subd. 5. [ELECTRONIC TRANSMISSION.] Orders or notices for income withholding may be transmitted for enforcement purposes by electronic means.
Sec. 41. [517C.53] [WAIVER OF INCOME WITHHOLDING.]
(a) If child support is not assigned to the public authority, the court may waive income withholding requirements if it finds there are no arrears as of the date of the hearing and:
(1) one party demonstrates and the court finds there is good cause to waive the requirements of sections 517C.51 to 517C.62 or to terminate an order for or notice of income withholding previously entered; or
(2) all parties reach an agreement and the agreement is approved by the court after a finding that the agreement is likely to result in regular and timely payments. The court's findings waiving the requirements of this paragraph must include a written explanation of the reasons why income withholding would not be in the best interests of the child.
(b) In addition to the other requirements in this section, if the case involves a modification of support, the court must make a finding that support has been timely made.
(c) If the court waives income withholding, the obligee or obligor may at any time request subsequent income withholding under section 517C.59.
Sec. 42. [517C.54] [PAYOR OF FUNDS RESPONSIBILITIES.]
Subdivision 1. [ACTIVATION.] An order for or notice of withholding is binding on a payor of funds upon receipt. Withholding must begin no later than the first pay period that occurs after 14 days following the date of receipt of the order for or notice of withholding. In the case of a financial institution, preauthorized transfers must occur in accordance with a court-ordered payment schedule.
Subd. 2. [PROCEDURE.] A payor of funds must withhold from the income payable to the obligor
the amount specified in the order or notice of withholding and amounts specified under sections 517C.58 and
517C.63 and must remit the amounts withheld to the public authority within seven business days of the date the
obligor is paid the
remainder of the income. The payor of funds must include with the remittance the social security number of the obligor, the case type indicator as provided by the public authority, and the date the obligor is paid the remainder of the income. The obligor is considered to have paid the amount withheld as of the date the obligor received the remainder of the income. A payor of funds may combine all amounts withheld from one pay period into one payment to each public authority, but must separately identify each obligor making payment.
Subd. 3. [RETALIATION PROHIBITED.] A payor of funds must not discharge, or refuse to hire, or otherwise discipline an employee as a result of wage or salary withholding authorized by this chapter.
Subd. 4. [UPDATED ORDERS.] If more than one order for or notice of withholding exists involving the same obligor and child, the public authority must enforce the most recent order or notice. An order for or notice of withholding that was previously implemented according to this chapter ends as of the date of the most recent order. The public authority must notify the payor of funds to withhold under the most recent withholding order or notice.
Subd. 5. [NOTIFICATION OF TERMINATION.] When an order for or notice of withholding is in effect and the obligor's employment is terminated, the obligor and the payor of funds must notify the public authority of the termination within ten days of the termination date. The termination notice must include the obligor's home address and the name and address of the obligor's new payor of funds, if known.
Subd. 6. [EXPENSES.] A payor of funds may deduct $1 from the obligor's remaining salary for each payment made pursuant to an order for or notice of withholding under this chapter to cover the expenses of withholding.
Sec. 43. [517C.55] [LUMP-SUM PAYMENTS.]
Subdivision 1. [APPLICATION.] (a) This section applies to lump-sum payments of $500 or more including, but not limited to, severance pay, accumulated sick pay, vacation pay, bonuses, commissions, or other pay or benefits.
(b) The Consumer Credit Protection Act, United States Code, title 15, section 1673(b), does not apply to lump-sum payments.
Subd. 2. [PAYOR OF FUNDS RESPONSIBILITIES.] Before transmitting a lump-sum payment to an obligor, a payor of funds who has been served with an order for or notice of income withholding under this chapter must:
(1) notify the public authority of the lump-sum payment that is to be paid to the obligor; and
(2) hold the lump-sum payment for 30 days after the date the lump-sum payment would otherwise have been paid to the obligor, notwithstanding sections 176.221, 176.225, 176.521, 181.08, 181.101, 181.11, 181.13, and 181.145, and Minnesota Rules, part 1415.2000, subpart 10.
Subd. 3. [PUBLIC AUTHORITY OPTIONS.] (a) The public authority may direct the payor of funds to pay the lump-sum payment, up to the amount of judgments or arrears, to the public authority if:
(1) a judgment entered pursuant to section 548.091, subdivision 1a, exists against the obligor, or other support arrears exist; and
(2) a portion of the judgment or arrears remains unpaid.
(b) If no judgment or arrears exist, the public authority may seek a court order directing the payor of funds to transmit all or a portion of the lump-sum payment to the public authority for future support. To obtain a court order under this paragraph, the public authority must show a past willful nonpayment of support by the obligor.
Sec. 44. [517C.56] [PAYOR OF FUNDS LIABILITY.]
Subdivision 1. [LIABILITY TO OBLIGEE.] A payor of funds is liable to the obligee for amounts required to be withheld. A payor of funds that fails to withhold or transfer funds in accordance with this chapter is liable to the obligee for interest on the funds at the rate applicable to judgments under section 549.09, computed from the date the funds were required to be withheld or transferred. A payor of funds is liable for reasonable attorney fees of the obligee or public authority incurred in enforcing the liability under this paragraph. A payor of funds that has failed to comply with the requirements of sections 517C.51 to 517C.62 is subject to contempt sanctions under section 517C.57. If the payor of funds is an employer or independent contractor and violates this subdivision, a court may award the obligor twice the wages lost as a result of this violation. If a court finds a payor of funds violated this subdivision, the court must impose a civil fine of not less than $500.
Subd. 2. [NONLIABILITY FOR COMPLIANCE.] A payor of funds is not subject to civil liability to any individual or agency for taking action in compliance with an income withholding order or notice of withholding that appears regular on its face according to this chapter or chapter 518C.
Sec. 45. [517C.57] [EMPLOYER CONTEMPT.]
Subdivision 1. [ORDERS BINDING.] Notices or orders for income withholding or medical support issued pursuant to this chapter are binding on the employer, trustee, or other payor of funds after the order or notice has been transmitted to the employer, trustee, or payor of funds.
Subd. 2. [CONTEMPT ACTION.] (a) An obligee or the public authority may initiate a contempt action against an employer, trustee, or payor of funds, within the action that created the support obligation, by serving an order to show cause upon the employer, trustee, or payor of funds.
(b) The employer, trustee, or payor of funds is presumed to be in contempt:
(1) if the employer, trustee, or payor of funds has intentionally failed to withhold support after receiving the order or notice for income withholding or notice of enforcement of medical support; or
(2) upon presentation of pay stubs or similar documentation showing that the employer, trustee, or payor of funds withheld support and demonstrating that the employer, trustee, or payor of funds intentionally failed to remit support to the public authority.
Subd. 3. [SANCTIONS.] The employer, trustee, or payor of funds is liable to the obligee or the public authority for amounts required to be withheld that were not paid. The court may enter judgment against the employer, trustee, or payor of funds for support not withheld or remitted. An employer, trustee, or payor of funds found guilty of contempt must be punished by a fine of not more than $250 as provided in chapter 588. The court may also impose other contempt sanctions authorized under chapter 588.
Sec. 46. [517C.58] [PRIORITY OF INCOME WITHHOLDING ORDERS; MAXIMUM WITHHOLDING.]
Subdivision 1. [PRIORITY.] (a) An order for or notice of withholding under this chapter or execution or garnishment upon a judgment for child support arrears or preadjudicated expenses has priority over an attachment, execution, garnishment, or wage assignment and is not subject to the statutory limitations on amounts levied against the income of the obligor. Amounts withheld from an employee's income must not exceed the maximum permitted under the Consumer Credit Protection Act, United States Code, title 15, section 1673(b).
Subd. 2. [MULTIPLE ORDERS.] If a single employee is subject to multiple withholding orders or multiple notices of withholding for the support of more than one child, the payor of funds must comply with all of the orders or notices to the extent that the total amount withheld from the obligor's income does not exceed the limits imposed under the Consumer Credit Protection Act, United States Code, title 15, section 1673(b), giving priority to amounts designated in each order or notice as current support as follows:
(1) if the total of the amounts designated in the orders for or notices of withholding as current support exceeds the amount available for income withholding, the payor of funds must allocate to each order or notice an amount for current support equal to the amount designated in that order or notice as current support, divided by the total of the amounts designated in the orders or notices as current support, multiplied by the amount of the income available for income withholding; and
(2) if the total of the amounts designated in the orders for or notices of withholding as current support does not exceed the amount available for income withholding, the payor of funds must pay the amounts designated as current support, and must allocate to each order or notice an amount for past due support, equal to the amount designated in that order or notice as past due support, divided by the total of the amounts designated in the orders or notices as past due support, multiplied by the amount of income remaining available for income withholding after the payment of current support.
Sec. 47. [517C.59] [SUBSEQUENT INCOME WITHHOLDING.]
Subdivision 1. [APPLICATION.] This section applies to support orders that do not contain provisions for income withholding.
Subd. 2. [WHEN THE PUBLIC AUTHORITY IS A PARTY.] If the public authority is a party, income withholding under this section takes effect without prior judicial notice to the obligor and without the need for judicial or administrative hearing. Withholding must be initiated when:
(1) the obligor requests it in writing to the public authority;
(2) the obligee or obligor serves on the public authority a copy of the notice of income withholding, a copy of the court's order, an application, and the fee to use the public authority's collection services; or
(3) the public authority commences withholding under section 517C.43.
Subd. 3. [WHEN THE PUBLIC AUTHORITY IS NOT A PARTY.] If the public authority is not a party, income withholding under this section must be initiated when an obligee requests it by making a written motion to the court and the court finds that previous support has not been paid on a timely consistent basis or that the obligor has threatened expressly or otherwise to stop or reduce payments.
Subd. 4. [NOTICE.] Within two days after the public authority commences withholding under this section, the public authority must send to the obligor at the obligor's last known address, notice that withholding has commenced. The notice must include the information provided to the payor of funds in the notice of withholding.
Subd. 5. [CONTEST.] (a) The obligor may contest withholding under this section on the limited grounds that the withholding or the amount withheld is improper due to mistake of fact. An obligor who chooses to contest the withholding must do so no later than 15 days after the employer commences withholding, by doing all of the following:
(1) file a request for an expedited child support hearing under section 484.702, and include in the request the alleged mistake of fact;
(2) serve a copy of the request for contested hearing upon the public authority and the obligee; and
(3) secure a date for the contested hearing no later than 45 days after receiving notice that withholding has commenced.
(b) The income withholding must remain in place while the obligor contests the withholding.
(c) If the court finds a mistake in the amount of the arrears to be withheld, the court must continue the income withholding, but it must correct the amount of the arrears to be withheld.
Sec. 48. [517C.60] [INCOME WITHHOLDING; ARREARS ORDER.]
(a) In addition to ordering income withholding for current support the court may order the payor of funds to withhold amounts to satisfy the obligor's previous arrears in support order payments. Use of this remedy does not exclude the use of other remedies to enforce judgments. The employer or payor of funds must withhold from the obligor's income an additional amount equal to 20 percent of the monthly child support obligation until the arrears are paid.
(b) Notwithstanding any law to the contrary, funds from income sources included in section 517C.12, subdivision 1, whether periodic or lump-sum, are not exempt from attachment or execution upon a judgment for child support arrears.
(c) Absent an order to the contrary, if arrears exist at the time a support order would otherwise terminate, income withholding continues in effect or may be implemented in an amount equal to the support order plus an additional 20 percent of the monthly child support obligation, until all arrears have been paid in full.
Sec. 49. [517C.61] [INTERSTATE INCOME WITHHOLDING.]
(a) Upon receipt of an order for support entered in another state and the specified documentation from an authorized agency, the public authority must implement income withholding. A payor of funds in this state must withhold income under court orders for withholding issued by other states or territories.
(b) An employer receiving an income withholding notice from another state must withhold and distribute the funds as directed in the withholding notice and must apply the law of the obligor's principal place of employment when determining:
(1) the employer's fee for processing an income withholding notice;
(2) the maximum amount permitted to be withheld from the obligor's income; and
(3) deadlines for implementing and forwarding the child support payment.
(c) An obligor may contest withholding under this section pursuant to section 518C.506.
Sec. 50. [517C.62] [ORDER TERMINATING INCOME WITHHOLDING.]
Subdivision 1. [GENERAL PROCEDURE.] (a) An order terminating income withholding must specify the effective date of the order and reference the initial order or decree that establishes the support obligation. An order terminating income withholding must be entered if:
(1) the obligor serves written notice of the application for termination of income withholding by mail upon the obligee at the obligee's last known mailing address, and a duplicate copy of the application is served on the public authority;
(2) the application for termination of income withholding specifies the event that terminates the support obligation, the effective date of the termination of the support obligation, and the applicable provisions of the order or decree that established the support obligation; and
(3) the application includes the complete name of the obligor's payor of funds, the business mailing address, the court action and court file number, and the support and collections file number, if known.
(b) The obligee or the public authority may request a contested hearing on the issue of whether income withholding should continue. The request must be made within 20 days of receiving an application for termination of income withholding. The request must clearly specify the basis for continuing income withholding. The obligee or public authority may make an ex parte motion to stay the service of an order terminating income withholding upon the obligor's payor of funds pending the outcome of the contested hearing.
Subd. 2. [TERMINATION BY THE PUBLIC AUTHORITY.] (a) If the public authority determines that income withholding is no longer applicable, the public authority must notify the obligee and the obligor of intent to terminate income withholding.
(b) Five days after notification to the obligee and obligor, the public authority must issue a notice to the payor of funds terminating income withholding. A court order is not required unless the obligee has requested an expedited child support hearing under section 484.702.
Sec. 51. [517C.63] [CHILD SUPPORT DEPOSIT ACCOUNT; FINANCIAL INSTITUTIONS.]
Subdivision 1. [APPLICATION.] If income withholding is ineffective due to the obligor's method of obtaining income, the court must order the obligor to identify a child support deposit account owned solely by the obligor, or to establish an account, in a financial institution located in this state for the purpose of depositing court-ordered child support payments. The court must order the obligor to execute an agreement with the appropriate public authority for preauthorized transfers from the obligor's child support account payable to an account of the public authority. The court must order the obligor to disclose to the court all deposit accounts owned by the obligor in whole or in part in any financial institution. The court may order the obligor to disclose to the court the opening or closing of any deposit account owned in whole or in part by the obligor within 30 days of the opening or closing. The court may order the obligor to execute an agreement with the appropriate public authority for preauthorized transfers from any deposit account owned in whole or in part by the obligor to the obligor's child support deposit account if necessary to satisfy court-ordered child support payments. The court may order a financial institution to disclose to the court the account number and any other information regarding accounts owned in whole or in part by the obligor. An obligor who fails to comply with this subdivision, fails to deposit funds in at least one deposit account sufficient to pay court-ordered child support, or stops payment or revokes authorization of a preauthorized transfer is subject to contempt of court procedures under chapter 588.
Subd. 2. [TRANSFERS.] A financial institution must execute preauthorized transfers for the deposit accounts of the obligor in the amount specified in the order and amounts required under this section as directed by the public authority. A financial institution is liable to the obligee if funds in any of the obligor's deposit accounts identified in the court order equal the amount stated in the preauthorization agreement but are not transferred by the financial institution in accordance with the agreement.
Sec. 52. [517C.64] [ESCROW ACCOUNT.]
Subdivision 1. [ESTABLISHMENT.] (a) When determining or modifying a support order the court must not order income withholding otherwise required under sections 517C.51 to 517C.62 if:
(1) the court finds there are no arrears as of the date of the court hearing;
(2) the obligor establishes a savings account for a sum equal to two months of the monthly child support obligation; and
(3) the obligor provides proof of the existence of the account to the court and the public authority prior to the issuance of the order. Proof of the establishment must include the financial institution name and address, account number, and the amount of deposit.
(b) An account established under paragraph (a) must:
(1) be at a financial institution;
(2) bear interest; and
(3) authorize the public authority as the sole drawer of funds.
Subd. 2. [DEFAULT.] (a) If a child support payment is ten days or more past due, the obligee may transmit a notice of default to the public authority and apply for child support collection services. The notice must be verified by the obligee and must contain the title of the action, the court file number, the full name and address of the obligee, the name and last known address of the obligor, the obligor's last known employer or other payor of funds, the date of the first unpaid amount, the date of the last unpaid amount, and the total amount unpaid.
(b) Within three working days of receiving a notice of default, the public authority must:
(1) withdraw the funds held at the financial institution under this section; and
(2) send a copy of the notice of default and a notice of intent to implement income withholding by mail to the obligor at the obligor's last known address.
(c) The notice of intent to implement income withholding must state that the support order will be served on the obligor's employer or payor of funds unless within 15 days of the date of the notice the obligor:
(1) requests a hearing on the issue of whether payment was in default as of the date of the notice of default; and
(2) serves notice of the hearing request on the public authority and the obligee.
Subd. 3. [DUTIES OF THE PUBLIC AUTHORITY.] (a) Within three working days of withdrawing sums under subdivision 2, the public authority must remit all amounts not assigned to the public authority to the obligee as current support.
(b) The public authority must also serve a copy of the court's order and the provisions of sections 517C.51 to 517C.62 and this section on the obligor's employer or other payor of funds unless the obligor requests a hearing under subdivision 2, paragraph (c).
(c) The public authority must inform the obligor's employer or other payor of funds of the date the next support payment is due. Income withholding must begin on that date and must reflect the total credits of principal and interest amounts received from the escrow account.
Subd. 4. [HEARING.] (a) If the obligor requests a hearing under subdivision 2, paragraph (c), the court must hold a hearing within 30 days of the date of the notice of default under subdivision 2, paragraph (a).
(b) If the court finds that there was a default, the court must order the immediate withholding of support from the obligor's income.
(c) If the court finds that there was no default, the court must order the reestablishment of the escrow account by either the obligee or obligor and must not order income withholding.
Subd. 5. [TERMINATION OF ESCROW ACCOUNT.] (a) When the support obligation ends under the terms of the order or decree establishing the obligation and the sum held under this section has not otherwise been released, the public authority must release the sum and interest to the obligor if the obligor transmits a notice of termination to the public authority. The notice must be verified by the obligor and must indicate:
(2) the court file number;
(3) the full name and address of the obligee;
(4) the event that ends the support obligation;
(5) the effective date of the termination of support obligation; and
(6) the applicable provisions of the order or decree that established the support obligation.
(b) The public authority must send a copy of the notice of termination to the obligee.
(c) The obligee or the public authority may request a hearing on the issues of whether the support obligation continues and whether the escrow account should continue. The request must be made and served on the other parties within 20 days of receiving a notice of termination.
Sec. 53. [517C.65] [TRUSTEE.]
Subdivision 1. [APPOINTMENT.] Upon its own motion or upon motion of either party, the court may appoint a trustee, when it is deemed expedient, to receive money ordered to be paid as child support for remittance to the person entitled to receive the payments. The trustee may also receive property that is part of an award for division of marital property. The trustee must hold the property in trust to invest and pay over the income in the manner the court directs, or to pay over the principal sum in the proportions and at the times the court orders. In all cases, the court must consider the situation and circumstances of the recipient, and the children, if any. The trust must give a bond, as the court requires, for the faithful performance of the trust. If it appears that the recipient of money ordered to be paid as support will receive public assistance, the court must appoint the public authority as trustee.
Subd. 2. [RECORDS.] The trustee must maintain records listing the amount of payments, the date when payments are required to be made, and the names and addresses of the parties affected by the order.
Subd. 3. [COMMUNICATION.] The parties affected by the order must inform the trustee of a change of address or of other conditions that may affect the administration of the order.
Subd. 4. [LATE PAYMENT.] If a required support payment is ten days or more overdue, the trustee must send the obligor notice of the arrears by first class mail. If payment of the sum due is not received by the trustee within ten days after sending notice, the trustee must certify the amount due to the public authority, whenever that authority is not the trustee. If the public authority refers the arrears to the county attorney, the county attorney may initiate enforcement proceedings against the obligor for support.
Sec. 54. [517C.66] [OVERPAYMENTS.]
If child support is not assigned under section 256.741, and an obligor has overpaid a child support obligation because of a modification or error in the amount owed, the public authority must:
(1) apply the amount of the overpayment to reduce the amount of child support arrears or debts owed to the obligee; and
(2) if an overpayment exists after the reduction of arrears or debt, reduce the amount of the child support remitted to the obligee by an amount no greater than 20 percent of the current monthly support obligation and remit this amount to the obligor until the overpayment is reduced to zero.
Sec. 55. [517C.67] [ALTERNATE NOTICE OF COURT ORDER.]
Whenever this chapter requires service of a court's order on an employer, union, or payor of funds, service of a verified notice of order may be made in lieu of the order. The verified notice must contain the title of the action, the name of the court, the court file number, the date of the court order, and must recite the operative provisions of the order.
Sec. 56. [517C.70] [CHILD SUPPORT AND PARENTING TIME ARE INDEPENDENT.]
(a) Failure by a party to make support payments is not a defense to:
(1) interference with parenting time rights; or
(2) removing a child from this state without the permission of the court or of a parent who has been given parenting time.
(b) Interference with parenting time rights or taking a child from this state without permission of the court or of a parent who has been given parenting time is not a defense to nonpayment of support.
(c) If a party fails to make support payments, interferes with parenting time rights, or removes a child from this state without permission of the court or of a parent who has been given parenting time, the other party may petition the court for an appropriate order.
Sec. 57. [517C.705] [SIX-MONTH REVIEW.]
A decree or order that establishes child support rights and obligations must contain a review date six months after its entry according to section 517A.25.
Sec. 58. [517C.71] [PAYMENT AGREEMENTS.]
Subdivision 1. [GENERAL REQUIREMENTS.] An obligor who has child support arrears may enter into a payment agreement that addresses payment of both current and overdue support. Payment agreements must:
(1) be in writing;
(2) address both current support and arrears; and
(3) be approved by the court, a child support magistrate, or the public authority.
Subd. 2. [CONSIDERATIONS.] In proposing or approving proposed payment agreements for purposes of this chapter, the court, a child support magistrate, or the public authority must take into consideration the amount of the arrears, the amount of the current support order, any pending request for modification, and the earnings of the obligor. The court, child support magistrate, or public authority must consider the individual financial circumstances of each obligor in evaluating the obligor's ability to pay a proposed payment agreement and must propose a reasonable payment agreement tailored to the individual financial circumstances of each obligor.
Sec. 59. [517C.72] [SEEK EMPLOYMENT ORDERS.]
Subdivision 1. [COURT ORDER.] (a) When the public authority is enforcing a support order, the public authority may seek a court order requiring an obligor to seek employment if:
(1) employment of the obligor cannot be verified;
(2) the obligor has child support arrears amounting to at least three times the obligor's total monthly support payments; and
(3) the obligor is not in compliance with a payment agreement.
(b) Upon proper notice to the obligor, the court may enter a seek employment order if it finds that the obligor has not provided proof of gainful employment and has not consented to an order for income withholding or entered into a payment agreement.
Subd. 2. [CONTENTS OF ORDER.] The order to seek employment must:
(1) order that the obligor seek employment within a determinate amount of time;
(2) order that the obligor file with the public authority a weekly report of at least five new attempts to find employment or of having found employment. The report must include the names, addresses, and telephone numbers of the employers or businesses with whom the obligor attempted to obtain employment and the name of the individual contact at each employer or business to whom the obligor made application for employment or to whom an inquiry was directed;
(3) notify the obligor that failure to comply with the order is evidence of a willful failure to pay support under section 517C.74;
(4) order that the obligor provide the public authority with verification of any reason for noncompliance with the order; and
(5) specify the duration of the order, not to exceed three months.
Sec. 60. [517C.73] [ORDER FOR COMMUNITY SERVICES.]
If the court finds that the obligor earns $400 or less per month and does not have the ability to provide support based on the guidelines and factors in this chapter, the court may order the obligor to perform community services to fulfill the obligor's support obligation. In ordering community services under this section, the court must consider whether the obligor has the physical capability to perform community services, and must order community services that are appropriate for the obligor's abilities.
Sec. 61. [517C.74] [CONTEMPT PROCEEDINGS FOR NONPAYMENT OF SUPPORT.]
Subdivision 1. [GROUNDS.] If a person against whom an order or decree for support has been entered under this chapter, chapter 256, or a comparable law from another jurisdiction, has child support arrears amounting to at least three times the obligor's total monthly support obligation and is not in compliance with a payment agreement, the person may be cited and punished by the court for contempt under chapter 588 or this section. Failure to comply with a seek employment order entered under section 517C.72 is evidence of willful failure to pay support.
Subd. 2. [COURT OPTIONS.] (a) If a court cites a person for contempt under this section, and the obligor lives in a county that contracts with the commissioner of human services under section 256.997, the court may order the performance of community service work up to 32 hours per week for six weeks for each finding of contempt if the obligor:
(1) is able to work full time;
(2) works an average of less than 32 hours per week; and
(3) has actual weekly gross income averaging less than 40 times the federal minimum hourly wage under United States Code, title 29, section 206(a)(1), or is voluntarily earning less than the obligor has the ability to earn, as determined by the court.
(b) An obligor is presumed to be able to work full time. The obligor has the burden of proving inability to work full time.
Subd. 3. [RELEASE.] A person ordered to do community service work under subdivision 2 may, during the six-week period, apply to the court, an administrative law judge, or the public authority to be released from the community service work requirement if the person:
(1) provides proof to the court, an administrative law judge, or the public authority that the person is gainfully employed and submits to an order for income withholding under section 518.6111;
(2) enters into a payment agreement; or
(3) provides proof to the court, an administrative law judge, or the public authority that, after entry of the order, the person's circumstances have so changed that the person is no longer able to fulfill the terms of the community service order.
Subd. 4. [CONTINUING OBLIGATIONS.] The performance of community service work does not relieve an obligor of a current support obligation or arrears.
Sec. 62. [517C.745] [SECURITY; SEQUESTRATION; CONTEMPT.]
(a) In all cases when support payments are ordered, the court may require sufficient security to be given for the payment of them according to the terms of the order. Upon neglect or refusal to give security, or upon failure to pay the support, the court may sequester the obligor's personal estate and the rents and profits of real estate of the obligor, and appoint a receiver of them. The court may cause the personal estate and the rents and profits of the real estate to be applied according to the terms of the order.
(b) The obligor is presumed to have an income from a source sufficient to pay the support order. A child support order constitutes prima facie evidence that the obligor has the ability to pay the award. If the obligor disobeys the order, it is prima facie evidence of contempt. The court may cite the obligor for contempt under this section, section 517C.74, or chapter 588.
Sec. 63. [517C.75] [DRIVER'S LICENSE SUSPENSION.]
Subdivision 1. [FACTORS WARRANTING SUSPENSION.] An obligor's driver's license must be suspended if:
(1) the obligor has child support arrears amounting to at least three times the obligor's total monthly support obligation and the obligor is not in compliance with a payment agreement; or
(2) the obligor has failed, after receiving notice, to comply with a subpoena relating to a paternity or child support proceeding.
Subd. 2. [MOTION; HEARING; PROCEDURE.] (a) Upon the motion of a party, the court must order the commissioner of public safety to suspend an obligor's driver's license if the court finds that a factor in subdivision 1 exists.
(b) The motion must be properly served and there must be an opportunity for a hearing pursuant to court rules. If a hearing is requested, the obligor must be served written notice of the time and date of the hearing at least 14 days prior to the hearing. The notice must specify the allegations against the obligor. The notice may be served personally or by mail.
(c) The court's order must be stayed for 90 days in order to allow the obligor to enter into a payment agreement. If the obligor has not entered into or is not in compliance with a payment agreement after the 90 days expire, the court's order becomes effective and the commissioner of public safety must suspend the obligor's driver's license.
(d) An obligee may not make a motion under this section within 12 months of a denial of a previous motion under this section.
(e) At a hearing regarding the obligor's failure to comply with a subpoena, the only issues to be considered are mistake of fact and whether the obligor received the subpoena.
Subd. 3. [SUSPENSION INITIATED BY THE PUBLIC AUTHORITY.] (a) The public authority must direct the commissioner of public safety to suspend an obligor's driver's license if the public authority determines that a factor in subdivision 1 exists.
(b) At least 90 days before directing the suspension of a driver's license the public authority must attempt to notify the obligor that it intends to seek suspension and that the obligor must request a hearing within 30 days in order to contest the suspension. The notice must be in writing and mailed to the obligor at the obligor's last known address.
(c) If the obligor makes a written request for a hearing within 30 days, a court hearing must be held. The public authority must then make a motion to the court and schedule a hearing. The matter must then proceed under subdivision 2.
(d) If the public authority does not receive a request for a hearing within 30 days and the obligor does not enter into a payment agreement within 90 days of the date of the notice, the public authority must direct the commissioner of public safety to suspend the obligor's driver's license.
Subd. 4. [FAILURE TO REMAIN IN COMPLIANCE WITH A PAYMENT AGREEMENT.] The license of an obligor who fails to remain in compliance with a payment agreement may be suspended. Notice to the obligor of intent to suspend under this subdivision must be served by first class mail at the obligor's last known address and must include a notice of hearing. The notice must be served upon the obligor not less than ten days before the date of the hearing. If the obligor appears at the hearing and the judge determines that the obligor has failed to comply with a payment agreement, the judge must notify the department of public safety to suspend the obligor's license. If the obligor fails to appear at the hearing, the public authority may notify the department of public safety to suspend the obligor's license.
Subd. 5. [REINSTATEMENT.] An obligor whose driver's license or operating privileges are suspended may provide proof to the public authority that the obligor is in compliance with all payment agreements. Within 15 days of the receipt of that proof, the public authority must inform the commissioner of public safety that the obligor's driver's license or operating privileges should no longer be suspended.
Subd. 6. [REPORT TO THE LEGISLATURE.] On January 15, 2003, and every two years after that, the commissioner of human services must submit a report to the legislature that identifies the following information relevant to the implementation of this section:
(1) the number of child support obligors notified of an intent to suspend a driver's license;
(2) the amount collected in payments from the child support obligors notified of an intent to suspend a driver's license;
(3) the number of cases paid in full and payment agreements executed in response to notification of an intent to suspend a driver's license;
(4) the number of cases in which there has been notification and no payments or payment agreements;
(5) the number of driver's licenses suspended; and
(6) the cost of implementation and operation of the requirements of this section.
Sec. 64. [517C.76] [OCCUPATIONAL LICENSE SUSPENSION.]
Subdivision 1. [FACTORS WARRANTING SUSPENSION.] An obligor's occupational license must be suspended if:
(1) the obligor has child support arrears amounting to at least three times the obligor's total monthly support obligation and the obligor is not in compliance with a payment agreement; or
(2) the obligor has failed, after receiving notice, to comply with a subpoena relating to a paternity or child support proceeding.
Subd. 2. [MOTION; HEARING; PROCEDURE.] (a) Upon the motion of a party, the court must order a licensing board or agency to suspend an obligor's license under section 214.101 if the court finds that a factor in subdivision 1 exists.
(b) The motion must be properly served and there must be an opportunity for a hearing pursuant to court rules. If a hearing is requested, the obligor must be served written notice of the time and date of the hearing at least 14 days prior to the hearing. The notice must specify the allegations against the obligor. The notice may be served personally or by mail.
(c) The court's order must be stayed for 90 days in order to allow the obligor to enter into a payment agreement. If the obligor has not entered into or is not in compliance with a payment agreement after the 90 days expire, the court's order becomes effective.
(d) At a hearing regarding the obligor's failure to comply with a subpoena, the only issues to be considered are mistake of fact and whether the obligor received the subpoena.
(e) If the obligor is a licensed attorney, the court must report the matter to the lawyer's professional responsibility board for appropriate action in accordance with the Rules of Professional Conduct.
Subd. 3. [SUSPENSION INITIATED BY THE PUBLIC AUTHORITY.] (a) The public authority must direct a licensing board or agency to suspend an obligor's license under section 214.101 if the public authority determines that the factors in subdivision 1 exist.
(b) At least 90 days before directing the suspension of an occupational license, the public authority must attempt to notify the obligor that it intends to seek suspension and that the obligor must request a hearing within 30 days in order to contest the suspension. The notice must be in writing and mailed to the obligor at the obligor's last known address.
(c) If the obligor makes a written request for a hearing within 30 days a court hearing must be held. The public authority must then make a motion to the court and schedule a hearing. The matter must then proceed under subdivision 2.
(d) If the public authority does not receive a request for a hearing within 30 days and the obligor does not execute a payment agreement within 90 days of the date of the notice, the public authority must direct the licensing board or agency to suspend the obligor's license.
(e) If the obligor is a licensed attorney, the public authority may report the matter to the lawyer's professional responsibility board for appropriate action in accordance with the Rules of Professional Conduct.
Subd. 4. [FAILURE TO REMAIN IN COMPLIANCE WITH AN APPROVED PAYMENT AGREEMENT.] The license of an obligor who fails to remain in compliance with a payment agreement may be suspended. Notice to the obligor of an intent to suspend under this subdivision must be served by first class mail at the obligor's last known address and must include a notice of hearing. The notice must be served upon the obligor not less than ten days before the date of the hearing. If the obligor appears at the hearing and the judge determines that the obligor has failed to comply with a payment agreement, the judge must notify the licensing board or agency to suspend the obligor's license. If the obligor fails to appear at the hearing, the public authority may notify the licensing board or agency to suspend the obligor's license.
Subd. 5. [REINSTATEMENT.] An obligor whose occupational license is suspended may provide proof to the public authority that the obligor is in compliance with all payment agreements. Within 15 days of the receipt of that proof, the public authority must inform the licensing board or agency or the lawyer's professional responsibility board that the obligor is no longer ineligible for license issuance, reinstatement, or renewal under this section.
Sec. 65. [517C.77] [DATA ON SUSPENSIONS FOR SUPPORT ARREARS.]
Notwithstanding section 13.03, subdivision 4, paragraph (c), data on an occupational license suspension under section 517C.76 or a driver's license suspension under section 517C.75, that are transferred by the department of human services to respectively the department of public safety or a state, county, or municipal occupational licensing agency must have the same classification at the department of public safety or other receiving agency under section 13.02, as other license suspension data held by the receiving agency. The transfer of the data does not affect the classification of the data in the hands of the department of human services.
Sec. 66. [517C.78] [RECREATIONAL LICENSE SUSPENSION.]
Subdivision 1. [MOTION; FACTORS.] (a) A party may make a motion to suspend the recreational license or licenses of an obligor. The motion must be served on the obligor in person or by first class mail at the obligor's last known address. There must be an opportunity for a hearing. The court may direct the commissioner of natural resources to suspend or bar receipt of the obligor's recreational license or licenses if it finds that:
(1) the obligor has child support arrears amounting to at least six times the obligor's total monthly support payments and the obligor is not in compliance with a payment agreement; or
(2) the obligor has failed, after receiving notice, to comply with a subpoena relating to a paternity or child support proceeding.
(b) Prior to utilizing this section, the court must find that other substantial enforcement mechanisms have been attempted but have not resulted in compliance.
Subd. 2. [AFFECTED LICENSES.] For purposes of this section, a recreational license includes all licenses, permits, and stamps issued centrally by the commissioner of natural resources under sections 97B.301, 97B.401, 97B.501, 97B.515, 97B.601, 97B.715, 97B.721, 97B.801, 97C.301, and 97C.305.
Subd. 3. [REINSTATEMENT.] An obligor whose recreational license has been suspended or barred may provide proof to the court that the obligor is in compliance with all payment agreements. Within 15 days of receipt of that proof, the court must notify the commissioner of natural resources that the obligor's recreational license or licenses must no longer be suspended nor may receipt be barred.
Sec. 67. [517C.79] [MOTOR VEHICLE LIEN.]
Subdivision 1. [FACTORS WARRANTING LIEN.] A lien must be entered on any motor vehicle certificate of title subsequently issued in the name of an obligor if the obligor has child support arrears amounting to at least three times the obligor's total monthly support obligation and the obligor is not in compliance with a payment agreement.
Subd. 2. [MOTION; HEARING; PROCEDURE.] (a) Upon the motion of a party, if the court finds that the factors in subdivision 1 exist, the court must order the commissioner of public safety to enter a lien in the name of the obligee or in the name of the state of Minnesota, as appropriate, under section 168A.05, subdivision 8, on any motor vehicle certificate of title subsequently issued in the name of the obligor.
(b) The motion must be properly served and there must be an opportunity for a hearing pursuant to court rules. If a hearing is requested, the obligor must be served written notice of the time and date of the hearing at least 14 days prior to the hearing. The notice must specify the allegations against the obligor. The notice may be served personally or by mail.
(c) The court's order must be stayed for 90 days in order to allow the obligor to enter into a payment agreement. If the obligor has not entered into or is not in compliance with a payment agreement after the 90 days expires, the court's order becomes effective and the commissioner of public safety must record the lien on any motor vehicle certificate of title subsequently issued in the name of the obligor.
Subd. 3. [LIEN INITIATED BY THE PUBLIC AUTHORITY.] (a) If the public authority determines that the factors in subdivision 1 exist, the public authority must direct the commissioner of public safety to enter a lien in the name of the obligee or in the name of the state of Minnesota, as appropriate, under section 168A.05, subdivision 8, on any motor vehicle certificate of title subsequently issued in the name of the obligor.
(b) At least 90 days before directing the entry of a lien under this section the public authority must attempt to notify the obligor that it intends to record a lien and that the obligor must request a hearing within 30 days in order to contest the action. The notice must be in writing and mailed to the obligor at the obligor's last known address.
(c) If the obligor makes a written request for a hearing within 30 days a court hearing must be held. The public authority must then make a motion to the court and schedule a hearing. The matter must then proceed under subdivision 2.
(d) If the public authority does not receive a request for a hearing within 30 days and the obligor does not enter into a payment agreement within 90 days of the date of the notice, the public authority must direct the commissioner of public safety to record the lien.
Subd. 4. [RELEASE.] An obligor may provide proof to the court or the public authority that the obligor is in compliance with all payment agreements or that the value of the motor vehicle is less than the exemption provided under section 550.37. Within 15 days of the receipt of that proof, the court or public authority must either:
(1) execute a release of security interest under section 168A.20, subdivision 4, and mail or deliver the release to the owner or other authorized person; or
(2) in instances where a lien has not yet been entered, direct the commissioner of public safety not to enter a lien on any motor vehicle certificate of title subsequently issued in the name of the obligor.
Subd. 5. [NONEXEMPT VALUE.] A lien recorded against a motor vehicle certificate of title under this section and section 168A.05, subdivision 8, attaches only to the nonexempt value of the motor vehicle as determined in accordance with section 550.37. The value of a motor vehicle must be determined in accordance with the retail value described in the National Auto Dealers Association Official Used Car Guide, Midwest Edition, for the current year, or in accordance with the purchase price as defined in section 297B.01, subdivision 8.
Sec. 68. [517C.80] [PUBLICATION OF NAMES OF DELINQUENT CHILD SUPPORT OBLIGORS.]
Subdivision 1. [MAKING NAMES PUBLIC.] At least once each year, the commissioner of human services, in consultation with the attorney general, must publish a list of the names and other identifying information of no more than 25 persons who:
(1) are child support obligors;
(2) are at least $10,000 in arrears;
(3) are not in compliance with a payment agreement regarding both current support and arrears approved by the court, a child support magistrate, or the public authority;
(4) cannot currently be located by the public authority for the purposes of enforcing a support order; and
(5) have not made a support payment except tax intercept payments, in the preceding 12 months.
Subd. 2. [IDENTIFYING INFORMATION.] Identifying information may include the obligor's name, last known address, amount owed, date of birth, photograph, the number of children for whom support is owed, and any additional information about the obligor that would assist in identifying or locating the obligor. The commissioner and attorney general may use posters, media presentations, electronic technology, and other means that the commissioner and attorney general determine are appropriate for dissemination of the information, including publication on the Internet. The commissioner and attorney general may make any or all of the identifying information regarding these persons public. Information regarding an obligor who meets the criteria in this section will only be made public subsequent to that person's selection by the commissioner and attorney general.
Subd. 3. [NOTICE.] (a) Before making public the name of the obligor, the department of human services must send a notice to the obligor's last known address stating the department's intention to make public information on the obligor. The notice must also provide an opportunity to have the obligor's name removed from the list by paying the arrears or by entering into an agreement to pay the arrears, or by providing information to the public authority that there is good cause not to make the information public. The notice must include the final date when the payment or agreement can be accepted.
(b) The department of human services must obtain the written consent of the obligee to make the name of the obligor public.
Subd. 4. [NAMES PUBLISHED IN ERROR.] If the commissioner makes a name public under subdivision 1 in error, the commissioner must also offer to publish a printed retraction and a public apology acknowledging that the name was made public in error. If the person whose name was made public in error elects the public retraction and apology, the retraction and apology must appear in the same medium and the same format as the original notice where the name was listed in error. In addition to the right of a public retraction and apology, a person whose name was made public in error has a civil action for damages caused by the error.
Sec. 69. [517C.81] [COLLECTION; ARREARS.]
Subdivision 1. [COLLECTION OF ARREARS TO CONTINUE AFTER CHILD IS EMANCIPATED.] Remedies available for the collection and enforcement of support in this chapter and chapters 256, 257, and 518C also apply to cases in which a child for whom support is owed is emancipated and the obligor owes past support or has accumulated arrears. Child support arrears under this section include arrears for child support, medical support, child care, pregnancy and birth expenses, and unreimbursed medical expenses as defined in section 517C.15.
Subd. 2. [RETROACTIVE APPLICATION.] This section applies retroactively to support arrears that accrued on or before the date of enactment and to all arrears accruing after the date of enactment.
Subd. 3. [LIMITATIONS.] Past support or pregnancy and confinement expenses ordered for which the obligor has specific court ordered terms for repayment may not be enforced using drivers' and occupational or professional license suspension, credit bureau reporting, and additional income withholding under section 517C.60, unless the obligor fails to comply with the terms of the court order for repayment.
Sec. 70. [517C.82] [CASE REVIEWER.]
The commissioner must make a case reviewer available to obligors and obligees. The reviewer must be available to answer questions concerning the collection process and to review the collection activity taken. A reviewer who reasonably believes that a particular action being taken is unreasonable or unfair may make recommendations to the commissioner and the applicable county in regard to the collection action.
Sec. 71. [517C.83] [ATTORNEY FEES; COLLECTION COSTS.]
Subdivision 1. [GENERAL.] (a) A child support obligee is entitled to recover from the obligor reasonable attorney fees and other collection costs incurred to enforce a child support judgment, as provided in this section.
(b) In order to recover collection costs under this section, the arrears must be at least $500 and must be at least 90 days past due. In addition, the arrears must be a docketed judgment under sections 548.09 and 548.091.
(c) If the obligor pays in full the judgment rendered under section 548.091 within 20 days of receipt of notice of entry of judgment, the obligee is not entitled to recover attorney fees or collection costs under this section.
Subd. 2. [ENFORCEMENT.] Attorney fees and collection costs obtained under this section are considered child support and entitled to the applicable remedies for collection and enforcement of child support.
Subd. 3. [NOTICE TO PUBLIC AUTHORITY.] If the public authority is a party to a case, an obligee must provide written notice to the public authority within five days of:
(1) contracting with an attorney or collection entity to enforce a child support judgment; or
(2) receipting payments received on a child support judgment.
Subd. 4. [NOTICE TO OBLIGOR; HEARING.] (a) The obligee must serve notice of the obligee's intent to recover attorney fees and collections costs by certified or registered mail on the obligor at the obligor's last known address. The notice must include an itemization of the attorney fees and collection costs being sought by the obligee. It must inform the obligor that the fees and costs will become an additional judgment for child support unless, within 20 days of mailing of the notice, the obligor requests a hearing:
(1) on the reasonableness of the fees and costs; or
(2) to contest the child support judgment on grounds limited to mistake of fact.
(b) If the obligor requests a hearing, the only issues to be determined by the court are:
(1) whether the attorney fees or collection costs were reasonably incurred by the obligee for the enforcement of a child support judgment against the obligor; or
(2) the validity of the child support judgment on grounds limited to mistake of fact.
(c) The fees and costs may not exceed 30 percent of the arrears. The court may modify the amount of attorney fees and costs as appropriate and must enter judgment accordingly.
(d) If the obligor fails to request a hearing within 20 days of mailing of the notice under paragraph (a), the amount of the attorney fees or collection costs requested by the obligee in the notice automatically becomes an additional judgment for child support.
Subd. 5. [FORMS.] The commissioner of human services must prepare and make available to the court and the parties forms for use in providing for notice and requesting a hearing under this section.
Sec. 72. [517C.99] [REQUIRED NOTICES.]
Subdivision 1. [REQUIREMENT.] Every court order or judgment and decree that provides for child support, spousal maintenance, custody, or parenting time must contain certain notices as set out in subdivision 3. The information in the notices must be concisely stated in plain language. The notices must be in clearly legible print, but may not exceed two pages. An order or judgment and decree without the notice remains subject to all statutes. The court may waive all or part of the notice required under subdivision 3 relating to change of address notification and similar information if it finds it is necessary to protect the welfare of a party or child.
Subd. 2. [COPIES OF LAWS AND FORMS.] The district court administrator must make copies of the sections referred to in subdivision 3 available at no charge and must provide forms to request or contest attorney fees, collection costs, and cost-of-living increases.
Subd. 3. [CONTENTS.] The required notices must be substantially as follows:
IMPORTANT NOTICE
1. PAYMENTS TO PUBLIC AUTHORITY
According to Minnesota Statutes, section 517C.35, payments ordered for maintenance and support must be paid to the public authority as long as the person entitled to receive the payments is receiving or has applied for public assistance or has applied for support and maintenance collection services. MAIL PAYMENTS TO:
2. DEPRIVING ANOTHER OF CUSTODIAL OR PARENTAL RIGHTS -- A FELONY
A person may be charged with a felony who conceals a minor child or takes, obtains, retains, or fails to return a minor child from or to the child's parent (or person with custodial or visitation rights), according to Minnesota Statutes, section 609.26. A copy of that section is available from any district court clerk.
3. RULES OF SUPPORT, MAINTENANCE, VISITATION
(a) Payment of support or spousal maintenance is to be as ordered, and the giving of gifts or making purchases of food, clothing, and the like will not fulfill the obligation.
(b) Payment of support must be made as it becomes due, and failure to secure or denial of rights of visitation is NOT an excuse for nonpayment, but the aggrieved party must seek relief through a proper motion filed with the court.
(c) Nonpayment of support is not grounds to deny visitation. The party entitled to receive support may apply for support and collection services, file a contempt motion, or obtain a judgment as provided in Minnesota Statutes, section 548.091.
(d) The payment of support or spousal maintenance takes priority over payment of debts and other obligations.
(e) A party who accepts additional obligations of support does so with the full knowledge of the party's prior obligation under this proceeding.
(f) Child support or maintenance is based on annual income, and it is the responsibility of a person with seasonal employment to budget income so that payments are made throughout the year as ordered.
(g) If there is a layoff or a pay reduction, support may be reduced as of the time of the layoff or pay reduction if a motion to reduce the support is served and filed with the court at that time, but any such reduction must be ordered by the court. The court is not permitted to reduce support retroactively, except as provided in Minnesota Statutes, section 517C.29.
(h) Reasonable visitation guidelines are contained in Appendix B, which is available from the court administrator.
4. PARENTAL RIGHTS REGARDING INFORMATION AND CONTACT
Unless otherwise provided by the court:
(a) Each party has the right of access to and the right to receive copies of school, medical, dental, religious training, and other important records and information about the minor children. Each party has the right of access to information regarding health or dental insurance available to the minor children. Presentation of a copy of this order to the custodian of a record or other information about the minor children constitutes sufficient authorization for the release of the record or information to the requesting party.
(b) Each party must keep the other informed as to the name and address of the school of attendance of the minor children. Each party has the right to be informed by school officials about the children's welfare, educational progress and status, and to attend school and parent teacher conferences. The school is not required to hold a separate conference for each party.
(c) In case of an accident or serious illness of a minor child, each party must notify the other party of the accident or illness, and the name of the health care provider and the place of treatment.
(d) Each party has the right of reasonable access and telephone contact with the minor children.
5. WAGE AND INCOME DEDUCTION OF SUPPORT AND MAINTENANCE
Child support and/or spousal maintenance may be withheld from income, with or without notice to the person obligated to pay, when the conditions of Minnesota Statutes, sections 517C.51 to 517C.62, have been met. A copy of those sections is available from any district court clerk.
6. CHANGE OF ADDRESS OR RESIDENCE
Unless otherwise ordered, each party must notify the other party, the court, and the public authority, if applicable, of the following information within ten days of any change: the residential and mailing address, telephone number, driver's license number, social security number, and name, address, and telephone number of the employer.
7. COST-OF-LIVING INCREASE OF SUPPORT AND MAINTENANCE
Child support and/or spousal maintenance may be adjusted every two years based upon a change in the cost-of-living (using Department of Labor Consumer Price Index .........., unless otherwise specified in this order) when the conditions of Minnesota Statutes, section 517C.31, are met. Cost-of-living increases are compounded. A copy of Minnesota Statutes, section 517C.31, and forms necessary to request or contest a cost-of-living increase are available from any district court clerk.
8. JUDGMENTS FOR UNPAID SUPPORT
If a person fails to make a child support payment, the payment owed becomes a judgment against the person responsible to make the payment by operation of law on or after the date the payment is due, and the person entitled to receive the payment or the public authority may obtain entry and docketing of the judgment WITHOUT NOTICE to the person responsible to make the payment under Minnesota Statutes, section 548.091. Interest begins to accrue on a payment or installment of child support whenever the unpaid amount due is greater than the current support due, according to Minnesota Statutes, section 548.091, subdivision 1a.
9. JUDGMENTS FOR UNPAID MAINTENANCE
A judgment for unpaid spousal maintenance may be entered when the conditions of Minnesota Statutes,
section 548.091, are met. A copy of that section is available from any district court clerk.
10. ATTORNEY FEES AND COLLECTION COSTS FOR ENFORCEMENT OF CHILD SUPPORT
A judgment for attorney fees and other collection costs incurred in enforcing a child support order will be entered against the person responsible to pay support when the conditions of section 517C.07, are met. A copy of section 517C.07 and forms necessary to request or contest these attorney fees and collection costs are available from any district court clerk.
11. VISITATION EXPEDITOR PROCESS
On request of either party or on its own motion, the court may appoint a visitation expeditor to resolve visitation disputes under Minnesota Statutes, section 518.1751. A copy of that section and a description of the expeditor process is available from any district court clerk.
12. VISITATION REMEDIES AND PENALTIES
Remedies and penalties for the wrongful denial of visitation rights are available under Minnesota Statutes, section 518.175, subdivision 6. These include compensatory visitation, civil penalties, bond requirements, contempt, and reversal of custody. A copy of that subdivision and forms for requesting relief are available from any district court clerk.
Sec. 73. [INSTRUCTION TO REVISOR.]
The revisor of statutes must correct internal cross-references to sections that are now in Minnesota Statutes, chapter 517C, throughout Minnesota Statutes and Minnesota Rules.
Sec. 74. [REPEALER.]
Minnesota Statutes 2000, sections 518.111; 518.171; 518.255; 518.54, subdivisions 2, 4a, 13, and 14; 518.551; 518.5513; 518.553; 518.57; 518.575; 518.585; 518.5851; 518.5852; 518.5853; 518.61; 518.6111; 518.614; 518.615; 518.616; 518.617; 518.618; 518.6195; and 518.66, are repealed.
Sec. 75. [EFFECTIVE DATE.]
This act is effective July 1, 2001."
Renumber the sections in sequence and correct the internal references
Delete the title and insert:
"A bill for an act relating to the operation of state government; crime prevention and judiciary finance; appropriating money for the judicial branch, public defense, human rights, corrections, public safety, crime victims, and related purposes; establishing and expanding grant programs, task forces, and pilot projects; requiring reports and studies; transferring, modifying, and expanding responsibility for various governmental responsibilities; providing procedures and policies for integrated criminal justice information systems; adopting various provisions relating to corrections; imposing, clarifying, and expanding certain criminal and civil provisions and penalties; making certain changes related to sex offenders and sex offender registration; providing for state funding of certain programs and personnel; abolishing the office of the ombudsman for corrections; eliminating the Camp Ripley weekend camp program; increasing certain fees and modifying the allocation of certain fees; establishing a theft prevention advisory board; establishing a felony-level penalty for driving while impaired; modifying certain policies and procedures relating to domestic violence; making technical changes to the driving while impaired laws; reforming and recodifying the law relating to marriage dissolution, child custody, child support, maintenance, and property division; clarifying certain medical support bonus incentive provisions; making style and form changes; amending Minnesota Statutes 2000, sections 2.724, subdivision 3; 8.16, subdivision 1; 13.87, by adding a subdivision; 15A.083, subdivision 4; 169A.03, subdivision 12, by adding subdivisions; 169A.20, subdivision 3;
169A.25; 169A.26; 169A.27; 169A.275, subdivisions 3, 5; 169A.277, subdivision 2; 169A.28, subdivision 2; 169A.283, subdivision 1; 169A.37, subdivision 1; 169A.40, subdivision 3; 169A.41, subdivision 2; 169A.51, subdivision 7; 169A.54, subdivision 6; 169A.60, subdivisions 1, 13, 14; 169A.63, subdivision 1; 171.09; 171.29, subdivision 2; 241.272, subdivision 6; 242.192; 243.166, subdivisions 1, 3, 4a, 6; 243.167, subdivision 1; 243.51, subdivisions 1, 3; 256.9791; 299A.75, subdivision 1, by adding subdivisions; 299C.10, subdivision 1; 299C.11; 299C.147, subdivision 2; 299C.65, subdivisions 1, 2; 299F.058, subdivision 2; 343.20, by adding subdivisions; 343.21, subdivisions 9, 10, by adding a subdivision; 518.002; 518.003, subdivisions 1, 3; 518.005; 518.01; 518.02; 518.03; 518.04; 518.05; 518.055; 518.06; 518.07; 518.09; 518.10; 518.11; 518.12; 518.13; 518.131; 518.14, subdivision 1; 518.148; 518.155; 518.156; 518.157, subdivisions 1, 2, 3, 5, 6; 518.158, subdivisions 2, 4; 518.165; 518.166; 518.167, subdivisions 3, 4, 5; 518.168; 518.1705, subdivision 6; 518.175, subdivisions 1, 1a, 2, 3, 5, 6, 7, 8; 518.1751, subdivisions 1b, 2, 2a, 2b, 2c, 3; 518.176; 518.177; 518.178; 518.179, subdivision 1; 518.18; 518.24; 518.25; 518.54, subdivisions 1, 5, 6, 7, 8; 518.55; 518.552; 518.58; 518.581; 518.582; 518.612; 518.619; 518.62; 518.64, subdivisions 1, 2; 518.641; 518.642; 518.646; 518.65; 518B.01, subdivisions 2, 3, 6, 14; 609.02, by adding a subdivision; 609.035, subdivision 2; 609.117; 609.224, subdivisions 2, 4; 609.2242, subdivisions 2, 4; 609.487, subdivision 4; 609.495, subdivisions 1, 3; 609.521; 609.748, subdivisions 6, 8; 609.749, subdivisions 4, 5; 611.23; 611.272; 611A.201, subdivision 2; 611A.32, by adding a subdivision; 611A.74, subdivisions 1, 1a; 617.247, subdivisions 3, 4; 626.52; 626.55, subdivision 1; 629.471, subdivision 2; 629.72; Laws 1996, chapter 408, article 2, section 16; proposing coding for new law in Minnesota Statutes, chapters 8; 169A; 299A; 299C; 518; 518B; 609; 626; proposing coding for new law as Minnesota Statutes, chapters 517A; 517B; 517C; repealing Minnesota Statutes 2000, sections 169A.275, subdivision 4; 241.41; 241.42; 241.43; 241.44; 241.441; 241.45; 243.166, subdivision 10; 518.111; 518.17; 518.171; 518.185; 518.255; 518.54, subdivisions 2, 4a, 13, 14; 518.551; 518.5513; 518.553; 518.57; 518.575; 518.585; 518.5851; 518.5852; 518.5853; 518.61; 518.6111; 518.614; 518.615; 518.616; 518.617; 518.618; 518.6195; 518.64, subdivisions 4, 4a, 5; 518.66; 609.2244, subdivision 4; 626.55, subdivision 2."
With the recommendation that when so amended the bill pass.
The report was adopted.
Sykora from the Committee on Family and Early Childhood Education Finance to which was referred:
H. F. No. 1515, A bill for an act relating to family and early childhood education finance; consolidating MFIP and basic sliding fee child care assistance programs; modifying income eligibility; amending Minnesota Statutes 2000, sections 119B.011, subdivisions 5, 11, 12, 15, 18, by adding subdivisions; 119B.02, subdivisions 1, 2, 3, by adding subdivisions; 119B.061; proposing coding for new law in Minnesota Statutes, chapter 119B; repealing Minnesota Statutes 2000, sections 119B.011, subdivision 20; 119B.03; 119B.04; 119B.05; 119B.06; 119B.07; 119B.08; 119B.09; 119B.10; 119B.11; 119B.12; 119B.13; 119B.14; 119B.15; 119B.16.
Reported the same back with the following amendments:
Delete everything after the enacting clause and insert:
"ARTICLE 1
CHILDREN AND FAMILY SUPPORT PROGRAMS
Section 1. Minnesota Statutes 2000, section 119A.51, is amended by adding a subdivision to read:
Subd. 6. [ELIGIBLE LOW-INCOME CHILDREN.] "Eligible low-income children" means children who live in families with incomes up to 100 percent of the federal poverty guidelines.
Sec. 2. Minnesota Statutes 2000, section 119A.52, is amended to read:
119A.52 [DISTRIBUTION OF APPROPRIATION.]
(a) Subdivision 1. [DISTRIBUTION.] The commissioner of children, families, and learning
must distribute money appropriated for that purpose this section to (1) Head Start program
grantees to expand services and (2) eligible agencies. Agencies that receive money under this section must use
the money to serve additional low-income children. Money
Subd. 2. [HEAD START GRANTEES.] Eighty-five percent of the annual appropriation must
be allocated to each project eligible Head Start grantee in existence on the effective date of Laws
1989, chapter 282. Migrant grantees, including migrant and Indian reservation grantees must be
initially allocated money based on the grantees' share of federal funds. The remaining money must be initially
allocated to the remaining local agencies based equally on the agencies' share of federal funds and on the proportion
of eligible children in the agencies' service area who are not currently being served. A Head Start grantee must be
funded at a per child rate equal to its contracted, federally funded base level for program accounts 20, 22, and 25
at the start of the fiscal year. In allocating funds under this paragraph, the commissioner of children, families, and
learning must assure that each Head Start grantee is allocated no less funding in any fiscal year than was allocated
to that grantee in fiscal year 1993. For fiscal years 2002 and 2003, the commissioner must allocate funds
appropriated for the purposes of this section to grantees based 40 percent on the grantees' share of federal funds and
60 percent based on unmet need measured by the number of children in poverty ages birth to five as reported in the
most recent decennial census or intercensal estimate. The commissioner may make grants for two years. The
commissioner may provide additional funding to grantees for start-up costs incurred by grantees due to the increased
number of children to be served. Before paying money to the grantees, the commissioner must notify each grantee
of its initial allocation, how the money must be used, and the number of low-income children that must
be served with the allocation. Each grantee must notify the commissioner of the number of low-income children it
will be able to serve. For any grantee that cannot utilize its full allocation, the commissioner must reduce the
allocation proportionately. Money available after the initial allocations are reduced must be redistributed to
eligible grantees.
(b) under subdivision 6. To be eligible for an allocation under this subdivision, a grantee must have
a work plan approved under subdivision 5. Head Start grantees may not use state grant funds toward the federally
required 25 percent local match.
Subd. 3. [OTHER ELIGIBLE AGENCIES.] Up to 11 (a) No less than 15 percent of
the funds appropriated annually may must be used to provide grants to local Head Start
other eligible agencies to provide funds for innovative programs designed either to target Head Start
resources to particular at-risk groups of children or to provide services in addition to those currently allowable under
federal Head Start regulations or expand services in unserved or underserved areas. The commissioner
must award funds for innovative programs under this paragraph subdivision on a
competitive basis., giving priority to innovative and creative program proposals. The commissioner may
establish criteria for agencies to apply to provide services under this subdivision. The criteria must include agencies
that:
(1) are not receiving Head Start funds as of June 30, 2001;
(2) are able to provide services in unserved or underserved areas;
(3) demonstrate experience with children ages three to five; and
(4) include a strong learning component.
(b) Eligible agencies receiving funds under this subdivision are not required to meet the federal Head Start standards.
(c) The commissioner must distribute funds to a variety of organization types and geographic locations.
(d) Eligible agencies must apply to the commissioner according to the timelines and on the forms provided by the commissioner. To be eligible for funds, an eligible agency must have an approved work plan and budget under subdivision 5.
(e) The commissioner may make grants for up to two years.
Subd. 4. [SERVICE PRIORITY.] Priority must be given to providing services to children ages three to five for appropriations received under this section. Up to $1,000,000 in TANF funds appropriated each year for the purposes of this section may be set aside to provide services for children ages zero to three.
Subd. 5. [WORK PLAN.] (a) Beginning in 2002, to be eligible for state appropriations under this section, each grantee must submit a work plan to the commissioner for approval. At a minimum, the work plan must:
(1) be based on community needs;
(2) identify the services to be provided;
(3) include the estimated number of low-income children to be served;
(4) describe the program design and service delivery areas, ensuring fair and equitable access to all services;
(5) describe programming for children ages three to five;
(6) describe programs or plans for children under the age of three, if applicable;
(7) describe partnerships with other programs;
(8) include a plan to maximize children's program time and minimize transition time between programs.
(b) For federal Head Start grantees, the work plan must specify how each Head Start grantee policy council assisted in the development and planning and will assist in the monitoring of the Head Start program and integration of service delivery with other early childhood services within the area.
(c) Head Start grantees and other eligible agencies must submit a work plan and operating budget, including all funding sources used to provide services.
(d) The commissioner may refuse any work plan that does not meet the criteria under this subdivision.
Subd. 6. [REDISTRIBUTION.] The commissioner must develop and implement a plan to redistribute reductions of the initial allocations to grantees under subdivisions 2 and 3 to eligible grantees to serve eligible children. Any amount of the redistribution that is allocated to an eligible grantee must be used according to its approved work plan under subdivision 5.
Subd. 7. [EVALUATION OF OUTCOMES.] (a) The commissioner must require each program receiving revenue under section 119A.52 to participate in the development and use of a common set of outcomes and indicators and in an outcome-based evaluation for Head Start. The outcomes and indicators must include information regarding the following:
(1) parental involvement;
(2) child health;
(4) school readiness.
(b) The outcome-based evaluation must include:
(1) a comparison of children and parents participating in Head Start programs and a control group of children and parents who have not participated in Head Start; and
(2) cost per participant and cost per contact hour information.
Sec. 3. Minnesota Statutes 2000, section 119A.53, is amended to read:
119A.53 [FEDERAL REQUIREMENTS.]
Grantees under section 119A.52, subdivision 2, and the commissioner of children, families, and learning
shall comply with federal regulations governing the federal head start program and the TANF program,
except for innovative programs funded under section 119A.52, paragraph (b) other services that are not
required by federal Head Start eligibility regulations but are included in the work plans approved under section
119A.52, subdivision 5, which may operate differently than federal head start regulations, and except that when
a state statute or regulation conflicts with a federal statute or regulation, the state statute or regulation prevails.
Sec. 4. Minnesota Statutes 2000, section 119B.011, subdivision 5, is amended to read:
Subd. 5. [CHILD CARE.] "Child care" means the care of a child by someone other than a parent or legal guardian
in or outside the child's own home for gain or otherwise, on a regular basis, for any part of a 24-hour day.
Sec. 5. Minnesota Statutes 2000, section 119B.011, subdivision 7, is amended to read:
Subd. 7. [CHILD CARE SERVICES.] "Child care services" means child care provided in family day care homes, group day care homes, nursery schools, day nurseries, child day care centers, head start, all-day every day kindergarten for the portion of kindergarten paid through parent fees, and extended day school age child care programs in or out of the child's home.
Sec. 6. Minnesota Statutes 2000, section 119B.011, subdivision 11, is amended to read:
Subd. 11. [EDUCATION PROGRAM.] "Education program" means remedial or basic education or English as
a second language instruction, a program leading to a general equivalency or high school diploma, post-secondary
programs excluding postbaccalaureate programs, and other education and training needs as documented in an
employment plan, as defined in subdivision 12. The employment plan must outline education and training needs
of a recipient, meet state requirements for employment plans, meet the requirements of this chapter, and Minnesota
Rules, parts 3400.0010 to 3400.0230, and meet the requirements of programs that provide federal reimbursement
for child care services.
Sec. 7. Minnesota Statutes 2000, section 119B.011, subdivision 12, is amended to read:
Subd. 12. [EMPLOYMENT PLAN.] "Employment plan" means employment of recipients financially eligible for child care assistance, or other work activities defined under section 256J.49, approved in an employability development, job search support plan, or employment plan that is developed by the county agency, if it is acting as an employment and training service provider, or by an employment and training service provider certified by the commissioner of economic security or an individual designated by the county to provide employment and training services. The plans and designation of a service provider must outline the education and training needs of a recipient, meet the requirements of this chapter and chapter 256J or chapter 256K, Minnesota Rules, parts 3400.0010 to 3400.0230, and other programs that provide federal reimbursement for child care services.
Sec. 8. Minnesota Statutes 2000, section 119B.011, subdivision 15, is amended to read:
Subd. 15. [INCOME.] "Income" means earned or unearned income received by all family members, including
public assistance cash benefits and at-home infant care subsidy payments, unless specifically excluded and child
support and maintenance distributed to the family under section 256.741, subdivision 15. The following are
excluded from income: funds used to pay for health insurance premiums for family members, Supplemental Security
Income, scholarships, work-study income, and grants that cover costs or reimbursement for tuition, fees, books, and
educational supplies; student loans for tuition, fees, books, supplies, and living expenses; state and federal
income and social security taxes attributable to that income level according to state and federal standardized tax
tables; state and federal earned income tax credits; in-kind income such as food stamps, energy assistance, foster
care assistance, medical assistance, child care assistance, and housing subsidies; earned income of full-time or
part-time students up to the age of 19, who have not earned a high school diploma or GED high school equivalency
diploma including earnings from summer employment; grant awards under the family subsidy
MFIP program; nonrecurring lump sum income only to the extent that it is earmarked and used for the
purpose for which it is paid; and any income assigned to the public authority according to section 256.741.
Sec. 9. Minnesota Statutes 2000, section 119B.011, subdivision 18, is amended to read:
Subd. 18. [POST-SECONDARY EDUCATIONAL SYSTEMS INSTITUTION.]
"Post-secondary educational systems institution" means the University of Minnesota board of
regents and the board of trustees of the Minnesota state colleges and universities any nationally accredited
technical college, community college, private college or university, or public college or university.
Sec. 10. Minnesota Statutes 2000, section 119B.011, subdivision 19, is amended to read:
Subd. 19. [PROVIDER.] "Provider" means a child care license holder who operates a family child care home,
a group family child care home, a child care center, a nursery school, a day nursery, a school age care program; a
license-exempt school age care program operating under the auspices of a local school board or a park or recreation
board of a city of the first class that has adopted school age care guidelines which meet or exceed guidelines
recommended by the department, or a nonlicensed an individual or child care center or facility, either
licensed or unlicensed, providing legal child care services as defined under section 245A.03. A legally
unlicensed registered family child care provider who is must be at least 18 years of
age, and who is not a member of the MFIP assistance unit or a member of the family receiving child care
assistance under this chapter.
Sec. 11. Minnesota Statutes 2000, section 119B.011, is amended by adding a subdivision to read:
Subd. 21. [ANNUAL GROSS INCOME.] "Annual gross income" of the applicant family means the current monthly gross income of the family multiplied by 12, the income for the 12-month period immediately preceding the date of application, or income calculated by the method which provides the most accurate assessment of income available to the family. Self-employment income must be calculated based on gross receipts less operating expenses.
Sec. 12. Minnesota Statutes 2000, section 119B.011, is amended by adding a subdivision to read:
Subd. 22. [FEDERAL POVERTY GUIDELINES.] "Federal poverty guidelines" means the annual poverty guidelines for a family of four, adjusted for family size, published annually by the United States Department of Health and Human Services in the Federal Register.
Sec. 13. Minnesota Statutes 2000, section 119B.011, is amended by adding a subdivision to read:
Subd. 23. [RECOUPMENT OF OVERPAYMENTS.] "Recoupment of overpayments" means the reduction of child care assistance payments to an eligible family in order to correct an overpayment to the family even when the overpayment is due to agency error or other circumstances outside the responsibility or control of the family.
Sec. 14. [119B.014] [ESTABLISHMENT OF CHILD CARE ASSISTANCE PROGRAM.]
Subdivision 1. [CHILD CARE ASSISTANCE PROGRAM.] (a) A child care assistance program is established for the purpose of subsidizing the child care costs of eligible families. The child care assistance program may be funded by county contributions, state appropriations, and federal funds. Child care assistance payments are authorized for eligible families within the limits of available appropriations.
(b) Child care services must be made available as in-kind services.
(c) Families enrolled in the child care assistance program must be continued until they are no longer eligible.
(d) Child care assistance provided through the child care fund is considered assistance to the parent.
Subd. 2. [SPECIAL REVENUE ACCOUNT FOR CHILD CARE.] A child support collection account is established in the special revenue fund for the deposit of collections through the assignment of child support under section 256.741, subdivision 2. The commissioner of human services must deposit all collections made under section 256.741, subdivision 2, in the child support collection account. Money in this account is appropriated to the commissioner for child care assistance under chapter 119B and is in addition to other state and federal appropriations.
Subd. 3. [GENERAL ELIGIBILITY.] (a) To be eligible for the child care assistance program, families must be participating in an authorized activity under subdivision 4 and meet income eligibility requirements under subdivision 5 and requirements under this subdivision.
(b) To be eligible for child care assistance, students enrolled in an education program under section 119B.011, subdivision 11, must be in good standing and be making satisfactory progress toward completion of the program as stipulated in the school's satisfactory progress policy.
(c) All applicants for child care assistance and families currently receiving child care assistance must cooperate in establishment of paternity and enforcement of child support obligations under section 256.741 for all children in the family as a condition of program eligibility.
Subd. 4. [AUTHORIZED ACTIVITIES.] Families must be participating in at least one of the following authorized activities:
(1) employment orientation or job search, or other employment or training activities that are included in an approved employability development plan under chapter 256K;
(2) work activities as required in their job search support or employment plan, or in appeals, hearings, assessments, or orientations under chapter 256J. Child care assistance to support work activities as required under section 256J.49 must be available according to sections 119A.52; 119B.011, subdivision 12; 124D.13; 256E.08; and 611A.32; and titles IVA; IVB; IVE; and XX of the Social Security Act of 1935;
(3) a job search conducted outside of an approved employability development plan under chapter 256K, not to exceed 240 hours of child care assistance per calendar year;
(4) employment outside of an employment plan under section 119B.011, subdivision 12, in which the caregiver works at least an average of 20 hours per week and students not participating in MFIP work at least an average of ten hours per week and receive at least minimum wage for all hours worked. For purposes of this section, work-study programs must be counted as employment;
(5) post-secondary education up to the maximum length of time necessary to complete the credit requirements for an associate or baccalaureate degree as determined by the educational institution, excluding basic or remedial education programs needed to prepare for post-secondary education or employment. Basic or remedial education programs include, but are not limited to, high school, general equivalency diploma, and English as a second language. Programs exempt from this time limit must not run concurrently with a post-secondary program; or
(6) the at-home infant child care program under section 119B.061.
Subd. 5. [INCOME ELIGIBILITY.] (a) Beginning January 1, 2002, all families participating in an authorized activity with an annual gross income at or below 250 percent of the federal poverty guidelines, adjusted for family size, are eligible for child care assistance regardless of MFIP status.
(b) If there is a waiting list for child care assistance under section 119B.025, subdivision 5, the commissioner must make recommendations to the legislature to change income eligibility requirements or make other changes in order to eliminate the waiting list.
Subd. 6. [CONTINUATION OF ASSISTANCE.] All families eligible for and receiving child care assistance under chapter 119B as of December 31, 2001, continue to be eligible for child care assistance until June 30, 2003, provided each family continues to meet all eligibility requirements as of December 31, 2001.
Sec. 15. [119B.017] [ASSISTANCE.]
Subdivision 1. [CALCULATION OF BENEFITS.] (a) Child care assistance must be authorized as provided in clause (1) or (2):
(1) when the caregiver or student works for an hourly wage and the hourly wage is equal to or greater than the applicable minimum wage, child care assistance must be provided for the actual hours of employment, break, and mealtime during the employment and travel time up to two hours per day, and classroom time in the case of students; or
(2) when the caregiver does not work for an hourly wage, child care assistance must be provided for the lesser of:
(i) the amount of child care determined by dividing gross earned income by the applicable minimum wage, up to one hour every eight hours for meals and break time, plus up to two hours per day for travel time, and classroom time; or
(ii) the amount of child care equal to the actual amount of child care used during employment, including break and mealtime during employment, plus up to two hours per day for travel time, and classroom time.
(b) The maximum amount of child care assistance a local agency may authorize in a two-week period is 120 hours per child.
Subd. 2. [STUDENTS.] Counties may not limit the duration of child care assistance for a student except when the student is found to be ineligible under the child care assistance eligibility standards. Any limitation must be based on a student's employment plan in the case of an MFIP recipient and county policies included in the child care fund plan.
Subd. 3. [CONTINUATION OF ASSISTANCE.] (a) If a caregiver who is receiving child care assistance under this chapter moves to another county, continues to participate in an authorized activity, and continues to be eligible for child care assistance under this chapter, the caregiver must receive, without interruption, continued child care assistance from the county in which the family currently resides. The family must notify the new county of residence within 60 days of moving and apply for child care assistance in the new county of residence.
(b) Financially eligible students who have received child care assistance for one academic year must be provided child care assistance in the following academic year.
Subd. 4. [DATE OF ELIGIBILITY FOR ASSISTANCE.] Within the limits of available appropriations:
(1) the date of eligibility for child care assistance under this chapter is the latest of:
(i) the date the application was signed;
(ii) the beginning date of employment, education, or training; or
(iii) the date a determination has been made that the applicant is a participant in employment and training services under chapter 256J or 256K or Minnesota Rules, part 3400.0080, subpart 2;
(2) payment of child care assistance for employed persons on MFIP is effective the date of employment or the date of MFIP eligibility, whichever is later; and
(3) payment of child care assistance for MFIP or work first participants in employment and training services is effective the date of commencement of the services or the date of MFIP or work first eligibility, whichever is later.
Sec. 16. Minnesota Statutes 2000, section 119B.02, subdivision 1, is amended to read:
Subdivision 1. [CHILD CARE SERVICES.] The commissioner shall must:
(1) develop standards for county and human services boards to provide child care services to enable
eligible families to participate in employment, training, or education programs. Within the limits of available
appropriations, the commissioner shall;
(2) distribute money to counties, within the limits of available appropriations, to reduce the costs
of child care for eligible families. The commissioner shall under section 119B.014;
(3) adopt rules under chapter 14 to govern the program in accordance with this section, to
implement and coordinate federal program requirements, and to administer the child care development fund.
The rules must establish a sliding schedule of fees for parents receiving child care services. The rules shall
must provide that funds money received as a lump sum payment of child support arrearages
shall is not be counted as income to a family in the month received but shall be
is prorated over the 12 months following receipt and added to the family income during those months.
In the rules adopted under this section, county and human services boards shall be authorized to establish policies
for payment of child care spaces for absent children, when the payment is required by the child's regular provider.
The rules shall not set a maximum number of days for which absence payments can be made, but instead shall direct
the county agency to set limits and pay for absences according to the prevailing market practice in the county.
County policies for payment of absences shall be subject to the approval of the commissioner. The commissioner
shall;
(4) maximize the use of federal money under title I and title IV of Public Law Number 104-193, the
Personal Responsibility and Work Opportunity Reconciliation Act of 1996, and other programs that provide federal
or state reimbursement for child care services for low-income families who are in education, training, job search,
or other activities allowed under those programs. Money appropriated under this section must be
coordinated; and
(5) coordinate state child care assistance money with the programs that provide federal reimbursement
for child care services to accomplish this purpose. Federal reimbursement obtained
reimbursements must be allocated to the county counties that spent money
expend funds for federally reimbursable child care that is federally reimbursable under
programs that provide federal reimbursement for child care services. The counties shall use the federal money to
expand child care services. The commissioner may adopt rules under chapter 14 to implement and coordinate federal
program requirements.
Sec. 17. Minnesota Statutes 2000, section 119B.02, subdivision 2, is amended to read:
Subd. 2. [CONTRACTUAL AGREEMENTS WITH TRIBES.] The commissioner may enter into contractual
agreements with a federally recognized Indian tribe with a reservation in Minnesota to carry out the responsibilities
of county human service agencies to the extent necessary for the tribe to operate child care assistance programs under
sections 119B.03 and 119B.05 chapter 119B. An agreement may allow for the tribe to be
reimbursed for child care assistance services provided under section 119B.05 chapter 119B. The
commissioner shall consult with the affected county or counties in the contractual agreement negotiations, if the
county or counties wish to be included, in order to avoid the duplication of county and tribal child care services.
Funding to support child care services under section 119B.03 may be transferred to the federally
recognized Indian tribe with a reservation in Minnesota from allocations available to counties in which reservation
boundaries lie. When funding is transferred under section 119B.03, The amount shall of the
transfer must be commensurate to estimates of the proportion of reservation residents with characteristics
identified in section 119B.03, subdivision 6 eligible under section 119B.045, to the total population
of county residents with those same characteristics eligible under section 119B.045.
Sec. 18. Minnesota Statutes 2000, section 119B.02, subdivision 3, is amended to read:
Subd. 3. [SUPERVISION OF COUNTIES.] The commissioner shall must supervise child care
programs administered by the counties through standard-setting, technical assistance to the counties, approval of
county child care fund plans, and distribution of public money for services. The commissioner shall
must provide training and other support services to assist counties in planning for and implementing child
care assistance programs. The commissioner shall adopt rules under chapter 14 that establish minimum
administrative standards for the provision of child care services by county boards of commissioners.
Sec. 19. Minnesota Statutes 2000, section 119B.02, is amended by adding a subdivision to read:
Subd. 6. [FEDERAL MONEY; STATE RECOVERY.] The commissioner must recover from counties any state or federal money that was spent for persons found to be ineligible, except if the recovery is made by a county agency using any method other than recoupment, the county may keep 25 percent of the recovery. If a federal audit exception is taken based on a percentage of federal earnings, all counties must pay a share proportional to their respective federal earnings during the period in question.
Sec. 20. Minnesota Statutes 2000, section 119B.02, is amended by adding a subdivision to read:
Subd. 7. [REPORTS.] The commissioner must specify requirements for reports under the same authority as provided to the commissioner of human services in section 256.01, subdivision 2, paragraph (17).
Sec. 21. Minnesota Statutes 2000, section 119B.02, is amended by adding a subdivision to read:
Subd. 8. [APPROVAL OF CHILD CARE PLAN.] Within 90 days of the date the child care fund plan under section 119B.025, subdivision 7, the commissioner must notify counties whether or not the plan is approved or if corrections or other information is needed to approve the plan. The commissioner must withhold payments to a county until it has an approved plan. Counties must maintain services despite any withholding of payments due to plans not being approved.
Sec. 22. Minnesota Statutes 2000, section 119B.02, is amended by adding a subdivision to read:
Subd. 9. [ALLOCATION PERIOD; NOTICE OF ALLOCATION.] (a) The commissioner must notify county and human service boards of the forms and instructions they must follow in the development of their child care fund plans required under section 119B.025, subdivision 7.
(b) The commissioner must notify county and human services boards of their estimated child care fund program allocation for the two years covered by the plan.
(c) By October 1 of each year, the commissioner must notify all counties of their final child care fund program allocation.
Sec. 23. Minnesota Statutes 2000, section 119B.02, is amended by adding a subdivision to read:
Subd. 10. [QUARTERLY PAYMENTS.] The commissioner may make payments to each county in quarterly installments. The commissioner may certify an advance of up to 25 percent of the allocation. Subsequent payments must be made on a reimbursement basis for reported expenditures and may be adjusted for anticipated spending patterns. Payments may be withheld if quarterly reports are incomplete or untimely.
Sec. 24. Minnesota Statutes 2000, section 119B.02, is amended by adding a subdivision to read:
Subd. 11. [REVIEW OF USE OF FUNDS; REALLOCATION.] (a) After each quarter, the commissioner must review the use of child care assistance program allocations by county. The commissioner may reallocate unexpended or unencumbered money among those counties that have expended their full allocation or may allow a county to expend up to ten percent of its allocation in the subsequent allocation period.
(b) Any unexpended state and federal appropriations from the first year of the biennium may be carried forward to the second year of the biennium.
Sec. 25. Minnesota Statutes 2000, section 119B.02, is amended by adding a subdivision to read:
Subd. 12. [TERMINATION OF ALLOCATION.] The commissioner may withhold, reduce, or terminate the allocation of any county that does not meet the reporting or other requirements of this program. The commissioner must reallocate to other counties money so reduced or terminated. Counties are to maintain services despite any reduction in their allocation due to failure to meet the reporting or other requirements of this program.
Sec. 26. Minnesota Statutes 2000, section 119B.02, is amended by adding a subdivision to read:
Subd. 13. [COMMISSIONER TO ADMINISTER FEDERAL CHILD CARE AND DEVELOPMENT FUND.] The commissioner is authorized and directed to receive, administer, and expend funds available under the child care and development fund under Title VI of Public Law Number 104-193. Supplemental distributions received from the federal government after July 1 of each year shall be submitted for review and appropriations pursuant to section 3.3005.
Sec. 27. Minnesota Statutes 2000, section 119B.02, is amended by adding a subdivision to read:
Subd. 14. [CHILD CARE DEVELOPMENT FUND PLAN DEVELOPMENT; REVIEW.] In an effort to improve state legislative involvement in the development of the Minnesota child care and development fund plan, the commissioner must present a draft copy of the plan to the legislative finance committees that oversee child care assistance funding no less than 30 days prior to the required deadline for submission of the plan to the federal government. The legislature must submit any adjustments to the plan to the commissioner for consideration within ten business days of receiving the draft plan. The commissioner must present a copy of the final plan to the chairs of the legislative finance committees that oversee child care assistance funding no less than four days prior to the deadline for submission of the plan to the federal government.
Sec. 28. Minnesota Statutes 2000, section 119B.02, is amended by adding a subdivision to read:
Subd. 15. [FEDERAL EARNINGS.] The commissioner must allocate any federal earnings to the county to be used to expand child care services to serve additional families under this chapter.
Sec. 29. Minnesota Statutes 2000, section 119B.02, is amended by adding a subdivision to read:
Subd. 16. [ADMINISTRATIVE EXPENSES.] The commissioner must use up to 1/21 of the state and federal funds available for the child care assistance program for the county administrative costs of the delivery of direct services.
Sec. 30. Minnesota Statutes 2000, section 119B.02, is amended by adding a subdivision to read:
Subd. 17. [MAXIMUM RATE DETERMINATION.] The commissioner must determine the maximum rate for each type of care, including special needs and handicapped care and extended day care. The commissioner must annually survey child care providers, including all providers licensed by the department of human services, to determine the 75th percentile of the market rate. The commissioner must implement any resulting rate changes by August 1 of each year. Not less than once every two years, the commissioner must evaluate market practices for payment of absences and must establish policies for payment of absent days that reflect current market practice.
Sec. 31. [119B.025] [DUTIES OF COUNTIES.]
Subdivision 1. [EXTENSION OF EMPLOYMENT OPPORTUNITIES.] The county board must ensure that child care services available to eligible residents are well advertised and that everyone who receives or applies for MFIP cash assistance is informed of training and employment opportunities, programs, and requirements including child care assistance and child care resource and referral services.
Subd. 2. [APPLICATION; ENTRY POINTS.] Each county must make available to applicants two or more methods of applying for the child care assistance program. To meet the requirements of this subdivision, a county may provide alternative methods of applying for assistance, including, but not limited to, a mail application or application sites that are located outside of government offices.
Subd. 3. [CONTRACTS; OTHER USES ALLOWED.] Counties may contract for administration of the program or may arrange for or contract for child care funds to be used by other appropriate programs in accordance with this section and as permitted by federal law and regulations.
Subd. 4. [ASSISTANCE PRIORITY.] (a) Each county must give first priority for child care assistance under the child care assistance program to eligible MFIP families.
(b) Each county must give second priority for child care assistance to eligible non-MFIP families who do not have a high school or general equivalency diploma or who need remedial and basic skill courses in order to pursue employment or education leading to employment and who need child care assistance to participate in the education program. Within this priority, each county must use the following subpriorities for child care assistance:
(1) child care needs of minor parents;
(2) child care needs of parents under 21 years of age; and
(3) child care needs of other parents within the priority group described in this paragraph.
(c) Each county must give third priority to families who continue to be eligible for child care assistance and were receiving child care assistance in a county but have moved to another county. Families must receive, without interruption, continued child care assistance from the county in which they currently live.
(d) If a county projects that its child care allocation is insufficient to meet the needs of all eligible families, it may prioritize among the families that remain to be served after the county has complied with the priority requirements of this section. Counties that have established a priority for families beyond those established under this section must submit the policy in the annual child care fund plan.
Subd. 5. [WAITING LIST.] (a) Each county that receives state or federal child care assistance funds must keep a written record and report to the commissioner the number of eligible families who have applied for a child care subsidy or have requested child care assistance.
(b) Counties must perform a preliminary determination of eligibility when a family requests child care assistance. At a minimum, a county must make a preliminary determination of eligibility based on family size, income, and authorized activity. A family seeking child care assistance must provide the required information to the county.
(c) A family that appears to be eligible must be put on a waiting list if funds are not immediately available. The waiting list must identify individuals in need of child care by priority categories. Counties must review and update their waiting list at least every six months.
Subd. 6. [FEDERAL REIMBURSEMENT.] Counties must maximize their federal reimbursement under federal reimbursement programs for money spent for persons eligible under this chapter.
Subd. 7. [CHILD CARE FUND PLAN.] The county and designated administering agency must submit a child care fund plan to the commissioner. The commissioner must establish the dates by which the county must submit the child care fund plan. The plan must include:
(1) a narrative of the total program for child care services, including all policies and procedures that affect eligible families and are used to administer the child care funds;
(2) the methods used by the county to inform eligible families of the availability of child care assistance and related services;
(3) the provider rates paid for all children with special needs by provider type;
(4) the county prioritization policy for all eligible families under the child care assistance program; and
(5) other information as requested by the department to ensure compliance with the child care fund statutes and rules promulgated by the commissioner.
Subd. 8. [COUNTY CONTRIBUTIONS REQUIRED.] In addition to payments from child care assistance program participants, each county must contribute from county tax or other sources a fixed local match equal to its calendar year 2000 required county contribution. The commissioner must recover funds from the county as necessary to bring county expenditures into compliance with this subdivision.
Subd. 9. [MAINTENANCE OF FUNDING EFFORT.] To receive money through this program, each county must certify, in its annual plan to the commissioner, that the county has not reduced allocations from other federal and state sources, which, in the absence of the child care fund, would have been available for child care assistance. However, the county must continue contributions, as necessary, to maintain on the child care assistance program, families who are receiving assistance on December 31, 2001, until the family loses eligibility for the program or until a family voluntarily withdraws from the program. This subdivision does not affect the local match required for this program under other sections of the law.
Subd. 10. [QUALITY CHILD CARE SERVICES INFORMATION.] Each county must make resources available to parents in choosing quality child care services. A county may require a parent to sign a release stating the parent's knowledge and responsibilities in choosing a legal provider described under section 119B.011. When a county knows that a particular provider is unsafe, or that the circumstances of the child care arrangement chosen by the parent are unsafe, the county may deny a child care subsidy. A county may not restrict access to a general category of provider allowed under section 119B.011, subdivision 19.
Subd. 11. [INCOME REDETERMINATION.] A county must redetermine income when the family's income changes, but no less often than every six months. Income must be verified with documentary evidence. If the applicant does not have sufficient evidence of income, verification must be obtained from the source of the income.
Subd. 12. [PROVIDER NOTICE.] Each county must inform both the family receiving assistance under this chapter and the child care provider of the child care assistance payment amount and how and when payment will be received. If a county sends a family a notice that child care assistance will be terminated, the county must inform the provider that unless the family requests to continue to receive assistance pending an appeal, child care payments will no longer be made. The notice to the provider must not contain any private data on the family or information on why payment will no longer be made.
Subd. 13. [PROVIDER PAYMENTS.] Each county must make vendor payments to the child care provider or pay the parent directly for eligible child care expenses. If payments for child care assistance are made to providers, the provider must bill the county for services provided within ten days of the end of the month of service. If bills are submitted in accordance with the requirements of this subdivision, a county must issue payment to the provider of child care under the child care fund within 30 days of receiving an invoice from the provider. Each county may establish policies that make payments on a more frequent basis. A county's payment policies must be included in the county's child care plan under subdivision 7.
Subd. 14. [ABSENCE PAYMENTS.] County and human services boards are authorized to establish policies for payment of child care spaces for absent children when payments are required by the child's regular provider. The county agency is authorized to set limits and pay for absences according to the prevailing market practice in the county. County policies for payment of absences must be subject to the approval of the commissioner.
Subd. 15. [DOCUMENTATION.] Each county must obtain, from all child care assistance applicants, information documenting all children in the applicant's household eligible for subsidized child care. The documentation may include a social security number, certified copy of a birth certificate, or other similar documentation.
Sec. 32. [119B.035] [PROGRAM INTEGRITY AND FAIR HEARING.]
Subdivision 1. [PROGRAM INTEGRITY.] For the child care assistance program under this chapter, the commissioner must enforce, in cooperation with the commissioner of human services, the requirements for program integrity and fraud prevention investigations under sections 256.046, 256.98, and 256.983.
Subd. 2. [RECOVERY OF OVERPAYMENTS.] (a) A county agency may recover an amount of child care assistance paid to a recipient in excess of the payment due. If the family remains eligible for child care assistance, the overpayment must be recovered through recoupment. If the family no longer remains eligible for child care assistance, the county may choose to initiate efforts to recover overpayments from the family for an overpayment less than $50. If the overpayment is greater than or equal to $50, the county must seek voluntary repayment of the overpayment from the family. If the county is unable to recoup the overpayment through voluntary repayment, the county must initiate civil court proceedings to recover the overpayment unless the county's costs to recover the overpayment will exceed the amount of the overpayment.
(b) A family with an outstanding debt under this subdivision is not eligible for child care assistance until: (1) the debt is paid in full; or (2) satisfactory arrangements are made with the county to retire the debt consistent with the requirements of this chapter and Minnesota Rules, chapter 3400, and the family is in compliance with the arrangements.
Subd. 3. [FAIR HEARING ALLOWED.] An applicant or recipient adversely affected by a county agency action may request a fair hearing in accordance with section 256.045.
Subd. 4. [INFORMAL CONFERENCE.] Each county agency must offer an informal conference to applicants and recipients adversely affected by an agency action to attempt to resolve the dispute. Each county agency must advise adversely affected applicants and recipients that a request for a conference with the agency is optional and does not delay or replace the right to a fair hearing.
Sec. 33. [119B.045] [CHILD CARE ASSISTANCE PROGRAM FUNDING.]
Subdivision 1. [ALLOCATION FORMULA.] The state and federal child care assistance funds must be allocated on a calendar year basis. Funds must be allocated first in amounts equal to each county's guaranteed floor according to subdivision 3 with any remaining available funds allocated according to the following formula:
(a) one-third of the funds must be allocated in proportion to each county's total expenditures for the child care assistance program reported during the most recent fiscal year completed at the time of the notice of allocation;
(b) one-third of the funds must be allocated in proportion to each county's most recently reported first, second, and third priority waiting list as defined in section 119B.025, subdivision 4; and
(c) one-third of the funds must be allocated in proportion to each county's most recently reported waiting list as defined in section 119B.025, subdivision 5.
Subd. 2. [ALLOCATION DUE TO INCREASED FUNDING.] When funding increases are implemented within a calendar year, every county must receive an allocation at least equal and proportionate to its original allocation for the same time period. The remainder of the allocation must be recalculated to reflect the funding increase according to formulas identified in subdivision 1.
Subd. 3. [GUARANTEED FLOOR.] (a) Beginning January 1, 2002, each county's guaranteed floor must equal 90 percent of the allocation received in the preceding calendar year for child care assistance programs under chapter 119B.
(b) When the amount of funds available for allocation is less than the amount available in the previous year, each county's previous year allocation must be reduced in proportion to the reduction in the statewide funding for the purpose of establishing the guaranteed floor.
Subd. 4. [CHILD CARE AT-RISK SET-ASIDE.] A child care assistance at-risk set-aside is established to provide child care assistance for families who:
(1) are eligible for child care assistance;
(2) are not receiving MFIP cash assistance;
(3) are employed at least an average of 20 hours per week; and
(4) have an income at or below 175 percent of the federal poverty guidelines.
Funding in this set-aside must be used only when all other available child care assistance funding in a county has been expended or encumbered. Before expending these funds, the county must make a determination that the family is at risk of using MFIP cash assistance.
Sec. 34. [119B.048] [SLIDING FEE AND PARENT FEES.]
Subdivision 1. [SLIDING FEE.] Child care services to families with incomes at or below 250 percent of the federal poverty guidelines, adjusted for family size, must be made available on a sliding fee basis.
Subd. 2. [PARENT FEES.] A family's monthly parent fees must be a fixed percentage of its annual gross income. Parent fees must apply to families eligible for child care assistance under section 119B.014. Income must be as defined in section 119B.011, subdivision 15. The fixed percent is based on the relationship of the family's annual gross income to the established income eligibility level under section 119B.014. Parent fees must begin at 75 percent of the poverty level. The minimum parent fees for families between 75 percent and 100 percent of poverty level must be $5 per month. Parent fees must be established in rule and must provide for graduated movement to full payment.
When the provider charge is greater than the maximum provider rate allowed, the parent is responsible for payment of the difference in the rates in addition to any family copayment fee.
Sec. 35. [119B.055] [CHILD CARE PROVIDERS; CHOICE AND RATES.]
Subdivision 1. [PROVIDER CHOICE.] Parents may choose child care providers, as defined under section 119B.011, that best meet the needs of their family.
Subd. 2. [SUBSIDY RESTRICTIONS.] The maximum rate paid for child care assistance under the child care fund may not exceed the 75th percentile rate for like-care arrangements in the county as surveyed by the commissioner. A rate which includes a provider bonus paid under subdivision 3 or a special needs rate paid under subdivision 4 may be in excess of the maximum rate allowed under this subdivision. The department must monitor the effect of this section on provider rates. The county must pay the provider's full charges for every child in care up to the maximum established.
Subd. 3. [PROVIDER RATE BONUS FOR ACCREDITATION.] A family child care provider or child care center with a current early childhood development credential approved by the commissioner must be paid a ten percent bonus above the maximum rate established in subdivision 2, up to the actual provider rate.
Subd. 4. [PROVIDER RATE FOR CARE OF CHILDREN WITH HANDICAPS OR SPECIAL NEEDS.] Counties must reimburse providers for the care of children with handicaps or special needs at a special rate to be approved by the county for care of these children, subject to the approval of the commissioner.
Subd. 5. [RATES CHARGED TO PUBLICLY SUBSIDIZED FAMILIES.] Child care providers receiving reimbursement under this chapter may not charge a rate to clients receiving assistance under this chapter that is higher than the private, full-paying client rate.
Subd. 6. [EMPLOYER-EMPLOYEE RELATIONSHIPS.] Receipt of federal, state, or local funds by a child care provider either directly or through a parent who is a child care assistance recipient does not establish an employer-employee relationship between the county or state and the child care provider.
Sec. 36. Minnesota Statutes 2000, section 119B.061, subdivision 1, is amended to read:
Subdivision 1. [ESTABLISHMENT.] A family in which a parent provides care for the family's infant child may
receive a subsidy in lieu of assistance if the family is eligible for, or is receiving assistance under the basic sliding
fee child care assistance program. An eligible family must meet the eligibility factors under section
119B.09, the income criteria under section 119B.12 119B.014, and the requirements of this section.
Subject to federal match and maintenance of effort requirements for the child care and development fund, the
commissioner shall establish a pool of up to seven three percent of the annual appropriation for the
basic sliding fee child care assistance program to provide assistance under the at-home infant child
care program. At the end of a fiscal year, the commissioner may carry forward any unspent funds under this section
to the next fiscal year within the same biennium for assistance under the basic sliding fee child care
assistance program.
Sec. 37. Minnesota Statutes 2000, section 119B.061, subdivision 2, is amended to read:
Subd. 2. [ELIGIBLE FAMILIES.] (a) A family with an infant under the age of one year is eligible for assistance if:
(1) the family is not receiving MFIP, other cash assistance, or other child care assistance;
(2) the family has not previously received all of the one-year exemption from the work requirement for infant care under the MFIP program;
(3) the family has not previously received a life-long total of 12 36 months of assistance under
this section; and
(4) the family is participating in the basic sliding fee child care assistance program or provides
verification of participation in an authorized activity at the time of application and meets the program requirements.
(b) A family is limited to 12 months of assistance per child.
Sec. 38. Minnesota Statutes 2000, section 119B.061, subdivision 4, is amended to read:
Subd. 4. [ASSISTANCE.] (a) A family is limited to a lifetime total of 12 36 months of assistance
under this section subdivision 2. The maximum rate of assistance is equal to 75 90
percent of the rate established under section 119B.13 119B.055 for care of infants in licensed family
child care in the applicant's county of residence. Assistance must be calculated to reflect the parent fee requirement
under section 119B.12 119B.048 for the family's actual income level and family size
while the family is participating in the at-home infant child care program under this section.
(b) A participating family must report income and other family changes as specified in the county's plan under
section 119B.08, subdivision 3 119B.025, subdivision 7. The family must treat any assistance
received under this section as unearned income.
(c) Persons who are admitted to the at-home infant care program retain their position in any basic sliding
fee child care assistance program or on any waiting list attained at the time of admittance. If they are
on the waiting list, they must advance as if they had not been admitted to the program. Persons leaving the at-home
infant care program re-enter the basic sliding fee child care assistance program at the position they
would have occupied or on the waiting list or at the position to which they would have
advanced. Persons who would have attained eligibility for the basic sliding fee child care assistance
program must be given assistance or advance to the top of the waiting list when they leave the at-home infant care
program. Persons admitted to the at-home infant care program who are not on a basic sliding fee child
care assistance waiting list may apply to the basic sliding fee child care assistance program,
and if eligible, be placed on the waiting list.
(d) The time that a family receives assistance under this section must be deducted from the one-year exemption from work requirements under the MFIP program.
(e) Assistance under this section does not establish an employer-employee relationship between any member of the assisted family and the county or state.
(f) The date of eligibility for the at-home infant child care program is the later of the date the infant is born or, in a county with a waiting list, the date the family applies for at-home infant child care.
Sec. 39. Minnesota Statutes 2000, section 119B.061, subdivision 5, is amended to read:
Subd. 5. [IMPLEMENTATION.] (a) The commissioner shall implement the at-home infant child care
program under this section through counties that administer the basic sliding fee child care
assistance program under section 119B.03 119B.014. The commissioner must develop and
distribute consumer information on the at-home infant care program to assist parents of infants or expectant parents
in making informed child care decisions.
(b) The commissioner shall evaluate this program and report the impact to the legislature by January 1, 2000.
The evaluation must include data on the number of families participating in the program; the number of families
continuing to pursue employment or education while participating in the program; the average income of families
prior to, during, and after participation in the program; family size; and single parent and two-parent status.
Sec. 40. Minnesota Statutes 2000, section 121A.17, subdivision 1, is amended to read:
Subdivision 1. [EARLY CHILDHOOD DEVELOPMENTAL SCREENING.] Every school board must provide
for a mandatory program of early childhood developmental screening for children once before school entrance,
targeting children who are between 3-1/2 and four years old. Screening must be targeted to children who
are between three and four years old. At the request of the child's parent or legal guardian, a child may be screened
as early as age two. This screening program must be established either by one board, by two or more boards
acting in cooperation, by service cooperatives, by early childhood family education programs, or by other existing
programs. This screening examination is a mandatory requirement for a student to continue attending kindergarten
or first grade in a public school. A child need not submit to developmental screening provided by a board if the
child's
health records indicate to the board that the child has received comparable developmental screening from a public
or private health care organization or, individual health care provider, or Head Start
program. Districts are encouraged to reduce the costs of preschool developmental screening programs by
utilizing volunteers in implementing the program.
Sec. 41. Minnesota Statutes 2000, section 124D.13, is amended by adding a subdivision to read:
Subd. 13. [PROGRAM EVALUATION.] (a) The commissioner must require each program receiving revenue under section 124D.135 to participate in the development and use of a common set of outcomes and indicators and in an outcome-based evaluation for early childhood family education. The outcomes and indicators must include information regarding the following:
(1) parental awareness of child development;
(2) parental satisfaction;
(3) parental involvement;
(4) child development; and
(5) school readiness.
(b) The outcome-based evaluation must include:
(1) a comparison of children and parents participating in early childhood family education programs and a control group of children and parents who have not participated in early childhood family education; and
(2) cost per participant and cost per contact hour information.
Sec. 42. Minnesota Statutes 2000, section 124D.135, is amended by adding a subdivision to read:
Subd. 8. [RESERVE ACCOUNT LIMIT.] Under this section, the average annual revenue, during the most recent three-year period, in a district's early childhood family education reserve account must not be greater than 25 percent of the district's early childhood family education annual revenue for the prior year. If a district's average early childhood family education reserve, over the most recent three-year period, is in excess of 25 percent of the prior year state revenue, the district's current year early childhood family education state aid and levy authority must be reduced by the excess reserve amount. The commissioner must reallocate aid reduced under this subdivision to other eligible early childhood family education programs.
Sec. 43. Minnesota Statutes 2000, section 124D.135, is amended by adding a subdivision to read:
Subd. 9. [WAIVER.] If a district anticipates that the reserve account may exceed 25 percent because of extenuating circumstances, prior approval to exceed the limit must be obtained in writing from the commissioner.
Sec. 44. Minnesota Statutes 2000, section 124D.15, is amended by adding a subdivision to read:
Subd. 14. [PROGRAM EVALUATION.] (a) The commissioner must require each program receiving revenue under section 124D.16 to participate in the development and use of a common set of outcomes and indicators and in an outcome-based evaluation for school readiness. The outcomes and indicators must include information regarding the following:
(2) parental satisfaction; and
(3) parental involvement.
(b) The outcome-based evaluation must include;
(1) a comparison of children and parents participating in school readiness programs and a control group of children and parents who have not participated in a school readiness program; and
(2) cost per participation and cost per contact hour information.
Sec. 45. Minnesota Statutes 2000, section 124D.16, subdivision 2, is amended to read:
Subd. 2. [AMOUNT OF AID.] (a) A district is eligible to receive school readiness aid if the program plan as required by subdivision 1 has been approved by the commissioner.
(b) For fiscal year 1998 and thereafter, a district must receive school readiness aid equal to:
(1) the number of eligible four-year-old children in the district on October 1 for the previous school
year times the ratio of 50 percent of the total school readiness aid for that year to the total number of eligible
four-year-old children reported to the commissioner for that the previous school year; plus
(2) the number of pupils enrolled in the school district from families eligible for the free or reduced school lunch program for the second previous school year times the ratio of 50 percent of the total school readiness aid for that year to the total number of pupils in the state from families eligible for the free or reduced school lunch program for the second previous school year.
Sec. 46. Minnesota Statutes 2000, section 124D.16, is amended by adding a subdivision to read:
Subd. 5. [RESERVE ACCOUNT.] School readiness revenue, which includes aids, fees, grants, and all other revenues received by the district school readiness programs, must be maintained in a reserve account within the community service fund.
Sec. 47. Minnesota Statutes 2000, section 124D.16, is amended by adding a subdivision to read:
Subd. 6. [RESERVE ACCOUNT LIMIT.] Under this section, the average annual revenue, during the most recent three-year period, in a district's school readiness reserve account must not be greater than 25 percent of the district's school readiness annual revenue for the prior year. If a district's average school readiness reserve, over the most recent three-year period, is in excess of 25 percent of the prior year state revenue, the district's current year school readiness state aid must be reduced by the excess reserve amount. The commissioner must reallocate aid reduced under this subdivision to other eligible school readiness programs.
Sec. 48. Minnesota Statutes 2000, section 124D.16, is amended by adding a subdivision to read:
Subd. 7. [WAIVER.] If a district anticipates that the reserve account may exceed 25 percent because of extenuating circumstances, prior approval to exceed the limit must be obtained in writing from the commissioner.
Sec. 49. Minnesota Statutes 2000, section 125A.28, is amended to read:
125A.28 [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 must be appointed by the governor. Council members must elect the council chair. The representative of the commissioner may not serve as the chair. The council must
be composed of at least 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, 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 must meet at least quarterly.
The council must 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.
By June September 1, the council must 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 expires on
June 30, 2001 2003.
Sec. 50. [CHILD CARE DEVELOPMENT FUND STATEWIDE PLAN.]
Subdivision 1. [CHILD CARE DEVELOPMENT FUND STATEWIDE PLAN.] (a) In accordance with the requirements found in Code of Federal Regulations, title 45, part 98, and in conjunction with other federal, state, and local child care and early childhood development programs, the commissioner of children, families, and learning must continue to coordinate the creation of a Minnesota child care and development fund plan to determine statewide grant activities for the 2002-2003 biennium.
(b) The plan must identify grant activities that:
(1) directly respond to federal requirements, including school-age care, infant and toddler care, child care resource and referral, and quality and availability;
(2) promote community partnerships among a variety of family providers as well as child care centers; and
(3) create new opportunities for employer involvement in the provision of child care.
(c) The plan must provide no less than 35 percent of the total funding in each fiscal year for child care development grants for federally required activities, no less than five percent of the total funding in each fiscal year for quality improvement activities with existing early childhood family education programs and child care providers, and no less than 15 percent of the general fund appropriation for child care development for the development of child care facilities under Minnesota Statutes, section 119B.25.
Subd. 2. [CHILD CARE DEVELOPMENT GRANTS.] (a) Total funding for child care development grants consists of money received from state general funds, federal child care development funds, federal TANF funds, and benevolent gifts. Total child care development grant funding is $10,808,000 in fiscal year 2002 and $11,123,000 in fiscal year 2003.
(b) In accordance with federal requirements for the development of a comprehensive child care development plan and in an effort to provide for a variety of child care needs statewide, the Minnesota child care and development fund plan must provide, at a minimum:
(1) $1,000,000 in the 2002-2003 fiscal biennium for early childhood family education programs, under Minnesota Statutes, section 124D.13, in communities throughout the state to enhance the learning experiences of children in family- or center-based child care programs through the provision of supplementary services and resources, staff training, parent education, and assistance with children who have special needs;
(2) $500,000 from the general fund in the 2002-2003 fiscal biennium for loans to improve or construct child care sites, under Minnesota Statutes, section 119B.25. Each loan must be matched with nonpublic funding on a one-to-one basis;
(3) $120,000 in the 2002-2003 fiscal biennium for early childhood professional development grants. No less than four grants must be awarded to support child care professional development activities. Two of the grants must focus on the development needs of child care professionals in rural areas and two of the grants must focus on the development needs of child care professionals located in the seven-county metropolitan area. Grants to successful applicants may not exceed $30,000 per grant;
(4) $200,000 in the 2002-2003 fiscal biennium for the facilities loan and business program. These funds must be used to heighten business awareness and streamline the process to support the development of new child care facilities in workplace settings. No less than 40 percent of these funds must be used by the commissioner to work with the Minnesota chamber of commerce and its affiliates and other trade organizations to develop a statewide approach to encourage employers to establish tax-deferred child care accounts for their employees;
(5) $1,000,000 in the 2002-2003 fiscal biennium for the loan forgiveness scholarship program for credit-based education or C.D.A. classes for child care providers that agree to work in the Minnesota child care industry for two years.
Sec. 51. [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, unless otherwise indicated.
Subd. 2. [SCHOOL READINESS PROGRAM REVENUE.] For revenue for school readiness programs according to Minnesota Statutes, sections 124D.15 and 124D.16:
$10,395,000 . . . . . 2002
$10,395,000 . . . . . 2003
The 2002 appropriation includes $1,039,000 for 2001 and $9,356,000 for 2002.
The 2003 appropriation includes $1,039,000 for 2002 and $9,356,000 for 2003.
Any balance in the first year does not cancel but is available in the second year.
Subd. 3. [EARLY CHILDHOOD FAMILY EDUCATION AID.] For early childhood family education aid according to Minnesota Statutes, section 124D.135:
$20,758,000 . . . . . 2002
$20,663,000 . . . . . 2003
The 2002 appropriation includes $2,036,000 for 2001 and $18,722,000 for 2002.
The 2003 appropriation includes $2,081,000 for 2002 and $18,582,000 for 2003.
Any balance in the first year does not cancel but is available in the second year.
Subd. 4. [HEALTH AND DEVELOPMENTAL SCREENING AID.] For health and developmental screening aid according to Minnesota Statutes, sections 121A.17 and 121A.19:
$2,661,000 . . . . . 2002
$2,661,000 . . . . . 2003
The 2002 appropriation includes $266,000 for 2001 and $2,395,000 for 2002.
The 2003 appropriation includes $266,000 for 2002 and $2,395,000 for 2003.
Any balance in the first year does not cancel but is available in the second year.
Subd. 5. [WAY TO GROW.] For grants for existing way to grow programs according to Minnesota Statutes, section 124D.17:
$475,000 . . . . . 2002
$475,000 . . . . . 2003
Any balance in the first year does not cancel but is available in the second year.
Subd. 6. [HEAD START PROGRAM.] For Head Start programs according to Minnesota Statutes, section 119A.52:
$17,375,000 . . . . . 2002
$17,375,000 . . . . . 2003
The general fund base for fiscal years 2004 and 2005 is $17,375,000 for each year. Any balance in the first year does not cancel but is available in the second year.
Subd. 7. [SCHOOL AGE CARE AID.] For school age care aid according to Minnesota Statutes, section 124D.22:
$221,000 . . . . . 2002
$133,000 . . . . . 2003
The 2002 appropriation includes $30,000 for 2001 and $191,000 for 2002.
The 2003 appropriation includes $21,000 for 2002 and $112,000 for 2003.
Any balance in the first year does not cancel but is available in the second year.
Subd. 8. [CHILD CARE ASSISTANCE.] For child care assistance according to Minnesota Statutes, section 119B.014:
$134,252,000 . . . . . 2002
$130,604,000 . . . . . 2003
Any balance in the first year does not cancel but is available in the second year.
Subd. 9. [CHILD CARE INTEGRITY.] For the administrative costs of program integrity and fraud prevention for child care assistance under chapter 119B:
$175,000 . . . . . 2002
$175,000 . . . . . 2003
Any balance in the first year does not cancel but is available in the second year.
Subd. 10. [CHILD CARE DEVELOPMENT.] For child care development grants according to Minnesota Statutes, section 119B.21:
$1,865,000 . . . . . 2002
$1,865,000 . . . . . 2003
These funds must be used in accordance with section 50, paragraph (b), clause (2).
Any balance in the first year does not cancel but is available in the second year.
Subd. 11. [EARLY CHILDHOOD PROGRAM EVALUATIONS.] For early childhood program evaluations according to Minnesota Statutes, sections 119A.52, 124D.13, and 124D.15:
$110,000 . . . . . 2002
$110,000 . . . . . 2003
Any balance in the first year does not cancel but is available in the second year.
Sec. 52. [FEDERAL TANF TRANSFERS.]
Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, and LEARNING.] The sums indicated in this section are transferred from the federal TANF fund to the child care and development fund and appropriated to the department of children, families, and learning for the fiscal years designated.
Subd. 2. [CHILD CARE ASSISTANCE.] For child care assistance according to Minnesota Statutes, section 119B.014:
$24,473,000 . . . . . 2002
$24,038,000 . . . . . 2003
Of this appropriation, $3,500,000 per year must be used for the child care at-risk set-aside under Minnesota Statutes, section 119B.045, subdivision 4.
Any balance the first year does not cancel but is available in the second year.
Sec. 53. [FEDERAL TANF TRANSFERS.]
Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND LEARNING.] The sums indicated in this section are transferred from the federal TANF fund to the Head Start program and appropriated to the department of children, families, and learning for the fiscal years designated. These funds shall be used to provide Head Start services for children ages zero to three.
Subd. 2. [HEAD START PROGRAM.] For Head Start programs according to Minnesota Statutes, section 119A.52:
$1,000,000 . . . . . 2002
$1,000,000 . . . . . 2003
The TANF base for fiscal years 2004 and 2005 is $1,000,000 each year.
Any balance the first year does not cancel but is available in the second year.
Sec. 54. [REPEALER.]
(a) Minnesota Statutes 2000, sections 119B.011, subdivision 20; 119B.03; 119B.04; 119B.05; 119B.06; 119B.07; 119B.08; 119B.09; 119B.10; 119B.11; 119B.12; 119B.13; 119B.14; 119B.15; and 119B.16, are repealed effective December 31, 2001.
(b) Minnesota Statutes 2000, section 124D.16, subdivision 4, is repealed effective July 1, 2001.
ARTICLE 2
PREVENTION
Section 1. Minnesota Statutes 2000, section 119A.12, is amended by adding a subdivision to read:
Subd. 4. [AUTHORITY TO DISBURSE FUNDS.] The commissioner may disburse trust fund money to any public or private nonprofit agency to fund a child abuse prevention program. State funds appropriated for child maltreatment prevention grants may be transferred to the children's trust fund special revenue account and are available to carry out this section.
Sec. 2. Minnesota Statutes 2000, section 119A.12, is amended by adding a subdivision to read:
Subd. 5. [PLAN FOR DISBURSEMENT OF FUNDS.] The commissioner shall develop a plan to disburse money from the trust fund. The plan must ensure that all geographic areas of the state have an equal opportunity to establish prevention programs and receive trust fund money.
Sec. 3. Minnesota Statutes 2000, section 119A.12, is amended by adding a subdivision to read:
Subd. 6. [OPERATIONAL COSTS.] $120,000 each year is appropriated from the children's trust fund to the special revenue fund for administration and indirect costs of the children's trust fund program.
Sec. 4. Minnesota Statutes 2000, section 119A.13, subdivision 4, is amended to read:
Subd. 4. [RESPONSIBILITIES OF COMMISSIONER.] (a) The commissioner shall:
(1) provide for the coordination and exchange of information on the establishment and maintenance of prevention programs;
(2) develop and publish criteria for receiving trust fund money by prevention programs;
(3) review, approve, and monitor the spending of trust fund money by prevention programs;
(4) provide statewide educational and public informational seminars to develop public awareness on preventing child abuse; to encourage professional persons and groups to recognize instances of child abuse and work to prevent them; to make information on child abuse prevention available to the public and to organizations and agencies; and to encourage the development of prevention programs, including programs that provide support for adolescent parents, fathering education programs, and other prevention activities designed to prevent teen pregnancy;
(5) establish a procedure for an annual, internal evaluation of the functions, responsibilities, and performance of the commissioner in carrying out Laws 1986, chapter 423;
(6) provide technical assistance to local councils and agencies working in the area of child abuse prevention; and
(7) accept and review grant applications beginning June 1, 1987.
(b) The commissioner shall recommend to the governor changes in state programs, statutes, policies, budgets, and standards that will reduce the problems of child abuse, improve coordination among state agencies that provide prevention services, and improve the condition of children, parents, or guardians in need of prevention program services.
Sec. 5. Minnesota Statutes 2000, section 119A.21, is amended to read:
119A.21 [GRANTS TO SERVICE PROVIDER PROGRAMS.]
Subdivision 1. [GRANTS AWARDED.] The commissioner shall award grants to programs which provide
abused children services to abused or neglected children. Grants shall be awarded in a manner that
ensures that they are equitably distributed to programs serving metropolitan and nonmetropolitan populations.
Subd. 2. [APPLICATIONS.] Any public or private nonprofit agency may apply to the commissioner for a grant
to provide abused children services. The application shall be submitted in on a form
approved prescribed by the commissioner after consultation with the abused children advisory
council and shall include:.
(1) a proposal for the provision of abused children services to, or on behalf of, abused children, children at
risk, and their families;
(2) a proposed budget;
(3) evidence of ability to represent the interests of abused children and their families to local law enforcement
agencies and courts, social services, and health agencies;
(4) evidence of ability to do outreach to unserved and underserved populations and to provide culturally and
linguistically appropriate services; and
(5) any other information the commissioner may require by policy or by rule adopted under chapter 14, after
considering the recommendations of the abused children advisory council.
Programs which have been approved for grants in prior years may submit materials which indicate changes
in items listed in clauses (1) to (5), in order to qualify for renewal funding. Nothing in this subdivision may be
construed to require programs to submit complete applications for each year of funding.
Subd. 3. [DUTIES.] Every public or private nonprofit agency which receives a grant under this section
to provide abused children services shall comply with all requirements of the commissioner related to the
administration of the grants.
Subd. 4. [CLASSIFICATION OF DATA COLLECTED BY GRANTEES.] Personal history information and other information collected, used, or maintained by a grantee from which the identity of any abused child or family members may be determined is private data on individuals as defined in section 13.02, subdivision 12, and the grantee shall maintain the data in accordance with provisions of chapter 13.
Sec. 6. Minnesota Statutes 2000, section 119A.22, is amended to read:
119A.22 [DUTIES OF THE COMMISSIONER.]
The commissioner shall:
(1) review applications and award grants to programs pursuant to section 119A.21 after considering the
recommendation of the abused children advisory council;
(2) appoint members of the abused children advisory council created under section 119A.23 and provide
consultative staff and other administrative services to the council;
(3) after considering the recommendation of the abused children advisory council, appoint a program director
to perform the duties set forth in this clause. In appointing the program director the commissioner shall give due
consideration to the list of applicants submitted to the commissioner pursuant to this section. The program director
shall administer the funds appropriated for sections 119A.20 to 119A.23, consult with and provide staff to the
advisory council and perform other duties related to abused children's programs as the commissioner may assign;
(4) design a uniform method of collecting data on abused children's programs to be used to
monitor and assure compliance of the programs funded under section 119A.21;
(5) (3) provide technical aid assistance to applicants in the development of grant
requests and to programs grantees in meeting the data collection requirements established by the
commissioner; and
(6) (4) adopt, under chapter 14, all rules necessary to implement the provisions of sections
119A.20 to 119A.23.
Sec. 7. [119A.35] [ADVISORY COUNCIL.]
Subdivision 1. [GENERALLY.] The council is established under section 15.059 to advise the commissioner of children, families, and learning on the implementation and continued operations of sections 119A.10 to 119A.16 and 119A.20 to 119A.22. The council shall expire June 30, 2005.
Subd. 2. [COUNCIL MEMBERSHIP.] The council shall consist of a total of 22 members. The governor shall appoint 18 of these members. The commissioners of human services and health shall each appoint one member. The senate shall appoint one member from the senate family and early childhood education finance committee and the house of representatives shall appoint one member from the house family and early childhood budget committee.
Council members shall have knowledge in the areas of child abuse and neglect prevention and intervention and knowledge of the risk factors that can lead to child abuse and neglect. Council members shall be representative of: local government, criminal justice, parents, consumers of services, health and human services professionals, faith community, professional and volunteer providers of child abuse and neglect prevention and intervention services, racial and ethnic minority communities, and the demographic and geographic composition of the state. Ten council members shall reside in the seven-county metropolitan area and eight shall reside in nonmetropolitan areas.
Subd. 3. [RESPONSIBILITIES.] The council shall:
(1) advise the commissioner on planning, policy development, data collection, rulemaking, funding, and evaluation of the programs under the sections listed in subdivision 1;
(2) coordinate and exchange information on the establishment and ongoing operation of the programs listed in subdivision 1;
(3) develop and publish criteria and guidelines for receiving grants relating to child abuse and neglect prevention and safety and support of child victims, including, but not limited to, funds dedicated to the children's trust fund and abused children program;
(4) provide guidance in the development of statewide education and public information activities that increase public awareness in the prevention and intervention of child abuse and neglect and encourage the development of prevention and intervention programs, which includes the safety of child victims;
(5) guide, analyze, and disseminate results in the development of appropriate evaluation procedures for all programs receiving funds under subdivision 1; and
(6) assist the commissioner in identifying service gaps or duplication in services including geographic dispersion of resources, programs reflecting the cycle of child abuse, and the availability of culturally appropriate intervention and prevention services.
Sec. 8. Minnesota Statutes 2000, section 124D.19, is amended by adding a subdivision to read:
Subd. 12. [YOUTH AFTER-SCHOOL ENRICHMENT PROGRAMS.] Each district operating a community education program under this section may establish a youth after-school enrichment program to maintain and expand participation by school-age youth in supervised activities during nonschool hours. The youth after-school enrichment programs must include activities that support development of social, mental, physical, and creative abilities of school-age youth; provide structured youth programs during high-risk times; and design programming to promote youth leadership development and improved academic performance. Youth after-school enrichment programs must collaborate with former after-school enrichment grantees.
Sec. 9. Minnesota Statutes 2000, section 124D.19, is amended by adding a subdivision to read:
Subd. 13. [YOUTH AFTER-SCHOOL ENRICHMENT PROGRAM GOALS.] The goals of youth after-school enrichment programs are to:
(1) collaborate with and leverage existing community resources that have demonstrated effectiveness;
(2) reach out to children and youth, including at-risk youth, in the community;
(3) increase the number of children participating in adult-supervised programs during nonschool hours;
(4) support academic achievement; and
(5) increase skills in technology, the arts, sports, and other activities.
Sec. 10. Minnesota Statutes 2000, section 124D.19, is amended by adding a subdivision to read:
Subd. 14. [COMMUNITY EDUCATION; ANNUAL REPORT.] Each district offering a community education program under this section must annually report to the department of children, families, and learning information regarding the cost per participant and cost per contact hour for each community education program, including youth after-school enrichment programs, that receive aid or levy. The department of children, families, and learning must include cost per participant and cost per contact hour information by program in the community education annual report.
Sec. 11. Minnesota Statutes 2000, section 124D.20, subdivision 1, is amended to read:
Subdivision 1. [TOTAL COMMUNITY EDUCATION REVENUE.] Total community education revenue
equals the sum of a district's general community education revenue and, youth service program
revenue, and youth after-school enrichment revenue.
Sec. 12. Minnesota Statutes 2000, section 124D.20, is amended by adding a subdivision to read:
Subd. 4a. [YOUTH AFTER-SCHOOL ENRICHMENT REVENUE.] Beginning in 2002, youth after-school enrichment revenue is available to a district that has implemented a youth after-school enrichment program. Youth after-school enrichment revenue equals:
(1) $0.93 times the greater of 1,335 or the population of the district, as defined in section 275.14, not to exceed 10,000; and
(2) $0.24 times the population of the district, as defined in section 275.14, in excess of 10,000.
In fiscal year 2003 and thereafter, youth after-school enrichment revenue equals:
(1) $2.78 times the greater of 1,335 or the population of the district, as defined in section 275.14, not to exceed 10,000; and
(2) $0.67 times the population of the district, as defined in section 275.14, in excess of 10,000. Youth after-school enrichment revenue must be reserved for youth after-school enrichment programs.
Sec. 13. Minnesota Statutes 2000, section 124D.20, subdivision 5, is amended to read:
Subd. 5. [TOTAL COMMUNITY EDUCATION LEVY.] To obtain total community education
revenue, a district may levy the amount raised by a maximum tax rate of .4795 .7431
percent times the adjusted net tax capacity of the district. This amount reflects a community education levy of
.4795 percent times the adjusted net tax capacity of the district plus a youth after-school enrichment levy of .2636
percent times the adjusted net tax capacity of the district. If the amount of the total community
education levy would exceed the total community education revenue, the total community education
levy shall be determined according to subdivision 6.
Sec. 14. Minnesota Statutes 2000, section 124D.221, subdivision 1, is amended to read:
Subdivision 1. [ESTABLISHMENT.] A competitive statewide after-school enrichment grant program
is established to provide implementation grants to community or nonprofit organizations, to political subdivisions,
or to school-based programs in cities of the first class. A community or nonprofit organization must be a
charitable organization under section 501(c)(3) of the Internal Revenue Code of 1986. An after-school enrichment
grant to a successful applicant may not exceed $750,000. The commissioner shall develop criteria for
after-school enrichment programs.
Sec. 15. Minnesota Statutes 2000, section 124D.221, subdivision 2, is amended to read:
Subd. 2. [PRIORITY NEIGHBORHOODS.] (a) The commissioner must give priority to applicants
who:
(1) beginning in fiscal year 2002, demonstrate a match of $1 of nonstate funding for every $3 of the grant amount awarded for implementation of an after-school enrichment program;
(2) beginning in fiscal year 2003, demonstrate a match of $1 of nonstate funding for each $1 of the grant amount awarded for the implementation of an after-school enrichment program; and
(3) establish an accountability system that sets measurable goals and outcomes that support academic achievement, school attendance, reduces the number of suspensions, and assesses participants' progress on these measures annually.
(b) For grants in Minneapolis and St. Paul, the commissioner must give priority to neighborhoods in this subdivision. In Minneapolis, priority neighborhoods are Near North, Hawthorne, Sumner-Glenwood, Harrison, Jordan, Powderhorn, Central, Whittier, Cleveland, McKinley, Waite Park, Sheridan, Holland, Lyndale, Folwell, and Phillips. In St. Paul, priority neighborhoods are Summit-University, Thomas-Dale, North End, Payne-Phalen, Daytons Bluff, and the West Side.
Sec. 16. Minnesota Statutes 2000, section 124D.221, is amended by adding a subdivision to read:
Subd. 6. [PROGRAM COST; REPORT.] Each program that receives a grant under this section must annually report to the commissioner information regarding the cost per participant and cost per contact hour for the program.
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. [FAMILY COLLABORATIVES.] For family collaboratives according to Laws 1995, First Special Session chapter 3, article 4, section 29, subdivision 10, as amended by Laws 1996, chapter 412, article 4, section 27:
$1,477,000 . . . . . 2002
$863,000 . . . . . 2003
No new family services collaboratives shall be funded with this appropriation.
Any balance in the first year does not cancel but is available in the second year.
Subd. 3. [COMMUNITY EDUCATION AID.] For community education aid according to Minnesota Statutes, section 124D.20:
$16,459,000 . . . . . 2002
$15,611,000 . . . . . 2003
The 2002 appropriation includes $1,528,000 for 2001 and $14,931,000 for 2002.
The 2003 appropriation includes $1,659,000 for 2002 and $13,952,000 for 2003.
Of this appropriation, $250,000 must be set aside each year for the guard our youth program sponsored by the department of military affairs to serve at-risk and underserved youth ages nine to 16 years.
Any balance in the first year does not cancel but is available in the second year.
Subd. 4. [ADULTS WITH DISABILITIES PROGRAM AID.] For adults with disabilities programs according to Minnesota Statutes, section 124D.56:
$710,000 . . . . . 2002
$710,000 . . . . . 2003
Any balance in the first year does not cancel but is available in the second year.
Subd. 5. [HEARING-IMPAIRED ADULTS.] For programs for hearing-impaired adults according to Minnesota Statutes, section 124D.57:
$70,000 . . . . . 2002
$70,000 . . . . . 2003
Any balance in the first year does not cancel but is available in the second year.
Subd. 6. [VIOLENCE PREVENTION EDUCATION GRANTS.] For violence prevention education grants according to Minnesota Statutes, section 120B.23:
$1,450,000 . . . . . 2002
$1,450,000 . . . . . 2003
Any balance in the first year does not cancel but is available in the second year.
Subd. 7. [ABUSED CHILDREN.] For abused children programs according to Minnesota Statutes, section 119A.21:
$945,000 . . . . . 2002
$945,000 . . . . . 2003
Any balance in the first year does not cancel but is available in the second year.
Subd. 8. [CHILDREN'S TRUST FUND.] For children's trust fund according to Minnesota Statutes, sections 119A.12 and 119A.13:
$875,000 . . . . . 2002
$875,000 . . . . . 2003
Any balance in the first year does not cancel but is available in the second year.
Subd. 9. [FAMILY VISITATION CENTERS.] (a) For family visitation centers according to Minnesota Statutes, section 119A.37:
$200,000 . . . . . 2002
$200,000 . . . . . 2003
Any balance in the first year does not cancel but is available in the second year.
(b) An additional $96,000 in fiscal year 2002 and $96,000 in fiscal year 2003 are appropriated from the special revenue fund under Minnesota Statutes, section 517.08, subdivision 1c, for family visitation centers. Any balance in the first year does not cancel but is available for the second year.
Subd. 10. [AFTER-SCHOOL ENRICHMENT GRANTS.] For after-school enrichment grants according to Minnesota Statutes, section 124D.221:
$3,010,000 . . . . . 2002
Any balance in the first year does not cancel but is available in the second year.
Subd. 11. [CHEMICAL ABUSE PREVENTION GRANTS.] (a) For grants with funds received under Minnesota Statutes, section 171.29, subdivision 2, paragraph (b), clause (4):
$200,000 . . . . . 2002
$200,000 . . . . . 2003
(b) These appropriations are from the alcohol-impaired driver account of the special revenue fund for chemical abuse prevention grants.
Sec. 18. [REVISOR INSTRUCTION.]
In the next and subsequent editions of Minnesota Statutes and Minnesota Rules, the revisor shall renumber Minnesota Statutes, section 119A.13, subdivision 4, as Minnesota Statutes, section 119A.12, subdivision 4, and make necessary cross-reference changes consistent with the renumbering.
Sec. 19. [REPEALER.]
Minnesota Statutes 2000, sections 119A.13, subdivisions 1, 2, and 3; 119A.14, subdivision 2; 119A.23; 124D.33; and 124D.331, are repealed.
ARTICLE 3
SELF-SUFFICIENCY AND LIFELONG LEARNING
Section 1. Minnesota Statutes 2000, section 124D.518, subdivision 5, is amended to read:
Subd. 5. [UNREIMBURSED EXPENSES.] "Unreimbursed expenses" means allowable adult basic education expenses of a program, in the current program year, that are not covered by payments from federal or private for-profit sources.
Sec. 2. Minnesota Statutes 2000, section 124D.52, subdivision 2, is amended to read:
Subd. 2. [PROGRAM APPROVAL.] (a) To receive aid under this section, a district, a consortium of districts, the department of corrections, or a private nonprofit organization must submit an application by June 1 describing the program, on a form provided by the department. The program must be approved by the commissioner according to the following criteria:
(1) how the needs of different levels of learning will be met;
(2) for continuing programs, an evaluation of results;
(3) anticipated number and education level of participants;
(4) coordination with other resources and services;
(5) participation in a consortium, if any, and money available from other participants;
(6) management and program design;
(7) volunteer training and use of volunteers;
(8) staff development services;
(9) program sites and schedules;
(10) program expenditures that qualify for aid;
(11) program ability to provide data related to learner outcomes as required by law; and
(12) a copy of the memorandum of understanding described in subdivision 1 submitted to the commissioner.
(b) Adult basic education programs may be approved under this subdivision for up to five years. Five-year program approval must be granted to an applicant who has demonstrated the capacity to:
(1) offer comprehensive learning opportunities and support service choices appropriate for and accessible to adults at all basic skill need levels;
(2) provide a participatory and experiential learning approach based on the strengths, interests, and needs of each adult, that enables adults with basic skill needs to:
(i) identify, plan for, and evaluate their own progress toward achieving their defined educational and occupational goals;
(ii) master the basic academic reading, writing, and computational skills, as well as the problem-solving, decision making, interpersonal effectiveness, and other life and learning skills they need to function effectively in a changing society;
(iii) locate and be able to use the health, governmental, and social services and resources they need to improve their own and their families' lives; and
(iv) continue their education, if they desire, to at least the level of secondary school completion, with the ability to secure and benefit from continuing education that will enable them to become more employable, productive, and responsible citizens;
(3) plan, coordinate, and develop cooperative agreements with community resources to address the needs that the adults have for support services, such as transportation, flexible course scheduling, convenient class locations, and child care;
(4) collaborate with business, industry, labor unions, and employment-training agencies, as well as with family and occupational education providers, to arrange for resources and services through which adults can attain economic self-sufficiency;
(5) provide sensitive and well trained adult education personnel who participate in local, regional, and statewide adult basic education staff development events to master effective adult learning and teaching techniques;
(6) participate in regional adult basic education peer program reviews and evaluations;
(7) submit accurate and timely performance and fiscal reports;
(8) submit accurate and timely reports related to program outcomes and learner follow-up information; and
(9) spend adult basic education aid on adult basic education purposes only, which are specified in sections 124D.518 to 124D.531.
(c) The commissioner shall require each district to provide notification by February 1, 2001, of its intent to apply for funds under this section as a single district or as part of an identified consortium of districts. A district receiving funds under this section must notify the commissioner by February 1 of its intent to change its application status for applications due the following June 1.
Sec. 3. Minnesota Statutes 2000, section 124D.522, is amended to read:
124D.522 [ADULT BASIC EDUCATION SUPPLEMENTAL SERVICE GRANTS.]
(a) The commissioner, in consultation with the policy review task force under section 124D.521, may make grants to nonprofit organizations to provide services that are not offered by a district adult basic education program or that are supplemental to either the statewide adult basic education program, or a district's adult basic education program. The commissioner may make grants for: staff development for adult basic education teachers and administrators; training for volunteer tutors; training, services, and materials for serving disabled students through adult basic education programs; statewide promotion of adult basic education services and programs; development and dissemination of instructional and administrative technology for adult basic education programs; programs which primarily serve communities of color; adult basic education distance learning projects, including television instruction programs; and other supplemental services to support the mission of adult basic education and innovative delivery of adult basic education services.
(b) The commissioner must establish eligibility criteria and grant application procedures. Grants under this
section must support services throughout the state, focus on educational results for adult learners, and promote
outcome-based achievement through adult basic education programs. Beginning in fiscal year 2002, the
commissioner may make grants under this section from funds specifically appropriated the state total
adult basic education aid set aside for supplemental service grants under section 124D.531. Up to
one-third one-fourth of the appropriation for supplemental service grants must be used for grants
for adult basic education programs to encourage and support innovations in adult basic education instruction and
service delivery. A grant to a single organization cannot exceed $100,000. Nothing in this section prevents an
approved adult basic education program from using state or federal aid to purchase supplemental services.
Sec. 4. Minnesota Statutes 2000, section 124D.531, subdivision 1, is amended to read:
Subdivision 1. [STATE TOTAL ADULT BASIC EDUCATION AID.] (a) The state total adult basic education aid for fiscal year 2001 equals $30,157,000. The state total adult basic education aid for later years equals:
(1) the state total adult basic education aid for the preceding fiscal year; times
(2) the lesser of:
(i) 1.08, or
(ii) the greater of 1.00 or the ratio of the state total contact hours in the first prior program year to the state total contact hours in the second prior program year. Beginning in fiscal year 2002, two percent of the state total adult basic education aid must be set aside for adult basic education supplemental service grants under section 124D.522.
(b) The state total adult basic education aid, excluding basic population aid, equals the difference between the amount computed in paragraph (a), and the state total basic population aid under subdivision 2.
Sec. 5. Minnesota Statutes 2000, section 124D.531, subdivision 3, is amended to read:
Subd. 3. [PROGRAM REVENUE.] Adult basic education programs established under section 124D.52 and approved by the commissioner are eligible for revenue under this subdivision. For fiscal year 2001 and later, adult basic education revenue for each approved program equals the sum of:
(1) the basic population aid under subdivision 2 for districts participating in the program during the current program year; plus
(2) 84 percent times the amount computed in subdivision 1, paragraph (b), times the ratio of the contact hours for students participating in the program during the first prior program year to the state total contact hours during the first prior program year; plus
(3) eight percent times the amount computed in subdivision 1, paragraph (b), times the ratio of the enrollment of students with limited English proficiency during the second prior school year in districts participating in the program during the current program year to the state total enrollment of students with limited English proficiency during the second prior school year in districts participating in adult basic education programs during the current program year; plus
(4) eight percent times the amount computed in subdivision 1, paragraph (b), times the ratio of the latest federal census count of the number of adults aged 20 or older with no diploma residing in the districts participating in the program during the current program year to the latest federal census count of the state total number of adults aged 20 or older with no diploma residing in the districts participating in adult basic education programs during the current program year.
Sec. 6. Minnesota Statutes 2000, section 124D.531, subdivision 7, is amended to read:
Subd. 7. [PROGRAM AUDITS.] Programs that receive aid under this section must maintain records that support
the aid payments. The commissioner may audit these records upon request. The commissioner must establish
procedures for conducting fiscal audits of adult basic education programs according to the schedule in this
subdivision. In calendar year 2002, the commissioner must audit one-half of approved adult basic education
programs that received aid for fiscal year 2001, and in calendar year 2003, the commissioner must audit the
remaining unaudited programs for aid received in fiscal year 2002. Beginning with fiscal year 2004
2003, the commissioner must, at a minimum, audit each adult basic education program once every five
years. The commissioner must establish procedures to reconcile any discrepancies between aid payments based on
information reported to the commissioner and aid estimates based on a program audit.
Sec. 7. [ADULT BASIC EDUCATION POLICY TASK FORCE.]
The adult basic education policy task force, under Laws 2000, chapter 489, article 1, section 42, must recommend to the legislative finance committees with responsibility for adult basic education an equitable funding formula for nondistrict programs based on an evaluation of costs and revenues. The task force must report to the legislature by February 1, 2002.
Sec. 8. [DIRECTION TO COMMISSIONER.]
The commissioner of children, families, and learning must hire an additional permanent full-time staff person to oversee the state adult basic education program. The duties of the state adult basic education coordinator include, but are not limited to:
(1) oversight of the supplemental service grants;
(2) oversight of the adult basic education program audits;
(3) coordination of the adult basic education policy task force;
(4) working with adult basic education directors around the state; and
(5) providing information to the legislative finance committees that oversee the adult basic education program.
Sec. 9. [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. [MINNESOTA ECONOMIC OPPORTUNITY GRANTS.] For Minnesota economic opportunity grants, sections 119A.374 to 119A.376:
$8,514,000 . . . . . 2002
$8,514,000 . . . . . 2003
Any balance in the first year does not cancel but is available in the second year.
Subd. 3. [TRANSITIONAL HOUSING PROGRAMS.] For transitional housing programs according to Minnesota Statutes, section 119A.43:
$1,988,000 . . . . . 2002
$1,988,000 . . . . . 2003
Any balance in the first year does not cancel but is available in the second year.
Subd. 4. [EMERGENCY SERVICES.] For emergency services according to Minnesota Statutes, section 119A.43:
$350,000 . . . . . 2002
$350,000 . . . . . 2003
Any balance in the first year does not cancel but is available in the second year.
Subd. 5. [ADULT BASIC EDUCATION AID.] For adult basic education aid according to Minnesota Statutes, section 124D.531:
$32,368,000 . . . . . 2002
$34,994,000 . . . . . 2003
The 2002 appropriation includes $3,019,000 for 2001 and $29,306,000 for 2002.
The 2003 appropriation includes $3,237,000 for 2002 and $31,669,000 for 2003.
Subd. 6. [ADULT BASIC EDUCATION AUDITS; STATE COORDINATOR.]
For adult basic education audits under Minnesota Statutes, section 124D.531 and for a state adult basic education coordinator:
$145,000 . . . . . 2002
$145,000 . . . . . 2003
Of this appropriation, $70,000 in each fiscal year must be used for adult basic education audits and $75,000 must be used to hire an additional permanent, full-time state adult basic education coordinator. Any balance in the first year does not cancel but is available in the second year.
Subd. 7. [ADULT GRADUATION AID.] For adult graduation aid according to Minnesota Statutes, section 124D.54:
$3,195,000 . . . . . 2002
$3,356,000 . . . . . 2003
The 2002 appropriation includes $305,000 for 2001 and $2,890,000 for 2002.
The 2003 appropriation includes $321,000 for 2002 and $3,035,000 for 2003.
Subd. 8. [GED TESTS.] For payment of 60 percent of the costs of GED tests according to Laws 1993, chapter 224, article 4, section 44, subdivision 10:
$125,000 . . . . . 2002
$125,000 . . . . . 2003
Any balance in the first year does not cancel but is available in the second year.
Subd. 9. [FOODSHELF PROGRAM.] For foodshelf programs according to Minnesota Statutes, section 119A.44:
$1,278,000 . . . . . 2002
$1,278,000 . . . . . 2003
Any balance in the first year does not cancel but is available in the second year.
Subd. 10. [FAMILY ASSETS FOR INDEPENDENCE.]
$500,000 . . . . . 2002
Any balance in the first year does not cancel but is available in the second year.
Subd. 11. [LEAD ABATEMENT.] For lead abatement according to Minnesota Statutes, section 119A.46:
$100,000 . . . . . 2002
$100,000 . . . . . 2003
Any balance in the first year does not cancel but is available in the second year.
Sec. 10. [TANF APPROPRIATIONS.]
Subdivision 1. [DEPARTMENT OF CHILDREN, FAMILIES, AND LEARNING.] The sums indicated in this section are appropriated to the commissioner of children, families, and learning from the federal Temporary Assistance for Needy Families block grant for the fiscal years designated. These amounts are available for expenditure until June 30, 2003. Appropriations under this section are one-time appropriations and are not added to the base for fiscal years 2004 and 2005.
Subd. 2. [INTENSIVE ENGLISH AS A SECOND LANGUAGE.] For intensive English as a second language for eligible MFIP participants under Laws 2000, chapter 489, article 1, section 39:
$1,100,000 . . . . . 2002
Subd. 3. [TRANSITIONAL HOUSING.] For reimbursement grants to transitional housing programs under Minnesota Statutes, section 119A.43:
$1,900,000 . . . . . 2002
$1,950,000 . . . . . 2003
These appropriations must be used for up to four months of transitional housing for families with incomes below 200 percent of the federal poverty guidelines. Payment must be made to programs on a reimbursement basis.
ARTICLE 4
LIBRARIES
Section 1. Minnesota Statutes 2000, section 125B.20, subdivision 1, is amended to read:
Subdivision 1. [ESTABLISHMENT; PURPOSE.] The purpose of developing a statewide school district
telecommunications network is to expand the availability of a broad range of courses and degrees to students
throughout the state, to share information resources to improve access, quality, and efficiency, to improve learning,
and distance cooperative learning opportunities, and to promote the exchange of ideas among students, parents,
teachers, media generalists, librarians, and the public. In addition, through the development of this statewide
telecommunications network emphasizing cost-effective, competitive connections, all Minnesotans will benefit by
enhancing access to telecommunications technology throughout the state. Network connections for school districts
and public libraries are coordinated and fully integrated into the existing state telecommunications and interactive
television networks to achieve comprehensive and efficient interconnectivity of school districts and libraries to higher
education institutions, state agencies, other governmental units, agencies, and institutions throughout Minnesota.
A school district may apply to the commissioner for a grant under subdivision 2, and a regional public library
may apply under subdivision 3. The Minnesota education telecommunications council established in Laws 1995,
First Special Session chapter 3, article 12, section 7, shall establish priorities for awarding grants, making grant
awards, and being responsible for the coordination of networks.
Sec. 2. Minnesota Statutes 2000, section 134.31, subdivision 5, is amended to read:
Subd. 5. [ADVISORY COMMITTEE.] The commissioner shall appoint an advisory committee of five members
to advise the staff of the Minnesota library for the blind and physically handicapped on long-range plans and library
services. Members shall be people who use the library. Section 15.059 governs this committee except that the
committee shall expire on June 30, 2001 2005.
Sec. 3. [134.47] [REGIONAL LIBRARY TELECOMMUNICATIONS AID.]
Subdivision 1. [ELIGIBILITY.] (a) A regional public library system may apply for regional library telecommunications aid. The aid must be used for data and video access costs and other related costs to improve or maintain electronic access and connect the library system with the state information infrastructure administered by the department of administration under section 16B.465. Priority shall be given to public libraries that have not received access. To be eligible, a regional public library system must be officially designated by the commissioner of children, families, and learning as a regional public library system as defined in section 134.34, subdivision 3, and each of its participating cities and counties must meet local support levels defined in section 134.34, subdivision 1. A public library building that receives aid under this section must be open a minimum of 20 hours per week.
(b) Aid received under this section may not be used to substitute for any existing local funds allocated to provide electronic access, equipment for library staff or the public, or local funds dedicated to other library operations.
(c) An application for regional library telecommunications aid must, at a minimum, contain information to document the following:
(1) that the data line or video link relies on a transport medium that operates at a minimum speed of 1.544 megabytes per second for each regional public library system headquarters or a minimum of 64 kilobits per second for each public library building and employs an open network architecture that will ensure interconnectivity and interoperability with school districts, post-secondary education, or other governmental agencies;
(2) that the connection is established through the most cost-effective means and that the regional library has explored and coordinated connections through school districts, post-secondary education, or other governmental agencies;
(3) the regional library system has filed an e-rate application; and
(4) other information, as determined by the commissioner of children, families, and learning, to ensure that connections are coordinated, efficient, and cost-effective; take advantage of discounts; and meet applicable state standards.
The library system may include costs associated with cooperative arrangements with post-secondary institutions, school districts, and other governmental agencies.
Subd. 2. [AWARD OF FUNDS.] The commissioner of children, families, and learning shall develop application and reporting forms and procedures for regional library telecommunications aid. Aid shall be based on actual costs of connections and funds available for this purpose. The commissioner shall make payments directly to the regional public library system.
Sec. 4. [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. [BASIC SUPPORT GRANTS.] For basic support grants according to Minnesota Statutes, sections 134.32 to 134.35:
$8,570,000 . . . . . 2002
$8,570,000 . . . . . 2003
The 2002 appropriation includes $857,000 for 2001 and $7,713,000 for 2002.
The 2003 appropriation includes $857,000 for 2002 and $7,713,000 for 2003.
Subd. 3. [STATE AGENCY LIBRARIES.] For maintaining and upgrading the online computer-based library catalog system in state agency libraries:
$120,000 . . . . . 2002
$120,000 . . . . . 2003
This appropriation is in addition to funding provided in the K-12 education finance omnibus bill for the administrative budget of the department of children, families, and learning.
Any balance in the first year does not cancel but is available in the second year.
Subd. 4. [MULTICOUNTY, MULTITYPE LIBRARY SYSTEMS.] For grants according to Minnesota Statutes, sections 134.353 and 134.354, to multicounty, multitype library systems:
$903,000 . . . . . 2002
$903,000 . . . . . 2003
The 2002 appropriation includes $90,000 for 2001 and $813,000 for 2002.
The 2003 appropriation includes $90,000 for 2002 and $813,000 for 2003.
Any balance in the first year does not cancel but is available in the second year.
Subd. 5. [REGIONAL LIBRARY TELECOMMUNICATIONS AID.] For aid to regional public library systems under Minnesota Statutes, section 134.47:
$2,000,000 . . . . . 2002
$2,000,000 . . . . . 2003
The general fund base for fiscal years 2004 and 2005 is $2,000,000 in each year.
Any balance in the first year does not cancel but is available in the second year.
Sec. 5. [REPEALER.]
(a) Minnesota Statutes 2000, section 125B.20, subdivision 3, is repealed.
(b) Minnesota Rules, parts 3530.2610; 3530.2612; 3530.2614; 3530.2616; 3530.2618; 3530.2620; 3530.2622; 3530.2624; 3530.2626; 3530.2628; 3530.2630; 3530.2632; 3530.2634; 3530.2636; 3530.2638; 3530.2640; 3530.2642; and 3530.2644, are repealed."
Delete the title and insert:
"A bill for an act relating to education; providing for family and early childhood education; modifying Head Start program; consolidating child care assistance programs; modifying early childhood screening, early childhood family education, and school readiness programs; directing allocation of federal child care development funds; consolidating certain advisory councils; establishing youth after-school enrichment program; modifying adult basic education program; requiring a report; making various clarifying and technical changes; appropriating money; amending Minnesota Statutes 2000, sections 119A.12, by adding subdivisions; 119A.13, subdivision 4; 119A.21; 119A.22; 119A.51, by adding a subdivision; 119A.52; 119A.53; 119B.011, subdivisions 5, 7, 11, 12, 15, 18, 19, by adding subdivisions; 119B.02, subdivisions 1, 2, 3, by adding subdivisions; 119B.061, subdivisions 1, 2, 4, 5; 121A.17, subdivision 1; 124D.13, by adding a subdivision; 124D.135, by adding subdivisions; 124D.15, by adding a subdivision; 124D.16, subdivision 2, by adding subdivisions; 124D.19, by adding subdivisions; 124D.20, subdivisions 1, 5, by adding a subdivision; 124D.221, subdivisions 1, 2, by adding a subdivision; 124D.518, subdivision 5; 124D.52, subdivision 2; 124D.522; 124D.531, subdivisions 1, 3, 7; 125A.28; 125B.20, subdivision 1; 134.31, subdivision 5; proposing coding for new law in Minnesota Statutes, chapters 119A; 119B; 134; repealing Minnesota Statutes 2000, sections 119A.13, subdivisions 1, 2, 3; 119A.14, subdivision 2; 119A.23; 119B.011, subdivision 20; 119B.03; 119B.04; 119B.05; 119B.06; 119B.07; 119B.08; 119B.09; 119B.10; 119B.11; 119B.12; 119B.13; 119B.14; 119B.15; 119B.16; 124D.16, subdivision 4; 124D.33; 124D.331; 125B.20, subdivision 3; Minnesota Rules, parts 3530.2610; 3530.2612; 3530.2614; 3530.2616; 3530.2618; 3530.2620; 3530.2622; 3530.2624; 3530.2626; 3530.2628; 3530.2630; 3530.2632; 3530.2634; 3530.2636; 3530.2638; 3530.2640; 3530.2642; 3530.2644."
With the recommendation that when so amended the bill pass and be re-referred to the Committee on Taxes.
Goodno from the Committee on Health and Human Services Finance to which was referred:
H. F. No. 1832, A bill for an act relating to human services; modifying MFIP provisions; modifying sanctions and program eligibility requirements for noncompliant MFIP recipients; establishing hardship extensions; amending Minnesota Statutes 2000, sections 256J.09, subdivisions 2, 3; 256J.15, by adding a subdivision; 256J.24, subdivision 10; 256J.26, subdivision 1; 256J.31, subdivision 4; 256J.42, by adding a subdivision; 256J.44, subdivision 1; 256J.46, subdivisions 1, 2a, by adding a subdivision; 256J.50, subdivisions 1, 7; 256J.56; 256J.57, subdivision 2; 256J.62, subdivision 9; 256J.625, subdivisions 1, 2, 4; 256J.751; proposing coding for new law in Minnesota Statutes, chapter 256J; repealing Minnesota Statutes 2000, sections 256J.42, subdivision 4; 256J.46, subdivision 1a.
Reported the same back with the following amendments:
Delete everything after the enacting clause and insert:
"ARTICLE 1
HEALTH DEPARTMENT
Section 1. Minnesota Statutes 2000, section 103I.101, subdivision 6, is amended to read:
Subd. 6. [FEES FOR VARIANCES.] The commissioner shall charge a nonrefundable application fee of
$120 $150 to cover the administrative cost of processing a request for a variance or modification
of rules adopted by the commissioner under this chapter.
Sec. 2. Minnesota Statutes 2000, section 103I.112, is amended to read:
103I.112 [FEE EXEMPTIONS FOR STATE AND LOCAL GOVERNMENT.]
(a) The commissioner of health may not charge fees required under this chapter to a federal agency, state agency, or a local unit of government or to a subcontractor performing work for the state agency or local unit of government.
(b) "Local unit of government" means a statutory or home rule charter city, town, county, or soil and water conservation district, watershed district, an organization formed for the joint exercise of powers under section 471.59, a board of health or community health board, or other special purpose district or authority with local jurisdiction in water and related land resources management.
Sec. 3. Minnesota Statutes 2000, section 103I.208, subdivision 1, is amended to read:
Subdivision 1. [WELL NOTIFICATION FEE.] The well notification fee to be paid by a property owner is:
(1) for a new well, $120 $150, which includes the state core function fee;
(2) for a well sealing, $20 $30 for each well, which includes the state core function fee, except
that for monitoring wells constructed on a single property, having depths within a 25 foot range, and sealed within
48 hours of start of construction, a single fee of $20 $30; and
(3) for construction of a dewatering well, $120 $150, which includes the state core function fee,
for each well except a dewatering project comprising five or more wells shall be assessed a single fee of $600
$750 for the wells recorded on the notification.
Sec. 4. Minnesota Statutes 2000, section 103I.208, subdivision 2, is amended to read:
Subd. 2. [PERMIT FEE.] The permit fee to be paid by a property owner is:
(1) for a well that is not in use under a maintenance permit, $100 $125 annually;
(2) for construction of a monitoring well, $120 $150, which includes the state core function fee;
(3) for a monitoring well that is unsealed under a maintenance permit, $100 $125 annually;
(4) for monitoring wells used as a leak detection device at a single motor fuel retail outlet, a single petroleum bulk
storage site excluding tank farms, or a single agricultural chemical facility site, the construction permit fee is
$120 $150, which includes the state core function fee, per site regardless of the number of wells
constructed on the site, and the annual fee for a maintenance permit for unsealed monitoring wells is $100
$125 per site regardless of the number of monitoring wells located on site;
(5) for a groundwater thermal exchange device, in addition to the notification fee for wells, $120
$150, which includes the state core function fee;
(6) for a vertical heat exchanger, $120 $150;
(7) for a dewatering well that is unsealed under a maintenance permit, $100 $125 annually for
each well, except a dewatering project comprising more than five wells shall be issued a single permit for
$500 $625 annually for wells recorded on the permit; and
(8) for excavating holes for the purpose of installing elevator shafts, $120 $150 for each hole.
Sec. 5. Minnesota Statutes 2000, section 103I.235, subdivision 1, is amended to read:
Subdivision 1. [DISCLOSURE OF WELLS TO BUYER.] (a) Before signing an agreement to sell or transfer real property, the seller must disclose in writing to the buyer information about the status and location of all known wells on the property, by delivering to the buyer either a statement by the seller that the seller does not know of any wells on the property, or a disclosure statement indicating the legal description and county, and a map drawn from available information showing the location of each well to the extent practicable. In the disclosure statement, the seller must indicate, for each well, whether the well is in use, not in use, or sealed.
(b) At the time of closing of the sale, the disclosure statement information, name and mailing address of the buyer, and the quartile, section, township, and range in which each well is located must be provided on a well disclosure certificate signed by the seller or a person authorized to act on behalf of the seller.
(c) A well disclosure certificate need not be provided if the seller does not know of any wells on the property and the deed or other instrument of conveyance contains the statement: "The Seller certifies that the Seller does not know of any wells on the described real property."
(d) If a deed is given pursuant to a contract for deed, the well disclosure certificate required by this subdivision shall be signed by the buyer or a person authorized to act on behalf of the buyer. If the buyer knows of no wells on the property, a well disclosure certificate is not required if the following statement appears on the deed followed by the signature of the grantee or, if there is more than one grantee, the signature of at least one of the grantees: "The Grantee certifies that the Grantee does not know of any wells on the described real property." The statement and signature of the grantee may be on the front or back of the deed or on an attached sheet and an acknowledgment of the statement by the grantee is not required for the deed to be recordable.
(e) This subdivision does not apply to the sale, exchange, or transfer of real property:
(1) that consists solely of a sale or transfer of severed mineral interests; or
(2) that consists of an individual condominium unit as described in chapters 515 and 515B.
(f) For an area owned in common under chapter 515 or 515B the association or other responsible person must report to the commissioner by July 1, 1992, the location and status of all wells in the common area. The association or other responsible person must notify the commissioner within 30 days of any change in the reported status of wells.
(g) For real property sold by the state under section 92.67, the lessee at the time of the sale is responsible for compliance with this subdivision.
(h) If the seller fails to provide a required well disclosure certificate, the buyer, or a person authorized to act on behalf of the buyer, may sign a well disclosure certificate based on the information provided on the disclosure statement required by this section or based on other available information.
(i) A county recorder or registrar of titles may not record a deed or other instrument of conveyance dated after
October 31, 1990, for which a certificate of value is required under section 272.115, or any deed or other instrument
of conveyance dated after October 31, 1990, from a governmental body exempt from the payment of state deed tax,
unless the deed or other instrument of conveyance contains the statement made in accordance with paragraph (c)
or (d) or is accompanied by the well disclosure certificate containing all the information required by paragraph (b)
or (d). The county recorder or registrar of titles must not accept a certificate unless it contains all the required
information. The county recorder or registrar of titles shall note on each deed or other instrument of conveyance
accompanied by a well disclosure certificate that the well disclosure certificate was received. The notation must
include the statement "No wells on property" if the disclosure certificate states there are no wells on the property.
The well disclosure certificate shall not be filed or recorded in the records maintained by the county recorder or
registrar of titles. After noting "No wells on property" on the deed or other instrument of conveyance, the county
recorder or registrar of titles shall destroy or return to the buyer the well disclosure certificate. The county recorder
or registrar of titles shall collect from the buyer or the person seeking to record a deed or other instrument of
conveyance, a fee of $20 $30 for receipt of a completed well disclosure certificate. By the tenth day
of each month, the county recorder or registrar of titles shall transmit the well disclosure certificates to the
commissioner of health. By the tenth day after the end of each calendar quarter, the county recorder or registrar of
titles shall transmit to the commissioner of health $17.50 $27.50 of the fee for each well disclosure
certificate received during the quarter. The commissioner shall maintain the well disclosure certificate for at least
six years. The commissioner may store the certificate as an electronic image. A copy of that image shall be as valid
as the original.
(j) No new well disclosure certificate is required under this subdivision if the buyer or seller, or a person authorized to act on behalf of the buyer or seller, certifies on the deed or other instrument of conveyance that the status and number of wells on the property have not changed since the last previously filed well disclosure certificate. The following statement, if followed by the signature of the person making the statement, is sufficient to comply with the certification requirement of this paragraph: "I am familiar with the property described in this instrument and I certify that the status and number of wells on the described real property have not changed since the last previously filed well disclosure certificate." The certification and signature may be on the front or back of the deed or on an attached sheet and an acknowledgment of the statement is not required for the deed or other instrument of conveyance to be recordable.
(k) The commissioner in consultation with county recorders shall prescribe the form for a well disclosure certificate and provide well disclosure certificate forms to county recorders and registrars of titles and other interested persons.
(l) Failure to comply with a requirement of this subdivision does not impair:
(1) the validity of a deed or other instrument of conveyance as between the parties to the deed or instrument or as to any other person who otherwise would be bound by the deed or instrument; or
(2) the record, as notice, of any deed or other instrument of conveyance accepted for filing or recording contrary to the provisions of this subdivision.
Sec. 6. Minnesota Statutes 2000, section 103I.525, subdivision 2, is amended to read:
Subd. 2. [APPLICATION FEE.] The application fee for a well contractor's license is $50 $75.
The commissioner may not act on an application until the application fee is paid.
Sec. 7. Minnesota Statutes 2000, section 103I.525, subdivision 6, is amended to read:
Subd. 6. [LICENSE FEE.] The fee for a well contractor's license is $250, except the fee for an individual well
contractor's license is $50 $75.
Sec. 8. Minnesota Statutes 2000, section 103I.525, subdivision 8, is amended to read:
Subd. 8. [RENEWAL.] (a) A licensee must file an application and a renewal application fee to renew the license by the date stated in the license.
(b) The renewal application fee shall be set by the commissioner under section 16A.1285 for a well
contractor's license is $250.
(c) The renewal application must include information that the applicant has met continuing education requirements established by the commissioner by rule.
(d) At the time of the renewal, the commissioner must have on file all properly completed well reports, well sealing reports, reports of excavations to construct elevator shafts, well permits, and well notifications for work conducted by the licensee since the last license renewal.
Sec. 9. Minnesota Statutes 2000, section 103I.525, subdivision 9, is amended to read:
Subd. 9. [INCOMPLETE OR LATE RENEWAL.] If a licensee fails to submit all information required for renewal in subdivision 8 or submits the application and information after the required renewal date:
(1) the licensee must include an additional a late fee set by the commissioner of
$75; and
(2) the licensee may not conduct activities authorized by the well contractor's license until the renewal application, renewal application fee, late fee, and all other information required in subdivision 8 are submitted.
Sec. 10. Minnesota Statutes 2000, section 103I.531, subdivision 2, is amended to read:
Subd. 2. [APPLICATION FEE.] The application fee for a limited well/boring contractor's license is $50
$75. The commissioner may not act on an application until the application fee is paid.
Sec. 11. Minnesota Statutes 2000, section 103I.531, subdivision 6, is amended to read:
Subd. 6. [LICENSE FEE.] The fee for a limited well/boring contractor's license is $50 $75.
Sec. 12. Minnesota Statutes 2000, section 103I.531, subdivision 8, is amended to read:
Subd. 8. [RENEWAL.] (a) A person must file an application and a renewal application fee to renew the limited well/boring contractor's license by the date stated in the license.
(b) The renewal application fee shall be set by the commissioner under section 16A.1285 for a limited
well/boring contractor's license is $75.
(c) The renewal application must include information that the applicant has met continuing education requirements established by the commissioner by rule.
(d) At the time of the renewal, the commissioner must have on file all properly completed well sealing reports, well permits, vertical heat exchanger permits, and well notifications for work conducted by the licensee since the last license renewal.
Sec. 13. Minnesota Statutes 2000, section 103I.531, subdivision 9, is amended to read:
Subd. 9. [INCOMPLETE OR LATE RENEWAL.] If a licensee fails to submit all information required for renewal in subdivision 8 or submits the application and information after the required renewal date:
(1) the licensee must include an additional a late fee set by the commissioner of
$75; and
(2) the licensee may not conduct activities authorized by the limited well/boring contractor's license until the renewal application, renewal application fee, and late fee, and all other information required in subdivision 8 are submitted.
Sec. 14. Minnesota Statutes 2000, section 103I.535, subdivision 2, is amended to read:
Subd. 2. [APPLICATION FEE.] The application fee for an elevator shaft contractor's license is $50
$75. The commissioner may not act on an application until the application fee is paid.
Sec. 15. Minnesota Statutes 2000, section 103I.535, subdivision 6, is amended to read:
Subd. 6. [LICENSE FEE.] The fee for an elevator shaft contractor's license is $50 $75.
Sec. 16. Minnesota Statutes 2000, section 103I.535, subdivision 8, is amended to read:
Subd. 8. [RENEWAL.] (a) A person must file an application and a renewal application fee to renew the license by the date stated in the license.
(b) The renewal application fee shall be set by the commissioner under section 16A.1285 for an
elevator shaft contractor's license is $75.
(c) The renewal application must include information that the applicant has met continuing education requirements established by the commissioner by rule.
(d) At the time of renewal, the commissioner must have on file all reports and permits for elevator shaft work conducted by the licensee since the last license renewal.
Sec. 17. Minnesota Statutes 2000, section 103I.535, subdivision 9, is amended to read:
Subd. 9. [INCOMPLETE OR LATE RENEWAL.] If a licensee fails to submit all information required for renewal in subdivision 8 or submits the application and information after the required renewal date:
(1) the licensee must include an additional a late fee set by the commissioner of
$75; and
(2) the licensee may not conduct activities authorized by the elevator shaft contractor's license until the renewal application, renewal application fee, and late fee, and all other information required in subdivision 8 are submitted.
Sec. 18. Minnesota Statutes 2000, section 103I.541, subdivision 2b, is amended to read:
Subd. 2b. [APPLICATION FEE.] The application fee for a monitoring well contractor registration is $50
$75. The commissioner may not act on an application until the application fee is paid.
Sec. 19. Minnesota Statutes 2000, section 103I.541, subdivision 4, is amended to read:
Subd. 4. [RENEWAL.] (a) A person must file an application and a renewal application fee to renew the registration by the date stated in the registration.
(b) The renewal application fee shall be set by the commissioner under section 16A.1285 for a
monitoring well contractor's registration is $75.
(c) The renewal application must include information that the applicant has met continuing education requirements established by the commissioner by rule.
(d) At the time of the renewal, the commissioner must have on file all well reports, well sealing reports, well permits, and notifications for work conducted by the registered person since the last registration renewal.
Sec. 20. Minnesota Statutes 2000, section 103I.541, subdivision 5, is amended to read:
Subd. 5. [INCOMPLETE OR LATE RENEWAL.] If a registered person submits a renewal application after the required renewal date:
(1) the registered person must include an additional a late fee set by the commissioner
of $75; and
(2) the registered person may not conduct activities authorized by the monitoring well contractor's registration until the renewal application, renewal application fee, late fee, and all other information required in subdivision 4 are submitted.
Sec. 21. Minnesota Statutes 2000, section 103I.545, is amended to read:
103I.545 [REGISTRATION OF DRILLING MACHINES REQUIRED.]
Subdivision 1. [DRILLING MACHINE.] (a) A person may not use a drilling machine such as a cable tool, rotary tool, hollow rod tool, or auger for a drilling activity requiring a license or registration under this chapter unless the drilling machine is registered with the commissioner.
(b) A person must apply for the registration on forms prescribed by the commissioner and submit a $50
$75 registration fee.
(c) A registration is valid for one year.
Subd. 2. [PUMP HOIST.] (a) A person may not use a machine such as a pump hoist for an activity requiring a license or registration under this chapter to repair wells or borings, seal wells or borings, or install pumps unless the machine is registered with the commissioner.
(b) A person must apply for the registration on forms prescribed by the commissioner and submit a $50
$75 registration fee.
(c) A registration is valid for one year.
[EFFECTIVE DATE.] This section is effective July 1, 2002.
Sec. 22. Minnesota Statutes 2000, section 121A.15, subdivision 6, is amended to read:
Subd. 6. [SUSPENSION OF IMMUNIZATION REQUIREMENT; MODIFICATION TO SCHEDULE.] (a) The commissioner of health, on finding that an immunization required pursuant to this section is not necessary to protect the public's health, may suspend for one year the requirement that children receive that immunization.
(b) During portions of the year in which the legislature is not meeting in regular or special session, the commissioner of health may modify the immunization requirements of this section. A modification made under this paragraph must be part of the current immunization recommendations of each of the following organizations: the United States Public Health Service's Advisory Committee on Immunization Practices, the American Academy of Family Physicians, and the American Academy of Pediatrics. The commissioner shall modify the immunization requirements through rulemaking using the expedited process in section 14.389. A rule adopted under this paragraph shall be in effect until the adjournment of the next regular legislative session held after the rule is adopted. The commissioner shall report to the legislature on any rules adopted under this paragraph during the previous calendar year. Such reports are due by January 15 of the year following the calendar year in which the rule is adopted, except that if a rule is adopted in January, a report on that rule is due by February 15 of that year.
Sec. 23. Minnesota Statutes 2000, section 135A.14, is amended by adding a subdivision to read:
Subd. 7. [MODIFICATIONS TO SCHEDULE.] During portions of the year in which the legislature is not meeting in regular or special session, the commissioner of health may modify the immunization requirements of this section. A modification made under this subdivision must be part of the current immunization recommendations of each of the following organizations: the United States Public Health Service's Advisory Committee on Immunization Practices, the American Academy of Family Physicians, and the American Academy of Pediatrics. The commissioner shall modify the immunization requirements through rulemaking using the expedited process in section 14.389. A rule adopted under this subdivision shall be in effect until the adjournment of the next regular legislative session held after the rule is adopted. The commissioner shall report to the legislature on any rules adopted under this subdivision during the previous calendar year. Such reports are due by January 15 of the year following the calendar year in which the rule is adopted, except that if a rule is adopted in January, a report on that rule is due by February 15 of that year.
Sec. 24. Minnesota Statutes 2000, section 144.1202, subdivision 4, is amended to read:
Subd. 4. [AGREEMENT; CONDITIONS OF IMPLEMENTATION.] (a) An agreement entered into before
August 2, 2002 2003, must remain in effect until terminated under the Atomic Energy Act of 1954,
United States Code, title 42, section 2021, paragraph (j). The governor may not enter into an initial agreement with
the Nuclear Regulatory Commission after August 1, 2002 2003. If an agreement is not entered into
by August 1, 2002 2003, any rules adopted under this section are repealed effective August 1,
2002 2003.
(b) An agreement authorized under subdivision 1 must be approved by law before it may be implemented.
Sec. 25. [144.1205] [RADIOACTIVE MATERIAL; SOURCE AND SPECIAL NUCLEAR MATERIAL; FEES; INSPECTION.]
Subdivision 1. [APPLICATION AND LICENSE RENEWAL FEE.] When a license is required for radioactive material or source or special nuclear material by a rule adopted under section 144.1202, subdivision 2, an application fee according to subdivision 4 must be paid upon initial application for a license. The licensee must renew the license 60 days before the expiration date of the license by paying a license renewal fee equal to the application fee under subdivision 4. The expiration date of a license is the date set by the United States Nuclear Regulatory Commission before transfer of the licensing program under section 144.1202 and thereafter as specified by rule of the commissioner of health.
Subd. 2. [ANNUAL FEE.] A licensee must pay an annual fee at least 60 days before the anniversary date of the issuance of the license. The annual fee is an amount equal to 80 percent of the application fee under subdivision 4, rounded to the nearest whole dollar.
Subd. 3. [FEE CATEGORIES; INCORPORATION OF FEDERAL LICENSING CATEGORIES.] (a) Fee categories under this section are equivalent to the licensing categories used by the United States Nuclear Regulatory Commission under Code of Federal Regulations, title 10, parts 30 to 36, 39, 40, 70, 71, and 150, except as provided in paragraph (b).
(b) The category of "Academic, small" is the type of license required for the use of radioactive materials in a teaching institution. Radioactive materials are limited to ten radionuclides not to exceed a total activity amount of one curie.
Subd. 4. [APPLICATION FEE.] A licensee must pay an application fee as follows:
Radioactive material, Application U.S. Nuclear Regulatory
source and fee Commission licensing
special material category as reference
Type A broadscope $20,000 Medical institution type A
Type B broadscope $15,000 Research and development
type B
Type C broadscope $10,000 Academic type C
Medical use $4,000 Medical
Medical institution
Medical private practice
Mobile nuclear
medical laboratory $4,000 Mobile medical laboratory
Medical special use
sealed sources $6,000 Teletherapy
High dose rate remote
afterloaders
Stereotactic
radiosurgery devices
In vitro testing $2,300 In vitro testing
laboratories
Measuring gauge,
sealed sources $2,000 Fixed gauges
Portable gauges
Analytical instruments
Measuring systems - other
Gas chromatographs $1,200 Gas chromatographs
Manufacturing and
distribution $14,700 Manufacturing and
distribution - other
Distribution only $8,800 Distribution of
radioactive material
for commercial use only
Other services $1,500 Other services
Nuclear medicine
pharmacy $4,100 Nuclear pharmacy
Waste disposal $9,400 Waste disposal service
prepackage
Waste disposal service
Waste storage only $7,000 To receive and store
radioactive material waste
Industrial
radiography $8,400 Industrial radiography
fixed location
Industrial radiography
portable/temporary sites
Irradiator -
self-shielded $4,100 Irradiators self-shielded
less than 10,000 curies
Irradiator -
less than 10,000 Ci $7,500 Irradiators less than
10,000 curies
Irradiator -
more than 10,000 Ci $11,500 Irradiators greater than
10,000 curies
Research and
development,
no distribution $4,100 Research and development
Radioactive material
possession only $1,000 By-product possession only
Source material $1,000 Source material shielding
Special nuclear
material, less than
200 grams $1,000 Special nuclear material
plutonium-neutron sources
less than 200 grams
Pacemaker
manufacturing $1,000 Pacemaker by-product
and/or special nuclear
material - medical
institution
General license
distribution $2,100 General license
distribution
General license
distribution, exempt $1,500 General license
distribution -
certain exempt items
Academic, small $1,000 Possession limit of ten
radionuclides, not to
exceed a total of one curie
of activity
Veterinary $2,000 Veterinary use
Well logging $5,000 Well logging
Subd. 5. [PENALTY FOR LATE PAYMENT.] An annual fee or a license renewal fee submitted to the commissioner after the due date specified by rule must be accompanied by an additional amount equal to 25 percent of the fee due.
Subd. 6. [INSPECTIONS.] The commissioner of health shall make periodic safety inspections of the radioactive material and source and special nuclear material of a licensee. The commissioner shall prescribe the frequency of safety inspections by rule.
Subd. 7. [RECOVERY OF REINSPECTION COST.] If the commissioner finds serious violations of public health standards during an inspection under subdivision 6, the licensee must pay all costs associated with subsequent reinspection of the source. The costs shall be the actual costs incurred by the commissioner and include, but are not limited to, labor, transportation, per diem, materials, legal fees, testing, and monitoring costs.
Subd. 8. [RECIPROCITY FEE.] A licensee submitting an application for reciprocal recognition of a materials license issued by another agreement state or the United States Nuclear Regulatory Commission for a period of 180 days or less during a calendar year must pay one-half of the application fee specified under subdivision 4. For a period of 181 days or more, the licensee must pay the entire application fee under subdivision 4.
Subd. 9. [FEES FOR LICENSE AMENDMENTS.] A licensee must pay a fee to amend a license as follows:
(1) to amend a license requiring no license review including, but not limited to, facility name change or removal of a previously authorized user, no fee;
(2) to amend a license requiring review including, but not limited to, addition of isotopes, procedure changes, new authorized users, or a new radiation safety officer, $200; and
(3) to amend a license requiring review and a site visit including, but not limited to, facility move or addition of processes, $400.
[EFFECTIVE DATE.] This section is effective July 1, 2002.
Sec. 26. Minnesota Statutes 2000, section 144.122, is amended to read:
144.122 [LICENSE, PERMIT, AND SURVEY FEES.]
(a) The state commissioner of health, by rule, may prescribe reasonable procedures and fees for filing with the commissioner as prescribed by statute and for the issuance of original and renewal permits, licenses, registrations, and certifications issued under authority of the commissioner. The expiration dates of the various licenses, permits, registrations, and certifications as prescribed by the rules shall be plainly marked thereon. Fees may include application and examination fees and a penalty fee for renewal applications submitted after the expiration date of the previously issued permit, license, registration, and certification. The commissioner may also prescribe, by rule, reduced fees for permits, licenses, registrations, and certifications when the application therefor is submitted during the last three months of the permit, license, registration, or certification period. Fees proposed to be prescribed in the rules shall be first approved by the department of finance. All fees proposed to be prescribed in rules shall be reasonable. The fees shall be in an amount so that the total fees collected by the commissioner will, where practical, approximate the cost to the commissioner in administering the program. All fees collected shall be deposited in the state treasury and credited to the state government special revenue fund unless otherwise specifically appropriated by law for specific purposes.
(b) The commissioner may charge a fee for voluntary certification of medical laboratories and environmental laboratories, and for environmental and medical laboratory services provided by the department, without complying with paragraph (a) or chapter 14. Fees charged for environment and medical laboratory services provided by the department must be approximately equal to the costs of providing the services.
(c) The commissioner may develop a schedule of fees for diagnostic evaluations conducted at clinics held by the services for children with handicaps program. All receipts generated by the program are annually appropriated to the commissioner for use in the maternal and child health program.
(d) The commissioner, for fiscal years 1996 and beyond, shall set license fees for hospitals and nursing
homes that are not boarding care homes at the following levels:
Joint Commission on Accreditation of Healthcare
Organizations (JCAHO hospitals) $1,017
$7,055
Non-JCAHO hospitals $762 plus $34 per bed
$4,680 plus $234 per bed
Nursing home $78 plus $19 per bed
$183 plus $91 per bed
For fiscal years 1996 and beyond, The commissioner shall set license fees for outpatient surgical centers,
boarding care homes, and supervised living facilities at the following levels:
Outpatient surgical centers $517
$1,512
Boarding care homes $78 plus $19 per bed
$183 plus $91 per bed
Supervised living facilities $78 plus $19 per bed
$183 plus $91 per bed.
(e) Unless prohibited by federal law, the commissioner of health shall charge applicants the following fees to cover the cost of any initial certification surveys required to determine a provider's eligibility to participate in the Medicare or Medicaid program:
Prospective payment surveys for $ 900
hospitals
Swing bed surveys for nursing homes $1,200
Psychiatric hospitals $1,400
Rural health facilities $1,100
Portable X-ray providers $ 500
Home health agencies $1,800
Outpatient therapy agencies $ 800
End stage renal dialysis providers $2,100
Independent therapists $ 800
Comprehensive rehabilitation $1,200
outpatient facilities
Hospice providers $1,700
Ambulatory surgical providers $1,800
Hospitals $4,200
Other provider categories or Actual surveyor costs:
additional resurveys required average surveyor cost x
to complete initial certification number of hours for the
survey process.
These fees shall be submitted at the time of the application for federal certification and shall not be refunded. All fees collected after the date that the imposition of fees is not prohibited by federal law shall be deposited in the state treasury and credited to the state government special revenue fund.
Sec. 27. Minnesota Statutes 2000, section 144.226, subdivision 4, is amended to read:
Subd. 4. [VITAL RECORDS SURCHARGE.] In addition to any fee prescribed under subdivision 1, there is a
nonrefundable surcharge of $3 $2 for each certified and noncertified birth or death record, and for
a certification that the record cannot be found. The local or state registrar shall forward this amount to the state
treasurer to be deposited into the state government special revenue fund. This surcharge shall not be charged under
those circumstances in which no fee for a birth or death record is permitted under subdivision 1, paragraph (a).
This surcharge requirement expires June 30, 2002.
Sec. 28. [144.585] [HOSPITAL CHARITY CARE AID.]
Subdivision 1. [PURPOSE.] The purpose of charity care aid is to help offset excess charity care burdens at Minnesota acute care, short-term hospitals.
Subd. 2. [DEFINITIONS.] (a) For purposes of this section, the terms in this subdivision have the meanings given to them.
(b) "Charity care" is the dollar amount of charity care adjustments as determined under subdivision 3.
(c) "Cost-to-charge ratio" means a hospital's total operating expenses over the sum of gross patient revenue and other operating revenue, as reported to the commissioner of health under rules adopted under sections 144.695 to 144.703. The commissioner shall use the most recently available data to calculate the cost-to-charge ratio.
Subd. 3. [CHARITY CARE REPORTING.] (a) For a hospital to report amounts as charity care adjustments, the hospital:
(1) must generate and record a charge;
(2) have a policy on the provision of charity care and must communicate the policy to the public;
(3) have made a reasonable effort to identify a third party payer, encourage the patient to enroll in public programs, and should, to the extent possible, aid the patient in the enrollment process; and
(4) ensure that the patient meets the charity care criteria of this subdivision, which must be consistent with statewide income standards set out in paragraph (c).
(b) In determining whether to classify care as charity care, the hospital must consider the following:
(1) charity care may include services which the provider is obligated to render independently of the ability to collect;
(2) charity care may include care provided to low-income patients who meet the charity care income standards under paragraph (c) and have partial coverage, but are unable to pay the remainder of their medical bills. This does not apply to that portion of the bill which has been determined to be the patient's responsibility after a partial charity care classification;
(3) charity care may include care provided to low-income patients who may qualify for a public health insurance program and meet the statewide eligibility criteria for charity care, but who do not complete the application process for public insurance despite the facility's best efforts;
(4) charity care may include care to individuals whose eligibility for charity care was determined through third party services employed by the hospital for information gathering purposes only;
(5) charity care may not include contractual allowances, which is the difference between gross charges and payments received under contractual arrangements with insurance companies and payers;
(6) charity care may not include bad debt;
(7) charity care may not include what may be perceived as underpayments for operating public programs;
(8) charity care may not include cases which are paid through a charitable contribution through a third party or facility-related foundation;
(9) charity care may not include unreimbursed costs of basic or clinical research and of professional education and training;
(10) charity care may not include professional courtesy discounts;
(11) charity care may not include community service or outreach activities; and
(12) charity care may not include services for patients against whom collection actions where taken which result in a credit report.
(c) The hospital must use the income standards in this paragraph for determining charity care eligibility for reporting purposes. The hospital does not need to make a patient asset determination in order to apply charity care income standards.
(1) Care to a patient with a family income at or below 150 percent of the Federal Poverty Guideline (FPG) may be reported as full charity care or free care.
(2) The hospital's share of discounted charges for care to a patient with family income below 275 percent of the FPG qualifies for classification as charity care. The following sliding fee schedules apply:
income as charges paid corresponding
% of FPG by patient charity care
151-200% 20% 80%
201-225% 40% 60%
226-250% 60% 40%
251-275% 80% 20%
(3) Care to a patient is considered medical hardship when qualified medical expenses, as defined for the purposes of federal income tax deductibility, exceeds 30 percent of family income. Qualified medical expenses may be counted as charity care in the amount that exceeds 30 percent of family income. This clause applies even if the patient's family income exceeds the charity care income standards in clauses (1) and (2).
Subd. 4. [APPLICATION.] To be eligible for funds under this section, hospitals must submit an application to the commissioner of health by the deadline established by the commissioner. Applications must meet the criteria as established by the commissioner, but must contain:
(1) the dollar amount of charity care in the previous year, as defined in subdivision 3, paragraphs (b) and (c);
(2) a list with the most common diagnoses for which charity care is provided; and
(3) descriptive aggregate statistics of the characteristics of patients who receive charity care.
Subd. 5. [ALLOCATION OF FUNDS.] A hospital's share of the available charity care aid is equal to that hospital's share of charity care relative to the total charity care provided by applicants.
Sec. 29. Minnesota Statutes 2000, section 144.98, subdivision 3, is amended to read:
Subd. 3. [FEES.] (a) An application for certification under subdivision 1 must be accompanied by the biennial fee specified in this subdivision. The fees are for:
(1) nonrefundable base certification fee, $500 $1,200; and
(2) test category certification fees:
Test Category Certification Fee
Clean water program bacteriology $200 $600
Safe drinking water program bacteriology $600
Clean water program inorganic chemistry,
fewer than four constituents $100$600
Safe drinking water program inorganic chemistry,
four or more constituents $300$600
Clean water program chemistry metals,
fewer than four constituents $200$800
Safe drinking water program chemistry metals,
four or more constituents $500$800
Resource conservation and recovery program
chemistry metals $800
Clean water program volatile organic compounds$600 $1,200
Safe drinking water program
volatile organic compounds $1,200
Resource conservation and recovery program
volatile organic compounds $1,200
Underground storage tank program
volatile organic compounds $1,200
Clean water program other organic compounds $600 $1,200
Safe drinking water program other organic compounds $1,200
Resource conservation and recovery program
other organic compounds $1,200
(b) The total biennial certification fee is the base fee plus the applicable test category fees. The biennial
certification fee for a contract laboratory is 1.5 times the total certification fee.
(c) Laboratories located outside of this state that require an on-site survey will be assessed an additional
$1,200 $2,500 fee.
(d) Fees must be set so that the total fees support the laboratory certification program. Direct costs of the certification service include program administration, inspections, the agency's general support costs, and attorney general costs attributable to the fee function.
(e) A change fee shall be assessed if a laboratory requests additional analytes or methods at any time other than when applying for or renewing its certification. The change fee is equal to the test category certification fee for the analyte.
(f) A variance fee shall be assessed if a laboratory requests and is granted a variance from a rule adopted under this section. The variance fee is $500 per variance.
(g) Refunds or credits shall not be made for analytes or methods requested but not approved.
(h) Certification of a laboratory shall not be awarded until all fees are paid.
Sec. 30. Minnesota Statutes 2000, section 144A.44, subdivision 1, is amended to read:
Subdivision 1. [STATEMENT OF RIGHTS.] A person who receives home care services has these rights:
(1) the right to receive written information about rights in advance of receiving care or during the initial evaluation visit before the initiation of treatment, including what to do if rights are violated;
(2) the right to receive care and services according to a suitable and up-to-date plan, and subject to accepted medical or nursing standards, to take an active part in creating and changing the plan and evaluating care and services;
(3) the right to be told in advance of receiving care about the services that will be provided, the disciplines that will furnish care, the frequency of visits proposed to be furnished, other choices that are available, and the consequences of these choices including the consequences of refusing these services;
(4) the right to be told in advance of any change in the plan of care and to take an active part in any change;
(5) the right to refuse services or treatment;
(6) the right to know, in advance, any limits to the services available from a provider, and the provider's grounds for a termination of services;
(7) the right to know in advance of receiving care whether the services are covered by health insurance, medical assistance, or other health programs, the charges for services that will not be covered by Medicare, and the charges that the individual may have to pay;
(8) the right to know what the charges are for services, no matter who will be paying the bill;
(9) the right to know that there may be other services available in the community, including other home care services and providers, and to know where to go for information about these services;
(10) the right to choose freely among available providers and to change providers after services have begun, within the limits of health insurance, medical assistance, or other health programs;
(11) the right to have personal, financial, and medical information kept private, and to be advised of the provider's policies and procedures regarding disclosure of such information;
(12) the right to be allowed access to records and written information from records in accordance with section 144.335;
(13) the right to be served by people who are properly trained and competent to perform their duties;
(14) the right to be treated with courtesy and respect, and to have the patient's property treated with respect;
(15) the right to be free from physical and verbal abuse;
(16) the right to reasonable, advance notice of changes in services or charges, including at least ten days' advance notice of the termination of a service by a provider, except in cases where:
(i) the recipient of services engages in conduct that alters the conditions of employment as specified in the employment contract between the home care provider and the individual providing home care services, or creates an abusive or unsafe work environment for the individual providing home care services; or
(ii) an emergency for the informal caregiver or a significant change in the recipient's condition has resulted in service needs that exceed the current service provider agreement and that cannot be safely met by the home care provider;
(17) the right to a coordinated transfer when there will be a change in the provider of services;
(18) the right to voice grievances regarding treatment or care that is, or fails to be, furnished, or regarding the lack of courtesy or respect to the patient or the patient's property;
(19) the right to know how to contact an individual associated with the provider who is responsible for handling problems and to have the provider investigate and attempt to resolve the grievance or complaint;
(20) the right to know the name and address of the state or county agency to contact for additional information or assistance; and
(21) the right to assert these rights personally, or have them asserted by the patient's family or guardian when the patient has been judged incompetent, without retaliation.
Sec. 31. [145.4241] [DEFINITIONS.]
Subdivision 1. [APPLICABILITY.] As used in sections 145.4241 to 145.4246, the following terms have the meaning given them.
Subd. 2. [ABORTION.] "Abortion" means the use or prescription of any instrument, medicine, drug, or any other substance or device to intentionally terminate the pregnancy of a female known to be pregnant, with an intention other than to increase the probability of a live birth, to preserve the life or health of the child after live birth, or to remove a dead fetus.
Subd. 3. [ATTEMPT TO PERFORM AN ABORTION.] "Attempt to perform an abortion" means an act, or an omission of a statutorily required act, that, under the circumstances as the actor believes them to be, constitutes a substantial step in a course of conduct planned to culminate in the performance of an abortion in Minnesota in violation of sections 145.4241 to 145.4246.
Subd. 4. [MEDICAL EMERGENCY.] "Medical emergency" means any condition that, on the basis of the physician's good faith clinical judgment, complicates the medical condition of a pregnant female to the extent that:
(1) an immediate abortion of her pregnancy is necessary to avert her death; or
(2) a 24-hour delay in performing an abortion creates a serious risk of substantial and irreversible impairment of a major bodily function.
Subd. 5. [PHYSICIAN.] "Physician" means a person licensed under chapter 147.
Subd. 6. [PROBABLE GESTATIONAL AGE OF THE UNBORN CHILD.] "Probable gestational age of the unborn child" means what will, in the judgment of the physician, with reasonable probability, be the gestational age of the unborn child at the time the abortion is planned to be performed.
Sec. 32. [145.4242] [INFORMED CONSENT.]
No abortion shall be performed in this state except with the voluntary and informed consent of the female upon whom the abortion is to be performed. Except in the case of a medical emergency, consent to an abortion is voluntary and informed only if:
(1) the female is told the following, by telephone or in person, by the physician who is to perform the abortion or by a referring physician, at least 24 hours before the abortion:
(i) the name of the physician who will perform the abortion;
(ii) the particular medical risks associated with the particular abortion procedure to be employed including, when medically accurate, the risks of infection, hemorrhage, breast cancer, danger to subsequent pregnancies, and infertility;
(iii) the probable gestational age of the unborn child at the time the abortion is to be performed; and
(iv) the medical risks associated with carrying her child to term.
The information required by this clause may be provided by telephone without conducting a physical examination or tests of the patient, in which case the information required to be provided may be based on facts supplied the physician by the female and whatever other relevant information is reasonably available to the physician. It may not be provided by a tape recording, but must be provided during a consultation in which the physician is able to ask questions of the female and the female is able to ask questions of the physician. If a physical examination, tests, or the availability of other information to the physician subsequently indicate, in the medical judgment of the physician, a revision of the information previously supplied to the patient, that revised information may be communicated to the patient at any time prior to the performance of the abortion. Nothing in this section may be construed to preclude provision of required information in a language understood by the patient through a translator;
(2) the female is informed, by telephone or in person, by the physician who is to perform the abortion, by a referring physician, or by an agent of either physician at least 24 hours before the abortion:
(i) that medical assistance benefits may be available for prenatal care, childbirth, and neonatal care;
(ii) that the father is liable to assist in the support of her child, even in instances when the father has offered to pay for the abortion; and
(iii) that she has the right to review the printed materials described in section 145.4243. The physician or the physician's agent shall orally inform the female that the materials have been provided by the state of Minnesota and that they describe the unborn child and list agencies that offer alternatives to abortion. If the female chooses to view the materials, they shall either be given to her at least 24 hours before the abortion or mailed to her at least 72 hours before the abortion by certified mail, restricted delivery to addressee, which means the postal employee can only deliver the mail to the addressee.
The information required by this clause may be provided by a tape recording if provision is made to record or otherwise register specifically whether the female does or does not choose to review the printed materials;
(3) the female certifies in writing, prior to the abortion, that the information described in this section has been furnished her, and that she has been informed of her opportunity to review the information referred to in clause (2); and
(4) prior to the performance of the abortion, the physician who is to perform the abortion or the physician's agent receives a copy of the written certification prescribed by clause (3).
Sec. 33. [145.4243] [PRINTED INFORMATION.]
(a) Within 90 days after the effective date of sections 145.4241 to 145.4246, the department of health shall cause to be published, in English and in each language that is the primary language of two percent or more of the state's population, the following printed materials in such a way as to ensure that the information is easily comprehensible:
(1) geographically indexed materials designed to inform the female of public and private agencies and services available to assist a female through pregnancy, upon childbirth, and while the child is dependent, including adoption agencies, which shall include a comprehensive list of the agencies available, a description of the services they offer, and a description of the manner, including telephone numbers, in which they might be contacted or, at the option of the department of health, printed materials including a toll-free, 24-hours-a-day telephone number that may be called to obtain, orally, such a list and description of agencies in the locality of the caller and of the services they offer; and
(2) materials designed to inform the female of the probable anatomical and physiological characteristics of the unborn child at two-week gestational increments from the time when a female can be known to be pregnant to full term, including any relevant information on the possibility of the unborn child's survival and pictures or drawings representing the development of unborn children at two-week gestational increments, provided that any such pictures or drawings must contain the dimensions of the fetus and must be realistic and appropriate for the stage of pregnancy depicted. The materials shall be objective, nonjudgmental, and designed to convey only accurate scientific information about the unborn child at the various gestational ages. The material shall also contain objective information describing the methods of abortion procedures commonly employed, the medical risks commonly associated with each procedure, the possible detrimental psychological effects of abortion, the medical risks commonly associated with each procedure, and the medical risks commonly associated with carrying a child to term.
(b) The materials referred to in this section must be printed in a typeface large enough to be clearly legible. The materials required under this section must be available at no cost from the department of health upon request and in appropriate number to any person, facility, or hospital.
Sec. 34. [145.4244] [PROCEDURE IN CASE OF MEDICAL EMERGENCY.]
When a medical emergency compels the performance of an abortion, the physician shall inform the female, prior to the abortion if possible, of the medical indications supporting the physician's judgment that an abortion is necessary to avert her death or that a 24-hour delay in conformance with section 145.4242 creates a serious risk of substantial and irreversible impairment of a major bodily function.
Sec. 35. [145.4245] [REMEDIES.]
Subdivision 1. [CIVIL REMEDIES.] Any person upon whom an abortion has been performed or the parent of a minor upon whom an abortion has been performed may maintain an action against the person who performed the abortion in knowing or reckless violation of sections 145.4241 to 145.4246 for actual and punitive damages. Any person upon whom an abortion has been attempted without complying with sections 145.4241 to 145.4246 may maintain an action against the person who attempted to perform the abortion in knowing or reckless violation of sections 145.4241 to 145.4246 for actual and punitive damages.
Subd. 2. [ATTORNEY FEES.] If judgment is rendered in favor of the plaintiff in any action described in this section, the court shall also render judgment for a reasonable attorney's fee in favor of the plaintiff against the defendant. If judgment is rendered in favor of the defendant and the court finds that the plaintiff's suit was frivolous and brought in bad faith, the court shall also render judgment for a reasonable attorney's fee in favor of the defendant against the plaintiff.
Subd. 3. [PROTECTION OF PRIVACY IN COURT PROCEEDINGS.] In every civil action brought
under sections 145.4241 to 145.4246, the court shall rule whether the anonymity of any female upon whom an
abortion has been performed or attempted shall be preserved from public disclosure if she does not give her consent
to such
disclosure. The court, upon motion or sua sponte, shall make such a ruling and, upon determining that her anonymity should be preserved, shall issue orders to the parties, witnesses, and counsel and shall direct the sealing of the record and exclusion of individuals from courtrooms or hearing rooms to the extent necessary to safeguard her identity from public disclosure. Each order must be accompanied by specific written findings explaining why the anonymity of the female should be preserved from public disclosure, why the order is essential to that end, how the order is narrowly tailored to serve that interest, and why no reasonable, less restrictive alternative exists. In the absence of written consent of the female upon whom an abortion has been performed or attempted, anyone, other than a public official, who brings an action under subdivision 1, shall do so under a pseudonym. This section may not be construed to conceal the identity of the plaintiff or of witnesses from the defendant.
Sec. 36. [145.4246] [SEVERABILITY.]
If any one or more provision, section, subsection, sentence, clause, phrase, or word of sections 145.4241 to 145.4246 or the application thereof to any person or circumstance is found to be unconstitutional, the same is hereby declared to be severable and the balance of sections 145.4241 to 145.4246 shall remain effective notwithstanding such unconstitutionality. The legislature hereby declares that it would have passed sections 145.4241 to 145.4246, and each provision, section, subsection, sentence, clause, phrase, or word thereof, irrespective of the fact that any one or more provision, section, subsection, sentence, clause, phrase, or word be declared unconstitutional.
Sec. 37. Minnesota Statutes 2000, section 145.881, subdivision 2, is amended to read:
Subd. 2. [DUTIES.] The advisory task force shall meet on a regular basis to perform the following duties:
(a) review and report on the health care needs of mothers and children throughout the state of Minnesota;
(b) review and report on the type, frequency and impact of maternal and child health care services provided to mothers and children under existing maternal and child health care programs, including programs administered by the commissioner of health;
(c) establish, review, and report to the commissioner a list of program guidelines and criteria which the advisory task force considers essential to providing an effective maternal and child health care program to low income populations and high risk persons and fulfilling the purposes defined in section 145.88;
(d) review staff recommendations of the department of health regarding maternal and child health grant awards before the awards are made;
(e) make recommendations to the commissioner for the use of other federal and state funds available to meet maternal and child health needs;
(f) make recommendations to the commissioner of health on priorities for funding the following maternal and
child health services: (1) prenatal, delivery and postpartum care, (2) comprehensive health care for children,
especially from birth through five years of age, (3) adolescent health services, (4) family planning services, (5)
preventive dental care, (6) special services for chronically ill and handicapped children and (7) any other services
which promote the health of mothers and children; and
(g) make recommendations to the commissioner of health on the process to distribute, award and administer the maternal and child health block grant funds; and
(h) review the measures that are used to define the variables of the funding distribution formula in section 145.882, subdivision 4a, every two years and make recommendations to the commissioner of health for changes based upon principles established by the advisory task force for this purpose.
Sec. 38. Minnesota Statutes 2000, section 145.882, is amended by adding a subdivision to read:
Subd. 4a. [ALLOCATION TO COMMUNITY HEALTH BOARDS.] (a) Federal maternal and child health block grant money remaining after distributions made under subdivision 2 and money appropriated for allocation to community health boards must be allocated according to paragraphs (b) to (d) to community health boards as defined in section 145A.02, subdivision 5.
(b) All community health boards must receive 95 percent of the funding awarded to them for the 1998-1999 funding cycle. If the amount of state and federal funding available is less than 95 percent of the amount awarded to community health boards for the 1998-1999 funding cycle, the available funding must be apportioned to reflect a proportional decrease for each recipient.
(c) The federal and state funding remaining after distributions made under paragraph (b) must be allocated to each community health board based on the following three variables:
(1) 25 percent based on the maternal and child population in the area served by the community health board;
(2) 50 percent based on the following factors, as determined by averaging the data available for the three most recent years:
(i) the proportion of infants in the area served by the community health board whose weight at birth was less than 2,500 grams;
(ii) the proportion of mothers in the area served by the community health board who received inadequate or no prenatal care;
(iii) the proportion of births in the area served by the community health board to women under age 19; and
(iv) the proportion of births in the area served by the community health board to American Indian women and women of color; and
(3) 25 percent based on the income of the maternal and child population in the area served by the community health board.
(d) Each variable must be expressed as a city or county score consisting of the city or county frequency of each variable in relation to the statewide frequency of the variable. A total score for each city or county jurisdiction must be computed by totaling the scores of the three variables. Each community health board must be allocated an amount equal to the total score obtained for the city, county, or counties in its area multiplied by the amount of money available.
Sec. 39. Minnesota Statutes 2000, section 145.882, subdivision 7, is amended to read:
Subd. 7. [USE OF BLOCK GRANT MONEY.] (a) Maternal and child health block grant money
allocated to a community health board or community health services area under this section must be used for
qualified programs for high risk and low-income individuals. Block grant money must be used for programs that:
(1) specifically address the highest risk populations, particularly low-income and minority groups with a high rate
of infant mortality and children with low birth weight, by providing services, including excluding
prepregnancy family planning services, calculated to produce measurable decreases in infant mortality rates,
instances of children with low birth weight, and medical complications associated with pregnancy and childbirth,
including infant mortality, low birth rates, and medical complications arising from chemical abuse by a mother
during pregnancy;
(2) specifically target pregnant women whose age, medical condition, maternal history, or chemical abuse substantially increases the likelihood of complications associated with pregnancy and childbirth or the birth of a child with an illness, disability, or special medical needs;
(3) specifically address the health needs of young children who have or are likely to have a chronic disease or disability or special medical needs, including physical, neurological, emotional, and developmental problems that arise from chemical abuse by a mother during pregnancy;
(4) provide family planning and preventive medical care, excluding prepregnancy family planning
services, for specifically identified target populations, such as minority and low-income teenagers, in a manner
calculated to decrease the occurrence of inappropriate pregnancy and minimize the risk of complications
associated with pregnancy and childbirth; or
(5) specifically address the frequency and severity of childhood injuries and other child and adolescent health
problems in high-risk target populations by providing services, excluding prepregnancy family
planning services, calculated to produce measurable decreases in mortality and morbidity. However, money
may be used for this purpose only if the community health board's application includes program components for the
purposes in clauses (1) to (4) in the proposed geographic service area and the total expenditure for injury-related
programs under this clause does not exceed ten percent of the total allocation under subdivision 3.
(b) Maternal and child health block grant money may be used for purposes other than the purposes listed in
this subdivision only under the following conditions:
(1) the community health board or community health services area can demonstrate that existing programs
fully address the needs of the highest risk target populations described in this subdivision; or
(2) the money is used to continue projects that received funding before creation of the maternal and child
health block grant in 1981.
(c) Projects that received funding before creation of the maternal and child health block grant in 1981, must
be allocated at least the amount of maternal and child health special project grant funds received in 1989, unless (1)
the local board of health provides equivalent alternative funding for the project from another source; or (2) the local
board of health demonstrates that the need for the specific services provided by the project has significantly decreased
as a result of changes in the demographic characteristics of the population, or other factors that have a major impact
on the demand for services. If the amount of federal funding to the state for the maternal and child health block
grant is decreased, these projects must receive a proportional decrease as required in subdivision 1. Increases in
allocation amounts to local boards of health under subdivision 4 may be used to increase funding levels for these
projects.
Sec. 40. Minnesota Statutes 2000, section 145.885, subdivision 2, is amended to read:
Subd. 2. [ADDITIONAL REQUIREMENTS FOR COMMUNITY BOARDS OF HEALTH.] Applications by
community health boards as defined in section 145A.02, subdivision 5, under section 145.882, subdivision 3
4a, must also contain a summary of the process used to develop the local program, including evidence that
the community health board notified local public and private providers of the availability of funding through the
community health board for maternal and child health services; a list of all public and private agency requests for
grants submitted to the community health board indicating which requests were included in the grant application;
and an explanation of how priorities were established for selecting the requests to be included in the grant
application. The community health board shall include, with the grant application, a written statement of the criteria
to be applied to public and private agency requests for funding.
Sec. 41. Minnesota Statutes 2000, section 145.924, is amended to read:
145.924 [AIDS PREVENTION GRANTS.]
Subdivision 1. [GRANT AWARDS.] (a) The commissioner may award grants to boards of health as defined in section 145A.02, subdivision 2, state agencies, state councils, or nonprofit corporations to provide evaluation and counseling services to populations at risk for acquiring human immunodeficiency virus infection, including, but not limited to, minorities, adolescents, intravenous drug users, and homosexual men.
(b) The commissioner may award grants to agencies experienced in providing services to communities of color, for the design of innovative outreach and education programs for targeted groups within the community who may be at risk of acquiring the human immunodeficiency virus infection, including intravenous drug users and their partners, adolescents, gay and bisexual individuals and women. Grants shall be awarded on a request for proposal basis and shall include funds for administrative costs. Priority for grants shall be given to agencies or organizations that have experience in providing service to the particular community which the grantee proposes to serve; that have policymakers representative of the targeted population; that have experience in dealing with issues relating to HIV/AIDS; and that have the capacity to deal effectively with persons of differing sexual orientations. For purposes of this paragraph, the "communities of color" are: the American-Indian community; the Hispanic community; the African-American community; and the Asian-Pacific community.
(c) All state grants awarded under this section subdivision for programs targeted to adolescents
shall include the promotion of abstinence from sexual activity and drug use.
Subd. 2. [OUTCOMES.] The commissioner, in consultation with boards of health, agencies, councils, and nonprofit organizations involved in human immunodeficiency virus infection prevention efforts shall establish measurable outcomes to determine the effectiveness of the grants provided under this section in reducing the number of people who acquire human immunodeficiency virus, the rates of infection, and average numbers of sexual partners for populations served by grants funded under this section.
Subd. 3. [EVALUATION.] (a) Using the outcomes established according to subdivision 2, the commissioner shall conduct a biennial evaluation of activities funded under this section. The evaluation must include:
(1) the effect of these activities on the number of people who acquire human immunodeficiency virus and the rates of infection;
(2) the effect of these activities on average numbers of sexual partners for populations served by grants funded under this section; and
(3) a longitudinal tracking of outcomes for targeted populations who are served under subdivision 1, paragraphs (a) and (b).
(b) Grant recipients shall cooperate with the commissioner in the evaluation and shall provide the commissioner with the information needed to conduct the evaluation. Beginning January 15, 2003, the results of each evaluation must be submitted to the chairs of the policy and finance committees in the house and senate with jurisdiction over health and human services.
Sec. 42. Minnesota Statutes 2000, section 145.925, subdivision 1, is amended to read:
Subdivision 1. [ELIGIBLE ORGANIZATIONS; PURPOSE.] The commissioner of health may make special
grants to cities, counties, tribal governments, or groups of cities or, counties, or
nonprofit corporations or tribal governments to provide prepregnancy family planning services.
targeted to low-income and minority populations. A city, county, tribal government, or group of cities, counties,
or tribal governments that receives a grant is responsible for ensuring that the grant funds are used for services
targeted to low-income and minority populations,
and must establish a goal for reducing specific pregnancy rates in the service area. In determining populations to serve and services to provide, a city, county, tribal government, or group of cities, counties, or tribal governments must consider the spacing of pregnancies in low-income and minority populations in the service area, teen birth rates in the service area, and the needs of populations of color in the service area. A city, county, tribal government, or group of cities, counties, or tribal governments may contract for the provision of prepregnancy family planning services using grant funds provided under this section only if the contract is specifically authorized by the governing body of the city, county, or tribal government that is contracting for the services.
Any organization or an affiliate of an organization which provides abortions, promotes abortions, or directly refers for abortions, shall be ineligible to receive funds under this subdivision.
Sec. 43. Minnesota Statutes 2000, section 145.925, subdivision 1a, is amended to read:
Subd. 1a. [FAMILY PLANNING SERVICES; DEFINED.] "Family planning services" means counseling by
trained personnel regarding family planning; distribution of information relating to family planning, referral to
licensed physicians or local health agencies for consultation, examination, medical treatment, genetic counseling,
and prescriptions for the purpose of family planning; and the distribution of family planning products, such as charts,
thermometers, drugs, medical preparations, and contraceptive devices. Family planning services do not include
services that, directly or indirectly, encourage, counsel, refer, or provide abortions or abortion referrals. For
purposes of sections 145A.01 to 145A.14, family planning shall mean voluntary action by individuals to prevent or
aid conception but does not include the performance, or make referrals for encouragement of voluntary
termination of pregnancy services that, directly or indirectly, encourage, counsel, refer, or provide abortions
or abortion referrals.
Sec. 44. [145.9257] [TEEN PREGNANCY PREVENTION.]
Subdivision 1. [GOAL.] It is the goal of the state to reduce teen pregnancy rates by 24 percent by 2006. To do so, the commissioner of health shall establish a grant program to reduce the rates of unintended teen pregnancies in the state. If this goal of reducing teen pregnancy rates by 24 percent is not met by December 31, 2006, this section expires June 30, 2007. No funds awarded under this section may be used for medical services or family planning services or for services that, directly or indirectly, encourage, counsel, refer, or provide abortions or abortion referrals.
Any organization or an affiliate of an organization which provides abortions, promotes abortions, or directly refers for abortions, shall be ineligible to receive funds under this section.
Subd. 2. [STATE-COMMUNITY PARTNERSHIPS; PLAN.] The commissioner, in consultation with the commissioner of children, families, and learning; the commissioner of human services; the maternal and child health advisory task force under section 145.881; the Indian affairs council under section 3.922; the council on affairs of Chicano/Latino people under section 3.9223; the council on Black Minnesotans under section 3.9225; the council on Asian-Pacific Minnesotans under section 3.9226; community health boards as defined in section 145A.02; tribal governments; nonprofit community organizations; and others interested in teen pregnancy prevention, shall develop and implement a comprehensive, coordinated plan to reduce the number of teen pregnancies.
Subd. 3. [MEASURABLE OUTCOMES.] The commissioner, in consultation with the commissioners and community partners listed in subdivision 2, shall establish measurable outcomes to achieve the goal specified in subdivision 1 and to determine the effectiveness of the grants provided under this section in reducing teen pregnancies. The development of measurable outcomes must be completed before any funds are distributed under this section.
Subd. 4. [STATEWIDE ASSESSMENT.] The commissioner shall use and enhance current statewide assessments of teen pregnancy risk behaviors and attitudes among youth to establish a baseline to measure the statewide effect of teen pregnancy prevention activities. To the extent feasible, the commissioner shall conduct the assessment so that the results may be compared to national data.
Subd. 5. [PROCESS.] The commissioner, in consultation with the commissioners and community partners listed in subdivision 2, shall develop the criteria and procedures used to allocate grants under this section. In developing the criteria, the commissioner shall establish an administrative cost limit for grant recipients. At the time a grant is awarded, the commissioner shall provide a grant recipient with information on the outcomes established according to subdivision 3.
Subd. 6. [TEEN PREGNANCY PREVENTION DISPARITY GRANTS.] (a) The commissioner shall award competitive grants to eligible applicants for projects to reduce disparities in unintended teen pregnancy rates for American Indians and populations of color, as compared with unintended teen pregnancy rates for whites.
(b) No funds awarded under this subdivision may be used for medical services or family planning services or for services that, directly or indirectly, encourage, counsel, refer, or provide abortions or abortion referrals.
Any organization or an affiliate of an organization which provides abortions, promotes abortions, or directly refers for abortions, shall be ineligible to receive funds under this subdivision.
(c) Eligible applicants may include, but are not limited to, nonprofit organizations, school districts, faith-based organizations, community health boards, and tribal governments. Applicants must submit proposals to the commissioner. A proposal must specify the strategies to be implemented and must take into account the need for a coordinated, statewide teen pregnancy prevention effort. Strategies may include youth development programs, after-school enrichment programs, youth mentoring programs, academic support programs, and abstinence until marriage education programs.
(d) The commissioner shall give priority to applicants who demonstrate that their proposed project:
(1) emphasizes abstinence until marriage;
(2) is research-based or based on proven, effective strategies;
(3) is designed to coordinate with related youth risk behavior reduction activities;
(4) involves youth and parents in the project's development and implementation;
(5) reflects racially and ethnically appropriate approaches; and
(6) will be implemented through or with persons or community-based organizations that reflect the race or ethnicity of the population to be reached.
Subd. 7. [HIGH-RISK COMMUNITY TEEN PREGNANCY PREVENTION GRANTS.] (a) The commissioner shall award grants to communities that have significant risk factors for teen pregnancies, that currently have in place youth development programs, and that are interested in expanding existing efforts to prevent teen pregnancies.
(b) No funds awarded under this subdivision may be used for medical services or family planning services or for services that, directly or indirectly, encourage, counsel, refer, or provide abortions or abortion referrals.
Any organization or an affiliate of an organization which provides abortions, promotes abortions, or directly refers for abortions, shall be ineligible to receive funds under this subdivision.
(c) To be eligible for a grant under this subdivision, an applicant must be a tribal government or a community health board as defined in section 145A.02. Applicants must submit proposals to the commissioner. A proposal must specify the strategies to be implemented. Strategies may include, but are not limited to, youth development programs, youth mentoring programs, academic support programs, and abstinence until marriage education programs. Applicants must demonstrate that a proposed project:
(1) emphasizes abstinence until marriage;
(2) is research-based or based on proven, effective strategies;
(3) is designed to coordinate with related youth risk behavior reduction activities;
(4) involves youth and parents in the project's development and implementation;
(5) reflects racially and ethnically appropriate approaches; and
(6) will be implemented through or with persons or community-based organizations that reflect the race or ethnicity of the population to be reached.
(d) Grants may be awarded to up to 15 community health boards and three tribal governments based on areas having the highest risk factors for teen pregnancies. The commissioner shall award grants based on the following risk factors:
(1) the proportion of teens in the applicant's service area who are sexually active;
(2) the proportion of births to teens in the applicant's service area; and
(3) the proportion of births to teens who are American Indian or of a population of color in the applicant's service area.
Subd. 8. [ADOLESCENT PARENT GRANTS.] The commissioner shall transfer funds to the commissioner of children, families, and learning to increase the number of adolescent parent grants currently provided by the commissioner of children, families, and learning under section 124D.33.
Subd. 9. [COORDINATION.] The commissioner shall coordinate the projects and initiatives funded under this section with other efforts at the local, state, and national levels to avoid duplication and promote complementary efforts.
Subd. 10. [EVALUATION.] Using the outcomes established according to subdivision 3, the commissioner shall conduct a biennial evaluation of the impact of each teen pregnancy prevention initiative in this section. Grant recipients and the commissioner of children, families, and learning shall cooperate with the commissioner in the evaluation and shall provide the commissioner with the information needed to conduct the evaluation.
Subd. 11. [REPORT.] By January 15, 2002, and January 15 of each even-numbered year thereafter, the commissioner shall submit a report to the legislature on the projects funded under this section and the results of the biennial evaluation.
Sec. 45. [145.9268] [COMMUNITY CLINIC GRANTS.]
Subdivision 1. [DEFINITION.] For purposes of this section, "eligible community clinic" means:
(1) a clinic that provides services under conditions as defined in Minnesota Rules, part 9505.0255 or 9505.0380, and utilizes a sliding fee scale to determine eligibility for charity care;
(2) an Indian tribal government or Indian health service unit; or
(3) a consortium of clinics comprised of entities under clause (1) or (2).
Subd. 2. [GRANTS AUTHORIZED.] The commissioner of health shall award grants to eligible community clinics to improve the ongoing viability of Minnesota's clinic-based safety net providers. Grants shall be awarded to support the capacity of eligible community clinics to serve low-income populations, reduce current or future uncompensated care burdens, or provide for improved care delivery infrastructure.
Subd. 3. [ALLOCATION OF GRANTS.] (a) To receive a grant under this section, an eligible community clinic must submit an application to the commissioner of health by the deadline established by the commissioner. A grant may be awarded upon the signing of a grant contract.
(b) An application must be on a form and contain information as specified by the commissioner but at a minimum must contain:
(1) a description of the project for which grant funds will be used;
(2) a description of the problem the proposed project will address; and
(3) a description of achievable objectives, a workplan, and a timeline for project completion.
(c) The commissioner shall review each application to determine whether the application is complete and whether the applicant and the project are eligible for a grant. In evaluating applications according to paragraph (e), the commissioner shall establish criteria including, but not limited to: the priority level of the project; the applicant's thoroughness and clarity in describing the problem; a description of the applicant's proposed project; the manner in which the applicant will demonstrate the effectiveness of the project; and evidence of efficiencies and effectiveness gained through collaborative efforts. The commissioner may also take into account other relevant factors, including, but not limited to, the percentage for which uninsured patients represent the applicant's patient base. During application review, the commissioner may request additional information about a proposed project, including information on project cost. Failure to provide the information requested disqualifies an applicant.
(d) A grant awarded to an eligible community clinic may not exceed $300,000 per eligible community clinic. For an applicant applying as a consortium of clinics, a grant may not exceed $300,000 per clinic included in the consortium. The commissioner has discretion over the number of grants awarded.
(e) In determining which eligible community clinics will receive grants under this section, the commissioner shall give preference to those grant applications that show evidence of collaboration with other eligible community clinics, hospitals, health care providers, or community organizations. In addition, the commissioner shall give priority, in declining order, to grant applications for projects that:
(1) establish, update, or improve information, data collection, or billing systems;
(2) procure, modernize, remodel, or replace equipment used an the delivery of direct patient care at a clinic;
(3) provide improvements for care delivery, such as increased translation and interpretation services;
(4) provide a direct offset to expenses incurred for charity care services; or
(5) other projects determined by the commissioner to improve the ability of applicants to provide care to the vulnerable populations they serve.
Subd. 4. [EVALUATION.] The commissioner of health shall evaluate the overall effectiveness of the grant program. The commissioner shall collect progress reports to evaluate the grant program from the eligible community clinics receiving grants.
Sec. 46. [145.928] [ELIMINATING HEALTH DISPARITIES.]
Subdivision 1. [GOAL; ESTABLISHMENT.] It is the goal of the state, by 2010, to decrease by 50
percent the disparities in infant mortality rates and adult and child immunization rates for American Indians and
populations of color, as compared with rates for whites. To do so and to achieve other measurable outcomes, the
commissioner of health shall establish a program to close the gap in the health status of American Indians and
populations of color
as compared with whites in the following priority areas: infant mortality, breast and cervical cancer screening, HIV/AIDS and sexually transmitted infections, adult and child immunizations, cardiovascular disease, diabetes, and accidental injuries and violence. If this goal of reducing disparities in infant mortality rates and adult and child immunization rates is not met by December 31, 2010, this section expires June 30, 2011.
Subd. 2. [STATE-COMMUNITY PARTNERSHIPS; PLAN.] The commissioner, in partnership with culturally-based community organizations; the Indian affairs council under section 3.922; the council on affairs of Chicano/Latino people under section 3.9223; the council on Black Minnesotans under section 3.9225; the council on Asian-Pacific Minnesotans under section 3.9226; community health boards as defined in section 145A.02; and tribal governments, shall develop and implement a comprehensive, coordinated plan to reduce health disparities in the health disparity priority areas identified in subdivision 1.
Subd. 3. [MEASURABLE OUTCOMES.] The commissioner, in consultation with the community partners listed in subdivision 2, shall establish measurable outcomes to achieve the goal specified in subdivision 1 and to determine the effectiveness of the grants and other activities funded under this section in reducing health disparities in the priority areas identified in subdivision 1. The development of measurable outcomes must be completed before any funds are distributed under this section.
Subd. 4. [STATEWIDE ASSESSMENT.] The commissioner shall enhance current data tools to ensure a statewide assessment of the risk behaviors associated with the health disparity priority areas identified in subdivision 1. The statewide assessment must be used to establish a baseline to measure the effect of activities funded under this section. To the extent feasible, the commissioner shall conduct the assessment so that the results may be compared to national data.
Subd. 5. [TECHNICAL ASSISTANCE.] The commissioner shall provide the necessary expertise to grant applicants to ensure that submitted proposals are likely to be successful in reducing the health disparities identified in subdivision 1. The commissioner shall provide grant recipients with guidance and training on best or most promising strategies to use to reduce the health disparities identified in subdivision 1. The commissioner shall also assist grant recipients in the development of materials and procedures to evaluate local community activities.
Subd. 6. [PROCESS.] (a) The commissioner, in consultation with the community partners listed in subdivision 2, shall develop the criteria and procedures used to allocate grants under this section. In developing the criteria, the commissioner shall establish an administrative cost limit for grant recipients. At the time a grant is awarded, the commissioner must provide a grant recipient with information on the outcomes established according to subdivision 3.
(b) A grant recipient must coordinate its activities to reduce health disparities with other entities receiving funds under this section that are in the grant recipient's service area.
Subd. 7. [COMMUNITY GRANT PROGRAM; IMMUNIZATION RATES AND INFANT MORTALITY RATES.] (a) The commissioner shall award grants to eligible applicants for local or regional projects and initiatives directed at reducing health disparities in one or both of the following priority areas:
(1) decreasing racial and ethnic disparities in infant mortality rates; or
(2) increasing adult and child immunization rates in nonwhite racial and ethnic populations.
(b) The commissioner may award up to 20 percent of the funds available as planning grants. Planning grants must be used to address such areas as community assessment, coordination activities, and development of community supported strategies.
(c) Eligible applicants may include, but are not limited to, faith-based organizations, social service organizations, community nonprofit organizations, community health boards, tribal governments, and community clinics. Applicants must submit proposals to the commissioner. A proposal must specify the strategies to be implemented to address one or both of the priority areas listed in paragraph (a) and must be targeted to achieve the outcomes established according to subdivision 3.
(d) The commissioner shall give priority to applicants who demonstrate that their proposed project or initiative:
(1) is supported by the community the applicant will serve;
(2) is research-based or based on promising strategies;
(3) is designed to complement other related community activities;
(4) utilizes strategies that positively impact both priority areas;
(5) reflects racially and ethnically appropriate approaches; and
(6) w