1.1                          A bill for an act 
  1.2             relating to education; kindergarten through grade 12; 
  1.3             providing for general education; special programs; 
  1.4             lifework development; education organization, 
  1.5             cooperation, and facilities; education excellence; 
  1.6             academic performance; education policy issues; 
  1.7             libraries; technology; state agencies; conforming and 
  1.8             technical amendments; school bus safety; tax deduction 
  1.9             and credit; appropriating money; amending Minnesota 
  1.10            Statutes 1996, sections 12.21, subdivision 3; 
  1.11            120.0111; 120.062, subdivisions 3, 6, 7, 9, and 11; 
  1.12            120.0621, subdivisions 5a, 6, and by adding a 
  1.13            subdivision; 120.064, subdivisions 3, 8, 10, 20a, and 
  1.14            by adding a subdivision; 120.101, subdivisions 5, 5c, 
  1.15            and by adding a subdivision; 120.1701, subdivision 3; 
  1.16            120.181; 121.15, subdivisions 6, 7, and by adding 
  1.17            subdivisions; 121.602, subdivisions 1, 2, and 4; 
  1.18            121.611; 121.615, subdivisions 2, 3, 5, 6, 7, 8, 9, 
  1.19            and 10; 121.703, subdivision 3; 121.904, subdivision 
  1.20            4a; 123.35, subdivision 8, and by adding a 
  1.21            subdivision; 123.3514, subdivisions 4, 4a, 4c, 4e, 6c, 
  1.22            8, and by adding subdivisions; 123.39, subdivision 6; 
  1.23            123.70, subdivisions 5, 7, and 10; 123.799, 
  1.24            subdivision 1; 123.7991, subdivisions 1 and 2; 
  1.25            123.951; 123.972, subdivision 5; 124.155, subdivisions 
  1.26            1 and 2; 124.17, subdivisions 1d, 4, and by adding 
  1.27            subdivisions; 124.193; 124.195, subdivisions 2, 7, 10, 
  1.28            11, and by adding a subdivision; 124.225, subdivisions 
  1.29            1, 13, 14, 15, 16, and 17; 124.226, subdivision 10; 
  1.30            124.2445; 124.2455; 124.248, subdivisions 3, 4, and by 
  1.31            adding subdivisions; 124.26, subdivision 1b; 124.2613, 
  1.32            subdivisions 3, 4, and 6; 124.2727, subdivision 6d; 
  1.33            124.273, subdivisions 1d, 1e, 1f, and 5; 124.276, by 
  1.34            adding a subdivision; 124.312, subdivisions 4 and 5; 
  1.35            124.313; 124.314, subdivisions 1 and 2; 124.3201, 
  1.36            subdivisions 1, 2, 3, and 4; 124.321, subdivision 1; 
  1.37            124.323, subdivisions 1 and 2; 124.42, subdivision 4; 
  1.38            124.431, subdivisions 2 and 11; 124.45; 124.481; 
  1.39            124.574, subdivisions 1, 2d, 2f, 5, 6, and 9; 124.83, 
  1.40            subdivisions 1 and 2; 124.86, subdivision 2, and by 
  1.41            adding a subdivision; 124.91, subdivisions 1 and 5; 
  1.42            124.912, subdivisions 1, 2, 3, and 6; 124.916, 
  1.43            subdivisions 1, 2, and 3; 124.918, subdivision 6; 
  1.44            124.95, subdivision 2; 124.961; 124A.03, subdivisions 
  1.45            1c and 1g; 124A.04, subdivision 2; 124A.22, 
  1.46            subdivisions 1, 2, as amended, 3, 6, 6a, 8a, 10, 11, 
  2.1             13, 13b, 13d, and by adding a subdivision; 124A.225, 
  2.2             subdivision 1; 124A.23, subdivisions 1, 2, 3, and 5; 
  2.3             124A.26, subdivision 1; 124A.28; 124C.45, subdivision 
  2.4             1a; 124C.46, subdivisions 1 and 2; 124C.498, 
  2.5             subdivisions 2 and 3; 125.05, subdivisions 1c and 2; 
  2.6             125.12, subdivision 14; 126.22, subdivisions 2, 3, 3a, 
  2.7             and 8; 126.23, subdivision 1; 126.77, subdivision 1; 
  2.8             127.26; 127.27, subdivisions 5, 6, 7, 8, 10, and by 
  2.9             adding a subdivision; 127.281; 127.29; 127.30, 
  2.10            subdivisions 1, 2, 3, and by adding a subdivision; 
  2.11            127.31, subdivisions 2, 7, 8, 13, 14, and 15; 127.311; 
  2.12            127.32; 127.33; 127.36; 127.37; 127.38; 128A.02, by 
  2.13            adding a subdivision; 128B.10, subdivision 1; 128C.02, 
  2.14            subdivision 2, and by adding a subdivision; 128C.12, 
  2.15            subdivision 1; 129C.10, subdivision 3; 134.155, 
  2.16            subdivisions 2 and 3; 134.34, subdivision 4; 136D.72, 
  2.17            subdivisions 2 and 3; 144.29; 169.01, subdivision 6; 
  2.18            169.435, subdivision 2; 169.443, subdivision 3; 
  2.19            169.447, subdivision 6; 169.4501, subdivisions 1 and 
  2.20            2; 169.4502, subdivisions 2, 7, 9, 11, and by adding 
  2.21            subdivisions; 169.4503, subdivisions 1, 2, 10, 13, 14, 
  2.22            17, 19, 23, 24, and by adding a subdivision; 169.4504, 
  2.23            subdivision 1, and by adding a subdivision; 169.452; 
  2.24            171.321, subdivision 3; 171.3215, subdivision 4; 
  2.25            245.493, subdivision 1; 245.91, subdivision 2; 
  2.26            260.185, subdivision 1; 260A.02, subdivision 3; 
  2.27            268.665, subdivision 2; 290.01, subdivision 19b; and 
  2.28            290.0671, subdivision 1; Laws 1991, chapter 265, 
  2.29            article 1, section 30, as amended; Laws 1993, chapter 
  2.30            146, article 5, section 20; Laws 1994, chapter 647, 
  2.31            article 7, section 18, subdivisions 2 and 3; Laws 1995 
  2.32            First Special Session, chapter 3, articles 1, section 
  2.33            56; 2, section 52; 3, section 11, subdivisions 1, 2, 
  2.34            and 5; 11, section 21, subdivision 3; and 12, section 
  2.35            7, subdivision 1; Laws 1996, chapter 412, articles 4, 
  2.36            section 34, subdivision 4; and 12, section 11; 
  2.37            proposing coding for new law in Minnesota Statutes, 
  2.38            chapters 120; 121; 124; 126; 127; 128C; 135A; and 290; 
  2.39            repealing Minnesota Statutes 1996, sections 120.105; 
  2.40            120.65; 121.11, subdivision 8; 121.602, subdivisions 3 
  2.41            and 5; 121.904, subdivision 4d; 121.912, subdivision 
  2.42            7; 124.17, subdivision 5; 124.177; 124.223; 124.225, 
  2.43            subdivisions 3a, 7a, 7b, 7d, 7e, 8a, 8k, and 10; 
  2.44            124.226; 124.2728; 124.276, subdivision 2; 124.3201, 
  2.45            subdivisions 2a and 2b; 124.912, subdivisions 2 and 3; 
  2.46            124A.22, subdivisions 4a and 4b; 124A.26, subdivisions 
  2.47            1a, 2, 3, 4, and 5; 124C.74; 127.31, subdivision 6; 
  2.48            134.34, subdivision 4a; 134.46; 169.4502, subdivision 
  2.49            6; 169.4503, subdivisions 3, 8, 9, 11, 12, and 22; and 
  2.50            169.454, subdivision 11. 
  2.51  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.52                             ARTICLE 1 
  2.53                         GENERAL EDUCATION 
  2.54     Section 1.  Minnesota Statutes 1996, section 120.062, 
  2.55  subdivision 9, is amended to read: 
  2.56     Subd. 9.  [TRANSPORTATION.] (a) If requested by the parent 
  2.57  of a pupil, the nonresident district shall provide 
  2.58  transportation within the district.  The state shall pay 
  2.59  transportation aid to the district according to section 124.225. 
  2.60     The resident district is not required to provide or pay for 
  3.1   transportation between the pupil's residence and the border of 
  3.2   the nonresident district.  A parent may be reimbursed by the 
  3.3   nonresident district for the costs of transportation from the 
  3.4   pupil's residence to the border of the nonresident district if 
  3.5   the pupil is from a family whose income is at or below the 
  3.6   poverty level, as determined by the federal government.  The 
  3.7   reimbursement may not exceed the pupil's actual cost of 
  3.8   transportation or 15 cents per mile traveled, whichever is 
  3.9   less.  Reimbursement may not be paid for more than 250 miles per 
  3.10  week.  
  3.11     At the time a nonresident district notifies a parent or 
  3.12  guardian that an application has been accepted under subdivision 
  3.13  5 or 6, the nonresident district must provide the parent or 
  3.14  guardian with the following information regarding the 
  3.15  transportation of nonresident pupils under this section: 123.39, 
  3.16  subdivision 6. 
  3.17     (1) a nonresident district may transport a pupil within the 
  3.18  pupil's resident district under this section only with the 
  3.19  approval of the resident district; and 
  3.20     (2) a parent or guardian of a pupil attending a nonresident 
  3.21  district under this section may appeal under section 123.39, 
  3.22  subdivision 6, the refusal of the resident district to allow the 
  3.23  nonresident district to transport the pupil within the resident 
  3.24  district. 
  3.25     (b) Notwithstanding paragraph (a) and section 124.225, 
  3.26  subdivision 8l, transportation provided by a nonresident 
  3.27  district between home and school for a pupil attending school 
  3.28  under this section is authorized for nonregular transportation 
  3.29  revenue under section 124.225, if the following criteria are met:
  3.30     (1) the school that the pupil was attending prior to 
  3.31  enrolling in the nonresident district under this section was 
  3.32  closed; 
  3.33     (2) the distance from the closed school to the next nearest 
  3.34  school in the district that the student could attend is at least 
  3.35  20 miles; 
  3.36     (3) the pupil's residence is at least 20 miles from any 
  4.1   school that the pupil could attend in the resident district; and 
  4.2      (4) the pupil's residence is closer to the school of 
  4.3   attendance in the nonresident district than to any school the 
  4.4   pupil could attend in the resident district. 
  4.5      Sec. 2.  Minnesota Statutes 1996, section 121.904, 
  4.6   subdivision 4a, is amended to read: 
  4.7      Subd. 4a.  [LEVY RECOGNITION.] (a) "School district tax 
  4.8   settlement revenue" means the current, delinquent, and 
  4.9   manufactured home property tax receipts collected by the county 
  4.10  and distributed to the school district, including distributions 
  4.11  made pursuant to section 279.37, subdivision 7, and excluding 
  4.12  the amount levied pursuant to section 124.914, subdivision 1. 
  4.13     (b) In June of each year, the school district shall 
  4.14  recognize as revenue, in the fund for which the levy was made, 
  4.15  the lesser of:  
  4.16     (1) the May, June, and July school district tax settlement 
  4.17  revenue received in that calendar year; or 
  4.18     (2) the sum of the state aids and credits enumerated in 
  4.19  section 124.155, subdivision 2, which are for the fiscal year 
  4.20  payable in that fiscal year plus an amount equal to the levy 
  4.21  recognized as revenue in June of the prior year plus 31 percent 
  4.22  for fiscal year 1996 and thereafter of the amount of the levy 
  4.23  certified in the prior calendar year according to section 
  4.24  124A.03, subdivision 2, plus or minus auditor's adjustments, not 
  4.25  including levy portions that are assumed by the state; or 
  4.26     (3) 18.1 percent for fiscal year 1996, the percent 
  4.27  determined under Laws 1996, chapter 461, section 3, for fiscal 
  4.28  year 1997 and that same percent thereafter of the amount of the 
  4.29  levy certified in the prior calendar year, plus or minus 
  4.30  auditor's adjustments, not including levy portions that are 
  4.31  assumed by the state, which remains after subtracting, by fund, 
  4.32  the amounts levied for the following purposes:  
  4.33     (i) reducing or eliminating projected deficits in the 
  4.34  reserved fund balance accounts for unemployment insurance and 
  4.35  bus purchases; 
  4.36     (ii) statutory operating debt pursuant to section 124.914, 
  5.1   subdivision 1; 
  5.2      (iii) retirement and severance pay pursuant to sections 
  5.3   122.531, subdivision 9, 124.2725, subdivision 15, 124.4945, 
  5.4   124.912, subdivision 1, and 124.916, subdivision 3, and Laws 
  5.5   1975, chapter 261, section 4; 
  5.6      (iv) amounts levied for bonds issued and interest thereon, 
  5.7   amounts levied for debt service loans and capital loans, amounts 
  5.8   levied for down payments under section 124.82, subdivision 3; 
  5.9   and 
  5.10     (v) amounts levied under section 124.755. 
  5.11     Notwithstanding the foregoing, the levy recognition 
  5.12  percentage for the referendum levy certified according to 
  5.13  section 124A.03, subdivision 2, is 31 percent. 
  5.14     (3)(i) 7.0 percent of the lesser of the amount of the 
  5.15  general education levy certified in the prior calendar year 
  5.16  according to section 124A.23, subdivision 2, or the difference 
  5.17  between the amount of the total general fund levy certified in 
  5.18  the prior calendar year and the sum of the amounts certified in 
  5.19  the prior calendar year according to sections 124A.03, 
  5.20  subdivision 2; 124.315, subdivision 4; 124.912, subdivisions 1, 
  5.21  paragraph (2), 2, and 3; 124.916, subdivisions 1, 2, and 3, 
  5.22  paragraphs (4), (5), and (6); and 124.918, subdivision 6; plus 
  5.23     (ii) 31 percent of the referendum levy certified in the 
  5.24  prior calendar year according to section 124A.03, subdivision 2; 
  5.25  plus 
  5.26     (iii) the entire amount of the levy certified in the prior 
  5.27  calendar year according to sections 124.315, subdivision 4; 
  5.28  124.912, subdivisions 1, paragraph (2), 2, and 3; 124.916, 
  5.29  subdivisions 1, 2, and 3, paragraphs (4), (5), and (6); and 
  5.30  124.918, subdivision 6. 
  5.31     (c) In July of each year, the school district shall 
  5.32  recognize as revenue that portion of the school district tax 
  5.33  settlement revenue received in that calendar year and not 
  5.34  recognized as revenue for the previous fiscal year pursuant to 
  5.35  clause (b).  
  5.36     (d) All other school district tax settlement revenue shall 
  6.1   be recognized as revenue in the fiscal year of the settlement. 
  6.2   Portions of the school district levy assumed by the state, 
  6.3   including prior year adjustments and the amount to fund the 
  6.4   school portion of the reimbursement made pursuant to section 
  6.5   273.425, shall be recognized as revenue in the fiscal year 
  6.6   beginning in the calendar year for which the levy is payable. 
  6.7      Sec. 3.  Minnesota Statutes 1996, section 123.3514, is 
  6.8   amended by adding a subdivision to read: 
  6.9      Subd. 3a.  [ALTERNATIVE PUPIL.] "Alternative pupil" means 
  6.10  an 11th or 12th grade student not enrolled in a public school 
  6.11  district, and includes students attending nonpublic schools and 
  6.12  students who are home schooled.  An alternative pupil is 
  6.13  considered a pupil for purposes of this section only.  An 
  6.14  alternative pupil must register with the commissioner of 
  6.15  children, families, and learning before participating in the 
  6.16  post-secondary enrollment options program.  The commissioner 
  6.17  shall prescribe the form and manner of the registration, in 
  6.18  consultation with the nonpublic education council under section 
  6.19  123.935, subdivision 7, and may request any necessary 
  6.20  information from the alternative pupil. 
  6.21     Sec. 4.  Minnesota Statutes 1996, section 123.3514, 
  6.22  subdivision 4, is amended to read: 
  6.23     Subd. 4.  [AUTHORIZATION; NOTIFICATION.] Notwithstanding 
  6.24  any other law to the contrary, an 11th or 12th grade pupil 
  6.25  enrolled in a public school or an American Indian-controlled 
  6.26  tribal contract or grant school eligible for aid under section 
  6.27  124.86, except a foreign exchange pupil enrolled in a district 
  6.28  under a cultural exchange program, may apply to an eligible 
  6.29  institution, as defined in subdivision 3, to enroll in 
  6.30  nonsectarian courses offered by that post-secondary 
  6.31  institution.  If an institution accepts a secondary pupil for 
  6.32  enrollment under this section, the institution shall send 
  6.33  written notice to the pupil, the pupil's school or school 
  6.34  district, and the commissioner of children, families, and 
  6.35  learning within ten days of acceptance.  The notice shall 
  6.36  indicate the course and hours of enrollment of that pupil.  If 
  7.1   the pupil enrolls in a course for post-secondary credit, the 
  7.2   institution shall notify the pupil about payment in the 
  7.3   customary manner used by the institution. 
  7.4      Sec. 5.  Minnesota Statutes 1996, section 123.3514, 
  7.5   subdivision 4a, is amended to read: 
  7.6      Subd. 4a.  [COUNSELING.] To the extent possible, the school 
  7.7   or school district shall provide counseling services to pupils 
  7.8   and their parents or guardian before the pupils enroll in 
  7.9   courses under this section to ensure that the pupils and their 
  7.10  parents or guardian are fully aware of the risks and possible 
  7.11  consequences of enrolling in post-secondary courses.  The school 
  7.12  or school district shall provide information on the program 
  7.13  including who may enroll, what institutions and courses are 
  7.14  eligible for participation, the decision-making process for 
  7.15  granting academic credits, financial arrangements for tuition, 
  7.16  books and materials, eligibility criteria for transportation 
  7.17  aid, available support services, the need to arrange an 
  7.18  appropriate schedule, consequences of failing or not completing 
  7.19  a course in which the pupil enrolls, the effect of enrolling in 
  7.20  this program on the pupil's ability to complete the required 
  7.21  high school graduation requirements, and the academic and social 
  7.22  responsibilities that must be assumed by the pupils and their 
  7.23  parents or guardian.  The person providing counseling shall 
  7.24  encourage pupils and their parents or guardian to also use 
  7.25  available counseling services at the post-secondary institutions 
  7.26  before the quarter or semester of enrollment to ensure that 
  7.27  anticipated plans are appropriate.  
  7.28     Prior to enrolling in a course, the pupil and the pupil's 
  7.29  parents or guardian must sign a form that must be provided by 
  7.30  the school or school district and may be obtained from a 
  7.31  post-secondary institution stating that they have received the 
  7.32  information specified in this subdivision and that they 
  7.33  understand the responsibilities that must be assumed in 
  7.34  enrolling in this program.  The department of children, 
  7.35  families, and learning shall, upon request, provide technical 
  7.36  assistance to a school or school district in developing 
  8.1   appropriate forms and counseling guidelines. 
  8.2      Sec. 6.  Minnesota Statutes 1996, section 123.3514, 
  8.3   subdivision 4e, is amended to read: 
  8.4      Subd. 4e.  [COURSES ACCORDING TO AGREEMENTS.] An eligible 
  8.5   pupil, according to subdivision 4, may enroll in a nonsectarian 
  8.6   course taught by a secondary teacher or a post-secondary faculty 
  8.7   member and offered at a secondary school, or another location, 
  8.8   according to an agreement between a public school board and the 
  8.9   governing body of an eligible public post-secondary system or an 
  8.10  eligible private post-secondary institution, as defined in 
  8.11  subdivision 3.  All provisions of this section shall apply to a 
  8.12  pupil, public school board, school district, and the governing 
  8.13  body of a post-secondary institution, except as otherwise 
  8.14  provided. 
  8.15     Sec. 7.  Minnesota Statutes 1996, section 123.3514, 
  8.16  subdivision 6c, is amended to read: 
  8.17     Subd. 6c.  [FINANCIAL ARRANGEMENTS FOR COURSES PROVIDED 
  8.18  ACCORDING TO AGREEMENTS.] (a) The agreement between a public 
  8.19  school board and the governing body of a public post-secondary 
  8.20  system or private post-secondary institution shall set forth the 
  8.21  payment amounts and arrangements, if any, from the public school 
  8.22  board to the post-secondary institution.  No payments shall be 
  8.23  made by the department of children, families, and learning 
  8.24  according to subdivision 6 or 6b.  For the purpose of computing 
  8.25  state aids for a school district, a pupil enrolled according to 
  8.26  subdivision 4e shall be counted in the average daily membership 
  8.27  of the school district as though the pupil were enrolled in a 
  8.28  secondary course that is not offered in connection with an 
  8.29  agreement.  Nothing in this subdivision shall be construed to 
  8.30  prohibit a public post-secondary system or private 
  8.31  post-secondary institution from receiving additional state 
  8.32  funding that may be available under any other law.  
  8.33     (b) If a course is provided under subdivision 4e, offered 
  8.34  at a secondary school, and taught by a secondary teacher, the 
  8.35  post-secondary system or institution must not require a payment 
  8.36  from the school board that exceeds the cost to the 
  9.1   post-secondary institution that is directly attributable to 
  9.2   providing that course. 
  9.3      Sec. 8.  Minnesota Statutes 1996, section 123.3514, is 
  9.4   amended by adding a subdivision to read: 
  9.5      Subd. 6d.  [ALTERNATIVE PUPILS FINANCIAL ARRANGEMENTS.] For 
  9.6   an alternative pupil enrolled in a course or program under this 
  9.7   section, the department of children, families, and learning 
  9.8   shall make payments to the eligible institution according to 
  9.9   subdivision 6.  The department shall not make any payments to a 
  9.10  school district for alternative pupils. 
  9.11     Sec. 9.  Minnesota Statutes 1996, section 123.3514, is 
  9.12  amended by adding a subdivision to read: 
  9.13     Subd. 6e.  [TUITION AT NONPUBLIC SECONDARY INSTITUTION.] A 
  9.14  nonpublic secondary institution must proportionately adjust its 
  9.15  tuition to accurately reflect the time an alternative pupil 
  9.16  spends in a post-secondary enrollment course or program. 
  9.17     Sec. 10.  Minnesota Statutes 1996, section 123.39, 
  9.18  subdivision 6, is amended to read: 
  9.19     Subd. 6.  For the purposes of this subdivision, a 
  9.20  "nonresident pupil" is a pupil who resides in one district, 
  9.21  defined as the "resident district" and attends school in another 
  9.22  district, defined as the "nonresident district." 
  9.23     If requested, a nonresident district may shall transport a 
  9.24  nonresident pupil within its borders and may transport a 
  9.25  nonresident pupil within the pupil's resident district.  A 
  9.26  nonresident district may not transport a nonresident pupil on a 
  9.27  school district owned or contractor operated school bus within 
  9.28  the pupil's resident district without the approval of the 
  9.29  resident district under section 120.062. 
  9.30     The parent or guardian of a nonresident pupil attending a 
  9.31  nonresident district under section 120.062 may submit a written 
  9.32  request to the resident district asking that the resident 
  9.33  district allow the nonresident district to provide 
  9.34  transportation for the pupil within the pupil's resident 
  9.35  district.  The resident district must approve or disapprove the 
  9.36  request, in writing, within 30 days.  The parent or guardian may 
 10.1   appeal the refusal of the resident district to the commissioner 
 10.2   of children, families, and learning.  The commissioner must act 
 10.3   on the appeal within 30 days.  If a nonresident district decides 
 10.4   to transport a nonresident pupil within the pupil's resident 
 10.5   district, the nonresident district must notify the pupil's 
 10.6   resident district of its decision, in writing, prior to 
 10.7   providing transportation. 
 10.8      Sec. 11.  Minnesota Statutes 1996, section 124.155, 
 10.9   subdivision 1, is amended to read: 
 10.10     Subdivision 1.  [AMOUNT OF ADJUSTMENT.] Each year state 
 10.11  aids and credits enumerated in subdivision 2 payable to any 
 10.12  school district for that fiscal year shall be adjusted, in the 
 10.13  order listed, by an amount equal to (1) the amount the district 
 10.14  recognized as revenue for the prior fiscal year pursuant to 
 10.15  section 121.904, subdivision 4a, clause (b), minus (2) the 
 10.16  amount the district recognizes as revenue for the current fiscal 
 10.17  year pursuant to section 121.904, subdivision 4a, clause (b).  
 10.18  For the purposes of making the aid adjustment under this 
 10.19  subdivision, the amount the district recognizes as revenue for 
 10.20  either the prior fiscal year or the current fiscal year pursuant 
 10.21  to section 121.904, subdivision 4a, clause (b), shall not 
 10.22  include any amount levied pursuant to sections 124.226, 
 10.23  subdivision 9, 124.315, subdivision 4, 124.912, subdivisions 1, 
 10.24  paragraph (2), 2, and 3, or a successor provision only for those 
 10.25  districts affected, 124.916, subdivisions 1 and, 2, and 3, 
 10.26  paragraphs 4, 5, and 6, 124.918, subdivision 6, and 124A.03, 
 10.27  subdivision 2; and Laws 1992, chapter 499, articles 1, section 
 10.28  20, and 6, section 36.  Payment from the permanent school fund 
 10.29  shall not be adjusted pursuant to this section.  The school 
 10.30  district shall be notified of the amount of the adjustment made 
 10.31  to each payment pursuant to this section. 
 10.32     Sec. 12.  Minnesota Statutes 1996, section 124.17, 
 10.33  subdivision 1d, is amended to read: 
 10.34     Subd. 1d.  [AFDC COMPENSATION REVENUE PUPIL UNITS.] AFDC 
 10.35  Compensation revenue pupil units for fiscal year 1993 1998 and 
 10.36  thereafter must be computed according to this subdivision.  
 11.1      (a) The AFDC compensation revenue concentration percentage 
 11.2   for each building in a district equals the product of 100 times 
 11.3   the ratio of:  
 11.4      (1) the sum of the number of pupils enrolled in the 
 11.5   district from families receiving aid to families with dependent 
 11.6   children according to subdivision 1e building eligible to 
 11.7   receive free lunch plus one-half of the pupils eligible to 
 11.8   receive reduced priced lunch on October 1 of the previous fiscal 
 11.9   year; to 
 11.10     (2) the number of pupils in average daily membership 
 11.11  according to subdivision 1e enrolled in the district the 
 11.12  building on October 1 of the previous fiscal year. 
 11.13     (b) The AFDC compensation revenue pupil weighting factor 
 11.14  for a district building equals the lesser of one or the quotient 
 11.15  obtained by dividing the district's AFDC building's compensation 
 11.16  revenue concentration percentage by 11.5 80.0.  
 11.17     (c) The AFDC compensation revenue pupil units for a 
 11.18  district for fiscal year 1993 and thereafter building equals the 
 11.19  product of:  
 11.20     (1) the sum of the number of pupils enrolled in the 
 11.21  district from families receiving aid to families with dependent 
 11.22  children according to subdivision 1e building eligible to 
 11.23  receive free lunch and one-half of the pupils eligible to 
 11.24  receive reduced priced lunch on October 1 of the previous fiscal 
 11.25  year; times 
 11.26     (2) the AFDC compensation revenue pupil weighting factor 
 11.27  for the district building; times 
 11.28     (3) .67 .60. 
 11.29     The percentages in this subdivision must be based on the 
 11.30  count of individual pupils and not on a building average or 
 11.31  minimum. 
 11.32     Sec. 13.  Minnesota Statutes 1996, section 124.17, 
 11.33  subdivision 4, is amended to read: 
 11.34     Subd. 4.  [LEARNING YEAR PUPIL UNITS.] (a) When a pupil is 
 11.35  enrolled in a learning year program according to under section 
 11.36  121.585, an area learning center according to under sections 
 12.1   124C.45 and 124C.46, or an alternative program approved by the 
 12.2   commissioner, for more than 1,020 hours in a school year for a 
 12.3   secondary student and for, more than 935 hours in a school year 
 12.4   for an elementary student, or more than 425 hours in a school 
 12.5   year for a kindergarten student without a disability, that pupil 
 12.6   may be counted as more than one pupil in average daily 
 12.7   membership.  The amount in excess of one pupil must be 
 12.8   determined by the ratio of the number of hours of instruction 
 12.9   provided to that pupil in excess of:  (i) the greater of 1,020 
 12.10  hours or the number of hours required for a full-time secondary 
 12.11  pupil in the district to 1,020 for a secondary pupil and of; 
 12.12  (ii) the greater of 935 hours or the number of hours required 
 12.13  for a full-time elementary pupil in the district to 935 for an 
 12.14  elementary pupil in grades 1 through 6; and (iii) the greater of 
 12.15  425 hours or the number of hours required for a full-time 
 12.16  kindergarten student without a disability in the district to 425 
 12.17  for a kindergarten student without a disability.  Hours that 
 12.18  occur after the close of the instructional year in June shall be 
 12.19  attributable to the following fiscal year.  A kindergarten 
 12.20  student must not be counted as more than 1.2 pupils in average 
 12.21  daily membership under this subdivision. 
 12.22     (b)(i) To receive general education revenue for a pupil in 
 12.23  an alternative program that has an independent study component, 
 12.24  a school district must meet the requirements in this paragraph.  
 12.25  The school district must develop with the pupil a continual 
 12.26  learning plan for the pupil.  A district must allow a minor 
 12.27  pupil's parent or guardian to participate in developing the 
 12.28  plan, if the parent or guardian wants to participate.  The plan 
 12.29  must identify the learning experiences and expected outcomes 
 12.30  needed for satisfactory credit for the year and for graduation.  
 12.31  The plan must be updated each year.  Each school district that 
 12.32  has a state-approved public alternative program must reserve 
 12.33  revenue in an amount equal to at least 90 percent of the 
 12.34  district average general education revenue per pupil unit less 
 12.35  compensatory revenue per pupil unit times the number of pupil 
 12.36  units generated by students attending a state-approved public 
 13.1   alternative program.  The amount of reserved revenue available 
 13.2   under this subdivision may only be spent for program costs 
 13.3   associated with the state-approved public alternative program.  
 13.4   Compensatory revenue must be allocated according to section 
 13.5   124A.28, subdivision 1a. 
 13.6      (ii) General education revenue for a pupil in an approved 
 13.7   alternative program without an independent study component must 
 13.8   be prorated for a pupil participating for less than a full year, 
 13.9   or its equivalent.  Each school district that has a 
 13.10  state-approved public alternative program must reserve revenue 
 13.11  in an amount equal to at least 90 percent of the district 
 13.12  average general education revenue per pupil unit less 
 13.13  compensatory revenue per pupil unit times the number of pupil 
 13.14  units generated by students attending a state-approved public 
 13.15  alternative program.  The amount of reserved revenue available 
 13.16  under this subdivision may only be spent for program costs 
 13.17  associated with the state-approved public alternative program.  
 13.18  Compensatory revenue must be allocated according to section 
 13.19  124A.28, subdivision 1a.  
 13.20     (iii) General education revenue for a pupil in an approved 
 13.21  alternative program that has an independent study component must 
 13.22  be paid for each hour of teacher contact time and each hour of 
 13.23  independent study time completed toward a credit or graduation 
 13.24  standards necessary for graduation.  Average daily membership 
 13.25  for a pupil shall equal the number of hours of teacher contact 
 13.26  time and independent study time divided by 1,020. 
 13.27     (iv) For an alternative program having an independent study 
 13.28  component, the commissioner shall require a description of the 
 13.29  courses in the program, the kinds of independent study involved, 
 13.30  the expected learning outcomes of the courses, and the means of 
 13.31  measuring student performance against the expected outcomes. 
 13.32     Sec. 14.  Minnesota Statutes 1996, section 124.17, is 
 13.33  amended by adding a subdivision to read: 
 13.34     Subd. 6.  [FREE AND REDUCED PRICED LUNCHES.] The 
 13.35  commissioner shall determine the number of children eligible to 
 13.36  receive either a free or reduced priced lunch on October 1 each 
 14.1   year.  The commissioner may use federal definitions for these 
 14.2   purposes and may adjust these definitions as appropriate.  The 
 14.3   commissioner may adopt reporting guidelines to assure accuracy 
 14.4   of data counts and eligibility.  Districts shall use any 
 14.5   guidelines adopted by the commissioner. 
 14.6      Sec. 15.  Minnesota Statutes 1996, section 124.195, 
 14.7   subdivision 2, is amended to read: 
 14.8      Subd. 2.  [DEFINITIONS.] (a) The term "other district 
 14.9   receipts" means payments by county treasurers pursuant to 
 14.10  section 276.10, apportionments from the school endowment fund 
 14.11  pursuant to section 124.09, apportionments by the county auditor 
 14.12  pursuant to section 124.10, subdivision 2, and payments to 
 14.13  school districts by the commissioner of revenue pursuant to 
 14.14  chapter 298.  
 14.15     (b) The term "cumulative amount guaranteed" means the sum 
 14.16  of the following: 
 14.17     (1) one-third of the final adjustment payment according to 
 14.18  subdivision 6; plus 
 14.19     (2) the product of 
 14.20     (i) the cumulative disbursement percentage shown in 
 14.21  subdivision 3; times 
 14.22     (ii) the sum of 
 14.23     85 90 percent of the estimated aid and credit entitlements 
 14.24  paid according to subdivision 10; plus 
 14.25     100 percent of the entitlements paid according to 
 14.26  subdivisions 8 and 9; plus 
 14.27     the other district receipts; plus 
 14.28     the final adjustment payment according to subdivision 6.  
 14.29     (c) The term "payment date" means the date on which state 
 14.30  payments to school districts are made by the electronic funds 
 14.31  transfer method.  If a payment date falls on a Saturday, a 
 14.32  Sunday, or a weekday which is a legal holiday, the payment shall 
 14.33  be made on the immediately following business day.  The 
 14.34  commissioner of children, families, and learning may make 
 14.35  payments on dates other than those listed in subdivision 3, but 
 14.36  only for portions of payments from any preceding payment dates 
 15.1   which could not be processed by the electronic funds transfer 
 15.2   method due to documented extenuating circumstances. 
 15.3      Sec. 16.  Minnesota Statutes 1996, section 124.195, 
 15.4   subdivision 7, is amended to read: 
 15.5      Subd. 7.  [PAYMENTS TO SCHOOL NONOPERATING FUNDS.] Each 
 15.6   fiscal year state general fund payments for a district 
 15.7   nonoperating fund shall be made at 85 90 percent of the 
 15.8   estimated entitlement during the fiscal year of the entitlement, 
 15.9   unless a higher rate has been established according to section 
 15.10  121.904, subdivision 4d.  This amount shall be paid in 12 equal 
 15.11  monthly installments.  The amount of the actual entitlement, 
 15.12  after adjustment for actual data, minus the payments made during 
 15.13  the fiscal year of the entitlement shall be paid prior to 
 15.14  October 31 of the following school year.  The commissioner may 
 15.15  make advance payments of homestead and agricultural credit aid 
 15.16  for a district's debt service fund earlier than would occur 
 15.17  under the preceding schedule if the district submits evidence 
 15.18  showing a serious cash flow problem in the fund.  The 
 15.19  commissioner may make earlier payments during the year and, if 
 15.20  necessary, increase the percent of the entitlement paid to 
 15.21  reduce the cash flow problem. 
 15.22     Sec. 17.  Minnesota Statutes 1996, section 124.195, 
 15.23  subdivision 10, is amended to read: 
 15.24     Subd. 10.  [AID PAYMENT PERCENTAGE.] Except as provided in 
 15.25  subdivisions 8, 9, and 11, each fiscal year, all education aids 
 15.26  and credits in this chapter and chapters 121, 123, 124A, 124B, 
 15.27  125, 126, 134, and section 273.1392, shall be paid at 90 percent 
 15.28  for districts operating a program under section 121.585 for 
 15.29  grades 1 to 12 for all students in the district and 85 percent 
 15.30  for other districts of the estimated entitlement during the 
 15.31  fiscal year of the entitlement, unless a higher rate has been 
 15.32  established according to section 121.904, subdivision 4d.  
 15.33  Districts operating a program under section 121.585 for grades 1 
 15.34  to 12 for all students in the district shall receive 85 percent 
 15.35  of the estimated entitlement plus an additional amount of 
 15.36  general education aid equal to five percent of the estimated 
 16.1   entitlement.  For all districts,.  The final adjustment payment, 
 16.2   according to subdivision 6, shall be the amount of the actual 
 16.3   entitlement, after adjustment for actual data, minus the 
 16.4   payments made during the fiscal year of the entitlement. 
 16.5      Sec. 18.  Minnesota Statutes 1996, section 124.195, 
 16.6   subdivision 11, is amended to read: 
 16.7      Subd. 11.  [NONPUBLIC AIDS.] The state shall pay aid 
 16.8   according to sections 123.931 to 123.947 for pupils attending 
 16.9   nonpublic schools as follows: 
 16.10     (1) an advance payment by November 30 equal to 85 90 
 16.11  percent of the estimated entitlement for the current fiscal 
 16.12  year; and 
 16.13     (2) a final payment by October 31 of the following fiscal 
 16.14  year, adjusted for actual data.  
 16.15     If a payment advance to meet cash flow needs is requested 
 16.16  by a district and approved by the commissioner, the state shall 
 16.17  pay basic nonpublic pupil transportation aid according to 
 16.18  section 124.225 attributable to pupils attending nonpublic 
 16.19  schools by October 31. 
 16.20     Sec. 19.  Minnesota Statutes 1996, section 124.225, 
 16.21  subdivision 1, is amended to read: 
 16.22     Subdivision 1.  [DEFINITIONS.] For purposes of this section 
 16.23  and section 124.3201, the terms defined in this subdivision have 
 16.24  the meanings given to them. 
 16.25     (a) "FTE" means a full-time equivalent pupil whose 
 16.26  transportation is authorized for aid purposes by section 124.223.
 16.27     (b) "Authorized cost for regular transportation" 
 16.28  means "Actual expenditure per pupil transported in the regular 
 16.29  and excess transportation categories" means the quotient 
 16.30  obtained by dividing: 
 16.31     (1) the sum of: 
 16.32     (1) (i) all expenditures for transportation in the regular 
 16.33  category, as defined in paragraph (c) (b), clause (1), for which 
 16.34  aid is authorized in section 124.223 and the excess category, as 
 16.35  defined in paragraph (b), clause (2), plus 
 16.36     (2) (ii) an amount equal to one year's depreciation on the 
 17.1   district's school bus fleet and mobile units computed on a 
 17.2   straight line basis at the rate of 15 percent per year for 
 17.3   districts operating a program under section 121.585 for grades 1 
 17.4   to 12 for all students in the district and 12-1/2 percent per 
 17.5   year for other districts of the cost of the fleet, plus 
 17.6      (3) an amount equal to one year's depreciation on district 
 17.7   school buses reconditioned by the department of corrections 
 17.8   computed on a straight line basis at the rate of 33-1/3 percent 
 17.9   per year of the cost to the district of the reconditioning, plus 
 17.10     (4) (iii) an amount equal to one year's depreciation on the 
 17.11  district's type three school buses, as defined in section 
 17.12  169.01, subdivision 6, clause (5), which must be used a majority 
 17.13  of the time for the pupil transportation purposes in sections 
 17.14  124.223 and 124.226, subdivisions 5, 8, and 9, and were 
 17.15  purchased after July 1, 1982, for authorized transportation of 
 17.16  pupils, computed on a straight line basis at the rate of 20 
 17.17  percent per year of the cost of the type three school buses by: 
 17.18     (2) the number of pupils eligible for transportation in the 
 17.19  regular category, as defined in paragraph (b), clause (1), and 
 17.20  the excess category, as defined in paragraph (b), clause (2).  
 17.21     (c) (b) "Transportation category" means a category of 
 17.22  transportation service provided to pupils as follows:  
 17.23     (1) Regular transportation is transportation services 
 17.24  provided during the regular school year under section 124.223, 
 17.25  subdivisions 1 and 2, excluding the following transportation 
 17.26  services provided under section 124.223, subdivision 1:  
 17.27  transportation between schools; transportation to and from 
 17.28  service-learning programs; noon transportation to and from 
 17.29  school for kindergarten pupils attending half-day sessions; 
 17.30  transportation of pupils to and from schools located outside 
 17.31  their normal attendance areas under the provisions of a plan for 
 17.32  desegregation mandated by the state board of education or under 
 17.33  court order; and transportation of elementary pupils to and from 
 17.34  school within a mobility zone.: 
 17.35     (i) transportation to and from school during the regular 
 17.36  school year for resident elementary pupils residing one mile or 
 18.1   more from the public or nonpublic school they attend, and 
 18.2   resident secondary pupils residing two miles or more from the 
 18.3   public or nonpublic school they attend, excluding desegregation 
 18.4   transportation and noon kindergarten transportation; but with 
 18.5   respect to transportation of pupils to and from nonpublic 
 18.6   schools, only to the extent permitted by sections 123.76 to 
 18.7   123.79; 
 18.8      (ii) transportation of resident pupils to and from language 
 18.9   immersion programs; 
 18.10     (iii) transportation of a pupil who is a custodial parent 
 18.11  and that pupil's child between the pupil's home and the child 
 18.12  care provider and between the provider and the school, if the 
 18.13  home and provider are within the attendance area of the school; 
 18.14  and 
 18.15     (iv) transportation to and from or board and lodging in 
 18.16  another district, of resident pupils of a district without a 
 18.17  secondary school. 
 18.18     For the purposes of this paragraph, a district may 
 18.19  designate a licensed day care facility, respite care facility, 
 18.20  the residence of a relative, or the residence of a person chosen 
 18.21  by the pupil's parent or guardian as the home of a pupil for 
 18.22  part or all of the day, if requested by the pupil's parent or 
 18.23  guardian, and if that facility or residence is within the 
 18.24  attendance area of the school the pupil attends. 
 18.25     (2) Nonregular transportation is transportation services 
 18.26  provided under section 124.223, subdivision 1, that are excluded 
 18.27  from the regular category and transportation services provided 
 18.28  under section 124.223, subdivisions 3, 4, 5, 6, 7, 8, 9, and 10. 
 18.29     (3) Excess transportation is transportation to and from 
 18.30  school during the regular school year for secondary pupils 
 18.31  residing at least one mile but less than two miles from the 
 18.32  public school they could attend or from the nonpublic school 
 18.33  actually attended they attend, and transportation to and from 
 18.34  school for pupils residing less than one mile from school who 
 18.35  are transported because of extraordinary traffic, drug, or crime 
 18.36  hazards. 
 19.1      (4) (3) Desegregation transportation is transportation 
 19.2   within and outside of the district during the regular school 
 19.3   year of pupils to and from schools located outside their normal 
 19.4   attendance areas under a plan for desegregation mandated by the 
 19.5   state board or under court order.  
 19.6      (5) Handicapped transportation is transportation provided 
 19.7   under section 124.223, subdivision 4, for pupils with a 
 19.8   disability between home or a respite care facility and school or 
 19.9   other buildings where special instruction required by sections 
 19.10  120.17 and 120.1701 is provided. 
 19.11     (4) "Transportation services for pupils with disabilities" 
 19.12  is: 
 19.13     (i) transportation of pupils with disabilities who cannot 
 19.14  be transported on a regular school bus between home or a respite 
 19.15  care facility and school; 
 19.16     (ii) necessary transportation of pupils with disabilities 
 19.17  from home or from school to other buildings, including centers 
 19.18  such as developmental achievement centers, hospitals, and 
 19.19  treatment centers where special instruction or services required 
 19.20  by sections 120.17 and 120.1701 are provided, within or outside 
 19.21  the district where services are provided; 
 19.22     (iii) necessary transportation for resident pupils with 
 19.23  disabilities required by sections 120.17, subdivision 4a, and 
 19.24  120.1701; 
 19.25     (iv) board and lodging for pupils with disabilities in a 
 19.26  district maintaining special classes; 
 19.27     (v) transportation from one educational facility to another 
 19.28  within the district for resident pupils enrolled on a 
 19.29  shared-time basis in educational programs, and necessary 
 19.30  transportation required by sections 120.17, subdivision 9, and 
 19.31  120.1701, for resident pupils with disabilities who are provided 
 19.32  special instruction and services on a shared-time basis; 
 19.33     (vi) transportation for resident pupils with disabilities 
 19.34  to and from board and lodging facilities when the pupil is 
 19.35  boarded and lodged for educational purposes; and 
 19.36     (vii) services described in clauses (i) to (vi), when 
 20.1   provided for pupils with disabilities in conjunction with a 
 20.2   summer instructional program that relates to the pupil's 
 20.3   individual education plan or in conjunction with a learning year 
 20.4   program established under section 121.585. 
 20.5      (5) "Nonpublic nonregular transportation" is: 
 20.6      (i) transportation from one educational facility to another 
 20.7   within the district for resident pupils enrolled on a 
 20.8   shared-time basis in educational programs, excluding 
 20.9   transportation for nonpublic pupils with disabilities under 
 20.10  clause (4); 
 20.11     (ii) transportation within district boundaries between a 
 20.12  nonpublic school and a public school or a neutral site for 
 20.13  nonpublic school pupils who are provided pupil support services 
 20.14  pursuant to section 123.935; and 
 20.15     (iii) late transportation home from school or between 
 20.16  schools within a district for nonpublic school pupils involved 
 20.17  in after-school activities. 
 20.18     (d) (c) "Mobile unit" means a vehicle or trailer designed 
 20.19  to provide facilities for educational programs and services, 
 20.20  including diagnostic testing, guidance and counseling services, 
 20.21  and health services.  A mobile unit located off nonpublic school 
 20.22  premises is a neutral site as defined in section 123.932, 
 20.23  subdivision 9. 
 20.24     (e) "Current year" means the school year for which aid will 
 20.25  be paid.  
 20.26     (f) "Base year" means the second school year preceding the 
 20.27  school year for which aid will be paid.  
 20.28     (g) "Base cost" means the ratio of: 
 20.29     (1) the sum of the authorized cost in the base year for 
 20.30  regular transportation as defined in paragraph (b) plus the 
 20.31  actual cost in the base year for excess transportation as 
 20.32  defined in paragraph (c); 
 20.33     (2) to the sum of the number of weighted FTE's in the 
 20.34  regular and excess categories in the base year. 
 20.35     (h) "Pupil weighting factor" for the excess transportation 
 20.36  category for a school district means the lesser of one, or the 
 21.1   result of the following computation: 
 21.2      (1) Divide the square mile area of the school district by 
 21.3   the number of FTE's in the regular and excess categories in the 
 21.4   base year. 
 21.5      (2) Raise the result in clause (1) to the one-fifth power. 
 21.6      (3) Divide four-tenths by the result in clause (2). 
 21.7      The pupil weighting factor for the regular transportation 
 21.8   category is one.  
 21.9      (i) "Weighted FTE's"  means the number of FTE's in each 
 21.10  transportation category multiplied by the pupil weighting factor 
 21.11  for that category. 
 21.12     (j) "Sparsity index" for a school district means the 
 21.13  greater of .005 or the ratio of the square mile area of the 
 21.14  school district to the sum of the number of weighted FTE's by 
 21.15  the district in the regular and excess categories in the base 
 21.16  year. 
 21.17     (k) "Density index" for a school district means the greater 
 21.18  of one or the result obtained by subtracting the product of the 
 21.19  district's sparsity index times 20 from two. 
 21.20     (l) "Contract transportation index" for a school district 
 21.21  means the greater of one or the result of the following 
 21.22  computation: 
 21.23     (1) Multiply the district's sparsity index by 20. 
 21.24     (2) Select the lesser of one or the result in clause (1). 
 21.25     (3) Multiply the district's percentage of regular FTE's in 
 21.26  the current year using vehicles that are not owned by the school 
 21.27  district by the result in clause (2). 
 21.28     (m) "Adjusted predicted base cost" means the predicted base 
 21.29  cost as computed in subdivision 3a as adjusted under subdivision 
 21.30  7a. 
 21.31     (n) "Regular transportation allowance" means the adjusted 
 21.32  predicted base cost, inflated and adjusted under subdivision 7b. 
 21.33     Sec. 20.  Minnesota Statutes 1996, section 124.225, 
 21.34  subdivision 13, is amended to read: 
 21.35     Subd. 13.  [TARGETED NEEDS TRANSPORTATION REVENUE.] A 
 21.36  district's targeted needs transportation revenue for the 
 22.1   1996-1997 and later 1997-1998 school years equals the sum of the 
 22.2   special programs transportation revenue according to subdivision 
 22.3   14, the integration transportation revenue according to 
 22.4   subdivision 15, and the nonpublic pupil transportation revenue 
 22.5   aid according to subdivision 16. 
 22.6      Sec. 21.  Minnesota Statutes 1996, section 124.225, 
 22.7   subdivision 14, is amended to read: 
 22.8      Subd. 14.  [SPECIAL PROGRAMS TRANSPORTATION REVENUE.] A 
 22.9   district's special programs transportation revenue for the 
 22.10  1996-1997 and later 1997-1998 school years equals the sum of: 
 22.11     (a) the district's actual cost in the base year for 
 22.12  transportation services for children with disabilities under 
 22.13  section 124.223, subdivisions 4, 5, 7, and 8 subdivision 1, 
 22.14  paragraph (b), clause (4), times the ratio of the district's 
 22.15  average daily membership for the current school year to the 
 22.16  district's average daily membership for the base year; plus 
 22.17     (b) the greater of zero or 80 percent of the difference 
 22.18  between: 
 22.19     (1) the district's actual cost in the current year for 
 22.20  transportation services for children with disabilities under 
 22.21  section 124.223, subdivisions 4, 5, 7, and 8 subdivision 1, 
 22.22  paragraph (b), clause (4); and 
 22.23     (2) the amount computed in paragraph (a). 
 22.24     Sec. 22.  Minnesota Statutes 1996, section 124.225, 
 22.25  subdivision 15, is amended to read: 
 22.26     Subd. 15.  [INTEGRATION TRANSPORTATION REVENUE.] A 
 22.27  district's integration transportation revenue for the 1996-1997 
 22.28  and later 1997-1998 school years equals the following amounts: 
 22.29     (a) for independent school district No. 709, Duluth, $4 
 22.30  times the actual pupil units for the school year; 
 22.31     (b) for independent school district No. 625, St. Paul, $73 
 22.32  times the actual pupil units for the school year; and 
 22.33     (c) for special school district No. 1, Minneapolis, $158 
 22.34  times the actual pupil units for the school year. 
 22.35     Sec. 23.  Minnesota Statutes 1996, section 124.225, 
 22.36  subdivision 16, is amended to read: 
 23.1      Subd. 16.  [NONPUBLIC PUPIL TRANSPORTATION REVENUE AID.] 
 23.2   (a) A district's nonpublic pupil transportation revenue aid for 
 23.3   the 1996-1997 and later school years for transportation services 
 23.4   for nonpublic school pupils according to sections 123.39, 123.76 
 23.5   to 123.78, 124.223, and 124.226 this section, equals the sum of 
 23.6   the amounts computed in paragraphs (b) and (c).  This revenue 
 23.7   aid does not limit the obligation to transport pupils under 
 23.8   sections 123.76 to 123.79. 
 23.9      (b) For regular and excess transportation according to 
 23.10  section 124.225, subdivision 1, paragraph (c) (b), clauses (1) 
 23.11  and (3) (2), an amount equal to the product of: 
 23.12     (1) the district's actual expenditure per pupil transported 
 23.13  in the regular and excess transportation categories during the 
 23.14  second preceding school year; times 
 23.15     (2) the number of nonpublic school pupils residing in the 
 23.16  district who receive regular or excess transportation service or 
 23.17  reimbursement for the current school year; times 
 23.18     (3) the ratio of the formula allowance pursuant to section 
 23.19  124A.22, subdivision 2, for the current school year to the 
 23.20  formula allowance pursuant to section 124A.22, subdivision 2, 
 23.21  for the second preceding school year. 
 23.22     (c) For nonpublic nonregular transportation according to 
 23.23  section 124.225, subdivision 1, paragraph (c) (b), 
 23.24  clause (2) (5), excluding transportation services for children 
 23.25  with disabilities under section 124.223, subdivisions 4, 5, 7, 
 23.26  and 8, and late activity transportation according to section 
 23.27  124.226, subdivision 9, an amount equal to the product of: 
 23.28     (1) the district's actual expenditure for nonpublic 
 23.29  nonregular and late activity transportation for nonpublic school 
 23.30  pupils during the second preceding school year; times 
 23.31     (2) the ratio of the formula allowance pursuant to section 
 23.32  124A.22, subdivision 2, for the current school year to the 
 23.33  formula allowance pursuant to section 124A.22, subdivision 2, 
 23.34  for the second preceding school year. 
 23.35     (d) Notwithstanding the amount of the formula allowance for 
 23.36  fiscal years 1997 and 1998 in section 124A.22, subdivision 2, 
 24.1   the commissioner shall use the amount of the formula 
 24.2   allowance for the current year less $300 in determining the 
 24.3   nonpublic pupil transportation revenue in paragraphs (b) and (c) 
 24.4   for fiscal years 1997 and 1998. 
 24.5      Sec. 24.  Minnesota Statutes 1996, section 124.225, 
 24.6   subdivision 17, is amended to read: 
 24.7      Subd. 17.  [TARGETED NEEDS TRANSPORTATION AID.] (a) For 
 24.8   fiscal years 1997 and 1998, a district's targeted needs 
 24.9   transportation aid is the difference between its targeted needs 
 24.10  transportation revenue under subdivision 13 and its targeted 
 24.11  needs transportation levy under section 124.226, subdivision 10. 
 24.12     (b) If a district does not levy the entire amount 
 24.13  permitted, aid must be reduced in proportion to the actual 
 24.14  amount levied. 
 24.15     Sec. 25.  Minnesota Statutes 1996, section 124.226, 
 24.16  subdivision 10, is amended to read: 
 24.17     Subd. 10.  [TARGETED NEEDS TRANSPORTATION LEVY.] A school 
 24.18  district may make a levy for targeted needs transportation costs 
 24.19  according to this subdivision.  The amount of the levy shall be 
 24.20  the result of the following computation: 
 24.21     (1) For fiscal year years 1997 and later 1998, targeted 
 24.22  needs transportation levy equalization revenue equals 28 percent 
 24.23  of the sum of the district's special programs transportation 
 24.24  revenue under section 124.225, subdivision 14, and the 
 24.25  district's integration transportation revenue under section 
 24.26  124.225, subdivision 15. 
 24.27     (2) The targeted needs transportation levy equals the 
 24.28  result in clause (1) times the lesser of one or the ratio of (i) 
 24.29  the quotient derived by dividing the adjusted net tax capacity 
 24.30  of the district for the year before the year the levy is 
 24.31  certified by the actual pupil units in the district for the 
 24.32  school year to which the levy is attributable, to (ii) $3,540. 
 24.33     Sec. 26.  Minnesota Statutes 1996, section 124.912, 
 24.34  subdivision 1, is amended to read: 
 24.35     Subdivision 1.  [STATUTORY OBLIGATIONS.] (a) A school 
 24.36  district may levy: 
 25.1      (1) the amount authorized for liabilities of dissolved 
 25.2   districts pursuant to section 122.45; 
 25.3      (2) the amounts necessary to pay the district's obligations 
 25.4   under section 268.06, subdivision 25; and the amounts necessary 
 25.5   to pay for job placement services offered to employees who may 
 25.6   become eligible for benefits pursuant to section 268.08 for the 
 25.7   fiscal year the levy is certified; 
 25.8      (3) the amounts necessary to pay the district's obligations 
 25.9   under section 127.05; 
 25.10     (4) the amounts authorized by section 122.531; 
 25.11     (5) the amounts necessary to pay the district's obligations 
 25.12  under section 122.533; and 
 25.13     (6) for severance pay required by sections 120.08, 
 25.14  subdivision 3, and 122.535, subdivision 6. 
 25.15     (b) Each year, a member district of an education district 
 25.16  that levies under this subdivision must transfer the amount of 
 25.17  revenue certified under paragraph (b) to the education district 
 25.18  board according to this subdivision.  By June 20 and November 30 
 25.19  of each year, an amount must be transferred equal to: 
 25.20     (1) 50 percent times 
 25.21     (2) the amount certified in paragraph (b) minus homestead 
 25.22  and agricultural credit aid allocated for that levy according to 
 25.23  section 273.1398, subdivision 6. 
 25.24     Sec. 27.  Minnesota Statutes 1996, section 124.912, 
 25.25  subdivision 2, is amended to read: 
 25.26     Subd. 2.  [DESEGREGATION.] Each year, special school 
 25.27  district No. 1, Minneapolis, may levy an amount not to exceed 
 25.28  $197 times its actual pupil units for that fiscal year; 
 25.29  independent school district No. 625, St. Paul, may levy an 
 25.30  amount not to exceed $197 times its actual pupil units for that 
 25.31  fiscal year; and independent school district No. 709, Duluth, 
 25.32  may levy an amount not to exceed the sum of $660,000 and the 
 25.33  amount raised by a tax rate of 2.0 percent times the adjusted 
 25.34  net tax capacity of the district.  Notwithstanding section 
 25.35  121.904, the entire amount of this levy shall be recognized as 
 25.36  revenue for the fiscal year in which the levy is certified.  
 26.1   This levy shall not be considered in computing the aid reduction 
 26.2   under section 124.155. 
 26.3      Sec. 28.  Minnesota Statutes 1996, section 124.912, 
 26.4   subdivision 3, is amended to read: 
 26.5      Subd. 3.  [RULE COMPLIANCE.] Each year a district that is 
 26.6   required to implement a plan according to the requirements of 
 26.7   Minnesota Rules, parts 3535.0200 to 3535.2200, may levy an 
 26.8   amount not to exceed a net tax rate of 2.0 percent times the 
 26.9   adjusted net tax capacity of the district for taxes payable in 
 26.10  1991 and thereafter.  A district that levies according to 
 26.11  subdivision 2 may not levy according to this subdivision.  
 26.12  Notwithstanding section 121.904, the entire amount of this levy 
 26.13  shall be recognized as revenue for the fiscal year in which the 
 26.14  levy is certified.  This levy shall not be considered in 
 26.15  computing the aid reduction under section 124.155.  
 26.16     Sec. 29.  Minnesota Statutes 1996, section 124.916, 
 26.17  subdivision 1, is amended to read: 
 26.18     Subdivision 1.  [HEALTH INSURANCE.] (a) A school district 
 26.19  may levy the amount necessary to make employer contributions for 
 26.20  insurance for retired employees under this 
 26.21  subdivision.  Notwithstanding section 121.904, 50 percent of the 
 26.22  amount levied shall be recognized as revenue for the fiscal year 
 26.23  in which the levy is certified.  This levy shall not be 
 26.24  considered in computing the aid reduction under section 124.155. 
 26.25     (b) The school board of a joint vocational technical 
 26.26  district formed under sections 136C.60 to 136C.69 and the school 
 26.27  board of a school district may provide employer-paid hospital, 
 26.28  medical, and dental benefits to a person who: 
 26.29     (1) is eligible for employer-paid insurance under 
 26.30  collective bargaining agreements or personnel plans in effect on 
 26.31  June 30, 1992; 
 26.32     (2) has at least 25 years of service credit in the public 
 26.33  pension plan of which the person is a member on the day before 
 26.34  retirement or, in the case of a teacher, has a total of at least 
 26.35  25 years of service credit in the teachers retirement 
 26.36  association, a first-class city teacher retirement fund, or any 
 27.1   combination of these; 
 27.2      (3) upon retirement is immediately eligible for a 
 27.3   retirement annuity; 
 27.4      (4) is at least 55 and not yet 65 years of age; and 
 27.5      (5) retires on or after May 15, 1992, and before July 21, 
 27.6   1992. 
 27.7      A school board paying insurance under this subdivision may 
 27.8   not exclude any eligible employees. 
 27.9      (c) An employee who is eligible both for the health 
 27.10  insurance benefit under this subdivision and for an early 
 27.11  retirement incentive under a collective bargaining agreement or 
 27.12  personnel plan established by the employer must select either 
 27.13  the early retirement incentive provided under the collective 
 27.14  bargaining agreement personnel plan or the incentive provided 
 27.15  under this subdivision, but may not receive both.  For purposes 
 27.16  of this subdivision, a person retires when the person terminates 
 27.17  active employment and applies for retirement benefits.  The 
 27.18  retired employee is eligible for single and dependent coverages 
 27.19  and employer payments to which the person was entitled 
 27.20  immediately before retirement, subject to any changes in 
 27.21  coverage and employer and employee payments through collective 
 27.22  bargaining or personnel plans, for employees in positions 
 27.23  equivalent to the position from which the employee retired.  The 
 27.24  retired employee is not eligible for employer-paid life 
 27.25  insurance.  Eligibility ceases when the retired employee attains 
 27.26  the age of 65, or when the employee chooses not to receive the 
 27.27  retirement benefits for which the employee has applied, or when 
 27.28  the employee is eligible for employer-paid health insurance from 
 27.29  a new employer.  Coverages must be coordinated with relevant 
 27.30  health insurance benefits provided through the federally 
 27.31  sponsored Medicare program.  
 27.32     (d) Unilateral implementation of this section by a public 
 27.33  employer is not an unfair labor practice for purposes of chapter 
 27.34  179A.  The authority provided in this subdivision for an 
 27.35  employer to pay health insurance costs for certain retired 
 27.36  employees is not subject to the limits in section 179A.20, 
 28.1   subdivision 2a. 
 28.2      (e) If a school district levies according to this 
 28.3   subdivision, it may not also levy according to section 122.531, 
 28.4   subdivision 9, for eligible employees. 
 28.5      Sec. 30.  Minnesota Statutes 1996, section 124.916, 
 28.6   subdivision 2, is amended to read: 
 28.7      Subd. 2.  [RETIRED EMPLOYEE HEALTH BENEFITS.] For taxes 
 28.8   payable in 1996, 1997, 1998, and 1999 only, a school district 
 28.9   may levy an amount up to the amount the district is required by 
 28.10  the collective bargaining agreement in effect on March 30, 1992, 
 28.11  to pay for health insurance or unreimbursed medical expenses for 
 28.12  licensed and nonlicensed employees who have terminated services 
 28.13  in the employing district and withdrawn from active teaching 
 28.14  service or other active service, as applicable, before July 1, 
 28.15  1992.  The total amount of the levy each year may not exceed 
 28.16  $300,000.  
 28.17     Notwithstanding section 121.904, 50 percent of the proceeds 
 28.18  of this levy shall be recognized in the fiscal year in which it 
 28.19  is certified. 
 28.20     Sec. 31.  Minnesota Statutes 1996, section 124.916, 
 28.21  subdivision 3, is amended to read: 
 28.22     Subd. 3.  [RETIREMENT LEVIES.] (1) In addition to the 
 28.23  excess levy authorized in 1976 any district within a city of the 
 28.24  first class which was authorized in 1975 to make a retirement 
 28.25  levy under Minnesota Statutes 1974, section 275.127 and chapter 
 28.26  422A may levy an amount per pupil unit which is equal to the 
 28.27  amount levied in 1975 payable 1976, under Minnesota Statutes 
 28.28  1974, section 275.127 and chapter 422A, divided by the number of 
 28.29  pupil units in the district in 1976-1977. 
 28.30     (2) In 1979 and each year thereafter, any district which 
 28.31  qualified in 1976 for an extra levy under paragraph (1) shall be 
 28.32  allowed to levy the same amount as levied for retirement in 1978 
 28.33  under this clause reduced each year by ten percent of the 
 28.34  difference between the amount levied for retirement in 1971 
 28.35  under Minnesota Statutes 1971, sections 275.127 and 422.01 to 
 28.36  422.54 and the amount levied for retirement in 1975 under 
 29.1   Minnesota Statutes 1974, section 275.127 and chapter 422A. 
 29.2      (3) In 1991 and each year thereafter, a district to which 
 29.3   this subdivision applies may levy an additional amount required 
 29.4   for contributions to the Minneapolis employees retirement fund 
 29.5   as a result of the maximum dollar amount limitation on state 
 29.6   contributions to the fund imposed under section 422A.101, 
 29.7   subdivision 3.  The additional levy shall not exceed the most 
 29.8   recent amount certified by the board of the Minneapolis 
 29.9   employees retirement fund as the district's share of the 
 29.10  contribution requirement in excess of the maximum state 
 29.11  contribution under section 422A.101, subdivision 3.  
 29.12     (4) For taxes payable in 1994 and thereafter, special 
 29.13  school district No. 1, Minneapolis, and independent school 
 29.14  district No. 625, St. Paul, may levy for the increase in the 
 29.15  employer retirement fund contributions, under Laws 1992, chapter 
 29.16  598, article 5, section 1.  Notwithstanding section 121.904, the 
 29.17  entire amount of this levy may be recognized as revenue for the 
 29.18  fiscal year in which the levy is certified.  This levy shall not 
 29.19  be considered in computing the aid reduction under section 
 29.20  124.155. 
 29.21     (5) If the employer retirement fund contributions under 
 29.22  section 354A.12, subdivision 2a, are increased for fiscal year 
 29.23  1994 or later fiscal years, special school district No. 1, 
 29.24  Minneapolis, and independent school district No. 625, St. Paul, 
 29.25  may levy in payable 1994 or later an amount equal to the amount 
 29.26  derived by applying the net increase in the employer retirement 
 29.27  fund contribution rate of the respective teacher retirement fund 
 29.28  association between fiscal year 1993 and the fiscal year 
 29.29  beginning in the year after the levy is certified to the total 
 29.30  covered payroll of the applicable teacher retirement fund 
 29.31  association.  Notwithstanding section 121.904, the entire amount 
 29.32  of this levy may be recognized as revenue for the fiscal year in 
 29.33  which the levy is certified.  This levy shall not be considered 
 29.34  in computing the aid reduction under section 124.155.  If an 
 29.35  applicable school district levies under this paragraph, they may 
 29.36  not levy under paragraph (4). 
 30.1      (6) In addition to the levy authorized under paragraph (5), 
 30.2   special school district No. 1, Minneapolis, may also levy 
 30.3   payable in 1997 or later an amount equal to the contributions 
 30.4   under section 423A.02, subdivision 3, and may also levy in 
 30.5   payable 1994 or later an amount equal to the state aid 
 30.6   contribution under section 354A.12, subdivision 3b.  Independent 
 30.7   school district No. 625, St. Paul, may levy payable in 1997 or 
 30.8   later an amount equal to the supplemental contributions under 
 30.9   section 423A.02, subdivision 3.  Notwithstanding section 
 30.10  121.904, the entire amount of these levies may be recognized as 
 30.11  revenue for the fiscal year in which the levy is certified.  
 30.12  These levies shall not be considered in computing the aid 
 30.13  reduction under section 124.155. 
 30.14     Sec. 32.  Minnesota Statutes 1996, section 124.918, 
 30.15  subdivision 6, is amended to read: 
 30.16     Subd. 6.  [ADJUSTMENTS FOR LAW CHANGES.] Whenever a change 
 30.17  enacted in law changes the levy authority for a school district 
 30.18  or an intermediate school district for a fiscal year after the 
 30.19  levy for that fiscal year has been certified by the district 
 30.20  under section 275.07, the department of children, families, and 
 30.21  learning shall adjust the next levy certified by the district by 
 30.22  the amount of the change in levy authority for that fiscal year 
 30.23  resulting from the change.  Notwithstanding section 121.904, the 
 30.24  entire amount for fiscal year 1992 and 50 percent for fiscal 
 30.25  years thereafter of the levy adjustment must be recognized as 
 30.26  revenue in the fiscal year the levy is certified, if sufficient 
 30.27  levy resources are available under generally accepted accounting 
 30.28  principles in the district fund where the adjustment is to 
 30.29  occur.  School districts that do not have sufficient levy 
 30.30  resources available in the fund where the adjustment is to occur 
 30.31  shall recognize in the fiscal year the levy is certified an 
 30.32  amount equal to the levy resources available.  The remaining 
 30.33  adjustment amount shall be recognized as revenue in the fiscal 
 30.34  year after the levy is certified. 
 30.35     Sec. 33.  Minnesota Statutes 1996, section 124A.03, 
 30.36  subdivision 1c, is amended to read: 
 31.1      Subd. 1c.  [REFERENDUM ALLOWANCE LIMIT.] Notwithstanding 
 31.2   subdivision 1b, a district's referendum allowance must not 
 31.3   exceed the greater of:  
 31.4      (1) the district's referendum allowance for fiscal year 
 31.5   1994; or 
 31.6      (2) 25 percent of the formula allowance minus $300 for 
 31.7   fiscal year 1997 and later; or 
 31.8      (3) for a newly reorganized district created after July 1, 
 31.9   1994, the sum of the referendum revenue authority for the 
 31.10  reorganizing districts for the fiscal year preceding the 
 31.11  reorganization, divided by the sum of the actual pupil units of 
 31.12  the reorganizing districts for the fiscal year preceding the 
 31.13  reorganization. 
 31.14     Sec. 34.  Minnesota Statutes 1996, section 124A.03, 
 31.15  subdivision 1g, is amended to read: 
 31.16     Subd. 1g.  [REFERENDUM EQUALIZATION LEVY.] (a) For fiscal 
 31.17  year 1996, a district's referendum equalization levy equals the 
 31.18  district's referendum equalization revenue times the lesser of 
 31.19  one or the ratio of the district's adjusted net tax capacity per 
 31.20  actual pupil unit to 100 percent of the equalizing factor as 
 31.21  defined in section 124A.02, subdivision 8. 
 31.22     (b) For fiscal year 1997 1999 and thereafter, a district's 
 31.23  referendum equalization levy for a referendum levied against the 
 31.24  referendum market value of all taxable property as defined in 
 31.25  section 124A.02, subdivision 3b, equals the district's 
 31.26  referendum equalization revenue times the lesser of one or the 
 31.27  ratio of the district's referendum market value per actual pupil 
 31.28  unit to $476,000. 
 31.29     (c) (b) For fiscal year 1997 1999 and thereafter, a 
 31.30  district's referendum equalization levy for a referendum levied 
 31.31  against the net tax capacity of all taxable property equals the 
 31.32  district's referendum equalization revenue times the lesser of 
 31.33  one or the ratio of the district's adjusted net tax capacity per 
 31.34  actual pupil unit to 100 percent of the equalizing factor for 
 31.35  that year $10,000. 
 31.36     Sec. 35.  Minnesota Statutes 1996, section 124A.04, 
 32.1   subdivision 2, is amended to read: 
 32.2      Subd. 2.  [1993 1999 AND LATER.] The training and 
 32.3   experience index for fiscal year 1999 and later must be 
 32.4   constructed in the following manner:  
 32.5      (a) The department shall construct a matrix that classifies 
 32.6   teachers by the extent of training received in accredited 
 32.7   institutions of higher education and by the years of experience 
 32.8   that districts take into account in determining teacher salaries.
 32.9      (b) The average salary for each cell of the matrix must be 
 32.10  computed as follows using data from the second year of the 
 32.11  previous biennium fiscal year 1997:  
 32.12     (1) For each school district, multiply the salary paid to 
 32.13  full-time equivalent teachers with that combination of training 
 32.14  and experience according to the district's teacher salary 
 32.15  schedule by the number of actual pupil units in that district.  
 32.16     (2) Add the amounts computed in clause (1) for all 
 32.17  districts in the state and divide the resulting sum by the total 
 32.18  number of actual pupil units in all districts in the state that 
 32.19  employ teachers.  
 32.20     (c) For each cell in the matrix, compute the ratio of the 
 32.21  average salary in that cell to the average salary for all 
 32.22  teachers in the state during fiscal year 1997.  
 32.23     (d) The index for each district that employs teachers 
 32.24  equals the sum of:  (i) for teachers employed in that district 
 32.25  during fiscal year 1997 and the current fiscal year, the ratios 
 32.26  for each teacher computed using data for fiscal year 1997; and 
 32.27  (ii) for teachers employed in that district during the current 
 32.28  fiscal year but not during fiscal year 1997, the ratio for 
 32.29  teachers who are in their first year of teaching and who have no 
 32.30  additional credits or degrees above a bachelor's degree divided 
 32.31  by the number of teachers in that district.  The index for a 
 32.32  district that employs no teachers is zero. 
 32.33     Sec. 36.  Minnesota Statutes 1996, section 124A.22, 
 32.34  subdivision 1, is amended to read: 
 32.35     Subdivision 1.  [GENERAL EDUCATION REVENUE.] (a) For fiscal 
 32.36  year 1996, the general education revenue for each district 
 33.1   equals the sum of the district's basic revenue, compensatory 
 33.2   education revenue, training and experience revenue, secondary 
 33.3   sparsity revenue, elementary sparsity revenue, and supplemental 
 33.4   revenue. 
 33.5      (b) For fiscal year years 1997 and thereafter 1998, the 
 33.6   general education revenue for each district equals the sum of 
 33.7   the district's basic revenue, compensatory education revenue, 
 33.8   secondary sparsity revenue, elementary sparsity revenue, 
 33.9   transportation sparsity revenue, total operating capital 
 33.10  revenue, transition revenue, and supplemental revenue. 
 33.11     (b) For fiscal year 1999 and thereafter, the general 
 33.12  education revenue for each district equals the sum of the 
 33.13  district's basic revenue, basic skills revenue, training and 
 33.14  experience revenue, secondary sparsity revenue, elementary 
 33.15  sparsity revenue, transportation sparsity revenue, total 
 33.16  operating capital revenue, transition revenue, and supplemental 
 33.17  revenue. 
 33.18     Sec. 37.  Minnesota Statutes 1996, section 124A.22, 
 33.19  subdivision 2, as amended by Laws 1997, chapter 1, section 4, is 
 33.20  amended to read: 
 33.21     Subd. 2.  [BASIC REVENUE.] The basic revenue for each 
 33.22  district equals the formula allowance times the actual pupil 
 33.23  units for the school year.  The formula allowance for fiscal 
 33.24  year 1995 is $3,150.  The formula allowance for fiscal year 1996 
 33.25  is $3,205.  The formula allowance for fiscal year 1997 and 
 33.26  subsequent fiscal years is $3,505.  The formula allowance for 
 33.27  fiscal year 1998 is $3,581 and the formula allowance for fiscal 
 33.28  year 1999 and subsequent fiscal years is $3,530. 
 33.29     Sec. 38.  Minnesota Statutes 1996, section 124A.22, 
 33.30  subdivision 3, is amended to read: 
 33.31     Subd. 3.  [COMPENSATORY EDUCATION REVENUE.] The 
 33.32  compensatory education revenue for each building in the district 
 33.33  equals the formula allowance less $300 times the AFDC 
 33.34  compensation revenue pupil units computed according to section 
 33.35  124.17, subdivision 1d.  Revenue shall be paid to the district 
 33.36  and must be allocated according to section 124A.28, subdivision 
 34.1   1a. 
 34.2      Sec. 39.  Minnesota Statutes 1996, section 124A.22, is 
 34.3   amended by adding a subdivision to read: 
 34.4      Subd. 3a.  [BASIC SKILLS REVENUE.] For fiscal year 1999 and 
 34.5   thereafter, a school district's basic skills revenue equals the 
 34.6   sum of: 
 34.7      (1) compensatory revenue under subdivision 3; plus 
 34.8      (2) limited English proficiency revenue according to 
 34.9   section 124.273, subdivision 1g; plus 
 34.10     (3) $190 times the limited English proficiency pupil units 
 34.11  according to section 124.17, subdivision 6; plus 
 34.12     (4) the lesser of:  (i) $22.50 times the number of fund 
 34.13  balance pupil units in kindergarten to grade 8; or (ii) the 
 34.14  amount of district money provided to match basic skills revenue 
 34.15  for the purposes described in section 124A.28. 
 34.16     Sec. 40.  Minnesota Statutes 1996, section 124A.22, 
 34.17  subdivision 6, is amended to read: 
 34.18     Subd. 6.  [SECONDARY SPARSITY REVENUE.] (a) A district's 
 34.19  secondary sparsity revenue for a school year equals the sum of 
 34.20  the results of the following calculation for each qualifying 
 34.21  high school in the district: 
 34.22     (1) the formula allowance for the school year less $300, 
 34.23  multiplied by 
 34.24     (2) the secondary average daily membership of the high 
 34.25  school, multiplied by 
 34.26     (3) the quotient obtained by dividing 400 minus the 
 34.27  secondary average daily membership by 400 plus the secondary 
 34.28  daily membership, multiplied by 
 34.29     (4) the lesser of 1.5 or the quotient obtained by dividing 
 34.30  the isolation index minus 23 by ten. 
 34.31     (b) A newly formed school district that is the result of 
 34.32  districts combining under the cooperation and combination 
 34.33  program or consolidating under section 122.23 shall receive 
 34.34  secondary sparsity revenue equal to the greater of:  (1) the 
 34.35  amount calculated under paragraph (a) for the combined district; 
 34.36  or (2) the sum of the amounts of secondary sparsity revenue the 
 35.1   former school districts had in the year prior to consolidation, 
 35.2   increased for any subsequent changes in the secondary sparsity 
 35.3   formula. 
 35.4      Sec. 41.  Minnesota Statutes 1996, section 124A.22, 
 35.5   subdivision 6a, is amended to read: 
 35.6      Subd. 6a.  [ELEMENTARY SPARSITY REVENUE.] A district's 
 35.7   elementary sparsity revenue equals the sum of the following 
 35.8   amounts for each qualifying elementary school in the district:  
 35.9      (1) the formula allowance for the year less $300, 
 35.10  multiplied by 
 35.11     (2) the elementary average daily membership of the school, 
 35.12  multiplied by 
 35.13     (3) the quotient obtained by dividing 140 minus the 
 35.14  elementary average daily membership by 140 plus the average 
 35.15  daily membership. 
 35.16     Sec. 42.  Minnesota Statutes 1996, section 124A.22, 
 35.17  subdivision 8a, is amended to read: 
 35.18     Subd. 8a.  [SUPPLEMENTAL LEVY.] To obtain supplemental 
 35.19  revenue, a district may levy an amount not more than the product 
 35.20  of its supplemental revenue for the school year times the lesser 
 35.21  of one or the ratio of its general education levy to its general 
 35.22  education revenue, excluding transition revenue and supplemental 
 35.23  revenue, for the same year adjusted net tax capacity per actual 
 35.24  pupil unit to $10,000. 
 35.25     Sec. 43.  Minnesota Statutes 1996, section 124A.22, 
 35.26  subdivision 13, is amended to read: 
 35.27     Subd. 13.  [TRANSPORTATION SPARSITY DEFINITIONS.] The 
 35.28  definitions in this subdivision apply to subdivisions 13a and 
 35.29  13b. 
 35.30     (a) "Sparsity index" for a school district means the 
 35.31  greater of .2 or the ratio of the square mile area of the school 
 35.32  district to the actual pupil units of the school district. 
 35.33     (b) "Density index" for a school district means the ratio 
 35.34  of the square mile area of the school district to the actual 
 35.35  pupil units of the school district.  However, the density index 
 35.36  for a school district cannot be greater than .2 or less than 
 36.1   .005. 
 36.2      (c) "Fiscal year 1996 base allowance" for a school district 
 36.3   means the result of the following computation: 
 36.4      (1) sum the following amounts: 
 36.5      (i) the fiscal year 1996 regular transportation revenue for 
 36.6   the school district according to section 124.225, subdivision 
 36.7   7d, paragraph (a), excluding the revenue attributable nonpublic 
 36.8   school pupils and to pupils with disabilities receiving special 
 36.9   transportation services; plus 
 36.10     (ii) the fiscal year 1996 nonregular transportation revenue 
 36.11  for the school district according to section 124.225, 
 36.12  subdivision 7d, paragraph (b), excluding the revenue for 
 36.13  desegregation transportation according to section 124.225, 
 36.14  subdivision 1, paragraph (c), clause (4), and the revenue 
 36.15  attributable to nonpublic school pupils and to pupils with 
 36.16  disabilities receiving special transportation services or board 
 36.17  and lodging; plus 
 36.18     (iii) the fiscal year 1996 excess transportation levy for 
 36.19  the school district according to section 124.226, subdivision 5, 
 36.20  excluding the levy attributable to nonpublic school pupils; plus 
 36.21     (iv) the fiscal year 1996 late activity bus levy for the 
 36.22  school district according to section 124.226, subdivision 9, 
 36.23  excluding the levy attributable to nonpublic school pupils; plus 
 36.24     (v) an amount equal to one-third of the fiscal year 1996 
 36.25  bus depreciation for the school district according to section 
 36.26  124.225, subdivision 1, paragraph (b), clauses (2), (3), and (4).
 36.27     (2) divide the result in clause (1) by the school districts 
 36.28  district's 1995-1996 actual fund balance pupil units. 
 36.29     Sec. 44.  Minnesota Statutes 1996, section 124A.22, 
 36.30  subdivision 13b, is amended to read: 
 36.31     Subd. 13b.  [TRANSITION ALLOWANCE.] (a) A district's 
 36.32  transportation transition allowance for fiscal year 1997 equals 
 36.33  the result of the following computation: 
 36.34     (1) if the result in subdivision 13a, paragraph (a), clause 
 36.35  (iii), for fiscal year 1997 is less than the fiscal year 1996 
 36.36  base allowance, the transportation transition allowance equals 
 37.1   the fiscal year 1996 base allowance minus the result in 
 37.2   subdivision 13a, paragraph (a), clause (iii). 
 37.3      (2) if the result in subdivision 13a, paragraph (b), for 
 37.4   fiscal year 1997 is greater than the fiscal year 1996 base 
 37.5   allowance and less than 110 percent of the fiscal year 1996 base 
 37.6   allowance, the transportation transition allowance equals zero. 
 37.7      (3) if the result in subdivision 13a, paragraph (b), for 
 37.8   fiscal year 1997 is greater than 110 percent of the fiscal year 
 37.9   1996 base allowance, the transportation transition allowance 
 37.10  equals 110 percent of the fiscal year 1996 base allowance minus 
 37.11  the result in subdivision 13a, paragraph (a), clause (iii). 
 37.12     (b) A district's transportation transition allowance for 
 37.13  fiscal year 1998 and later equals the result of the following: 
 37.14     (1) if the result in subdivision 13a, paragraph (a), clause 
 37.15  (iii), for fiscal year 1998 is less than the fiscal year 1996 
 37.16  base allowance, the transportation transition allowance equals 
 37.17  the fiscal year 1996 base allowance minus the result in 
 37.18  subdivision 13a, paragraph (a), clause (iii); or 
 37.19     (2) if the result in subdivision 13a, paragraph (a), clause 
 37.20  (iii), for fiscal year 1998 and later is greater than or equal 
 37.21  to the fiscal year 1996 base allowance, the transportation 
 37.22  transition allowance equals zero. 
 37.23     (c) (b) For fiscal years 1997 and 1998, a district's 
 37.24  training and experience transition allowance is equal to the 
 37.25  training and experience revenue the district would have received 
 37.26  under Minnesota Statutes 1994, section 124A.22, subdivision 4, 
 37.27  divided by the actual pupil units for fiscal year 1997 minus 
 37.28  $130.  For fiscal year 1999 and later, a district's training and 
 37.29  experience transition allowance equals zero.  
 37.30     If the training and experience transition allowance is less 
 37.31  than zero, the reduction shall be determined according to the 
 37.32  following schedule: 
 37.33     (i) (1) for fiscal year 1997, the reduction is equal to .9 
 37.34  times the amount initially determined; 
 37.35     (ii) (2) for fiscal year 1998, the reduction is equal to 
 37.36  .75 times the amount initially determined; and 
 38.1      (iii) for fiscal year 1999, the reduction is equal to .50 
 38.2   times the amount initially determined; 
 38.3      (iv) for fiscal year 2000, the reduction is equal to .25 
 38.4   times the amount initially determined; and 
 38.5      (v) for fiscal year 2001 and thereafter, the transition 
 38.6   allowance shall not be less than zero 
 38.7      (c) A district's transition compensatory allowance equals 
 38.8   the greater of zero or the difference between:  
 38.9      (1) the amount of compensatory revenue the district would 
 38.10  have received under subdivision 3 for fiscal year 1998 computed 
 38.11  using a basic formula allowance of $3,281; and 
 38.12     (2) the amount the district receives under subdivision 3; 
 38.13  divided by 
 38.14     (3) the district's actual pupil units for fiscal year 1998. 
 38.15     (d) A district's transition allowance for fiscal year 1997 
 38.16  and thereafter 1998 is equal to the sum of its transportation 
 38.17  transition allowance and, its training and experience transition 
 38.18  allowance, and its transition compensatory allowance.  A 
 38.19  district's transition allowance for fiscal year 1999 and 
 38.20  thereafter is equal to the sum of its transportation transition 
 38.21  allowance and its transition compensatory allowance. 
 38.22     Sec. 45.  Minnesota Statutes 1996, section 124A.22, 
 38.23  subdivision 13d, is amended to read: 
 38.24     Subd. 13d.  [TRANSITION LEVY ADJUSTMENT.] A district's 
 38.25  general education levy shall be adjusted by an amount equal to 
 38.26  the district's transition revenue times the lesser of 1 or the 
 38.27  ratio of the district's general education levy to its general 
 38.28  education revenue, excluding transition revenue and supplemental 
 38.29  revenue its adjusted net tax capacity per actual pupil unit to 
 38.30  $10,000. 
 38.31     Sec. 46.  Minnesota Statutes 1996, section 124A.23, 
 38.32  subdivision 1, is amended to read: 
 38.33     Subdivision 1.  [GENERAL EDUCATION TAX RATE.] The 
 38.34  commissioner shall establish the general education tax rate by 
 38.35  July 1 of each year for levies payable in the following year.  
 38.36  The general education tax capacity rate shall be a rate, rounded 
 39.1   up to the nearest tenth hundredth of a percent, that, when 
 39.2   applied to the adjusted net tax capacity for all districts, 
 39.3   raises the amount specified in this subdivision.  The general 
 39.4   education tax rate shall be the rate that raises $1,054,000,000 
 39.5   for fiscal year 1996 and $1,359,000,000 for fiscal year 1997 
 39.6   1998 and $1,385,500,000 for fiscal year 1999 and later fiscal 
 39.7   years.  The general education tax rate may not be changed due to 
 39.8   changes or corrections made to a district's adjusted net tax 
 39.9   capacity after the tax rate has been established.  If the levy 
 39.10  target for fiscal year 1999 is changed by another law enacted 
 39.11  during the 1997 session, the commissioner shall reduce the 
 39.12  target in this bill by the amount of the reduction in the 
 39.13  enacted law. 
 39.14     Sec. 47.  Minnesota Statutes 1996, section 124A.23, 
 39.15  subdivision 2, is amended to read: 
 39.16     Subd. 2.  [GENERAL EDUCATION LEVY.] To obtain general 
 39.17  education revenue, excluding transition revenue and supplemental 
 39.18  revenue, a district may levy an amount not to exceed the general 
 39.19  education tax rate times the adjusted net tax capacity of the 
 39.20  district for the preceding year.  If the amount of the general 
 39.21  education levy would exceed the general education revenue, 
 39.22  excluding supplemental revenue, the general education levy shall 
 39.23  be determined according to subdivision 3.  
 39.24     Sec. 48.  Minnesota Statutes 1996, section 124A.23, 
 39.25  subdivision 3, is amended to read: 
 39.26     Subd. 3.  [GENERAL EDUCATION LEVY; DISTRICTS OFF THE 
 39.27  FORMULA.] If the amount of the general education levy for a 
 39.28  district exceeds the district's general education revenue, 
 39.29  excluding training and experience transition revenue and 
 39.30  supplemental revenue, the amount of the general education levy 
 39.31  shall be limited to the following: 
 39.32     (1) the district's general education revenue, excluding 
 39.33  training and experience transition revenue and supplemental 
 39.34  revenue; plus 
 39.35     (2) the amount of the aid reduction for the same school 
 39.36  year according to section 124A.24; minus 
 40.1      (3) payments made for the same school year according to 
 40.2   section 124A.035, subdivision 4. 
 40.3      For purposes of statutory cross-reference, a levy made 
 40.4   according to this subdivision shall be construed to be the levy 
 40.5   made according to subdivision 2. 
 40.6      Sec. 49.  Minnesota Statutes 1996, section 124A.23, 
 40.7   subdivision 5, is amended to read: 
 40.8      Subd. 5.  [USES OF REVENUE.] Except as provided in 
 40.9   section sections 124A.22, subdivision 11; 124A.225; and 124A.28, 
 40.10  general education revenue may be used during the regular school 
 40.11  year and the summer for general and special school purposes. 
 40.12     Sec. 50.  Minnesota Statutes 1996, section 124A.26, 
 40.13  subdivision 1, is amended to read: 
 40.14     Subdivision 1.  [REVENUE REDUCTION FUND BALANCE PUPIL UNIT 
 40.15  DEFINITION.] A district's general education revenue for a school 
 40.16  year shall be reduced if the estimated net unappropriated 
 40.17  operating fund balance as of June 30 in the prior school year 
 40.18  exceeds 25 percent of the formula allowance for the current 
 40.19  fiscal year times the fund balance pupil units in the prior 
 40.20  year.  For purposes of this subdivision and section 124.243, 
 40.21  subdivision 2, Fund balance pupil units means the number of 
 40.22  resident pupil units in average daily membership, including 
 40.23  shared time pupils, according to section 124A.02, subdivision 
 40.24  20, plus 
 40.25     (1) pupils attending the district for which general 
 40.26  education aid adjustments are made according to section 
 40.27  124A.036, subdivision 5; minus 
 40.28     (2) the sum of the resident pupils attending other 
 40.29  districts for which general education aid adjustments are made 
 40.30  according to section 124A.036, subdivision 5, plus pupils for 
 40.31  whom payment is made according to section 126.22, subdivision 8, 
 40.32  or 126.23.  The amount of the reduction shall equal the lesser 
 40.33  of: 
 40.34     (1) the amount of the excess, or 
 40.35     (2) $250 times the actual pupil units for the school year. 
 40.36     The final adjustment payments made under section 124.195, 
 41.1   subdivision 6, must be adjusted to reflect actual net operating 
 41.2   fund balances as of June 30 of the prior school year. 
 41.3      Sec. 51.  Minnesota Statutes 1996, section 124A.28, is 
 41.4   amended to read: 
 41.5      124A.28 [COMPENSATORY EDUCATION REVENUE.] 
 41.6      Subdivision 1.  [USE OF THE REVENUE.] The compensatory 
 41.7   education revenue under section 124A.22, subdivision 3, must be 
 41.8   used to meet the educational needs of pupils whose educational 
 41.9   achievement progress toward meeting state or local content or 
 41.10  performance standards is below the level that is appropriate for 
 41.11  pupils learners of their age.  These needs may be met by 
 41.12  providing the Any of the following may be provided to meet these 
 41.13  learners' needs: 
 41.14     (1) direct instructional services under the assurance of 
 41.15  mastery program according to section 124.311 124.3111; 
 41.16     (2) remedial instruction in reading, language arts, and 
 41.17  mathematics, other content areas, or study skills to improve the 
 41.18  achievement level of these pupils learners; 
 41.19     (3) additional teachers and teacher aides to provide more 
 41.20  individualized instruction to these pupils learners through 
 41.21  individual tutoring, lower instructor-to-learner ratios, or team 
 41.22  teaching; 
 41.23     (4) summer programs that enable these pupils to improve 
 41.24  their achievement or that reemphasize material taught during the 
 41.25  regular school year a longer school day or week during the 
 41.26  regular school year or through a summer program that may be 
 41.27  offered directly by the site or under a performance-based 
 41.28  contract with a community-based organization; 
 41.29     (5) in-service education comprehensive and ongoing staff 
 41.30  development consistent with district and site plans according to 
 41.31  section 126.70, for teachers, teacher aides, principals, and 
 41.32  other personnel to improve their ability to recognize identify 
 41.33  the needs of these pupils learners and provide 
 41.34  appropriate responses to the pupils' needs remediation, 
 41.35  intervention, accommodations, or modifications; 
 41.36     (6) for instructional material for these pupils including:  
 42.1   textbooks, workbooks, periodicals, pamphlets, photographs, 
 42.2   reproductions, filmstrips, prepared slides, prerecorded video 
 42.3   programs, sound recordings, desk charts, games, study prints and 
 42.4   pictures, desk maps, models, learning kits, blocks and cubes, 
 42.5   flashcards, instructional computer software programs, pencils, 
 42.6   pens, crayons, notebooks, duplicating fluids, and 
 42.7   papers materials and technology appropriate for meeting the 
 42.8   individual needs of these learners; 
 42.9      (7) programs to reduce truancy, encourage completion of 
 42.10  high school, enhance self-concept, provide health services, 
 42.11  provide nutrition services, provide a safe and secure learning 
 42.12  environment, provide coordination for pupils receiving services 
 42.13  from other governmental agencies, provide psychological services 
 42.14  to determine the level of social, emotional, cognitive, and 
 42.15  intellectual development, and provide counseling services, 
 42.16  guidance services, and social work services; 
 42.17     (8) bilingual programs, bicultural programs, and programs 
 42.18  for pupils learners of limited English proficiency; 
 42.19     (9) all day kindergarten; 
 42.20     (10) extended school day and extended school year programs; 
 42.21  and 
 42.22     (11) substantial parent involvement in developing and 
 42.23  implementing remedial education or intervention plans for a 
 42.24  learner, including learning contracts between the school, the 
 42.25  learner, and the parent that establish achievement goals and 
 42.26  responsibilities of the learner and the learner's parent or 
 42.27  guardian; and 
 42.28     (12) other methods to increase achievement, as needed.  
 42.29     Subd. 1a.  [BUILDING ALLOCATION.] A district must consider 
 42.30  the concentration of children from low-income families 
 42.31  in allocate revenue to each school building in the district when 
 42.32  allocating compensatory revenue where the children who have 
 42.33  generated the revenue are served. 
 42.34     If the pupil is served at a site other than one owned and 
 42.35  operated by the district, the revenue shall be paid to the 
 42.36  district and used for services for pupils who generate the 
 43.1   revenue. 
 43.2      Subd. 1b.  [RECOMMENDATION.] A school site decision-making 
 43.3   team, as defined in section 123.951, subdivision 3, paragraph 
 43.4   (a), or the instruction and curriculum advisory committee under 
 43.5   section 123.972, if the school has no school site decision team, 
 43.6   shall recommend how the revenue will be used to carry out the 
 43.7   purpose of this section. 
 43.8      Subd. 2.  [SEPARATE ACCOUNTS.] Each district that receives 
 43.9   compensatory education revenue shall maintain separate accounts 
 43.10  to identify expenditures for salaries and programs related to 
 43.11  this basic skills revenue. 
 43.12     Subd. 3.  [ANNUAL EXPENDITURE REPORT.] Each year a district 
 43.13  that receives compensatory education revenue shall submit a 
 43.14  report identifying the expenditures it incurred in providing 
 43.15  compensatory education to the pupils described in to meet the 
 43.16  needs of eligible learners under subdivision 1.  The report must 
 43.17  conform to uniform financial and reporting standards established 
 43.18  for this purpose. 
 43.19     Sec. 52.  Laws 1991, chapter 265, article 1, section 30, as 
 43.20  amended by Laws 1993, chapter 224, article 8, section 19, is 
 43.21  amended to read: 
 43.22     Sec. 30.  [BADGER SCHOOL DISTRICT FUND BALANCE.] 
 43.23     If independent school district No. 676, Badger, receives 
 43.24  payment of delinquent property taxes from one taxpayer and the 
 43.25  payment is more than five percent of the total property taxes 
 43.26  paid in the fiscal year in which the payment is received, 
 43.27  general education revenue for the district shall not be reduced 
 43.28  according to Minnesota Statutes, section 124A.26, subdivision 1, 
 43.29  for an excess fund balance attributed to the payment for the 
 43.30  following five ten fiscal years. 
 43.31     Sec. 53.  Laws 1995, First Special Session chapter 3, 
 43.32  article 1, section 56, is amended to read: 
 43.33     Sec. 56.  [SUPPLEMENTAL REVENUE REDUCTION.] 
 43.34     For fiscal years 1996 1998 and 1997 1999, if a district's 
 43.35  ratio of 1992 adjusted net tax capacity divided by 1994-1995 
 43.36  actual pupil units to $9,025 is less than or equal to .25, then 
 44.1   the difference under Minnesota Statutes, section 124A.22, 
 44.2   subdivision 9, clause (2), is equal to $25 $0 for purposes of 
 44.3   computing the district's supplemental revenue under Minnesota 
 44.4   Statutes, section 124A.22, subdivision 8.  For purposes of 
 44.5   computing the referendum allowance reduction under Minnesota 
 44.6   Statutes, section 124A.03, subdivision 3b, the supplemental 
 44.7   revenue reduction shall be computed according to Minnesota 
 44.8   Statutes, section 124A.22, subdivision 9. 
 44.9      Sec. 54.  Laws 1995, First Special Session chapter 3, 
 44.10  article 2, section 52, is amended to read: 
 44.11     Sec. 52.  [TRANSPORTATION AIDS AND LEVIES; SUSPENSION.] 
 44.12     Minnesota Statutes 1994, sections 124.225, subdivisions 1, 
 44.13  3a, 7a, 7b, 7d, 7e, 8a, 8k, 8m, and 10; and 124.226, 
 44.14  subdivisions 1, 2, 3a, 4, 5, 6, 7, and 8, do not apply to aids 
 44.15  payable in fiscal years 1997 and 1998 or to levies made in 1995 
 44.16  and 1996 for taxes payable in 1996 and 1997. 
 44.17     Sec. 55.  [RESTORATION OF REVENUE LOST TO FUND BALANCE 
 44.18  REDUCTION; MADELIA.] 
 44.19     Subdivision 1.  [AID ADJUSTMENT.] Notwithstanding Minnesota 
 44.20  Statutes, section 124A.26, subdivision 3, general education aid 
 44.21  for independent school district No. 837, Madelia, shall not be 
 44.22  reduced for fiscal year 1997. 
 44.23     Subd. 2.  [LEVY ADJUSTMENT.] Independent school district No.
 44.24  837, Madelia, may make a positive levy adjustment for taxes 
 44.25  payable in 1998 equal to the amount of the general education 
 44.26  levy reduction required under Minnesota Statutes, section 
 44.27  124A.26, subdivision 2, attributed to fiscal year 1997. 
 44.28     Sec. 56.  [RESTORATION OF REVENUE LOST TO FUND BALANCE 
 44.29  REDUCTION; HERMAN-NORCROSS.] 
 44.30     Subdivision 1.  [AID ADJUSTMENT.] Notwithstanding Minnesota 
 44.31  Statutes, section 124A.26, subdivision 3, general education aid 
 44.32  for independent school district No. 264, Herman-Norcross, shall 
 44.33  not be reduced for fiscal year 1997. 
 44.34     Subd. 2.  [LEVY ADJUSTMENT.] Independent school district No.
 44.35  264, Herman-Norcross, may make a positive levy adjustment for 
 44.36  taxes payable in 1998 equal to the amount of the general 
 45.1   education levy reduction required under Minnesota Statutes, 
 45.2   section 124A.26, subdivision 2, attributed to fiscal year 1997. 
 45.3      Sec. 57.  [LEVY ADJUSTMENT ATTRIBUTABLE TO THE REPEAL OF 
 45.4   THE K-12 APPROPRIATIONS CAPS.] 
 45.5      Notwithstanding Minnesota Statutes, section 124.918, 
 45.6   subdivision 6, a school district may spread any positive 
 45.7   referendum levy adjustments for fiscal year 1998 resulting from 
 45.8   the enactment of Laws 1997, chapter 1, over a three-year period 
 45.9   beginning with taxes payable in 1998. 
 45.10     Sec. 58.  [BUS PURCHASE LEVY.] 
 45.11     For 1997 taxes payable in 1998, a school district may levy 
 45.12  the amount necessary to eliminate the deficit in the reserved 
 45.13  fund balance account for bus purchases in its transportation 
 45.14  fund as of June 30, 1996. 
 45.15     Sec. 59.  [LEP CONCENTRATION AID; FISCAL YEAR 1998.] 
 45.16     For fiscal year 1998 only, a school district's LEP revenue 
 45.17  under Minnesota Statutes, section 124.273, subdivision 1g, is 
 45.18  increased by $190 times the district's LEP pupil units 
 45.19  determined according to article 2, section 3. 
 45.20     Sec. 60.  [COMPENSATORY REVENUE GROWTH LIMIT.] 
 45.21     For fiscal years 1998 and 1999, the commissioner shall 
 45.22  limit the growth in compensatory revenue a district receives 
 45.23  according to this article.  The commissioner shall compare the 
 45.24  compensatory revenue a district receives under the changes in 
 45.25  section 12 with the compensatory revenue per pupil unit a 
 45.26  district would have received if section 12 had not been 
 45.27  enacted.  A district may not receive an increase in compensatory 
 45.28  revenue in excess of $300 per pupil unit. 
 45.29     Sec. 61.  [SCHOOL DISTRICT LEVY ADJUSTMENTS.] 
 45.30     Subdivision 1.  [REVENUE CONVERSION.] The commissioner of 
 45.31  children, families, and learning shall adjust each school 
 45.32  district's revenue authority that is established as a rate times 
 45.33  net tax capacity or adjusted net tax capacity under Minnesota 
 45.34  Statutes, chapters 124 and 124A, by multiplying each revenue 
 45.35  amount by the ratio of the statewide tax capacity as calculated 
 45.36  using the class rates in effect for assessment year 1996 to the 
 46.1   statewide tax capacity using the class rates for that assessment 
 46.2   year. 
 46.3      Subd. 2.  [TAX RATE ADJUSTMENT.] The commissioner shall 
 46.4   adjust each tax rate established under Minnesota Statutes, 
 46.5   chapters 124 and 124A, by multiplying the rate by the ratio of 
 46.6   the statewide tax capacity as calculated using the class rates 
 46.7   in effect for assessment year 1996 to the statewide tax capacity 
 46.8   using the class rates for that assessment year. 
 46.9      Subd. 3.  [EQUALIZING FACTORS.] The commissioner shall 
 46.10  adjust each equalizing factor established under Minnesota 
 46.11  Statutes, chapters 124 and 124A, by dividing the equalizing 
 46.12  factor by the ratio of the statewide tax capacity as calculated 
 46.13  using the class rates in effect for assessment year 1996 to the 
 46.14  statewide tax capacity using the class rates for that assessment 
 46.15  year. 
 46.16     Subd. 4.  [QUALIFYING RATE.] The commissioner shall adjust 
 46.17  the qualifying rate under section 124.95, subdivision 3, by 
 46.18  multiplying the qualifying rate times the ratio of the statewide 
 46.19  tax capacity, as calculated using the class rates in effect for 
 46.20  assessment year 1996, to the statewide tax capacity using the 
 46.21  class rates for that assessment year. 
 46.22     Sec. 62.  [APPROPRIATIONS.] 
 46.23     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 46.24  LEARNING.] The sums indicated in this section are appropriated 
 46.25  from the general fund to the department of children, families, 
 46.26  and learning for the fiscal years designated.  
 46.27     Subd. 2.  [GENERAL AND SUPPLEMENTAL EDUCATION AID.] For 
 46.28  general and supplemental education aid:  
 46.29   $2,584,703,000     .....     1998
 46.30   $2,698,990,000     .....     1999
 46.31     The 1998 appropriation includes $227,499,000 for 1997 and 
 46.32  $2,357,204,000 for 1998.  
 46.33     The 1999 appropriation includes $247,099,000 for 1998 and 
 46.34  $2,451,891,000 for 1999.  
 46.35     Of the 1998 appropriation, the first $113,800,000 is from 
 46.36  the education aids reserve of the general fund. 
 47.1      Subd. 3.  [TRANSPORTATION SAFETY.] For student 
 47.2   transportation safety aid according to Minnesota Statutes, 
 47.3   section 124.225, subdivision 8m: 
 47.4        $1,430,000     .....     1998 
 47.5        $1,458,000     .....     1999
 47.6      The 1998 appropriation includes $129,000 for 1997 and 
 47.7   $1,301,000 for 1998.  
 47.8      The 1999 appropriation includes $144,000 for 1998 and 
 47.9   $1,314,000 for 1999. 
 47.10     Subd. 4.  [TRANSPORTATION AID FOR ENROLLMENT OPTIONS.] For 
 47.11  transportation of pupils attending post-secondary institutions 
 47.12  according to Minnesota Statutes, section 123.3514, or for 
 47.13  transportation of pupils attending nonresident districts 
 47.14  according to Minnesota Statutes, section 120.062: 
 47.15       $102,000       .....     1998
 47.16       $102,000       .....     1999
 47.17     Any balance in the first year does not cancel but is 
 47.18  available in the second year. 
 47.19     Subd. 5.  [WIDE AREA TRANSPORTATION SERVICE PILOT PROJECT.] 
 47.20  To expand the wide area transportation service project: 
 47.21       $170,000      .....      1998 
 47.22       $ 50,000      .....      1999 
 47.23     Of the amount in fiscal year 1998, $70,000 is for a grant 
 47.24  to the Minnesota river valley special education cooperative for 
 47.25  a computerized routing system. 
 47.26     The purpose is to expand the project for the computerized 
 47.27  mapping and scheduling programs for school districts to jointly 
 47.28  provide transportation services for low-incidence programs.  The 
 47.29  department shall work with representatives of the affected 
 47.30  programs, transportation managers from both metropolitan and 
 47.31  rural districts, and the metropolitan council.  The department 
 47.32  shall contract for services and provide oversight.  The 
 47.33  department must report to the education committees of the 
 47.34  legislature by February 15, 1998, on the operation of the wide 
 47.35  area transportation service project, including details regarding 
 47.36  whether the project is meeting its objectives and any problems 
 48.1   related to the service provided by the project.  The project 
 48.2   shall consider the relationship of education transportation with 
 48.3   transportation services provided by noneducation agencies.  
 48.4      Any balance in the first year does not cancel but is 
 48.5   available in the second year. 
 48.6      Subd. 6.  [INTERDISTRICT DESEGREGATION OR INTEGRATION 
 48.7   TRANSPORTATION GRANTS.] For interdistrict desegregation or 
 48.8   integration transportation grants under Minnesota Statutes, 
 48.9   section 124.227: 
 48.10       $800,000       .....     1998
 48.11       $970,000       .....     1999
 48.12     Any balance in the first year does not cancel but is 
 48.13  available in the second year. 
 48.14     Subd. 7.  [TARGETED NEEDS TRANSPORTATION AID.] For aid 
 48.15  payments for targeted needs transportation aid under Minnesota 
 48.16  Statutes, section 124.225, subdivisions 13 and 16: 
 48.17       $76,195,000    .....     1998
 48.18       $24,303,000    .....     1999
 48.19     The 1998 appropriation includes $7,148,000 for 1997 and 
 48.20  $69,047,000 for 1998. 
 48.21     The 1999 appropriation includes $7,671,000 for 1998 and 
 48.22  $16,632,000 for 1999. 
 48.23     Subd. 8.  [HEALTH AND SAFETY AID.] For health and safety 
 48.24  aid according to Minnesota Statutes, section 124.83, subdivision 
 48.25  5: 
 48.26       $14,081,000    .....     1998 
 48.27       $14,179,000    .....     1999 
 48.28     The 1998 appropriation includes $1,132,000 for 1997 and 
 48.29  $12,949,000 for 1998.  
 48.30     The 1999 appropriation includes $1,438,000 for 1998 and 
 48.31  $12,741,000 for 1999.  
 48.32     Subd. 9.  [DEBT SERVICE AID.] For debt service aid 
 48.33  according to Minnesota Statutes, section 124.95, subdivision 5: 
 48.34       $35,480,000     .....     1998
 48.35       $38,159,000     .....     1999
 48.36     The 1998 appropriation includes $3,313,000 for 1997 and 
 49.1   $32,167,000 for 1998. 
 49.2      The 1999 appropriation includes $3,574,000 for 1998 and 
 49.3   $34,585,000 for 1999. 
 49.4      Subd. 10.  [SHIFT SIMPLIFIED.] For additional general 
 49.5   education aid for simplifying the property tax recognition shift 
 49.6   under this article: 
 49.7       $18,700,000     .....     1998
 49.8      Sec. 63.  [REPEALER.] 
 49.9      (a) Minnesota Statutes 1996, sections 121.904, subdivision 
 49.10  4d; 121.912, subdivision 7; and 124A.26, subdivisions 1a, 2, 3, 
 49.11  4, and 5, are repealed. 
 49.12     (b) Minnesota Statutes 1996, sections 124.223; 124.225, 
 49.13  subdivisions 3a, 7a, 7b, 7d, 7e, 8a, 8k, and 10; and 124A.22, 
 49.14  subdivisions 4a and 4b, are repealed effective July 1, 1997. 
 49.15     (c) Minnesota Statutes 1996, sections 124.226; and 124.912, 
 49.16  subdivisions 2 and 3, are repealed effective for revenue for 
 49.17  fiscal year 1999. 
 49.18     Sec. 64.  [EFFECTIVE DATE.] 
 49.19     (a) Sections 2, 11, 29, 30, 32, and 43 are effective for 
 49.20  revenue for fiscal year 1997.  
 49.21     (b) Sections 42 and 45 are effective for fiscal year 1999. 
 49.22     (c) If this act is enacted on or after July 1, 1997, all 
 49.23  sections in this article except for those sections listed in 
 49.24  paragraphs (a) and (b) are effective the day following final 
 49.25  enactment. 
 49.26                             ARTICLE 2 
 49.27                          SPECIAL PROGRAMS 
 49.28     Section 1.  Minnesota Statutes 1996, section 120.1701, 
 49.29  subdivision 3, is amended to read: 
 49.30     Subd. 3.  [STATE INTERAGENCY COORDINATING COUNCIL.] An 
 49.31  interagency coordinating council of at least 17, but not more 
 49.32  than 25 members is established, in compliance with Public Law 
 49.33  Number 102-119, section 682.  The members shall be appointed by 
 49.34  the governor.  Council members shall elect the council chair.  
 49.35  The representative of the commissioner of children, families, 
 49.36  and learning may not serve as the chair.  The council shall be 
 50.1   composed of at least five parents, including persons of color, 
 50.2   of children with disabilities under age 12, including at least 
 50.3   three parents of a child with a disability under age seven, five 
 50.4   representatives of public or private providers of services for 
 50.5   children with disabilities under age five, including a special 
 50.6   education director, county social service director, and a 
 50.7   community health services or public health nursing 
 50.8   administrator, one member of the senate, one member of the house 
 50.9   of representatives, one representative of teacher preparation 
 50.10  programs in early childhood-special education or other 
 50.11  preparation programs in early childhood intervention, at least 
 50.12  one representative of advocacy organizations for children with 
 50.13  disabilities under age five, one physician who cares for young 
 50.14  children with special health care needs, one representative each 
 50.15  from the commissioners of commerce, children, families, and 
 50.16  learning, health, human services, and economic security, and a 
 50.17  representative from Indian health services or a tribal council.  
 50.18  Section 15.059, subdivisions 2 to 5, apply to the council.  The 
 50.19  council shall meet at least quarterly.  
 50.20     The council shall address methods of implementing the state 
 50.21  policy of developing and implementing comprehensive, 
 50.22  coordinated, multidisciplinary interagency programs of early 
 50.23  intervention services for children with disabilities and their 
 50.24  families. 
 50.25     The duties of the council include recommending policies to 
 50.26  ensure a comprehensive and coordinated system of all state and 
 50.27  local agency services for children under age five with 
 50.28  disabilities and their families.  The policies must address how 
 50.29  to incorporate each agency's services into a unified state and 
 50.30  local system of multidisciplinary assessment practices, 
 50.31  individual intervention plans, comprehensive systems to find 
 50.32  children in need of services, methods to improve public 
 50.33  awareness, and assistance in determining the role of interagency 
 50.34  early intervention committees.  
 50.35     Each year by June 1, the council shall recommend to the 
 50.36  governor and the commissioners of children, families, and 
 51.1   learning, health, human services, commerce, and economic 
 51.2   security policies for a comprehensive and coordinated system. 
 51.3      Notwithstanding any other law to the contrary, the state 
 51.4   interagency coordinating council shall expire on June 30, 1997 
 51.5   2001. 
 51.6      Sec. 2.  Minnesota Statutes 1996, section 120.181, is 
 51.7   amended to read: 
 51.8      120.181 [PLACEMENT OF CHILDREN WITHOUT DISABILITIES; 
 51.9   EDUCATION AND TRANSPORTATION.] 
 51.10     The responsibility for providing instruction and 
 51.11  transportation for a pupil without a disability who has a 
 51.12  short-term or temporary physical or emotional illness or 
 51.13  disability, as determined by the standards of the state board, 
 51.14  and who is temporarily placed for care and treatment for that 
 51.15  illness or disability, shall be determined as provided in this 
 51.16  section.  
 51.17     (a) The school district of residence of the pupil shall be 
 51.18  the district in which the pupil's parent or guardian resides, or 
 51.19  when neither the pupil's parent or guardian resides within the 
 51.20  state and tuition has been denied, the district designated by 
 51.21  the commissioner of children, families, and learning if neither 
 51.22  parent nor guardian is living within the state.  
 51.23     (b) Prior to the placement of a pupil for care and 
 51.24  treatment, the district of residence shall be notified and 
 51.25  provided an opportunity to participate in the placement 
 51.26  decision.  When an immediate emergency placement is necessary 
 51.27  and time does not permit resident district participation in the 
 51.28  placement decision, the district in which the pupil is 
 51.29  temporarily placed, if different from the district of residence, 
 51.30  shall notify the district of residence of the emergency 
 51.31  placement within 15 days of the placement.  
 51.32     (c) When a pupil without a disability is temporarily placed 
 51.33  for care and treatment in a day program and the pupil continues 
 51.34  to live within the district of residence during the care and 
 51.35  treatment, the district of residence shall provide instruction 
 51.36  and necessary transportation for the pupil.  The district may 
 52.1   provide the instruction at a school within the district of 
 52.2   residence, at the pupil's residence, or in the case of a 
 52.3   placement outside of the resident district, in the district in 
 52.4   which the day treatment program is located by paying tuition to 
 52.5   that district.  The district of placement may contract with a 
 52.6   facility to provide instruction by teachers licensed by the 
 52.7   state board of teaching.  
 52.8      (d) When a pupil without a disability is temporarily placed 
 52.9   in a residential program for care and treatment, the district in 
 52.10  which the pupil is placed shall provide instruction for the 
 52.11  pupil and necessary transportation while the pupil is receiving 
 52.12  instruction, and in the case of a placement outside of the 
 52.13  district of residence, the nonresident district shall bill the 
 52.14  district of residence for the actual cost of providing the 
 52.15  instruction for the regular school year and for summer school, 
 52.16  excluding transportation costs.  When a pupil without a 
 52.17  disability is temporarily placed in a residential program 
 52.18  outside the district of residence, the administrator of the 
 52.19  court placing the pupil shall send timely written notice of the 
 52.20  placement to the district of residence.  The district of 
 52.21  placement may contract with a residential facility to provide 
 52.22  instruction by teachers licensed by the state board of teaching. 
 52.23     (e) The district of residence shall include the pupil in 
 52.24  its residence count of pupil units and pay tuition as provided 
 52.25  in section 124.18 to the district providing the instruction.  
 52.26  Transportation costs shall be paid by the district providing the 
 52.27  transportation and the state shall pay transportation aid to 
 52.28  that district.  For purposes of computing state transportation 
 52.29  aid, pupils governed by this subdivision shall be included in 
 52.30  the disabled transportation category.  
 52.31     Sec. 3.  Minnesota Statutes 1996, section 124.17, is 
 52.32  amended by adding a subdivision to read: 
 52.33     Subd. 6.  [LEP PUPIL UNITS.] (a) Limited English 
 52.34  proficiency pupil units for fiscal year 1998 and thereafter 
 52.35  shall be determined according to this subdivision. 
 52.36     (b) The limited English proficiency concentration 
 53.1   percentage for a district equals the product of 100 times the 
 53.2   ratio of: 
 53.3      (1) the number of pupils of limited English proficiency 
 53.4   enrolled in the district during the current fiscal year; to 
 53.5      (2) the number of pupils in average daily membership 
 53.6   enrolled in the district. 
 53.7      (c) The limited English proficiency pupil units for each 
 53.8   pupil enrolled in a program for pupils of limited English 
 53.9   proficiency in accordance with sections 126.261 to 126.269 
 53.10  equals the lesser of one or the quotient obtained by dividing 
 53.11  the limited English proficiency concentration percentage for the 
 53.12  pupil's district of enrollment by 11.5. 
 53.13     (d) Limited English proficiency pupil units shall be 
 53.14  counted by the district of enrollment. 
 53.15     Sec. 4.  Minnesota Statutes 1996, section 124.248, 
 53.16  subdivision 3, is amended to read: 
 53.17     Subd. 3.  [SPECIAL EDUCATION AND LIMITED ENGLISH 
 53.18  PROFICIENCY AID.] Except as provided in subdivision 1a, 
 53.19  paragraph (b), special education aid shall be paid to a charter 
 53.20  school according to sections 124.3201 and 124.3202, as though it 
 53.21  were a school district.  The charter school may charge tuition 
 53.22  to the district of residence as provided in section 120.17, 
 53.23  subdivision 4.  Limited English proficiency programs aid shall 
 53.24  be paid to a charter school according to section 124.273 as 
 53.25  though it were a school district.  The charter school shall 
 53.26  allocate its special education levy equalization revenue to the 
 53.27  resident districts of the pupils attending the charter school.  
 53.28  The districts of residence shall levy as though they were 
 53.29  participating in a cooperative, as provided in section 124.321, 
 53.30  subdivision 3. 
 53.31     Sec. 5.  Minnesota Statutes 1996, section 124.2613, 
 53.32  subdivision 3, is amended to read: 
 53.33     Subd. 3.  [QUALIFYING SCHOOL SITE.] (a) The commissioner 
 53.34  shall rank all school sites with kindergarten programs that do 
 53.35  not exclusively serve students under section 120.17.  The 
 53.36  ranking must be from highest to lowest based on the site's free 
 54.1   and reduced lunch count as a percent of the fall enrollment 
 54.2   using the preceding October 1 enrollment data.  Once a school 
 54.3   site is calculated to be eligible, it remains eligible for the 
 54.4   duration of the pilot program.  For each school site, the 
 54.5   percentage used to calculate the ranking must be the greater of 
 54.6   (1) the percent of the fall kindergarten enrollment receiving 
 54.7   free and reduced lunch, or (2) the percent of the total fall 
 54.8   enrollment receiving free and reduced lunch.  The list of ranked 
 54.9   sites must be separated into the following geographic areas:  
 54.10  Minneapolis district, St. Paul district, suburban Twin Cities 
 54.11  districts in the seven-county metropolitan area, and school 
 54.12  districts in greater Minnesota. 
 54.13     (b) The commissioner shall establish a process and 
 54.14  timelines to qualify school sites for the next school year.  
 54.15  School sites must be qualified in each geographic area from the 
 54.16  list of ranked sites until the estimated revenue available for 
 54.17  this program has been allocated.  The total estimated revenue of 
 54.18  $3,500,000 must be distributed to qualified school sites in each 
 54.19  geographic area as follows:  25 percent for Minneapolis sites, 
 54.20  25 percent for St. Paul sites, 25 percent for suburban Twin 
 54.21  Cities sites, and 25 percent for greater Minnesota. 
 54.22     Sec. 6.  Minnesota Statutes 1996, section 124.2613, 
 54.23  subdivision 4, is amended to read: 
 54.24     Subd. 4.  [PROGRAM.] A qualifying school site must develop 
 54.25  its first-grade preparedness program in collaboration with other 
 54.26  providers of school readiness and child development services.  A 
 54.27  school site must either offer a full-day kindergarten program to 
 54.28  participating children who are five years of age or older for 
 54.29  the full school day every day or a half-day, a program for 
 54.30  participating children who are four years old, or a combination 
 54.31  of both.  The program may offer as an option to families home 
 54.32  visits and other practices as appropriate, and may provide such 
 54.33  services with the consent of the parent or guardian.  Full-day 
 54.34  and half-day kindergarten Program providers must ensure that the 
 54.35  program they provide supplements existing school readiness and 
 54.36  child development programs and complements the services provided 
 55.1   with compensatory revenue.  Where possible, individuals 
 55.2   receiving assistance under a family assistance plan can meet the 
 55.3   work activity requirement of the plan by participating in a 
 55.4   first-grade preparedness program as a volunteer. 
 55.5      Sec. 7.  Minnesota Statutes 1996, section 124.2613, 
 55.6   subdivision 6, is amended to read: 
 55.7      Subd. 6.  [PREPAREDNESS REVENUE.] (a) A qualifying school 
 55.8   district is eligible for first-grade preparedness revenue equal 
 55.9   to the basic formula allowance for that year times the number of 
 55.10  pupil units calculated according to paragraph (b) in each 
 55.11  qualifying school site.  If the first-grade preparedness revenue 
 55.12  is insufficient to fully fund the formula amounts, the 
 55.13  commissioner shall prorate the revenue provided to each 
 55.14  qualifying school site of children five years of age or older 
 55.15  enrolled in a kindergarten program at the site on October 1 of 
 55.16  the previous year times .53. 
 55.17     (b) A pupil enrolled in a half-day first-grade preparedness 
 55.18  program under this section is counted as .53 pupil units.  A 
 55.19  pupil enrolled in a full-day first-grade preparedness program 
 55.20  under this section is counted as a kindergarten pupil under 
 55.21  section 124.17, subdivision 1, plus an additional .53 pupil 
 55.22  units. 
 55.23     (c) This revenue must supplement and not replace 
 55.24  compensatory revenue that the district uses for the same or 
 55.25  similar purposes under chapter 124A. 
 55.26     (c) A pupil enrolled in the first grade preparedness 
 55.27  program at a qualifying school site is eligible for 
 55.28  transportation under section 123.39, subdivision 1.  
 55.29     (d) First grade preparedness revenue paid to a charter 
 55.30  school for which a school district is providing transportation 
 55.31  according to section 120.064, subdivision 15, shall be decreased 
 55.32  by an amount equal to the product of $170 times the pupil units 
 55.33  calculated according to paragraph (a).  This amount shall be 
 55.34  paid to the school district for transportation costs.  
 55.35     Sec. 8.  Minnesota Statutes 1996, section 124.273, 
 55.36  subdivision 1d, is amended to read: 
 56.1      Subd. 1d.  [LEP BASE REVENUE.] (a) The limited English 
 56.2   proficiency programs base revenue equals the sum of the 
 56.3   following amounts, computed using base year data:  
 56.4      (1) 68 percent of the salary of one full-time equivalent 
 56.5   teacher for each 40 pupils of limited English proficiency 
 56.6   enrolled, or 68 percent of the salary of one-half of a full-time 
 56.7   teacher in a district with 20 or fewer pupils of limited English 
 56.8   proficiency enrolled; and 
 56.9      (2) for supplies and equipment purchased or rented for use 
 56.10  in the instruction of pupils of limited English proficiency an 
 56.11  amount equal to 47 percent of the sum actually spent by the 
 56.12  district but not to exceed an average of $47 in any one school 
 56.13  year for each pupil of limited English proficiency receiving 
 56.14  instruction. 
 56.15     (b) For the purposes of this subdivision, a teacher 
 56.16  includes nonlicensed personnel who provide direct instruction to 
 56.17  students of limited English proficiency under the supervision of 
 56.18  a licensed teacher. 
 56.19     (c) If requested by a school district operating a limited 
 56.20  English proficiency program during the base year for less than 
 56.21  the full school year, the commissioner may adjust the base 
 56.22  revenue to reflect the expenditures that would have occurred 
 56.23  during the base year had the program been operated for the full 
 56.24  school year. 
 56.25     Sec. 9.  Minnesota Statutes 1996, section 124.273, 
 56.26  subdivision 1e, is amended to read: 
 56.27     Subd. 1e.  [AID.] A district's limited English proficiency 
 56.28  aid for fiscal year 1996 and later 1998 equals the aid 
 56.29  percentage factor under section 124.3201, subdivision 1, times 
 56.30  the district's limited English proficiency revenue. 
 56.31     Sec. 10.  Minnesota Statutes 1996, section 124.273, 
 56.32  subdivision 1f, is amended to read: 
 56.33     Subd. 1f.  [STATE TOTAL LEP REVENUE.] (a) The state total 
 56.34  limited English proficiency programs revenue for fiscal 
 56.35  year 1996 1998 equals $12,202,000 $14,629,000.  The state total 
 56.36  limited English proficiency programs revenue for fiscal 
 57.1   year 1997 1999 equals $13,299,000 $16,092,000.  
 57.2      (b) The state total limited English proficiency programs 
 57.3   revenue for later fiscal years equals: 
 57.4      (1) the state total limited English proficiency programs 
 57.5   revenue for the preceding fiscal year; times 
 57.6      (2) the program growth factor under section 124.3201, 
 57.7   subdivision 1; times 
 57.8      (3) the ratio of the state total number of pupils with 
 57.9   limited English proficiency for the current fiscal year to the 
 57.10  state total number of pupils with limited English proficiency 
 57.11  for the preceding fiscal year. 
 57.12     Sec. 11.  Minnesota Statutes 1996, section 124.273, 
 57.13  subdivision 5, is amended to read: 
 57.14     Subd. 5.  [NOTIFICATION; AID PAYMENTS REVENUE.] The 
 57.15  department must promptly inform each applicant district of the 
 57.16  amount of aid revenue it will receive pursuant to this section. 
 57.17     Sec. 12.  [124.3111] [ASSURANCE OF MASTERY PROGRAMS.] 
 57.18     Subdivision 1.  [ELIGIBLE DISTRICTS.] A district with a 
 57.19  local process to review curriculum and instruction may provide 
 57.20  an assurance of mastery program to eligible pupils. 
 57.21     Subd. 2.  [ELIGIBLE PUPILS.] A pupil is eligible to receive 
 57.22  services through an assurance of mastery program if the pupil 
 57.23  has not demonstrated progress toward mastering the required 
 57.24  graduation standards, after receiving instruction that was 
 57.25  designed to enable the pupil to make progress toward mastering 
 57.26  the required graduation standards in a regular classroom 
 57.27  setting.  To determine pupil eligibility, a district must use a 
 57.28  process adopted by the school board to review curriculum and 
 57.29  instruction, for the subjects and at the grade level at which 
 57.30  the district uses the revenue. 
 57.31     Subd. 3.  [ELIGIBLE SERVICES.] (a) Assurance of mastery 
 57.32  programs may provide direct instructional services to an 
 57.33  eligible pupil, or a group of eligible pupils, under the 
 57.34  following conditions in paragraphs (b) to (d). 
 57.35     (b) Instruction may be provided at one or more grade levels 
 57.36  from kindergarten to grade 8 and for students in grades 9 
 58.1   through 12 who have failed the basic skills tests.  If an 
 58.2   assessment of pupils' needs within a district demonstrates that 
 58.3   the eligible pupils in grades kindergarten to grade 8 are being 
 58.4   appropriately served, a district may serve eligible pupils in 
 58.5   grades 9 to 12. 
 58.6      (c) Instruction must be provided under the supervision of 
 58.7   the eligible pupil's regular classroom teacher.  Instruction may 
 58.8   be provided by the eligible pupil's classroom teacher, by 
 58.9   another teacher, by a team of teachers, or by an education 
 58.10  assistant or aide.  A special education teacher may provide 
 58.11  instruction, but instruction that is provided under this section 
 58.12  is not eligible for aid under section 124.3201. 
 58.13     (d) The instruction that is provided must differ from the 
 58.14  initial instruction the pupil received in the regular classroom 
 58.15  setting.  The instruction may differ by presenting different 
 58.16  curriculum than was initially presented in the regular classroom 
 58.17  or by presenting the same curriculum: 
 58.18     (1) at a different rate or in a different sequence than it 
 58.19  was initially presented; 
 58.20     (2) using different teaching methods or techniques than 
 58.21  were used initially; or 
 58.22     (3) using different instructional materials than were used 
 58.23  initially. 
 58.24     Sec. 13.  Minnesota Statutes 1996, section 124.312, 
 58.25  subdivision 4, is amended to read: 
 58.26     Subd. 4.  [INTEGRATION REVENUE.] For fiscal year years 
 58.27  1996, 1997, and later fiscal years 1998, integration revenue 
 58.28  equals the sum of integration aid and integration levy under 
 58.29  section 124.912, subdivision 2. 
 58.30     Sec. 14.  Minnesota Statutes 1996, section 124.312, 
 58.31  subdivision 5, is amended to read: 
 58.32     Subd. 5.  [INTEGRATION AID.] For fiscal year years 1996, 
 58.33  1997, and later fiscal years 1998, integration aid equals the 
 58.34  following amounts: 
 58.35     (1) for independent school district No. 709, Duluth, 
 58.36  $1,385,000; 
 59.1      (2) for independent school district No. 625, St. Paul, 
 59.2   $8,090,700; and 
 59.3      (3) for special school district No. 1, Minneapolis, 
 59.4   $9,368,300. 
 59.5      Sec. 15.  Minnesota Statutes 1996, section 124.313, is 
 59.6   amended to read: 
 59.7      124.313 [TARGETED NEEDS REVENUE.] 
 59.8      For fiscal year years 1996, 1997, and thereafter 1998, a 
 59.9   school district's targeted needs revenue equals the sum of: 
 59.10     (1) assurance of mastery revenue according to section 
 59.11  124.311; plus 
 59.12     (2) the district's limited English proficiency revenue 
 59.13  computed according to section 124.273, subdivision 1d; plus 
 59.14     (3) integration revenue computed according to section 
 59.15  124.312, subdivision 4. 
 59.16     Sec. 16.  Minnesota Statutes 1996, section 124.314, 
 59.17  subdivision 1, is amended to read: 
 59.18     Subdivision 1.  [AID.] For fiscal year years 1996, 1997, 
 59.19  and thereafter 1998, a school district's targeted needs aid 
 59.20  equals the sum of its assurance of mastery aid according to 
 59.21  section 124.311, its limited English proficiency aid according 
 59.22  to section 124.273, subdivision 1e, and its integration aid 
 59.23  according to section 124.312, subdivision 5. 
 59.24     Sec. 17.  Minnesota Statutes 1996, section 124.314, 
 59.25  subdivision 2, is amended to read: 
 59.26     Subd. 2.  [LEVY.] For fiscal year years 1996, 1997, and 
 59.27  thereafter 1998, a school district's targeted needs levy equals 
 59.28  the sum of its integration levy under section 124.912, 
 59.29  subdivision 2, and that portion of its special education levy 
 59.30  attributed to the limited English proficiency program. 
 59.31     Sec. 18.  [124.315] [INTEGRATION REVENUE.] 
 59.32     Subdivision 1.  [USE OF THE REVENUE.] Integration revenue 
 59.33  under this section must be used for programs established under a 
 59.34  desegregation plan mandated by the state board or under court 
 59.35  order, to increase learning opportunities and reduce the 
 59.36  learning gap between learners living in high concentrations of 
 60.1   poverty and their peers. 
 60.2      Subd. 2.  [SEPARATE ACCOUNT.] Integration revenue shall be 
 60.3   maintained in a separate account to identify expenditures for 
 60.4   salaries and programs related to this revenue. 
 60.5      Subd. 3.  [INTEGRATION REVENUE.] For fiscal year 1999 and 
 60.6   later fiscal years, integration revenue equals the following 
 60.7   amounts: 
 60.8      (1) for independent school district No. 709, Duluth, $193 
 60.9   times the actual pupil units for the school year; 
 60.10     (2) for independent school district No. 625, St. Paul, $427 
 60.11  times the actual pupil units for the school year; 
 60.12     (3) for special school district No. 1, Minneapolis, $523 
 60.13  times the actual pupil units for the school year; and 
 60.14     (4) for a district not listed in clause (1), (2), or (3) 
 60.15  that is required to implement a plan according to the 
 60.16  requirements of Minnesota Rules, parts 3535.0200 to 3535.2200, 
 60.17  the lesser of the actual cost of implementing the plan during 
 60.18  the fiscal year or $93 times the actual pupil units for the 
 60.19  school year. 
 60.20     Subd. 4.  [INTEGRATION LEVY.] A district may levy an amount 
 60.21  equal to 46 percent of the district's integration revenue as 
 60.22  defined in subdivision 3. 
 60.23     Subd. 5.  [INTEGRATION AID.] A district's integration aid 
 60.24  equals 54 percent of the district's integration revenue as 
 60.25  defined in subdivision 3. 
 60.26     Subd. 6.  [ALTERNATIVE ATTENDANCE PROGRAMS.] (a) The 
 60.27  integration aid under subdivision 5 must be adjusted for each 
 60.28  pupil attending a nonresident district under sections 120.062, 
 60.29  120.075, 120.0751, 120.0752, and 124C.45 to 124C.48 if the 
 60.30  enrollment of the pupil in the nonresident district contributes 
 60.31  to desegregation or integration purposes.  The adjustments must 
 60.32  be made according to this subdivision.  
 60.33     (b) Aid paid to the district of the pupil's residence must 
 60.34  be reduced by an amount equal to the revenue per actual pupil 
 60.35  unit of the resident district times the number of actual pupil 
 60.36  units attributable to the pupil for the time the pupil is 
 61.1   enrolled in a nonresident district. 
 61.2      (c) Aid paid to a district serving nonresidents must be 
 61.3   increased by an amount equal to the aid reduction to the 
 61.4   resident district under paragraphs (b) and (d).  
 61.5      (d) If the amount of the reduction to be made from the aid 
 61.6   of a district is greater than the amount of aid otherwise due 
 61.7   the district, the excess reduction must be made from other state 
 61.8   aids due the district. 
 61.9      Sec. 19.  Minnesota Statutes 1996, section 124.3201, 
 61.10  subdivision 1, is amended to read: 
 61.11     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
 61.12  section and sections 124.3202 and 124.321, the definitions in 
 61.13  this subdivision apply. 
 61.14     (a) "Base year" for fiscal year 1996 and fiscal year 1997 
 61.15  means the 1994 summer program and the 1994-1995 school year.  
 61.16  Base year for 1998 and later fiscal years means the second 
 61.17  fiscal year preceding the fiscal year for which aid will be paid.
 61.18     (b) "Basic revenue" has the meaning given it in section 
 61.19  124A.22, subdivision 2.  For the purposes of computing basic 
 61.20  revenue pursuant to this section, each child with a disability 
 61.21  shall be counted as prescribed in section 124.17, subdivision 1. 
 61.22     (c) "Essential personnel" means teachers, related services, 
 61.23  and support services staff providing direct services to students.
 61.24     (d) "Average daily membership" has the meaning given it in 
 61.25  section 124.17. 
 61.26     (e) "Program growth factor" means 1.00 for fiscal year 1998 
 61.27  2000 and later. 
 61.28     (f) "Aid percentage factor" means 60 percent for fiscal 
 61.29  year 1996, 70 percent for fiscal year 1997, 80 percent for 
 61.30  fiscal year 1998, 90 percent for fiscal year 1999, and 100 
 61.31  percent for fiscal years 2000 and later. 
 61.32     (g) "Levy percentage factor" means 100 minus the aid 
 61.33  percentage factor for that year. 
 61.34     Sec. 20.  Minnesota Statutes 1996, section 124.3201, 
 61.35  subdivision 2, is amended to read: 
 61.36     Subd. 2.  [SPECIAL EDUCATION BASE REVENUE.] (a) The special 
 62.1   education base revenue equals the sum of the following amounts 
 62.2   computed using base year data: 
 62.3      (1) 68 percent of the salary of each essential person 
 62.4   employed in the district's program for children with a 
 62.5   disability during the regular school year, whether the person is 
 62.6   employed by one or more districts; 
 62.7      (2) for the Minnesota state academy for the deaf or the 
 62.8   Minnesota state academy for the blind, 68 percent of the salary 
 62.9   of each instructional aide assigned to a child attending the 
 62.10  academy, if that aide is required by the child's individual 
 62.11  education plan; 
 62.12     (3) for special instruction and services provided to any 
 62.13  pupil by contracting with public, private, or voluntary agencies 
 62.14  other than school districts, in place of special instruction and 
 62.15  services provided by the district, 52 percent of the difference 
 62.16  between the amount of the contract and the basic revenue of the 
 62.17  district for that pupil for the fraction of the school day the 
 62.18  pupil receives services under the contract; 
 62.19     (4) for special instruction and services provided to any 
 62.20  pupil by contracting for services with public, private, or 
 62.21  voluntary agencies other than school districts, that are 
 62.22  supplementary to a full educational program provided by the 
 62.23  school district, 52 percent of the amount of the contract for 
 62.24  that pupil; 
 62.25     (5) for supplies and equipment purchased or rented for use 
 62.26  in the instruction of children with a disability an amount equal 
 62.27  to 47 percent of the sum actually expended by the district but 
 62.28  not to exceed an average of $47 in any one school year for each 
 62.29  child with a disability receiving instruction; and 
 62.30     (6) for fiscal years 1997 and later, special education base 
 62.31  revenue shall include amounts under clauses (1) to (5) for 
 62.32  special education summer programs provided during the base year 
 62.33  for that fiscal year; and 
 62.34     (7) for fiscal years 1999 and later, the cost of providing 
 62.35  transportation services for children with disabilities under 
 62.36  section 124.225, subdivision 1, paragraph (b), clause (4).  
 63.1      (b) If requested by a school district operating a special 
 63.2   education program during the base year for less than the full 
 63.3   school year, the commissioner may adjust the base revenue to 
 63.4   reflect the expenditures that would have occurred during the 
 63.5   base year had the program been operated for the full school year.
 63.6      Sec. 21.  Minnesota Statutes 1996, section 124.3201, 
 63.7   subdivision 3, is amended to read: 
 63.8      Subd. 3.  [ADJUSTED SPECIAL EDUCATION BASE REVENUE.] For 
 63.9   fiscal year 1996 1997 and later, a district's adjusted special 
 63.10  education base revenue equals the district's special education 
 63.11  base revenue times the ratio of the district's average daily 
 63.12  membership for the current school year to the district's average 
 63.13  daily membership for the base year; plus the district's special 
 63.14  education tuition revenue under subdivision 2a and special 
 63.15  education court placement revenue under subdivision 2b. 
 63.16     Sec. 22.  Minnesota Statutes 1996, section 124.3201, 
 63.17  subdivision 4, is amended to read: 
 63.18     Subd. 4.  [STATE TOTAL SPECIAL EDUCATION REVENUE.] The 
 63.19  state total special education revenue for fiscal year 1996 1998 
 63.20  equals $327,846,000 $358,542,000.  The state total special 
 63.21  education revenue for fiscal year 1997 1999 equals 
 63.22  $347,810,000 $435,322,000.  The state total special education 
 63.23  revenue for later fiscal years equals:  
 63.24     (1) the state total special education revenue for the 
 63.25  preceding fiscal year; times 
 63.26     (2) the program growth factor; times 
 63.27     (3) the ratio of the state total average daily membership 
 63.28  for the current fiscal year to the state total average daily 
 63.29  membership for the preceding fiscal year. 
 63.30     Sec. 23.  Minnesota Statutes 1996, section 124.321, 
 63.31  subdivision 1, is amended to read: 
 63.32     Subdivision 1.  [LEVY EQUALIZATION REVENUE.] (a) For fiscal 
 63.33  years 1996 and later year 1999, special education levy 
 63.34  equalization revenue for a school district, excluding an 
 63.35  intermediate school district, equals the sum of the following 
 63.36  amounts: 
 64.1      (1) the levy percentage factor for that year times the 
 64.2   district's special education revenue under section 124.3201; 
 64.3   plus 
 64.4      (2) the levy percentage factor for that year times the 
 64.5   district's special education summer program revenue under 
 64.6   section 124.3202; plus 
 64.7      (3) the levy percentage factor for that year times the 
 64.8   district's special education excess cost revenue under section 
 64.9   124.323; plus 
 64.10     (4) the levy percentage factor for that year times the 
 64.11  district's secondary vocational education for children with a 
 64.12  disability revenue under section 124.574; plus 
 64.13     (5) the levy percentage factor for that year times the 
 64.14  district's limited English proficiency programs revenue under 
 64.15  section 124.273. 
 64.16     Sec. 24.  Minnesota Statutes 1996, section 124.323, 
 64.17  subdivision 1, is amended to read: 
 64.18     Subdivision 1.  [DEFINITIONS.] In this section, the 
 64.19  definitions in this subdivision apply. 
 64.20     (a) "Unreimbursed special education cost" means the sum of 
 64.21  the following: 
 64.22     (1) expenditures for teachers' salaries, contracted 
 64.23  services, supplies, and equipment, and transportation services 
 64.24  eligible for revenue under sections 124.3201 and 124.3202; plus 
 64.25     (2) expenditures for tuition bills received under section 
 64.26  120.17 for services eligible for revenue under sections 
 64.27  124.3201, subdivision 2, and 124.3202, subdivision 1; minus 
 64.28     (3) revenue for teachers' salaries, contracted services, 
 64.29  supplies, and equipment under sections 124.3201 and 124.3202; 
 64.30  minus 
 64.31     (4) tuition receipts under section 120.17 for services 
 64.32  eligible for revenue under sections 124.3201, subdivision 2, and 
 64.33  124.3202, subdivision 1. 
 64.34     (b) "General revenue," for fiscal year 1996, means the sum 
 64.35  of the general education revenue according to section 124A.22, 
 64.36  subdivision 1, as adjusted according to section 124A.036, 
 65.1   subdivision 5, plus the total referendum revenue according to 
 65.2   section 124A.03, subdivision 1e.  For fiscal years 1997 and 
 65.3   later, "general revenue" means the sum of the general education 
 65.4   revenue according to section 124A.22, subdivision 1, as adjusted 
 65.5   according to section 124A.036, subdivision 5, plus the total 
 65.6   referendum revenue minus transportation sparsity revenue minus 
 65.7   total operating capital revenue. 
 65.8      Sec. 25.  Minnesota Statutes 1996, section 124.323, 
 65.9   subdivision 2, is amended to read: 
 65.10     Subd. 2.  [EXCESS COST REVENUE.] For 1996 1997 and later 
 65.11  fiscal years, a district's special education excess cost revenue 
 65.12  equals 70 the greatest of: 
 65.13     (a) 70 percent of the difference between (1) the district's 
 65.14  unreimbursed special education cost and (2) six percent for 
 65.15  fiscal year 1996 and 5.7 percent for fiscal year 1997 and later 
 65.16  years of the district's general revenue; 
 65.17     (b) 70 percent of the difference between (1) the increase 
 65.18  in the district's unreimbursed special education cost between 
 65.19  the base year as defined in section 124.3201, subdivision 1, and 
 65.20  the current year and (2) 1.6 percent of the district's general 
 65.21  revenue; or 
 65.22     (c) zero. 
 65.23     Sec. 26.  Minnesota Statutes 1996, section 124.481, is 
 65.24  amended to read: 
 65.25     124.481 [INDIAN POST-SECONDARY PREPARATION GRANTS.] 
 65.26     The state board of education, with the advice of the 
 65.27  Minnesota Indian scholarship committee, may make grants to 
 65.28  school districts or tribal grant or contract schools to support 
 65.29  post-secondary preparation for secondary pupils who are of 
 65.30  one-fourth or more Indian ancestry and who, in the opinion of 
 65.31  the superintendent, have the capabilities to benefit from higher 
 65.32  education.  Distribution of the grants must be in accordance 
 65.33  with a plan prepared by the state board, with the advice of the 
 65.34  Minnesota Indian scholarship committee, that describes the 
 65.35  objectives and methods of implementing the grant program, 
 65.36  including the manner in which grants will be distributed in 
 66.1   proportion to the geographical distribution of the Indian 
 66.2   population of the state. 
 66.3      Sec. 27.  Minnesota Statutes 1996, section 124.574, 
 66.4   subdivision 2d, is amended to read: 
 66.5      Subd. 2d.  [BASE REVENUE.] (a) The secondary vocational 
 66.6   school-to-work program-disabled program base revenue equals the 
 66.7   sum of the following amounts computed using base year data: 
 66.8      (1) 68 percent of the salary of each essential licensed 
 66.9   person who provides direct instructional services to students 
 66.10  employed during that fiscal year for services rendered in that 
 66.11  district's secondary vocational education programs 
 66.12  school-to-work program for children with a disability; 
 66.13     (2) 47 percent of the costs of necessary equipment for 
 66.14  secondary vocational education programs school-to-work programs 
 66.15  for children with a disability; 
 66.16     (3) 47 percent of the costs of necessary travel between 
 66.17  instructional sites by secondary vocational education 
 66.18  school-to-work program teachers of children with a disability 
 66.19  but not including travel to and from local, regional, district, 
 66.20  state, or national vocational student organization meetings; 
 66.21     (4) 47 percent of the costs of necessary supplies for 
 66.22  secondary vocational education programs school-to-work programs 
 66.23  for children with a disability but not to exceed an average of 
 66.24  $47 in any one school year for each child with a disability 
 66.25  receiving these services; 
 66.26     (5) for secondary vocational education programs 
 66.27  school-to-work programs for children with disabilities provided 
 66.28  by a contract approved by the commissioner with public, private, 
 66.29  or voluntary agencies other than a Minnesota school district or 
 66.30  cooperative center, in place of programs provided by the 
 66.31  district, 52 percent of the difference between the amount of the 
 66.32  contract and the basic revenue of the district for that pupil 
 66.33  for the fraction of the school day the pupil receives services 
 66.34  under the contract; 
 66.35     (6) for secondary vocational education programs 
 66.36  school-to-work programs for children with disabilities provided 
 67.1   by a contract approved by the commissioner with public, private, 
 67.2   or voluntary agencies other than a Minnesota school district or 
 67.3   cooperative center, that are supplementary to a full educational 
 67.4   program provided by the school district, 52 percent of the 
 67.5   amount of the contract; and 
 67.6      (7) for a contract approved by the commissioner with 
 67.7   another Minnesota school district or cooperative center for 
 67.8   vocational evaluation services for children with a disability 
 67.9   for children that are not yet enrolled in grade 12, 52 percent 
 67.10  of the amount of the contract. 
 67.11     (b) If requested by a school district for school-to-work 
 67.12  programs during the base year for less than the full school 
 67.13  year, the commissioner may adjust the base revenue to reflect 
 67.14  the expenditures that would have occurred during the base year 
 67.15  had the program been operated for the full year. 
 67.16     Sec. 28.  Minnesota Statutes 1996, section 124.574, 
 67.17  subdivision 2f, is amended to read: 
 67.18     Subd. 2f.  [STATE TOTAL SECONDARY VOCATIONAL-DISABLED 
 67.19  SCHOOL-TO-WORK PROGRAM-DISABLED REVENUE.] The state total 
 67.20  secondary vocational-disabled school-to-work program-disabled 
 67.21  revenue for fiscal year 1996 1998 equals $8,520,000 $8,924,000.  
 67.22  The state total secondary vocational-disabled school-to-work 
 67.23  program-disabled revenue for fiscal year 1997 1999 equals 
 67.24  $8,830,000 $8,976,000.  The state total secondary 
 67.25  vocational-disabled school-to-work program-disabled revenue for 
 67.26  later fiscal years equals:  
 67.27     (1) the state total secondary vocational-disabled 
 67.28  school-to-work program-disabled revenue for the preceding fiscal 
 67.29  year; times 
 67.30     (2) the program growth factor; times 
 67.31     (3) the ratio of the state total average daily membership 
 67.32  for the current fiscal year to the state total average daily 
 67.33  membership for the preceding fiscal year. 
 67.34     Sec. 29.  Minnesota Statutes 1996, section 124.86, 
 67.35  subdivision 2, is amended to read: 
 67.36     Subd. 2.  [REVENUE AMOUNT.] An American Indian-controlled 
 68.1   tribal contract or grant school that is located on a reservation 
 68.2   within the state and that complies with the requirements in 
 68.3   subdivision 1 is eligible to receive tribal contract or grant 
 68.4   school aid.  The amount of aid is derived by: 
 68.5      (1) multiplying the formula allowance under section 
 68.6   124A.22, subdivision 2, less $170, times the difference between 
 68.7   (a) the actual pupil units as defined in section 124A.02, 
 68.8   subdivision 15, in average daily membership, excluding section 
 68.9   124.17, subdivision 2f, and (b) the number of pupils for the 
 68.10  current school year, weighted according to section 124.17, 
 68.11  subdivision 1, receiving benefits under section 123.933 or 
 68.12  123.935 or for which the school is receiving reimbursement under 
 68.13  section 126.23; 
 68.14     (2) adding to the result in clause (1) an amount equal to 
 68.15  the product of the formula allowance under section 124A.22, 
 68.16  subdivision 2, less $300 times the tribal contract compensation 
 68.17  revenue pupil units; 
 68.18     (3) subtracting from the result in clause (1) (2) the 
 68.19  amount of money allotted to the school by the federal government 
 68.20  through Indian School Equalization Program of the Bureau of 
 68.21  Indian Affairs, according to Code of Federal Regulations, title 
 68.22  25, part 39, subparts A to E, for the basic program as defined 
 68.23  by section 39.11, paragraph (b), for the base rate as applied to 
 68.24  kindergarten through twelfth grade, excluding small school 
 68.25  adjustments and additional weighting, but not money allotted 
 68.26  through subparts F to L for contingency funds, school board 
 68.27  training, student training, interim maintenance and minor 
 68.28  repair, interim administration cost, prekindergarten, and 
 68.29  operation and maintenance, and the amount of money that is 
 68.30  received according to section 126.23; 
 68.31     (3) (4) dividing the result in clause (2) (3) by the sum 
 68.32  of the actual pupil units in average daily membership, excluding 
 68.33  section 124.17, subdivision 2f, plus the tribal contract 
 68.34  compensation revenue pupil units; and 
 68.35     (4) (5) multiplying the sum of the actual pupil units, 
 68.36  including section 124.17, subdivision 2f, in average daily 
 69.1   membership plus the tribal contract compensation revenue pupil 
 69.2   units by the lesser of $1,500 or the sum of the result in 
 69.3   clause (3) plus $300 (4). 
 69.4      Sec. 30.  Minnesota Statutes 1996, section 124.86, is 
 69.5   amended by adding a subdivision to read: 
 69.6      Subd. 5.  [TRIBAL CONTRACT PUPIL UNITS.] Pupil units for 
 69.7   pupils enrolled in tribal contract schools shall be used only 
 69.8   for the purpose of computing tribal contract aid according to 
 69.9   this section. 
 69.10     Sec. 31.  Minnesota Statutes 1996, section 124.912, 
 69.11  subdivision 6, is amended to read: 
 69.12     Subd. 6.  [CRIME RELATED COSTS.] For taxes levied in 1991 
 69.13  and subsequent years, payable in 1992 and subsequent years, each 
 69.14  school district may make a levy on all taxable property located 
 69.15  within the school district for the purposes specified in this 
 69.16  subdivision.  The maximum amount which may be levied for all 
 69.17  costs under this subdivision shall be equal to $1 $1.50 
 69.18  multiplied by the population of the school district.  For 
 69.19  purposes of this subdivision, "population" of the school 
 69.20  district means the same as contained in section 275.14.  The 
 69.21  proceeds of the levy must be used for reimbursing the cities and 
 69.22  counties who contract with the school district for the following 
 69.23  purposes:  (1) to pay the costs incurred for the salaries, 
 69.24  benefits, and transportation costs of peace officers and 
 69.25  sheriffs for liaison services in the district's middle and 
 69.26  secondary schools; (2) to pay the costs for a drug abuse 
 69.27  prevention program as defined in Minnesota Statutes 1991 
 69.28  Supplement, section 609.101, subdivision 3, paragraph (f), in 
 69.29  the elementary schools; or (3) to pay the costs for a gang 
 69.30  resistance education training curriculum in the middle schools.  
 69.31  The school district must initially attempt to contract for these 
 69.32  services with the police department of each city or the 
 69.33  sheriff's department of the county within the school district 
 69.34  containing the school receiving the services.  If a local police 
 69.35  department or a county sheriff's department does not wish to 
 69.36  provide the necessary services, the district may contract for 
 70.1   these services with any other police or sheriff's department 
 70.2   located entirely or partially within the school district's 
 70.3   boundaries.  The levy authorized under this subdivision is not 
 70.4   included in determining the school district's levy limitations. 
 70.5      Sec. 32.  Minnesota Statutes 1996, section 124C.45, 
 70.6   subdivision 1a, is amended to read: 
 70.7      Subd. 1a.  [RESERVE REVENUE.] Each school district that is 
 70.8   a member of an area learning center must reserve revenue in an 
 70.9   amount equal to at least 90 percent of the basic district 
 70.10  average general education revenue generated by each student less 
 70.11  compensatory revenue unit times the number of pupil units 
 70.12  attending an area learning center program under this section.  
 70.13  The amount of reserved revenue under this subdivision may only 
 70.14  be spent on program costs associated with the area learning 
 70.15  center.  Compensatory revenue must be allocated according to 
 70.16  section 124A.28, subdivision 1a. 
 70.17     Sec. 33.  Minnesota Statutes 1996, section 124C.498, 
 70.18  subdivision 3, is amended to read: 
 70.19     Subd. 3.  [GRANT APPLICATION PROCESS.] (a) Any group of 
 70.20  school districts that meets the criteria required under 
 70.21  paragraph (b)(i) may apply for a magnet school grant in an 
 70.22  amount not to exceed $10,000,000 $15,000,000 for the approved 
 70.23  costs or expansion of a magnet school facility. 
 70.24     (b)(i) Any group of districts that submits an application 
 70.25  for a grant shall submit a proposal to the commissioner for 
 70.26  review and comment under section 121.15, and the commissioner 
 70.27  shall prepare a review and comment on the proposed magnet school 
 70.28  facility, regardless of the amount of the capital expenditure 
 70.29  required to design, acquire, construct, remodel, improve, 
 70.30  furnish, or equip the facility.  The commissioner must not 
 70.31  approve an application for a magnet school grant for any 
 70.32  facility unless the facility receives a favorable review and 
 70.33  comment under section 121.15 and the participating districts: 
 70.34     (1) establish a joint powers board under section 471.59 to 
 70.35  represent all participating districts and govern the magnet 
 70.36  school facility; 
 71.1      (2) design the planned magnet school facility to meet the 
 71.2   applicable requirements contained in Minnesota Rules, chapter 
 71.3   3535; 
 71.4      (3) submit a statement of need, including reasons why the 
 71.5   magnet school will facilitate integration and improve learning; 
 71.6      (4) prepare an educational plan that includes input from 
 71.7   both community and professional staff; and 
 71.8      (5) develop an education program that will improve learning 
 71.9   opportunities for students attending the magnet school. 
 71.10     (ii) The districts may develop a plan that permits social 
 71.11  service, health, and other programs serving students and 
 71.12  community residents to be located within the magnet school 
 71.13  facility.  The commissioner shall consider this plan when 
 71.14  preparing a review and comment on the proposed facility.  
 71.15     (c) When two or more districts enter into an agreement 
 71.16  establishing a joint powers board to govern the magnet school 
 71.17  facility, all member districts shall have the same powers.  
 71.18     (d) A joint powers board of participating school districts 
 71.19  established under paragraphs (b) and (c) that intends to apply 
 71.20  for a grant shall adopt a resolution stating the costs of the 
 71.21  proposed project, the purpose for which the debt is to be 
 71.22  incurred, and an estimate of the dates when the contracts for 
 71.23  the proposed project will be completed.  A copy of the 
 71.24  resolution must accompany any application for a state grant 
 71.25  under this section. 
 71.26     (e)(i) The commissioner shall examine and consider all 
 71.27  grant applications.  If the commissioner finds that any joint 
 71.28  powers district is not a qualified grant applicant, the 
 71.29  commissioner shall promptly notify that joint powers board.  The 
 71.30  commissioner shall make awards to no more than two qualified 
 71.31  applicants whose applications have been on file with the 
 71.32  commissioner more than 30 days.  
 71.33     (ii) A grant award is subject to verification by the joint 
 71.34  powers board under paragraph (f).  A grant award must not be 
 71.35  made until the participating districts determine the site of the 
 71.36  magnet school facility.  If the total amount of the approved 
 72.1   applications exceeds the amount of grant funding that is or can 
 72.2   be made available, the commissioner shall allot the available 
 72.3   amount equally between the approved applicant districts.  The 
 72.4   commissioner shall promptly certify to each qualified joint 
 72.5   powers board the amount, if any, of the grant awarded to it. 
 72.6      (f) Each grant must be evidenced by a contract between the 
 72.7   joint powers board and the state acting through the 
 72.8   commissioner.  The contract obligates the state to pay to the 
 72.9   joint powers board an amount computed according to paragraph 
 72.10  (e)(ii) and a schedule, and terms and conditions acceptable to 
 72.11  the commissioner of finance. 
 72.12     Sec. 34.  Minnesota Statutes 1996, section 126.22, 
 72.13  subdivision 8, is amended to read: 
 72.14     Subd. 8.  [ENROLLMENT VERIFICATION.] (a) For a pupil 
 72.15  attending an eligible program full time under subdivision 3, 
 72.16  paragraph (d), the department of children, families, and 
 72.17  learning shall pay 90 percent of the basic district's average 
 72.18  general education revenue less compensatory revenue of the 
 72.19  district to the eligible program and ten percent of the basic 
 72.20  district's average general education revenue less compensatory 
 72.21  revenue to the resident district within 30 days after the 
 72.22  eligible program verifies enrollment using the form provided by 
 72.23  the department.  For a pupil attending an eligible program part 
 72.24  time, basic revenue shall be reduced proportionately, according 
 72.25  to the amount of time the pupil attends the program, and the 
 72.26  payments to the eligible program and the resident district shall 
 72.27  be reduced accordingly.  A pupil for whom payment is made 
 72.28  according to this section may not be counted by any district for 
 72.29  any purpose other than computation of basic general education 
 72.30  revenue, according to section 124A.22, subdivision 2.  If 
 72.31  payment is made for a pupil under this subdivision, a school 
 72.32  district shall not reimburse a program under section 126.23 for 
 72.33  the same pupil.  Compensatory revenue shall be paid according to 
 72.34  section 124A.22, subdivision 3. 
 72.35     (b) The department of children, families, and learning 
 72.36  shall pay up to 100 percent of the basic revenue to the eligible 
 73.1   program if there is an agreement to that effect between the 
 73.2   school district and the eligible program. 
 73.3      Sec. 35.  [126.225] [ADDITIONAL REVENUE FOR HOMELESS 
 73.4   STUDENTS.] 
 73.5      In addition to revenue received under section 126.22, 
 73.6   subdivisions 7 and 8, and section 126.23, subdivision 1, a 
 73.7   district shall receive additional revenue for homeless pupils 
 73.8   who are eligible to participate in the graduation incentives 
 73.9   program according to section 126.22, subdivision 1, paragraph 
 73.10  (a), clause (9), equal to $100 per pupil unit.  The revenue 
 73.11  received under this section shall be used for expanding 
 73.12  education services to include preschool, after-school, or summer 
 73.13  school programs to provide transition and follow-up services to 
 73.14  homeless pupils who are placed or mainstreamed in a district 
 73.15  school, or to provide parent education and support services.  
 73.16  The additional revenue shall be paid to the public or nonprofit 
 73.17  school program providing services to homeless pupils.  A student 
 73.18  shall not be considered homeless under this section if the 
 73.19  student was displaced from home as a result of a natural 
 73.20  disaster. 
 73.21     Sec. 36.  Minnesota Statutes 1996, section 126.23, 
 73.22  subdivision 1, is amended to read: 
 73.23     Subdivision 1.  [AID.] If a pupil enrolls in an alternative 
 73.24  program, eligible under section 126.22, subdivision 3, paragraph 
 73.25  (d), or subdivision 3a, operated by a private organization that 
 73.26  has contracted with a school district to provide educational 
 73.27  services for eligible pupils under section 126.22, subdivision 
 73.28  2, the district contracting with the private organization must 
 73.29  reimburse the provider an amount equal to at least 90 percent of 
 73.30  the basic district's average general education less compensatory 
 73.31  revenue of the district for each pupil attending the program 
 73.32  full time per pupil unit times the number of pupil units for 
 73.33  pupils attending the program.  Compensatory revenue must be 
 73.34  allocated according to section 124A.28, subdivision 1a.  For a 
 73.35  pupil attending the program part time, basic the revenue paid to 
 73.36  the program shall be reduced proportionately, according to the 
 74.1   amount of time the pupil attends the program, and basic revenue 
 74.2   paid to the district shall be reduced accordingly.  Pupils for 
 74.3   whom a district provides reimbursement may not be counted by the 
 74.4   district for any purpose other than computation of basic 
 74.5   revenue, according to section 124A.22, subdivision 2 general 
 74.6   education revenue.  If payment is made to a district or program 
 74.7   for a pupil under this section, the department of children, 
 74.8   families, and learning shall not make a payment for the same 
 74.9   pupil under section 126.22, subdivision 8. 
 74.10     Sec. 37.  [126.256] [AMERICAN SIGN LANGUAGE.] 
 74.11     Satisfactory completion of courses in American sign 
 74.12  language in a public elementary or secondary school shall be 
 74.13  accorded equal standing with satisfactory completion of courses 
 74.14  in any world language. 
 74.15     Sec. 38.  [126.79] [LEARN AND EARN GRADUATION ACHIEVEMENT 
 74.16  PROGRAM.] 
 74.17     Subdivision 1.  [GRANT PROGRAM ESTABLISHED.] A learn and 
 74.18  earn graduation achievement grant program is established under 
 74.19  the administration of the commissioner of children, families, 
 74.20  and learning.  The purpose of the program is to aid local 
 74.21  communities in their efforts to decrease youth crime by 
 74.22  improving the secondary educational success and increasing the 
 74.23  post-secondary educational opportunities of low-income high 
 74.24  school students who reside in and attend schools in communities 
 74.25  that have a high level of poverty and juvenile crime.  The 
 74.26  commissioner shall make grants under this section to applicants 
 74.27  to establish local learn and earn programs that are 
 74.28  school-centered and that use a community-based approach that 
 74.29  provides eligible youth in grades 9 through 12 with individually 
 74.30  tailored opportunities for academic enrichment, community 
 74.31  service, and personal development that lead to a high school 
 74.32  diploma and post-secondary education. 
 74.33     Subd. 2.  [PROGRAM OUTCOME MEASURES.] The goals of the 
 74.34  learn and earn graduation achievement program are to: 
 74.35     (1) increase school attendance; 
 74.36     (2) decrease school suspensions and dropouts; 
 75.1      (3) increase youth academic achievement, measured by 
 75.2   graduation rates and post-secondary enrollment; and 
 75.3      (4) decrease juvenile crime. 
 75.4      Subd. 3.  [LOCAL PROGRAMS; APPLICATION PROCEDURE; GRANT 
 75.5   AWARDS.] The commissioner shall make grants to eligible 
 75.6   applicants to establish local learn and earn programs.  Each 
 75.7   program shall operate for at least a four-year period.  A local 
 75.8   program shall select its participants from among eligible 
 75.9   students who are entering or are in the ninth grade at the 
 75.10  inception of the program.  A program may not refill a program 
 75.11  slot with another student if a student drops out of the program. 
 75.12  Students selected to participate in the program shall be 
 75.13  considered part of the program class and students who drop out 
 75.14  may return to the program at any time prior to graduation. 
 75.15     The commissioner shall establish the application procedure 
 75.16  for awarding grants under this section.  The commissioner shall 
 75.17  begin awarding grants by September 1, 1997. 
 75.18     Subd. 4.  [GRANT ELIGIBILITY.] An applicant for a grant 
 75.19  must be a public secondary school, a nonprofit community-based 
 75.20  agency cooperating with a secondary school, area learning 
 75.21  center, or alternative learning program approved by the 
 75.22  commissioner.  Grant applicants must meet all of the following 
 75.23  criteria: 
 75.24     (1) at least 20 percent of the students at the 
 75.25  participating school or program are eligible to receive a free 
 75.26  school lunch; 
 75.27     (2) the area which the participating school or program 
 75.28  serves has a high juvenile crime rate or has experienced a 
 75.29  significant increase in juvenile crime over the past three 
 75.30  school years; 
 75.31     (3) the applicant has a designated program coordinator who 
 75.32  will coordinate school and community resources to provide 
 75.33  students with sufficient support and continuity to realize 
 75.34  program goals; and 
 75.35     (4) the applicant has established an advisory committee 
 75.36  that includes representatives of the students and families 
 76.1   served by the program and community organizations serving youth 
 76.2   and families.  The applicant may use an existing advisory 
 76.3   committee that includes this representation. 
 76.4      At least 80 percent of a local learn and earn program's 
 76.5   participating students at the inception of the program must 
 76.6   reside in households with incomes at or below the federal 
 76.7   poverty level adjusted for family size. 
 76.8      The commissioner shall give priority to funding local learn 
 76.9   and earn programs that serve those communities that have the 
 76.10  highest juvenile crime rates and the largest concentrations of 
 76.11  economically disadvantaged youth. 
 76.12     Subd. 5.  [STUDENT ELIGIBILITY.] A student is eligible to 
 76.13  participate in a local learn and earn program if the student: 
 76.14     (1) is enrolled in the participating school; 
 76.15     (2) is entering or is in the ninth grade at the inception 
 76.16  of the program; and 
 76.17     (3) resides in a household whose income is at or below the 
 76.18  federal poverty level adjusted for family size, has been 
 76.19  recommended for the program by a teacher or other community 
 76.20  member, has requested to participate, or whose participation has 
 76.21  been requested by a family member, according to a procedure to 
 76.22  be developed by the applicant. 
 76.23     Subd. 6.  [PROGRAM COMPONENTS.] Each learn and earn 
 76.24  graduation achievement program must provide the opportunity for 
 76.25  participating students to complete: 
 76.26     (1) 250 hours each year, not including regular required 
 76.27  classroom hours, in basic education competency skills; 
 76.28     (2) 250 hours each year of community service; and 
 76.29     (3) 250 hours each year of cultural enrichment and personal 
 76.30  development, including but not limited to adult mentoring; 
 76.31  participating in community cultural events; developing life 
 76.32  skills for use in the home, workplace, and community; and 
 76.33  learning to set goals, manage time, and make appropriate 
 76.34  behavior choices for varying social situations. 
 76.35     Subd. 7.  [PROGRAM INCENTIVES.] (a) Each participating 
 76.36  student shall receive a monetary stipend for each hour spent in 
 77.1   a program component activity, plus a bonus upon completion of 
 77.2   each component during each year of the program. 
 77.3      (b) An additional amount equal to or greater than each 
 77.4   student's earned stipends and bonuses must be deposited for the 
 77.5   student in a post-secondary opportunities interest-bearing 
 77.6   account, established by the commissioner through the higher 
 77.7   education services office.  A student may, upon graduation from 
 77.8   high school, use the funds accumulated for the student toward 
 77.9   the costs of attending a Minnesota post-secondary institution or 
 77.10  participating in a Minnesota post-secondary program.  Funds 
 77.11  accumulated for a student shall be available to the student from 
 77.12  the time the student graduates from high school until ten years 
 77.13  after the date the student entered the learn and earn graduation 
 77.14  achievement program.  After ten years, the commissioner shall 
 77.15  close the student's account and any remaining money in the 
 77.16  account shall revert to the general fund. 
 77.17     The commissioner shall establish a procedure for providing 
 77.18  the monetary stipends and bonuses to students.  The commissioner 
 77.19  may delegate this authority to grantees. 
 77.20     Subd. 8.  [PROGRAM COORDINATOR.] The local learn and earn 
 77.21  program coordinator must maintain contact with all participating 
 77.22  students and their families; work with the school to link 
 77.23  students with the resources needed to improve their educational 
 77.24  skills; arrange for community service and cultural enrichment 
 77.25  opportunities for students; maintain records regarding student 
 77.26  completion of program component hours; and perform other 
 77.27  administrative duties as necessary.  A program coordinator must, 
 77.28  to the extent possible, agree to remain with the program for 
 77.29  four years to provide continuity of adult contact to the 
 77.30  participating students. 
 77.31     Subd. 9.  [EVALUATION AND REPORTS.] The commissioner shall 
 77.32  collect information about participating students and a 
 77.33  demographically similar control group and shall evaluate the 
 77.34  short-term and long-term benefits participating students receive 
 77.35  from the learn and earn graduation achievement program, based on 
 77.36  the outcome measures specified in subdivision 2, and any other 
 78.1   criteria established by the commissioner as part of the grant 
 78.2   application process.  The evaluation must include a statistical 
 78.3   comparison of students participating in the program and the 
 78.4   control group.  The commissioner shall track participating 
 78.5   students and the control group for a minimum of six years from 
 78.6   the start of the program.  The commissioner shall submit a 
 78.7   preliminary report to the governor and the chairs of the senate 
 78.8   and house committees having jurisdiction over education and 
 78.9   crime prevention by December 15, 2000, regarding continuation of 
 78.10  the learn and earn graduation achievement program for 
 78.11  participating schools and expansion of the program to additional 
 78.12  schools.  The commissioner shall submit a final report by 
 78.13  December 15, 2002. 
 78.14     Sec. 39.  Minnesota Statutes 1996, section 128B.10, 
 78.15  subdivision 1, is amended to read: 
 78.16     Subdivision 1.  [EXTENSION.] This chapter is repealed July 
 78.17  1, 1997 remains in effect until otherwise provided by law. 
 78.18     Sec. 40.  Minnesota Statutes 1996, section 245.493, 
 78.19  subdivision 1, is amended to read: 
 78.20     Subdivision 1.  [REQUIREMENTS TO QUALIFY AS A LOCAL 
 78.21  CHILDREN'S MENTAL HEALTH COLLABORATIVE.] In order to qualify as 
 78.22  a local children's mental health collaborative and be eligible 
 78.23  to receive start-up funds, the representatives of the local 
 78.24  system of care, or at a minimum one county, one school district 
 78.25  or special education cooperative, and one mental health entity 
 78.26  must agree to the following: 
 78.27     (1) to establish a local children's mental health 
 78.28  collaborative and develop an integrated service system; and 
 78.29     (2) to commit resources to providing services through the 
 78.30  local children's mental health collaborative; and 
 78.31     (3) develop a plan to contribute funds to the children's 
 78.32  mental health collaborative. 
 78.33     Sec. 41.  Minnesota Statutes 1996, section 260A.02, 
 78.34  subdivision 3, is amended to read: 
 78.35     Subd. 3.  [CONTINUING TRUANT.] "Continuing truant" means a 
 78.36  child who is subject to the compulsory instruction requirements 
 79.1   of section 120.101 and is absent from instruction in a school, 
 79.2   as defined in section 120.05, without valid excuse within a 
 79.3   single school year for: 
 79.4      (1) three days if the child is in elementary school; or 
 79.5      (2) three or more class periods on three days if the child 
 79.6   is in middle school, junior high school, or high school. 
 79.7      A child is not a continuing truant if the child is 
 79.8   withdrawn from school by the child's parents because of a 
 79.9   dispute with the school concerning the provision of special 
 79.10  education services under the Individuals with Disabilities 
 79.11  Education Act or accommodations and modifications under the 
 79.12  Americans with Disabilities Act, if the parent makes good faith 
 79.13  efforts to provide the child educational services from any other 
 79.14  source.  No parent who withdraws a child from school during a 
 79.15  dispute with the school concerning the provision of special 
 79.16  education services or accommodations and modifications is 
 79.17  required to file home school papers, if the parent provides 
 79.18  written notice to the department of children, families, and 
 79.19  learning or the district of the plan for the child's education. 
 79.20     Nothing in this section shall prevent a school district 
 79.21  from notifying a truant child's parent or legal guardian of the 
 79.22  child's truancy or otherwise addressing a child's attendance 
 79.23  problems prior to the child becoming a continuing truant. 
 79.24     Sec. 42.  Laws 1994, chapter 647, article 7, section 18, 
 79.25  subdivision 2, is amended to read: 
 79.26     Subd. 2.  [ELIGIBILITY; APPLICATION.] A school district or 
 79.27  a group of school districts that have entered into a joint 
 79.28  powers agreement under Minnesota Statutes, section 471.59, to 
 79.29  provide for a magnet school or magnet program is eligible to 
 79.30  apply for an educational performance improvement grant.  The 
 79.31  application shall be on a form approved by the commissioner of 
 79.32  education.  The commissioner shall make recommendations to the 
 79.33  state board of education on which districts should be considered 
 79.34  for a grant contract.  The commissioner shall give priority to 
 79.35  school districts: 
 79.36     (1) in which at least one school has received a school 
 80.1   improvement incentive grant under Minnesota Statutes 1993 
 80.2   Supplement, section 121.602, subdivision 5; and 
 80.3      (2) that demonstrate a commitment to increasing 
 80.4   accountability by using a results-oriented system for measuring 
 80.5   student achievement. 
 80.6      Sec. 43.  Laws 1994, chapter 647, article 7, section 18, 
 80.7   subdivision 3, is amended to read: 
 80.8      Subd. 3.  [CONTRACT.] The state board of education may 
 80.9   enter into a one-year contract with a school district or group 
 80.10  of school districts for the purpose of awarding an educational 
 80.11  performance improvement grant.  The state board shall award a 
 80.12  grant only for measurable gains in student achievement.  The 
 80.13  terms of the contract shall at minimum address: 
 80.14     (1) the criteria and assessments to be used in measuring 
 80.15  student achievement; 
 80.16     (2) the district's baseline level of student achievement 
 80.17  for the district or group of districts; 
 80.18     (3) the level of student achievement, desegregation or 
 80.19  diversity, or improved operations to be reached under the 
 80.20  contract; 
 80.21     (4) a timeline for determining whether the contract goals 
 80.22  have been met; and 
 80.23     (5) at the discretion of the state board, provisions 
 80.24  governing the award of a partial grant to the district or group 
 80.25  of districts if the contract goals are not fully met. 
 80.26     Sec. 44.  Laws 1995, First Special Session chapter 3, 
 80.27  article 3, section 11, subdivision 1, is amended to read: 
 80.28     Subdivision 1.  [PURPOSE.] A pilot program is established 
 80.29  to support general education classroom teachers who teach 
 80.30  children with specific learning disabilities.  The goals of the 
 80.31  pilot program are to: 
 80.32     (1) increase participation of these children in 
 80.33  noncategorical programming designed to encourage their maximum 
 80.34  potential and maintain their self-esteem; 
 80.35     (2) demonstrate results in measurable educational outcomes; 
 80.36     (3) provide alternatives to special education that focus on 
 81.1   children's educational progress and results, respond to the 
 81.2   individual child, are efficient and cost-effective, and ensure 
 81.3   the rights of eligible children and their families to due 
 81.4   process; 
 81.5      (4) increase general education's ability to educate in a 
 81.6   manner that decreases the need for pull-out programs for 
 81.7   students with specific learning disabilities; and 
 81.8      (5) implement alternative approaches to conflict 
 81.9   resolution; and 
 81.10     (6) provide assistive technology to make individualized 
 81.11  student accommodations. 
 81.12     Sec. 45.  Laws 1995, First Special Session chapter 3, 
 81.13  article 3, section 11, subdivision 2, is amended to read: 
 81.14     Subd. 2.  [DEFINITIONS.] For the purposes of this section 
 81.15  the terms defined in this subdivision have the meanings given 
 81.16  them. 
 81.17     (a) "Accommodation" means any technique that alters the 
 81.18  educational setting to enable the child to reach the child's 
 81.19  maximum potential and to demonstrate more accurately the child's 
 81.20  knowledge and educational progress.  Accommodations may include, 
 81.21  but are not limited to:  preferential seating, paraphrasing of 
 81.22  information, instructions, practice activities and directions 
 81.23  provided in a manner consistent with the child's learning style, 
 81.24  opportunity for increased response time, more frequent 
 81.25  opportunity for review, extended time to complete assignments 
 81.26  and tests, larger print for assignments or tests, special study 
 81.27  sheets, extended or untimed tests, oral testing and answering, 
 81.28  and use of assistive technology within and outside the 
 81.29  educational environment. 
 81.30     (b) "Assistive technology device" means any item, piece of 
 81.31  equipment, or product system, whether acquired commercially off 
 81.32  the shelf, modified, or customized, that is used to increase, 
 81.33  maintain, or improve functional capabilities is as defined in 
 81.34  Minnesota Statutes, section 120.187. 
 81.35     (c) "Competency" means a documented and demonstrated 
 81.36  attitude, skill, or knowledge base resulting in an ability of 
 82.1   general education personnel to provide accommodations, 
 82.2   modifications, and personalized instruction, according to the 
 82.3   eligible child's individual learning styles, within general 
 82.4   education environments. 
 82.5      (d) "Consistently available" means that education personnel 
 82.6   who demonstrate competency are site-based and designated as a 
 82.7   resource for the development and use of accommodations, 
 82.8   modifications, and personalized instruction in general education.
 82.9      (e) "Eligible children" means those children who have 
 82.10  specific learning disabilities or conditions related to these 
 82.11  disabilities according to recognized professional standards and 
 82.12  documented by appropriately licensed personnel. 
 82.13     (f) "Learner plan" means a concise written plan that is 
 82.14  based on the eligible child's documented specific learning 
 82.15  disabilities and needs; includes the eligible child's strengths 
 82.16  that may compensate for those differences and needs; provides 
 82.17  the child, the child's parent, and all general education 
 82.18  personnel responsible for direct instruction with information 
 82.19  that results in clear understanding and subsequent use of 
 82.20  accommodations, modifications, and personalized instruction; and 
 82.21  includes methods of evaluating the child's progress that are 
 82.22  consistent with learning differences, needs, strengths, 
 82.23  modifications, and accommodations, and are at intervals 
 82.24  identical to the student population of the school in which the 
 82.25  child participating in Options Plus is enrolled. 
 82.26     (g) "Modification" means any technique that alters the 
 82.27  school work required, makes it different from the school work 
 82.28  required or other students in the same course, and encourages 
 82.29  the eligible child to reach the child's maximum potential and 
 82.30  facilitate educational success.  Modifications may include, but 
 82.31  are not limited to:  copies of teacher notes and lesson plans, 
 82.32  assisted note taking, reduced or altered assignments, increased 
 82.33  assignments in areas of strength, alternative test formats, 
 82.34  modified testing, peer assistance, cooperative learning, and 
 82.35  modified grading such as documentation of progress and results. 
 82.36     (h) "Parent" means a parent, guardian, or person acting as 
 83.1   a parent of a child. 
 83.2      (i) "Personalized instruction" means direct instruction 
 83.3   designed with knowledge of the child's learning style, 
 83.4   strengths, and differences, to assist the child to gain in skill 
 83.5   areas, so the child demonstrates progress toward and outcomes 
 83.6   necessary to become a successful citizen. 
 83.7      Sec. 46.  Laws 1995, First Special Session chapter 3, 
 83.8   article 3, section 11, subdivision 5, is amended to read: 
 83.9      Subd. 5.  [USE OF FUNDS.] Options Plus pilot program grants 
 83.10  shall be used to supplement staff development funding under 
 83.11  Minnesota Statutes, section 124A.29, to train general education 
 83.12  classroom teachers to meet the needs of children with specific 
 83.13  learning disabilities and provide assistive technology devices 
 83.14  in a general education setting.  The training shall result in 
 83.15  each participating teacher achieving the following competencies: 
 83.16     (1) understanding and communicating to the parents of the 
 83.17  child the options available for instruction; 
 83.18     (2) the ability to assess the learning environment and 
 83.19  provide the necessary accommodations, modifications, and 
 83.20  personalized instruction necessary to meet the needs of the 
 83.21  child; and 
 83.22     (3) the ability to work collaboratively and in teams with 
 83.23  other teachers and support and related services staff; and 
 83.24     (4) the ability to teach children to use the assistive 
 83.25  technology devices. 
 83.26     Sec. 47.  [AMERICAN SIGN LANGUAGE RECOGNIZED AS A WORLD 
 83.27  LANGUAGE.] 
 83.28     The Minnesota state legislature recognizes American sign 
 83.29  language as a fully developed, autonomous, natural language with 
 83.30  distinct grammar, syntax, vocabulary, and cultural heritage 
 83.31  which is used by a variety of deaf, hard-of-hearing, deaf-blind 
 83.32  and hearing individuals in the United States, and hereby 
 83.33  determines that American sign language should be accorded equal 
 83.34  status with other linguistic systems in the state's public 
 83.35  elementary and secondary and higher education systems. 
 83.36     Sec. 48.  [MATCHING GRANTS FOR EDUCATION PROGRAMS SERVING 
 84.1   HOMELESS CHILDREN.] 
 84.2      A school district or a nonprofit entity contracting with a 
 84.3   school district to provide education and transition services for 
 84.4   homeless children is eligible for a matching grant for capital 
 84.5   facilities which serve homeless children and their families.  
 84.6   Grant proceeds may be used to design, furnish, equip, acquire, 
 84.7   repair, or construct a facility for providing education and 
 84.8   transition services for homeless pupils.  To obtain a grant, a 
 84.9   school district or nonprofit entity must submit an application 
 84.10  to the commissioner of children, families, and learning in the 
 84.11  form and manner the commissioner establishes.  Grants must be 
 84.12  matched by $1 of nonstate money for every $1 of grant money 
 84.13  received.  The commissioner shall take into consideration the 
 84.14  number of concentration of homeless children served by a school 
 84.15  district when awarding grants.  The commissioner may award 
 84.16  matching grants of up to $500,000 per school district. 
 84.17     Sec. 49.  [OSSEO LEVY.] 
 84.18     For levies payable in 1998 only, independent school 
 84.19  district No. 279, Osseo, may levy a tax in an amount not to 
 84.20  exceed $800,000.  The proceeds of this levy must be used to 
 84.21  provide instructional services for at-risk children. 
 84.22     Sec. 50.  [PINE POINT SCHOOL.] 
 84.23     Notwithstanding Minnesota Statutes, section 128B.10, 
 84.24  subdivision 1, the other provisions of Minnesota Statutes, 
 84.25  chapter 128B, remain in effect after June 30, 1997.  Actions 
 84.26  taken pursuant to Minnesota Statutes, chapter 128B, after June 
 84.27  30, 1997, and before the effective date of this section are 
 84.28  valid and ratified by this section. 
 84.29     Sec. 51.  [APPROPRIATIONS.] 
 84.30     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 84.31  LEARNING.] The sums indicated in this section are appropriated, 
 84.32  unless otherwise indicated, from the general fund to the 
 84.33  department of children, families, and learning for the fiscal 
 84.34  years designated.  
 84.35     Subd. 2.  [AMERICAN INDIAN LANGUAGE AND CULTURE PROGRAMS.] 
 84.36  For grants to American Indian language and culture education 
 85.1   programs according to Minnesota Statutes, section 126.54, 
 85.2   subdivision 1: 
 85.3        $591,000     .....     1998
 85.4        $591,000     .....     1999
 85.5      The 1998 appropriation includes $59,000 for 1997 and 
 85.6   $532,000 for 1998.  
 85.7      The 1999 appropriation includes $59,000 for 1998 and 
 85.8   $532,000 for 1999.  
 85.9      Any balance in the first year does not cancel but is 
 85.10  available in the second year. 
 85.11     Subd. 3.  [AMERICAN INDIAN EDUCATION.] (a) For certain 
 85.12  American Indian education programs in school districts: 
 85.13       $175,000       .....     1998
 85.14       $175,000       .....     1999
 85.15     The 1998 appropriation includes $17,000 for 1997 and 
 85.16  $158,000 for 1998.  
 85.17     The 1999 appropriation includes $17,000 for 1998 and 
 85.18  $158,000 for 1999.  
 85.19     (b) These appropriations are available for expenditure with 
 85.20  the approval of the commissioner of the department of children, 
 85.21  families, and learning. 
 85.22     (c) The commissioner must not approve the payment of any 
 85.23  amount to a school district or school under this subdivision 
 85.24  unless that school district or school is in compliance with all 
 85.25  applicable laws of this state. 
 85.26     (d) Up to the following amounts may be distributed to the 
 85.27  following schools and school districts for each fiscal year:  
 85.28  $54,800, Pine Point School; $9,800 to independent school 
 85.29  district No. 166, Cook county; $14,900 to independent school 
 85.30  district No. 432, Mahnomen; $14,200 to independent school 
 85.31  district No. 435, Waubun; $42,200 to independent school district 
 85.32  No. 707, Nett Lake; and $39,100 to independent school district 
 85.33  No. 38, Red Lake.  These amounts must be spent only for the 
 85.34  benefit of American Indian pupils and to meet established state 
 85.35  educational standards or statewide requirements. 
 85.36     (e) Before a district or school can receive money under 
 86.1   this subdivision, the district or school must submit, to the 
 86.2   commissioner, evidence that it has complied with the uniform 
 86.3   financial accounting and reporting standards act, Minnesota 
 86.4   Statutes, sections 121.904 to 121.917. 
 86.5      Subd. 4.  [AMERICAN INDIAN POST-SECONDARY PREPARATION 
 86.6   GRANTS.] For American Indian post-secondary preparation grants 
 86.7   according to Minnesota Statutes, section 124.481: 
 86.8        $857,000     .....     1998
 86.9        $857,000     .....     1999
 86.10     Any balance in the first year does not cancel but is 
 86.11  available in the second year. 
 86.12     Subd. 5.  [AMERICAN INDIAN SCHOLARSHIPS.] For American 
 86.13  Indian scholarships according to Minnesota Statutes, section 
 86.14  124.48: 
 86.15       $1,600,000     .....     1998 
 86.16       $1,600,000     .....     1999 
 86.17     Any balance in the first year does not cancel but is 
 86.18  available in the second year. 
 86.19     Subd. 6.  [INDIAN TEACHER PREPARATION GRANTS.] (a) For 
 86.20  joint grants to assist Indian people to become teachers: 
 86.21       $190,000     .....     1998 
 86.22       $190,000     .....     1999 
 86.23     (b) Up to $70,000 each year is for a joint grant to the 
 86.24  University of Minnesota at Duluth and the Duluth school district.
 86.25     (c) Up to $40,000 each year is for a joint grant to each of 
 86.26  the following: 
 86.27     (1) Bemidji state university and the Red Lake school 
 86.28  district; 
 86.29     (2) Moorhead state university and a school district located 
 86.30  within the White Earth reservation; and 
 86.31     (3) Augsburg college, independent school district No. 625, 
 86.32  St. Paul, and the Minneapolis school district. 
 86.33     (d) Money not used for students at one location may be 
 86.34  transferred for use at another location. 
 86.35     (e) Any balance in the first year does not cancel but is 
 86.36  available in the second year. 
 87.1      Subd. 7.  [TRIBAL CONTRACT SCHOOLS.] For tribal contract 
 87.2   school aid according to Minnesota Statutes, section 124.86: 
 87.3        $2,287,000     .....     1998
 87.4        $2,797,000     .....     1999
 87.5      The 1998 appropriation includes $91,000 for 1997 and 
 87.6   $2,196,000 for 1998. 
 87.7      The 1999 appropriation includes $244,000 for 1998 and 
 87.8   $2,553,000 for 1999. 
 87.9      Subd. 8.  [EARLY CHILDHOOD PROGRAMS AT TRIBAL SCHOOLS.] For 
 87.10  early childhood family education programs at tribal contract 
 87.11  schools: 
 87.12       $68,000     .....     1998 
 87.13       $68,000     .....     1999 
 87.14     Subd. 9.  [AMERICAN SIGN LANGUAGE; TEACHER EDUCATION 
 87.15  HEARING.] To assist school districts in educating teachers in 
 87.16  American sign language: 
 87.17       $13,000     .....     1998
 87.18       $12,000     .....     1999
 87.19     Any balance in the first year does not cancel but is 
 87.20  available in the second year. 
 87.21     Subd. 10.  [MEXICAN ORIGIN EDUCATION GRANTS.] For grants 
 87.22  for a Mexican origin education pilot grant program: 
 87.23       $50,000     .....     1998
 87.24       $25,000     .....     1999
 87.25     Any balance in the first year does not cancel but is 
 87.26  available in the second year. 
 87.27     Subd. 11.  [LAY ADVOCATES.] To pay or reimburse lay 
 87.28  advocates for their time and expense as provided in Minnesota 
 87.29  Statutes, section 120.17: 
 87.30       $10,000     .....     1998
 87.31     This appropriation is available until June 30, 1999. 
 87.32     Subd. 12.  [OPTIONS PLUS PILOT GRANTS.] For grants to 
 87.33  school districts for options plus pilot programs: 
 87.34       $150,000    .....     1998 
 87.35     Each grant shall not exceed $50,000. 
 87.36     This appropriation is available until June 30, 1999.  
 88.1      Subd. 13.  [MAGNET SCHOOL GRANTS.] For magnet school and 
 88.2   program grants: 
 88.3        $5,750,000     .....     1998 
 88.4        $1,750,000     .....     1999 
 88.5      These amounts may be used for magnet school programs and 
 88.6   acquisition and betterment of magnet school facilities according 
 88.7   to Minnesota Statutes, section 124C.498. 
 88.8      Subd. 14.  [INTEGRATION PROGRAMS.] For grants according to: 
 88.9   minority fellowship grants according to Laws 1994, chapter 647, 
 88.10  article 8, section 29; minority teacher incentives according to 
 88.11  Minnesota Statutes, section 124.278; teachers of color grants 
 88.12  according to Minnesota Statutes, section 125.623; and cultural 
 88.13  exchange grants according to Minnesota Statutes, section 126.43: 
 88.14       $1,000,000     .....     1998
 88.15       $1,000,000     .....     1999
 88.16     Any balance in the first year does not cancel but is 
 88.17  available in the second year. 
 88.18     In awarding teacher of color grants, priority must be given 
 88.19  to districts that have students who are currently in the process 
 88.20  of completing their academic program. 
 88.21     Subd. 15.  [SPECIAL EDUCATION AID.] For special education 
 88.22  aid according to Minnesota Statutes, section 124.32: 
 88.23       $282,505,000   .....     1998 
 88.24       $382,519,000   .....     1999 
 88.25     The 1998 appropriation includes $24,346,000 for 1997 and 
 88.26  $258,159,000 for 1998.  
 88.27     The 1999 appropriation includes $28,684,000 for 1998 and 
 88.28  $353,835,000 for 1999.  
 88.29     Subd. 16.  [AID FOR CHILDREN WITH A DISABILITY.] For aid 
 88.30  according to Minnesota Statutes, section 124.32, subdivision 6, 
 88.31  for children with a disability placed in residential facilities 
 88.32  within the district boundaries for whom no district of residence 
 88.33  can be determined: 
 88.34       $586,000       .....     1998 
 88.35       $644,000       .....     1999 
 88.36     If the appropriation for either year is insufficient, the 
 89.1   appropriation for the other year is available.  Any balance in 
 89.2   the first year does not cancel but is available in the second 
 89.3   year. 
 89.4      Subd. 17.  [TRAVEL FOR HOME-BASED SERVICES.] For aid for 
 89.5   teacher travel for home-based services according to Minnesota 
 89.6   Statutes, section 124.32, subdivision 2b: 
 89.7        $107,000       .....     1998 
 89.8        $111,000       .....     1999 
 89.9      The 1998 appropriation includes $8,000 for 1997 and $99,000 
 89.10  for 1998.  
 89.11     The 1999 appropriation includes $10,000 for 1998 and 
 89.12  $101,000 for 1999.  
 89.13     Subd. 18.  [SPECIAL EDUCATION EXCESS COST AID.] For excess 
 89.14  cost aid: 
 89.15       $25,974,000    .....     1998 
 89.16       $44,984,000    .....     1999 
 89.17     The 1998 appropriation includes $1,242,000 for 1997 and 
 89.18  $24,732,000 for 1998.  
 89.19     The 1999 appropriation includes $2,748,000 for 1998 and 
 89.20  $42,236,000 for 1999. 
 89.21     Subd. 19.  [TARGETED NEEDS AID.] For targeted needs aid: 
 89.22       $47,225,000    .....     1998 
 89.23       $ 2,899,000    .....     1999 
 89.24     (a) Of the 1998 amount, $930,000 is for 1997 limited 
 89.25  English proficiency aid and $13,694,000 is for 1998 limited 
 89.26  English proficiency aid.  Of the 1998 amount, $1,364,000 is for 
 89.27  1997 assurance of mastery aid and $12,393,000 is for 1998 
 89.28  assurance of mastery aid.  Of the 1998 amount, $18,844,000 is 
 89.29  for 1998 integration aid. 
 89.30     (b) Of the 1999 amount, $1,522,000 is for 1998 limited 
 89.31  English proficiency aid and $0 is for 1999 limited English 
 89.32  proficiency aid.  Of the 1999 amount, $1,377,000 is for 1998 
 89.33  assurance of mastery aid and $0 is for 1999 assurance of mastery 
 89.34  aid.  
 89.35     (c) As a condition of receiving a grant, each district must 
 89.36  continue to report its costs according to the uniform financial 
 90.1   accounting and reporting system.  As a further condition of 
 90.2   receiving a grant, each district must submit a report to the 
 90.3   chairs of the education committees of the legislature about the 
 90.4   actual expenditures it made for integration using the grant 
 90.5   money including achievement results.  These grants may be used 
 90.6   to transport students attending a nonresident district under 
 90.7   Minnesota Statutes, section 120.062, to the border of the 
 90.8   resident district.  A district may allocate a part of the grant 
 90.9   to the transportation fund for this purpose. 
 90.10     Subd. 20.  [SCHOOL-TO-WORK PROGRAMS; STUDENTS WITH 
 90.11  DISABILITIES.] For aid for school-to-work programs for pupils 
 90.12  with disabilities according to Minnesota Statutes, section 
 90.13  124.574: 
 90.14       $7,044,000     .....     1998 
 90.15       $7,985,000     .....     1999 
 90.16     The 1998 appropriation includes $618,000 for 1997 and 
 90.17  $6,426,000 for 1998.  
 90.18     The 1999 appropriation includes $713,000 for 1998 and 
 90.19  $7,272,000 for 1999.  
 90.20     Subd. 21.  [SPECIAL PROGRAMS EQUALIZATION AID.] For special 
 90.21  education levy equalization aid according to Minnesota Statutes, 
 90.22  section 124.321: 
 90.23       $11,195,000     .....     1998
 90.24       $ 5,780,000     .....     1999
 90.25     The 1998 appropriation includes $1,783,000 for 1997 and 
 90.26  $9,412,000 for 1998.  
 90.27     The 1999 appropriation includes $1,045,000 for 1998 and 
 90.28  $4,735,000 for 1999. 
 90.29     Subd. 22.  [INTEGRATION AID.] For integration aid: 
 90.30       $26,124,000       .....     1999 
 90.31     This appropriation is based on an entitlement of 
 90.32  $29,026,000. 
 90.33     Subd. 23.  [CENTRAL MINNESOTA AREA LEARNING CENTER.] For a 
 90.34  grant to two or more of the following school districts, 
 90.35  independent school district Nos. 47, Sauk Rapids; 51, Foley; 
 90.36  738, Holdingford; 739, Kimball; 742, St. Cloud; 748, Sartell; 
 91.1   and 750, Cold Spring, that form a joint powers agreement under 
 91.2   Minnesota Statutes, section 471.59, to establish the central 
 91.3   Minnesota area learning center: 
 91.4        $130,000     .....     1998 
 91.5      This appropriation is available until June 30, 1999. 
 91.6      Subd. 24.  [ADDITIONAL REVENUE FOR HOMELESS STUDENTS.] For 
 91.7   additional revenue for homeless students according to Minnesota 
 91.8   Statutes, section 126.225: 
 91.9        $180,000     .....     1998
 91.10       $200,000     .....     1999
 91.11     The 1998 appropriation includes $0 for 1997 and $180,000 
 91.12  for 1998. 
 91.13     The 1999 appropriation includes $20,000 for 1998 and 
 91.14  $180,000 for 1999. 
 91.15     Subd. 25.  [MATCHING GRANTS FOR EDUCATION PROGRAMS SERVING 
 91.16  HOMELESS CHILDREN.] For matching grants for education programs 
 91.17  for homeless children: 
 91.18       $400,000     .....     1998
 91.19     This appropriation is available until June 30, 1999. 
 91.20     Subd. 26.  [LOW-INCOME CONCENTRATION GRANTS.] For 
 91.21  low-income concentration grants under Laws 1994, chapter 647, 
 91.22  article 8, section 43: 
 91.23       $1,000,000       .....     1998 
 91.24     The commissioner shall also award a grant to a school 
 91.25  building that has at least 20 percent students of color and 
 91.26  where at least 20 percent of the students are eligible for free 
 91.27  or reduced-price lunch if that school building is located in a 
 91.28  city where all the school buildings in that city are eligible 
 91.29  for low-income concentration grants. 
 91.30     Subd. 27.  [NETT LAKE.] For grants to independent school 
 91.31  district No. 707, Nett Lake: 
 91.32       $99,000     .....     1998
 91.33       $60,000     .....     1999 
 91.34     $39,000 in 1998 is for a grant to independent school 
 91.35  district No. 707, Nett Lake, to reimburse the district for 
 91.36  property and boiler insurance premiums paid in fiscal years 1996 
 92.1   and 1997. 
 92.2      $30,000 in 1998 and $30,000 in 1999 are for grants to 
 92.3   independent school district No. 707, Nett Lake, to pay property 
 92.4   insurance and boiler insurance premiums, and insurance premiums 
 92.5   under Minnesota Statutes, section 466.06. 
 92.6      $30,000 in 1998 and $30,000 in 1999 are for grants to 
 92.7   independent school district No. 707, Nett Lake, for the payment 
 92.8   of obligations of the school district for unemployment 
 92.9   compensation.  The appropriation must be paid to the appropriate 
 92.10  state agency for such purposes in the name of the school 
 92.11  district. 
 92.12     Subd. 28.  [NETT LAKE MEDIA SPECIALIST.] For a grant to 
 92.13  independent school district No. 707, Nett Lake, for a media 
 92.14  specialist for preschool through grade 6: 
 92.15          $35,000     .....     1998 
 92.16     Subd. 29.  [FIRST GRADE PREPAREDNESS.] (a) For grants for 
 92.17  the first grade preparedness program under Minnesota Statutes, 
 92.18  section 124.2613, and for school sites that have provided a 
 92.19  full-day kindergarten option for kindergarten students enrolled 
 92.20  in fiscal years 1996 and 1997: 
 92.21       $5,000,000     .....     1998 
 92.22       $5,000,000     .....     1999 
 92.23     (b) To be a qualified site, licensed teachers must have 
 92.24  taught the optional full-day kindergarten classes.  A district 
 92.25  that charged a fee for students participating in an optional 
 92.26  full-day program is eligible to receive the grant to provide 
 92.27  full-day kindergarten for all students as required by Minnesota 
 92.28  Statutes, section 124.2613, subdivision 4.  Districts with 
 92.29  eligible sites must apply to the commissioner of children, 
 92.30  families, and learning for a grant. 
 92.31     (c) This appropriation must first be used to fund programs 
 92.32  operating during the 1996-1997 school year under paragraph (b) 
 92.33  and Minnesota Statutes, section 124.2613.  Any remaining funds 
 92.34  may be used to expand the number of sites providing first grade 
 92.35  preparedness programs. 
 92.36     Subd. 30.  [EDUCATION PERFORMANCE IMPROVEMENT GRANTS.] For 
 93.1   additional grants under Laws 1994, chapter 647, article 7, 
 93.2   section 18, as amended: 
 93.3        $1,100,000     .....     1998 
 93.4      Consistent with the provisions of Laws 1994, chapter 647, 
 93.5   article 7, section 18, as amended, a grant recipient that is a 
 93.6   group of school districts that have entered into a joint powers 
 93.7   agreement may use the grant proceeds to enhance student 
 93.8   achievement and metropolitan desegregation.  Grant recipients 
 93.9   must comply with the achievement plan according to Minnesota 
 93.10  Statutes, section 123.951, subdivision 4. 
 93.11     This appropriation is available until June 30, 1999. 
 93.12     Subd. 31.  [CENTER FOR THE VICTIMS OF TORTURE.] For the 
 93.13  center for victims of torture to hire a full-time psychologist 
 93.14  to address behavioral problems exhibited by students in the 
 93.15  public schools who are survivors of war traumas: 
 93.16       $60,000     .....     1998
 93.17       $60,000     .....     1999
 93.18     Subd. 32.  [ADOLESCENT PARENT PROGRAM GRANTS.] For 
 93.19  adolescent parent program grants: 
 93.20       $500,000     .....     1998
 93.21     Up to 2-1/2 percent of the appropriation may be used for 
 93.22  evaluation of the programs. 
 93.23     Any balance in the first year does not cancel but is 
 93.24  available in the second year. 
 93.25     Subd. 33.  [LEARN AND EARN GRADUATION ACHIEVEMENT PROGRAM.] 
 93.26  For the learn and earn graduation achievement program according 
 93.27  to Minnesota Statutes, section 126.79: 
 93.28       $1,000,000     .....     1998
 93.29       $1,000,000     .....     1999
 93.30     Any balance in the first year does not cancel but is 
 93.31  available in the second year. 
 93.32     Subd. 34.  [ONE ROOM SCHOOLHOUSE.] For a grant to 
 93.33  independent school district No. 690, Warroad, to operate the 
 93.34  Angle Inlet School: 
 93.35       $25,000     .....     1998
 93.36       $25,000     .....     1999
 94.1      Subd. 35.  [SPECIAL PROGRAM; FETAL ALCOHOL SYNDROME.] The 
 94.2   sum indicated in this subdivision is appropriated from the 
 94.3   general fund to the commissioner of health for the fiscal year 
 94.4   designated.  To prevent and reduce harm from fetal alcohol 
 94.5   syndrome and fetal alcohol effect: 
 94.6        $500,000       .....     1998 
 94.7      This amount is added to the appropriation for the same 
 94.8   purpose in Laws 1997, chapter 203, article 1, section 3, 
 94.9   subdivision 2.  
 94.10     This appropriation is available until June 30, 1999. 
 94.11     Sec. 52.  [REPEALER.] 
 94.12     Subdivision 1.  [JULY 1, 1996.] Minnesota Statutes 1996, 
 94.13  section 124.3201, subdivisions 2a and 2b, are retroactively 
 94.14  repealed effective July 1, 1996. 
 94.15     Subd. 2.  [JUNE 1, 1997.] Minnesota Statutes 1996, section 
 94.16  124.17, subdivision 5, is retroactively repealed effective June 
 94.17  1, 1997. 
 94.18     Sec. 53.  [EFFECTIVE DATE.] 
 94.19     (a) Sections 4, 23, and 24 are effective for fiscal year 
 94.20  1999. 
 94.21     (b) Sections 6, 7, 21, and 25 are effective retroactively 
 94.22  to July 1, 1996.  
 94.23     (c) Sections 32 and 36 are effective for the 1997-1998 
 94.24  school year and thereafter.  
 94.25     (d) If this act is enacted on or after July 1, 1997, all 
 94.26  sections in this article except for those sections listed in 
 94.27  paragraphs (a) to (c) are effective the day following final 
 94.28  enactment. 
 94.29                             ARTICLE 3 
 94.30                        LIFEWORK DEVELOPMENT 
 94.31     Section 1.  [121.498] [MINNESOTA CAREER INFORMATION 
 94.32  SYSTEM.] 
 94.33     (a) The department of children, families, and learning, 
 94.34  through the Minnesota career information system (MCIS), may 
 94.35  provide career information to, including, but not limited to, 
 94.36  school districts and other educational organizations, employment 
 95.1   and training services, human service agencies, libraries, and 
 95.2   families.  The department shall collect fees necessary to 
 95.3   recover all expenditures related to the operation of the 
 95.4   Minnesota career information system. 
 95.5      (b) Grants and other legislative funds may be accepted and 
 95.6   used for the improvement or operation of the Minnesota career 
 95.7   information system.  All receipts shall be deposited in a 
 95.8   special account in the special revenue fund that shall be 
 95.9   carried over at the end of each fiscal year.  The money in the 
 95.10  account, along with any interest earned, is appropriated to the 
 95.11  commissioner of children, families, and learning for the 
 95.12  Minnesota career information system and must be for the sole use 
 95.13  and benefit of the system.  The department shall recognize that 
 95.14  the Minnesota career information system operates under a 
 95.15  self-supporting directive, and accordingly, must provide 
 95.16  sufficient administrative latitude within the confines of law to 
 95.17  enable the system to operate effectively. 
 95.18     Sec. 2.  Minnesota Statutes 1996, section 121.615, 
 95.19  subdivision 2, is amended to read: 
 95.20     Subd. 2.  [CREATION OF FOUNDATION.] There is created the 
 95.21  Minnesota school-to-work student organization foundation.  The 
 95.22  purpose of the foundation shall be to promote vocational student 
 95.23  organizations and applied leadership opportunities in Minnesota 
 95.24  public and nonpublic schools through public-private 
 95.25  partnerships.  The foundation shall be a nonprofit 
 95.26  organization.  The board of directors of the foundation and 
 95.27  activities of the foundation are under the direction of 
 95.28  the department of children, families, and learning state board 
 95.29  of education.  
 95.30     Sec. 3.  Minnesota Statutes 1996, section 121.615, 
 95.31  subdivision 3, is amended to read: 
 95.32     Subd. 3.  [BOARD OF DIRECTORS.] The board of directors of 
 95.33  the school-to-work student organization foundation shall consist 
 95.34  of: 
 95.35     (1) chairs or designees from the board of directors of FFA 
 95.36  (formerly Future Farmers of America), Future Leaders of 
 96.1   America/Future Homemakers of America, post-secondary agriculture 
 96.2   students, home economics related occupations, Health Occupations 
 96.3   Student Association, Distributive Education Clubs of America, 
 96.4   Delta Upsilon Chi, Secondary Vocational Industrial Clubs of 
 96.5   America, Post-secondary Vocational Industrial Clubs of America, 
 96.6   Secondary Business Professionals of America, and Post-secondary 
 96.7   Business Professionals of America; 
 96.8      (2) four members from business and industry appointed by 
 96.9   the governor; and 
 96.10     (3) five students representing diverse vocational areas, 
 96.11  three of whom are appointed by the commissioner of the 
 96.12  department of children, families, and learning and two of whom 
 96.13  are appointed by the chancellor of the Minnesota state colleges 
 96.14  and universities with the advice of the executive councils of 
 96.15  each vocational education student organization. 
 96.16     (1) seven members appointed by the board of directors of 
 96.17  the school-to-work student organizations and chosen so that each 
 96.18  represents one of the following career areas:  agriculture, 
 96.19  family and consumer sciences, service occupations, health 
 96.20  occupations, marketing, business, and technical/industrial; 
 96.21     (2) seven members from business, industry, and labor 
 96.22  appointed by the governor to staggered terms and chosen so that 
 96.23  each represents one of the following career areas:  agriculture, 
 96.24  family and consumer sciences, service occupations, health 
 96.25  occupations, marketing, business, and technical/industrial; 
 96.26     (3) five students or alumni of school-to-work student 
 96.27  organizations representing diverse career areas, three from 
 96.28  secondary student organizations, and two from post-secondary 
 96.29  student organizations.  The students or alumni shall be 
 96.30  appointed by the criteria and process agreed upon by the 
 96.31  executive directors of the student-to-work organizations; and 
 96.32     (4) four members from education appointed by the governor 
 96.33  to staggered terms and chosen so that each represents one of the 
 96.34  following groups:  school district level administrators, 
 96.35  secondary school administrators, middle school administrators, 
 96.36  and post-secondary administrators. 
 97.1      Executive directors of vocational education student 
 97.2   organizations are ex officio, nonvoting members of the board. 
 97.3      Sec. 4.  Minnesota Statutes 1996, section 121.615, 
 97.4   subdivision 5, is amended to read: 
 97.5      Subd. 5.  [POWERS AND DUTIES.] The foundation may: 
 97.6      (1) identify and plan common goals and priorities for the 
 97.7   various school-to-work student organizations in Minnesota; 
 97.8      (2) publish brochures or booklets relating to the purposes 
 97.9   of the foundation and collect reasonable fees for the 
 97.10  publications; 
 97.11     (3) seek and receive public and private money, grants, and 
 97.12  in-kind services and goods from nonstate sources for the 
 97.13  purposes of the foundation, without complying with section 7.09, 
 97.14  subdivision 1; 
 97.15     (4) contract with consultants on behalf of the 
 97.16  school-to-work student organizations; and 
 97.17     (5) plan, implement, and expend money for awards and other 
 97.18  forms of recognition for school-to-work student activities 
 97.19  programs; and 
 97.20     (6) identifying an appropriate name for the foundation. 
 97.21     Sec. 5.  Minnesota Statutes 1996, section 121.615, 
 97.22  subdivision 6, is amended to read: 
 97.23     Subd. 6.  [CONTRACTS.] The foundation board of directors 
 97.24  shall review and approve foundation personnel and programming 
 97.25  contracts each contract of the board.  Each contract of the 
 97.26  foundation board shall be subject to the same review and 
 97.27  approval procedures as a contract of the state board of 
 97.28  education. 
 97.29     Sec. 6.  Minnesota Statutes 1996, section 121.615, 
 97.30  subdivision 7, is amended to read: 
 97.31     Subd. 7.  [FOUNDATION STAFF.] The commissioner of the 
 97.32  department of children, families, and learning state board of 
 97.33  education shall appoint the executive director of the foundation 
 97.34  from three candidates nominated and submitted by the foundation 
 97.35  board of directors and, as necessary, other staff who shall 
 97.36  perform duties and have responsibilities solely related to the 
 98.1   foundation.  The employees appointed are not state employees 
 98.2   under chapter 43A, but are covered under section 3.736.  The 
 98.3   employees may participate in the state health and state 
 98.4   insurance plans for employees in unclassified service.  The 
 98.5   employees shall be supervised by the executive director. 
 98.6      The commissioner shall appoint from the office of lifework 
 98.7   development a liaison to the foundation board. 
 98.8      Sec. 7.  Minnesota Statutes 1996, section 121.615, 
 98.9   subdivision 8, is amended to read: 
 98.10     Subd. 8.  [PUBLIC FUNDING.] The commissioner of the 
 98.11  department of children, families, and learning state shall 
 98.12  identify and secure appropriate sources of state and federal 
 98.13  funding from various state agencies, including, but not limited 
 98.14  to, Minnesota state colleges and universities, for the operation 
 98.15  and development of basic staffing of the foundation and 
 98.16  individual student school-to-work student organizations at the 
 98.17  state level. 
 98.18     Sec. 8.  Minnesota Statutes 1996, section 121.615, 
 98.19  subdivision 9, is amended to read: 
 98.20     Subd. 9.  [PRIVATE FUNDING.] The foundation shall seek 
 98.21  private resources to supplement the allocated state and 
 98.22  federal available public money.  Individuals, businesses, and 
 98.23  other organizations may contribute to the foundation in any 
 98.24  manner specified by the board of directors.  All money received 
 98.25  shall be administered by the board of directors. 
 98.26     Sec. 9.  Minnesota Statutes 1996, section 121.615, 
 98.27  subdivision 10, is amended to read: 
 98.28     Subd. 10.  [REPORT.] The board of directors of the 
 98.29  foundation shall submit an annual report and assessment to the 
 98.30  office of lifework development and on the progress of its 
 98.31  activities to the state board of education and to the board of 
 98.32  trustees of the Minnesota state colleges and universities.  The 
 98.33  annual report shall contain a financial report for the preceding 
 98.34  year.  The foundation shall submit a biennium report to the 
 98.35  legislature before February 15, in the odd-numbered year. 
 98.36     Sec. 10.  Minnesota Statutes 1996, section 121.703, 
 99.1   subdivision 3, is amended to read: 
 99.2      Subd. 3.  [DUTIES.] (a) The commission shall: 
 99.3      (1) develop, with the assistance of the governor, the 
 99.4   commissioner of children, families, and learning, and affected 
 99.5   state agencies, a comprehensive state plan to provide services 
 99.6   under sections 121.701 to 121.710 and federal law; 
 99.7      (2) actively pursue public and private funding sources for 
 99.8   services, including funding available under federal law; 
 99.9      (3) coordinate volunteer service-learning programs within 
 99.10  the state; 
 99.11     (4) develop, in cooperation with the workforce development 
 99.12  council and the commissioner of children, families, and 
 99.13  learning, volunteer service-learning programs, including 
 99.14  curriculum, materials, and methods of instruction; 
 99.15     (5) work collaboratively with the workforce development 
 99.16  council, the commissioner of children, families, and learning, 
 99.17  schools, public and private agencies, for-profit and nonprofit 
 99.18  employers, and labor unions to identify mentoring and 
 99.19  service-learning opportunities, solicit and recruit participants 
 99.20  for these programs, and disseminate information on the programs; 
 99.21     (6) administer the youth works grant program under sections 
 99.22  121.704 to 121.709, with assistance from the commissioner of 
 99.23  children, families, and learning and the executive director of 
 99.24  the higher education services office, including soliciting and 
 99.25  approving grant applications from eligible organizations, and 
 99.26  administering individual postservice benefits; 
 99.27     (7) establish an evaluation plan for programs developed and 
 99.28  services provided under sections 121.701 to 121.710; 
 99.29     (8) report to the governor, commissioner of children, 
 99.30  families, and learning, and legislature; 
 99.31     (9) provide oversight and support for school, campus, and 
 99.32  community-based service programs; and 
 99.33     (10) administer the federal AmeriCorps program. 
 99.34     (b) Nothing in sections 121.701 to 121.710 precludes an 
 99.35  organization from independently seeking public or private 
 99.36  funding to accomplish purposes similar to those described in 
100.1   paragraph (a). 
100.2      (c) The commissioner of children, families, and learning 
100.3   shall consult with commission members before the commissioner 
100.4   selects the executive director for the commission, who shall 
100.5   serve in the unclassified service. 
100.6      Sec. 11.  Minnesota Statutes 1996, section 124.193, is 
100.7   amended to read: 
100.8      124.193 [PROHIBITED AID AND LEVIES.] 
100.9      Subdivision 1.  [GENERAL PROHIBITION.] Unless specifically 
100.10  permitted in the provision authorizing an aid or a levy, 
100.11  cooperative units of government defined in section 123.35, 
100.12  subdivision 19b, paragraph (d), are prohibited from making a 
100.13  property tax levy or qualifying for or receiving any form of 
100.14  state aid except that a cooperative unit may apply for and 
100.15  receive a grant on behalf of its members as provided in 
100.16  subdivisions 2 and 3. 
100.17     Subd. 2.  [GRANTS.] A cooperative unit may apply for and 
100.18  receive a grant on behalf of its members. 
100.19     Subd. 3.  [ALLOCATION FROM MEMBERS.] By July 15 of each 
100.20  year, a school district may, by board resolution, request the 
100.21  department to make a payment to a third party.  The total sum of 
100.22  the payments for the year may not exceed the lesser of (a) the 
100.23  district's general education aid for the fiscal year beginning 
100.24  July 1, according to sections 124A.036, subdivision 5, and 
100.25  124A.23, subdivision 4, or (b) an amount equal to $100 times the 
100.26  fund balance pupil units for the fiscal year beginning July 1.  
100.27  By July 30 of each year, the school district must report to the 
100.28  commissioner the amount allocated.  The amount shall be paid to 
100.29  the third party according to section 124.195, subdivision 15.  
100.30  Amounts paid to third parties under this subdivision shall be 
100.31  recognized and reported as revenues and expenditures on the 
100.32  school district's books of account under sections 121.904 and 
100.33  121.906. 
100.34     Sec. 12.  Minnesota Statutes 1996, section 124.195, is 
100.35  amended by adding a subdivision to read: 
100.36     Subd. 15.  [PAYMENTS TO THIRD PARTIES.] Notwithstanding 
101.1   subdivision 3, 90 percent of the amounts under section 124.193, 
101.2   subdivision 3, shall be paid in equal installments on August 30, 
101.3   December 30, and March 30, with a ten percent final adjustment 
101.4   payment on October 30 of the next fiscal year. 
101.5      Sec. 13.  Minnesota Statutes 1996, section 124.574, 
101.6   subdivision 1, is amended to read: 
101.7      Subdivision 1.  The purpose of this section is to provide a 
101.8   method to fund programs for secondary vocational 
101.9   education school-to-work programs for children with a 
101.10  disability.  As used in this section, the term "children with a 
101.11  disability" shall have the meaning ascribed to it in section 
101.12  120.03. 
101.13     Sec. 14.  Minnesota Statutes 1996, section 124.574, 
101.14  subdivision 5, is amended to read: 
101.15     Subd. 5.  The aid provided pursuant to this section shall 
101.16  be paid only for services rendered as designated in subdivision 
101.17  2 or for the costs designated in subdivision 3 which are 
101.18  incurred in secondary vocational education programs 
101.19  school-to-work programs for children with a disability which are 
101.20  approved by the commissioner of children, families, and learning 
101.21  and operated in accordance with rules promulgated by the state 
101.22  board.  These rules shall be subject to the restrictions 
101.23  provided in section 124.573, subdivision 3.  The procedure for 
101.24  application for approval of these programs shall be as provided 
101.25  in section 124.32, subdivisions 7 and 10, and the application 
101.26  review process shall be conducted by the vocational education 
101.27  section of the state office of lifework development in the 
101.28  department. 
101.29     Sec. 15.  Minnesota Statutes 1996, section 124.574, 
101.30  subdivision 6, is amended to read: 
101.31     Subd. 6.  All aid pursuant to this section shall be paid to 
101.32  the district or cooperative center providing the services.  All 
101.33  aid received by a district or center from any source for 
101.34  secondary vocational education school-to-work programs for 
101.35  children with a disability shall be utilized solely for that 
101.36  purpose. 
102.1      Sec. 16.  Minnesota Statutes 1996, section 124.574, 
102.2   subdivision 9, is amended to read: 
102.3      Subd. 9.  [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 
102.4   INTERMEDIATE DISTRICTS.] For purposes of this section and 
102.5   section 124.321, a cooperative center or an intermediate 
102.6   district shall allocate its approved expenditures for secondary 
102.7   vocational programs school-to-work programs for children with a 
102.8   disability among participating school districts.  Aid for 
102.9   secondary vocational programs school-to-work programs for 
102.10  children with a disability for services provided by a 
102.11  cooperative or intermediate district shall be paid to the 
102.12  participating school districts. 
102.13     Sec. 17.  Minnesota Statutes 1996, section 124C.46, 
102.14  subdivision 1, is amended to read: 
102.15     Subdivision 1.  [PROGRAM FOCUS.] The programs and services 
102.16  of a center must focus on academic and learning skills, applied 
102.17  learning opportunities, trade and vocational skills, work-based 
102.18  learning opportunities, work experience, youth service to the 
102.19  community, and transition services.  Applied learning, 
102.20  work-based learning, and service learning may best be developed 
102.21  in collaboration with a local education and transitions 
102.22  partnership.  In addition to offering programs, the center shall 
102.23  coordinate the use of other available educational services, 
102.24  social services, health services, and post-secondary 
102.25  institutions in the community and services area.  
102.26     Sec. 18.  [126.685] [LIFEWORK DEVELOPMENT PLAN.] 
102.27     A school district may require students to develop and 
102.28  maintain a record of all students' lifework development 
102.29  activities and work toward achieving the profile of learning.  
102.30  This record includes, but is not limited to, student's goals, 
102.31  skills, abilities, and interests, as well as information on 
102.32  service learning experiences, out-of-school learning 
102.33  experiences, and career-related experiences, such as job 
102.34  shadowing, career mentoring, internships, apprenticeships, 
102.35  entrepreneurship, and other work-based learning activities that 
102.36  may be used to fulfill the profile of learning.  The ongoing 
103.1   record assists students in choosing their school-based courses, 
103.2   researching and exploring career options, and realizing their 
103.3   role as citizens and their goals as lifelong learners.  Each 
103.4   school year, the student, the student's parent or guardian, 
103.5   school and career counselors, and other appropriately trained 
103.6   school personnel shall review the student's plan to ensure that 
103.7   the plan is updated and reflects the student's changing life 
103.8   goals and aspirations.  The plan serves as a continuous record 
103.9   of future education and training options necessary to achieve 
103.10  the student's lifework goal. 
103.11     Sec. 19.  Minnesota Statutes 1996, section 268.665, 
103.12  subdivision 2, is amended to read: 
103.13     Subd. 2.  [MEMBERSHIP.] The governor's workforce 
103.14  development council is composed of 32 33 members appointed by 
103.15  the governor.  The members may be removed pursuant to section 
103.16  15.059.  In selecting the representatives of the council, the 
103.17  governor shall ensure that 50 percent of the members come from 
103.18  nominations provided by local workforce councils.  Local 
103.19  education representatives shall come from nominations provided 
103.20  by local education to employment partnerships.  The 32 members 
103.21  shall represent the following sectors:  
103.22     (a) State agencies:  the following individuals shall serve 
103.23  on the council:  
103.24     (1) commissioner of the Minnesota department of economic 
103.25  security; 
103.26     (2) commissioner of the Minnesota department of children, 
103.27  families, and learning; 
103.28     (3) commissioner of the Minnesota department of human 
103.29  services; and 
103.30     (4) commissioner of the Minnesota department of trade and 
103.31  economic development. 
103.32     (b) Business and industry:  six individuals shall represent 
103.33  the business and industry sectors of Minnesota. 
103.34     (c) Organized labor:  six individuals shall represent labor 
103.35  organizations of Minnesota. 
103.36     (d) Community-based organizations:  four individuals shall 
104.1   represent community-based organizations of Minnesota.  
104.2   Community-based organizations are defined by the Job Training 
104.3   Partnership Act as private nonprofit organizations that are 
104.4   representative of communities or significant segments of 
104.5   communities and that provide job training services, agencies 
104.6   serving youth, agencies serving individuals with disabilities, 
104.7   agencies serving displaced homemakers, union-related 
104.8   organizations, and employer-related nonprofit organizations and 
104.9   organizations serving nonreservation Indians and tribal 
104.10  governments. 
104.11     (e) Education:  five six individuals shall represent the 
104.12  education sector of Minnesota as follows:  
104.13     (1) one individual shall represent local public secondary 
104.14  education; 
104.15     (2) one individual shall have expertise in design and 
104.16  implementation of school-based service-learning; 
104.17     (3) one individual shall represent post-secondary 
104.18  education; 
104.19     (4) one individual shall represent secondary/post-secondary 
104.20  vocational institutions; and 
104.21     (5) the chancellor of the board of trustees of the 
104.22  Minnesota state colleges and universities; and 
104.23     (6) one individual shall have expertise in agricultural 
104.24  education. 
104.25     (f) Other:  two individuals shall represent other 
104.26  constituencies including: 
104.27     (1) units of local government; and 
104.28     (2) applicable state or local programs. 
104.29     The speaker and the minority leader of the house of 
104.30  representatives shall each appoint a representative to serve as 
104.31  an ex officio member of the council.  The majority and minority 
104.32  leaders of the senate shall each appoint a senator to serve as 
104.33  an ex officio member of the council.  After January 1, 1997, the 
104.34  Minnesota director of the corporation for national service shall 
104.35  also serve as an ex officio member.  
104.36     (g) Appointment:  each member shall be appointed for a term 
105.1   of three years from the first day of January or July immediately 
105.2   following their appointment.  Elected officials shall forfeit 
105.3   their appointment if they cease to serve in elected office.  
105.4      (h) Members of the council are compensated as provided in 
105.5   section 15.059, subdivision 3. 
105.6      Sec. 20.  Laws 1993, chapter 146, article 5, section 20, is 
105.7   amended to read: 
105.8      Sec. 20.  [REPEALER.] 
105.9      Sections 6 to 12 are repealed June 30, 1998 2001. 
105.10     Sec. 21.  [DAWSON-BOYD ADULT FARM MANAGEMENT LEVY.] 
105.11     In addition to other levies, independent school district 
105.12  No. 378, Dawson-Boyd, may levy an amount up to $132,000 for the 
105.13  unreimbursed costs of an adult farm management program.  This 
105.14  amount may be levied over a period of three years. 
105.15     Sec. 22.  [SOUTHWEST STAR CONCEPT SCHOOL.] 
105.16     Subdivision 1.  [PILOT PROJECT.] The Southwest Star Concept 
105.17  School pilot project is created.  The purpose of the project is 
105.18  to serve as a model for the state of Minnesota demonstrating the 
105.19  capability of a small school district to provide a curriculum 
105.20  focusing on applied learning and teaching methodology allowing 
105.21  students to reach high levels of performance on the state 
105.22  graduation standards. 
105.23     Subd. 2.  [ACTIVITIES.] The school board of independent 
105.24  school district No. 330, Heron Lake-Okabena, must develop the 
105.25  Southwest Star Concept School, including its academic framework, 
105.26  goals, and delivery system in consultation with community 
105.27  members, teachers, and parents. 
105.28     Subd. 3.  [REPORT.] Independent school district No. 330, 
105.29  Heron Lake-Okabena, shall conduct an ongoing study of the pilot 
105.30  project.  The ongoing study shall evaluate and compare outcomes 
105.31  and student performance to other similarly situated school 
105.32  districts and measure changes in outcomes and student 
105.33  performance within the school over time.  The school district 
105.34  shall annually report its results to the legislature by February 
105.35  15 of each year.  A final report must be issued by February 15, 
105.36  2002. 
106.1      Sec. 23.  [MODEL LIFEWORK LEARNING SITES.] 
106.2      Subdivision 1.  [PURPOSE.] Lifework learning sites are 
106.3   established to develop and model practices of lifework learning. 
106.4   Lifework learning includes vocational education, preparation for 
106.5   work, family and community responsibilities, and lifelong 
106.6   learning. 
106.7      Subd. 2.  [DEFINITION; ELIGIBILITY.] A "lifework learning 
106.8   site" means a site that focuses on lifework learning and models 
106.9   school-to-work practices.  A lifework learning site may include, 
106.10  but is not limited to, a site that is: 
106.11     (1) a public school, including a charter school, an 
106.12  alternative program, or a post-secondary institution; 
106.13     (2) located in or connected to a school; or 
106.14     (3) colocated with an education, commercial, government, or 
106.15  community enterprise. 
106.16     Subd. 3.  [DESIGNATION.] To be designated a "lifework 
106.17  learning site," a site must: 
106.18     (1) develop, implement, and model practices and techniques 
106.19  consistent with lifework learning and school-to-work performance 
106.20  indicators; 
106.21     (2) train school and nonschool staff on lifework learning 
106.22  and school-to-work practices and methodologies; 
106.23     (3) provide real world, school-based, work-based, and 
106.24  service-based learning experiences, integrated with academic 
106.25  studies that meet Minnesota's graduation standards; 
106.26     (4) assess and evaluate lifework learning and 
106.27  school-to-work practices; and 
106.28     (5) disseminate materials and information about lifework 
106.29  learning site activities using the state's information 
106.30  clearinghouse on lifework learning and school-to-work. 
106.31     Subd. 4.  [APPLICATION.] (a) A lifework learning site 
106.32  applicant must be a partner in a local/regional school-to-work 
106.33  partnership.  To be designated a lifework learning site and 
106.34  eligible for a grant, the applicant must submit an application 
106.35  to the governor's workforce council in the form and manner the 
106.36  council prescribes. 
107.1      (b) With the advice and recommendation of the vocational 
107.2   high school planning committee appointed under Laws 1995, First 
107.3   Special Session chapter 3, article 3, section 12, the council 
107.4   must select lifework learning sites that: 
107.5      (1) are committed to lifework learning and school-to-work 
107.6   practices and methodologies; 
107.7      (2) are capable and willing to work with the local/regional 
107.8   school-to-work partnership, and make resources available for the 
107.9   ongoing function of the site; 
107.10     (3) implement reaching and learning strategies that support 
107.11  the graduation standards and innovative teaching and learning 
107.12  practices; 
107.13     (4) develop and provide ongoing training for school and 
107.14  nonschool partners; 
107.15     (5) use existing education, commercial, government, or 
107.16  community facilities; 
107.17     (6) demonstrate how the lifework learning site will serve 
107.18  all kindergarten through grade 12 students within the community; 
107.19  and 
107.20     (7) demonstrate a long-term financial plan to sustain the 
107.21  lifework learning site. 
107.22     Subd. 5.  [START-UP GRANT AWARDS,] In order for the site to 
107.23  receive a start-up grant, the site must match the grant amount 
107.24  with an equal amount of funding or in-kind contributions from 
107.25  federal, local, or private sources.  The grant award shall not 
107.26  exceed $200,000 for a site.  The site shall use the grant for 
107.27  the start-up costs of the lifework learning site. 
107.28     Subd. 6.  [REPORT.] A grant recipient shall report annually 
107.29  for three years to the commissioner of children, families, and 
107.30  learning on implementation of the lifework learning site and the 
107.31  site's ability to deliver model school-to-work instruction and 
107.32  learning. 
107.33     Sec. 24.  [THIRD-PARTY PAYMENTS.] 
107.34     For fiscal year 1998 only, the department to make a 
107.35  third-party payment under section 12 at a school board's request 
107.36  if that request is made within 60 days of the effective date of 
108.1   this section. 
108.2      Sec. 25.  [APPROPRIATIONS.] 
108.3      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
108.4   LEARNING.] The sums indicated in this section are appropriated 
108.5   from the general fund to the department of children, families, 
108.6   and learning for the fiscal years designated. 
108.7      Subd. 2.  [SECONDARY VOCATIONAL EDUCATION AID.] For 
108.8   secondary vocational education aid according to Minnesota 
108.9   Statutes, section 124.573: 
108.10       $11,617,000     .....     1998 
108.11       $11,596,000     .....     1999 
108.12     The 1998 appropriation includes $1,180,000 for 1997 and 
108.13  $10,437,000 for 1998.  
108.14     The 1999 appropriation includes $1,159,000 for 1998 and 
108.15  $10,437,000 for 1999.  
108.16     Subd. 3.  [YOUTHWORKS PROGRAM.] For funding youthworks 
108.17  programs according to Minnesota Statutes, sections 121.701 to 
108.18  121.710: 
108.19       $1,838,000     .....     1998 
108.20       $1,838,000     .....     1999 
108.21     The commissioner may allocate up to $50,000 of the 
108.22  appropriation for the cost of administering the program. 
108.23     A grantee organization may provide health and child care 
108.24  coverage to the dependents of each participant enrolled in a 
108.25  full-time youth works program to the extent such coverage is not 
108.26  otherwise available. 
108.27     Any balance in the first year does not cancel but is 
108.28  available in the second year. 
108.29     Subd. 4.  [EDUCATION AND EMPLOYMENT TRANSITIONS PROGRAM 
108.30  GRANTS.] For education and employment transitions program: 
108.31       $4,750,000      .....      1998
108.32       $4,750,000      .....      1999 
108.33     $500,000 each year is for development of MnCEPs, an 
108.34  Internet-based education and employment information system.  
108.35  These are one-time funds. 
108.36     $1,225,000 in fiscal year 1998 and $1,250,000 in fiscal 
109.1   year 1999 is for a rebate program for qualifying employers who 
109.2   employ less than 250 employees, who offer youth internships to 
109.3   educators.  An employer may apply for a rebate of up to $500 for 
109.4   each paid youth internship and each educator internship, and up 
109.5   to $3,000 for each paid youth apprenticeship.  The commissioner 
109.6   shall determine the application and payment process. 
109.7      $450,000 each year is for youth apprenticeship program 
109.8   grants. 
109.9      $225,000 each year is for youth entrepreneurship grants 
109.10  under Minnesota Statutes, section 121.72.  Of this amount, 
109.11  $25,000 each year is for the high school student 
109.12  entrepreneurship program in independent school district No. 175, 
109.13  Westbrook.  This appropriation shall be used for expenses, 
109.14  including, but not limited to, salaries, travel, seminars, 
109.15  equipment purchases, contractual expenses, and other expenses 
109.16  related to the student-run business. 
109.17     $125,000 each year is for youth employer grants under Laws 
109.18  1995, First Special Session chapter 3, article 4, section 28. 
109.19     $150,000 each year is for parent and community awareness 
109.20  training. 
109.21     $825,000 each year is for the development of career 
109.22  assessment benchmarks, lifework portfolios, industry skill 
109.23  standards, curriculum development, career academies, and career 
109.24  programs for elementary, middle school, and at-risk learners. 
109.25     $400,000 each year is for state level activities, including 
109.26  the governor's workforce council. 
109.27     $275,000 each year is for development of occupational 
109.28  information. 
109.29     $300,000 each year is for a grant to be made available to a 
109.30  county government that has established school-to-work projects 
109.31  with schools located in a city of the first class.  These grants 
109.32  must be used to expand the number of at-risk students 
109.33  participating in these school-to-work projects.  Priority must 
109.34  be given to projects that demonstrate collaboration between 
109.35  private employers, collective bargaining representatives, school 
109.36  officials, and the county government and which prepare at-risk 
110.1   students for long-term employment with private sector employers 
110.2   paying a minimum of 150 percent of the federal poverty level for 
110.3   a family of four and with the majority of their employees in 
110.4   collective bargaining units. 
110.5      $250,000 each year is for agricultural school-to-work 
110.6   grants. 
110.7      $25,000 is for a grant to the Minnesota Historical Society 
110.8   for money canceled in fiscal year 1997. 
110.9      Subd. 5.  [MINNESOTA SCHOOL-TO-WORK STUDENT ORGANIZATION 
110.10  FOUNDATION.] For the Minnesota school-to-work student 
110.11  organization foundation under Minnesota Statutes, section 
110.12  121.615: 
110.13       $375,000       .....     1998 
110.14       $375,000       .....     1999 
110.15     This appropriation is available until June 30, 1999. 
110.16     Subd. 6.  [SOUTHWEST STAR CONCEPT SCHOOL.] For a grant to 
110.17  independent school district No. 330, Heron Lake-Okabena, to 
110.18  establish the Southwest Star Concept School: 
110.19       $193,000     .....     1998
110.20     This appropriation may be used for equipment, activities 
110.21  beyond the classroom walls, professional planning assistance, 
110.22  monitoring, evaluating, and reporting activities related to the 
110.23  case study prepared in section 22. 
110.24     Subd. 7.  [WORKSTUDY STUDENT COMPENSATION.] For enabling 
110.25  school districts to pay the employer's share of work study 
110.26  students compensation under Minnesota Statutes, section 
110.27  136A.233, subdivision 3: 
110.28       $50,000        .....     1998 
110.29       $50,000        .....     1999 
110.30     Money shall be available to districts upon request until 
110.31  the appropriation is exhausted.  The commissioner may establish 
110.32  an application procedure for allocating the money to districts. 
110.33     Subd. 8.  [LIFEWORK LEARNING SITES.] For lifework learning 
110.34  sites according to section 23: 
110.35       $500,000     .....     1998
110.36       $500,000     .....     1999
111.1      Of this amount, $150,000 shall be awarded for a start-up 
111.2   grant to the Mid-State education district No. 6979 for a job 
111.3   shadowing program and internships at Camp Ripley.  
111.4      Any balance remaining in the first year does not cancel but 
111.5   is available in the second year.  
111.6      Sec. 26.  [EFFECTIVE DATE.] 
111.7      (a) Sections 11 and 12 are effective for revenue for fiscal 
111.8   years 1998 and later. 
111.9      (b) If this act is enacted on or after July 1, 1997, all 
111.10  sections in this article except for those sections listed in 
111.11  paragraph (a) are effective the day following final enactment. 
111.12                             ARTICLE 4 
111.13        EDUCATION ORGANIZATION, COOPERATION, AND FACILITIES 
111.14     Section 1.  Minnesota Statutes 1996, section 120.0621, 
111.15  subdivision 5a, is amended to read: 
111.16     Subd. 5a.  [TUITION PAYMENTS.] In each odd-numbered year, 
111.17  before March 1, the state board of education commissioner shall 
111.18  agree to rates of tuition for Minnesota elementary and secondary 
111.19  pupils attending in other states for the next two fiscal 
111.20  years when the other state agrees to negotiate tuition rates.  
111.21  The board commissioner shall negotiate equal, reciprocal rates 
111.22  with the designated authority in each state for pupils who 
111.23  reside in an adjoining state and enroll in a Minnesota school 
111.24  district.  The rates must be at least equal to the tuition 
111.25  specified in section 120.08, subdivision 1.  If the other state 
111.26  does not agree to negotiate a general tuition rate, a Minnesota 
111.27  school district may negotiate a tuition rate with the school 
111.28  district in the other state that sends a pupil to or receives a 
111.29  pupil from the Minnesota school district.  The tuition rate for 
111.30  a pupil with a disability must be equal to the actual cost of 
111.31  instruction and services provided.  The resident district of a 
111.32  Minnesota pupil attending in another state under this section 
111.33  must pay the amount of tuition agreed upon in this section to 
111.34  the district of attendance, prorated on the basis of the 
111.35  proportion of the school year attended. 
111.36     Sec. 2.  Minnesota Statutes 1996, section 120.0621, 
112.1   subdivision 6, is amended to read: 
112.2      Subd. 6.  [EFFECTIVE IF RECIPROCAL.] This section is 
112.3   effective with respect to South Dakota upon enactment of 
112.4   provisions by South Dakota that the commissioner determines are 
112.5   essentially similar to the provisions for Minnesota pupils in 
112.6   this section.  After July 1, 1993, this section is effective 
112.7   with respect to any other bordering state upon enactment of 
112.8   provisions by the bordering state that the commissioner 
112.9   determines are essentially similar to the provisions for 
112.10  Minnesota pupils in this section. 
112.11     Sec. 3.  Minnesota Statutes 1996, section 120.0621, is 
112.12  amended by adding a subdivision to read: 
112.13     Subd. 7.  [APPEAL TO THE COMMISSIONER.] If a Minnesota 
112.14  school district cannot agree with an adjoining state on a 
112.15  tuition rate for a Minnesota student attending school in that 
112.16  state and that state has met the requirements in subdivision 6, 
112.17  then the student's parent or guardian may request that the 
112.18  commissioner agree on a tuition rate for the student.  The 
112.19  Minnesota school district must pay the amount of tuition the 
112.20  commissioner agrees upon. 
112.21     Sec. 4.  Minnesota Statutes 1996, section 121.15, is 
112.22  amended by adding a subdivision to read: 
112.23     Subd. 1a.  [INDOOR AIR QUALITY RESOURCES; COMMISSIONER'S 
112.24  ROLE.] As part of the consultation under subdivision 1, the 
112.25  commissioner shall provide each school district with information 
112.26  concerning indoor air quality. 
112.27     Sec. 5.  Minnesota Statutes 1996, section 121.15, 
112.28  subdivision 6, is amended to read: 
112.29     Subd. 6.  [REVIEW AND COMMENT.] A school district, a 
112.30  special education cooperative, or a cooperative unit of 
112.31  government, as defined in section 123.35, subdivision 19b, 
112.32  paragraph (d), must not initiate an installment contract for 
112.33  purchase or a lease agreement, hold a referendum for bonds, nor 
112.34  solicit bids for new construction, expansion, or remodeling of 
112.35  an educational facility that requires an expenditure in excess 
112.36  of $400,000 per school site prior to review and comment by the 
113.1   commissioner.  A school board shall not separate portions of a 
113.2   single project into components to avoid the requirements of this 
113.3   subdivision.  
113.4      Sec. 6.  Minnesota Statutes 1996, section 121.15, 
113.5   subdivision 7, is amended to read: 
113.6      Subd. 7.  [INFORMATION REQUIRED.] A school board proposing 
113.7   to construct a facility described in subdivision 6 shall submit 
113.8   to the commissioner a proposal containing information including 
113.9   at least the following: 
113.10     (a) the geographic area proposed to be served, whether 
113.11  within or outside the boundaries of the school district; 
113.12     (b) the people proposed to be served, including census 
113.13  findings and projections for the next ten years of the number of 
113.14  preschool and school-aged people in the area; 
113.15     (c) the reasonably anticipated need for the facility or 
113.16  service to be provided; 
113.17     (d) a description of the construction in reasonable detail, 
113.18  including:  the expenditures contemplated; the estimated annual 
113.19  operating cost, including the anticipated salary and number of 
113.20  new staff necessitated by the proposal; and an evaluation of the 
113.21  energy efficiency and effectiveness of the construction, 
113.22  including estimated annual energy costs; and a description of 
113.23  the telephone capabilities of the facility and its classrooms; 
113.24     (e) a description of existing facilities within the area to 
113.25  be served and within school districts adjacent to the area to be 
113.26  served; the extent to which existing facilities or services are 
113.27  used; the extent to which alternate space is available, 
113.28  including other school districts, post-secondary institutions, 
113.29  other public or private buildings, or other noneducation 
113.30  community resources; and the anticipated effect that the 
113.31  facility will have on existing facilities and services; 
113.32     (f) the anticipated benefit of the facility to the area; 
113.33     (g) if known, the relationship of the proposed construction 
113.34  to any priorities that have been established for the area to be 
113.35  served; 
113.36     (h) the availability and manner of financing the facility 
114.1   and the estimated date to begin and complete the facility; 
114.2      (i) desegregation requirements that cannot be met by any 
114.3   other reasonable means; 
114.4      (j) the relationship of the proposed facility to the 
114.5   cooperative integrated learning needs of the area; and 
114.6      (k) the effects of the proposed facility on the district's 
114.7   operating budget; 
114.8      (l) the level of collaboration at the facility between the 
114.9   district and other governmental or nonprofit entities; and 
114.10     (m) the extent to which the district has minimized 
114.11  administrative overhead among facilities. 
114.12     Sec. 7.  Minnesota Statutes 1996, section 121.15, is 
114.13  amended by adding a subdivision to read: 
114.14     Subd. 7a.  [INDOOR AIR QUALITY.] A school board seeking a 
114.15  review and comment under this section must submit information 
114.16  demonstrating to the commissioner's satisfaction that: 
114.17     (1) indoor air quality issues have been considered; and 
114.18     (2) the architects and engineers designing the facility 
114.19  will have professional liability insurance. 
114.20     Sec. 8.  [121.1501] [SCHOOL FACILITY COMMISSIONING.] 
114.21     Subdivision 1.  [APPLICATION.] This section applies to the 
114.22  installation or retrofitting of heating, ventilation, and air 
114.23  conditioning systems for which review and comment of the project 
114.24  under section 121.15 has been requested after the effective date 
114.25  of this section. 
114.26     Subd. 2.  [SYSTEM INSPECTOR.] For purposes of this section, 
114.27  system inspector means: 
114.28     (1) a Minnesota-licensed architect or engineer; or 
114.29     (2) properly qualified testing and balancing agency or 
114.30  individual. 
114.31     Subd. 3.  [CERTIFICATION.] Prior to occupying or 
114.32  reoccupying a school facility affected by this section, a school 
114.33  board or its designee shall submit a document prepared by a 
114.34  system inspector to the building official or to the 
114.35  commissioner, verifying that the facility's heating, 
114.36  ventilation, and air conditioning system has been installed and 
115.1   operates according to design specifications. 
115.2      Subd. 4.  [OCCUPANCY.] If the document submitted by the 
115.3   school board to the local building official or the commissioner 
115.4   does not demonstrate to that official's satisfaction that the 
115.5   heating, ventilation, and air conditioning system has been 
115.6   installed correctly or that the system is not operating at a 
115.7   level to meet design specifications, the official or 
115.8   commissioner may allow up to one year of occupancy while the 
115.9   heating, ventilation, and air conditioning system is improved to 
115.10  a level that is considered satisfactory by the system inspector. 
115.11     Sec. 9.  Minnesota Statutes 1996, section 124.2445, is 
115.12  amended to read: 
115.13     124.2445 [PURCHASE OF CERTAIN EQUIPMENT.] 
115.14     The board of a school district may issue general obligation 
115.15  certificates of indebtedness or capital notes subject to the 
115.16  school district debt limits to purchase:  (a) vehicles, 
115.17  computers, telephone systems, cable equipment, photocopy and 
115.18  office equipment, technological equipment for instruction, and 
115.19  other capital equipment having an expected useful life at least 
115.20  as long as the terms of the certificates or notes; and (b) 
115.21  computer hardware and software, without regard to its expected 
115.22  useful life, whether bundled with machinery or equipment or 
115.23  unbundled, together with application development services and 
115.24  training related to the use of the computer.  The certificates 
115.25  or notes must be payable in not more than five years and must be 
115.26  issued on the terms and in the manner determined by the board.  
115.27  The certificates or notes may be issued by resolution and 
115.28  without the requirement for an election.  The certificates or 
115.29  notes are general obligation bonds for purposes of section 
115.30  124.755.  A tax levy must be made for the payment of the 
115.31  principal and interest on the certificates or notes, in 
115.32  accordance with section 475.61, as in the case of bonds.  The 
115.33  sum of the tax levies under this section and section 124.2455 
115.34  for each year must not exceed the amount of the district's total 
115.35  operating capital revenue for the year the initial debt service 
115.36  levies are certified.  The district's general education levy for 
116.1   each year must be reduced by the sum of (1) the amount of the 
116.2   tax levies for debt service certified for each year for payment 
116.3   of the principal and interest on the certificates or notes as 
116.4   required by section 475.61., and (2) any excess amount in the 
116.5   debt redemption fund used to retire certificates or notes issued 
116.6   after April 1, 1997, other than amounts used to pay capitalized 
116.7   interest.  A district using an excess amount in the debt 
116.8   redemption fund to retire the certificates or notes shall report 
116.9   the amount used for this purpose to the commissioner by July 15 
116.10  of the following fiscal year.  A district having an outstanding 
116.11  capital loan under section 124.431 or an outstanding debt 
116.12  service loan under section 124.42 must not use an excess amount 
116.13  in the debt redemption fund to retire the certificates or notes. 
116.14     Sec. 10.  Minnesota Statutes 1996, section 124.2455, is 
116.15  amended to read: 
116.16     124.2455 [BONDS FOR CERTAIN CAPITAL FACILITIES.] 
116.17     (a) In addition to other bonding authority, with approval 
116.18  of the commissioner, a school district may issue general 
116.19  obligation bonds for certain capital projects under this 
116.20  section.  The bonds must be used only to make capital 
116.21  improvements including: 
116.22     (1) under section 124A.22, subdivision 11, total operating 
116.23  capital revenue uses specified in clauses (4), (6), (7), (8), 
116.24  (9), and (10); 
116.25     (2) the cost of energy modifications; 
116.26     (3) improving handicap accessibility to school buildings; 
116.27  and 
116.28     (4) bringing school buildings into compliance with life and 
116.29  safety codes and fire codes.  
116.30     (b) Before a district issues bonds under this subdivision, 
116.31  it must publish notice of the intended projects, the amount of 
116.32  the bond issue, and the total amount of district indebtedness.  
116.33     (c) A bond issue tentatively authorized by the board under 
116.34  this subdivision becomes finally authorized unless a petition 
116.35  signed by more than 15 percent of the registered voters of the 
116.36  school district is filed with the school board within 30 days of 
117.1   the board's adoption of a resolution stating the board's 
117.2   intention to issue bonds.  The percentage is to be determined 
117.3   with reference to the number of registered voters in the school 
117.4   district on the last day before the petition is filed with the 
117.5   school board.  The petition must call for a referendum on the 
117.6   question of whether to issue the bonds for the projects under 
117.7   this section.  The approval of 50 percent plus one of those 
117.8   voting on the question is required to pass a referendum 
117.9   authorized by this section. 
117.10     (d) The bonds must be paid off within ten years of 
117.11  issuance.  The bonds must be issued in compliance with chapter 
117.12  475, except as otherwise provided in this section.  A tax levy 
117.13  must be made for the payment of principal and interest on the 
117.14  bonds in accordance with section 475.61.  The sum of the tax 
117.15  levies under this section and section 124.2455 for each year 
117.16  must not exceed the amount of the district's total operating 
117.17  capital revenue for the year the initial debt service levies are 
117.18  certified.  The district's general education levy for each year 
117.19  must be reduced by the sum of (1) the amount of the tax levies 
117.20  for debt service certified for each year for payment of the 
117.21  principal and interest on the bonds., and (2) any excess amount 
117.22  in the debt redemption fund used to retire bonds issued after 
117.23  April 1, 1997, other than amounts used to pay capitalized 
117.24  interest.  A district using an excess amount in the debt 
117.25  redemption fund to retire the bonds shall report the amount used 
117.26  for this purpose to the commissioner by July 15 of the following 
117.27  fiscal year.  A district having an outstanding capital loan 
117.28  under section 124.431 or an outstanding debt service loan under 
117.29  section 124.42 must not use an excess amount in the debt 
117.30  redemption fund to retire the bonds. 
117.31     (e) Notwithstanding paragraph (d), bonds issued by a 
117.32  district within the first five years following voter approval of 
117.33  a combination according to section 122.243, subdivision 2, must 
117.34  be paid off within 20 years of issuance.  All the other 
117.35  provisions and limitation of paragraph (d) apply. 
117.36     Sec. 11.  Minnesota Statutes 1996, section 124.2727, 
118.1   subdivision 6d, is amended to read: 
118.2      Subd. 6d.  [REVENUE USES.] (a) A district must place its 
118.3   district cooperation revenue in a reserved account and may only 
118.4   use the revenue to purchase goods and services from entities 
118.5   formed for cooperative purposes or to otherwise provide 
118.6   educational services in a cooperative manner. 
118.7      (b) A district that was a member of an intermediate school 
118.8   district organized pursuant to chapter 136D on July 1, 1994 July 
118.9   1, 1996, must place its district cooperation revenue in a 
118.10  reserved account and must allocate a portion of the reserved 
118.11  revenue for instructional services from entities formed for 
118.12  cooperative services for special education programs and 
118.13  secondary vocational programs.  The allocated amount is equal to 
118.14  the levy made according to section 124.2727, subdivision 6, for 
118.15  taxes payable in 1994 divided by the actual pupil units in the 
118.16  intermediate school district for fiscal year 1995 times the 
118.17  number of actual pupil units in the school district in 1995.  
118.18  The district must use 5/11 of the revenue for special education 
118.19  and 6/11 of the revenue for secondary vocational education.  The 
118.20  district must demonstrate that the revenue is being used to 
118.21  provide the full range of special education and secondary 
118.22  vocational programs and services available to each child served 
118.23  by the intermediate.  The secondary vocational programs and 
118.24  service must meet the requirements established in an 
118.25  articulation agreement developed between the state board of 
118.26  education and the board of trustees of the Minnesota state 
118.27  colleges and universities. 
118.28     (c) A district that was not a member of an intermediate 
118.29  district organized under chapter 136D on July 1, 1994, must 
118.30  spend at least $9 per pupil unit of its district cooperation 
118.31  revenue on secondary vocational programs. 
118.32     Sec. 12.  Minnesota Statutes 1996, section 124.42, 
118.33  subdivision 4, is amended to read: 
118.34     Subd. 4.  Each district receiving a debt service loan shall 
118.35  levy for debt service in that year and each year thereafter, 
118.36  until all its debts to the fund are paid, (a) the amount of its 
119.1   maximum effort debt service levy, or (b) the amount of its 
119.2   required debt service levy less the amount of any debt service 
119.3   loan in that year, whichever is greater.  Whenever the maximum 
119.4   effort debt service levy is greater the district shall remit to 
119.5   the commissioner, within ten days after its receipt of the last 
119.6   regular tax distribution in the year in which it is collected, 
119.7   that portion of the maximum effort debt service tax collections, 
119.8   including penalties and interest, which exceeds the required 
119.9   debt service levy.  The district shall remit payments to the 
119.10  commissioner according to section 124.45.  On or before 
119.11  September 1 30 in each year the commissioner shall notify the 
119.12  county auditor of each county containing taxable property 
119.13  situated within the school district of the amount of the maximum 
119.14  effort debt service levy of the district for that year, and said 
119.15  county auditor or auditors shall extend upon the tax rolls an ad 
119.16  valorem tax upon all taxable property within the district in the 
119.17  aggregate amount so certified.  
119.18     Sec. 13.  Minnesota Statutes 1996, section 124.431, 
119.19  subdivision 2, is amended to read: 
119.20     Subd. 2.  [DISTRICT REQUEST FOR REVIEW AND COMMENT.] A 
119.21  school district or a joint powers district that intends to apply 
119.22  for a capital loan must submit a proposal to the commissioner 
119.23  for review and comment according to section 121.15 on or before 
119.24  July 1 of an odd-numbered year.  The commissioner must prepare a 
119.25  review and comment on the proposed facility, regardless of the 
119.26  amount of the capital expenditure required to construct the 
119.27  facility.  In addition to the information provided under section 
119.28  121.15, subdivision 7, the commissioner shall require that 
119.29  predesign packages comparable to those required under section 
119.30  16B.335 be prepared by the applicant school district.  The 
119.31  predesign packages must be sufficient to define the scope, cost, 
119.32  and schedule of the project and must demonstrate that the 
119.33  project has been analyzed according to appropriate space needs 
119.34  standards and also consider the following criteria in 
119.35  determining whether to make a positive review and comment.  
119.36     (a) To grant a positive review and comment the commissioner 
120.1   must determine that all of the following conditions are met: 
120.2      (1) the facilities are needed for pupils for whom no 
120.3   adequate facilities exist or will exist; 
120.4      (2) the district will serve, on average, at least 80 pupils 
120.5   per grade or is eligible for elementary or secondary sparsity 
120.6   revenue; 
120.7      (3) no form of cooperation with another district would 
120.8   provide the necessary facilities; 
120.9      (4) the facilities are comparable in size and quality to 
120.10  facilities recently constructed in other districts that have 
120.11  similar enrollments; 
120.12     (5) the facilities are comparable in size and quality to 
120.13  facilities recently constructed in other districts that are 
120.14  financed without a capital loan; 
120.15     (6) the district is projected to maintain or increase its 
120.16  average daily membership over the next five years or is eligible 
120.17  for elementary or secondary sparsity revenue; 
120.18     (7) the current facility poses a threat to the life, 
120.19  health, and safety of pupils, and cannot reasonably be brought 
120.20  into compliance with fire, health, or life safety codes; 
120.21     (8) the district has made a good faith effort, as evidenced 
120.22  by its maintenance expenditures, to adequately maintain the 
120.23  existing facility during the previous ten years and to comply 
120.24  with fire, health, and life safety codes and state and federal 
120.25  requirements for handicapped accessibility; 
120.26     (9) the district has made a good faith effort to encourage 
120.27  integration of social service programs within the new facility; 
120.28  and 
120.29     (10) evaluations by school boards of adjacent districts 
120.30  have been received. 
120.31     (b) The commissioner may grant a negative review and 
120.32  comment if: 
120.33     (1) the state demographer has examined the population of 
120.34  the communities to be served by the facility and determined that 
120.35  the communities have not grown during the previous five years; 
120.36     (2) the state demographer determines that the economic and 
121.1   population bases of the communities to be served by the facility 
121.2   are not likely to grow or to remain at a level sufficient, 
121.3   during the next ten years, to ensure use of the entire facility; 
121.4      (3) the need for facilities could be met within the 
121.5   district or adjacent districts at a comparable cost by leasing, 
121.6   repairing, remodeling, or sharing existing facilities or by 
121.7   using temporary facilities; 
121.8      (4) the district plans do not include cooperation and 
121.9   collaboration with health and human services agencies and other 
121.10  political subdivisions; or 
121.11     (5) if the application is for new construction, an existing 
121.12  facility that would meet the district's needs could be purchased 
121.13  at a comparable cost from any other source within the area. 
121.14     Sec. 14.  Minnesota Statutes 1996, section 124.431, 
121.15  subdivision 11, is amended to read: 
121.16     Subd. 11.  [CONTRACT.] (a) Each capital loan must be 
121.17  evidenced by a contract between the school district and the 
121.18  state acting through the commissioner.  The contract must 
121.19  obligate the state to reimburse the district, from the maximum 
121.20  effort school loan fund, for eligible capital expenses for 
121.21  construction of the facility for which the loan is granted, an 
121.22  amount computed as provided in subdivision 8.  The commissioner 
121.23  must receive from the school district a certified resolution of 
121.24  the school board estimating the costs of construction and 
121.25  reciting that contracts for construction of the facilities for 
121.26  which the loan is granted have been awarded and that bonds of 
121.27  the district have been issued and sold in the amount necessary 
121.28  to pay all estimated costs of construction in excess of the 
121.29  amount of the loan.  The contract must obligate the district to 
121.30  repay the loan out of the excesses of its maximum effort debt 
121.31  service levy over its required debt service levy, including 
121.32  interest at a rate equal to the weighted average annual rate 
121.33  payable on Minnesota state school loan bonds issued for the 
121.34  project and disbursed to the districts on a reimbursement basis, 
121.35  but in no event less than 3-1/2 percent per year on the 
121.36  principal amount from time to time unpaid. 
122.1      (b) The district shall each year, as long as it is indebted 
122.2   to the state, levy for debt service (a) (i) the amount of its 
122.3   maximum effort debt service levy or (b) (ii) the amount of its 
122.4   required debt service levy, whichever is greater, except as the 
122.5   required debt service levy may be reduced by a loan under 
122.6   section 124.42.  On November 20 of each year each district 
122.7   having an outstanding capital loan shall compute the excess 
122.8   amount in the debt redemption fund.  The commissioner shall 
122.9   prescribe the form and calculation to be used in computing the 
122.10  excess amount.  A completed copy of this form shall be sent to 
122.11  the commissioner before December 1 of each year.  The 
122.12  commissioner may recompute the excess amount and shall promptly 
122.13  notify the district of the recomputed amount.  On December 15 of 
122.14  each year, the district shall remit to the commissioner an 
122.15  amount equal to the excess amount in the debt redemption fund.  
122.16  When the maximum effort debt service levy is greater, the 
122.17  district shall remit to the commissioner within ten days after 
122.18  its receipt of the last regular tax distribution in each year, 
122.19  that part of the debt service tax collections, including 
122.20  penalties and interest that exceeded the required debt service 
122.21  levy.  The district shall remit payments to the commissioner 
122.22  according to section 124.45. 
122.23     (c) The commissioner shall supervise the collection of 
122.24  outstanding accounts due the fund and may, by notice to the 
122.25  proper county auditor, require the maximum levy to be made as 
122.26  required in this subdivision.  Interest on capital loans must be 
122.27  paid on December 15 of the year after the year the loan is 
122.28  granted and annually in later years.  On or before September 1 
122.29  30 in each year the commissioner shall notify the county auditor 
122.30  of each county containing taxable property situated within the 
122.31  school district of the amount of the maximum effort debt service 
122.32  levy of the district for that year.  The county auditor or 
122.33  auditors shall extend upon the tax rolls an ad valorem tax upon 
122.34  all taxable property within the district in the aggregate amount 
122.35  so certified. 
122.36     Sec. 15.  Minnesota Statutes 1996, section 124.45, is 
123.1   amended to read: 
123.2      124.45 [PAYMENT AND APPLICATIONS OF PAYMENT.] 
123.3      Subdivision 1.  [PAYMENT.] (a) On November 20 of each year, 
123.4   each district having an outstanding capital loan or debt service 
123.5   loan shall compute the excess amount in the debt redemption 
123.6   fund.  The commissioner shall prescribe the form and calculation 
123.7   to be used in computing the excess amount.  A completed copy of 
123.8   this form shall be sent to the commissioner before December 1 of 
123.9   each year.  The commissioner may recompute the excess amount and 
123.10  shall promptly notify the district of the recomputed amount. 
123.11     (b) On December 15 of each year, the district shall remit 
123.12  to the commissioner an amount equal to the greater of: 
123.13     (i) the excess amount in the debt redemption fund; or 
123.14     (ii) the amount by which the maximum effort debt service 
123.15  levy exceeds the required debt service levy for that calendar 
123.16  year. 
123.17  Any late payments shall be assessed an interest charge using the 
123.18  interest rates specified for the debt service notes and capital 
123.19  loan contracts. 
123.20     (c) If a payment required under the maximum effort school 
123.21  aid law is not made within 30 days, the commissioner may reduce 
123.22  any subsequent payments due the district under chapters 124 and 
123.23  124A by the amount due, after providing written notice to the 
123.24  district. 
123.25     Subd. 2.  [APPLICATION OF PAYMENTS.] The commissioner shall 
123.26  apply payments received from collections of maximum effort debt 
123.27  service levies in excess of required debt service levies of a 
123.28  district on its debt service notes and capital loan 
123.29  contracts under the maximum effort school aid law and aids 
123.30  withheld according to subdivision 1, paragraph (b), as follows:  
123.31  First, to payment of interest accrued on its notes, if any; 
123.32  second, to interest on its contracts, if any; third, toward 
123.33  principal of its notes, if any; and last, toward principal of 
123.34  its contracts, if any.  While more than one note or more than 
123.35  one contract is held, priority of payment of interest shall be 
123.36  given to the one of earliest date, and after interest accrued on 
124.1   all notes is paid, similar priority shall be given in the 
124.2   application of any remaining amount to the payment of 
124.3   principal.  In any year when the receipts from a district are 
124.4   not sufficient to pay the interest accrued on any of its notes 
124.5   or contracts, the deficiency shall be added to the principal, 
124.6   and the commissioner shall notify the district and each county 
124.7   auditor concerned of the new amount of principal of the note or 
124.8   contract.  
124.9      Sec. 16.  [124.825] [HISTORIC BUILDING REVENUE.] 
124.10     Subdivision 1.  [ELIGIBILITY.] A district that maintains a 
124.11  school building listed on the National Register of Historic 
124.12  Places is eligible for historic building revenue. 
124.13     Subd. 2.  [REVENUE.] A district's historic building revenue 
124.14  is equal to $100 times the number of actual pupil units served 
124.15  in the school building. 
124.16     Subd. 3.  [LEVY.] To obtain historic building revenue, a 
124.17  district may levy an amount, not to exceed the district's 
124.18  revenue, equal to the district's revenue authority for that year 
124.19  times the lesser of one or the ratio of the adjusted net tax 
124.20  capacity divided by its actual pupil units for that school year 
124.21  to $10,000. 
124.22     Subd. 4.  [AID.] A district's historic building aid is 
124.23  equal to the difference between the district's revenue minus the 
124.24  levy.  If a district does not levy the entire amount permitted, 
124.25  the district's aid must be reduced in proportion to the amount 
124.26  levied. 
124.27     Sec. 17.  Minnesota Statutes 1996, section 124.83, 
124.28  subdivision 1, is amended to read: 
124.29     Subdivision 1.  [HEALTH AND SAFETY PROGRAM.] To receive 
124.30  health and safety revenue for any fiscal year a district must 
124.31  submit to the commissioner of children, families, and learning 
124.32  an application for aid and levy by the date determined by the 
124.33  commissioner.  The application may be for hazardous substance 
124.34  removal, fire and life safety code repairs, labor and industry 
124.35  regulated facility and equipment violations, and health, safety, 
124.36  and environmental management, including indoor air quality 
125.1   management.  The application must include a health and safety 
125.2   program adopted by the school district board.  The program must 
125.3   include the estimated cost, per building, of the program by 
125.4   fiscal year. 
125.5      Sec. 18.  Minnesota Statutes 1996, section 124.83, 
125.6   subdivision 2, is amended to read: 
125.7      Subd. 2.  [CONTENTS OF PROGRAM.] A district must adopt a 
125.8   health and safety program.  The program must include plans, 
125.9   where applicable, for hazardous substance removal, fire and life 
125.10  safety code repairs, regulated facility and equipment 
125.11  violations, and health, safety, and environmental management, 
125.12  including indoor air quality management.  
125.13     (a) A hazardous substance plan must contain provisions for 
125.14  the removal or encapsulation of asbestos from school buildings 
125.15  or property, asbestos-related repairs, cleanup and disposal of 
125.16  polychlorinated biphenyls found in school buildings or property, 
125.17  and cleanup, removal, disposal, and repairs related to storing 
125.18  heating fuel or transportation fuels such as alcohol, gasoline, 
125.19  fuel, oil, and special fuel, as defined in section 296.01.  If a 
125.20  district has already developed a plan for the removal or 
125.21  encapsulation of asbestos as required by the federal Asbestos 
125.22  Hazard Emergency Response Act of 1986, the district may use a 
125.23  summary of that plan, which includes a description and schedule 
125.24  of response actions, for purposes of this section.  The plan 
125.25  must also contain provisions to make modifications to existing 
125.26  facilities and equipment necessary to limit personal exposure to 
125.27  hazardous substances, as regulated by the federal Occupational 
125.28  Safety and Health Administration under Code of Federal 
125.29  Regulations, title 29, part 1910, subpart Z; or is determined by 
125.30  the commissioner to present a significant risk to district staff 
125.31  or student health and safety as a result of foreseeable use, 
125.32  handling, accidental spill, exposure, or contamination. 
125.33     (b) A fire and life safety plan must contain a description 
125.34  of the current fire and life safety code violations, a plan for 
125.35  the removal or repair of the fire and life safety hazard, and a 
125.36  description of safety preparation and awareness procedures to be 
126.1   followed until the hazard is fully corrected. 
126.2      (c) A facilities and equipment violation plan must contain 
126.3   provisions to correct health and safety hazards as provided in 
126.4   department of labor and industry standards pursuant to section 
126.5   182.655.  
126.6      (d) A health, safety, and environmental management plan 
126.7   must contain a description of training, record keeping, hazard 
126.8   assessment, and program management as defined in section 124.829.
126.9      (e) A plan to test for and mitigate radon produced hazards. 
126.10     (f) A plan to monitor and improve indoor air quality. 
126.11     Sec. 19.  Minnesota Statutes 1996, section 124.91, 
126.12  subdivision 1, is amended to read: 
126.13     Subdivision 1.  [TO LEASE BUILDING OR LAND.] (a) When a 
126.14  district finds it economically advantageous to rent or lease a 
126.15  building or land for any instructional purposes or for school 
126.16  storage or furniture repair, and it determines that 
126.17  the operating capital expenditure facilities revenues revenue 
126.18  authorized under sections 124.243 and section 124A.22, 
126.19  subdivision 10, are insufficient for this purpose, it may apply 
126.20  to the commissioner for permission to make an additional capital 
126.21  expenditure levy for this purpose.  An application for 
126.22  permission to levy under this subdivision must contain financial 
126.23  justification for the proposed levy, the terms and conditions of 
126.24  the proposed lease, and a description of the space to be leased 
126.25  and its proposed use.  
126.26     (b) The criteria for approval of applications to levy under 
126.27  this subdivision must include:  the reasonableness of the price, 
126.28  the appropriateness of the space to the proposed activity, the 
126.29  feasibility of transporting pupils to the leased building or 
126.30  land, conformity of the lease to the laws and rules of the state 
126.31  of Minnesota, and the appropriateness of the proposed lease to 
126.32  the space needs and the financial condition of the district.  
126.33  The commissioner must not authorize a levy under this 
126.34  subdivision in an amount greater than the cost to the district 
126.35  of renting or leasing a building or land for approved purposes.  
126.36  The proceeds of this levy must not be used for custodial or 
127.1   other maintenance services.  A district may not levy under this 
127.2   subdivision for the purpose of leasing or renting a 
127.3   district-owned building to itself. 
127.4      (c) For agreements finalized after July 1, 1997, a district 
127.5   may not levy under this subdivision for the purpose of leasing:  
127.6   (1) a newly constructed building used primarily for regular 
127.7   kindergarten, elementary, or secondary instruction; or (2) a 
127.8   newly constructed building addition or additions used primarily 
127.9   for regular kindergarten, elementary, or secondary instruction 
127.10  that contains more than 20 percent of the square footage of the 
127.11  previously existing building. 
127.12     (d) The total levy under this subdivision for a district 
127.13  for any year must not exceed $100 times the actual pupil units 
127.14  for the fiscal year to which the levy is attributable. 
127.15     Sec. 20.  Minnesota Statutes 1996, section 124.95, 
127.16  subdivision 2, is amended to read: 
127.17     Subd. 2.  [ELIGIBILITY.] (a) The following portions of a 
127.18  district's debt service levy qualify for debt service 
127.19  equalization: 
127.20     (1) debt service for repayment of principal and interest on 
127.21  bonds issued before July 2, 1992; 
127.22     (2) debt service for bonds refinanced after July 1, 1992, 
127.23  if the bond schedule has been approved by the commissioner and, 
127.24  if necessary, adjusted to reflect a 20-year maturity schedule; 
127.25  and 
127.26     (3) debt service for bonds issued after July 1, 1992, for 
127.27  construction projects that have received a positive review and 
127.28  comment according to section 121.15, if the commissioner has 
127.29  determined that the district has met the criteria under section 
127.30  124.431, subdivision 2, and if the bond schedule has been 
127.31  approved by the commissioner and, if necessary, adjusted to 
127.32  reflect a 20-year maturity schedule.  
127.33     (b) The criterion in section 124.431, subdivision 2, 
127.34  paragraph (a), clause (2), shall be considered to have been met 
127.35  if the district in the fiscal year in which the bonds are 
127.36  authorized at an election conducted under chapter 475: 
128.1      (i) serves an average of at least 66 pupils per grade in 
128.2   the grades to be served by the facility if grades 9 through 12 
128.3   are to be served by the facility, and an average of at least 66 
128.4   pupils per grade in these grades are served; or 
128.5      (ii) is eligible for elementary or secondary sparsity 
128.6   revenue. 
128.7      (c) The criterion in section 124.431, subdivision 2, 
128.8   paragraph (a), clause (2), shall also be considered to have been 
128.9   met if the construction project under review serves students in 
128.10  kindergarten to grade 8.  Only the debt service levy for that 
128.11  portion of the facility serving students in prekindergarten to 
128.12  grade 8, as determined by the commissioner, shall be eligible 
128.13  for debt service equalization under this paragraph. 
128.14     (d) The criterion described in section 124.431, subdivision 
128.15  2, paragraph (a), clause (9), does not apply to bonds authorized 
128.16  by elections held before July 1, 1992. 
128.17     (e) For the purpose of this subdivision the department 
128.18  shall determine the eligibility for sparsity at the location of 
128.19  the new facility, or the site of the new facility closest to the 
128.20  nearest operating school if there is more than one new facility. 
128.21     (f) Notwithstanding paragraphs (a) to (e), debt service for 
128.22  repayment of principal and interest on bonds issued after July 
128.23  1, 1997, does not qualify for debt service equalization aid 
128.24  unless the primary purpose of the facility is to serve students 
128.25  in kindergarten through grade 12. 
128.26     Sec. 21.  Minnesota Statutes 1996, section 124.961, is 
128.27  amended to read: 
128.28     124.961 [DEBT SERVICE APPROPRIATION.] 
128.29     (a) $30,054,000 $35,480,000 in fiscal year 
128.30  1996 1998, $28,162,000 $38,159,000 in fiscal year 1997 1999, 
128.31  and $33,948,000 $38,390,000 in fiscal year 1998 2000 and each 
128.32  year thereafter is appropriated from the general fund to the 
128.33  commissioner of children, families, and learning for payment of 
128.34  debt service equalization aid under section 124.95.  The 1998 
128.35  2000 appropriation includes $4,970,000 $3,842,000 for 1997 
128.36  1999 and $28,978,000 $34,548,000 for 1998 2000. 
129.1      (b) The appropriations in paragraph (a) must be reduced by 
129.2   the amount of any money specifically appropriated for the same 
129.3   purpose in any year from any state fund. 
129.4      Sec. 22.  Minnesota Statutes 1996, section 124A.22, 
129.5   subdivision 10, is amended to read: 
129.6      Subd. 10.  [TOTAL OPERATING CAPITAL REVENUE.] (a) For 
129.7   fiscal year 1997 1999 and thereafter, total operating capital 
129.8   revenue for a district equals the amount determined under 
129.9   paragraph (b), or (c), (d), (e), or (f), plus $68 times the 
129.10  actual pupil units for the school year.  The revenue must be 
129.11  placed in a reserved account in the general fund and may only be 
129.12  used according to subdivision 11. 
129.13     (b) For fiscal years 1996 1999 and later, capital revenue 
129.14  for a district equals $100 times the district's maintenance cost 
129.15  index times its actual pupil units for the school year. 
129.16     (c) For 1996 and later fiscal years, the previous formula 
129.17  revenue for a district equals $128 times its actual pupil units 
129.18  for fiscal year 1995 the school year. 
129.19     (d) Notwithstanding paragraph (b), for fiscal year 1996, 
129.20  the revenue for each district equals 25 percent of the amount 
129.21  determined in paragraph (b) plus 75 percent of the previous 
129.22  formula revenue. 
129.23     (e) Notwithstanding paragraph (b), for fiscal year 1997, 
129.24  the revenue for each district equals 50 percent of the amount 
129.25  determined in paragraph (b) plus 50 percent of the previous 
129.26  formula revenue. 
129.27     (f) Notwithstanding paragraph (b), for fiscal year 1998, 
129.28  the revenue for each district equals 75 percent of the amount 
129.29  determined in paragraph (b) plus 25 percent of the previous 
129.30  formula revenue. 
129.31     (g) For fiscal years 1998 and later, the revenue for a 
129.32  district that operates a program under section 121.585, is 
129.33  increased by an amount equal to $15 $30 times the number of 
129.34  actual pupil units at the site where the program is implemented. 
129.35     Sec. 23.  Minnesota Statutes 1996, section 124A.22, 
129.36  subdivision 11, is amended to read: 
130.1      Subd. 11.  [USES OF TOTAL OPERATING CAPITAL REVENUE.] Total 
130.2   operating capital revenue may be used only for the following 
130.3   purposes: 
130.4      (1) to acquire land for school purposes; 
130.5      (2) to acquire or construct buildings for school purposes, 
130.6   up to $400,000; 
130.7      (3) to rent or lease buildings, including the costs of 
130.8   building repair or improvement that are part of a lease 
130.9   agreement; 
130.10     (4) to improve and repair school sites and buildings, and 
130.11  equip or reequip school buildings with permanent attached 
130.12  fixtures; 
130.13     (5) for a surplus school building that is used 
130.14  substantially for a public nonschool purpose; 
130.15     (6) to eliminate barriers or increase access to school 
130.16  buildings by individuals with a disability; 
130.17     (7) to bring school buildings into compliance with the 
130.18  uniform fire code adopted according to chapter 299F; 
130.19     (8) to remove asbestos from school buildings, encapsulate 
130.20  asbestos, or make asbestos-related repairs; 
130.21     (9) to clean up and dispose of polychlorinated biphenyls 
130.22  found in school buildings; 
130.23     (10) to clean up, remove, dispose of, and make repairs 
130.24  related to storing heating fuel or transportation fuels such as 
130.25  alcohol, gasoline, fuel oil, and special fuel, as defined in 
130.26  section 296.01; 
130.27     (11) for energy audits for school buildings and to modify 
130.28  buildings if the audit indicates the cost of the modification 
130.29  can be recovered within ten years; 
130.30     (12) to improve buildings that are leased according to 
130.31  section 123.36, subdivision 10; 
130.32     (13) to pay special assessments levied against school 
130.33  property but not to pay assessments for service charges; 
130.34     (14) to pay principal and interest on state loans for 
130.35  energy conservation according to section 216C.37 or loans made 
130.36  under the northeast Minnesota economic protection trust fund act 
131.1   according to sections 298.292 to 298.298; 
131.2      (15) to purchase or lease interactive telecommunications 
131.3   equipment; 
131.4      (16) by school board resolution, to transfer money into the 
131.5   debt redemption fund to:  (i) pay the amounts needed to meet, 
131.6   when due, principal and interest payments on certain obligations 
131.7   issued according to chapter 475; or (ii) pay principal and 
131.8   interest on debt service loans or capital loans according to 
131.9   section 124.44; 
131.10     (17) to pay capital expenditure equipment-related 
131.11  assessments of any entity formed under a cooperative agreement 
131.12  between two or more districts; 
131.13     (18) to purchase or lease computers and related materials, 
131.14  copying machines, telecommunications equipment, and other 
131.15  noninstructional equipment; 
131.16     (19) to purchase or lease assistive technology or equipment 
131.17  for instructional programs; 
131.18     (20) to purchase textbooks; 
131.19     (21) to purchase new and replacement library books; 
131.20     (22) to purchase vehicles; 
131.21     (23) to purchase or lease telecommunications equipment, 
131.22  computers, and related equipment for integrated information 
131.23  management systems for: 
131.24     (i) managing and reporting learner outcome information for 
131.25  all students under a results-oriented graduation rule; 
131.26     (ii) managing student assessment, services, and achievement 
131.27  information required for students with individual education 
131.28  plans; and 
131.29     (iii) other classroom information management needs; and 
131.30     (24) to pay personnel costs directly related to the 
131.31  acquisition, operation, and maintenance of telecommunications 
131.32  systems, computers, related equipment, and network and 
131.33  applications software. 
131.34     Sec. 24.  Minnesota Statutes 1996, section 136D.72, 
131.35  subdivision 2, is amended to read: 
131.36     Subd. 2.  [TERMS.] The terms of the members of the first 
132.1   school board shall, as nearly as possible, consist of one-third 
132.2   of the members for one year, one-third of the members for two 
132.3   years, and one-third of the members for three years.  The 
132.4   members of the first board shall determine by lot which length 
132.5   of term each member of the first board shall be assigned.  Terms 
132.6   of office of the members of the board shall expire on June 30 
132.7   January 1.  Thereafter the terms of office of board members 
132.8   shall be for three four years commencing on July 1 January 1 of 
132.9   each year.  If a vacancy occurs on the board, it shall be filled 
132.10  by the appropriate school board.  A person appointed to the 
132.11  board shall qualify as a board member by filing with the chief 
132.12  executive officer thereof a written certificate of appointment 
132.13  from the appointing school board.  
132.14     Sec. 25.  Minnesota Statutes 1996, section 136D.72, 
132.15  subdivision 3, is amended to read: 
132.16     Subd. 3.  [ANNUAL ORGANIZATIONAL MEETING.] The first 
132.17  meeting of the first school board shall be at such time mutually 
132.18  agreed to by the members appointed by the participating school 
132.19  districts.  Thereafter The school board shall meet in July 
132.20  January of each year when notified of such meeting by the chief 
132.21  executive officer of the intermediate school district.  At such 
132.22  first the organizational meeting, the officers of the 
132.23  intermediate school district for the current year shall be 
132.24  chosen and such other organizational business as may be 
132.25  necessary shall be conducted. 
132.26     Sec. 26.  [DUTIES OF THE DEPARTMENT OF CHILDREN, FAMILIES, 
132.27  AND LEARNING.] 
132.28     Subdivision 1.  [DUTIES.] (a) The department of children, 
132.29  families, and learning, in collaboration with the departments of 
132.30  health and administration, school districts, and other public 
132.31  and private agencies, must develop the following: 
132.32     (1) an indoor air quality maintenance manual; 
132.33     (2) a planning and construction manual to assure indoor air 
132.34  quality; and 
132.35     (3) a public information plan for students, parents, staff, 
132.36  and other members of the public. 
133.1      (b) The above manuals and plans shall include: 
133.2      (1) process standards for school districts and the 
133.3   department of children, families, and learning to follow when 
133.4   addressing indoor air quality concerns; 
133.5      (2) informational materials for a model school district 
133.6   indoor air quality program; 
133.7      (3) training needs for school district employees; 
133.8      (4) procedures for school districts when disseminating 
133.9   indoor air quality information and test results to parents, 
133.10  teachers, and other persons; 
133.11     (5) indoor air quality considerations under the review and 
133.12  comment process for school buildings, specific evaluations of 
133.13  proposed construction standards and materials, to be included in 
133.14  the review and comment standards; 
133.15     (6) building systems maintenance and housekeeping practices 
133.16  required to assure adequate indoor air quality; 
133.17     (7) architectural, engineering, maintenance engineering, 
133.18  and other design practices to positively affect indoor air 
133.19  quality; 
133.20     (8) regional and state resources available to assist 
133.21  districts with information and training needs of school staff, 
133.22  parents, and community; 
133.23     (9) regional and state resources available to assist 
133.24  districts with medical evaluation relative to indoor air quality 
133.25  complaints; and 
133.26     (10) recommended steps a district should take to attain a 
133.27  satisfactory level of indoor air quality. 
133.28     Subd. 2.  [RESOURCE MANUAL; REPORT.] The indoor air quality 
133.29  resource manual must be made available for distribution and 
133.30  training February 1, 1998, and a report regarding the status of 
133.31  indoor air quality in Minnesota schools will be made to the 1998 
133.32  legislature. 
133.33     Sec. 27.  [TRANSITION.] 
133.34     As a result of section 24, the terms of office of members 
133.35  and officers of the board shall be lengthened to expire on the 
133.36  January 1 following the June 30 on which they otherwise would 
134.1   have expired. 
134.2      Sec. 28.  [REVENUE USE APPROVAL.] 
134.3      The use of revenue for construction in independent school 
134.4   district No. 561, Goodridge, authorized in Laws 1995, First 
134.5   Special Session chapter 3, article 8, section 23, and in 
134.6   independent school district No. 600, Fisher, authorized in Laws 
134.7   1995, First Special Session chapter 3, article 8, section 22, 
134.8   subdivision 21, is approved.  The department shall not make any 
134.9   levy or aid adjustments related to these projects.  
134.10     Sec. 29.  [CHISAGO LAKES AREA SCHOOLS, BONDED DEBT.] 
134.11     Independent school district No. 2144, Chisago Lakes Area, 
134.12  may modify its plan adopted according to Minnesota Statutes, 
134.13  section 122.242, subdivision 9, clause (1), so that independent 
134.14  school district No. 2144 assumes all of the remaining debt 
134.15  service as of the effective date of this section for bonds that 
134.16  were outstanding at the time of the combination of independent 
134.17  school districts No. 141, Chisago Lakes and No. 140, Taylors 
134.18  Falls, and the tax levy for that debt service is spread on all 
134.19  the property in independent school district No. 2144, Chisago 
134.20  Lakes Area. 
134.21     Sec. 30.  [LEASE LEVY; NORTH ST. PAUL-MAPLEWOOD.] 
134.22     Notwithstanding Minnesota Statutes, section 124.91, 
134.23  subdivision 1, independent school district No. 622, North St. 
134.24  Paul-Maplewood, annually may levy the amount necessary to pay 
134.25  its obligations under a lease or a lease with option to purchase 
134.26  agreement during the term of that agreement for the financing of 
134.27  capital improvements approved by its school board to the 
134.28  building, or any portion thereof, at 2520 East Twelfth Avenue, 
134.29  North St. Paul.  The total payments under the terms of the lease 
134.30  may not exceed $4,000,000.  The agreement must be executed by 
134.31  July 1, 1998, and may include a sale and leaseback with option 
134.32  to purchase with a public or private entity.  The agreement is 
134.33  not required to include a nonappropriation clause.  An election 
134.34  is not required in connection with the execution of the 
134.35  agreement and the obligation created by the agreement does not 
134.36  constitute debt and must not be included in the calculation of 
135.1   net debt for the district.  Levies under this section do not 
135.2   qualify for debt service equalization aid. 
135.3      Sec. 31.  [LEVY FOR EXTENDED SCHOOL HOURS AND DAYS.] 
135.4      In addition to other levies, independent school district 
135.5   Nos. 622, North St. Paul-Maplewood-Oakdale; 833, South 
135.6   Washington County; and 834, Stillwater may each levy up to 
135.7   $200,000 each year for the costs of operating extended year, 
135.8   extended day, or all day kindergarten programs at the joint 
135.9   elementary facility authorized in Laws 1995, First Special 
135.10  Session chapter 3, article 5, section 19. 
135.11     Sec. 32.  [SPECIAL EDUCATION AND SECONDARY VOCATIONAL 
135.12  FACILITIES.] 
135.13     The commissioner shall review and report on the quality, 
135.14  availability, and accessibility of intermediate school district 
135.15  special education and secondary vocational facilities and shall 
135.16  make recommendations to the legislature concerning alternatives 
135.17  that are cost-effective and in the best interests of the 
135.18  students in such programs. 
135.19     Sec. 33.  [1996-1997 AVERAGE DAILY MEMBERSHIP.] 
135.20     Notwithstanding Minnesota Statutes, section 124.17, the 
135.21  1996-1997 average daily membership for a school building closed 
135.22  due to flooding for part of the school year and reopened before 
135.23  the end of the school year shall be the greater of the amount 
135.24  that would have been computed if the school building had not 
135.25  reopened or the amount computed using actual data for the entire 
135.26  school year. 
135.27     Sec. 34.  [FISCAL YEAR 1998 DECLINING PUPIL UNIT AID.] 
135.28     For fiscal year 1998 only, a school district with one or 
135.29  more school buildings closed during the 1996-1997 school year 
135.30  due to flooding is eligible for declining pupil unit aid equal 
135.31  to the greater of zero or the product of the general education 
135.32  formula allowance for fiscal year 1998 times the difference 
135.33  between the district's actual pupil units for the 1996-1997 
135.34  school year and the district's actual pupil units for the 
135.35  1997-1998 school year. 
135.36     Sec. 35.  [APPROPRIATIONS.] 
136.1      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
136.2   LEARNING.] The sums indicated in this section are appropriated 
136.3   from the general fund to the department of children, families, 
136.4   and learning for the fiscal years designated.  
136.5      Subd. 2.  [SPECIAL CONSOLIDATION AID.] For special 
136.6   consolidation aid under Minnesota Statutes, section 124.2728: 
136.7        $3,000     .....     1998
136.8      The 1998 appropriation includes $3,000 for 1997 and $0 for 
136.9   1998. 
136.10     Subd. 3.  [CONSOLIDATION TRANSITION AID.] For districts 
136.11  consolidating under Minnesota Statutes, section 124.2726: 
136.12       $1,254,000     .....     1998
136.13       $1,151,000     .....     1999
136.14     The 1998 appropriation includes $67,000 for 1997 and 
136.15  $1,187,000 for 1998. 
136.16     The 1999 appropriation includes $131,000 for 1998 and 
136.17  $1,020,000 for 1999. 
136.18     Any balance in the first year does not cancel but is 
136.19  available in the second year. 
136.20     Subd. 4.  [COOPERATION AND COMBINATION AID.] For aid for 
136.21  districts that cooperate and combine according to Minnesota 
136.22  Statutes, section 124.2725: 
136.23       $562,000     .....     1998 
136.24       $ 42,000     .....     1999 
136.25     The 1998 appropriation includes $178,000 for 1997 and 
136.26  $384,000 for 1998.  
136.27     The 1999 appropriation includes $42,000 for 1998 and $0 for 
136.28  1999.  
136.29     Any balance in the first year does not cancel but is 
136.30  available in the second year. 
136.31     Subd. 5.  [DISTRICT COOPERATION REVENUE.] For district 
136.32  cooperation revenue aid: 
136.33       $9,766,000     .....     1998
136.34       $8,780,000     .....     1999
136.35     The 1998 appropriation includes $1,172,000 for 1997 and 
136.36  $8,561,000 for 1998. 
137.1      The 1999 appropriation includes $951,000 for 1998 and 
137.2   $7,829,000 for 1999. 
137.3      Subd. 6.  [HISTORIC BUILDING AID.] For historic building 
137.4   aid under section 124.825: 
137.5        $173,000     .....     1998 
137.6        $173,000     .....     1999 
137.7      Subd. 7.  [HIBBING GRANT.] For a grant to independent 
137.8   school district No. 701, Hibbing, for expenses not covered by 
137.9   insurance for a fire loss at Hibbing high school: 
137.10       $250,000     .....     1998 
137.11     Independent school district No. 701, Hibbing, shall 
137.12  reimburse the state general fund for any expenses covered by 
137.13  this appropriation that are recovered as a result of a lawsuit 
137.14  related to the fire loss at Hibbing high school. 
137.15     Subd. 8.  [PLANNING GRANT; ISLE.] For a facilities planning 
137.16  grant to independent school district No. 473, Isle:  
137.17       $100,000     .....     1998  
137.18     This appropriation is available until June 30, 1999. 
137.19     Subd. 9.  [FLOOD LOSSES.] For grants and loans to 
137.20  independent school district Nos. 2854, Ada-Borup; 2176, 
137.21  Warren-Alvarado-Oslo; 846, Breckenridge; 595, East Grand Forks; 
137.22  and other districts affected by the 1997 floods for expenses 
137.23  associated with the floods not covered by insurance or state or 
137.24  federal disaster relief: 
137.25     $4,700,000     .....     1998
137.26     The commissioner shall award grants and loans to school 
137.27  districts to cover expenses associated with the 1997 floods.  
137.28  The grants or loans may be for capital losses or for 
137.29  extraordinary operating expenses resulting from the floods.  
137.30  School districts shall repay any loan or grant amounts to the 
137.31  department if those amounts are otherwise funded from other 
137.32  sources.  The commissioner shall establish the terms and 
137.33  conditions of any loans and may request any necessary 
137.34  information from school districts before awarding a grant or 
137.35  loan.  This appropriation shall also be used to fund aid under 
137.36  sections 33 and 34. 
138.1      Sec. 36.  [REPEALER.] 
138.2      Minnesota Statutes 1996, section 124.2728, is repealed 
138.3   effective for revenue for fiscal year 1999. 
138.4      Sec. 37.  [EFFECTIVE DATE.] 
138.5      (a) Section 20 is effective for bonds outstanding on July 
138.6   1, 1997, that meet the criteria in section 20 and is effective 
138.7   for revenue for fiscal year 1999.  
138.8      (b) Section 29 is effective the day following compliance by 
138.9   the school board of independent school district No. 2144, 
138.10  Chisago Lakes Area, with Minnesota Statutes, section 645.021, 
138.11  and contingent upon successful passage of new bond issue under 
138.12  Minnesota Statutes, section 475.58.  
138.13     (c) Section 22 is effective for revenue for fiscal year 
138.14  1999, except that the allowance increase in section 22 is 
138.15  effective for revenue for fiscal year 1998, and the change in 
138.16  previous formula revenue under paragraph (c) is effective 
138.17  immediately. 
138.18     (d) If this act is enacted on or after July 1, 1997, all 
138.19  sections in this article except those sections listed in 
138.20  paragraphs (a) to (c) are effective the day following final 
138.21  enactment. 
138.22                             ARTICLE 5
138.23                        EDUCATION EXCELLENCE
138.24     Section 1.  Minnesota Statutes 1996, section 120.062, 
138.25  subdivision 3, is amended to read: 
138.26     Subd. 3.  [CLOSED DISTRICTS LIMITED ENROLLMENT OF 
138.27  NONRESIDENT PUPILS.] (a) A school board may, by 
138.28  resolution, determine that limit the enrollment of nonresident 
138.29  pupils may not attend any of in its schools or programs 
138.30  according to this section. to a number not less than the lesser 
138.31  of: 
138.32     (1) one percent of the total enrollment at each grade level 
138.33  in the district; or 
138.34     (2) the number of district residents at that grade level 
138.35  enrolled in a nonresident district according to this section.  
138.36     (b) A district that limits enrollment of nonresident pupils 
139.1   under paragraph (a) shall report to the commissioner by July 15 
139.2   on the number of nonresident pupils denied admission due to the 
139.3   limitations on the enrollment of nonresident pupils. 
139.4      Sec. 2.  Minnesota Statutes 1996, section 120.062, 
139.5   subdivision 6, is amended to read: 
139.6      Subd. 6.  [NONRESIDENT DISTRICT PROCEDURES.] A district 
139.7   that does not exclude nonresident pupils, according to 
139.8   subdivision 3, shall notify the parent or guardian in writing by 
139.9   February 15 whether the application has been accepted or 
139.10  rejected.  If an application is rejected, the district must 
139.11  state in the notification the reason for rejection.  The parent 
139.12  or guardian shall notify the nonresident district by March 1 
139.13  whether the pupil intends to enroll in the nonresident 
139.14  district.  Notice of intent to enroll in the nonresident 
139.15  district obligates the pupil to attend the nonresident district 
139.16  during the following school year, unless the school boards of 
139.17  the resident and the nonresident districts agree in writing to 
139.18  allow the pupil to transfer back to the resident district, or 
139.19  the pupil's parents or guardians change residence to another 
139.20  district.  If a parent or guardian does not notify the 
139.21  nonresident district, the pupil may not enroll in that 
139.22  nonresident district during the following school year, unless 
139.23  the school boards of the resident and nonresident district agree 
139.24  otherwise.  The nonresident district shall notify the resident 
139.25  district by March 15 of the pupil's intent to enroll in the 
139.26  nonresident district.  The same procedures apply to a pupil who 
139.27  applies to transfer from one participating nonresident district 
139.28  to another participating nonresident district. 
139.29     Sec. 3.  Minnesota Statutes 1996, section 120.062, 
139.30  subdivision 7, is amended to read: 
139.31     Subd. 7.  [BASIS FOR DECISIONS.] The school board must 
139.32  adopt, by resolution, specific standards for acceptance and 
139.33  rejection of applications.  Standards may include the capacity 
139.34  of a program, class, grade level, or school building.  The 
139.35  school board may not reject applications for enrollment in a 
139.36  particular grade level if the nonresident enrollment at that 
140.1   grade level does not exceed the limit set by the board under 
140.2   subdivision 3.  Standards may not include previous academic 
140.3   achievement, athletic or other extracurricular ability, 
140.4   disabling conditions, proficiency in the English language, or 
140.5   previous disciplinary proceedings, or the student's district of 
140.6   residence.  
140.7      Sec. 4.  Minnesota Statutes 1996, section 120.062, 
140.8   subdivision 11, is amended to read: 
140.9      Subd. 11.  [INFORMATION.] A district that does not exclude 
140.10  nonresident pupils according to subdivision 3 shall make 
140.11  information about the district, schools, programs, policies, and 
140.12  procedures available to all interested people.  
140.13     Sec. 5.  Minnesota Statutes 1996, section 120.064, 
140.14  subdivision 3, is amended to read: 
140.15     Subd. 3.  [SPONSOR.] A school board, private college, 
140.16  community college, state university, technical college, or the 
140.17  University of Minnesota may sponsor one or more charter schools. 
140.18     No more than a total of 40 charter schools may be 
140.19  authorized not more than three of which may be sponsored by 
140.20  public post-secondary institutions.  The state board of 
140.21  education shall advise potential sponsors when the maximum 
140.22  number of charter schools has been authorized. 
140.23     Sec. 6.  Minnesota Statutes 1996, section 120.064, 
140.24  subdivision 8, is amended to read: 
140.25     Subd. 8.  [REQUIREMENTS.] (a) A charter school shall meet 
140.26  all applicable state and local health and safety requirements. 
140.27     (b) The A school must sponsored by a school board may be 
140.28  located in the sponsoring any district, unless another the 
140.29  school board agrees to locate a charter school sponsored by 
140.30  another district in its boundaries of the district of the 
140.31  proposed location disapproves by written resolution.  If such a 
140.32  school board denies a request to locate within its boundaries a 
140.33  charter school sponsored by another district school board, the 
140.34  sponsoring district school board may appeal to the state board 
140.35  of education.  If the state board authorizes the school, the 
140.36  state board shall sponsor the school.  
141.1      (c) A charter school must be nonsectarian in its programs, 
141.2   admission policies, employment practices, and all other 
141.3   operations.  A sponsor may not authorize a charter school or 
141.4   program that is affiliated with a nonpublic sectarian school or 
141.5   a religious institution. 
141.6      (d) Charter schools shall not be used as a method of 
141.7   providing education or generating revenue for students who are 
141.8   being home-schooled. 
141.9      (e) The primary focus of a charter school must be to 
141.10  provide a comprehensive program of instruction for at least one 
141.11  grade or age group from five through 18 years of age.  
141.12  Instruction may be provided to people younger than five years 
141.13  and older than 18 years of age. 
141.14     (f) A charter school may not charge tuition. 
141.15     (g) A charter school is subject to and shall comply with 
141.16  chapter 363 and section 126.21. 
141.17     (h) A charter school is subject to and shall comply with 
141.18  the pupil fair dismissal act, sections 127.26 to 127.39, and the 
141.19  Minnesota public school fee law, sections 120.71 to 120.76. 
141.20     (i) A charter school is subject to the same financial 
141.21  audits, audit procedures, and audit requirements as a school 
141.22  district.  The audit must be consistent with the requirements of 
141.23  sections 121.904 to 121.917, except to the extent deviations are 
141.24  necessary because of the program at the school.  The department 
141.25  of children, families, and learning, state auditor, or 
141.26  legislative auditor may conduct financial, program, or 
141.27  compliance audits. 
141.28     (j) A charter school is a school district for the purposes 
141.29  of tort liability under chapter 466. 
141.30     Sec. 7.  Minnesota Statutes 1996, section 120.064, 
141.31  subdivision 10, is amended to read: 
141.32     Subd. 10.  [PUPIL PERFORMANCE.] A charter school must 
141.33  design its programs to at least meet the outcomes adopted by the 
141.34  state board of education for public school students.  In the 
141.35  absence of state board requirements, the school must meet the 
141.36  outcomes contained in the contract with the sponsor.  The 
142.1   achievement levels of the outcomes contained in the contract may 
142.2   exceed the achievement levels of any outcomes adopted by the 
142.3   state board for public school students. 
142.4      Sec. 8.  Minnesota Statutes 1996, section 120.064, is 
142.5   amended by adding a subdivision to read: 
142.6      Subd. 14a.  [REVIEW AND COMMENT.] The department shall 
142.7   review and comment on the evaluation, by the chartering school 
142.8   district, of the performance of a charter school before the 
142.9   charter school's contract is renewed.  The information from the 
142.10  review and comment shall be reported to the state board of 
142.11  education in a timely manner.  Periodically, the state board 
142.12  shall report trends or suggestions based on the evaluation of 
142.13  charter school contracts to the education committees of the 
142.14  state legislature. 
142.15     Sec. 9.  Minnesota Statutes 1996, section 120.064, 
142.16  subdivision 20a, is amended to read: 
142.17     Subd. 20a.  [TEACHERS TEACHER AND OTHER EMPLOYEE 
142.18  RETIREMENT.] (a) Teachers in a charter school shall be public 
142.19  school teachers for the purposes of chapters 354 and 354a. 
142.20     (b) Except for teachers under paragraph (a), employees in a 
142.21  charter school shall be public employees for the purposes of 
142.22  chapter 353. 
142.23     Sec. 10.  Minnesota Statutes 1996, section 121.611, is 
142.24  amended to read: 
142.25     121.611 [NONLICENSED COMMUNITY EXPERTS; VARIANCE.] 
142.26     Subdivision 1.  [AUTHORIZATION.] Notwithstanding any law or 
142.27  state board of education rule to the contrary, the board of 
142.28  teaching may allow school districts or charter schools to hire 
142.29  nonlicensed community experts to teach in the public schools or 
142.30  charter schools on a limited basis according to this section. 
142.31     Subd. 2.  [APPLICATIONS; CRITERIA.] The school district or 
142.32  charter school shall apply to the board of teaching for approval 
142.33  to hire nonlicensed teaching personnel from the community.  In 
142.34  approving or disapproving the district's application for each 
142.35  community expert, the board shall consider: 
142.36     (1) the qualifications of the community person whom the 
143.1   district or charter school proposes to employ; 
143.2      (2) the reasons for the district's need for a variance from 
143.3   the teacher licensure requirements; 
143.4      (3) the district's efforts to obtain licensed teachers, who 
143.5   are acceptable to the school board, for the particular course or 
143.6   subject area or the charter school's efforts to obtain licensed 
143.7   teachers for the particular course or subject area; 
143.8      (4) the amount of teaching time for which the community 
143.9   expert would be hired; 
143.10     (5) the extent to which the district or charter school is 
143.11  utilizing other nonlicensed community experts under this 
143.12  section; 
143.13     (6) the nature of the community expert's proposed teaching 
143.14  responsibility; and 
143.15     (7) the proposed level of compensation to the community 
143.16  expert. 
143.17     Subd. 3.  [APPROVAL OF PLAN.] The board of teaching shall 
143.18  approve or disapprove an application within 60 days of receiving 
143.19  it from a school district or charter school. 
143.20     Sec. 11.  Minnesota Statutes 1996, section 123.951, is 
143.21  amended to read: 
143.22     123.951 [SCHOOL SITE DECISION-MAKING AGREEMENT.] 
143.23     Subdivision 1.  [DEFINITION.] "Education site" means a 
143.24  separate facility.  A program within a facility is an education 
143.25  site if the school board recognizes it as a site.  
143.26     Subd. 2.  [AGREEMENT.] (a) A Either the school board or the 
143.27  school site decision-making team may request that the school 
143.28  board may enter into an agreement with a school site 
143.29  decision-making team concerning the governance, management, or 
143.30  control of any the school in the district.  Upon a written 
143.31  request from a proposed school site decision-making team, An 
143.32  initial A school site decision-making team shall be appointed by 
143.33  the school board and may include the school 
143.34  principal, representatives of teachers in the school or their 
143.35  designee, representatives of other employees in the 
143.36  school, representatives of parents of pupils in the school, 
144.1   representatives of pupils in the school, representatives of or 
144.2   other members in the community, or others determined appropriate 
144.3   by the board.  The school site decision-making team shall 
144.4   include the school principal or other person having general 
144.5   control and supervision of the school.  The site decision-making 
144.6   team must reflect the diversity of the education site.  No more 
144.7   than one-half of the members shall be employees of the district. 
144.8      (b) School site decision-making agreements must delegate 
144.9   powers and, duties, and broad management responsibilities to 
144.10  site teams and involve staff members, students as appropriate, 
144.11  and parents in decision making. 
144.12     (c) An agreement shall include a statement of powers, 
144.13  duties, responsibilities, and authority to be delegated to and 
144.14  within the site. 
144.15     (d) An agreement may include: 
144.16     (1) a mechanism to implement flexible support systems for 
144.17  improvement in student achievement of education outcomes an 
144.18  achievement contract according to subdivision 4; 
144.19     (2) a decision-making structure that allows teachers to 
144.20  identify instructional problems and control and apply the 
144.21  resources needed to solve them; 
144.22     (3) a mechanism to allow principals, or other persons 
144.23  having general control and supervision of the school, to make 
144.24  decisions regarding how financial and personnel resources are 
144.25  best allocated at the site and from whom goods or services are 
144.26  purchased; 
144.27     (4) (3) a mechanism to implement parental involvement 
144.28  programs under section 126.69 and to provide for effective 
144.29  parental communication and feedback on this involvement at the 
144.30  site level; 
144.31     (5) (4) a provision that would allow the team to determine 
144.32  who is hired into licensed and nonlicensed positions; 
144.33     (6) (5) a provision that would allow teachers to choose the 
144.34  principal or other person having general control; 
144.35     (7) direct contact with other social service providers; 
144.36     (8) in-service training for site decision-making team 
145.1   members for financial management of school sites; and 
145.2      (9) (6) an amount of revenue allocated to the site under 
145.3   subdivision 3; and 
145.4      (7) any other powers and duties determined appropriate by 
145.5   the board. 
145.6      The school board of the district remains the legal employer 
145.7   under clauses (5) (4) and (6) (5). 
145.8      (d) (e) Any powers or duties not delegated to the school 
145.9   site management team in the school site management agreement 
145.10  shall remain with the school board. 
145.11     (e) (f) Approved agreements shall be filed with the 
145.12  commissioner.  If a school board denies a request to enter into 
145.13  a school site management agreement, it shall provide a copy of 
145.14  the request and the reasons for its denial to the commissioner.  
145.15     Subd. 3.  [REVENUE AND COST ALLOCATION.] Revenue for a 
145.16  fiscal year received or receivable by the district shall be 
145.17  allocated to education sites based on the agreement between the 
145.18  school board and the site decision-making team.  Revenue shall 
145.19  remain allocated to each site until used by the site.  The site 
145.20  teams and the board may enter an agreement that permits the 
145.21  district to provide services and retain the revenue required to 
145.22  pay for the services provided.  The district remains responsible 
145.23  for legally entering into contracts and expending funds.  For 
145.24  the purposes of this subdivision, "allocation" means that the 
145.25  determination of the use of the revenue shall be under the 
145.26  control of the site.  The district may charge the accounts of 
145.27  each site the actual costs of goods and services from the 
145.28  general or capital funds attributable to the site. 
145.29     Subd. 4.  [ACHIEVEMENT CONTRACT.] A school board may enter 
145.30  a written education site achievement contract with each site 
145.31  decision-making team for the purpose of setting learning 
145.32  performance expectations for that site, including the goals for 
145.33  improvement in each area of student performance during the next 
145.34  year, a plan to assist the education site if their goals are not 
145.35  achieved, and other performance expectations and measures 
145.36  determined by the board and the site decision-making team. 
146.1      Subd. 5.  [COMMISSIONER'S ROLE.] The commissioner of 
146.2   children, families, and learning, in consultation with 
146.3   appropriate educational organizations, shall: 
146.4      (1) upon request, provide technical support for districts 
146.5   and sites with agreements under this section; 
146.6      (2) conduct and compile research on the effectiveness of 
146.7   site decision making; and 
146.8      (3) periodically report on and evaluate the effectiveness 
146.9   of site management agreements on a statewide basis. 
146.10     Sec. 12.  Minnesota Statutes 1996, section 123.972, 
146.11  subdivision 5, is amended to read: 
146.12     Subd. 5.  [REPORT.] (a) By October 1 of each year, the 
146.13  school board shall use standard statewide reporting procedures 
146.14  the commissioner develops and adopt a report that includes the 
146.15  following: 
146.16     (1) student performance goals for meeting state graduation 
146.17  standards adopted for that year; 
146.18     (2) results of local assessment data, and any additional 
146.19  test data; 
146.20     (3) the annual school district improvement plans; and 
146.21     (4) information about district and learning site progress 
146.22  in realizing previously adopted improvement plans; and 
146.23     (5) the amount and type of revenue attributed to each 
146.24  education site as defined in section 123.951, subdivision 2. 
146.25     (b) The school board shall publish the report in the local 
146.26  newspaper with the largest circulation in the district or by 
146.27  mail.  The board shall make a copy of the report available to 
146.28  the public for inspection.  The board shall send a copy of the 
146.29  report to the commissioner of children, families, and learning 
146.30  by October 15 of each year. 
146.31     (c) The title of the report shall contain the name and 
146.32  number of the school district and read "Annual Report on 
146.33  Curriculum, Instruction, and Student Performance."  The report 
146.34  must include at least the following information about advisory 
146.35  committee membership: 
146.36     (1) the name of each committee member and the date when 
147.1   that member's term expires; 
147.2      (2) the method and criteria the school board uses to select 
147.3   committee members; and 
147.4      (3) the date by which a community resident must apply to 
147.5   next serve on the committee. 
147.6      Sec. 13.  Minnesota Statutes 1996, section 124.248, is 
147.7   amended by adding a subdivision to read: 
147.8      Subd. 2a.  [BUILDING LEASE AID.] When a charter school 
147.9   finds it economically advantageous to rent or lease a building 
147.10  or land for any instructional purposes and it determines that 
147.11  the total operating capital revenue under section 124A.22, 
147.12  subdivision 10, is insufficient for this purpose, it may apply 
147.13  to the commissioner for building lease aid for this purpose.  
147.14  Criteria for aid approval and revenue uses shall be as defined 
147.15  for the building lease levy in section 124.91, subdivision 1.  
147.16  The amount of building lease aid per pupil unit for a charter 
147.17  school for any year shall not exceed the lesser of (a) 80 
147.18  percent of the approved cost or (b) the product of the actual 
147.19  pupil units for the current school year times the sum of the 
147.20  state average debt redemption fund revenue plus capital revenue, 
147.21  according to section 124.91, per actual pupil unit for the 
147.22  current fiscal year. 
147.23     Sec. 14.  Minnesota Statutes 1996, section 124.248, 
147.24  subdivision 4, is amended to read: 
147.25     Subd. 4.  [OTHER AID, GRANTS, REVENUE.] (a) A charter 
147.26  school is eligible to receive other aids, grants, and revenue 
147.27  according to chapters 120 to 129, as though it were a school 
147.28  district except that, notwithstanding section 124.195, 
147.29  subdivision 3, the payments shall be of an equal amount on each 
147.30  of the 23 payment dates unless a charter school is in its first 
147.31  year of operation in which case it shall receive on its first 
147.32  payment date 15 10 percent of its cumulative amount guaranteed 
147.33  for the year and 22 payments of an equal amount thereafter the 
147.34  sum of which shall be 85 90 percent of the cumulative amount 
147.35  guaranteed.  However, it may not receive aid, a grant, or 
147.36  revenue if a levy is required to obtain the money, except as 
148.1   otherwise provided in this section.  Federal aid received by the 
148.2   state must be paid to the school, if it qualifies for the aid as 
148.3   though it were a school district. 
148.4      (b) Any revenue received from any source, other than 
148.5   revenue that is specifically allowed for operational, 
148.6   maintenance, capital facilities revenue under paragraph (c), and 
148.7   capital expenditure equipment costs under this section, may be 
148.8   used only for the planning and operational start-up costs of a 
148.9   charter school.  Any unexpended revenue from any source under 
148.10  this paragraph must be returned to that revenue source or 
148.11  conveyed to the sponsoring school district, at the discretion of 
148.12  the revenue source. 
148.13     (c) A charter school may receive money from any source for 
148.14  capital facilities needs.  Any unexpended capital facilities 
148.15  revenue must be reserved and shall be expended only for future 
148.16  capital facilities purposes.  In the year-end report to the 
148.17  state board of education, the charter school shall report the 
148.18  total amount of funds received from grants and other outside 
148.19  sources. 
148.20     Sec. 15.  Minnesota Statutes 1996, section 124.248, is 
148.21  amended by adding a subdivision to read: 
148.22     Subd. 6.  [START-UP COSTS.] During the first two years of a 
148.23  charter school's operation, the charter school is eligible for 
148.24  aid to pay for start-up costs and additional operating costs.  
148.25  Start-up cost aid equals the greater of: 
148.26     (1) $50,000 per charter school; or 
148.27     (2) $500 times the charter school's pupil units for that 
148.28  year. 
148.29     Sec. 16.  Minnesota Statutes 1996, section 125.05, 
148.30  subdivision 1c, is amended to read: 
148.31     Subd. 1c.  [SUPERVISORY AND COACH QUALIFICATIONS; CODE OF 
148.32  ETHICS.] The state board of education shall issue licenses under 
148.33  its jurisdiction to persons the state board finds to be 
148.34  qualified and competent for their respective positions under the 
148.35  rules it adopts.  The state board of education may develop, by 
148.36  rule, a code of ethics for supervisory personnel covering 
149.1   standards of professional practices, including areas of ethical 
149.2   conduct and professional performance and methods of enforcement. 
149.3      Sec. 17.  Minnesota Statutes 1996, section 125.05, 
149.4   subdivision 2, is amended to read: 
149.5      Subd. 2.  [EXPIRATION AND RENEWAL.] (a) Each license issued 
149.6   the department of children, families, and learning issues 
149.7   through the its licensing section of the department of children, 
149.8   families, and learning must bear the date of issue.  Licenses 
149.9   must expire and be renewed in accordance with according to the 
149.10  respective rules adopted by the board of teaching or the state 
149.11  board of education adopts.  Requirements for renewal of renewing 
149.12  a license must include production of showing satisfactory 
149.13  evidence of successful teaching experience for at least one 
149.14  school year during the period covered by the license in grades 
149.15  or subjects for which the license is valid or completion of 
149.16  completing such additional preparation as the board of 
149.17  teaching shall prescribe prescribes.  The state board of 
149.18  education shall establish requirements for renewal of renewing 
149.19  the licenses of supervisory personnel must be established by the 
149.20  state board of education.  
149.21     (b) The board of teaching shall offer alternative 
149.22  continuing relicensure options for teachers who are accepted 
149.23  into and complete the national board for professional teaching 
149.24  standards certification process, and offer additional continuing 
149.25  relicensure options for teachers who earn national board for 
149.26  professional teaching standards certification.  Continuing 
149.27  relicensure requirements for teachers who do not maintain 
149.28  national board for professional teaching standards certification 
149.29  are those the board prescribes.  
149.30     Sec. 18.  Minnesota Statutes 1996, section 126.22, 
149.31  subdivision 3, is amended to read: 
149.32     Subd. 3.  [ELIGIBLE PROGRAMS.] (a) A pupil who is eligible 
149.33  according to subdivision 2 may enroll in area learning centers 
149.34  under sections 124C.45 to 124C.48, or according to section 
149.35  121.11, subdivision 12. 
149.36     (b) A pupil who is eligible according to subdivision 2 and 
150.1   who is between the ages of 16 and 21 may enroll in 
150.2   post-secondary courses under section 123.3514. 
150.3      (c) A pupil who is eligible under subdivision 2, may enroll 
150.4   in any public elementary or secondary education program.  
150.5   However, a person who is eligible according to subdivision 2, 
150.6   clause (b), may enroll only if the school board has adopted a 
150.7   resolution approving the enrollment. 
150.8      (d) A pupil who is eligible under subdivision 2, may enroll 
150.9   in any nonprofit, nonpublic, nonsectarian school that has 
150.10  contracted with the serving school district to provide 
150.11  educational services. 
150.12     (e) A pupil who is between the ages of 16 and 21 may enroll 
150.13  in any adult basic education programs approved under section 
150.14  124.26 and operated under the community education program 
150.15  contained in section 121.88. 
150.16     Sec. 19.  Minnesota Statutes 1996, section 126.22, 
150.17  subdivision 3a, is amended to read: 
150.18     Subd. 3a.  [ADDITIONAL ELIGIBLE PROGRAM.] A pupil who is at 
150.19  least 16 years of age, who is eligible under subdivision 2, 
150.20  clause (a), and who has been enrolled only in a public school, 
150.21  if the pupil has been enrolled in any school, during the year 
150.22  immediately before transferring under this subdivision, may 
150.23  transfer to any nonprofit, nonpublic school that has contracted 
150.24  with the serving school district to provide nonsectarian 
150.25  educational services.  Such a school must enroll every eligible 
150.26  pupil who seeks to transfer to the school under this program 
150.27  subject to available space. 
150.28     Sec. 20.  Laws 1995, First Special Session chapter 3, 
150.29  article 11, section 21, subdivision 3, is amended to read: 
150.30     Subd. 3.  [CHARTER SCHOOL EVALUATION.] For the state board 
150.31  of education to evaluate the performance of charter schools 
150.32  authorized according to Minnesota Statutes, section 120.064: 
150.33       $75,000     .....     1996 
150.34     The state board must review and comment on the evaluation, 
150.35  by the chartering school district, of the performance of a 
150.36  charter school before that charter school's contract is 
151.1   renewed.  The state board may provide assistance to a school 
151.2   district in evaluating a charter school that has been chartered 
151.3   by that school board.  The board must report annually to the 
151.4   education committees of the legislature on the results of its 
151.5   evaluations.  This amount is available until June 30, 1997. 
151.6      Sec. 21.  Laws 1996, chapter 412, article 4, section 34, 
151.7   subdivision 4, is amended to read: 
151.8      Subd. 4.  [COMMUNITY-BASED CHARTER SCHOOL GRANT.] For a 
151.9   grant for community-based charter ï¿½schools involving the 
151.10  participation of an operating foundation, the city and county, 
151.11  and St. Paul public schools located in independent school 
151.12  district No. 625, St. Paul: 
151.13       $300,000     .....     1997 
151.14     The commissioner may establish criteria and any reporting 
151.15  or match requirements for the grant under this section. 
151.16     Sec. 22.  [GRANT PROGRAM TO PROMOTE PROFESSIONAL TEACHING 
151.17  STANDARDS.] 
151.18     Subdivision 1.  [ESTABLISHMENT.] A grant program to promote 
151.19  professional teaching standards through the national board for 
151.20  professional teaching standards for fiscal year 1998 is 
151.21  established to provide eligible teachers with the opportunity to 
151.22  receive national board for professional teaching standards 
151.23  certification and to reward teachers who have already received 
151.24  such certification. 
151.25     Subd. 2.  [ELIGIBILITY.] An applicant for a grant must be a 
151.26  licensed K-12 school teacher employed in a state school.  To be 
151.27  eligible for a grant, the teacher must have been employed as a 
151.28  teacher for a minimum of five school years and demonstrate 
151.29  either that the national board for professional teaching 
151.30  standards has accepted the teacher as a candidate for board 
151.31  certification or that the teacher already has received board 
151.32  certification. 
151.33     Subd. 3.  [APPLICATION PROCESS.] To obtain a grant to 
151.34  participate in the national board for professional teaching 
151.35  standards certification process or to receive a reward for 
151.36  already completing the board certification process, a teacher 
152.1   must submit an application to the commissioner of children, 
152.2   families, and learning in the form and manner the commissioner 
152.3   establishes.  The applicant must demonstrate either that the 
152.4   national board for professional teaching standards has accepted 
152.5   the teacher as a candidate for board certification or that the 
152.6   teacher already has received board certification.  The 
152.7   commissioner shall consult with the state board of teaching when 
152.8   reviewing the applications. 
152.9      Subd. 4.  [GRANT AWARDS; PROCEEDS.] (a) The commissioner 
152.10  may award matching grants of $1,000 each to eligible teachers 
152.11  who provide a matching amount through collaboration with either 
152.12  a school district, professional organization, or both and are 
152.13  accepted as candidates for national board for professional 
152.14  teaching standards certification.  Grant recipients shall use 
152.15  the grant to participate in the certification process.  Within 
152.16  24 months of receiving certification, a grant recipient must 
152.17  satisfactorily complete one year of teaching service in a state 
152.18  school or repay the state the amount of the grant, except if the 
152.19  commissioner determines that death or disability prevents the 
152.20  grant recipient from providing the one year of teaching service. 
152.21     (b) The commissioner may award grants to eligible teachers 
152.22  who have earned national board for professional teaching 
152.23  standards certification.  The amount of each grant shall not 
152.24  exceed $1,000 and the commissioner shall establish criteria to 
152.25  determine the actual amount of each grant.  Grant recipients 
152.26  shall use the grant proceeds for educational purposes, including 
152.27  purchasing instructional materials, equipment, or supplies and 
152.28  realizing professional development opportunities.  
152.29     Sec. 23.  [LABORATORY SCHOOL GRANTS.] 
152.30     Subdivision 1.  [ESTABLISHMENT.] The commissioner of 
152.31  children, families, and learning shall make grants to 
152.32  post-secondary institutions to establish laboratory schools that 
152.33  cooperate with interested school districts to develop innovative 
152.34  teaching techniques that enhance students' learning 
152.35  experiences.  A laboratory school must be nonsectarian in its 
152.36  programs, admissions policies, employment practices, and all 
153.1   other operations.  
153.2      Subd. 2.  [GRANT APPLICATION.] A public or private 
153.3   post-secondary institution located in the state may submit an 
153.4   application for a grant.  Each grant application must include: 
153.5      (1) the location of the laboratory school determined in 
153.6   collaboration with a school district, or proposed as a charter 
153.7   school; 
153.8      (2) a five-year fiscal plan demonstrating that the school 
153.9   shall operate with no additional state revenue except revenue 
153.10  received under Minnesota Statutes, chapters 124 and 124A, and 
153.11  the grant money awarded under this section; and 
153.12     (3) for an applicant seeking a grant to improve lifework 
153.13  learning, a description of how the applicant will use 
153.14  information technologies and participate in partnerships with 
153.15  kindergarten through grade 12 schools and post-secondary 
153.16  institutions, business and industry, labor, agriculture, 
153.17  government, and community-based organizations. 
153.18     The commissioner of children, families, and learning, in 
153.19  consultation with interested post-secondary institutions, shall 
153.20  establish guidelines and an application process for the grants.  
153.21  In awarding a grant, the commissioner shall give priority to an 
153.22  eligible applicant that meets the criteria in clause (3). 
153.23     Subd. 3.  [GRANT MONEY.] The grant money may be used for: 
153.24     (1) technology; 
153.25     (2) equipment; 
153.26     (3) teacher mentorships; 
153.27     (4) building remodeling, renovation, or repair; 
153.28     (5) disseminating innovative and effective teaching 
153.29  techniques; 
153.30     (6) education research to develop teaching methods, 
153.31  assessments, and curriculum design; 
153.32     (7) developing creative opportunities for parental 
153.33  involvement; 
153.34     (8) furthering school integration efforts; and 
153.35     (9) other inventive teaching and learning practices 
153.36  designed to implement the high school graduation standards under 
154.1   Minnesota Statutes, section 121.11, subdivision 7c.  
154.2      Sec. 24.  [GIFTED AND TALENTED GRANTS.] 
154.3      Subdivision 1.  [ESTABLISHMENT.] Gifted and talented grants 
154.4   are established to provide access to an appropriate program for 
154.5   students identified as gifted or talented.  A school district or 
154.6   any group of school districts must use the grants to establish a 
154.7   process for identifying gifted and talented students, offer 
154.8   access to challenging learning experiences for students in 
154.9   kindergarten through grade 12, and provide for staff development 
154.10  in meeting the learning needs of gifted and talented students. 
154.11     Subd. 2.  [ELIGIBILITY; CRITERIA.] An applicant for a 
154.12  gifted and talented grant must be a school district or any group 
154.13  of school districts.  The commissioner of children, families, 
154.14  and learning, a representative of the alliance of the Minnesota 
154.15  educators of the gifted and talented, a representative of the 
154.16  Minnesota council of the gifted and talented, and a 
154.17  representative of the challenge task force shall establish the 
154.18  criteria for awarding grants for appropriate programs. 
154.19     Subd. 3.  [APPLICATION.] A school district or any group of 
154.20  school districts must submit an application to the commissioner 
154.21  of children, families, and learning in the form and manner the 
154.22  commissioner establishes. 
154.23     Subd. 4.  [GRANT AWARDS.] A school district or any group of 
154.24  districts may receive a grant in the amount of $25 per pupil per 
154.25  year.  The grant recipient must match one local dollar for every 
154.26  state dollar received.  The local match may include in kind 
154.27  contributions.  In awarding grants, the commissioner shall 
154.28  consider which students will benefit most from these programs. 
154.29     Sec. 25.  [PERFORMANCE FUNDING OPTIONS.] 
154.30     Consistent with state high school graduation requirements, 
154.31  statewide testing requirements, and other performance 
154.32  indicators, the commissioner, in consultation with the state 
154.33  board of education and appropriate stakeholders, shall recommend 
154.34  to the legislature performance funding options for successful 
154.35  schools and for schools at risk to be implemented for the 
154.36  1999-2000 school year. 
155.1      Sec. 26.  [DEADLINE AND PENALTY WAIVED.] 
155.2      The deadline and penalty under Minnesota Statutes, section 
155.3   124A.22, subdivision 2a, do not apply for aid payments for the 
155.4   1998-1999 biennium. 
155.5      Sec. 27.  [ST. PAUL COMMUNITY-BASED SCHOOL PROGRAM; 
155.6   APPROPRIATION.] 
155.7      $3,300,000 in fiscal year 1998 is appropriated from the 
155.8   general fund to the commissioner of children, families, and 
155.9   learning for a grant to independent school district No. 625, St. 
155.10  Paul, for the establishment and operation of a community-based 
155.11  school program.  The purpose of the program is to improve 
155.12  student achievement and to provide an integrated set of 
155.13  academic, health, social, and recreational support services 
155.14  year-round, and for an extended day to children, families, and 
155.15  the community. 
155.16     Independent school district No. 625 shall collaborate with 
155.17  the city of St. Paul; Ramsey county; the commissioner of 
155.18  children, families, and learning; and a nonprofit operating 
155.19  foundation located in St. Paul to establish and operate the 
155.20  program.  Before implementing the program, the district must 
155.21  submit the following to the commissioner: 
155.22     (1) the name and address of the school or schools to be 
155.23  community-based schools; 
155.24     (2) the grade levels and number of students to be served; 
155.25     (3) general demographic characteristics of the area and 
155.26  students to be served; 
155.27     (4) the education curriculum and other programs to be 
155.28  offered; 
155.29     (5) the goals of the school and the means to measure 
155.30  student achievement; 
155.31     (6) a budget and operating plan, including the governing 
155.32  structure, financial commitments, and program commitments by the 
155.33  city, county, and foundation to the program; and 
155.34     (7) documentation of community support. 
155.35     This money may also be used to construct, remodel, design, 
155.36  renovate, equip, and repair facilities used for a 
156.1   community-based school program.  This appropriation is available 
156.2   until June 30, 1999. 
156.3      $300,000 of this amount is for a grant for community-based 
156.4   schools according to section 21.  The total appropriation in 
156.5   fiscal years 1997 and 1998 under this section and section 21 
156.6   shall not exceed $3,300,000. 
156.7      Sec. 28.  [APPROPRIATIONS.] 
156.8      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
156.9   LEARNING.] The sums indicated in this section are appropriated 
156.10  from the general fund to the department of children, families, 
156.11  and learning for the fiscal years designated. 
156.12     Subd. 2.  [STATEWIDE TESTING.] For implementing statewide 
156.13  testing and establishing a performance baseline under section 25:
156.14       $2,500,000     .....     1998 
156.15       $2,500,000     .....     1999 
156.16     The commissioner shall contract with an institution of 
156.17  higher education to establish an independent office of 
156.18  educational accountability. 
156.19     Any balance in the first year does not cancel but is 
156.20  available in the second year. 
156.21     Subd. 3.  [LABORATORY SCHOOL GRANTS.] For laboratory school 
156.22  grants under section 23: 
156.23       $2,500,000     .....     1998
156.24     Any balance in the first year does not cancel but is 
156.25  available in the second year. 
156.26     Subd. 4.  [ADVANCED PLACEMENT AND INTERNATIONAL 
156.27  BACCALAUREATE PROGRAMS.] For the state advanced placement and 
156.28  international baccalaureate programs: 
156.29       $1,875,000     .....     1998 
156.30       $1,875,000     .....     1999 
156.31     Notwithstanding Minnesota Statutes, section 126.239, 
156.32  subdivisions 1 and 2, $200,000 each year is for teachers to 
156.33  attend subject matter summer training programs and follow-up 
156.34  support workshops approved by the advanced placement or 
156.35  international baccalaureate programs.  The amount of the subsidy 
156.36  for each teacher attending an advanced placement or 
157.1   international baccalaureate summer training program or workshop 
157.2   shall be the same.  The commissioner shall determine the payment 
157.3   process and the amount of the subsidy. 
157.4      Notwithstanding Minnesota Statutes, section 126.239, 
157.5   subdivision 3, in each year to the extent of available 
157.6   appropriations, the commissioner shall pay all examination fees 
157.7   for all students sitting for an advanced placement examination, 
157.8   international baccalaureate examination, or both.  If this 
157.9   amount is not adequate, the commissioner may pay less than the 
157.10  full examination fee. 
157.11     $300,000 each year is for student scholarships.  A student 
157.12  scholarship shall be awarded to a student scoring three or 
157.13  better on one or more advanced placement examinations or a four 
157.14  or better on one or more international baccalaureate 
157.15  examinations.  The amount of each scholarship shall range from 
157.16  $150 to $500 based on the student's score on the exams.  The 
157.17  scholarships shall be awarded only to students who are enrolled 
157.18  in a Minnesota public or private college or university.  The 
157.19  total amount of each scholarship shall be paid directly to the 
157.20  student's designated college or university and must be used by 
157.21  the student only for tuition, required fees, and books in 
157.22  nonsectarian courses or programs.  The higher education services 
157.23  office, in consultation with the commissioner, shall determine 
157.24  the payment process, the amount of the scholarships, and 
157.25  provisions for unused scholarships.  
157.26     In order to be eligible to receive advanced placement or 
157.27  international baccalaureate scholarships on behalf of the 
157.28  qualifying students, the college or university must have an 
157.29  advanced placement, international baccalaureate, or both, credit 
157.30  and placement policy for the scholarship recipients.  In 
157.31  addition, each college or university must certify these policies 
157.32  to the department each year.  The department must provide each 
157.33  secondary school in the state with a copy of the post-secondary 
157.34  advanced placement and international baccalaureate policies each 
157.35  year. 
157.36     $375,000 each year is for teacher stipends.  A teacher who 
158.1   teaches an advanced placement or international baccalaureate 
158.2   course shall receive a stipend for each student in that 
158.3   teacher's course who receives a three or better on the advanced 
158.4   placement or a four or better on the international baccalaureate 
158.5   examination that covers the subject matter of the course.  The 
158.6   commissioner shall determine the payment process and the amount 
158.7   of the teacher stipend ranging from $25 to $50 for each student 
158.8   receiving a qualifying score. 
158.9      A stipend awarded to a teacher under this subdivision shall 
158.10  not be a mandatory subject of bargaining under Minnesota 
158.11  Statutes, chapter 179A, or any other law and shall not be a term 
158.12  or condition of employment.  The amount of any award shall be 
158.13  final and shall not be subject to review by an arbitrator 
158.14  through any grievance or other process or by a court through any 
158.15  appeal process.  
158.16     Any balance in the first year does not cancel but is 
158.17  available in the second year. 
158.18     Subd. 5.  [TEACHER EDUCATION IMPROVEMENT.] For board of 
158.19  teaching responsibilities relating to teacher licensure 
158.20  restructuring and implementation of the teaching residency 
158.21  program: 
158.22       $450,000     .....     1998
158.23       $450,000     .....     1999 
158.24     Any balance in the first year does not cancel but is 
158.25  available in the second year. 
158.26     The board of teaching shall use the funds for further 
158.27  development of the results-oriented teacher licensure system, 
158.28  for pilot site grants and other methods of implementing the 
158.29  teacher residency program, and for programs relating to teacher 
158.30  mentoring. 
158.31     Subd. 6.  [SCIENCE-MATHEMATICS GRANT.] For continuation of 
158.32  systemic change in science and mathematics education programs: 
158.33       $1,352,000     .....     1998 
158.34       $1,352,000     .....     1999
158.35     $20,000 of the appropriation in 1998 and $20,000 in 1999 is 
158.36  for the south central Minnesota talented youth program. 
159.1      Any balance in the first year does not cancel but is 
159.2   available in the second year. 
159.3      Subd. 7.  [MINNESOTA HOMEWORK HELPLINE; METRO HOMEWORK 
159.4   HOTLINE.] For the Minnesota homework helpline and the metro 
159.5   homework hotline: 
159.6        $100,000       .....     1998 
159.7        $100,000       .....     1999 
159.8      These appropriations are available to assist students with 
159.9   homework by telephone or other interactive technology.  The 
159.10  program providers must offer assistance to students five days 
159.11  per week.  The revenue allocated to each program is contingent 
159.12  upon that program matching each $1 of state revenue with $2 of 
159.13  local or private funding or in-kind contributions. 
159.14     Subd. 8.  [GIFTED AND TALENTED GRANTS.] For grants for 
159.15  gifted and talented programs according to section 24: 
159.16       $1,500,000     .....     1998
159.17       $1,500,000     .....     1999
159.18     Any balance in the first year does not cancel but is 
159.19  available in the second year. 
159.20     Subd. 9.  [COLLABORATIVE URBAN EDUCATOR PROGRAMS.] For 
159.21  grants to collaborative urban educator programs that prepare and 
159.22  license people of color to teach: 
159.23       $895,000     .....     1998
159.24     This appropriation is available until June 30, 1999. 
159.25     Subd. 10.  [CHARTER SCHOOL BUILDING LEASE AID.] For 
159.26  building lease aid according to section 124.248, subdivision 2a: 
159.27       $1,078,000     .....     1998 
159.28       $1,577,000     .....     1999 
159.29     The 1999 appropriation includes $120,000 for 1998 and 
159.30  $1,457,000 for 1999. 
159.31     Subd. 11.  [CHARTER SCHOOL START-UP GRANTS.] For charter 
159.32  school start-up cost aid under Minnesota Statutes, section 
159.33  124.248: 
159.34       $500,000       .....     1998 
159.35       $1,000,000     .....     1999 
159.36     Any balance in the first year does not cancel but is 
160.1   available in the second year.  This appropriation may also be 
160.2   used for grants to convert existing schools into charter schools.
160.3      Subd. 12.  [GRADUATION RULE IMPLEMENTATION AT THE SITE 
160.4   AID.] For graduation rule implementation: 
160.5        $10,000,000     .....     1998
160.6      (a) This appropriation shall be paid to districts according 
160.7   to paragraph (b).  The purpose of the aid is to accelerate the 
160.8   implementation of the graduation rule throughout all education 
160.9   sites in the district through intensive staff development and 
160.10  decentralized decision making.  The board shall work with the 
160.11  teaching staff in the district to determine the most effective 
160.12  staff development processes to assure an acceleration of the 
160.13  implementation.  This appropriation is one-time only. 
160.14     (b) A district shall receive aid equal to $10 times the 
160.15  number of pupil units in the district for fiscal year 1998.  At 
160.16  least 30 percent must be used for the purposes of paragraph (a). 
160.17     Subd. 13.  [WEST ST. PAUL-MENDOTA HEIGHTS-EAGAN GRANT.] For 
160.18  a grant to independent school district No. 197, West St. 
160.19  Paul-Mendota Heights-Eagan, for implementing multiple pathways 
160.20  for students to meet graduation standards: 
160.21       $167,000     .....     1998
160.22     The district must match the grant in an amount determined 
160.23  by the commissioner of children, families, and learning.  The 
160.24  appropriation is available until June 30, 1999. 
160.25     Subd. 14.  [PROFESSIONAL TEACHING STANDARDS CERTIFICATION 
160.26  GRANTS.] For grants to teachers for professional teaching 
160.27  standards certification: 
160.28       $400,000     .....     1998
160.29     This appropriation shall be used for grants to eligible 
160.30  teachers accepted as candidates for national board for 
160.31  professional teaching standards certification; for grants to 
160.32  eligible teachers who have earned national board for 
160.33  professional teaching standards certification for purchasing 
160.34  instructional materials, equipment, or supplies and realizing 
160.35  professional development opportunities; and for the commissioner 
160.36  to pay for four half-time state coordinators that grants to 
161.1   school districts working cooperatively to establish support 
161.2   networks to counsel and assist teacher candidates for national 
161.3   board for professional teaching standards certification.  The 
161.4   grants must be used to hire up to four half-time statewide 
161.5   coordinators who must be licensed kindergarten through grade 12 
161.6   public school teachers.  The commissioner shall determine the 
161.7   form and manner for grant applications.  Applications must 
161.8   include an implementation plan that demonstrates collaboration 
161.9   among school districts and professional organizations in 
161.10  providing support activities to facilitate the work of the 
161.11  coordinators.  
161.12     Any balance in the first year does not cancel but is 
161.13  available in the second year. 
161.14     Subd. 15.  [SCHOOL ENRICHMENT PARTNERSHIP PROGRAM.] For 
161.15  school enrichment partnership program aid according to Minnesota 
161.16  Statutes, section 124.255: 
161.17       $500,000      .....      1998 
161.18     Any balance remaining in the first year does not cancel but 
161.19  is available in the second year. 
161.20     Subd. 16.  [EARLY INTERVENTION READING CHALLENGE 
161.21  GRANTS.] For early intervention reading challenge grants: 
161.22       $500,000     .....     1998
161.23     The commissioner of children, families, and learning shall 
161.24  make grants to school sites to train teachers and adopt 
161.25  curriculum enhancements that provide intense instruction for 
161.26  students with difficulty learning to read.  Priority shall be 
161.27  given to school sites that are committed to significantly 
161.28  increasing the percentage of students who are able to read at 
161.29  grade level by the end of third grade and have high 
161.30  concentrations of students receiving free and reduced lunch.  
161.31  The grant money may be used for establishing the school site as 
161.32  a training site for teachers in other districts, teacher 
161.33  training, or other start-up costs related to curriculum 
161.34  enhancements for early intervention reading programs for 
161.35  children in primary grades.  The grant recipients must match one 
161.36  local dollar for every state dollar received.  The local match 
162.1   may include in-kind contributions.  The commissioner shall 
162.2   consider regional balance in distributing grants. 
162.3      Subd. 17.  [YEAR-ROUND SCHOOL/EXTENDED WEEK OR DAY GRANTS.] 
162.4   For year-round school/extended week or day grants under Laws 
162.5   1995, First Special Session chapter 3, article 7, section 4: 
162.6        $1,800,000     .....     1998 
162.7      The department of children, families, and learning must 
162.8   award grants to school districts with priority given to programs 
162.9   that have not previously received year-round school/extended 
162.10  week or day pilot grants.  Of this amount, $500,000 is for a 
162.11  grant to independent school district No. 624, White Bear Lake.  
162.12  Of this amount, $225,000 is for a year-round school extended day 
162.13  project in independent school district No. 911, Cambridge.  Of 
162.14  this amount, $200,000 is for the four-period day program at 
162.15  independent school district No. 833, south Washington county.  
162.16  The maximum grant amount for other recipients is $300,000.  
162.17  Grant recipients are required to make reports on progress made, 
162.18  planning, and implementing projects in the form and manner 
162.19  specified by the department of children, families, and learning. 
162.20     The senior high site councils in the independent school 
162.21  district No. 833, south Washington county, shall develop and 
162.22  implement a model four-period day curriculum during the 
162.23  1997-1998 and 1998-1999 school years.  The site councils shall 
162.24  seek input from parents, teachers, and students in the design 
162.25  and implementation of the four-period day model.  If one or more 
162.26  site councils determine a four-period day model is not 
162.27  desirable, the site council shall report its recommendations 
162.28  back to the board and need not proceed with the development and 
162.29  implementation of the model. 
162.30     The south Washington county school board shall develop a 
162.31  system for monitoring and evaluating the development and 
162.32  implementation of the four-period day models at its high 
162.33  schools.  The board shall monitor and evaluate:  (1) the process 
162.34  used by the site council to discuss, develop, and implement a 
162.35  four-period day; and (2) the academic outcomes of students after 
162.36  the four-period day has been fully implemented.  To evaluate the 
163.1   academic outcomes of students, the district shall compare the 
163.2   academic achievement of its high school students with the 
163.3   achievement of students in similar school districts using a 
163.4   six-period day model.  The board shall report the results of its 
163.5   evaluation to the commissioner of children, families, and 
163.6   learning on August 30, 1998, and August 30, 1999.  The reports 
163.7   shall include a detailed description of the site-based, 
163.8   decision-making model that was used to develop and implement the 
163.9   four-period day and the steps that were taken to successfully 
163.10  implement and evaluate the model. 
163.11     Independent school district No. 833, South Washington 
163.12  County, shall complete a class size mitigation pilot project to 
163.13  explore options for improving learning outcomes in elementary 
163.14  and junior high classrooms with 30 or more students.  The 
163.15  options for mitigating the adverse impacts of large class sizes 
163.16  shall be developed and implemented using a site-based management 
163.17  decision-making process.  The district shall report the results 
163.18  of its pilot project to the commissioner of children, families, 
163.19  and learning by August 30, 1998. 
163.20     Sec. 29.  [REPEALER.] 
163.21     Minnesota Statutes 1996, section 121.11, subdivision 8, is 
163.22  repealed. 
163.23     Sec. 30.  [EFFECTIVE DATE.] 
163.24     If this act is enacted on or after July 1, 1997, sections 1 
163.25  to 29 are effective the day following final enactment. 
163.26                             ARTICLE 6 
163.27                        ACADEMIC PERFORMANCE 
163.28     Section 1.  Minnesota Statutes 1996, section 120.101, 
163.29  subdivision 5, is amended to read: 
163.30     Subd. 5.  [AGES AND TERMS.] For the 1988-1989 school year 
163.31  and the school years thereafter, Every child between seven and 
163.32  16 years of age shall receive instruction for at least the 
163.33  number of days each year required under subdivision 5b.  For the 
163.34  2000-2001 school year and later school years, every child 
163.35  between seven and 18 years of age shall receive instruction for 
163.36  at least the number of days each year required under subdivision 
164.1   5b.  Every child under the age of seven who is enrolled in a 
164.2   half-day kindergarten, or a full-day kindergarten program on 
164.3   alternate days, or other kindergarten programs shall receive 
164.4   instruction at least equivalent to half of each day for the 
164.5   number of days each year set out in subdivision 5b.  Except as 
164.6   provided in subdivision 5a, a parent may withdraw a child under 
164.7   the age of seven from enrollment at any time. 
164.8      Sec. 2.  Minnesota Statutes 1996, section 120.101, is 
164.9   amended by adding a subdivision to read: 
164.10     Subd. 5d.  [WITHDRAWAL FROM SCHOOL.] Any student between 16 
164.11  and 18 years old who seeks to withdraw from school, and the 
164.12  student's parent or guardian must: 
164.13     (1) attend a meeting with school personnel to discuss the 
164.14  educational opportunities available to the student, including 
164.15  alternative educational opportunities; and 
164.16     (2) sign a written election to withdraw from school. 
164.17     Sec. 3.  [120.1015] [LENGTH OF SCHOOL YEAR; DAYS OF 
164.18  INSTRUCTION.] 
164.19     A school board's annual school calendar shall include at 
164.20  least three additional days of student instruction beyond the 
164.21  number of days of student instruction the board formally adopted 
164.22  as its school calendar at the beginning of the 1996-1997 school 
164.23  year. 
164.24     Sec. 4.  Minnesota Statutes 1996, section 121.602, 
164.25  subdivision 1, is amended to read: 
164.26     Subdivision 1.  [PROGRAM OUTCOMES.] The outcomes of the 
164.27  educational effectiveness program are to: 
164.28     (1) increase meaningful parental involvement in site-based 
164.29  decision making; 
164.30     (2) improve results-oriented instructional educational 
164.31  processes; 
164.32     (3) create flexible school-based organizational structures; 
164.33  and 
164.34     (4) improve student achievement. 
164.35     Sec. 5.  Minnesota Statutes 1996, section 121.602, 
164.36  subdivision 2, is amended to read: 
165.1      Subd. 2.  [ADVISORY TASK FORCE; PROGRAM IMPLEMENTATION.] 
165.2   The commissioner of children, families, and learning shall 
165.3   develop and maintain a program of educational effectiveness and 
165.4   results-oriented instruction education.  The commissioner may 
165.5   appoint an advisory task force to assist the department of 
165.6   children, families, and learning in developing an implementation 
165.7   program for providing staff development to school district staff 
165.8   in educational effectiveness.  The program shall be based on 
165.9   established principles of instructional design and the essential 
165.10  elements of effective instruction as determined by educational 
165.11  research.  The program shall take into account the diverse needs 
165.12  of the school districts due to such factors as district size and 
165.13  location. 
165.14     Sec. 6.  Minnesota Statutes 1996, section 121.602, 
165.15  subdivision 4, is amended to read: 
165.16     Subd. 4.  [EDUCATIONAL EFFECTIVENESS STAFF DEVELOPMENT.] 
165.17  The department of children, families, and learning shall provide 
165.18  assistance to the school districts in implementing an 
165.19  educational effectiveness program.  In selecting an agency to 
165.20  provide assistance to the school districts, the department shall 
165.21  consider such factors as support of the proposal by the 
165.22  participating school districts and the extent to which the 
165.23  proposal provides for participation by school district staff.  
165.24  The department shall evaluate the performance of the service 
165.25  providers.  The staff development shall be facilitated by 
165.26  building level decision-making teams.  The staff development 
165.27  shall include clarification of individual school missions, 
165.28  goals, expectations, enhancement of collaborative planning and 
165.29  collegial relationships among the building staff, improvement of 
165.30  curriculum, assessment, instructional and organizational skills, 
165.31  improvement of financial and management skills, and planning of 
165.32  other staff development programs. 
165.33     Sec. 7.  Minnesota Statutes 1996, section 123.35, 
165.34  subdivision 8, is amended to read: 
165.35     Subd. 8.  The board may establish and maintain public 
165.36  evening schools and adult and continuing education programs and 
166.1   such evening schools and adult and continuing education programs 
166.2   when so maintained shall be available to all persons over 16 
166.3   years of age through the 1999-2000 school year and over 18 years 
166.4   of age beginning with the 2000-2001 school year who, from any 
166.5   cause, are unable to attend the full-time elementary or 
166.6   secondary schools of such district. 
166.7      Sec. 8.  Minnesota Statutes 1996, section 123.70, 
166.8   subdivision 5, is amended to read: 
166.9      Subd. 5.  If a person transfers from one elementary or 
166.10  secondary school to another, the person shall be allowed school 
166.11  board of a public school district or the administrator of a 
166.12  nonpublic school may allow the person up to a maximum of 30 days 
166.13  to submit one or more of the statements as specified in 
166.14  subdivision 1 or 3, during which time the person may enroll in 
166.15  and attend the school.  If a person enrolls in a child care 
166.16  facility in which at least 75 percent of children in the 
166.17  facility participate on a one-time only or occasional basis to a 
166.18  maximum of 45 hours per child, per month, or is placed in a 
166.19  facility by a crisis nursery, the person shall be exempt from 
166.20  all requirements of this section for up to five consecutive 
166.21  days, starting from the first day of attendance. 
166.22     Sec. 9.  Minnesota Statutes 1996, section 123.70, 
166.23  subdivision 7, is amended to read: 
166.24     Subd. 7.  Each school or child care facility shall maintain 
166.25  on file immunization records for all persons in attendance that 
166.26  contain the information required by subdivisions 1, 2, and 3.  
166.27  The school shall maintain the records for at least five years 
166.28  after the person attains the age of majority.  The department of 
166.29  health and the board of health, as defined in section 145A.02, 
166.30  subdivision 2, in whose jurisdiction the school or child care 
166.31  facility is located, shall have access to the files maintained 
166.32  pursuant to this subdivision.  When a person transfers to 
166.33  another elementary or secondary school or child care facility, 
166.34  the administrator or other person having general control and 
166.35  supervision of the school or child care facility shall assist 
166.36  the person's parent or guardian in the transfer of the 
167.1   immunization file to the person's new school or child care 
167.2   facility within 30 days of the transfer.  Upon the request of a 
167.3   public or private post-secondary educational institution, as 
167.4   defined in section 135A.14, the administrator or other person 
167.5   having general control or supervision of a school shall assist 
167.6   in the transfer of a student's immunization file to the 
167.7   post-secondary institution. 
167.8      Sec. 10.  Minnesota Statutes 1996, section 123.70, 
167.9   subdivision 10, is amended to read: 
167.10     Subd. 10.  A statement required to be submitted under 
167.11  subdivisions 1, 2, and 4 to document evidence of immunization 
167.12  shall include month, day, and year for immunizations 
167.13  administered after January 1, 1990.  
167.14     (a) For persons enrolled in grades 7 and 12 during the 
167.15  1996-1997 school term, the statement must indicate that the 
167.16  person has received a dose of tetanus and diphtheria toxoid no 
167.17  earlier than 11 years of age. 
167.18     (b) Except as specified in paragraph (e), for persons 
167.19  enrolled in grades 7, 8, and 12 during the 1997-1998 school 
167.20  term, the statement must indicate that the person has received a 
167.21  dose of tetanus and diphtheria toxoid no earlier than 11 years 
167.22  of age.  
167.23     (c) Except as specified in paragraph (e), for persons 
167.24  enrolled in grades 7, 8, 9, and through 12 during the 1998-1999 
167.25  school term and for each year thereafter, the statement must 
167.26  indicate that the person has received a dose of tetanus and 
167.27  diphtheria toxoid no earlier than 11 years of age.  
167.28     (d) for persons enrolled in grades 7, 8, 9, 10, and 12 
167.29  during the 1999-2000 school term, the statement must indicate 
167.30  that the person has received a dose of tetanus and diphtheria 
167.31  toxoid no earlier than 11 years of age.  
167.32     (e) for persons enrolled in grades 7 through 12 during the 
167.33  2000-2001 school term and for each year thereafter, the 
167.34  statement must indicate that the person has received a dose of 
167.35  tetanus and diphtheria toxoid no earlier than 11 years of age. 
167.36     (f) (d) For persons enrolled in grades 7 through 12 during 
168.1   the 1996-1997 school year and for each year thereafter, the 
168.2   statement must indicate that the person has received at least 
168.3   two doses of vaccine against measles, mumps, and rubella, given 
168.4   alone or separately and given not less than one month apart. 
168.5      (e) A person who has received at least three doses of 
168.6   tetanus and diphtheria toxoids, with the most recent dose given 
168.7   after age six and before age 11, is not required to have 
168.8   additional immunization against diphtheria and tetanus until ten 
168.9   years have elapsed from the person's most recent dose of tetanus 
168.10  and diphtheria toxoid. 
168.11     Sec. 11.  Minnesota Statutes 1996, section 124.26, 
168.12  subdivision 1b, is amended to read: 
168.13     Subd. 1b.  [PROGRAM REQUIREMENTS.] An adult basic education 
168.14  program is a day or evening program offered by a district that 
168.15  is for people over 16 years of age through the 1999-2000 school 
168.16  year and over 18 years of age beginning with the 2000-2001 
168.17  school year who do not attend an elementary or secondary 
168.18  school.  The program offers academic instruction necessary to 
168.19  earn a high school diploma or equivalency certificate.  Tuition 
168.20  and fees may not be charged to a learner for instruction paid 
168.21  under this section, except for a security deposit to assure 
168.22  return of materials, supplies, and equipment. 
168.23     Sec. 12.  Minnesota Statutes 1996, section 124.276, is 
168.24  amended by adding a subdivision to read: 
168.25     Subd. 2a.  [AID.] A district with an approved plan shall 
168.26  receive $30 per pupil served at the school site with the family 
168.27  connections program.  The district must provide a match of $15 
168.28  per pupil served at the school site with the family connections 
168.29  program. 
168.30     Sec. 13.  [124.6475] [SUMMER FOOD SERVICE REPLACEMENT AID.] 
168.31     States funds are available to compensate 
168.32  department-approved summer food program sponsors for reduced 
168.33  federal operating reimbursement rates under Public Law Number 
168.34  104-193, the federal summer food service program.  A sponsor is 
168.35  eligible for summer food service replacement aid equal to the 
168.36  sum of the following amounts: 
169.1      (1) for breakfast service, subtract the current year 
169.2   maximum reimbursement rate from the 1996 maximum reimbursement 
169.3   rate and multiply the result by the number of breakfasts the 
169.4   district served during the current school year; 
169.5      (2) for lunch or supper service, subtract the current year 
169.6   maximum reimbursement rate from the 1996 maximum reimbursement 
169.7   rate and multiply the result by the number of lunches and 
169.8   suppers the district served during the current school year; and 
169.9      (3) for supplement service, subtract the current year 
169.10  maximum reimbursement rate from the 1996 maximum reimbursement 
169.11  rate and multiply the result by the number of supplement meals 
169.12  the district served during the current school year. 
169.13     Sec. 14.  Minnesota Statutes 1996, section 124C.46, 
169.14  subdivision 2, is amended to read: 
169.15     Subd. 2.  [PEOPLE TO BE SERVED.] A center shall provide 
169.16  programs for secondary pupils and adults, giving priority to 
169.17  serving persons between 16 and 21 years of age.  Secondary 
169.18  pupils to be served are those who are chemically dependent, not 
169.19  likely to graduate from high school, need assistance in 
169.20  vocational and basic skills, can benefit from employment 
169.21  experiences, and need assistance in transition from school to 
169.22  employment.  Adults to be served are dislocated homemakers and 
169.23  workers and others who need basic educational and social 
169.24  services.  In addition to offering programs, the center shall 
169.25  coordinate the use of other available educational services, 
169.26  social services, and post-secondary institutions in the 
169.27  community.  The A center may also provide programs, including 
169.28  work-based, service-learning, and applied learning opportunities 
169.29  developed in collaboration with a local education and employment 
169.30  transitions partnership, and services for elementary and 
169.31  secondary pupils who are not attending the center to assist them 
169.32  in completing high being successful in school.  Pupils eligible 
169.33  to be served are those age five to adults 21 and older who 
169.34  qualify under the graduation incentives program in section 
169.35  126.22, subdivision 2. 
169.36     Sec. 15.  Minnesota Statutes 1996, section 126.22, 
170.1   subdivision 2, is amended to read: 
170.2      Subd. 2.  [ELIGIBLE PUPILS.] The following pupils are 
170.3   eligible to participate in the education options graduation 
170.4   incentives program:  
170.5      (a) any pupil under the age of 21 who:  
170.6      (1) performs substantially below the performance level for 
170.7   pupils of the same age in a locally determined achievement test; 
170.8   or 
170.9      (2) is at least one year behind in satisfactorily 
170.10  completing coursework or obtaining credits for graduation; or 
170.11     (3) is pregnant or is a parent; or 
170.12     (4) has been assessed as chemically dependent; or 
170.13     (5) has been excluded or expelled according to sections 
170.14  127.26 to 127.39; or 
170.15     (6) has been referred by a school district for enrollment 
170.16  in an eligible program or a program pursuant to section 126.23; 
170.17  or 
170.18     (7) is a victim of physical or sexual abuse; or 
170.19     (8) has experienced mental health problems; or 
170.20     (9) has experienced homelessness sometime within six months 
170.21  before requesting a transfer to an eligible program; or 
170.22     (10) speaks English as a second language or has limited 
170.23  English proficiency; or 
170.24     (11) has withdrawn from school or has been chronically 
170.25  truant; or 
170.26     (b) any person who is at least 21 years of age and who:  
170.27     (1) has received fewer than 14 years of public or nonpublic 
170.28  education, beginning at age 5; 
170.29     (2) has not completed the requirements for a high school 
170.30  diploma; and 
170.31     (3) at the time of application, (i) is eligible for 
170.32  reemployment insurance benefits or has exhausted the benefits, 
170.33  (ii) is eligible for, or is receiving income maintenance and 
170.34  support services, as defined in section 268.0111, subdivision 5, 
170.35  or (iii) is eligible for services under the displaced homemaker 
170.36  program, state wage-subsidy program, or any programs under the 
171.1   federal Jobs Training Partnership Act or its successor. 
171.2      Sec. 16.  Minnesota Statutes 1996, section 144.29, is 
171.3   amended to read: 
171.4      144.29 [HEALTH RECORDS; CHILDREN OF SCHOOL AGE.] 
171.5      It shall be the duty of every school nurse, school 
171.6   physician, school attendance officer, superintendent of schools, 
171.7   principal, teacher, and of the persons charged with the duty of 
171.8   compiling and keeping the school census records, to cause a 
171.9   permanent public health record to be kept for each child of 
171.10  school age.  Such record shall be kept in such form that it may 
171.11  be transferred with the child to any school which the child 
171.12  shall attend within the state and transferred to the 
171.13  commissioner when the child ceases to attend school.  It shall 
171.14  contain a record of such health matters as shall be prescribed 
171.15  by the commissioner, and of all mental and physical defects and 
171.16  handicaps which might permanently cripple or handicap the 
171.17  child student health data as defined in section 13.32, 
171.18  subdivision 2, paragraph (a), and shall be classified as private 
171.19  data as defined in section 13.32, subdivision 3.  Nothing in 
171.20  sections 144.29 to 144.32 shall be construed to require any 
171.21  child whose parent or guardian objects in writing thereto to 
171.22  undergo a physical or medical examination or treatment.  A copy 
171.23  shall be forwarded to the proper department of any state to 
171.24  which the child shall remove.  Each district shall assign a 
171.25  teacher, school nurse, or other professional person to review, 
171.26  at the beginning of each school year, the health record of all 
171.27  pupils under the assignee's direction.  Growth, results of 
171.28  vision and hearing screening, and findings obtained from health 
171.29  assessments must be entered periodically on the pupil's health 
171.30  record. 
171.31     Sec. 17.  Minnesota Statutes 1996, section 260.185, 
171.32  subdivision 1, is amended to read: 
171.33     Subdivision 1.  [COURT ORDER, FINDINGS, REMEDIES, 
171.34  TREATMENT.] If the court finds that the child is delinquent, it 
171.35  shall enter an order making any of the following dispositions of 
171.36  the case which are deemed necessary to the rehabilitation of the 
172.1   child: 
172.2      (a) Counsel the child or the parents, guardian, or 
172.3   custodian; 
172.4      (b) Place the child under the supervision of a probation 
172.5   officer or other suitable person in the child's own home under 
172.6   conditions prescribed by the court including reasonable rules 
172.7   for the child's conduct and the conduct of the child's parents, 
172.8   guardian, or custodian, designed for the physical, mental, and 
172.9   moral well-being and behavior of the child, or with the consent 
172.10  of the commissioner of corrections, in a group foster care 
172.11  facility which is under the management and supervision of said 
172.12  commissioner; 
172.13     (c) Subject to the supervision of the court, transfer legal 
172.14  custody of the child to one of the following: 
172.15     (1) a child-placing agency; or 
172.16     (2) the local social services agency; or 
172.17     (3) a reputable individual of good moral character.  No 
172.18  person may receive custody of two or more unrelated children 
172.19  unless licensed as a residential facility pursuant to sections 
172.20  245A.01 to 245A.16; or 
172.21     (4) a county home school, if the county maintains a home 
172.22  school or enters into an agreement with a county home school; or 
172.23     (5) a county probation officer for placement in a group 
172.24  foster home established under the direction of the juvenile 
172.25  court and licensed pursuant to section 241.021; 
172.26     (d) Transfer legal custody by commitment to the 
172.27  commissioner of corrections; 
172.28     (e) If the child is found to have violated a state or local 
172.29  law or ordinance which has resulted in damage to the person or 
172.30  property of another, the court may order the child to make 
172.31  reasonable restitution for such damage; 
172.32     (f) Require the child to pay a fine of up to $700; the 
172.33  court shall order payment of the fine in accordance with a time 
172.34  payment schedule which shall not impose an undue financial 
172.35  hardship on the child; 
172.36     (g) If the child is in need of special treatment and care 
173.1   for reasons of physical or mental health, the court may order 
173.2   the child's parent, guardian, or custodian to provide it.  If 
173.3   the parent, guardian, or custodian fails to provide this 
173.4   treatment or care, the court may order it provided; 
173.5      (h) If the court believes that it is in the best interests 
173.6   of the child and of public safety that the driver's license of 
173.7   the child be canceled until the child's 18th birthday, the court 
173.8   may recommend to the commissioner of public safety the 
173.9   cancellation of the child's license for any period up to the 
173.10  child's 18th birthday, and the commissioner is hereby authorized 
173.11  to cancel such license without a hearing.  At any time before 
173.12  the termination of the period of cancellation, the court may, 
173.13  for good cause, recommend to the commissioner of public safety 
173.14  that the child be authorized to apply for a new license, and the 
173.15  commissioner may so authorize. 
173.16     (i) If the court believes that it is in the best interest 
173.17  of the child and of public safety that the child is enrolled in 
173.18  school, the court may require the child to remain enrolled in a 
173.19  public school until the child reaches the age of 18 or completes 
173.20  all requirements needed to graduate from high school.  Any child 
173.21  enrolled in a public school under this paragraph is subject to 
173.22  the provisions of the Pupil Fair Dismissal Act in chapter 127. 
173.23     If the child is petitioned and found by the court to have 
173.24  committed a controlled substance offense under sections 152.021 
173.25  to 152.027, the court shall determine whether the child 
173.26  unlawfully possessed or sold the controlled substance while 
173.27  driving a motor vehicle.  If so, the court shall notify the 
173.28  commissioner of public safety of its determination and order the 
173.29  commissioner to revoke the child's driver's license for the 
173.30  applicable time period specified in section 152.0271.  If the 
173.31  child does not have a driver's license or if the child's 
173.32  driver's license is suspended or revoked at the time of the 
173.33  delinquency finding, the commissioner shall, upon the child's 
173.34  application for driver's license issuance or reinstatement, 
173.35  delay the issuance or reinstatement of the child's driver's 
173.36  license for the applicable time period specified in section 
174.1   152.0271.  Upon receipt of the court's order, the commissioner 
174.2   is authorized to take the licensing action without a hearing. 
174.3      If the child is petitioned and found by the court to have 
174.4   committed or attempted to commit an act in violation of section 
174.5   609.342; 609.343; 609.344; 609.345; 609.3451; 609.746, 
174.6   subdivision 1; 609.79; or 617.23, or another offense arising out 
174.7   of a delinquency petition based on one or more of those 
174.8   sections, the court shall order an independent professional 
174.9   assessment of the child's need for sex offender treatment.  An 
174.10  assessor providing an assessment for the court must be 
174.11  experienced in the evaluation and treatment of juvenile sex 
174.12  offenders. If the assessment indicates that the child is in need 
174.13  of and amenable to sex offender treatment, the court shall 
174.14  include in its disposition order a requirement that the child 
174.15  undergo treatment.  Notwithstanding section 13.42, 13.85, 
174.16  144.335, 260.161, or 626.556, the assessor has access to the 
174.17  following private or confidential data on the child if access is 
174.18  relevant and necessary for the assessment: 
174.19     (1) medical data under section 13.42; 
174.20     (2) corrections and detention data under section 13.85; 
174.21     (3) health records under section 144.335; 
174.22     (4) juvenile court records under section 260.161; and 
174.23     (5) local welfare agency records under section 626.556. 
174.24     Data disclosed under this paragraph may be used only for 
174.25  purposes of the assessment and may not be further disclosed to 
174.26  any other person, except as authorized by law. 
174.27     If the child is found delinquent due to the commission of 
174.28  an offense that would be a felony if committed by an adult, the 
174.29  court shall make a specific finding on the record regarding the 
174.30  juvenile's mental health and chemical dependency treatment needs.
174.31     Any order for a disposition authorized under this section 
174.32  shall contain written findings of fact to support the 
174.33  disposition ordered, and shall also set forth in writing the 
174.34  following information: 
174.35     (a) why the best interests of the child are served by the 
174.36  disposition ordered; and 
175.1      (b) what alternative dispositions were considered by the 
175.2   court and why such dispositions were not appropriate in the 
175.3   instant case. 
175.4      Sec. 18.  [REGIONAL TRAINING SITES FOR HIV EDUCATION IN 
175.5   SCHOOLS.] 
175.6      The commissioner of children, families, and learning shall 
175.7   establish four regional training centers in partnership with 
175.8   school districts outside of the cities of Minneapolis and St. 
175.9   Paul to implement comprehensive curriculum and program to 
175.10  prevent and reduce the risk of HIV/AIDS as required under 
175.11  Minnesota Statutes, section 121.203.  The commissioner shall 
175.12  provide technical and financial assistance to each school 
175.13  district to identify policy, curriculum, and service gaps, to 
175.14  purchase curriculum and materials and to provide training or 
175.15  services to fill these gaps, to identify opportunities to 
175.16  coordinate HIV education with other special curriculum 
175.17  offerings, and to assess the effectiveness of curriculum and 
175.18  services.  Each regional training center will provide programs 
175.19  and services to nearby school districts to meet the requirements 
175.20  of Minnesota Statutes, section 121.203.  The commissioner and 
175.21  each school district shall work with a community advisory 
175.22  committee to establish and review the operation of each training 
175.23  center. 
175.24     Sec. 19.  [TARGETED BREAKFAST GRANTS.] 
175.25     Subdivision 1.  [ESTABLISHMENT.] A grant program is 
175.26  established to further explore the policy of providing 
175.27  nutritious breakfasts to public elementary school children, 
175.28  without regard to whether the children are eligible to receive 
175.29  free or reduced price meals, so that they can learn effectively. 
175.30     Subd. 2.  [ELIGIBILITY.] An applicant for a grant must be 
175.31  an elementary school that participates in the federal school 
175.32  breakfast and lunch programs.  For a school to receive a grant, 
175.33  at least 33 percent of the lunches the school served to children 
175.34  during the preceding school year must have been provided free or 
175.35  at a reduced price. 
175.36     Subd. 3.  [APPLICATION PROCESS.] To obtain a grant to 
176.1   receive reimbursement for providing breakfasts to all children, 
176.2   whether or not the children are from low-income families and 
176.3   eligible to receive free or reduced price meals, a public 
176.4   elementary school must submit an application to the commissioner 
176.5   of children, families, and learning in the form and manner the 
176.6   commissioner prescribes.  The application must describe how the 
176.7   applicant will encourage all children in the school to 
176.8   participate in the breakfast program.  The applicant also must 
176.9   demonstrate to the commissioner that the applicant will receive 
176.10  a $1 local match of funding or in-kind contributions for every 
176.11  $3 of state funding the applicant receives.  The commissioner 
176.12  may require additional information from the applicant. 
176.13     Subd. 4.  [GRANT AWARDS.] The commissioner shall award 
176.14  grants to the four grant recipients under Laws 1994, chapter 
176.15  647, article 8, section 35, and then on a first-come, 
176.16  first-served basis to all other schools that meet the 
176.17  requirements of subdivisions 2 and 3 until funding under this 
176.18  section is expended.  The commissioner shall determine the 
176.19  amount of the grant using average statewide statistics and 
176.20  individual school statistics adjusted for other state and 
176.21  federal reimbursements.  Grant recipients must use the proceeds 
176.22  to provide breakfasts to school children every day school is in 
176.23  session. 
176.24     Sec. 20.  [APPROPRIATIONS.] 
176.25     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
176.26  LEARNING.] The sums indicated in this section are appropriated 
176.27  from the general fund to the department of children, families, 
176.28  and learning for the fiscal years designated.  
176.29     Subd. 2.  [ABATEMENT AID.] For abatement aid according to 
176.30  Minnesota Statutes, section 124.214:  
176.31       $13,661,000    .....     1998 
176.32       $13,612,000    .....     1999 
176.33     The 1998 appropriation includes $684,000 for 1997 and 
176.34  $12,977,000 for 1998.  
176.35     The 1999 appropriation includes $1,441,000 for 1998 and 
176.36  $12,171,000 for 1999.  
177.1      Subd. 3.  [NONPUBLIC PUPIL AID.] For nonpublic pupil 
177.2   education aid according to Minnesota Statutes, sections 123.79 
177.3   and 123.931 to 123.947: 
177.4        $9,430,000     .....      1998 
177.5        $9,688,000     .....      1999 
177.6      The 1998 appropriation includes $900,000 for 1997 and 
177.7   $8,530,000 for 1998. 
177.8      The 1999 appropriation includes $947,000 for 1998 and 
177.9   $8,741,000 for 1999. 
177.10     Subd. 4.  [SCHOOL LUNCH AND FOOD STORAGE AID.] (a) For 
177.11  school lunch aid according to Minnesota Statutes, section 
177.12  124.646, and Code of Federal Regulations, title 7, section 
177.13  210.17, and for food storage and transportation costs for United 
177.14  States Department of Agriculture donated commodities; and for a 
177.15  temporary transfer to the commodity processing revolving fund to 
177.16  provide cash flow to permit schools and other recipients of 
177.17  donated commodities to take advantage of volume processing rates 
177.18  and for school milk aid according to Minnesota Statutes, section 
177.19  124.648:  
177.20       $7,254,000     .....     1998 
177.21       $7,254,000     .....     1999 
177.22     (b) Any unexpended balance remaining from the 
177.23  appropriations in this subdivision shall be prorated among 
177.24  participating schools based on the number of free, reduced, and 
177.25  fully paid federally reimbursable student lunches served during 
177.26  that school year.  
177.27     (c) If the appropriation amount attributable to either year 
177.28  is insufficient, the rate of payment for each fully paid student 
177.29  lunch shall be reduced and the aid for that year shall be 
177.30  prorated among participating schools so as not to exceed the 
177.31  total authorized appropriation for that year.  
177.32     (d) Any temporary transfer processed in accordance with 
177.33  this subdivision to the commodity processing fund will be 
177.34  returned by June 30 in each year so that school lunch aid and 
177.35  food storage costs can be fully paid as scheduled.  
177.36     (e) Not more than $800,000 of the amount appropriated each 
178.1   year may be used for school milk aid. 
178.2      (f) The commissioner may reduce other future aid and grant 
178.3   payments due to school districts and other organizations for the 
178.4   costs of processing and storage of commodities used by the 
178.5   district or organization. 
178.6      Subd. 5.  [SUMMER FOOD SERVICE.] For summer food service: 
178.7        $15,000        .....     1998
178.8        $15,000        .....     1999
178.9      Subd. 6.  [SCHOOL BREAKFAST.] To operate the school 
178.10  breakfast program according to Minnesota Statutes, sections 
178.11  124.6469 and 124.6472: 
178.12       $456,000       .....     1998
178.13       $456,000       .....     1999
178.14     If the appropriation amount attributable to either year is 
178.15  insufficient, the rate of payment for each fully paid student 
178.16  breakfast shall be reduced and the aid for that year shall be 
178.17  prorated among participating schools so as not to exceed the 
178.18  total authorized appropriation for that year.  Any unexpected 
178.19  balance remaining shall be used to subsidize the payments made 
178.20  for school lunch aid per Minnesota Statutes, section 124.646.  
178.21     Up to one percent of the program funding can be used by the 
178.22  department of children, families, and learning for technical and 
178.23  administrative assistance. 
178.24     Subd. 7.  [SCHOOL BREAKFAST OUTREACH.] To initiate school 
178.25  breakfast programs under Minnesota Statutes, section 124.6469, 
178.26  at school sites not currently providing a school breakfast 
178.27  program or at schools that initiated a school breakfast program 
178.28  during the 1996-1997 school year: 
178.29       $15,000        .....     1998 
178.30       $15,000        .....     1999 
178.31     Subd. 8.  [SUMMER FOOD SERVICE REPLACEMENT AID.] For summer 
178.32  food service replacement aid under Minnesota Statutes, section 
178.33  124.6475: 
178.34       $150,000       .....     1998 
178.35       $150,000       .....     1999 
178.36     Subd. 9.  [TARGETED BREAKFAST GRANTS.] For targeted 
179.1   breakfast grants: 
179.2        $1,037,000     .....     1998 
179.3      This appropriation is available until June 30, 1999. 
179.4      Subd. 10.  [FAMILY CONNECTIONS AID.] For family connections 
179.5   aid according to Minnesota Statutes, section 124.276: 
179.6        $250,000       .....     1998
179.7        $250,000       .....     1999
179.8      Any balance in the first year does not cancel but is 
179.9   available in the second year. 
179.10     Subd. 11.  [NETT LAKE COMMUNITY CENTER.] For a grant to 
179.11  independent school district No. 707, Nett Lake, for maintenance 
179.12  replacement funds to cover delayed lease payments for the 
179.13  collaborative community center: 
179.14       $70,000     .....     1998 
179.15     Subd. 12.  [HIV EDUCATION TRAINING SITES.] For regional 
179.16  training sites for HIV education in schools: 
179.17       $200,000    .....     1998
179.18     This appropriation is contingent on a matching grant of 
179.19  $100,000 in federal funds. 
179.20     This appropriation is available until June 30, 1999. 
179.21     Subd. 13.  [WILLMAR.] For a grant to independent school 
179.22  district No. 347, Willmar: 
179.23       $200,000     .....     1998 
179.24     This appropriation shall be used to improve community 
179.25  understanding of the cultures within the community, improve 
179.26  communication between the district and the Latino community, 
179.27  improve parental involvement in the school, to use mediation to 
179.28  resolve conflict in the school and community, and to assist 
179.29  surrounding communities and districts in achieving these goals. 
179.30     This appropriation is available only if the federal lawsuit 
179.31  against the district is dismissed for settlement. 
179.32     This appropriation is available until June 30, 1999. 
179.33     Subd. 14.  [PSEO REPLACEMENT AID.] For PSEO replacement aid:
179.34       $12,000     .....     1998 
179.35     The 1998 appropriation includes $12,000 for 1997 and $0 for 
179.36  1998. 
180.1      Sec. 21.  [REPEALER.] 
180.2      Minnesota Statutes 1996, sections 121.602, subdivisions 3 
180.3   and 5; 124.177; and 124.276, subdivision 2, are repealed. 
180.4      Sec. 22.  [EFFECTIVE DATE.] 
180.5      (a) Section 3 is effective for the 1998-1999 school year. 
180.6      (b) If this act is enacted on or after July 1, 1997, all 
180.7   sections in this article except for that section listed in 
180.8   paragraph (a) are effective the day following final enactment. 
180.9                              ARTICLE 7
180.10                      EDUCATION POLICY ISSUES
180.11     Section 1.  Minnesota Statutes 1996, section 12.21, 
180.12  subdivision 3, is amended to read: 
180.13     Subd. 3.  [SPECIFIC AUTHORITY.] In performing duties under 
180.14  this chapter and to effect its policy and purpose, the governor 
180.15  may: 
180.16     (1) make, amend, and rescind the necessary orders and rules 
180.17  to carry out the provisions of this chapter and section 216C.15 
180.18  within the limits of the authority conferred by this section, 
180.19  with due consideration of the plans of the federal government 
180.20  and without complying with sections 14.001 to 14.69, but no 
180.21  order or rule has the effect of law except as provided by 
180.22  section 12.32; 
180.23     (2) ensure that a comprehensive emergency operations plan 
180.24  and emergency management program for this state are developed 
180.25  and maintained, and are integrated into and coordinated with the 
180.26  emergency plans of the federal government and of other states to 
180.27  the fullest possible extent; 
180.28     (3) in accordance with the emergency operations plan and 
180.29  the emergency management program of this state, procure supplies 
180.30  and equipment, institute training programs and public 
180.31  information programs, and take all other preparatory steps, 
180.32  including the partial or full activation of emergency management 
180.33  organizations in advance of actual disaster to ensure the 
180.34  furnishing of adequately trained and equipped forces of 
180.35  emergency management personnel in time of need; 
180.36     (4) make studies and surveys of the industries, resources, 
181.1   and facilities in this state as may be necessary to ascertain 
181.2   the capabilities of the state for emergency management and to 
181.3   plan for the most efficient emergency use of those industries, 
181.4   resources, and facilities; 
181.5      (5) on behalf of this state, enter into mutual aid 
181.6   arrangements or cooperative agreements with other states and 
181.7   with Canadian provinces, and coordinate mutual aid plans between 
181.8   political subdivisions of this state; 
181.9      (6) delegate administrative authority vested in the 
181.10  governor under this chapter, except the power to make rules, and 
181.11  provide for the subdelegation of that authority; 
181.12     (7) cooperate with the president and the heads of the armed 
181.13  forces, the emergency management agency of the United States and 
181.14  other appropriate federal officers and agencies, and with the 
181.15  officers and agencies of other states in matters pertaining to 
181.16  the emergency management of the state and nation, including the 
181.17  direction or control of: 
181.18     (i) emergency preparedness drills and exercises; 
181.19     (ii) warnings and signals for drills or actual emergencies 
181.20  and the mechanical devices to be used in connection with them; 
181.21     (iii) shutting off water mains, gas mains, electric power 
181.22  connections and the suspension of all other utility services; 
181.23     (iv) the conduct of persons in the state and the movement 
181.24  and cessation of movement of pedestrians and vehicular traffic 
181.25  during, prior, and subsequent to drills or actual emergencies; 
181.26     (v) public meetings or gatherings; and 
181.27     (vi) the evacuation, reception, and sheltering of persons; 
181.28     (8) contribute to a political subdivision, within the 
181.29  limits of the appropriation for that purpose, not more than 25 
181.30  percent of the cost of acquiring organizational equipment that 
181.31  meets standards established by the governor; 
181.32     (9) formulate and execute, with the approval of the 
181.33  executive council, plans and rules for the control of traffic in 
181.34  order to provide for the rapid and safe movement over public 
181.35  highways and streets of troops, vehicles of a military nature, 
181.36  materials for national defense and war or for use in any war 
182.1   industry, for the conservation of critical materials or for 
182.2   emergency management purposes, and coordinate the activities of 
182.3   the departments or agencies of the state and its political 
182.4   subdivisions concerned directly or indirectly with public 
182.5   highways and streets, in a manner that will best effectuate 
182.6   those plans; 
182.7      (10) alter or adjust by executive order, without complying 
182.8   with sections 14.01 to 14.69, the working hours, work days and 
182.9   work week of, and annual and sick leave provisions and payroll 
182.10  laws regarding all state employees in the executive branch as 
182.11  the governor deems necessary to minimize the impact of the 
182.12  disaster or emergency, conforming the alterations or adjustments 
182.13  to existing state laws, rules, and collective bargaining 
182.14  agreements to the extent practicable; 
182.15     (11) authorize the commissioner of children, families, and 
182.16  learning to alter school schedules, curtail school activities, 
182.17  or order schools closed without affecting state aid to schools, 
182.18  as defined in section 120.05, and including charter schools 
182.19  under section 120.064, and elementary schools enrolling 
182.20  prekindergarten pupils in district programs.  
182.21     Sec. 2.  Minnesota Statutes 1996, section 120.0111, is 
182.22  amended to read: 
182.23     120.0111 [MISSION STATEMENT.] 
182.24     The mission of public education in Minnesota, a system for 
182.25  lifelong learning, is to ensure individual academic achievement, 
182.26  an informed citizenry, and a highly productive work force.  This 
182.27  system focuses on the learner, promotes and values diversity, 
182.28  provides participatory decision-making, ensures accountability, 
182.29  models democratic principles, creates and sustains a climate for 
182.30  change, provides personalized learning environments, encourages 
182.31  learners to reach their maximum potential, and integrates and 
182.32  coordinates human services for learners.  The public schools of 
182.33  this state shall serve the needs of the students by cooperating 
182.34  with the students' parents and legal guardians to develop the 
182.35  students' intellectual capabilities and life-work skills in a 
182.36  safe and positive environment.  It is part of the department's 
183.1   mission that within the department's resources the commissioner 
183.2   shall endeavor to: 
183.3      (1) prevent the waste or unnecessary spending of public 
183.4   money; 
183.5      (2) use innovative fiscal and human resource practices to 
183.6   manage the state's resources and operate the department as 
183.7   efficiently as possible; 
183.8      (3) coordinate the department's activities wherever 
183.9   appropriate with the activities of other governmental agencies; 
183.10     (4) use technology where appropriate to increase agency 
183.11  productivity, improve customer service, increase public access 
183.12  to information about government, and increase public 
183.13  participation in the business of government; 
183.14     (5) utilize constructive and cooperative labor-management 
183.15  practices to the extent otherwise required by chapters 43A and 
183.16  179A; 
183.17     (6) include specific objectives in the performance report 
183.18  required under section 15.91 to increase the efficiency of 
183.19  agency operations, when appropriate; and 
183.20     (7) recommend to the legislature, in the performance report 
183.21  of the department required under section 15.91, appropriate 
183.22  changes in law necessary to carry out the mission of the 
183.23  department. 
183.24     Sec. 3.  Minnesota Statutes 1996, section 120.101, 
183.25  subdivision 5c, is amended to read: 
183.26     Subd. 5c.  [EDUCATION RECORDS.] (a) A school district from 
183.27  which a student is transferring must transmit the student's 
183.28  educational records, within ten business days of a request, to 
183.29  the school district in which the student is enrolling.  School 
183.30  districts must make reasonable efforts to determine the school 
183.31  district in which a transferring student is next enrolling in 
183.32  order to comply with this subdivision. 
183.33     (b) A school district that transmits a student's 
183.34  educational records to another school district or other 
183.35  educational entity to which the student is transferring must 
183.36  include in the transmitted records information about 
184.1   disciplinary action taken as a result of any incident in which 
184.2   the student possessed or used a dangerous weapon. 
184.3      Sec. 4.  Minnesota Statutes 1996, section 123.35, is 
184.4   amended by adding a subdivision to read: 
184.5      Subd. 19c.  [JOINTLY OWNED FACILITIES.] Notwithstanding 
184.6   section 123.35, subdivision 19a, if a school district and a city 
184.7   jointly own a building or site, the district and the city may 
184.8   enter into an agreement that extends beyond the end of the 
184.9   fiscal year to pay operating costs for that building or site. 
184.10     Sec. 5.  Minnesota Statutes 1996, section 123.3514, 
184.11  subdivision 4c, is amended to read: 
184.12     Subd. 4c.  [LIMIT ON PARTICIPATION.] A pupil who first 
184.13  enrolls in grade 11 may not enroll in post-secondary courses 
184.14  under this section for secondary credit for more than the 
184.15  equivalent of two academic years.  A pupil who first enrolls in 
184.16  grade 12 may not enroll in post-secondary courses under this 
184.17  section for secondary credit for more than the equivalent of one 
184.18  academic year.  If a pupil in grade 11 or 12 first enrolls in a 
184.19  post-secondary course for secondary credit during the school 
184.20  year, the time of participation shall be reduced 
184.21  proportionately.  If a pupil is in a learning year or other 
184.22  year-round program and begins each grade in the summer session, 
184.23  summer sessions shall not be counted against the time of 
184.24  participation.  A pupil who has graduated from high school 
184.25  cannot participate in a program under this section.  A pupil who 
184.26  has completed course requirements for graduation but who has not 
184.27  received a diploma may participate in the program under this 
184.28  section. 
184.29     Sec. 6.  Minnesota Statutes 1996, section 123.3514, 
184.30  subdivision 8, is amended to read: 
184.31     Subd. 8.  [TRANSPORTATION.] A parent or guardian of a pupil 
184.32  enrolled in a course for secondary credit may apply to the 
184.33  pupil's district of residence for reimbursement for transporting 
184.34  the pupil between the secondary school in which the pupil is 
184.35  enrolled or the pupil's home and the post-secondary institution 
184.36  that the pupil attends.  The commissioner shall establish 
185.1   guidelines for providing state aid to districts to The state 
185.2   shall provide state aid to a district in an amount sufficient to 
185.3   reimburse the parent or guardian for the necessary 
185.4   transportation costs, which shall be based on financial 
185.5   need when the family's or guardian's income is at or below the 
185.6   poverty level, as determined by the federal government.  The 
185.7   reimbursement may not exceed shall be the pupil's actual cost of 
185.8   transportation or 15 cents per mile traveled, whichever is 
185.9   less.  Reimbursement may not be paid for more than 250 miles per 
185.10  week.  However, if the nearest post-secondary institution is 
185.11  more than 25 miles from the pupil's resident secondary school, 
185.12  the weekly reimbursement may not exceed the reimbursement rate 
185.13  per mile times the actual distance between the secondary school 
185.14  or the pupil's home and the nearest post-secondary institution 
185.15  times ten.  The state shall pay aid to the district according to 
185.16  the guidelines established under this subdivision.  Chapter 14 
185.17  does not apply to the guidelines. 
185.18     Sec. 7.  Minnesota Statutes 1996, section 124C.498, 
185.19  subdivision 2, is amended to read: 
185.20     Subd. 2.  [APPROVAL AUTHORITY; APPLICATION FORMS.] To the 
185.21  extent money is available, the commissioner of children, 
185.22  families, and learning may approve projects from applications 
185.23  submitted under this section.  The grant money must be used only 
185.24  to design, acquire, construct, remodel, improve, furnish, or 
185.25  equip the building or site of a magnet school facility according 
185.26  to contracts entered into within 15 24 months after the date on 
185.27  which a grant is awarded. 
185.28     Sec. 8.  Minnesota Statutes 1996, section 125.12, 
185.29  subdivision 14, is amended to read: 
185.30     Subd. 14.  [RECORDS RELATING TO INDIVIDUAL TEACHER; ACCESS; 
185.31  EXPUNGEMENT.] All evaluations and files generated within a 
185.32  school district relating to each individual teacher shall be 
185.33  available to each individual teacher upon written request.  
185.34  Effective January 1, 1976, all evaluations and files, wherever 
185.35  generated, relating to each individual teacher shall be 
185.36  available to each individual teacher upon written request.  The 
186.1   teacher shall have the right to reproduce any of the contents of 
186.2   the files at the teacher's expense and to submit for inclusion 
186.3   in the file written information in response to any material 
186.4   contained therein. 
186.5      A school district may destroy the files as provided by law 
186.6   and shall expunge from the teacher's file any material found to 
186.7   be false or substantially inaccurate through the grievance 
186.8   procedure required pursuant to section 179A.20, subdivision 4; 
186.9   provided, the grievance procedure promulgated by the director of 
186.10  the bureau of mediation services, pursuant to section 179A.04, 
186.11  subdivision 3, clause (h), shall apply to those principals and 
186.12  supervisory employees not included in an appropriate unit as 
186.13  defined in section 179A.03.  Expungement proceedings shall be 
186.14  commenced within the time period provided in the collective 
186.15  bargaining agreement for the commencement of a grievance.  If no 
186.16  time period is provided in the bargaining agreement, the 
186.17  expungement proceedings shall commence within 15 days after the 
186.18  teacher has knowledge of the inclusion in the teacher's file of 
186.19  the material the teacher seeks to have expunged.  
186.20     Sec. 9.  Minnesota Statutes 1996, section 126.77, 
186.21  subdivision 1, is amended to read: 
186.22     Subdivision 1.  [VIOLENCE PREVENTION CURRICULUM.] (a) The 
186.23  commissioner of children, families, and learning, in 
186.24  consultation with the commissioners of health and human 
186.25  services, state minority councils, battered women's programs, 
186.26  sexual assault centers, representatives of religious 
186.27  communities, and the assistant commissioner of the office of 
186.28  drug policy and violence prevention, shall assist districts on 
186.29  request in developing or implementing a violence prevention 
186.30  program for students in kindergarten to grade 12 that can be 
186.31  integrated into existing curriculum.  The purpose of the program 
186.32  is to help students learn how to resolve conflicts within their 
186.33  families and communities in nonviolent, effective ways.  
186.34     (b) Each district is encouraged to integrate into its 
186.35  existing curriculum a program for violence prevention that 
186.36  includes at least: 
187.1      (1) a comprehensive, accurate, and age appropriate 
187.2   curriculum on violence prevention, nonviolent conflict 
187.3   resolution, and sexual, racial, and cultural harassment, and 
187.4   student hazing that promotes equality, respect, understanding, 
187.5   effective communication, individual responsibility, thoughtful 
187.6   decision making, positive conflict resolution, useful coping 
187.7   skills, critical thinking, listening and watching skills, and 
187.8   personal safety; 
187.9      (2) planning materials, guidelines, and other accurate 
187.10  information on preventing physical and emotional violence, 
187.11  identifying and reducing the incidence of sexual, racial, and 
187.12  cultural harassment, and reducing child abuse and neglect; 
187.13     (3) a special parent education component of early childhood 
187.14  family education programs to prevent child abuse and neglect and 
187.15  to promote positive parenting skills, giving priority to 
187.16  services and outreach programs for at-risk families; 
187.17     (4) involvement of parents and other community members, 
187.18  including the clergy, business representatives, civic leaders, 
187.19  local elected officials, law enforcement officials, and the 
187.20  county attorney; 
187.21     (5) collaboration with local community services, agencies, 
187.22  and organizations that assist in violence intervention or 
187.23  prevention, including family-based services, crisis services, 
187.24  life management skills services, case coordination services, 
187.25  mental health services, and early intervention services; 
187.26     (6) collaboration among districts and SCs; 
187.27     (7) targeting early adolescents for prevention efforts, 
187.28  especially early adolescents whose personal circumstances may 
187.29  lead to violent or harassing behavior; 
187.30     (8) opportunities for teachers to receive in-service 
187.31  training or attend other programs on strategies or curriculum 
187.32  designed to assist students in intervening in or preventing 
187.33  violence in school and at home; and 
187.34     (9) administrative policies that reflect, and a staff that 
187.35  models, nonviolent behaviors that do not display or condone 
187.36  sexual, racial, or cultural harassment or student hazing. 
188.1      (c) The department may provide assistance at a neutral site 
188.2   to a nonpublic school participating in a district's program. 
188.3      Sec. 10.  Minnesota Statutes 1996, section 127.26, is 
188.4   amended to read: 
188.5      127.26 [CITATION.] 
188.6      Sections 127.26 to 127.39 may be cited as "The pupil fair 
188.7   dismissal act of 1974."  
188.8      Sec. 11.  Minnesota Statutes 1996, section 127.27, 
188.9   subdivision 5, is amended to read: 
188.10     Subd. 5.  [EXPULSION.] "Expulsion" means an action taken by 
188.11  a school board action to prohibit an enrolled pupil from further 
188.12  attendance for a period that shall not extend beyond an amount 
188.13  of time equal up to one school year 12 months from the date a 
188.14  the pupil is expelled. 
188.15     Sec. 12.  Minnesota Statutes 1996, section 127.27, 
188.16  subdivision 6, is amended to read: 
188.17     Subd. 6.  [PARENT.] "Parent" means (a) one of the pupil's 
188.18  parents, or (b) in the case of divorce or legal separation, or 
188.19  if the child's mother was not married to the child's father when 
188.20  the child was conceived nor when the child was born, the 
188.21  custodial parent the parent or parents with physical custody of 
188.22  the pupil, including a noncustodial parent with legal custody 
188.23  who has provided the district with a current address and 
188.24  telephone number, or (c) a legally appointed guardian.  In the 
188.25  case of a pupil with a disability under the age of 18, parent 
188.26  may include a district-appointed surrogate parent. 
188.27     Sec. 13.  Minnesota Statutes 1996, section 127.27, 
188.28  subdivision 7, is amended to read: 
188.29     Subd. 7.  [PUPIL.] "Pupil" means any student with or: 
188.30     (1) without a disability under 21 years of age; or 
188.31     (2) with a disability until September 1 after the child 
188.32  with a disability becomes 22 years of age; 
188.33     (3) and who remains eligible to attend a public elementary 
188.34  or secondary school. 
188.35     Sec. 14.  Minnesota Statutes 1996, section 127.27, 
188.36  subdivision 8, is amended to read: 
189.1      Subd. 8.  [SCHOOL.] "School" means any school as defined in 
189.2   Minnesota Statutes 1971, section 120.05, subdivision 2. 
189.3      Sec. 15.  Minnesota Statutes 1996, section 127.27, 
189.4   subdivision 10, is amended to read: 
189.5      Subd. 10.  [SUSPENSION.] "Suspension" means an action taken 
189.6   by the school administration, under rules promulgated by the 
189.7   school board, prohibiting a pupil from attending school for a 
189.8   period of no more than ten school days.  If a suspension is 
189.9   longer than five days, the suspending administrator must provide 
189.10  the superintendent with a reason for the longer suspension.  
189.11  This definition does not apply to dismissal from school for one 
189.12  school day or less.  Each suspension action shall include a 
189.13  readmission plan.  The readmission plan shall include, where 
189.14  appropriate, a provision for implementing alternative programs 
189.15  to be implemented educational services upon readmission.  
189.16  Suspension may not be consecutively imposed The school 
189.17  administration may not impose consecutive suspensions against 
189.18  the same pupil for the same course of conduct, or incident of 
189.19  misconduct, except where the pupil will create an immediate and 
189.20  substantial danger to self or to surrounding persons or 
189.21  property, or where the district is in the process of initiating 
189.22  an expulsion, in which case the school administration may extend 
189.23  the suspension up to 15 days.  In no event shall suspension 
189.24  exceed 15 school days, provided that an In the case of a pupil 
189.25  with a disability, a suspension may not exceed ten school days.  
189.26  The school administration shall implement alternative program 
189.27  shall be implemented educational services to the extent that 
189.28  suspension exceeds five days.  A separate administrative 
189.29  conference is required for each period of suspension. 
189.30     Sec. 16.  Minnesota Statutes 1996, section 127.27, is 
189.31  amended by adding a subdivision to read: 
189.32     Subd. 11.  [ALTERNATIVE EDUCATIONAL SERVICES.] "Alternative 
189.33  educational services" may include, but are not limited to, 
189.34  special tutoring, modified curriculum, modified instruction, 
189.35  other modifications or adaptations, special education services 
189.36  as indicated by appropriate assessment, homebound instruction, 
190.1   or enrollment in another district or in an alternative learning 
190.2   center under section 124C.45. 
190.3      Sec. 17.  Minnesota Statutes 1996, section 127.281, is 
190.4   amended to read: 
190.5      127.281 [EXCLUSION AND EXPULSION OF PUPILS WITH A 
190.6   DISABILITY.] 
190.7      When a pupil who has an individual education plan is 
190.8   excluded or expelled under sections 127.26 to 127.39 for 
190.9   misbehavior that is not a manifestation of the pupil's disabling 
190.10  condition disability, the district shall continue to provide 
190.11  special education and related services after a period of 
190.12  suspension, if suspension is imposed.  The district shall 
190.13  initiate a review of the pupil's individual education plan 
190.14  within ten five school days of the commencement of commencing an 
190.15  expulsion, exclusion, or a suspension of ten days or more.  
190.16     Sec. 18.  Minnesota Statutes 1996, section 127.29, is 
190.17  amended to read: 
190.18     127.29 [GROUNDS FOR DISMISSAL.] 
190.19     Subdivision 1.  No school shall dismiss any pupil without 
190.20  attempting to provide alternative programs of education prior to 
190.21  dismissal educational services before dismissal proceedings, 
190.22  except where it appears that the pupil will create an immediate 
190.23  and substantial danger to self or to surrounding persons or 
190.24  property.  Such programs may include special tutoring, 
190.25  modification of the curriculum for the pupil, placement in a 
190.26  special class or assistance from other agencies. 
190.27     Subd. 2.  A pupil may be dismissed on any of the following 
190.28  grounds: 
190.29     (a) willful violation of any reasonable school board 
190.30  regulation.  Such regulation must be clear and definite to 
190.31  provide notice to pupils that they must conform their conduct to 
190.32  its requirements; 
190.33     (b) willful conduct which that materially and substantially 
190.34  disrupts the rights of others to an education; or 
190.35     (c) willful conduct which that endangers the pupil or other 
190.36  pupils, or the surrounding persons, or property of the school. 
191.1      Sec. 19.  Minnesota Statutes 1996, section 127.30, 
191.2   subdivision 1, is amended to read: 
191.3      Subdivision 1.  No suspension The school administration 
191.4   shall not suspend a pupil from school shall be imposed without 
191.5   an informal administrative conference with the pupil, except.  
191.6   The informal administrative conference shall take place before 
191.7   the suspension, except where it appears that the pupil will 
191.8   create an immediate and substantial danger to self or to 
191.9   surrounding persons or property, in which case the conference 
191.10  shall take place as soon as practicable following the suspension.
191.11     Sec. 20.  Minnesota Statutes 1996, section 127.30, is 
191.12  amended by adding a subdivision to read: 
191.13     Subd. 1a.  At the informal administrative conference, a 
191.14  school administrator shall notify the pupil of the grounds for 
191.15  the suspension, provide an explanation of the evidence the 
191.16  authorities have, and the pupil may present the pupil's version 
191.17  of the facts. 
191.18     Sec. 21.  Minnesota Statutes 1996, section 127.30, 
191.19  subdivision 2, is amended to read: 
191.20     Subd. 2.  A written notice containing the grounds for 
191.21  suspension, a brief statement of the facts, a description of the 
191.22  testimony, a readmission plan, and a copy of sections 127.26 to 
191.23  127.39, shall be personally served upon the pupil at or before 
191.24  the time the suspension is to take effect, and upon the pupil's 
191.25  parent or guardian by certified mail within 48 hours of the 
191.26  conference.  The district shall make reasonable efforts to 
191.27  notify the parents of the suspension by telephone as soon as 
191.28  possible following suspension.  In the event a pupil is 
191.29  suspended without an informal administrative conference on the 
191.30  grounds that the pupil will create an immediate and substantial 
191.31  danger to surrounding persons or property, the written notice 
191.32  shall be served either personally or by certified mail upon the 
191.33  pupil and the pupil's parent or guardian within 48 hours of the 
191.34  suspension.  Service by certified mail is complete upon mailing. 
191.35     Sec. 22.  Minnesota Statutes 1996, section 127.30, 
191.36  subdivision 3, is amended to read: 
192.1      Subd. 3.  Notwithstanding the provisions of subdivisions 1 
192.2   and 2, the pupil may be suspended pending the school board's 
192.3   decision in the expulsion or exclusion hearing; provided that an 
192.4   alternative program shall be educational services are 
192.5   implemented to the extent that suspension exceeds five days. 
192.6      Sec. 23.  Minnesota Statutes 1996, section 127.31, 
192.7   subdivision 2, is amended to read: 
192.8      Subd. 2.  Written notice of intent to take action shall: 
192.9      (a) be served upon the pupil and the pupil's parent or 
192.10  guardian personally or by certified mail; 
192.11     (b) contain a complete statement of the facts, a list of 
192.12  the witnesses and a description of their testimony; 
192.13     (c) state the date, time, and place of the hearing; 
192.14     (d) be accompanied by a copy of sections 127.26 to 127.39; 
192.15     (e) describe alternative educational programs services 
192.16  accorded the pupil prior to commencement of in an attempt to 
192.17  avoid the expulsion or exclusion proceedings; and 
192.18     (f) inform the pupil and parent or guardian of the right to:
192.19     (1) have a representative of the pupil's own choosing, 
192.20  including legal counsel, at the hearing.  The district shall 
192.21  advise the pupil's parent or guardian that free or low-cost 
192.22  legal assistance may be available and that a legal assistance 
192.23  resource list is available from the department of children, 
192.24  families, and learning; 
192.25     (2) examine the pupil's records before the hearing; 
192.26     (3) present evidence; and 
192.27     (4) confront and cross-examine witnesses.  
192.28     Sec. 24.  Minnesota Statutes 1996, section 127.31, 
192.29  subdivision 7, is amended to read: 
192.30     Subd. 7.  The hearing shall take place before: 
192.31     (a) (1) an independent hearing officer; 
192.32     (b) (2) a member of the school board; 
192.33     (c) (3) a committee of the school board,; or; 
192.34     (d) (4) the full school board; 
192.35  as determined by the school board.  The hearing shall be 
192.36  conducted in a fair and impartial manner. 
193.1      Sec. 25.  Minnesota Statutes 1996, section 127.31, 
193.2   subdivision 8, is amended to read: 
193.3      Subd. 8.  The proceedings of the hearing shall be recorded 
193.4   and preserved, at the expense of the school district, pending 
193.5   ultimate disposition of the action.  The school board shall 
193.6   record the hearing proceedings at district expense, and a party 
193.7   may obtain a transcript at its own expense.  Testimony shall be 
193.8   given under oath.  The hearing officer or a member of the school 
193.9   board shall have the power to issue subpoenas and administer 
193.10  oaths.  
193.11     Sec. 26.  Minnesota Statutes 1996, section 127.31, 
193.12  subdivision 13, is amended to read: 
193.13     Subd. 13.  The recommendation of the hearing officer or 
193.14  school board member or committee shall be based solely upon 
193.15  substantial evidence presented at the hearing and must be made 
193.16  to the school board and served upon the parties within two days 
193.17  of the end of the hearing.  
193.18     Sec. 27.  Minnesota Statutes 1996, section 127.31, 
193.19  subdivision 14, is amended to read: 
193.20     Subd. 14.  The decision by The school board shall be based 
193.21  base its decision upon the recommendation of the hearing officer 
193.22  or school board member or committee and shall be rendered render 
193.23  its decision at a special meeting held within five days after 
193.24  receipt of receiving the recommendation.  The school board may 
193.25  provide the parties with the opportunity to present exceptions 
193.26  and comments to the hearing officer's recommendations provided 
193.27  that neither party presents any evidence not admitted at the 
193.28  hearing.  The decision shall by the school board must be based 
193.29  on the record, must be in writing, and must state the 
193.30  controlling facts found upon on which the decision is made shall 
193.31  be stated in sufficient detail to apprise the parties and the 
193.32  commissioner of children, families, and learning of the basis 
193.33  and reason for the decision. 
193.34     Sec. 28.  Minnesota Statutes 1996, section 127.31, 
193.35  subdivision 15, is amended to read: 
193.36     Subd. 15.  [ADMISSION OR READMISSION PLAN.] A school board 
194.1   may administrator shall prepare and enforce an admission or 
194.2   readmission plan for any pupil who is suspended, excluded, or 
194.3   expelled from school.  The plan may include measures to improve 
194.4   the pupil's behavior and require parental involvement in the 
194.5   admission or readmission process, and may indicate the 
194.6   consequences to the pupil of not improving the pupil's behavior. 
194.7      Sec. 29.  Minnesota Statutes 1996, section 127.311, is 
194.8   amended to read: 
194.9      127.311 [GOOD FAITH EXCEPTION.] 
194.10     A violation of the technical provisions of the pupil fair 
194.11  dismissal act of 1974, made in good faith, is not a defense to a 
194.12  disciplinary procedure under the act unless the pupil can 
194.13  demonstrate actual prejudice as a result of the violation. 
194.14     Sec. 30.  Minnesota Statutes 1996, section 127.32, is 
194.15  amended to read: 
194.16     127.32 [APPEAL.] 
194.17     A party to an exclusion or expulsion decision made pursuant 
194.18  to under sections 127.26 to 127.39 may be appealed appeal the 
194.19  decision to the commissioner of children, families, and learning 
194.20  within 21 calendar days of school board action.  Upon being 
194.21  served with a notice of appeal, the district shall provide the 
194.22  commissioner and the parent or guardian with a complete copy of 
194.23  the hearing record within five days of its receipt of the notice 
194.24  of appeal.  All written submissions by the appellant must be 
194.25  submitted and served on the respondent within ten days of its 
194.26  actual receipt of the transcript.  All written submissions by 
194.27  the respondent must be submitted and served on the appellant 
194.28  within ten days of its actual receipt of the written submissions 
194.29  of the appellant. 
194.30     In an appeal under this section, the commissioner may 
194.31  affirm the decision of the agency or may reverse or modify the 
194.32  decision if the substantial rights of the petitioners may have 
194.33  been prejudiced because the administrative findings, inferences, 
194.34  conclusions, or decisions are: 
194.35     (1) in violation of constitutional provisions; 
194.36     (2) in excess of the statutory authority or jurisdiction of 
195.1   the school district; 
195.2      (3) made upon unlawful procedure, except as provided in 
195.3   section 127.311; 
195.4      (4) affected by other error of law; 
195.5      (5) unsupported by substantial evidence in view of the 
195.6   entire record submitted; or 
195.7      (6) arbitrary or capricious. 
195.8   The commissioner or the commissioner's representative shall make 
195.9   a final decision based upon a the record of evidence presented 
195.10  at the hearing.  Such ruling shall be binding upon the parties, 
195.11  subject to judicial review as provided in section 127.33.  The 
195.12  commissioner shall issue a decision within 30 calendar days of 
195.13  receiving the entire record and the parties' written submission 
195.14  on appeal.  The commissioner's decision shall be final and 
195.15  binding upon the parties after the time for appeal expires under 
195.16  section 127.33. 
195.17     Sec. 31.  Minnesota Statutes 1996, section 127.33, is 
195.18  amended to read: 
195.19     127.33 [JUDICIAL REVIEW.] 
195.20     The decision of the commissioner of children, families, and 
195.21  learning made pursuant to under sections 127.26 to 127.39 shall 
195.22  be is subject to judicial review in accordance with chapter 14 
195.23  under sections 14.63 to 14.69.  The decision of the commissioner 
195.24  is stayed pending an appeal under this section. 
195.25     Sec. 32.  Minnesota Statutes 1996, section 127.36, is 
195.26  amended to read: 
195.27     127.36 [REPORT TO COMMISSIONER OF CHILDREN, FAMILIES, AND 
195.28  LEARNING.] 
195.29     Subdivision 1.  [EXCLUSIONS AND EXPULSIONS.] The school 
195.30  board shall report each exclusion or expulsion within 30 days of 
195.31  the effective date of the action to the commissioner of 
195.32  children, families, and learning.  This report shall include a 
195.33  statement of alternative programs of education accorded 
195.34  educational services given the pupil prior to the commencement 
195.35  of before beginning exclusion or expulsion proceedings, and the 
195.36  reason for, the effective date, and the duration of the 
196.1   exclusion or expulsion.  
196.2      Subd. 2.  [REPORT.] The school board must include state 
196.3   student identification numbers of affected pupils on all 
196.4   dismissal reports required by the department.  The department 
196.5   must report annually to the commissioner summary data on the 
196.6   number of dismissals by age, grade, gender, race, and special 
196.7   education status of the affected pupils. 
196.8      Sec. 33.  Minnesota Statutes 1996, section 127.37, is 
196.9   amended to read: 
196.10     127.37 [NOTICE OF RIGHT TO BE REINSTATED.] 
196.11     Whenever a pupil fails to return to school within ten 
196.12  school days of the termination of dismissal, a school 
196.13  administrator shall inform the pupil and the pupil's 
196.14  parents shall be informed by certified mail of the pupil's right 
196.15  to attend and to be reinstated in the public school.  
196.16     Sec. 34.  Minnesota Statutes 1996, section 127.38, is 
196.17  amended to read: 
196.18     127.38 [POLICIES TO BE ESTABLISHED.] 
196.19     (a) The commissioner of children, families, and learning 
196.20  shall promulgate guidelines to assist each school board.  Each 
196.21  school board shall establish uniform criteria for dismissal and 
196.22  adopt written policies and rules in writing to effectuate the 
196.23  purposes of sections 127.26 to 127.39.  The policies will shall 
196.24  emphasize the prevention of dismissal action preventing 
196.25  dismissals through early detection of problems.  The policies 
196.26  shall recognize the continuing responsibility of the school for 
196.27  the education of the pupil during the dismissal period.  The 
196.28  alternative educational services, if the pupil wishes to take 
196.29  advantage of them, must be adequate to allow the pupil to make 
196.30  progress towards meeting the graduation standards adopted under 
196.31  section 121.11, subdivision 7c, and help prepare the pupil for 
196.32  readmission.  
196.33     (b) An area learning center under section 124C.45 may not 
196.34  prohibit an expelled or excluded pupil from enrolling solely 
196.35  because a district expelled or excluded the pupil.  The board of 
196.36  the area learning center may use the provisions of the Pupil 
197.1   Fair Dismissal Act to exclude a pupil or to require an admission 
197.2   plan. 
197.3      (c) The commissioner shall actively encourage and assist 
197.4   school districts to cooperatively establish alternative learning 
197.5   programs educational services that offer instruction to pupils 
197.6   who are dismissed from school for willfully engaging in 
197.7   dangerous, disruptive, or violent behavior, including for 
197.8   possessing a firearm in a school zone. 
197.9      Sec. 35.  [127.465] [HAZING POLICY.] 
197.10     Subdivision 1.  [DEFINITIONS.] (a) "Hazing" means 
197.11  committing an act against a student, or coercing a student into 
197.12  committing an act, that creates a substantial risk of harm to a 
197.13  person in order for the student to be initiated into or 
197.14  affiliated with a student organization. 
197.15     (b) "Student organization" means a group, club, or 
197.16  organization having students as its primary members or 
197.17  participants. 
197.18     Subd. 2.  [MODEL POLICY.] The commissioner of children, 
197.19  families, and learning shall maintain and make available to 
197.20  school boards a model policy on student or staff hazing that 
197.21  addresses the requirements of subdivision 3.  
197.22     Subd. 3.  [SCHOOL BOARD POLICY.] Each school board shall 
197.23  adopt a written policy governing student or staff hazing.  The 
197.24  policy must apply to student behavior that occurs on or off 
197.25  school property and during and after school hours.  The policy 
197.26  must include reporting procedures and disciplinary consequences 
197.27  for violating the policy.  Disciplinary consequences must be 
197.28  sufficiently severe to deter violations and appropriately 
197.29  discipline prohibited behavior.  Disciplinary consequences must 
197.30  conform with sections 127.27 to 127.39.  Each school must 
197.31  include the policy in the student handbook on school policies. 
197.32     Sec. 36.  Minnesota Statutes 1996, section 128C.02, 
197.33  subdivision 2, is amended to read: 
197.34     Subd. 2.  [SEXUAL HARASSMENT AND VIOLENCE; HAZING.] The 
197.35  board of the league shall adopt a policy, rules, penalties, and 
197.36  recommendations addressing sexual harassment and sexual violence 
198.1   and hazing toward and by participants in league activities. 
198.2      Sec. 37.  Minnesota Statutes 1996, section 128C.02, is 
198.3   amended by adding a subdivision to read: 
198.4      Subd. 9.  [BUDGET.] The league is subject to the 
198.5   commissioner of finance's rules and instructions governing 
198.6   budget preparation.  The league budget must be submitted to the 
198.7   commissioner of finance and to the legislature in the same 
198.8   manner as budgets of executive branch agencies. 
198.9      Sec. 38.  Minnesota Statutes 1996, section 128C.12, 
198.10  subdivision 1, is amended to read: 
198.11     Subdivision 1.  [DUES AND EVENTS REVENUE.] The state 
198.12  auditor annually must examine the accounts of, and audit all 
198.13  money paid to, the state high school league by its members.  The 
198.14  audit must include financial and compliance issues.  The state 
198.15  auditor must also audit all money derived from any event 
198.16  sponsored by the league and review any private audits done for 
198.17  the league.  League audits must include audits of administrative 
198.18  regions of the league.  The league and its administrative 
198.19  regions may not contract with private auditors.  The scope of 
198.20  the state auditor's examinations of the league must be agreed 
198.21  upon by the board and the state auditor, provided that all 
198.22  requirements of this section must be met. 
198.23     Sec. 39.  [128C.13] [INVESTMENT.] 
198.24     The governing board of the league may request the state 
198.25  board of investment to invest nonretirement funds of the league, 
198.26  and the state board of investment may invest these funds when 
198.27  requested. 
198.28     Sec. 40.  [135A.081] [REMEDIAL INSTRUCTION; HIGH SCHOOL 
198.29  DIPLOMA WARRANTY.] 
198.30     Subdivision 1.  [CONDITIONS.] A public post-secondary 
198.31  institution may provide remedial instruction if within 12 months 
198.32  of first enrollment, the institution determines that the 
198.33  student's English language reading or writing ability, or the 
198.34  student's mathematic ability does not rise to the level that is 
198.35  a necessary prerequisite to minimally acceptable comprehension 
198.36  of entry level courses or programs at the institution. 
199.1      Subd. 2.  [CONFIRMATION.] The institution's determination 
199.2   of a student's substandard ability is confirmed if the student 
199.3   scores below 12th grade level in a standardized test in any of 
199.4   the following areas covered by the determination:  English 
199.5   language reading comprehension, English language composition, or 
199.6   mathematics. 
199.7      Subd. 3.  [HIGH SCHOOL DIPLOMA WARRANTY COVERAGE.] (a) If a 
199.8   student who graduated from a public high school scores below the 
199.9   8th grade level on a confirming test, the student's high school 
199.10  shall pay the tuition for the student for all remedial courses 
199.11  in the area covered by the confirming test that the student 
199.12  takes in the first year after the student's graduation from high 
199.13  school.  The student's high school shall pay one-half of the 
199.14  tuition for the student for all remedial courses in the area 
199.15  covered by the confirming test that the student takes in the 
199.16  second year after the student's graduation from high school.  
199.17  This subdivision shall apply to students graduating from a 
199.18  public high school on or after May 1, 1999. 
199.19     (b) The payment of tuition by the public high school shall 
199.20  be waived if the high school can demonstrate, through the 
199.21  results of a standardized test, that the student had attained 
199.22  8th grade level performance in the area covered by the 
199.23  confirming test prior to graduation. 
199.24     Subd. 4.  [NO CREDITS; STUDENT COSTS.] A post-secondary 
199.25  institution providing remedial instruction under this section 
199.26  must not award credit to a student toward a degree or program 
199.27  completion for remedial instruction provided under this section. 
199.28     Subd. 5.  [JUST CLAIM.] A request for payment for remedial 
199.29  instruction to a student under this section is, under section 
199.30  123.40, subdivision 1, a just claim against the school district 
199.31  that includes the student's high school. 
199.32     Sec. 41.  [135A.155] [HAZING POLICY.] 
199.33     The board of trustees of the Minnesota state colleges and 
199.34  universities shall, and the University of Minnesota is requested 
199.35  to, adopt a clear, understandable written policy on student 
199.36  conduct, including hazing.  The policy must include procedures 
200.1   for reporting incidents of inappropriate hazing and for 
200.2   disciplinary actions against individual violators and 
200.3   organizations.  The policy must be provided to students when 
200.4   they register and must be posted at appropriate locations on 
200.5   campus.  A private post-secondary institution that is an 
200.6   eligible institution as defined in section 136A.101, subdivision 
200.7   4, must adopt a policy that meets the requirements of this 
200.8   section. 
200.9      Sec. 42.  Minnesota Statutes 1996, section 245.91, 
200.10  subdivision 2, is amended to read: 
200.11     Subd. 2.  [AGENCY.] "Agency" means the divisions, 
200.12  officials, or employees of the state departments of human 
200.13  services and, health, children, families, and learning, and of 
200.14  local school districts and designated county social service 
200.15  agencies as defined in section 256G.02, subdivision 7, that are 
200.16  engaged in monitoring, providing, or regulating services or 
200.17  treatment for mental illness, mental retardation or a related 
200.18  condition, chemical dependency, or emotional disturbance. 
200.19     Sec. 43.  [PROTECTIVE SOFTWARE.] 
200.20     Subdivision 1.  [SOFTWARE RECOMMENDATIONS.] The 
200.21  commissioner of children, families, and learning shall research, 
200.22  evaluate, and make recommendations to school districts on 
200.23  computer software products that filter, block, or otherwise 
200.24  prevent the use of school computers for the transmission of any 
200.25  comment, request, suggestion, proposal, image, or other 
200.26  communication which is: 
200.27     (1) obscene, indecent, or sexually explicit; or 
200.28     (2) intended to promote or incite violence against other 
200.29  living persons. 
200.30     Subd. 2.  [SCHOOL DISTRICTS.] Within one year of the 
200.31  commissioner completing the requirements of subdivision 1, each 
200.32  school district must adopt a policy on Internet usage. 
200.33     Sec. 44.  [CONSULTATION.] 
200.34     The commissioner of children, families, and learning shall 
200.35  consult with the Minnesota school board association in preparing 
200.36  the model hazing policy under Minnesota Statutes, section 
201.1   127.465. 
201.2      Sec. 45.  [CLASS SIZE PROJECT.] 
201.3      A class size project is established in independent school 
201.4   district No. 12, Centennial.  The purpose of this project is to 
201.5   establish that significantly lower class size and 
201.6   instructor-to-learner ratios in a suburban community will result 
201.7   in measurable achievements for students, staff, and parents. 
201.8      Sec. 46.  [INSTRUCTIONAL DAY CLARIFICATION.] 
201.9      (a) This section applies to any school district employee 
201.10  who was scheduled to work on January 16, 1997, did not work on 
201.11  that day, and did not receive compensation for that day. 
201.12     (b) Notwithstanding any law to the contrary, a school 
201.13  district must either:  (1) allow any school district employee 
201.14  under paragraph (a) the opportunity to work on another day that 
201.15  the school district designates and must compensate the employee 
201.16  working on the designated day at the employee's normal rate of 
201.17  pay; or (2) compensate any school district employee under 
201.18  paragraph (a) for that day at the employee's normal rate of pay. 
201.19     Sec. 47.  [PARTNERS FOR QUALITY SCHOOL IMPROVEMENT PILOT 
201.20  TRAINING PROGRAM.] 
201.21     Subdivision 1.  [ESTABLISHMENT.] The school improvement 
201.22  training and performance pilot program is established to 
201.23  accelerate school quality and performance improvement 
201.24  initiatives that lead to improved student achievement in both 
201.25  high-performing and under-performing schools. 
201.26     Subd. 2.  [ELIGIBILITY.] A school district is eligible to 
201.27  apply for a grant to establish one or more school improvement 
201.28  training and performance sites.  The application and selection 
201.29  process must be developed and implemented by the Minnesota 
201.30  academic excellence foundation and reviewed by the commissioner 
201.31  of children, families, and learning.  Priority for participation 
201.32  must be given to school districts in which: 
201.33     (1) the district has received an educational performance 
201.34  improvement grant under Laws 1994, chapter 647, article 7, 
201.35  section 18, and has demonstrated improvement in student learning 
201.36  as a result of the grant; 
202.1      (2) one school or the district has completed training in a 
202.2   statewide quality improvement initiative; 
202.3      (3) the district has demonstrated accountability by 
202.4   developing and communicating an agenda to increase student 
202.5   learning; 
202.6      (4) there are significant numbers of students with critical 
202.7   learning needs and gaps in learning between these students and 
202.8   other groups of students; and 
202.9      (5) site-based management is being implemented. 
202.10     Subd. 3.  [PROGRAM SERVICES.] The Minnesota academic 
202.11  excellence foundation must provide training and technical 
202.12  assistance to selected districts to: 
202.13     (1) create plans for the districtwide deployment of quality 
202.14  improvement training to all staff; 
202.15     (2) create a means for identifying and providing remedial, 
202.16  interventive, or preventive assistance to schools in the 
202.17  district, based upon the schools' performances against state and 
202.18  local goals and standards; 
202.19     (3) accelerate school performance and student learning in 
202.20  high-performing and under-performing schools; and 
202.21     (4) train quality program trainers at each site. 
202.22     Subd. 4.  [SCHOOL DISTRICT PARTICIPANTS.] Selected 
202.23  districts must enter into a contract to achieve increases in 
202.24  student learning, staff development and performance, and 
202.25  administrative support services to schools within the district.  
202.26  Additionally, each selected district must: 
202.27     (1) plan and deploy quality improvement and other training 
202.28  to all staff in the district; 
202.29     (2) establish quality and performance goals and measure 
202.30  results and report the achieved results at the selected school 
202.31  sites; and 
202.32     (3) assist in duplicating successful programs in other 
202.33  districts by providing training to other school districts for a 
202.34  period of up to four years, in collaboration with the Minnesota 
202.35  academic excellence foundation. 
202.36     Subd. 5.  [REPORT.] The Minnesota academic excellence 
203.1   foundation must report to the commissioner of children, 
203.2   families, and learning on the progress of the project and 
203.3   annually on the results of the project. 
203.4      Sec. 48.  [GRANT PROGRAM FOR VIOLENCE PREVENTION THROUGH 
203.5   THE DEVELOPMENT OF PLAYS, WORKSHOPS, AND EDUCATIONAL RESOURCES.] 
203.6      Subdivision 1.  [GRANT PROGRAM.] The commissioner shall 
203.7   administer a grant program to fund statewide programs to create 
203.8   and develop theatrical plays, workshops, and educational 
203.9   resources based on peer education models that promote increased 
203.10  awareness and prevention of sexual abuse, interpersonal 
203.11  violence, emotional violence, and sexual harassment.  Programs 
203.12  eligible for grants must use a combination of theater 
203.13  professionals and prevention specialists in the delivery of the 
203.14  service and use a peer education model that uses researched and 
203.15  proven content in training youth to perform in the plays and 
203.16  workshops.  Programs must provide the source material, the 
203.17  training program, develop the educational materials, and provide 
203.18  technical assistance. 
203.19     Subd. 2.  [GRANT PROCEDURE.] Programs may apply for a grant 
203.20  by submitting an application to the commissioner.  The 
203.21  commissioner may distribute grants to one or more programs 
203.22  meeting the criteria described in subdivision 1. 
203.23     Sec. 49.  [EXEMPTION TO LABOR DAY SCHOOL START 
203.24  RESTRICTION.] 
203.25     Subdivision 1.  [1998-1999 AND 1999-2000 SCHOOL 
203.26  YEARS.] Notwithstanding Minnesota Statutes, section 126.12, 
203.27  subdivision 1, for the 1998-1999 and 1999-2000 school years 
203.28  only, a school board may begin the elementary or secondary 
203.29  school year on the Wednesday, Thursday, or Friday prior to Labor 
203.30  Day. 
203.31     Subd. 2.  [COLUMBIA HEIGHTS.] Notwithstanding Minnesota 
203.32  Statutes, section 126.12, subdivision 1, independent school 
203.33  district No. 13, Columbia Heights, may begin the school year 
203.34  before Labor Day only by the number of days necessary to 
203.35  accommodate the district building construction and remodeling 
203.36  project. 
204.1      Subd. 3.  [CROOKSTON.] Notwithstanding Minnesota Statutes, 
204.2   section 126.12, subdivision 1, independent school district No. 
204.3   593, Crookston, may begin the 1997-1998 school year the 
204.4   Wednesday before Labor Day to accommodate the transition into 
204.5   the new high school and the renovated junior high school 
204.6   building. 
204.7      Subd. 4.  [GRAND RAPIDS.] Notwithstanding Minnesota 
204.8   Statutes, section 126.12, subdivision 1, independent school 
204.9   district No. 318, Grand Rapids, may begin the 1997-1998 school 
204.10  year before Labor Day only by the number of days necessary to 
204.11  accommodate the district building construction project. 
204.12     Subd. 5.  [ISLE.] Notwithstanding Minnesota Statutes, 
204.13  section 126.12, subdivision 1, for the 1997-1998 school year, 
204.14  independent school district No. 473, Isle, may begin the 
204.15  elementary and secondary school year on August 18, 1997, in 
204.16  order for the school district to complete its conversion of an 
204.17  existing elementary school to a K-12 facility before the 
204.18  beginning of the 1998-1999 school year. 
204.19     Subd. 6.  [LAKE PARK; AUDUBON.] Notwithstanding Minnesota 
204.20  Statutes, section 126.12, subdivision 1, for the 1997-1998 
204.21  school year, independent school district Nos. 24, Lake Park, and 
204.22  21, Audubon, may begin the elementary and secondary school year 
204.23  on August 25, 1997, in order for independent school district No. 
204.24  24, Lake Park, to accommodate its building renovation schedule 
204.25  at the end of that school year. 
204.26     Subd. 7.  [NEW PRAGUE.] Notwithstanding Minnesota Statutes, 
204.27  section 126.12, subdivision 1, independent school district No. 
204.28  721, New Prague, may begin the 1997-1998 school year prior to 
204.29  Labor Day only by the number of days necessary to accommodate 
204.30  the district building and remodeling project. 
204.31     Subd. 8.  [WAYZATA.] Notwithstanding Minnesota Statutes, 
204.32  section 126.12, subdivision 1, independent school district No. 
204.33  284, Wayzata, may begin the 1997-1998 school year prior to Labor 
204.34  Day only by the number of days necessary to accommodate the 
204.35  transition into the new senior high school building. 
204.36     Sec. 50.  [FUND TRANSFERS.] 
205.1      Subdivision 1.  [HILL CITY.] (a) Notwithstanding Minnesota 
205.2   Statutes, section 121.912 or 121.9121, on June 30, 1997, 
205.3   independent school district No. 2, Hill City, may permanently 
205.4   transfer up to $55,000 from its general fund to its debt 
205.5   redemption fund for the purpose of repaying the principal and 
205.6   any interest owed on its outstanding debt service loans.  Any 
205.7   amount transferred but not used to repay the debt service loans 
205.8   must be applied to the district's outstanding capital loan 
205.9   balance. 
205.10     (b) The commissioner of children, families, and learning 
205.11  shall recompute the general education fund balance reduction for 
205.12  fiscal year 1997 for independent school district No. 2, Hill 
205.13  City.  For purposes of this reduction, the commissioner shall 
205.14  lower the district's net unappropriated operating balance as of 
205.15  June 30, 1996, by the amount that is transferred from the 
205.16  general fund to the debt redemption fund under paragraph (a). 
205.17     General education aid for fiscal year 1997 for independent 
205.18  school district No. 2, Hill City, must be adjusted according to 
205.19  this subdivision. 
205.20     The general education levy attributable to fiscal year 1997 
205.21  for independent school district No. 2, Hill City, must be 
205.22  adjusted according to this subdivision. 
205.23     Subd. 2.  [FERGUS FALLS.] Notwithstanding Minnesota 
205.24  Statutes, sections 121.912, 121.9121, and 475.61, subdivision 4, 
205.25  on June 30, 1997, independent school district No. 544, Fergus 
205.26  Falls, may permanently transfer up to $202,000 from its debt 
205.27  redemption fund to its building construction fund without making 
205.28  a levy reduction. 
205.29     Subd. 3.  [FOSSTON.] Notwithstanding Minnesota Statutes, 
205.30  sections 121.912, 121.9121, and 475.61, subdivision 4, on June 
205.31  30, 1997, independent school district No. 601, Fosston, may 
205.32  permanently transfer up to $105,000 from the debt redemption 
205.33  fund to its building construction fund without making a levy 
205.34  reduction. 
205.35     Subd. 4.  [MEDFORD.] Notwithstanding Minnesota Statutes, 
205.36  sections 121.912 and 121.9121, independent school district No. 
206.1   763, Medford, may permanently transfer up to a total of $200,000 
206.2   by June 30, 1998, from reserve accounts in the general fund to 
206.3   the unreserved general fund.  The transfers may be made from 
206.4   either the bus purchase account or from the reserve for 
206.5   operating capital account.  Transfers from the bus purchase 
206.6   account may be made without making a levy reduction. 
206.7      Subd. 5.  [BELGRADE-BROOTEN-ELROSA.] Notwithstanding 
206.8   Minnesota Statutes, sections 121.912 and 121.9121, on June 30, 
206.9   1997, independent school district No. 2364, 
206.10  Belgrade-Brooten-Elrosa, may permanently transfer up to $250,000 
206.11  from the bus purchase account to its general fund. 
206.12     Sec. 51.  [CONVEYANCE OF TRUST FUND LANDS; MCLEOD COUNTY.] 
206.13     Notwithstanding Special Laws 1858, chapter 21, as amended 
206.14  by Special Laws 1865, chapter 7; Minnesota Statutes 1866, 
206.15  chapter 35, title 1; Special Laws 1868, chapter 114; or any 
206.16  other law to the contrary, the McLeod county board of 
206.17  commissioners may transfer its existing authority to appoint the 
206.18  trustees of the Stevens Seminary to the Glencoe-Silver Lake 
206.19  school board.  The board may also transfer any other authority 
206.20  held by the board over the trustees to the school board. 
206.21     Sec. 52.  [INDEPENDENT SCHOOL DISTRICT NO. 4, MCGREGOR; 
206.22  LEVY.] 
206.23     Independent school district No. 4, McGregor, may levy, with 
206.24  the approval of the commissioner, to eliminate a deficit in the 
206.25  net unappropriated balance in the operating funds of the 
206.26  district, determined and adjusted and certified by the 
206.27  commissioner as of June 30, 1997.  This amount shall be reduced 
206.28  by referendum revenue authorized under Minnesota Statutes, 
206.29  section 124A.03, pursuant to a plan filed under Minnesota 
206.30  Statutes, section 121.917, and any other revenue made available 
206.31  for this purpose.  The total levy for all years it is made shall 
206.32  not exceed the amount of the deficit.  The proceeds of this levy 
206.33  or other available revenue shall only be used for cash flow 
206.34  requirements and shall not be used to supplement district 
206.35  revenue or income. 
206.36     Sec. 53.  [HIGH SCHOOL LEAGUE COMPENSATION PLAN.] 
207.1      The current total compensation plan for the executive 
207.2   director and for all other league employees shall be reviewed by 
207.3   the commissioner of employee relations.  In considering total 
207.4   compensation for league employees, the commissioner of employee 
207.5   relations shall compare league compensation to the compensation 
207.6   of other Minnesota state employees and school district 
207.7   employees, taking account of the knowledge, skills, 
207.8   responsibilities, and working conditions of the jobs. 
207.9      Sec. 54.  [MODEL STUDENT BILL OF RIGHTS AND 
207.10  RESPONSIBILITIES.] 
207.11     The commissioner of children, families, and learning shall 
207.12  maintain and make available to school boards a model student 
207.13  bill of rights and responsibilities.  The commissioner shall 
207.14  develop the model policy, in consultation with students involved 
207.15  in YMCA youth in government, Project 120, governor's scholars, 
207.16  the student council association, and other student groups. 
207.17     Sec. 55.  [STATE BOARD OF EDUCATION.] 
207.18     The state board of education shall amend its guidelines for 
207.19  approving experimental management systems to eliminate the 
207.20  requirement for renewal after initial approval of an 
207.21  experimental management arrangement. 
207.22     Sec. 56.  [TEACHER RETIREMENT.] 
207.23     (a) Notwithstanding Minnesota Statutes, section 354.41, 
207.24  subdivision 4, a person who is a member of the teacher 
207.25  retirement association and is employed by the Minnesota 
207.26  federation of teachers or its affiliated branches within the 
207.27  state or by the Minnesota education association on July 1, 1997, 
207.28  may remain a coordinated member. 
207.29     (b) Notwithstanding Minnesota Statutes, section 354.41, 
207.30  subdivision 5, payments of the applicable employee 
207.31  contributions, employer contributions, and additional employer 
207.32  contributions under Minnesota Statutes, section 354.42, 
207.33  subdivisions 2, 3, and 5, must be made in a lump sum to the 
207.34  association on or before June 30 of each fiscal year. 
207.35     Sec. 57.  [APPROPRIATIONS.] 
207.36     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
208.1   LEARNING.] The sums indicated in this section are appropriated 
208.2   from the general fund to the department of children, families, 
208.3   and learning for the fiscal years designated. 
208.4      Subd. 2.  [PARTNERS FOR QUALITY SCHOOL IMPROVEMENT.] For 
208.5   the school improvement pilot training program: 
208.6        $500,000       .....     1998 
208.7      Up to $20,000 may be used by the Minnesota academic 
208.8   excellence foundation to deliver training, coaching, technical 
208.9   assistance, and other services to selected districts.  Contracts 
208.10  shall be awarded to at least six districts, two each to rural, 
208.11  suburban, and urban school districts.  Any portion of the 
208.12  appropriation not expended in the first year shall not cancel 
208.13  but shall be available until June 30, 1999. 
208.14     Subd. 3.  [PREVENTING VIOLENCE THROUGH PLAYS AND 
208.15  WORKSHOPS.] For administering the grant program for preventing 
208.16  violence through developing plays, workshops, and educational 
208.17  resources: 
208.18       $75,000        .....     1998 
208.19       $75,000        .....     1999 
208.20     Subd. 4.  [CENTENNIAL CLASS SIZE PROJECT.] For a grant to 
208.21  independent school district No. 12, Centennial, for the class 
208.22  size project: 
208.23       $180,000     .....     1998 
208.24       $180,000     .....     1999 
208.25     Any balance remaining in the first year does not cancel but 
208.26  is available in the second year. 
208.27     Subd. 5.  [MODEL SCHOOL FOR CHRONIC TRUANTS.] For the model 
208.28  school for chronic truants located in the law enforcement center 
208.29  in Mankato: 
208.30       $40,000        .....     1998 
208.31       $40,000        .....     1999 
208.32     Subd. 6.  [AQUILA COMMUNITY TOGETHER PROJECT.] For a grant 
208.33  to independent school district No. 283, St. Louis Park, for the 
208.34  Aquila community together project: 
208.35       $30,000        .....     1998 
208.36       $30,000        .....     1999 
209.1      This appropriation must be matched from nonstate sources.  
209.2      Any balance in the first year does not cancel but is 
209.3   available in the second year. 
209.4      Subd. 7.  [MINNESOTA INTERNATIONAL CENTER.] For the 
209.5   Minnesota International Center to encourage and foster contacts 
209.6   between Minnesota school children, their teachers, and people 
209.7   from other nations through international classroom connection: 
209.8        $80,000        .....     1998 
209.9        $80,000        .....     1999 
209.10     Subd. 8.  [COMMUNITY HEALTH CENTER.] For independent school 
209.11  district No. 99, Esko, to develop and operate a community health 
209.12  and physical fitness center offering district residents programs 
209.13  in community health and fitness, athletic training services, and 
209.14  physical therapy: 
209.15       $30,000        .....     1998 
209.16     This appropriation is contingent upon the school district 
209.17  obtaining a $30,000 in-kind contribution of physical fitness 
209.18  equipment from a private nonprofit source that is made 
209.19  permanently available to the community health and physical 
209.20  fitness center. 
209.21     Subd. 9.  [MCGREGOR GRANT.] For a grant to independent 
209.22  school district No. 4, McGregor, to reduce a net operating fund 
209.23  deficit: 
209.24       $50,000     .....     1998
209.25     Sec. 58.  [REPEALER.] 
209.26     Minnesota Statutes 1996, sections 120.105; 120.65; and 
209.27  127.31, subdivision 6, are repealed. 
209.28     Sec. 59.  [EFFECTIVE DATES.] 
209.29     (a) Section 1 applies to the 1997-1998 school year and 
209.30  thereafter.  
209.31     (b) Section 35 is effective January 1, 1998.  
209.32     (c) Sections 37 and 38 are effective 30 days after final 
209.33  enactment.  
209.34     (d) Section 50 is effective retroactively to June 30, 1997. 
209.35     (e) Section 51 is effective the day following final 
209.36  enactment without local approval pursuant to Minnesota Statutes, 
210.1   section 645.021, subdivision 2. 
210.2      (f) If this act is enacted on or after July 1, 1997, 
210.3   section 56 is effective retroactively to July 1, 1997. 
210.4      (g) If this act is enacted on or after July 1, 1997, all 
210.5   sections in this article except for those sections listed in 
210.6   paragraphs (a) to (f) are effective the day following final 
210.7   enactment. 
210.8                              ARTICLE 8 
210.9                              LIBRARIES 
210.10     Section 1.  Minnesota Statutes 1996, section 134.155, 
210.11  subdivision 2, is amended to read: 
210.12     Subd. 2.  [GRANTS.] The commissioner of children, families, 
210.13  and learning, in consultation with the multicultural advisory 
210.14  committee established in section 126.82, shall award grants for 
210.15  professional development programs to recruit and educate people 
210.16  of color in the field of library science or information 
210.17  management.  Grant applicants must be a public library 
210.18  jurisdiction with a growing minority population working in 
210.19  collaboration with an accredited institution of higher education 
210.20  with a library education program in the state of Minnesota. 
210.21     Sec. 2.  Minnesota Statutes 1996, section 134.155, 
210.22  subdivision 3, is amended to read: 
210.23     Subd. 3.  [PROGRAM REQUIREMENTS.] (a) A grant recipient 
210.24  shall recruit people of color to be library staff in public 
210.25  libraries and provide support in linking program participants 
210.26  with jobs in the recipient's library jurisdiction. 
210.27     (b) A grant recipient shall establish an advisory council 
210.28  composed of representatives of communities of color. 
210.29     (c) A grant recipient, with the assistance of the advisory 
210.30  council, may recruit high school students, undergraduate 
210.31  students or other persons; support them through the higher 
210.32  education application and admission process; advise them while 
210.33  enrolled; and link them with support resources in the college or 
210.34  university and the community.  
210.35     (d) A grant recipient shall award stipends to people of 
210.36  color enrolled in a library education program to help cover the 
211.1   costs of tuition, student fees, supplies, and books.  Stipend 
211.2   awards must be based upon a student's financial need and 
211.3   students must apply for any additional financial aid for which 
211.4   they are eligible to supplement this program.  No more than ten 
211.5   percent of the grant may be used for costs of administering the 
211.6   program.  Students must agree to work in the grantee library 
211.7   jurisdiction for at least two years after graduation if the 
211.8   student acquires a master's degree and at least three years 
211.9   after graduation if the student acquires both a bachelor's and a 
211.10  master's degree while participating in the program.  If no 
211.11  full-time position is available in the library jurisdiction, the 
211.12  student may fulfill the work requirement in another Minnesota 
211.13  public library.  
211.14     (e) The commissioner of children, families, and learning 
211.15  shall consider the following criteria in awarding grants:  
211.16     (1) whether the program is likely to increase the 
211.17  recruitment and retention of persons of color in librarianship; 
211.18     (2) whether grant recipients will establish or have a 
211.19  mentoring program for persons of color; and 
211.20     (3) whether grant recipients will provide a library 
211.21  internship for persons of color while participating in this 
211.22  program.  
211.23     Sec. 3.  Minnesota Statutes 1996, section 134.34, 
211.24  subdivision 4, is amended to read: 
211.25     Subd. 4.  A regional library basic system support grant 
211.26  shall not be made to a regional public library system for a 
211.27  participating city or county which decreases the dollar amount 
211.28  provided for support for operating purposes of public library 
211.29  service below the amount provided by it for the second preceding 
211.30  year.  This subdivision shall not apply to participating cities 
211.31  or counties where the adjusted net tax capacity of that city or 
211.32  county has decreased, if the dollar amount of the reduction in 
211.33  support is not greater than the dollar amount by which support 
211.34  would be decreased if the reduction in support were made in 
211.35  direct proportion to the decrease in adjusted net tax capacity. 
211.36     Sec. 4.  [LIBRARY PILOT PROJECT.] 
212.1      Subdivision 1.  [ESTABLISHMENT.] Notwithstanding law to the 
212.2   contrary and subject to approvals in subdivision 2, a public 
212.3   library may operate as a pilot project jointly with the school 
212.4   library at Nashwauk-Keewatin high school, located in the city of 
212.5   Nashwauk.  The public library is established to serve persons 
212.6   within the boundaries of independent school district No. 319, 
212.7   except the city of Keewatin. 
212.8      Subd. 2.  [APPROVALS.] Operation of the public library is 
212.9   contingent upon a resolution approved by the governing bodies of 
212.10  cities, towns, and unorganized townships within the geographical 
212.11  boundaries of independent school district No. 319, except for 
212.12  the city of Keewatin.  For the purposes of this subdivision, the 
212.13  Itasca county board is designated as the governing body for the 
212.14  unorganized townships. 
212.15     Subd. 3.  [BOARD; APPOINTMENTS.] The resolution in 
212.16  subdivision 2 shall provide for a library board of five members 
212.17  as follows:  two members appointed by the school board of 
212.18  independent school district No. 319, one member appointed by 
212.19  each town board located within independent school district No. 
212.20  319 boundaries, one member appointed by the council of the city 
212.21  of Nashwauk, and one member appointed by the Itasca county board 
212.22  to represent the unorganized towns within the school district 
212.23  territory. 
212.24     Subd. 4.  [BOARD TERMS; COMPENSATION.] The library board 
212.25  members shall serve for the term of the pilot program.  An 
212.26  appointing authority may remove for misconduct or neglect any 
212.27  member it has appointed to the board and may replace that member 
212.28  by appointment.  Board members shall receive no compensation for 
212.29  their services but may be reimbursed for actual and necessary 
212.30  travel expenses incurred in the discharge of library board 
212.31  duties and activities. 
212.32     Subd. 5.  [FUNDING.] For taxes payable in 1998 and 1999 
212.33  only, the library board may levy a tax in an amount up to 
212.34  $25,000 annually on property located within the boundaries of 
212.35  independent school district No. 319, except the city of 
212.36  Keewatin.  The Itasca county auditor shall collect the tax and 
213.1   distribute it to the library board.  The money may be used for 
213.2   library staff and for the purchase of library materials, 
213.3   including computer software.  The levy must also fund the amount 
213.4   necessary to receive bookmobile services from the Arrowhead 
213.5   regional library system.  For taxes payable in 1998 and 1999 
213.6   only, the county may not levy under Minnesota Statutes, section 
213.7   134.07, for the areas described in this section. 
213.8      Subd. 6.  [BUILDING.] The school district shall provide the 
213.9   physical space and costs associated with operating the library 
213.10  including, but not limited to, heat, light, telephone service, 
213.11  and maintenance. 
213.12     Subd. 7.  [ORGANIZATION.] Immediately after appointment, 
213.13  the library board shall organize by electing one of its number 
213.14  as president and one as secretary, and it may appoint other 
213.15  officers it finds necessary. 
213.16     Subd. 8.  [DUTIES.] The library board shall adopt bylaws 
213.17  and regulations for the library and for the conduct of its 
213.18  business as may be expedient and conformable to law.  It shall 
213.19  have exclusive control of the expenditure of all money collected 
213.20  for it.  The library board shall appoint a qualified library 
213.21  director and other staff, establish the compensation of 
213.22  employees, and remove any of them for cause.  The library board 
213.23  may contract with the school board, the regional library board, 
213.24  or the city in which the library is located to provide 
213.25  personnel, fiscal, or administrative services.  The contract 
213.26  shall state the personnel, fiscal, and administrative services 
213.27  and payments to be provided by each party. 
213.28     Subd. 9.  [CRITERIA.] The library shall meet all 
213.29  requirements in statutes and rules applicable to public 
213.30  libraries and school media centers.  A media supervisor licensed 
213.31  by the board of teaching may be the director of the library.  
213.32  Public parking, restrooms, drinking water, and other necessities 
213.33  shall be easily accessible to library patrons. 
213.34     Subd. 10.  [REPORT.] The library board shall report to the 
213.35  department of children, families, and learning by February 1, 
213.36  1999, about the costs of providing the library service and the 
214.1   number of patrons served. 
214.2      Subd. 11.  [EXPIRATION.] This section expires January 31, 
214.3   2000. 
214.4      Sec. 5.  [APPROPRIATIONS.] 
214.5      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
214.6   LEARNING.] The sums indicated in this section are appropriated 
214.7   from the general fund to the department of children, families, 
214.8   and learning for the fiscal years designated.  
214.9      Subd. 2.  [BASIC SUPPORT GRANTS.] For basic support grants 
214.10  according to Minnesota Statutes, sections 134.32 to 134.35: 
214.11       $7,819,000      .....     1998 
214.12       $7,819,000      .....     1999 
214.13     The 1998 appropriation includes $781,000 for 1997 and 
214.14  $7,038,000 for 1998.  
214.15     The 1999 appropriation includes $1,032,000 for 1998 and 
214.16  $7,038,000 for 1999.  
214.17     Subd. 3.  [LIBRARIANS OF COLOR.] For the librarians of 
214.18  color program according to Minnesota Statutes, section 134.155: 
214.19       $55,000     .....     1998
214.20       $55,000     .....     1999
214.21     Any balance in the first year does not cancel but is 
214.22  available in the second year. 
214.23     Subd. 4.  [CHILDREN'S LIBRARY SERVICES GRANTS.] For grants 
214.24  for collaborative programs to strengthen library services to 
214.25  children, young people, and their families: 
214.26       $150,000     .....     1998
214.27       $150,000     .....     1999
214.28     Any balance in the first year does not cancel but is 
214.29  available in the second year. 
214.30     Subd. 5.  [MULTICOUNTY, MULTITYPE LIBRARY SYSTEMS.] For 
214.31  grants according to Minnesota Statutes, sections 134.353 and 
214.32  134.354, to multicounty, multitype library systems: 
214.33       $865,000     .....     1998 
214.34       $903,000     .....     1999 
214.35     The 1998 appropriation includes $52,000 for 1997 and 
214.36  $813,000 for 1998.  
215.1      The 1999 appropriation includes $90,000 for 1998 and 
215.2   $813,000 for 1999. 
215.3      Subd. 6.  [REGIONAL PUBLIC LIBRARY SYSTEMS.] For grants to 
215.4   regional public library systems for outreach and direct library 
215.5   services to children and families: 
215.6        $250,000     .....     1998
215.7        $250,000     .....     1999
215.8      In each year $63,000 is for the Metropolitan Library 
215.9   Services Agency and the remainder is for $17,000 to each of the 
215.10  other 11 regional public library systems. 
215.11     Subd. 7.  [LIBRARY PILOT PROJECT.] For a grant for the 
215.12  library pilot project under section 4: 
215.13       $25,000     .....     1998 
215.14     Any balance in the first year does not cancel but is 
215.15  available in the second year. 
215.16     Sec. 6.  [REPEALER.] 
215.17     Minnesota Statutes 1996, section 134.34, subdivision 4a, is 
215.18  repealed. 
215.19     Sec. 7.  [EFFECTIVE DATE.] 
215.20     (a) Section 4 is effective in the territory located within 
215.21  independent school district No. 319, except Keewatin, the day 
215.22  after compliance with Minnesota Statutes, section 645.021, 
215.23  subdivision 3, by the last of all the governing bodies for the 
215.24  cities, towns, and unorganized townships.  For the unorganized 
215.25  townships, the governing body is the Itasca county board. 
215.26     (b) If this act is enacted on or after July 1, 1997, all 
215.27  sections in this article except for those sections listed in 
215.28  paragraph (a) are effective the day following final enactment. 
215.29                             ARTICLE 9 
215.30                             TECHNOLOGY 
215.31     Section 1.  Minnesota Statutes 1996, section 124.91, 
215.32  subdivision 5, is amended to read: 
215.33     Subd. 5.  [INTERACTIVE TELEVISION.] (a) A school district 
215.34  with its central administrative office located within economic 
215.35  development region one, two, three, four, five, six, seven, 
215.36  eight, nine, and ten may apply to the commissioner of children, 
216.1   families, and learning for ITV revenue up to the greater of .5 
216.2   percent of the adjusted net tax capacity of the district or 
216.3   $25,000 for.  Eligible interactive television expenditures 
216.4   include the construction, maintenance, and lease costs of an 
216.5   interactive television system for instructional purposes.  An 
216.6   eligible school district that has completed the construction of 
216.7   its interactive television system may also purchase computer 
216.8   hardware and software used primarily for instructional purposes 
216.9   and access to the Internet provided that its total expenditures 
216.10  for interactive television maintenance and lease costs and for 
216.11  computer hardware and software under this subdivision do not 
216.12  exceed its interactive television revenue for fiscal year 1998.  
216.13  The approval by the commissioner of children, families, and 
216.14  learning and the application procedures set forth in subdivision 
216.15  1 shall apply to the revenue in this subdivision.  In granting 
216.16  the approval, the commissioner must consider whether the 
216.17  district is maximizing efficiency through peak use and off-peak 
216.18  use pricing structures. 
216.19     (b) To obtain ITV revenue, a district may levy an amount 
216.20  not to exceed the district's ITV revenue times the lesser of one 
216.21  or the ratio of: 
216.22     (1) the quotient derived by dividing the adjusted net tax 
216.23  capacity of the district for the year before the year the levy 
216.24  is certified by the actual pupil units in the district for the 
216.25  year to which the levy is attributable; to 
216.26     (2) 100 percent of the equalizing factor as defined in 
216.27  section 124A.02, subdivision 8, for the year to which the levy 
216.28  is attributable. 
216.29     (c) A district's ITV aid is the difference between its ITV 
216.30  revenue and the ITV levy. 
216.31     (d) The revenue in the first year after reorganization for 
216.32  a district that has reorganized under section 122.22, 122.23, or 
216.33  122.241 to 122.247 shall be the greater of: 
216.34     (1) the revenue computed for the reorganized district under 
216.35  paragraph (a), or 
216.36     (2)(i) for two districts that reorganized, 75 percent of 
217.1   the revenue computed as if the districts involved in the 
217.2   reorganization were separate, or 
217.3      (ii) for three or more districts that reorganized, 50 
217.4   percent of the revenue computed as if the districts involved in 
217.5   the reorganization were separate. 
217.6      (e) The revenue in paragraph (d) is increased by the 
217.7   difference between the initial revenue and ITV lease costs for 
217.8   leases that had been entered into by the preexisting districts 
217.9   on the effective date of the consolidation or combination and 
217.10  with a term not exceeding ten years.  This increased revenue is 
217.11  only available for the remaining term of the lease.  However, in 
217.12  no case shall the revenue exceed the amount available had the 
217.13  preexisting districts received revenue separately. 
217.14     (f) Effective for fiscal year 2000, the revenue under this 
217.15  section shall be 75 percent of the amount determined in 
217.16  paragraph (a); for fiscal year 2001, 50 percent of the amount in 
217.17  paragraph (a); and for fiscal year 2002, 25 percent of the 
217.18  amount in paragraph (a). 
217.19     (g) This section expires effective for revenue for fiscal 
217.20  year 2003, or when leases in existence on the effective date of 
217.21  this act expire. 
217.22     Sec. 2.  Laws 1995, First Special Session chapter 3, 
217.23  article 12, section 7, subdivision 1, is amended to read: 
217.24     Subdivision 1.  [STATE COUNCIL MEMBERSHIP.] The membership 
217.25  of the Minnesota education telecommunications council 
217.26  established in Laws 1993, First Special Session chapter 2, is 
217.27  expanded to include representatives of elementary and secondary 
217.28  education.  The membership shall consist of three 
217.29  representatives from the University of Minnesota; three 
217.30  representatives of the board of trustees for Minnesota state 
217.31  colleges and universities; one representative of the higher 
217.32  education services offices; one representative appointed by the 
217.33  private college council; eight representatives selected by the 
217.34  commissioner of education children, families, and learning, at 
217.35  least one of which must come from each of the six higher 
217.36  education telecommunication regions; a representative from the 
218.1   information policy office; one member two members each from the 
218.2   senate and the house of representatives selected by the 
218.3   subcommittee on committees of the committee on rules and 
218.4   administration of the senate and the speaker of the house, one 
218.5   member from each body must be a member of the minority party; 
218.6   and three representatives of libraries, one representing 
218.7   regional public libraries, one representing multitype libraries, 
218.8   and one representing community libraries, selected by the 
218.9   governor.  The council shall: 
218.10     (1) develop a statewide vision and plans for the use of 
218.11  distance learning technologies and provide leadership in 
218.12  implementing the use of such technologies; 
218.13     (2) recommend to the commissioner and the legislature by 
218.14  December 15, 1996, a plan for long-term governance and a 
218.15  proposed structure for statewide and regional 
218.16  telecommunications; 
218.17     (3) recommend educational policy relating to 
218.18  telecommunications; 
218.19     (4) determine priorities for use; 
218.20     (5) oversee coordination of networks for post-secondary 
218.21  campuses, K-12 education, and regional and community libraries; 
218.22     (6) review application for telecommunications access grants 
218.23  under Minnesota Statutes, section 124C.74 and recommend to the 
218.24  department grants for funding; and 
218.25     (7) determine priorities for grant funding proposals; and 
218.26     (8) work with the information policy office to ensure 
218.27  consistency of the operation of the learning network with 
218.28  standards of an open system architecture. 
218.29     The council shall consult with representatives of the 
218.30  telecommunication industry in implementing this section.  
218.31     Sec. 3.  Laws 1996, chapter 412, article 12, section 11, is 
218.32  amended to read:  
218.33     Sec. 11.  [COOPERATIVE PURCHASING.] 
218.34     The department of children, families, and learning shall 
218.35  work with the department of administration to make available to 
218.36  public libraries, public and nonpublic schools, political 
219.1   subdivisions and state agencies, state level contracts from 
219.2   multiple sources, including manufacturers and software 
219.3   publishers, for the purchase or lease of instructional and 
219.4   administrative software, computers, video, and network hardware. 
219.5   Notwithstanding Minnesota Statutes, section 471.345, public and 
219.6   nonpublic schools, public libraries, and political subdivisions 
219.7   may participate in the contracts a negotiated or a sealed bid 
219.8   contract legally entered into by the state of Minnesota, if it 
219.9   meets their technology purchasing needs. 
219.10     Sec. 4.  [SITE-BASED TECHNOLOGY TRANSFORMATION LEARNING 
219.11  GRANTS.] 
219.12     Subdivision 1.  [ESTABLISHMENT; PURPOSE.] A matching grant 
219.13  program is established for school districts or a group of school 
219.14  districts, the residential academies, and the center for arts 
219.15  education to fund technology projects in support of learning and 
219.16  to increase and enhance closer ties with the community.  
219.17  Projects that are eligible for grant funds include, but are not 
219.18  limited to, hardware and software purchases or leasing and 
219.19  installation, establishment or expansion of local or wide area 
219.20  networks, technical support, and training and staff development 
219.21  in the use of technology and software.  Districts may use the 
219.22  funds for youth entrepreneurship and school-to-work activities, 
219.23  other collaborative efforts, or year-round open enrollment 
219.24  projects. 
219.25     Subd. 2.  [GOALS.] The goals for this grant program include 
219.26  the creation of projects that accomplish one or more of the 
219.27  following: 
219.28     (1) enhance teaching and learning productivity through the 
219.29  use of technology; 
219.30     (2) develop individual learner classroom-based teaching and 
219.31  learning systems that can be aggregated into site, district, and 
219.32  state frameworks; 
219.33     (3) develop personalized learning plans designed to give 
219.34  learners more responsibility for their learning success and 
219.35  change the role of teacher to learning facilitator; 
219.36     (4) match and allocate resources; 
220.1      (5) create a curriculum environment that is multiplatform; 
220.2      (6) provide user and contributor access to electronic 
220.3   libraries; 
220.4      (7) schedule activities; 
220.5      (8) automate progress reports; 
220.6      (9) increase collaboration between school district and 
220.7   sites, with businesses, higher education institutions, 
220.8   libraries, and local government units; 
220.9      (10) correlate state-defined outcomes from the graduation 
220.10  rule to curriculum for each student; 
220.11     (11) increase accountability through a reporting system; 
220.12     (12) provide technical support, project evaluation, 
220.13  dissemination services, and replication; and 
220.14     (13) connect to the Learning Network of Minnesota. 
220.15     Subd. 3.  [APPLICATION; ELIGIBILITY.] The commissioner of 
220.16  children, families, and learning shall establish a process and 
220.17  application forms for grant funds.  Eligible applicants must, at 
220.18  a minimum, identify the specific site needs that the project 
220.19  will address, define the project's expected outcomes, and 
220.20  provide the source, type, and amounts of all matching funds.  To 
220.21  be eligible for a site-based technology learning grant, a school 
220.22  district must:  
220.23     (1) for districts of 5,000 pupils in average daily 
220.24  membership or more, have each dollar of grant money matched by 
220.25  at least one dollar of school district money, plus at least one 
220.26  dollar of either nonstate or nonschool district money, or 
220.27  in-kind contributions; 
220.28     (2) for districts under 5,000 pupils in average daily 
220.29  membership, indicate what attempts to provide a one-to-one match 
220.30  have been made prior to the filing of the application; 
220.31     (3) agree to disseminate and share information about its 
220.32  project; 
220.33     (4) provide a benefit to the greater community; and 
220.34     (5) maintain any ongoing costs of support for the 
220.35  technology project after the initial funding under the grant 
220.36  program. 
221.1      Districts may count toward their match any eligible 
221.2   expenditures made from July 1, 1996.  The residential academies 
221.3   and the center for arts education do not need to provide a 
221.4   matching amount. 
221.5      Subd. 4.  [COMPETITIVE TECHNOLOGY TRANSFORMATION LEARNING 
221.6   GRANTS.] By August 15, 1997, the department of children, 
221.7   families, and learning shall establish guidelines and an 
221.8   application process.  The money must provide technology at 
221.9   school sites, including media centers, community education 
221.10  sites, the center for arts education, or at the residential 
221.11  academies.  The department shall consider the level of 
221.12  comprehensiveness of a district's technology plan including 
221.13  integration of curriculum and graduation standards in awarding 
221.14  the grants. 
221.15     Sec. 5.  [LEARNING AND ELECTRONIC CURRICULUM RESOURCE 
221.16  NETWORK.] 
221.17     Subdivision 1.  [RESOURCE NETWORK.] (a) The commissioner of 
221.18  children, families, and learning shall contract with multiple 
221.19  vendors to develop a learning resource network that expands the 
221.20  electronic curriculum library under Laws 1996, chapter 412, 
221.21  article 12, section 15, subdivision 4, paragraph (a), and to 
221.22  support the statewide implementation of the graduation standards.
221.23     (b) The expansion shall include a centralized repository of 
221.24  curriculum that serves as a resource for teachers and not for 
221.25  instructional delivery software.  The curriculum contained 
221.26  within the library must be aligned with the content standards of 
221.27  the graduation rule.  Post-secondary institutions may apply for 
221.28  the electronic curriculum resource project if the institutions 
221.29  make curriculum available through the repository.  The 
221.30  department of children, families, and learning shall set 
221.31  standards to assist in alignment of individualized learning 
221.32  plans systems to the centralized repository.  The commissioner 
221.33  may require a match of local and private funds as part of the 
221.34  application process. 
221.35     (c) The commissioner shall consult with representatives 
221.36  from the public and private sector in the development, use, and 
222.1   operation of the learning resource network.  The commissioner 
222.2   shall compile a list of vendors of software that can be used to 
222.3   support implementation of the graduation standards.  The 
222.4   commissioner shall also identify district-initiated projects and 
222.5   facilitate collaboration between districts to develop and adapt 
222.6   electronic teaching and administering tools.  In addition to the 
222.7   electronic curriculum repository vendors, the sites in clauses 
222.8   (1) to (5) shall be considered as vendors eligible for grants: 
222.9      (1) a project for the Gopher biology shareware at the 
222.10  University of Minnesota to make multimedia instructional 
222.11  management software available at no cost to both kindergarten 
222.12  through grade 12 and higher education faculty throughout the 
222.13  state, to train faculty and technology support staff in 
222.14  kindergarten through grade 12 districts both on how to use the 
222.15  software and database, as well as how to design curricula to 
222.16  take full advantage of the software, and to model how students 
222.17  and teachers can use computers to enhance teaching and learning; 
222.18     (2) a project for the midstate educational district and 
222.19  independent school district No. 482, Little Falls, to 
222.20  demonstrate student interaction with the local business 
222.21  community; 
222.22     (3) a project for independent school district Nos. 178, 
222.23  Storden-Jeffers; 633, Lamberton; and 638, Sanborn, to establish 
222.24  a high school program for remote access for learners to the 
222.25  districts' educational network of data and training, commercial 
222.26  access for youth entrepreneurship, and commercial access for 
222.27  school-to-work programs; 
222.28     (4) a project for the University of Minnesota for the Bell 
222.29  Museum of Natural History to deliver science curriculum through 
222.30  distance learning methods; 
222.31     (5) a project for the East Range Secondary Technical Center 
222.32  to purchase equipment for classroom and laboratories to 
222.33  demonstrate effective integration of technology into the 
222.34  curriculum; and 
222.35     (6) a project for the Walker Art Center and the Minneapolis 
222.36  Institute of Arts for an arts via the Internet project.  The 
223.1   project will connect, via the Internet, the thousands of objects 
223.2   in these two collections to every classroom, library, college 
223.3   and university, historical sites, and study centers in the state 
223.4   by digitizing the collections. 
223.5      Subd. 2.  [FOOD SERVICE DATA MANAGEMENT.] The department of 
223.6   children, families, and learning shall work with districts to 
223.7   identify and help implement computer software to improve 
223.8   district's management of meal costs, meal program tracking, and 
223.9   government reporting of meals served.  The commissioner may 
223.10  provide funding for this software under section 4. 
223.11     Subd. 3.  [INTERNET ACCESS.] The commissioner of children, 
223.12  families, and learning shall develop and distribute a model 
223.13  policy for school districts concerning appropriate access and 
223.14  usage of the Internet with recommended protocols for staff and 
223.15  students to follow in order to maximize the educational benefits 
223.16  of on-line access and services. 
223.17     Subd. 4.  [AT HOME-ACCESS FOR CURRICULUM AND TEACHING.] The 
223.18  Internet access for Minnesota school projects, the InforMNs 
223.19  project, shall be continued for the next biennium. 
223.20     Sec. 6.  [LEARNING ACADEMY.] 
223.21     Subdivision 1.  [ESTABLISHMENT.] The commissioner shall 
223.22  develop standards and requirements and certify courses for a 
223.23  Minnesota learning academy to provide training opportunities for 
223.24  educators, administrators, and librarians in the use of 
223.25  technology and its integration into learning activities for 
223.26  meeting the educational needs of all students.  Only certified 
223.27  classes may be used to fulfill the requirements of the learning 
223.28  academy. 
223.29     Subd. 2.  [DEVELOPMENT OF THE LEARNING ACADEMY.] To develop 
223.30  the learning academy, the commissioner shall consult with 
223.31  representatives of public schools, higher education, teacher 
223.32  organizations, students, private business, state agencies, 
223.33  libraries, and political subdivisions to do the following: 
223.34     (1) set measures for teacher training opportunities on 
223.35  technical skills and technology integration skills; 
223.36     (2) identify and establish outcomes for a series of 
224.1   training courses that provide for technical skills and 
224.2   technology classroom integration skills; 
224.3      (3) identify existing education organizations, public, or 
224.4   private institutions to develop and provide training courses; 
224.5      (4) evaluate prerequisites for the classroom integration 
224.6   skills course; 
224.7      (5) certify or decertify classes and courses for inclusion 
224.8   in or exclusion from the learning academy; and 
224.9      (6) coordinate and make certified classes and courses 
224.10  available to eligible participants. 
224.11     Subd. 3.  [FUNDING.] The commissioner shall use available 
224.12  appropriations to provide start-up and initial operating 
224.13  subsidies for the learning academy sites.  Appropriated funds 
224.14  may also be used to partially subsidize costs of attendees of 
224.15  the academy. 
224.16     Sec. 7.  [LIBRARY SITE TECHNOLOGY GRANTS.] 
224.17     Subdivision 1.  [ESTABLISHMENT; PURPOSE.] A matching grant 
224.18  program is established to fund library site technology grants.  
224.19  The grants are available to public or school library sites or to 
224.20  a partnership of library sites.  Recipients shall use grant 
224.21  proceeds for technology projects that are consistent with 
224.22  technology plans and the LDS/MINITEX Joint Standards and 
224.23  Guidelines for Automated Library Systems.  The grants shall fund 
224.24  projects to expand and integrate technology into library 
224.25  operations and increase public access to technology by: 
224.26     (1) converting school media center bibliographic records 
224.27  into a standard format; 
224.28     (2) loading school library site media records into 
224.29  regional, public, or multicounty, multitype library systems or 
224.30  other appropriate library networks; 
224.31     (3) upgrading and increasing database development; and 
224.32     (4) improving library staff use of networked library 
224.33  resources at library sites throughout the regional multitype 
224.34  cooperatives. 
224.35     Subd. 2.  [APPLICATION; ELIGIBILITY.] The commissioner of 
224.36  children, families, and learning shall establish a process and 
225.1   application forms for library sites to apply for grant funds.  
225.2   Libraries must describe how they will cooperate with schools.  
225.3   An applicant must submit a technology plan with the 
225.4   application.  Eligible applicants must, at a minimum, describe 
225.5   how the proposed project is consistent with the technology plan; 
225.6   describe how it ensures interoperability of hardware, software, 
225.7   and telecommunication; identify the specific site needs that the 
225.8   project will address; define the project's expected outcomes; 
225.9   and provide the source, type, and amounts of all matching 
225.10  funds.  To be eligible for a site-based technology learning 
225.11  grant, a library site must: 
225.12     (1) be a school library, a public library, or a partnership 
225.13  of public and school libraries; 
225.14     (2) have each dollar of grant money matched by at least $1 
225.15  of library site money, including in-kind contributions; 
225.16     (3) agree to disseminate and share information about its 
225.17  project; 
225.18     (4) provide a benefit to the greater community; and 
225.19     (5) maintain any ongoing costs of support for the 
225.20  technology project after the initial funding under the grant 
225.21  program. 
225.22     Subd. 3.  [GRANT AWARD.] The commissioner shall consult 
225.23  with representatives of the public and private sectors in 
225.24  establishing criteria and awarding site-based technology 
225.25  learning grants. 
225.26     Sec. 8.  [REFURBISHED COMPUTER PROGRAM.] 
225.27     The commissioner of children, families, and learning shall 
225.28  establish a program to refurbish donated computers to increase 
225.29  the number of multimedia computers in Minnesota schools.  In 
225.30  establishing the program, the commissioner shall work with the 
225.31  commissioners of administration and corrections, and the office 
225.32  of technology.  The program must be implemented in conjunction 
225.33  with the education technology improvement clearinghouses under 
225.34  Minnesota Statutes, section 121.95, and in partnership with 
225.35  business, nonprofit organizations, and institutions of higher 
225.36  education.  The commissioner must consider the most 
226.1   cost-effective approach in allocating funds for computer 
226.2   recycling or refurbishing.  The program must: 
226.3      (1) establish the number of multimedia computers to be 
226.4   refurbished by July 1, 2000; 
226.5      (2) establish partnerships with nonprofit or business 
226.6   organizations to solicit donations; 
226.7      (3) develop an agreement with the commissioner of 
226.8   corrections to facilitate computers in Minnesota correctional 
226.9   institutions with procedures to minimize security risks; 
226.10     (4) promote the program to public and nonpublic schools; 
226.11  and 
226.12     (5) develop plans to equitably distribute computers to 
226.13  public and nonpublic schools and ensure proper recycling of 
226.14  unsuitable equipment. 
226.15     Sec. 9.  [TELECOMMUNICATIONS TECHNOLOGY PLAN.] 
226.16     The department of children, families, and learning shall 
226.17  develop criteria for approving telecommunications technology 
226.18  plans developed by school sites, school districts, or libraries 
226.19  to enable them to obtain telecommunications discounts provided 
226.20  under federal law.  The department shall take actions necessary 
226.21  to enable all Minnesota schools and libraries to apply for 
226.22  discounts and federal universal service support available 
226.23  January 1, 1998. 
226.24     Sec. 10.  [YEAR 2000 READY.] 
226.25     The commissioner of children, families, and learning shall 
226.26  ensure that any computer software or hardware that is purchased 
226.27  with money appropriated in this bill must be year 2000 ready. 
226.28     Sec. 11.  [ADDITIONAL TECHNOLOGY REVENUE.] 
226.29     For fiscal year 1998 only, the allowance in Minnesota 
226.30  Statutes, section 124A.22, subdivision 10, paragraph (a), is 
226.31  increased by: 
226.32     (1) $24 per pupil unit; or 
226.33     (2) the lesser of $25,000 or $80 per pupil unit. 
226.34     Revenue received under this section must be used according 
226.35  to Minnesota Statutes, section 124A.22, subdivision 11, clauses 
226.36  (15), (18), (19), (23), and (24). 
227.1      Sec. 12.  [APPROPRIATIONS.] 
227.2      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
227.3   LEARNING.] The sums indicated in this section are appropriated, 
227.4   unless otherwise indicated, from the general fund to the 
227.5   department of children, families, and learning for the fiscal 
227.6   years designated.  The appropriations in subdivisions 6 and 7 
227.7   are one-time appropriations only. 
227.8      Subd. 2.  [TELECOMMUNICATIONS ACCESS GRANTS.] For grants to 
227.9   school districts and regional public library systems to 
227.10  establish telecommunication connections according to Minnesota 
227.11  Statutes, section 124C.74: 
227.12       $13,000,000     .....     1998 
227.13       $10,000,000     .....     1999 
227.14     Any balance in the first year does not cancel but is 
227.15  available in the second year.  
227.16     This amount shall not be included as part of the base for 
227.17  fiscal year 2000-2001. 
227.18     In allocating grant funds, the council, as appropriate, may 
227.19  consider expenditures by district made from July 1, 1995. 
227.20     Subd. 3.  [SITE-BASED TECHNOLOGY TRANSFORMATION LEARNING 
227.21  GRANTS.] For grants under section 4: 
227.22       $14,000,000     .....     1998 
227.23     Of this amount $300,000 is for an open enrollment 
227.24  year-round technology project in independent school district No. 
227.25  138, North Branch.  
227.26     This appropriation is available until June 30, 1999. 
227.27     Subd. 4.  [LIBRARY SITE TECHNOLOGY GRANT PROGRAM.] For 
227.28  one-time library site grants under section 7: 
227.29       $3,500,000      .....     1998 
227.30     This appropriation is available until June 30, 1999. 
227.31     Subd. 5.  [COMPUTER REFURBISHMENT PROGRAM.] For the 
227.32  multimedia computer refurbishment program under section 8: 
227.33       $6,000,000      .....     1998
227.34     The commissioner may use up to $250,000 of this amount for 
227.35  the education technology improvement clearinghouses under 
227.36  Minnesota Statutes, section 121.95. 
228.1      The commissioner may use all or part of this appropriation 
228.2   for an agreement with the commissioner of corrections to 
228.3   establish refurbishment centers at one or more correctional 
228.4   institutions. 
228.5      These funds are available until June 30, 2000. 
228.6      Subd. 6.  [ELECTRONIC CURRICULUM RESOURCE.] For support of 
228.7   electronic curriculum development: 
228.8        $4,000,000     .....     1998
228.9      Of this amount, $2,700,000 is for the electronic curriculum 
228.10  resource under section 5, $1,000,000 of which is for the 
228.11  collaborative arts project in section 5, subdivision 1, 
228.12  paragraph (c), clause (5). 
228.13     Of this amount, $300,000 is for the purposes of the Gopher 
228.14  Biology Shareware Project under section 5, subdivision 1, 
228.15  paragraph (c), clause (1). 
228.16     Subd. 7.  [UNIVERSITY OF MINNESOTA; BELL MUSEUM.] For a 
228.17  grant to the University of Minnesota for the Bell Museum of 
228.18  Natural History to deliver science curriculum through distance 
228.19  learning methods under section 5, subdivision 1, paragraph (c), 
228.20  clause (3): 
228.21       $500,000    .....     1998
228.22       $500,000    .....     1999
228.23     Subd. 8.  [INTERACTIVE TELEVISION (ITV) AID.] For 
228.24  interactive television (ITV) aid under Minnesota Statutes, 
228.25  section 124.91, subdivision 5: 
228.26       $4,030,000     .....     1998
228.27       $4,052,000     .....     1999
228.28     The 1998 appropriation includes $384,000 for 1997 and 
228.29  $3,646,000 for 1998. 
228.30     The 1999 appropriation includes $405,000 for 1998 and 
228.31  $3,647,000 for 1999. 
228.32     Subd. 9.  [INSTRUCTIONAL TRANSFORMATION THROUGH TECHNOLOGY 
228.33  GRANTS.] For grants according to Laws 1995, First Special 
228.34  Session chapter 3, article 12, section 8: 
228.35       $ 1,000,000    .....     1998
228.36     This appropriation is available until June 30, 1999. 
229.1      Subd. 10.  [ADDITIONAL OPERATING CAPITAL.] For a one-time 
229.2   increase in operating capital according to section 11: 
229.3        $25,000,000    .....     1998
229.4      Subd. 11.  [LEARNING ACADEMY.] For training and staff 
229.5   development according to section 6: 
229.6        $2,000,000     .....     1998
229.7      This appropriation is available until June 30, 1999. 
229.8      Subd. 12.  [TECHNOLOGY ENHANCEMENT; RESIDENTIAL ACADEMIES.] 
229.9   For technology improvements at the Minnesota state academies: 
229.10       $500,000       .....     1998 
229.11       $500,000       .....     1999 
229.12     The appropriation is for implementing the Minnesota state 
229.13  academies' technology plan including completion of a local area 
229.14  network; installation of ten technology laboratories, classroom 
229.15  work stations, and additional hardware and software; purchases 
229.16  of large-screen monitors, speech synthesizers, screen-reader 
229.17  software, and braille display; and technology support and 
229.18  maintenance to assist the academies in fulfilling their 
229.19  educational mission. 
229.20     Any balance in the first year does not cancel but is 
229.21  available in the second year. 
229.22     Subd. 13.  [REGIONAL MANAGEMENT INFORMATION CENTERS.] The 
229.23  sum indicated in this subdivision is appropriated from the 
229.24  general fund to the office of technology for the fiscal year 
229.25  designated.  For grants to regional management information 
229.26  centers under Minnesota Statutes, section 121.935, for the 
229.27  transition period in their technology uses and consolidation of 
229.28  processing needs: 
229.29       $978,000       .....     1998 
229.30     This appropriation is available until June 30, 1999. 
229.31     Sec. 13.  [REPEALER.] 
229.32     (a) Minnesota Statutes 1996, section 124C.74, is repealed 
229.33  effective July 1, 1999.  
229.34     (b) Minnesota Statutes 1996, section 134.46, is repealed. 
229.35     Sec. 14.  [EFFECTIVE DATE.] 
229.36     If this act is enacted on or after July 1, 1997, sections 1 
230.1   to 13 are effective the day following final enactment. 
230.2                              ARTICLE 10
230.3                            STATE AGENCIES
230.4      Section 1.  Minnesota Statutes 1996, section 128A.02, is 
230.5   amended by adding a subdivision to read: 
230.6      Subd. 7.  [GRANTS.] The state board, through the chief 
230.7   administrators of the academies, may apply for all competitive 
230.8   grants administered by agencies of the state and other 
230.9   government or nongovernment sources.  Application may not be 
230.10  made for grants over which the board has discretion. 
230.11     Sec. 2.  Minnesota Statutes 1996, section 129C.10, 
230.12  subdivision 3, is amended to read: 
230.13     Subd. 3.  [POWERS AND DUTIES OF BOARD.] (a) The board has 
230.14  the powers necessary for the care, management, and control of 
230.15  the Lola and Rudy Perpich Minnesota center for arts education 
230.16  and all its real and personal property.  The powers shall 
230.17  include, but are not limited to, those listed in this 
230.18  subdivision. 
230.19     (b) The board may employ and discharge necessary employees, 
230.20  and contract for other services to ensure the efficient 
230.21  operation of the center for arts education. 
230.22     (c) The board may receive and award grants.  The board may 
230.23  establish a charitable foundation and accept, in trust or 
230.24  otherwise, any gift, grant, bequest, or devise for educational 
230.25  purposes and hold, manage, invest, and dispose of them and the 
230.26  proceeds and income of them according to the terms and 
230.27  conditions of the gift, grant, bequest, or devise and its 
230.28  acceptance.  The board shall adopt internal procedures to 
230.29  administer and monitor aids and grants. 
230.30     (d) The board may establish or coordinate evening, 
230.31  continuing education, extension, and summer programs for 
230.32  teachers and pupils. 
230.33     (e) The board may identify pupils who have artistic talent, 
230.34  either demonstrated or potential, in dance, literary arts, media 
230.35  arts, music, theater, and visual arts, or in more than one art 
230.36  form. 
231.1      (f) The board shall educate pupils with artistic talent by 
231.2   providing:  
231.3      (1) an interdisciplinary academic and arts program for 
231.4   pupils in the 11th and 12th grades.  The total number of pupils 
231.5   accepted under this clause and clause (2) shall not exceed 300; 
231.6      (2) additional instruction to pupils for a 13th grade. 
231.7   Pupils eligible for this instruction are those enrolled in 12th 
231.8   grade who need extra instruction and who apply to the board, or 
231.9   pupils enrolled in the 12th grade who do not meet learner 
231.10  outcomes established by the board.  Criteria for admission into 
231.11  the 13th grade shall not be subject to chapter 14; 
231.12     (3) intensive arts seminars for one or two weeks for pupils 
231.13  in grades 9 to 12; 
231.14     (4) summer arts institutes for pupils in grades 9 to 12; 
231.15     (5) artist mentor and extension programs in regional sites; 
231.16  and 
231.17     (6) teacher education programs for indirect curriculum 
231.18  delivery. 
231.19     (g) The board may determine the location for the Lola and 
231.20  Rudy Perpich Minnesota center for arts education and any 
231.21  additional facilities related to the center, including the 
231.22  authority to lease a temporary facility. 
231.23     (h) The board must plan for the enrollment of pupils on an 
231.24  equal basis from each congressional district.  
231.25     (i) The board may establish task forces as needed to advise 
231.26  the board on policies and issues.  The task forces expire as 
231.27  provided in section 15.059, subdivision 6.  
231.28     (j) The board may request the commissioner of children, 
231.29  families, and learning for assistance and services. 
231.30     (k) The board may enter into contracts with other public 
231.31  and private agencies and institutions for residential and 
231.32  building maintenance services if it determines that these 
231.33  services could be provided more efficiently and less expensively 
231.34  by a contractor than by the board itself.  The board may also 
231.35  enter into contracts with public or private agencies and 
231.36  institutions, school districts or combinations of school 
232.1   districts, or service cooperatives to provide supplemental 
232.2   educational instruction and services. 
232.3      (l) The board may provide or contract for services and 
232.4   programs by and for the center for arts education, including a 
232.5   store, operating in connection with the center; theatrical 
232.6   events; and other programs and services that, in the 
232.7   determination of the board, serve the purposes of the center. 
232.8      (m) The board may provide for transportation of pupils to 
232.9   and from the center for arts education for all or part of the 
232.10  school year, as the board considers advisable and subject to its 
232.11  rules.  Notwithstanding any other law to the contrary, the board 
232.12  may charge a reasonable fee for transportation of pupils.  Every 
232.13  driver providing transportation of pupils under this paragraph 
232.14  must possess all qualifications required by the state board of 
232.15  education.  The board may contract for furnishing authorized 
232.16  transportation under rules established by the commissioner of 
232.17  children, families, and learning and may purchase and furnish 
232.18  gasoline to a contract carrier for use in the performance of a 
232.19  contract with the board for transportation of pupils to and from 
232.20  the center for arts education.  When transportation is provided, 
232.21  scheduling of routes, establishment of the location of bus 
232.22  stops, the manner and method of transportation, the control and 
232.23  discipline of pupils, and any other related matter is within the 
232.24  sole discretion, control, and management of the board. 
232.25     (n) The board may provide room and board for its pupils.  
232.26  If the board provides room and board, it shall charge a 
232.27  reasonable fee for the room and board.  The fee is not subject 
232.28  to chapter 14 and is not a prohibited fee according to sections 
232.29  120.71 to 120.76. 
232.30     (o) The board may establish and set fees for services and 
232.31  programs without regard to chapter 14.  If the board sets fees 
232.32  not authorized or prohibited by the Minnesota public school fee 
232.33  law, it may do so without complying with the requirements of 
232.34  section 120.75, subdivision 1. 
232.35     (p) The board may apply for all competitive grants 
232.36  administered by agencies of the state and other government or 
233.1   nongovernment sources. 
233.2      Sec. 3.  [APPROPRIATIONS; DEPARTMENT OF CHILDREN, FAMILIES, 
233.3   AND LEARNING.] 
233.4      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
233.5   LEARNING.] The sums indicated in this section are appropriated 
233.6   from the general fund to the department of children, families, 
233.7   and learning for the fiscal years designated. 
233.8      Subd. 2.  [DEPARTMENT.] For the department of children, 
233.9   families, and learning: 
233.10       $24,360,000    .....      1998
233.11       $23,978,000    .....      1999
233.12     (a) Any balance in the first year does not cancel but is 
233.13  available in the second year. 
233.14     (b) $21,000 each year is from the trunk highway fund. 
233.15     (c) $622,000 in 1998 and $627,000 in 1999 is for the 
233.16  academic excellence foundation. 
233.17     Up to $50,000 each year is contingent upon the match of $1 
233.18  in the previous year from private sources consisting of either 
233.19  direct monetary contributions or in-kind contributions of 
233.20  related goods or services, for each $1 of the appropriation.  
233.21  The commissioner of children, families, and learning must 
233.22  certify receipt of the money or documentation for the private 
233.23  matching funds or in-kind contributions.  The unencumbered 
233.24  balance from the amount actually appropriated from the 
233.25  contingent amount in 1998 does not cancel but is available in 
233.26  1999.  The amount carried forward must not be used to establish 
233.27  a larger annual base appropriation for later fiscal years. 
233.28     (d) $207,000 in 1998 and $210,000 in 1999 is for the state 
233.29  board of education. 
233.30     (e) $230,000 in 1998 and $234,000 in 1999 is for the board 
233.31  of teaching. 
233.32     (f) The expenditures of federal grants and aids as shown in 
233.33  the biennial budget document and its supplements are approved 
233.34  and appropriated and shall be spent as indicated. 
233.35     (g) The department of children, families, and learning 
233.36  shall develop a performance report on the quality of its 
234.1   programs and services.  The report must be consistent with the 
234.2   process specified in Minnesota Statutes, sections 15.90 to 
234.3   15.92.  The goals, objectives, and measures of this report must 
234.4   be developed in cooperation with the chairs of the finance 
234.5   divisions of the education committees of the house of 
234.6   representatives and senate, the department of finance, and the 
234.7   office of legislative auditor.  The report must include data to 
234.8   indicate the progress of the department in meeting its goals and 
234.9   objectives. 
234.10     (h) At least $50,000 is to ensure compliance with state and 
234.11  federal laws prohibiting discrimination because of race, 
234.12  religion, or sex.  The department shall use the appropriation to 
234.13  provide state-level leadership on equal education opportunities 
234.14  which promote elimination of discriminatory practices in the 
234.15  areas of race, religion, and sex in public schools and public 
234.16  educational agencies under its general supervision and on 
234.17  activities including, at least, compliance monitoring and 
234.18  voluntary compliance when local school district deficiencies are 
234.19  found. 
234.20     (i) Notwithstanding Minnesota Statutes, section 15.53, 
234.21  subdivision 2, the commissioner of children, families, and 
234.22  learning may contract with a school district for a period no 
234.23  longer than five consecutive years to work in the development or 
234.24  implementation of the graduation rule.  The commissioner may 
234.25  contract for services and expertise as necessary.  The contracts 
234.26  are not subject to Minnesota Statutes, sections 16B.06 to 16B.08.
234.27     (j) In preparing the department budget for fiscal years 
234.28  2000-2001, the department shall shift all administrative funding 
234.29  from aids appropriations into the appropriation for the 
234.30  department. 
234.31     (k) Reallocations of excesses under Minnesota Statutes, 
234.32  section 124.14, subdivision 7, from appropriations within this 
234.33  act shall only be made to deficiencies in programs with 
234.34  appropriations contained within this act. 
234.35     (l) $850,000 each year is for litigation costs and may only 
234.36  be used for those purposes.  These appropriations are one-time 
235.1   only. 
235.2      (m) Collaborative efforts between the department of 
235.3   children, families, and learning and the office of technology, 
235.4   as specified in Minnesota Statutes, section 237A.015, include: 
235.5      (1) advising the commissioner of children, families, and 
235.6   learning on new and emerging technologies, potential business 
235.7   partnerships, and technical standards; 
235.8      (2) assisting the commissioner of children, families, and 
235.9   learning in the sharing of data between state agencies relative 
235.10  to children's programs; and 
235.11     (3) as requested by the commissioner of children, families, 
235.12  and learning, assisting in collaborative efforts for joint 
235.13  prekindergarten through grade 12 and higher education projects, 
235.14  including the learning network. 
235.15  The commissioner of children, families, and learning shall have 
235.16  final approval for prekindergarten through grade 12 programs and 
235.17  lifelong learning programs, grant awards, and funding decisions. 
235.18     Sec. 4.  [APPROPRIATIONS; LOLA AND RUDY PERPICH MINNESOTA 
235.19  CENTER FOR ARTS EDUCATION.] 
235.20     The sums indicated in this section are appropriated from 
235.21  the general fund to the center for arts education for the fiscal 
235.22  years designated: 
235.23      $5,541,000     .....     1998
235.24      $6,054,000     .....     1999
235.25     Of the fiscal year 1998 appropriation, $154,000 is to fund 
235.26  artist and arts organization participation in the education 
235.27  residency and education technology projects, $75,000 is for 
235.28  school support for the residency project, and $121,000 is for 
235.29  further development of the partners:  arts and school for 
235.30  students (PASS) program, including pilots.  Of the fiscal year 
235.31  1999 appropriation, $154,000 is to fund artist and arts 
235.32  organizations participation in the education residency project, 
235.33  $75,000 is for school support for the residency project, and 
235.34  $121,000 is to fund the PASS program, including additional 
235.35  pilots.  The guidelines for the education residency project and 
235.36  the pass program shall be developed and defined by the center 
236.1   for arts education in cooperation with the Minnesota arts 
236.2   board.  The Minnesota arts board shall participate in the review 
236.3   and allocation process.  The center for arts education and the 
236.4   Minnesota arts board shall cooperate to fund these projects. 
236.5      Any balance in the first year does not cancel but is 
236.6   available in the second year. 
236.7      Sec. 5.  [APPROPRIATIONS; FARIBAULT ACADEMIES.] 
236.8      The sums indicated in this section are appropriated from 
236.9   the general fund to the department of children, families, and 
236.10  learning for the Faribault academies for the fiscal years 
236.11  designated:  
236.12       $8,910,000     .....     1998
236.13       $8,908,000     .....     1999 
236.14     Any balance in the first year does not cancel but is 
236.15  available in the second year. 
236.16     In the next biennial budget, the academies must assess 
236.17  their progress in meeting the established performance measures 
236.18  for the Faribault academies and inform the legislature on the 
236.19  content of that assessment.  The information must include an 
236.20  assessment of its progress by consumers and employees. 
236.21     Sec. 6.  [EFFECTIVE DATE.] 
236.22     If this act is enacted on or after July 1, 1997, sections 1 
236.23  to 5 are effective the day following final enactment. 
236.24                             ARTICLE 11
236.25                TECHNICAL AND CONFORMING AMENDMENTS
236.26     Section 1.  Minnesota Statutes 1996, section 124.155, 
236.27  subdivision 2, is amended to read: 
236.28     Subd. 2.  [ADJUSTMENT TO AIDS.] (a) The amount specified in 
236.29  subdivision 1 shall be used to adjust the following state aids 
236.30  and credits in the order listed: 
236.31     (1) general education aid authorized in sections 124A.23 
236.32  and 124B.20; 
236.33     (2) secondary vocational aid authorized in section 124.573; 
236.34     (3) special education aid authorized in sections 124.32, 
236.35  124.3201, and 124.3202; 
236.36     (4) secondary vocational school-to-work program aid for 
237.1   children with a disability authorized in section 124.574; 
237.2      (5) aid for pupils of limited English proficiency 
237.3   authorized in section 124.273; 
237.4      (6) transportation aid authorized in section 124.225; 
237.5      (7) community education programs aid authorized in section 
237.6   124.2713; 
237.7      (8) adult education aid authorized in section 124.26; 
237.8      (9) early childhood family education aid authorized in 
237.9   section 124.2711; 
237.10     (10) capital expenditure aid authorized in sections 
237.11  124.243, 124.244, and 124.83; 
237.12     (11) school district cooperation aid authorized in section 
237.13  124.2727; 
237.14     (12) assurance of mastery aid according to section 124.311; 
237.15     (13) homestead and agricultural credit aid, disparity 
237.16  credit and aid, and changes to credits for prior year 
237.17  adjustments according to section 273.1398, subdivisions 2, 3, 4, 
237.18  and 7; 
237.19     (14) attached machinery aid authorized in section 273.138, 
237.20  subdivision 3; 
237.21     (15) alternative delivery aid authorized in section 
237.22  124.322; 
237.23     (16) special education equalization aid authorized in 
237.24  section 124.321; 
237.25     (17) special education excess cost aid authorized in 
237.26  section 124.323; 
237.27     (18) learning readiness aid authorized in section 124.2615; 
237.28  and 
237.29     (19) cooperation-combination aid authorized in section 
237.30  124.2725. 
237.31     (b) The commissioner of children, families, and learning 
237.32  shall schedule the timing of the adjustments to state aids and 
237.33  credits specified in subdivision 1, as close to the end of the 
237.34  fiscal year as possible. 
237.35     Sec. 2.  Minnesota Statutes 1996, section 124.321, 
237.36  subdivision 1, is amended to read: 
238.1      Subdivision 1.  [LEVY EQUALIZATION REVENUE.] (a) For fiscal 
238.2   years 1996 and later, special education levy equalization 
238.3   revenue for a school district, excluding an intermediate school 
238.4   district, equals the sum of the following amounts: 
238.5      (1) the levy percentage factor for that year times the 
238.6   district's special education revenue under section 124.3201; 
238.7   plus 
238.8      (2) the levy percentage factor for that year times the 
238.9   district's special education summer program revenue under 
238.10  section 124.3202; plus 
238.11     (3) the levy percentage factor for that year times the 
238.12  district's special education excess cost revenue under section 
238.13  124.323; plus 
238.14     (4) the levy percentage factor for that year times the 
238.15  district's secondary vocational education school-to-work program 
238.16  for children with a disability revenue under section 124.574; 
238.17  plus 
238.18     (5) the levy percentage factor for that year times the 
238.19  district's limited English proficiency programs revenue under 
238.20  section 124.273. 
238.21     Sec. 3.  Minnesota Statutes 1996, section 124A.225, 
238.22  subdivision 1, is amended to read: 
238.23     Subdivision 1.  [REVENUE.] Of a district's general 
238.24  education revenue an amount equal to the sum of the number of 
238.25  elementary fund balance pupils in average daily membership 
238.26  defined in section 124.17, subdivision 1h 1f, and one-half of 
238.27  the number of kindergarten fund balance pupils in average daily 
238.28  membership as defined in section 124.17, subdivision 1h 1f, 
238.29  times .06 for fiscal year 1995 and thereafter times the formula 
238.30  allowance must be reserved according to this section. 
238.31     Sec. 4.  [EFFECTIVE DATE.] 
238.32     If this act is enacted on or after July 1, 1997, sections 1 
238.33  to 3 are effective the day following final enactment. 
238.34                             ARTICLE 12 
238.35                         SCHOOL BUS SAFETY 
238.36     Section 1.  [121.175] [ADVERTISING ON SCHOOL BUSES.] 
239.1      (a) The commissioner, through a competitive process, and 
239.2   with the approval of the school bus safety advisory committee 
239.3   may contract with advertisers regarding advertising on school 
239.4   buses.  At a minimum, the contract must prohibit advertising and 
239.5   advertising images that: 
239.6      (1) solicit the sale of, or promote the use of, alcoholic 
239.7   beverages and tobacco products; 
239.8      (2) are discriminatory in nature or content; 
239.9      (3) imply or declare an endorsement of the product or 
239.10  service by the school district; 
239.11     (4) contain obscene material; 
239.12     (5) are false, misleading, or deceptive; or 
239.13     (6) relate to an illegal activity or antisocial behavior. 
239.14     (b) Advertisement must meet the following conditions: 
239.15     (1) the advertising attached to the school bus does not 
239.16  interfere with bus identification under section 169.441; and 
239.17     (2) the bus with attached advertising meets the school bus 
239.18  equipment standards under sections 169.4501 to 169.4504. 
239.19     (c) All buses operated by school districts may be attached 
239.20  with advertisements under the state contract.  All school 
239.21  district contracts shall include a provision for advertisement.  
239.22  Each school district shall be reimbursed by the advertiser for 
239.23  all costs incurred by the district and its contractors for 
239.24  supporting the advertising program, including, but not limited 
239.25  to, retrofitting buses, storing advertising, attaching 
239.26  advertising to the bus, and related maintenance. 
239.27     (d) The commissioner shall hold harmless and indemnify each 
239.28  district for all liabilities arising from the advertising 
239.29  program.  Each district must tender defense of all such claims 
239.30  to the commissioner within five days of receipt. 
239.31     (e) All revenue from the contract shall be deposited in the 
239.32  general fund. 
239.33     Sec. 2.  Minnesota Statutes 1996, section 123.799, 
239.34  subdivision 1, is amended to read: 
239.35     Subdivision 1.  [RESERVED REVENUE USE.] A district shall 
239.36  use the student transportation safety reserved revenue under 
240.1   section 124.225, subdivision 7f, for providing student 
240.2   transportation safety programs to enhance student conduct and 
240.3   safety on the bus or when boarding and exiting the bus.  A 
240.4   district's student transportation policy must specify the 
240.5   student transportation safety activities to be carried out under 
240.6   this section.  A district's student transportation safety 
240.7   reserved revenue may only be used for the following purposes: 
240.8      (1) to provide paid adult bus monitors, including training 
240.9   and salary costs; 
240.10     (2) to provide a volunteer bus monitor program, including 
240.11  training costs and the cost of a program coordinator; 
240.12     (3) to purchase or lease optional external public address 
240.13  systems or video recording cameras for use on buses; and 
240.14     (4) to purchase new or retrofit existing school buses with 
240.15  seatbelts or other occupant restraint systems after consultation 
240.16  with and approval by the commissioner of public safety; and 
240.17     (4) (5) other activities or equipment that have been 
240.18  reviewed by the state school bus safety advisory committee and 
240.19  approved by the commissioner of public safety. 
240.20     Sec. 3.  Minnesota Statutes 1996, section 123.7991, 
240.21  subdivision 1, is amended to read: 
240.22     Subdivision 1.  [SCHOOL BUS SAFETY WEEK.] The first third 
240.23  week of school is designated as school bus safety week. 
240.24     A school board may designate one day of school bus safety 
240.25  week as school bus driver day. 
240.26     Sec. 4.  Minnesota Statutes 1996, section 123.7991, 
240.27  subdivision 2, is amended to read: 
240.28     Subd. 2.  [STUDENT TRAINING.] (a) Each school district 
240.29  shall provide public school pupils enrolled in grades 
240.30  kindergarten through 10 with age-appropriate school bus safety 
240.31  training.  The training shall be results-oriented and shall 
240.32  consist of both classroom instruction and practical training 
240.33  using a school bus.  Upon completing the training, a student 
240.34  shall be able to demonstrate knowledge and understanding of at 
240.35  least the following competencies and concepts: 
240.36     (1) transportation by school bus is a privilege and not a 
241.1   right; 
241.2      (2) district policies for student conduct and school bus 
241.3   safety; 
241.4      (3) appropriate conduct while on the school bus; 
241.5      (4) the danger zones surrounding a school bus; 
241.6      (5) procedures for safely boarding and leaving a school 
241.7   bus; 
241.8      (6) procedures for safe street or road crossing; and 
241.9      (7) school bus evacuation and other emergency procedures. 
241.10     (b) Each nonpublic school located within the district shall 
241.11  provide all nonpublic school pupils enrolled in grades 
241.12  kindergarten through 10 who are transported by school bus at 
241.13  public expense and attend school within the district's 
241.14  boundaries with training as required in paragraph (a).  The 
241.15  school district shall make a bus available for the practical 
241.16  training if the district transports the nonpublic students.  
241.17  Each nonpublic school shall provide the instruction. 
241.18     (c) Student school bus safety training shall commence 
241.19  during school bus safety week.  All students enrolled in grades 
241.20  kindergarten through 3 who are transported by school bus and are 
241.21  enrolled during the first or second week of school must 
241.22  demonstrate achievement of the school bus safety training 
241.23  competencies by the end of the third week of school.  All 
241.24  students enrolled in grades 4 through 10 who are transported by 
241.25  school bus and are enrolled during the first or second week of 
241.26  school must demonstrate achievement of the competencies by the 
241.27  end of the sixth week of school.  Students enrolled in grades 
241.28  kindergarten through 10 who enroll in a school after the second 
241.29  week of school and are transported by school bus shall undergo 
241.30  school bus safety training and demonstrate achievement of the 
241.31  school bus safety competencies within four weeks of the first 
241.32  day of attendance.  The pupil transportation safety director in 
241.33  each district must certify to the commissioner of children, 
241.34  families, and learning annually that all students transported by 
241.35  school bus within the district have satisfactorily demonstrated 
241.36  knowledge and understanding of the school bus safety 
242.1   competencies according to this section or provide an explanation 
242.2   for a student's failure to demonstrate the competencies.  The 
242.3   principal or other chief administrator of each nonpublic school 
242.4   must certify annually to the public transportation safety 
242.5   director of the district in which the school is located that all 
242.6   of the school's students transported by school bus at public 
242.7   expense have received training.  A school district may deny 
242.8   transportation to a student who fails to demonstrate the 
242.9   competencies, unless the student is unable to achieve the 
242.10  competencies due to a disability, or to a student who attends a 
242.11  nonpublic school that fails to provide training as required by 
242.12  this subdivision. 
242.13     (d) A school district and a nonpublic school with students 
242.14  transported by school bus at public expense must, to the extent 
242.15  possible, provide kindergarten pupils with bus safety training 
242.16  before the first day of school. 
242.17     (e) A school district and a nonpublic school with students 
242.18  transported by school bus at public expense must also provide 
242.19  student safety education for bicycling and pedestrian safety, 
242.20  for students enrolled in grades kindergarten through 5. 
242.21     (f) A school district and a nonpublic school with students 
242.22  transported by school bus at public expense must make reasonable 
242.23  accommodations for the school bus, bicycle, and pedestrian 
242.24  safety training of pupils known to speak English as a second 
242.25  language and pupils with disabilities. 
242.26     Sec. 5.  Minnesota Statutes 1996, section 169.01, 
242.27  subdivision 6, is amended to read: 
242.28     Subd. 6.  [SCHOOL BUS.] "School bus" means a motor vehicle 
242.29  used to transport pupils to or from a school defined in section 
242.30  120.101, or to or from school-related activities, by the school 
242.31  or a school district, or by someone under an agreement with the 
242.32  school or a school district.  A school bus does not include a 
242.33  motor vehicle transporting children to or from school for which 
242.34  parents or guardians receive direct compensation from a school 
242.35  district, a motor coach operating under charter carrier 
242.36  authority, a transit bus providing services as defined in 
243.1   section 174.22, subdivision 7, or a vehicle otherwise qualifying 
243.2   as a type III vehicle under paragraph (5), when the vehicle is 
243.3   properly registered and insured and being driven by an employee 
243.4   or agent of a school district for nonscheduled transportation.  
243.5   A school bus may be type A, type B, type C, or type D, or type 
243.6   III as follows:  
243.7      (1) A "type A school bus" is a conversion or body 
243.8   constructed upon a van-type compact truck or a front-section 
243.9   vehicle, with a gross vehicle weight rating of 10,000 pounds or 
243.10  less or cutaway front section vehicle with a left-side driver's 
243.11  door, designed for carrying more than ten persons.  This 
243.12  definition includes two classifications:  type A-I, with a gross 
243.13  vehicle weight rating (GVWR) over 10,000 pounds; and type A-II, 
243.14  with a GVWR of 10,000 pounds or less. 
243.15     (2) A "type B school bus" is a conversion or body 
243.16  constructed and installed upon a van or front-section vehicle 
243.17  chassis, or stripped chassis, with a gross vehicle weight rating 
243.18  of more than 10,000 pounds, designed for carrying more than ten 
243.19  persons.  Part of the engine is beneath or behind the windshield 
243.20  and beside the driver's seat.  The entrance door is behind the 
243.21  front wheels. 
243.22     (3) A "type C school bus" is a body installed upon a flat 
243.23  back cowl chassis with a gross vehicle weight rating of more 
243.24  than 10,000 pounds, designed for carrying more than ten 
243.25  persons.  All of the engine is in front of the windshield and 
243.26  the entrance door is behind the front wheels. 
243.27     (4) A "type D school bus" is a body installed upon a 
243.28  chassis, with the engine mounted in the front, midship or rear, 
243.29  with a gross vehicle weight rating of more than 10,000 pounds, 
243.30  designed for carrying more than ten persons.  The engine may be 
243.31  behind the windshield and beside the driver's seat; it may be at 
243.32  the rear of the bus, behind the rear wheels, or midship between 
243.33  the front and rear axles.  The entrance door is ahead of the 
243.34  front wheels. 
243.35     (5) Type III school buses and type III Head Start buses are 
243.36  restricted to passenger cars, station wagons, vans, and buses 
244.1   having a maximum manufacturer's rated seating capacity of ten 
244.2   people, including the driver, and a gross vehicle weight rating 
244.3   of 10,000 pounds or less.  In this subdivision, "gross vehicle 
244.4   weight rating" means the value specified by the manufacturer as 
244.5   the loaded weight of a single vehicle.  A "type III school bus" 
244.6   and "type III Head Start bus" must not be outwardly equipped and 
244.7   identified as a type A, B, C, or D school bus or type A, B, C, 
244.8   or D Head Start bus. 
244.9      Sec. 6.  Minnesota Statutes 1996, section 169.435, 
244.10  subdivision 2, is amended to read: 
244.11     Subd. 2.  [SCHOOL BUS SAFETY ADVISORY COMMITTEE.] (a) The 
244.12  commissioner of public safety shall establish the school bus 
244.13  safety advisory committee.  The commissioner shall provide the 
244.14  committee with meeting space and clerical support.  The 
244.15  commissioner of public safety or the commissioner's designee 
244.16  shall chair the committee.  The members of the committee also 
244.17  shall include: 
244.18     (1) the commissioner of children, families, and learning or 
244.19  the commissioner's designee; 
244.20     (2) the commissioner of human rights or the commissioner's 
244.21  designee; 
244.22     (3) a county or city attorney; 
244.23     (4) a representative of the state patrol; 
244.24     (5) a school board member; 
244.25     (6) a school superintendent; 
244.26     (7) two school bus drivers, one representing the 
244.27  metropolitan area and one representing greater Minnesota; 
244.28     (8) two school transportation contractors, one representing 
244.29  the metropolitan areas and one representing greater Minnesota; 
244.30     (9) two school transportation safety directors, one 
244.31  representing the metropolitan area and one representing greater 
244.32  Minnesota; and 
244.33     (10) five public members, including at least four parents 
244.34  of children who ride a school bus, among them a parent of a 
244.35  child with a disability.  The public members shall be 
244.36  geographically representative. 
245.1      The commissioner of public safety, in consultation with the 
245.2   commissioner of children, families, and learning, shall appoint 
245.3   the members listed in clauses (3) to (9).  The governor shall 
245.4   appoint the public members in clause (10).  Terms, compensation, 
245.5   and removal of committee members shall be according to section 
245.6   15.059.  The committee shall meet quarterly or as required by 
245.7   the chair. 
245.8      (b) The duties of the committee shall include: 
245.9      (1) an annual report by January 15 to the governor and the 
245.10  education committees of the legislature, including 
245.11  recommendations for legislative action when needed, on student 
245.12  bus safety education, school bus equipment requirements and 
245.13  inspection, including seat belts and other occupant restraint 
245.14  systems, bus driver licensing, training, and qualifications, bus 
245.15  operation procedures, student behavior and discipline, rules of 
245.16  the road, school bus safety education for the public, or any 
245.17  other aspects of school transportation safety the committee 
245.18  considers appropriate; 
245.19     (2) a quarterly review of all school transportation 
245.20  accidents, crimes, incidents of serious misconduct, incidents 
245.21  that result in serious personal injury or death, and bus driver 
245.22  dismissals for cause; and 
245.23     (3) periodic review of school district comprehensive 
245.24  transportation safety policies. 
245.25     (c) The committee expires June 30, 2001. 
245.26     Sec. 7.  Minnesota Statutes 1996, section 169.443, 
245.27  subdivision 3, is amended to read: 
245.28     Subd. 3.  [WHEN SIGNALS NOT USED.] School bus drivers shall 
245.29  not activate the prewarning flashing amber signals or flashing 
245.30  red signals and shall not use the stop arm signal: 
245.31     (1) in special school bus loading areas where the bus is 
245.32  entirely off the traveled portion of the roadway and where no 
245.33  other motor vehicle traffic is moving or is likely to be moving 
245.34  within 20 feet of the bus; 
245.35     (2) in residence districts or business districts, as 
245.36  defined in section 169.01, of home rule or statutory cities when 
246.1   directed not to do so, in writing, by the local school 
246.2   administrator board; 
246.3      (3) when a school bus is being used on a street or highway 
246.4   for purposes other than the actual transportation of school 
246.5   children to or from school or a school-approved activity, except 
246.6   as provided in subdivision 8; 
246.7      (4) at railroad grade crossings; and 
246.8      (5) when loading and unloading people while the bus is 
246.9   completely off the traveled portion of a separated, one-way 
246.10  roadway that has adequate shoulders.  The driver shall drive the 
246.11  bus completely off the traveled portion of this roadway before 
246.12  loading or unloading people. 
246.13     Sec. 8.  Minnesota Statutes 1996, section 169.447, 
246.14  subdivision 6, is amended to read: 
246.15     Subd. 6.  [OVERHEAD BOOK RACKS; STORAGE COMPARTMENTS.] 
246.16  Types A, B, C, and D School buses may be equipped with padded, 
246.17  permanent overhead book racks that do not hang over the center 
246.18  aisle of the bus.  School buses manufactured after January 1, 
246.19  1998, may also be equipped with interior overhead storage 
246.20  compartments provided they meet the requirements of the 1995 
246.21  "National Standards for School Buses and School Bus Operations." 
246.22     Sec. 9.  Minnesota Statutes 1996, section 169.4501, 
246.23  subdivision 1, is amended to read: 
246.24     Subdivision 1.  [NATIONAL STANDARDS ADOPTED.] Except as 
246.25  provided in sections 169.4502 and 169.4503, the construction, 
246.26  design, equipment, and color of types A, B, C, and D school 
246.27  buses used for the transportation of school children shall meet 
246.28  the requirements of the "bus chassis standards" and "bus body 
246.29  standards" in the 1990 1995 revised edition of the "National 
246.30  Standards for School Buses and School Bus Operations" adopted by 
246.31  the Eleventh Twelfth National Conference on School 
246.32  Transportation and published by the National Safety Council.  
246.33  Except as provided in section 169.4504, the construction, 
246.34  design, and equipment of types A, B, C, and D school buses used 
246.35  for the transportation of students with disabilities also shall 
246.36  meet the requirements of the "specially equipped school bus 
247.1   standards" in the 1990 1995 National Standards for School Buses 
247.2   and School Bus Operations.  The "bus chassis standards," "bus 
247.3   body standards," and "specially equipped school bus standards" 
247.4   sections of the 1990 1995 revised edition of the "National 
247.5   Standards for School Buses and School Bus Operations" are 
247.6   incorporated by reference in this chapter. 
247.7      Sec. 10.  Minnesota Statutes 1996, section 169.4501, 
247.8   subdivision 2, is amended to read: 
247.9      Subd. 2.  [APPLICABILITY.] (a) The standards adopted in 
247.10  this section and sections 169.4502 and 169.4503, govern the 
247.11  construction, design, equipment, and color of school buses used 
247.12  for the transportation of school children, when owned and 
247.13  operated by a school or privately owned and operated under a 
247.14  contract with a school, and these standards must be made a part 
247.15  of that contract by reference.  Each school, its officers and 
247.16  employees, and each person employed under the contract is 
247.17  subject to these standards. 
247.18     (b) The standards apply to school buses manufactured after 
247.19  December 31, 1994 1997.  Buses complying with these standards 
247.20  when manufactured need not comply with standards established 
247.21  later except as specifically provided for by law. 
247.22     (c) A school bus manufactured on or before December 31, 
247.23  1994 1997, must conform to the Minnesota standards in effect on 
247.24  the date the vehicle was manufactured except as specifically 
247.25  provided for in law. 
247.26     (d) A new bus body may be remounted on a used chassis 
247.27  provided that the remounted vehicle meets state and federal 
247.28  standards for new buses which are current at the time of the 
247.29  remounting.  Permission must be obtained from the commissioner 
247.30  of public safety before the remounting is done.  A used bus body 
247.31  may not be remounted on a new or used chassis. 
247.32     Sec. 11.  Minnesota Statutes 1996, section 169.4502, 
247.33  subdivision 2, is amended to read: 
247.34     Subd. 2.  [BRAKES.] The braking system must include an 
247.35  emergency brake.  The braking system must meet federal motor 
247.36  vehicle safety standards in effect at the time of manufacture.  
248.1   All buses manufactured with air brakes after January 1, 1995, 
248.2   shall have automatic slack adjusters. 
248.3      Sec. 12.  Minnesota Statutes 1996, section 169.4502, 
248.4   subdivision 7, is amended to read: 
248.5      Subd. 7.  [EXHAUST SYSTEM.] The tailpipe must: 
248.6      (1) extend to but not more than one inch beyond the bumper 
248.7   and be mounted outside of the chassis frame rail; or 
248.8      (2) extend to but not more than one inch two inches beyond 
248.9   the left side of the bus, behind the driver's compartment.  A 
248.10  type A bus and a type B bus with a gross vehicle weight rating 
248.11  under 15,000 pounds, shall comply with the manufacturer's 
248.12  standard.  No exhaust pipe may exit beneath an emergency exit, 
248.13  or, on a type C or type D bus, under the fuel fill location.  No 
248.14  exhaust pipe shall be reduced in size beyond the muffler. 
248.15     Sec. 13.  Minnesota Statutes 1996, section 169.4502, 
248.16  subdivision 9, is amended to read: 
248.17     Subd. 9.  [FUEL TANK.] If mounted behind the rear wheels, 
248.18  the fuel tank on a vehicle constructed with a power lift unit 
248.19  shall be between the frame rails.  Fuel tanks for a type A bus 
248.20  and for a type B bus with a gross vehicle weight rating under 
248.21  15,000 pounds may must be manufacturer manufacturer's standard 
248.22  and must conform with federal motor vehicle safety standard 
248.23  number 301, Code of Federal Regulations, title 49, part 571. 
248.24     Sec. 14.  Minnesota Statutes 1996, section 169.4502, 
248.25  subdivision 11, is amended to read: 
248.26     Subd. 11.  [TIRES AND RIMS.] The use of multipiece rims or 
248.27  tube-type tires is permitted.  Radial and bias ply tires shall 
248.28  not be used on the same axle.  Front tire tread depth shall not 
248.29  be less than 4/32 inch in any major tire tread groove. Rear tire 
248.30  tread shall not be less than 2/32 inch.  Tires must be measured 
248.31  in three locations around the tire, in two adjoining grooves.  
248.32  No recapped tires shall be used on the front wheels.  Recapped 
248.33  tires are permitted on the rear wheels. 
248.34     Sec. 15.  Minnesota Statutes 1996, section 169.4502, is 
248.35  amended by adding a subdivision to read: 
248.36     Subd. 13.  [AIR CLEANER.] The air intake system for diesel 
249.1   buses may have an air cleaner restriction indicator installed. 
249.2      Sec. 16.  Minnesota Statutes 1996, section 169.4502, is 
249.3   amended by adding a subdivision to read: 
249.4      Subd. 14.  [CLUTCH.] A starter interlock may be installed 
249.5   to prevent actuation of the starter if the clutch is not 
249.6   depressed. 
249.7      Sec. 17.  Minnesota Statutes 1996, section 169.4502, is 
249.8   amended by adding a subdivision to read: 
249.9      Subd. 15.  [OIL FILTER.] An oil filtration system may be 
249.10  used in lieu of an oil filter. 
249.11     Sec. 18.  Minnesota Statutes 1996, section 169.4503, 
249.12  subdivision 1, is amended to read: 
249.13     Subdivision 1.  [RELATION TO NATIONAL STANDARDS.] The bus 
249.14  body standards contained in this section are required in 
249.15  addition to those required by sections 169.450 169.4501 and 
249.16  169.4502.  When a Minnesota standard contained in this section 
249.17  conflicts with a national standard adopted in section 169.450 
249.18  169.4501, the Minnesota standard contained in this section is 
249.19  controlling. 
249.20     Sec. 19.  Minnesota Statutes 1996, section 169.4503, 
249.21  subdivision 2, is amended to read: 
249.22     Subd. 2.  [BACKUP WARNING ALARM.] An automatic audible 
249.23  backup alarm may be installed.  A spring-loaded button in the 
249.24  driver's compartment that will temporarily disable the backup 
249.25  alarm is allowed for usage in school bus overnight parking lots 
249.26  and repair facilities. 
249.27     Sec. 20.  Minnesota Statutes 1996, section 169.4503, 
249.28  subdivision 10, is amended to read: 
249.29     Subd. 10.  [EMERGENCY EQUIPMENT; FIRE EXTINGUISHERS.] The 
249.30  fire extinguisher must have at least a 10BC rating The bus must 
249.31  be equipped with at least one UL-approved pressurized, dry 
249.32  chemical fire extinguisher with a total rating of 2A10BC or 
249.33  greater. 
249.34     Sec. 21.  Minnesota Statutes 1996, section 169.4503, 
249.35  subdivision 13, is amended to read: 
249.36     Subd. 13.  [IDENTIFICATION.] (a) Each bus shall, in the 
250.1   beltline, identify the school district serviced, or company 
250.2   name, or owner of the bus.  Numbers necessary for identification 
250.3   must appear on the sides and rear of the bus.  Symbols or 
250.4   letters may be used on the outside of the bus near the entrance 
250.5   door for student identification.  A manufacturer's nameplate or 
250.6   logo may be placed on the side of the bus near the entrance door 
250.7   and on the rear. 
250.8      (b) Effective December 31, 1994, all buses sold must 
250.9   display lettering "Unlawful to pass when red lights are 
250.10  flashing" on the rear of the bus.  The lettering shall be in 
250.11  two-inch black letters on school bus yellow background.  This 
250.12  message shall be displayed directly below the upper window of 
250.13  the rear door.  On rear engine buses, it shall be centered at 
250.14  approximately the same location.  Only signs and lettering 
250.15  approved or required by state law may be displayed. 
250.16     Sec. 22.  Minnesota Statutes 1996, section 169.4503, 
250.17  subdivision 14, is amended to read: 
250.18     Subd. 14.  [INSULATION.] (a) Ceilings and wall shall be 
250.19  insulated to a minimum of one and one-half inch fiberglass and 
250.20  installed so the insulation does not compact or sag.  Floor 
250.21  insulation must be nominal 19/32 inches thick plywood, or a 
250.22  material of equal or greater strength and insulation R value 
250.23  that equals or exceeds properties of exterior-type softwood 
250.24  plywood, C-D grade as specified in standard issued by the United 
250.25  States Department of Commerce.  Type A and B A-II buses with a 
250.26  gross vehicle weight rating under 15,000 pounds must have a 
250.27  minimum of one-half inch plywood.  All exposed edges on plywood 
250.28  shall be sealed.  Every school bus shall be constructed so that 
250.29  the noise level taken at the ear of the occupant nearest to the 
250.30  primary vehicle noise source shall not exceed 85 dba when tested 
250.31  according to procedures in the 1990 1995 National Standards for 
250.32  School Buses and School Bus Operations. 
250.33     (b) The underside of metal floor may be undercoated with 
250.34  polyurethane floor insulation, foamed in place.  The floor 
250.35  insulation must be combustion resistant.  The authorization in 
250.36  this paragraph does not replace the plywood requirement. 
251.1      Sec. 23.  Minnesota Statutes 1996, section 169.4503, 
251.2   subdivision 17, is amended to read: 
251.3      Subd. 17.  [MIRRORS.] A type B bus with a gross vehicle 
251.4   weight rating less than 15,000 pounds shall have a minimum of 
251.5   six-inch by 16-inch mirror.  A type B bus with a gross vehicle 
251.6   weight rating over 15,000 pounds shall have a minimum of a 
251.7   six-inch by 30-inch mirror.  After January 1, 1995, all school 
251.8   buses must be equipped with a minimum of two crossover mirrors, 
251.9   mounted to the left and right sides of the bus. 
251.10     Sec. 24.  Minnesota Statutes 1996, section 169.4503, 
251.11  subdivision 19, is amended to read: 
251.12     Subd. 19.  [RUB RAILS.] There shall be one rub rail at the 
251.13  base of the skirt of the bus on all type A, excluding van 
251.14  conversions, B, C, and D buses. 
251.15     Sec. 25.  Minnesota Statutes 1996, section 169.4503, 
251.16  subdivision 23, is amended to read: 
251.17     Subd. 23.  [WINDOWS.] Windshield, entrance, and rear 
251.18  emergency exit doors must be of approved safety glass.  
251.19  Laminated or tempered glass (AS-2 or AS-3) is permitted in all 
251.20  other windows.  All glass shall be federally approved and marked 
251.21  as provided in section 169.74.  The windshield may be of uniform 
251.22  tint throughout or may have a horizontal gradient band starting 
251.23  slightly above the line of vision and gradually decreasing in 
251.24  light transmission to 20 percent or less at the top of the 
251.25  windshield.  The use of tinted glass, as approved by section 
251.26  169.71, is permitted on side windows and rear windows except for 
251.27  the entrance door, the first window behind the service door, and 
251.28  the window to the left of the driver.  The window to the left of 
251.29  the driver, the upper service door windows, and the window 
251.30  immediately behind the entrance door must be thermal glass.  The 
251.31  window to the left of the driver for type A and B buses with a 
251.32  gross vehicle weight rating under 15,000 pounds need not be 
251.33  thermal glass. 
251.34     Sec. 26.  Minnesota Statutes 1996, section 169.4503, 
251.35  subdivision 24, is amended to read: 
251.36     Subd. 24.  [WIRING.] If not protected by a grommet, wire 
252.1   that passes through holes shall be encased in an 
252.2   abrasive-resistant protective covering.  If a master cutoff 
252.3   switch is used, it shall not be wired as to kill power to the 
252.4   electric brake system. 
252.5      Sec. 27.  Minnesota Statutes 1996, section 169.4503, is 
252.6   amended by adding a subdivision to read: 
252.7      Subd. 25.  [DRIVER COMPARTMENT.] The driver's seat must be 
252.8   a high-back seat. 
252.9      Sec. 28.  Minnesota Statutes 1996, section 169.4504, 
252.10  subdivision 1, is amended to read: 
252.11     Subdivision 1.  [RELATION TO NATIONAL STANDARDS.] The 
252.12  specially equipped school bus standards contained in this 
252.13  section are required in addition to those required by section 
252.14  169.450 169.4501.  When a Minnesota standard contained in this 
252.15  section conflicts with a national standard adopted in 
252.16  section 169.450 169.4501, the Minnesota standard contained in 
252.17  this section is controlling. 
252.18     Sec. 29.  Minnesota Statutes 1996, section 169.4504, is 
252.19  amended by adding a subdivision to read: 
252.20     Subd. 6.  [SECUREMENT AND RESTRAINT SYSTEM.] The securement 
252.21  and restraint system must be located and installed so that when 
252.22  an occupied wheelchair or other mobility aid is secured, the 
252.23  installation meets the requirements of the applicable federal 
252.24  motor vehicle safety standard. 
252.25     Sec. 30.  Minnesota Statutes 1996, section 169.452, is 
252.26  amended to read: 
252.27     169.452 [ACCIDENT AND SERIOUS INCIDENT REPORTING.] 
252.28     The department of public safety shall develop uniform 
252.29  definitions of a school bus accident, an incident of serious 
252.30  misconduct, and an incident that results in personal injury or 
252.31  death.  The department shall determine what type of information 
252.32  on school bus accidents and incidents, including criminal 
252.33  conduct, and bus driver dismissals for cause should be collected 
252.34  and develop a uniform accident and incident reporting form to 
252.35  collect those data, including data relating to type III 
252.36  vehicles, statewide.  In addition to the form, the department 
253.1   shall have an alternative method of reporting that allows school 
253.2   districts to use computer technology to provide the required 
253.3   information.  School districts selected by the commissioner 
253.4   shall report the information required by the department using 
253.5   either format.  A school district must not be charged for 
253.6   reporting forms or reporting procedures under this section.  
253.7   Data collected under this section shall be analyzed to help 
253.8   develop accident, crime, and misconduct prevention programs.  
253.9   This section is not subject to chapter 14. 
253.10     Sec. 31.  Minnesota Statutes 1996, section 171.321, 
253.11  subdivision 3, is amended to read: 
253.12     Subd. 3.  [STUDY OF APPLICANT.] (a) Before issuing or 
253.13  renewing a school bus endorsement, the commissioner shall 
253.14  conduct a criminal and driver's license records check of the 
253.15  applicant.  The commissioner may also conduct the check at any 
253.16  time while a person is so licensed.  The check shall consist of 
253.17  a criminal records check of the state criminal records 
253.18  repository and a check of the driver's license records system.  
253.19  If the applicant has resided in Minnesota for less than five 
253.20  years, the check shall also include a criminal records check of 
253.21  information from the state law enforcement agencies in the 
253.22  states where the person resided during the five years before 
253.23  moving to Minnesota, and of the national criminal records 
253.24  repository including the criminal justice data communications 
253.25  network.  The applicant's failure to cooperate with the 
253.26  commissioner in conducting the records check is reasonable cause 
253.27  to deny an application or cancel a school bus endorsement.  The 
253.28  commissioner may not release the results of the records check to 
253.29  any person except the applicant. 
253.30     (b) The commissioner may issue to an otherwise qualified 
253.31  applicant a temporary school bus endorsement, effective for no 
253.32  more than 120 180 days, upon presentation of (1) an affidavit by 
253.33  the applicant that the applicant has not been convicted of a 
253.34  disqualifying offense and (2) a criminal history check from each 
253.35  state of residence for the previous five years.  The criminal 
253.36  history check may be conducted and prepared by any public or 
254.1   private source acceptable to the commissioner.  The commissioner 
254.2   may reissue the temporary endorsement if the National Criminal 
254.3   Records Repository check is timely submitted but not completed 
254.4   within the 180-day period. 
254.5      Sec. 32.  Minnesota Statutes 1996, section 171.3215, 
254.6   subdivision 4, is amended to read: 
254.7      Subd. 4.  [WAIVER OF PERMANENT CANCELLATION.] The 
254.8   commissioner of public safety or the commissioner's designee, in 
254.9   consultation with the school bus safety advisory committee 
254.10  division of driver and vehicle services, may waive the permanent 
254.11  cancellation requirement of section 171.3215 for a person 
254.12  convicted of a nonfelony violation of chapter 152 or a felony 
254.13  that is not a violent crime under section 609.152. 
254.14     Sec. 33.  [APPROPRIATIONS.] 
254.15     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES AND 
254.16  LEARNING.] The sums indicated in this section are appropriated 
254.17  from the general fund to the department of children, families, 
254.18  and learning for the fiscal years designated. 
254.19     Subd. 2.  [LEARNING READINESS; HEAD START PROGRAMS; 
254.20  ECFE.] For learning readiness programs; Head Start programs; and 
254.21  early childhood family education programs: 
254.22       $2,500,000      .....     1998
254.23       $2,500,000      .....     1999
254.24     Of this amount, one-third shall be allocated to each 
254.25  program.  This appropriation shall be proportionally reduced if 
254.26  the revenue in any year under Minnesota Statutes 1996, section 
254.27  121.175, is less than the appropriation.  The commissioner may 
254.28  also use part of the appropriation to reimburse districts that 
254.29  can demonstrate it incurred excess costs in implementing 
254.30  Minnesota Statutes 1996, section 121.175. 
254.31     Sec. 34.  [REPEALER.] 
254.32     Minnesota Statutes 1996, sections 169.4502, subdivision 6; 
254.33  169.4503, subdivisions 3, 8, 9, 11, 12, and 22; and 169.454, 
254.34  subdivision 11, are repealed. 
254.35     Sec. 35.  [EFFECTIVE DATE.] 
254.36     If this act is enacted on or after July 1, 1997, sections 1 
255.1   to 34 are effective the day following final enactment. 
255.2                              ARTICLE 13
255.3                       TAX DEDUCTION AND CREDIT
255.4      Section 1.  Minnesota Statutes 1996, section 290.01, 
255.5   subdivision 19b, is amended to read: 
255.6      Subd. 19b.  [SUBTRACTIONS FROM FEDERAL TAXABLE INCOME.] For 
255.7   individuals, estates, and trusts, there shall be subtracted from 
255.8   federal taxable income: 
255.9      (1) interest income on obligations of any authority, 
255.10  commission, or instrumentality of the United States to the 
255.11  extent includable in taxable income for federal income tax 
255.12  purposes but exempt from state income tax under the laws of the 
255.13  United States; 
255.14     (2) if included in federal taxable income, the amount of 
255.15  any overpayment of income tax to Minnesota or to any other 
255.16  state, for any previous taxable year, whether the amount is 
255.17  received as a refund or as a credit to another taxable year's 
255.18  income tax liability; 
255.19     (3) the amount paid to others, less the credit allowed 
255.20  under section 290.0674, not to exceed $650 $1,625 for each 
255.21  dependent in grades kindergarten to 6 and $1,000 $2,500 for each 
255.22  dependent in grades 7 to 12, for tuition, textbooks, and 
255.23  transportation of each dependent in attending an elementary or 
255.24  secondary school situated in Minnesota, North Dakota, South 
255.25  Dakota, Iowa, or Wisconsin, wherein a resident of this state may 
255.26  legally fulfill the state's compulsory attendance laws, which is 
255.27  not operated for profit, and which adheres to the provisions of 
255.28  the Civil Rights Act of 1964 and chapter 363.  For the purposes 
255.29  of this clause, "tuition" includes fees or tuition as defined in 
255.30  section 290.0674, subdivision 1, clause (1).  As used in this 
255.31  clause, "textbooks" includes books and other instructional 
255.32  materials and equipment used in elementary and secondary schools 
255.33  in teaching only those subjects legally and commonly taught in 
255.34  public elementary and secondary schools in this 
255.35  state.  Equipment expenses qualifying for deduction includes 
255.36  expenses as defined and limited in section 290.0674, subdivision 
256.1   1, clause (3).  "Textbooks" does not include instructional books 
256.2   and materials used in the teaching of religious tenets, 
256.3   doctrines, or worship, the purpose of which is to instill such 
256.4   tenets, doctrines, or worship, nor does it include books or 
256.5   materials for, or transportation to, extracurricular activities 
256.6   including sporting events, musical or dramatic events, speech 
256.7   activities, driver's education, or similar programs.  In order 
256.8   to qualify for the subtraction under this clause the taxpayer 
256.9   must elect to itemize deductions under section 63(e) of the 
256.10  Internal Revenue Code; 
256.11     (4) to the extent included in federal taxable income, 
256.12  distributions from a qualified governmental pension plan, an 
256.13  individual retirement account, simplified employee pension, or 
256.14  qualified plan covering a self-employed person that represent a 
256.15  return of contributions that were included in Minnesota gross 
256.16  income in the taxable year for which the contributions were made 
256.17  but were deducted or were not included in the computation of 
256.18  federal adjusted gross income.  The distribution shall be 
256.19  allocated first to return of contributions until the 
256.20  contributions included in Minnesota gross income have been 
256.21  exhausted.  This subtraction applies only to contributions made 
256.22  in a taxable year prior to 1985; 
256.23     (5) income as provided under section 290.0802; 
256.24     (6) the amount of unrecovered accelerated cost recovery 
256.25  system deductions allowed under subdivision 19g; 
256.26     (7) to the extent included in federal adjusted gross 
256.27  income, income realized on disposition of property exempt from 
256.28  tax under section 290.491; 
256.29     (8) to the extent not deducted in determining federal 
256.30  taxable income, the amount paid for health insurance of 
256.31  self-employed individuals as determined under section 162(l) of 
256.32  the Internal Revenue Code, except that the 25 percent limit does 
256.33  not apply.  If the taxpayer deducted insurance payments under 
256.34  section 213 of the Internal Revenue Code of 1986, the 
256.35  subtraction under this clause must be reduced by the lesser of: 
256.36     (i) the total itemized deductions allowed under section 
257.1   63(d) of the Internal Revenue Code, less state, local, and 
257.2   foreign income taxes deductible under section 164 of the 
257.3   Internal Revenue Code and the standard deduction under section 
257.4   63(c) of the Internal Revenue Code; or 
257.5      (ii) the lesser of (A) the amount of insurance qualifying 
257.6   as "medical care" under section 213(d) of the Internal Revenue 
257.7   Code to the extent not deducted under section 162(1) of the 
257.8   Internal Revenue Code or excluded from income or (B) the total 
257.9   amount deductible for medical care under section 213(a); and 
257.10     (9) the exemption amount allowed under Laws 1995, chapter 
257.11  255, article 3, section 2, subdivision 3. 
257.12     Sec. 2.  Minnesota Statutes 1996, section 290.0671, 
257.13  subdivision 1, is amended to read: 
257.14     Subdivision 1.  [CREDIT ALLOWED.] An individual is allowed 
257.15  a credit against the tax imposed by this chapter equal to 15 
257.16  percent a percentage of the credit for which the individual is 
257.17  eligible under section 32 of the Internal Revenue Code.  The 
257.18  percentage is 15 for individuals without a qualifying child, and 
257.19  25 for individuals with at least one qualifying child.  For 
257.20  purposes of this section, "qualifying child" has the meaning 
257.21  given in section 32(c)(3) of the Internal Revenue Code. 
257.22     For a nonresident or part-year resident, the credit 
257.23  determined under section 32 of the Internal Revenue Code must be 
257.24  allocated based on the percentage calculated under section 
257.25  290.06, subdivision 2c, paragraph (e). 
257.26     For a person who was a resident for the entire tax year and 
257.27  has earned income not subject to tax under this chapter, the 
257.28  credit must be allocated based on the ratio of federal adjusted 
257.29  gross income reduced by the earned income not subject to tax 
257.30  under this chapter over federal adjusted gross income. 
257.31     Sec. 3.  [290.0674] [MINNESOTA EDUCATION CREDIT.] 
257.32     Subdivision 1.  [CREDIT ALLOWED.] An individual is allowed 
257.33  a credit against the tax imposed by this chapter in an amount 
257.34  equal to the amount paid for education-related expenses for a 
257.35  dependent in kindergarten through grade 12.  For purposes of 
257.36  this section, "education-related expenses" means: 
258.1      (1) fees or tuition for instruction by an instructor under 
258.2   section 120.101, subdivision 7, clause (1), (2), (3), (4), or 
258.3   (5), for instruction outside the regular school day or school 
258.4   year, including tutoring, driver's education taken as part of 
258.5   school curriculum, or summer camps, in grade or age appropriate 
258.6   curricula that supplement curricula and instruction available 
258.7   during the regular school year, that assists a dependent to 
258.8   improve knowledge of core curriculum areas or to expand 
258.9   knowledge and skills under the graduation rule under section 
258.10  121.11, subdivision 7c, and that do not include the teaching of 
258.11  religious tenets, doctrines, or worship, the purpose of which is 
258.12  to instill such tenets, doctrines, or worship; 
258.13     (2) expenses for textbooks, including books and other 
258.14  instructional materials and equipment used in elementary and 
258.15  secondary schools in teaching only those subjects legally and 
258.16  commonly taught in public elementary and secondary schools in 
258.17  this state.  "Textbooks" does not include instructional books 
258.18  and materials used in the teaching of religious tenets, 
258.19  doctrines, or worship, the purpose of which is to instill such 
258.20  tenets, doctrines, or worship, nor does it include books or 
258.21  materials for extracurricular activities including sporting 
258.22  events, musical or dramatic events, speech activities, driver's 
258.23  education, or similar programs; 
258.24     (3) a maximum expense of $200 per family for personal 
258.25  computer hardware, excluding single purpose processors, and 
258.26  educational software that assists a dependent to improve 
258.27  knowledge of core curriculum areas or to expand knowledge and 
258.28  skills under the graduation rule under section 121.11, 
258.29  subdivision 7c, purchased for use in the taxpayer's home and not 
258.30  used in a trade or business regardless of whether the computer 
258.31  is required by the dependent's school; and 
258.32     (4) the amount paid to others for transportation of a 
258.33  dependent attending an elementary or secondary school situated 
258.34  in Minnesota, North Dakota, South Dakota, Iowa, or Wisconsin, 
258.35  wherein a resident of this state may legally fulfill the state's 
258.36  compulsory attendance laws, which is not operated for profit, 
259.1   and which adheres to the provisions of the Civil Rights Act of 
259.2   1964 and chapter 363. 
259.3      Subd. 2.  [LIMITATIONS.] (a) For claimants with income not 
259.4   greater than $33,500, the maximum credit allowed is $1,000 per 
259.5   child and $2,000 per family.  No credit is allowed for 
259.6   education-related expenses for claimants with income greater 
259.7   than $33,500.  For purposes of this section "income" has the 
259.8   meaning given in section 290.067, subdivision 2a.  In the case 
259.9   of a married claimant, a credit is not allowed unless a joint 
259.10  income tax return is filed. 
259.11     (b) For a nonresident or part-year resident, the credit 
259.12  determined under subdivision 1 and the maximum credit amount in 
259.13  paragraph (a) must be allocated using the percentage calculated 
259.14  in section 290.06, subdivision 2c, paragraph (e). 
259.15     Subd. 3.  [REDUCTION BY ALTERNATIVE MINIMUM TAX LIABILITY.] 
259.16  The amount of the credit allowed must be reduced by the amount 
259.17  of the taxpayer's liability under section 290.091, determined 
259.18  before the credit allowed by this section is subtracted from 
259.19  regular tax liability. 
259.20     Subd. 4.  [CREDIT TO BE REFUNDABLE.] If the amount of 
259.21  credit that the claimant is eligible to receive under this 
259.22  section exceeds the claimant's tax liability under this chapter, 
259.23  the commissioner shall refund the excess to the claimant. 
259.24     Subd. 5.  [APPROPRIATION.] An amount sufficient to pay the 
259.25  refunds required by this section is appropriated to the 
259.26  commissioner from the general fund. 
259.27     Sec. 4.  [SEVERABILITY CLAUSE.] 
259.28     If a court of competent jurisdiction enjoins the 
259.29  implementing of any provision in this article or finds any 
259.30  provision in this article unconstitutional, the remaining 
259.31  sections in this article and the remaining articles in this act 
259.32  shall remain valid and shall be given full effect. 
259.33     Sec. 5.  [EFFECTIVE DATE.] 
259.34     Subdivision 1.  [CONTINGENCY.] This article is effective 
259.35  for tax years beginning after December 31, 1997, if on the basis 
259.36  of the November 1997 forecast of general fund revenues and 
260.1   expenditures, the commissioner of finance determines that there 
260.2   will be a positive unrestricted budgetary general fund balance 
260.3   at the close of the biennium after taking into account the costs 
260.4   of sections 1 to 3 and after meeting the requirements of 
260.5   Minnesota Statutes, section 16A.152, subdivision 2, clause (a). 
260.6      Subd. 2.  [SUSPENSION.] Minnesota Statutes, section 
260.7   16A.152, subdivision 2, clauses (b) and (c), are not to be 
260.8   implemented for the forecast of general fund revenues and 
260.9   expenditures in November 1997 until sections 1 to 3 are 
260.10  implemented.  However, if the November 1997 forecast does not 
260.11  provide an unrestricted general fund balance adequate to 
260.12  implement sections 1 to 3, the provisions of Minnesota Statutes, 
260.13  section 16A.152, subdivision 2, clauses (b) and (c), are 
260.14  effective.