1997 Minnesota Statutes

CHAPTER 124. Education finance

   124.01 Definitions. 

    Subdivision 1.    Generally.  The terms defined in 
 section 120.02 and chapter 124A have the same meaning when they 
 are used in this chapter, unless otherwise clearly indicated. 

    Subd. 2. Repealed, 1981 c 358 art 1 s 49 

    Subd. 3. Repealed, 1981 c 358 art 1 s 49 

    Subd. 4. Repealed, 1981 c 358 art 1 s 49 

    HIST: Ex1959 c 71 art 5 s 1; 1979 c 334 art 1 s 2; 1981 c 358 
 art 1 s 9; 1982 c 548 art 3 s 5; 1983 c 314 art 1 s 22; 1987 c 
 384 art 2 s 28; 1988 c 486 s 19 

   124.02 MS 1953 Repealed, 1957 c 947 art 9 s 9 

  124.02 MS 1976 Repealed, 1978 c 764 s 143 

   124.03 MS 1953 Repealed, 1957 c 947 art 9 s 9 

  124.03 MS 1974 Repealed, 1976 c 334 s 20 

   124.04 MS 1953 Repealed, 1957 c 947 art 9 s 9 

  124.04 MS 1976 Repealed, 1977 c 447 art 6 s 13 

   124.05 Repealed, 1996 c 399 art 1 s 11 

  124.05 MS 1953 Repealed, 1957 c 947 art 9 s 9 

   124.06 Insufficient funds to pay orders. 

    (a) In the event that a district or a cooperative unit 
 defined in section 123.35, subdivision 19b, has insufficient 
 funds to pay its usual lawful current obligations, subject to 
 section 471.69, the board may enter into agreements with banks 
 or any person to take its orders.  Any order drawn after having 
 been presented to the treasurer for payment and not paid for 
 want of funds shall be endorsed by the treasurer by putting on 
 the back thereof the words "not paid for want of funds," giving 
 the date of endorsement and signed by the treasurer.  A record 
 of such presentment, nonpayment and endorsement shall be made by 
 the treasurer.  The treasurer shall serve a written notice upon 
 the payee or the payee's assignee, personally, or by mail, when 
 the treasurer is prepared to pay such orders; such notice may be 
 directed to the payee or the payee's assignee at the address 
 given in writing by such payee or assignee to such treasurer, at 
 any time prior to the service of such notice.  No order shall 
 draw any interest if such address is not given when the same is 
 unknown to the treasurer, and no order shall draw any interest 
 after the service of such notice.  

    (b) A district may enter, subject to section 471.69, into a 
 line of credit agreement with a financial institution.  The 
 amount of credit available must not exceed 95 percent of average 
 expenditure per month of operating expenditures in the previous 
 fiscal year.  Any amount advanced must be repaid no later than 
 45 days after the day of advancement. 

    HIST: Ex1959 c 71 art 5 s 6; 1965 c 69 s 2; 1967 c 761 s 1; 
 1986 c 444; 1Sp1995 c 3 art 1 s 6 

   124.07 Land in settlement of claim against surety.  

    Subdivision 1.    Power of board to accept.  When any 
 district now has or asserts any claim or judgment against any 
 sureties on the bonds of any depository of its funds for the 
 failure of any such depository to account for or pay over any 
 such funds and the board or other governing body of the district 
 determines that the claim or judgment, or some part thereof, is 
 not collectible in cash, then any such board or governing body 
 may by resolution determine to accept and receive, in complete 
 or partial satisfaction or settlement of any such claim or 
 judgment, lands or interest therein within this state and may 
 acquire the same for and in the name of such district either by 
 deed or deeds of conveyance from the owners, or as purchaser at 
 execution sale or sales under any such judgment.  

    Subd. 2.    Title to be held by district.  Title to 
 lands or interests so acquired shall be held by the district.  
 Each tract or portion shall be sold by the district as soon as 
 there may be realized the fair value as determined by such 
 board.  Any such sale may be authorized by resolution of the 
 board, and may be made for cash, or for part cash and the 
 deferred balance secured by contract for deed or purchase money 
 mortgage, on such terms as the board approves.  Conveyances, 
 contracts, or other instruments evidencing any sale shall be 
 executed by the chair and the clerk of the board.  Lands so 
 acquired and held for resale shall be deemed public lands used 
 for exclusively public purposes and as such shall be exempt from 
 taxation.  

    HIST: Ex1959 c 71 art 5 s 7; 1986 c 444 

     124.078 Permanent school fund advisory committee. 

    A state permanent school fund advisory committee is 
 established to advise the department of natural resources on the 
 management of permanent school fund land, which is held in trust 
 for the school districts of the state.  The advisory committee 
 shall consist of the following persons or their designees:  the 
 chairs of the education committees of the legislature, the 
 chairs of the senate committee on finance and house committee on 
 ways and means, the commissioner of children, families, and 
 learning, one superintendent from a nonmetropolitan district, 
 and one superintendent from a metropolitan area district.  The 
 school district superintendents shall be appointed by the 
 commissioner of children, families, and learning.  

    The advisory committee shall review the policies of the 
 department of natural resources on management of school trust 
 fund lands and shall recommend necessary changes in policy and 
 implementation in order to ensure provident utilization of the 
 permanent school fund lands.  

    HIST: 1982 c 548 art 4 s 2; 1986 c 444; 1993 c 4 s 16; 1Sp1995 
 c 3 art 16 s 13 

     124.079 Goal of the permanent school fund. 

    The legislature intends that it is the goal of the 
 permanent school fund to secure the maximum long-term economic 
 return from the school trust lands consistent with the fiduciary 
 responsibilities imposed by the trust relationship established 
 in the Minnesota Constitution, with sound natural resource 
 conservation and management principles, and with other specific 
 policy provided in state law. 

    HIST: 1985 c 116 s 2 

   124.08 School endowment fund, designation. 

    For the purpose of aid to public schools, a school 
 endowment fund is established.  

    The school endowment fund shall consist of the income from 
 the permanent school fund.  The commissioner of children, 
 families, and learning may accept for and on behalf of the 
 permanent school fund a donation of cash, marketable securities, 
 or other personal property.  A noncash donation, other than a 
 donation of marketable securities, must be disposed of for cash 
 as soon as the commissioner can obtain fair market value for the 
 donation.  Marketable securities may be disposed of at the 
 discretion of the state board of investment consistent with 
 sections 11A.16 and 11A.24.  A cash donation and the cash 
 receipts from a donation disposed of for cash must be credited 
 immediately to the permanent school fund.  Earnings from 
 marketable securities are earnings of the permanent school fund. 

    HIST: Ex1959 c 71 art 5 s 8; 1969 c 399 s 13; 1989 c 51 s 2; 
 1Sp1995 c 3 art 16 s 13 

   124.09 School endowment fund, apportionment. 

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

    HIST: Ex1959 c 71 art 5 s 9; Ex1971 c 31 art 20 s 15; 1978 c 
 706 s 29; 1Sp1985 c 12 art 1 s 3; 1993 c 224 art 13 s 31; 1996 c 
 412 art 1 s 5 

   124.10 Auditor's duties. 

    Subdivision 1.  A copy of the apportionment of the school 
 endowment fund shall be furnished by the commissioner to the 
 commissioner of finance, who thereupon shall draw warrants on 
 the state treasury, payable to the several districts, for the 
 amount due each district.  There is hereby annually appropriated 
 from the school endowment fund the amount of such apportionments.

    Subd. 2.  The county auditor each year shall apportion to 
 the school districts within the county the amount received from 
 power line taxes under section 273.42, liquor licenses, fines, 
 estrays, and other sources belonging to the general fund.  The 
 apportionments shall be made in proportion to each district's 
 net tax capacity within the county in the prior year.  The 
 apportionments shall be made and amounts distributed to the 
 school districts at the times provided for the settlement and 
 distribution of real and personal property taxes under sections 
 276.09, 276.11, and 276.111, except that all of the power line 
 taxes apportioned to a school district from the county school 
 fund shall be included in the first half distribution of 
 property taxes to the school district.  No district shall 
 receive any part of the money received from liquor licenses 
 unless all sums paid for such licenses in such district are 
 apportioned to the county school fund.  

    Subd. 3.  The county auditor, on the first Wednesday after 
 such apportionment, shall report to the commissioner on the 
 amount apportioned, the sources from which such money was 
 received, and the net tax capacity of each district in the 
 county. 

    HIST: Ex1959 c 71 art 5 s 10; 1969 c 16 s 1,2; Ex1971 c 31 art 
 20 s 16; 1973 c 492 s 14; 1Sp1985 c 12 art 1 s 4; 1986 c 444; 
 1988 c 719 art 5 s 84; 1989 c 329 art 13 s 20; 1990 c 562 art 10 
 s 1; 1990 c 604 art 3 s 3; 1993 c 224 art 13 s 32 

   124.11 MS 1957 Renumbered 129.13 

    124.11 Subdivision 1.  MS 1982 Repealed, 1983 c 
 314 art 1 s 23 

    Subd. 1a.  MS 1982 Renumbered 124A.031 subdivision 
 1 

    Subd. 2.  MS 1978 Repealed, 1979 c 334 art 5 s 29 

    Subd. 2a.  MS 1983 Supp Repealed, 1984 c 463 art 5 
 s 37 

    Subd. 2b.  MS 1983 Supp Repealed, 1984 c 463 art 5 
 s 37 

    Subd. 2c.  MS 1982 Repealed, 1983 c 314 art 5 s 17 

    Subd. 3.  MS 1982 Renumbered 124A.031 subd 2 

    Subd. 4.  MS 1982 Renumbered 124A.031 subd 3 

    Subd. 5.  MS 1982 Renumbered 124A.031 subd 4 

   124.12 Manner of payment of state aids. 

    Subdivision 1. Repealed, 1989 c 329 art 9 s 34 

    Subd. 2.  It shall be the duty of the commissioner of 
 children, families, and learning to deliver to the commissioner 
 of finance a certificate for each district entitled to receive 
 state aid under the provisions of this chapter.  Upon the 
 receipt of such certificate, it shall be the duty of the 
 commissioner of finance to draw a warrant upon the state 
 treasurer in favor of the district for the amount shown by each 
 certificate to be due to the district.  The commissioner of 
 finance shall transmit such warrants to the district together 
 with a copy of the certificate prepared by the commissioner. 

    Subd. 3.  Repealed, 1969 c 16 s 4 

    Subd. 4.  Repealed, 1969 c 16 s 4 

    HIST: Ex1959 c 71 art 5 s 12; 1965 c 537 s 1; 1969 c 16 s 3; 
 1969 c 399 s 14; 1973 c 492 s 14; 1978 c 616 s 7; 1986 c 444; 
 1Sp1995 c 3 art 16 s 13 

   124.13 MS 1953 Repealed, 1957 c 947 art 9 s 9 

  124.13 MS 1971 Repealed, 1974 c 521 s 34 

     124.14 Distribution of school aids; appropriation. 

    Subdivision 1.  The commissioner shall supervise 
 distribution of school aids and grants in accordance with law.  
 It may make rules consistent with law for the distribution to 
 enable districts to perform efficiently the services required by 
 law and further education in the state, including reasonable 
 requirements for the reports and accounts to it as will assure 
 accurate and lawful apportionment of aids.  State and federal 
 aids and discretionary or entitlement grants distributed by the 
 commissioner shall not be subject to the contract approval 
 procedures of the commissioner of administration or to chapter 
 16A or 16B.  The commissioner shall adopt internal procedures 
 for administration and monitoring of aids and grants. 

    Subd. 2.  On determining that the amount of state aid 
 distributed to a school district is in error, the commissioner 
 is authorized to adjust the amount of aid consistent with this 
 subdivision.  On determining that the amount of aid is in excess 
 of the school district's entitlement, the commissioner is 
 authorized to recover the amount of the excess by any 
 appropriate means.  Notwithstanding the fiscal years designated 
 by the appropriation, the excess may be recovered by reducing 
 future aid payments to the school district.  Notwithstanding any 
 law to the contrary, if the aid reduced is not of the same type 
 as that overpaid, the school district shall adjust all necessary 
 financial accounts to properly reflect all revenues earned in 
 accordance with the uniform financial accounting and reporting 
 standards pursuant to sections 121.904 to 121.917.  
 Notwithstanding the fiscal years designated by the 
 appropriation, on determining that the amount of an aid paid is 
 less than the school district's entitlement, the commissioner is 
 authorized to increase such aid from the current appropriation. 

    Subd. 3.  The commissioner shall establish procedures for 
 conducting and shall conduct audits of school district records 
 and files for the purpose of verifying school district pupil 
 counts, levy limitations, and aid entitlements.  The 
 commissioner shall establish procedures for selecting and shall 
 select districts to be audited.  Disparities, if any, between 
 pupil counts, levy limitations, or aid entitlements determined 
 by audit of school district records and files and data reported 
 by school districts in reports, claims and other documents shall 
 be reviewed by the commissioner who shall order increases or 
 decreases accordingly.  Whenever possible, the commissioner 
 shall audit at least 25 districts each year pursuant to this 
 subdivision.  

    Subd. 3a.  If the commissioner audits fewer than 25 school 
 districts in a fiscal year pursuant to subdivision 3, the 
 commissioner shall report the reasons for the number audited to 
 the following legislative committees:  house education, house 
 appropriations, senate education, and senate finance.  

    Subd. 4.    Final decision and records.  A reduction of 
 aid under this section may be appealed to the state board of 
 education and its decision shall be final.  Public schools shall 
 at all times be open to the inspection of the commissioner, and 
 the accounts and records of any district shall be open to 
 inspection by the state auditor, the state board, or the 
 commissioner for the purpose of audits conducted under this 
 section.  Each district shall keep for a minimum of three years 
 at least the following:  (1) identification of the annual 
 session days held, together with a record of the length of each 
 session day, (2) a record of each pupil's daily attendance, with 
 entrance and withdrawal dates, and (3) identification of the 
 pupils transported who are reported for transportation aid.  

    Subd. 5.  Renumbered 124A.032 

    Subd. 6.    Adjustment appropriation.  There is annually 
 appropriated from the general fund to the department of 
 children, families, and learning any additional amounts 
 necessary for the adjustments made pursuant to section 124.155, 
 subdivision 1. 

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

    Subd. 8.    Health and safety aid transfer.  The 
 commissioner of children, families, and learning, with the 
 approval of the commissioner of finance, annually may transfer 
 an amount from the appropriation for health and safety aid to 
 the appropriation for debt service aid for the same fiscal 
 year.  The amount of the transfer equals the amount necessary to 
 fund any shortage in the debt service aid appropriation created 
 by a data correction that occurs between November 1 and June 30 
 of the preceding fiscal year. 

    HIST: 1961 c 562 s 14; 1969 c 399 s 15,16; 1973 c 492 s 7; 
 1975 c 432 s 20; 1977 c 447 art 1 s 3; art 2 s 1; 1979 c 334 art 
 6 s 19; 1981 c 358 art 7 s 23-26; 1982 c 548 art 7 s 4; 1983 c 
 314 art 7 s 22; 1Sp1985 c 12 art 7 s 18; art 10 s 2; 1986 c 444; 
 1987 c 384 art 2 s 1; 1987 c 398 art 7 s 24; 1988 c 486 s 20; 
 1991 c 130 s 8; 1991 c 265 art 11 s 8; 1993 c 224 art 13 s 
 33,34; art 14 s 16; 1994 c 465 art 2 s 1; 1Sp1995 c 3 art 5 s 1; 
 art 16 s 13 

     124.15 Reduction of aid for violation of law. 

    Subdivision 1.  The amount of special state aids to which a 
 district is entitled shall be the amount computed according to 
 statutes.  The annual state aid certificate made by the 
 commissioner to the commissioner of finance shall show the 
 amount of any reductions made. 

    Subd. 2.  Whenever the board of the district authorizes or 
 permits within the district violations of law by: 

    (1) employment in a public school of the district of a 
 teacher who does not hold a valid teaching license or permit, or 

    (2) noncompliance with a mandatory rule of general 
 application promulgated by the state board in accordance with 
 statute in the absence of special circumstances making 
 enforcement thereof inequitable, contrary to the best interest 
 of, or imposing an extraordinary hardship on, the district 
 affected, or 

    (3) continued performance by the district of a contract 
 made for the rental of rooms or buildings for school purposes or 
 for the rental of any facility owned or operated by or under the 
 direction of any private organization, which contract has been 
 disapproved where time for review of the determination of 
 disapproval has expired and no proceeding for review is pending, 
 or 

    (4) any practice which is a violation of sections 1 and 2 
 of article 13 of the Constitution of the state of Minnesota, or 

    (5) failure to provide reasonably for the school attendance 
 to which a resident pupil is entitled under Minnesota Statutes, 
 or 

    (6) noncompliance with state laws prohibiting 
 discrimination because of race, color, creed, religion, national 
 origin, sex, age, marital status, status with regard to public 
 assistance or disability, as defined in section 363.03, 

    the special state aid to which a district is otherwise 
 entitled for any school year shall be reduced in the amount and 
 upon the procedure provided in this section or, in the case of 
 the violation stated in clause (1), upon the procedure provided 
 in section 124.19, subdivision 3. 

    Subd. 2a.  After consultation with the commissioner of 
 human rights, the state board of education shall adopt rules in 
 conformance with chapter 14 which direct school districts to 
 file with the commissioner of children, families, and learning 
 assurances of compliance with state and federal laws prohibiting 
 discrimination and which specify the information required to be 
 submitted in support of the assurances.  The commissioner of 
 children, families, and learning shall provide copies of the 
 assurances and the supportive information to the commissioner of 
 human rights.  If, after reviewing the assurances and the 
 supportive information it appears that one or more violations of 
 the Minnesota human rights act are occurring in the district, 
 the commissioner of human rights shall notify the commissioner 
 of children, families, and learning of the violations, and the 
 commissioner of children, families, and learning may then 
 proceed pursuant to subdivision 3. 

    Subd. 3.  When it appears that one or more of the 
 violations enumerated is occurring in a district, the 
 commissioner shall forthwith notify the board of that district 
 in writing thereof.  Such notice shall specify the violations, 
 set a reasonable time within which the district shall correct 
 the specified violations, describe the correction required, and 
 advise that if the correction is not made within the time 
 allowed, special state aids to the district will be reduced.  
 The time allowed for correction may be extended by the 
 commissioner if there is reasonable ground therefor. 

    Subd. 4.  The board to which such notice is given may by a 
 majority vote of the whole board decide to dispute that the 
 specified violation exists or that the time allowed is 
 reasonable or the correction specified is correct, or that the 
 commissioner may reduce aids, in which case written notice of 
 such decision shall be given the commissioner.  If the 
 commissioner, after such further investigation as the 
 commissioner deems necessary, adheres to the previous notice, 
 such board shall be entitled to a hearing by the state board, in 
 which event a time and place shall be set therefor and notice be 
 given by mail to the board of the district.  The state board 
 shall adopt rules governing the proceedings for hearings which 
 shall be designed to give a full and fair hearing and permit 
 interested parties an opportunity to produce evidence relating 
 to the issues involved.  Such rules may provide that any 
 question of fact to be determined upon such review may be 
 referred to one or more members of the board or to an employee 
 of the state board acting as a referee to hear evidence and 
 report to the state board the testimony taken. The state board, 
 or any person designated to receive evidence upon a review under 
 this act, shall have the same right to issue subpoenas and 
 administer oaths and parties to the review shall have the same 
 right to subpoenas issued as are accorded with respect to 
 proceedings before the industrial commission.  There shall be a 
 stenographic record made of all testimony given and other 
 proceedings during such hearing, and as far as practicable rules 
 governing reception of evidence in courts shall obtain.  The 
 decision of the state board shall be in writing and the 
 controlling facts upon which the decision is made shall be 
 stated in sufficient detail to apprise the parties and the 
 reviewing court the basis and reason of the decision.  The 
 decision shall be confined to whether or not the specified 
 violations or any of them existed at the date of the 
 commissioner's first notice, whether such violations as did 
 exist were corrected within the time permitted, and whether such 
 violations require reduction of the state aids under this 
 section. 

    Subd. 5.    Violation; aid reduction.  If the violation 
 specified is corrected within the time permitted, or if the 
 commissioner on being notified of the district board's decision 
 to dispute decides the violation does not exist, or if the state 
 board decides after hearing no violation specified in the 
 commissioner's notice existed at the time of it, or that any 
 that existed were corrected within the time permitted, there 
 shall be no reduction of state aids payable to the school 
 district.  Otherwise state aids payable to the district for the 
 year in which the violation occurred shall be reduced as 
 follows:  The total amount of state aids to which the district 
 may be entitled shall be reduced in the proportion that the 
 period during which a specified violation continued, computed 
 from the last day of the time permitted for correction, bears to 
 the total number of days school is held in the district during 
 the year in which a violation exists, multiplied by 60 percent 
 of the basic revenue, as defined in section 124A.22, subdivision 
 2, of the district for that year. 

    Subd. 6.  Reductions in aid under this section and section 
 124.19 shall be from general education aid.  If there is not 
 sufficient general education aid remaining to be paid for the 
 school year in which the violation occurred, the reduction shall 
 be from the other aids listed in section 124.155, subdivision 2, 
 that are payable to the district for that year in the order in 
 which the aids are listed in section 124.155, subdivision 2.  If 
 there is not a sufficient amount of state aids remaining payable 
 to the district for the school year in which the violation 
 occurred to permit the full amount of reduction required, that 
 part of the required reduction not taken from that school year's 
 aids will be taken from the state aids payable to the district 
 for the next school year, and the reduction will be made from 
 the various aids payable for the next year in the order above 
 specified. 

    Subd. 7.    Appeal.  A decision of the state board under 
 this section may be appealed in accordance with chapter 14.  

    Subd. 8.  Any notice to be given the board of a district 
 will be deemed given when a copy thereof is mailed, registered, 
 to the superintendent of the district, if there is a 
 superintendent, and to the clerk of the board of the district, 
 unless it is shown that neither the superintendent nor the clerk 
 in fact received such notice in the ordinary course of mail, in 
 which event time for correction will be accordingly extended by 
 the commissioner so that a reasonable time will be allowed from 
 actual receipt of notice for correction.  If notice is sent by 
 the commissioner with respect to a violation which is continued 
 by the district in a succeeding year, no separate notice for 
 that violation for the succeeding year will be required. 
 Proceedings initiated by such notice shall include any 
 continuing violation notwithstanding that a part thereof occurs 
 in a year different from that in which it started. The 
 commissioner may require reasonable proof of the time that a 
 violation ceased for the determination of the amount of aids to 
 be withheld.  Costs and disbursements of the review by the 
 district court, exclusive of those incurred in the 
 administrative proceedings, may be taxed against the losing 
 party and in the event taxed against the state shall be paid 
 from the appropriations made to the department for the payment 
 of special state aids. 

    HIST: Ex1959 c 71 art 5 s 15; 1963 c 203 s 1; 1965 c 51 s 18; 
 1973 c 492 s 14; 1975 c 59 s 3; 1975 c 162 s 29; 1975 c 173 s 
 1-3; 1976 c 2 s 61,172; 1978 c 706 s 30; 1978 c 764 s 38,39; 
 1982 c 424 s 130; 1983 c 247 s 58; 1983 c 314 art 7 s 23; 1985 c 
 248 s 70; 1986 c 444; 1988 c 486 s 21,22; 1Sp1995 c 3 art 16 s 
 13 

     124.155 Aid reduction; levy revenue recognition change. 

    Subdivision 1.    Amount of adjustment.  Each year state 
 aids and credits enumerated in subdivision 2 payable to any 
 school district for that fiscal year shall be adjusted, in the 
 order listed, by an amount equal to (1) the amount the district 
 recognized as revenue for the prior fiscal year pursuant to 
 section 121.904, subdivision 4a, clause (b), minus (2) the 
 amount the district recognizes as revenue for the current fiscal 
 year pursuant to section 121.904, subdivision 4a, clause (b).  
 For the purposes of making the aid adjustment under this 
 subdivision, the amount the district recognizes as revenue for 
 either the prior fiscal year or the current fiscal year pursuant 
 to section 121.904, subdivision 4a, clause (b), shall not 
 include any amount levied pursuant to sections 124.315, 
 subdivision 4, 124.912, subdivisions 1, paragraph (2), 2, and 3, 
 124.916, subdivisions 1, 2, and 3, paragraphs 4, 5, and 6, 
 124.918, subdivision 6, and 124A.03, subdivision 2.  Payment 
 from the permanent school fund shall not be adjusted pursuant to 
 this section.  The school district shall be notified of the 
 amount of the adjustment made to each payment pursuant to this 
 section. 

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

    (1) general education aid authorized in section 124A.23; 

    (2) secondary vocational aid authorized in section 124.573; 

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

    (4) school-to-work program aid for children with a 
 disability authorized in section 124.574; 

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

    (6) transportation aid authorized in section 124.225; 

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

    (8) adult education aid authorized in section 124.26; 

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

    (10) capital expenditure aid authorized in section 124.83; 

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

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

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

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

    (15) alternative delivery aid authorized in section 
 124.322; 

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

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

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

    (19) cooperation-combination aid authorized in section 
 124.2725. 

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

    Subd. 3.    Accounting.  Each district shall establish 
 an account which shall be designated "property tax recognition 
 account".  This account shall reflect the adjustments made 
 pursuant to subdivision 1 according to the fiscal year specified.

    HIST: 3Sp1981 c 2 art 4 s 3 subds 3,4; 1982 c 548 art 7 s 
 8-10; 3Sp1982 c 1 art 3 s 2,3; 1983 c 314 art 6 s 10; 1984 c 463 
 art 9 s 3; 1Sp1985 c 14 art 4 s 17; 1Sp1986 c 1 art 5 s 5; 1987 
 c 268 art 6 s 2; 1988 c 486 s 23; 1988 c 719 art 5 s 1; 1989 c 
 222 s 11; 1989 c 277 art 2 s 3; 1989 c 329 art 6 s 34,35; 1990 c 
 562 art 6 s 19; 1991 c 130 s 9,37; 1991 c 265 art 3 s 38; 1992 c 
 499 art 1 s 6; art 12 s 9,29; 1992 c 511 art 1 s 25; 1992 c 603 
 s 14; 1993 c 224 art 14 s 8,16; 1993 c 374 s 26; 1994 c 647 art 
 1 s 5; art 6 s 21; 1Sp1995 c 3 art 1 s 7; art 16 s 13; 1996 c 
 412 art 1 s 6; 1997 c 7 art 1 s 49; 1Sp1997 c 4 art 1 s 11; art 
 11 s 1 

  124.16 Repealed, 1978 c 764 s 143 

     124.17 Definition of pupil units. 

    Subdivision 1.    Pupil unit.  Pupil units for each 
 resident pupil in average daily membership shall be counted 
 according to this subdivision.  

    (a) A prekindergarten pupil with a disability who is 
 enrolled in a program approved by the commissioner and has an 
 individual education plan is counted as the ratio of the number 
 of hours of assessment and education service to 825 with a 
 minimum of 0.28, but not more than one. 

    (b) A prekindergarten pupil who is assessed but determined 
 not to be handicapped is counted as the ratio of the number of 
 hours of assessment service to 825.  

    (c) A kindergarten pupil with a disability who is enrolled 
 in a program approved by the commissioner is counted as the 
 ratio of the number of hours of assessment and education 
 services required in the fiscal year by the pupil's individual 
 education program plan to 875, but not more than one. 

    (d) A kindergarten pupil who is not included in paragraph 
 (c) is counted as .53 of a pupil unit for fiscal year 1995 and 
 thereafter. 

    (e) A pupil who is in any of grades 1 to 6 is counted as 
 1.06 pupil units for fiscal year 1995 and thereafter. 

    (f) A pupil who is in any of grades 7 to 12 is counted as 
 1.3 pupil units.  

    (g) A pupil who is in the post-secondary enrollment options 
 program is counted as 1.3 pupil units.  

    Subd. 1a. Repealed, 1987 c 398 art 1 s 27 subd 3 

    Subd. 1b. Repealed, 1Sp1995 c 3 art 1 s 63 

    Subd. 1c.    Foreign exchange pupils.  Notwithstanding 
 section 123.35, subdivision 8c, or any other law to the 
 contrary, a foreign exchange pupil enrolled in a district under 
 a cultural exchange program may be counted as a resident pupil 
 for the purposes of this chapter and chapter 124A even if the 
 pupil has graduated from high school or the equivalent. 

    Subd. 1d.    Compensation revenue pupil units.  
 Compensation revenue pupil units for fiscal year 1998 and 
 thereafter must be computed according to this subdivision.  

    (a) The compensation revenue concentration percentage for 
 each building in a district equals the product of 100 times the 
 ratio of:  

    (1) the sum of the number of pupils enrolled in the 
 building eligible to receive free lunch plus one-half of the 
 pupils eligible to receive reduced priced lunch on October 1 of 
 the previous fiscal year; to 

    (2) the number of pupils enrolled in the building on 
 October 1 of the previous fiscal year. 

    (b) The compensation revenue pupil weighting factor for a 
 building equals the lesser of one or the quotient obtained by 
 dividing the building's compensation revenue concentration 
 percentage by 80.0.  

    (c) The compensation revenue pupil units for a building 
 equals the product of:  

    (1) the sum of the number of pupils enrolled in the 
 building eligible to receive free lunch and one-half of the 
 pupils eligible to receive reduced priced lunch on October 1 of 
 the previous fiscal year; times 

    (2) the compensation revenue pupil weighting factor for the 
 building; times 

    (3) .60. 

    The percentages in this subdivision must be based on the 
 count of individual pupils and not on a building average or 
 minimum. 

    Subd. 1e.    AFDC pupil counts.  AFDC pupil counts and 
 average daily membership for subdivisions 1b and 1d shall be 
 determined according to this subdivision: 

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

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

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

    Subd. 1f.    Fund balance pupil units.  Fund balance 
 pupil units must be computed separately for kindergarten pupils, 
 elementary pupils in grades 1 to 6, and secondary pupils in 
 grades 7 to 12.  Total fund balance pupil units means the sum of 
 kindergarten, elementary, and secondary fund balance pupil 
 units.  Fund balance pupil units for each category means the 
 number of resident pupil units in average daily membership, 
 including shared time pupil units, according to section 124A.02, 
 subdivision 20, plus 

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

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

    Subd. 2.    Average daily membership.  Membership for 
 pupils in grades kindergarten through 12 and for prekindergarten 
 pupils with disabilities shall mean the number of pupils on the 
 current roll of the school, counted from the date of entry until 
 withdrawal.  The date of withdrawal shall mean the day the pupil 
 permanently leaves the school or the date it is officially known 
 that the pupil has left or has been legally excused.  However, a 
 pupil, regardless of age, who has been absent from school for 15 
 consecutive school days during the regular school year or for 
 five consecutive school days during summer school or 
 intersession classes of flexible school year programs without 
 receiving instruction in the home or hospital shall be dropped 
 from the roll and classified as withdrawn.  Nothing in this 
 section shall be construed as waiving the compulsory attendance 
 provisions cited in section 120.101.  Average daily membership 
 shall equal the sum for all pupils of the number of days of the 
 school year each pupil is enrolled in the district's schools 
 divided by the number of days the schools are in session.  Days 
 of summer school or intersession classes of flexible school year 
 programs shall only be included in the computation of membership 
 for pupils with a disability appropriately served at level 4, 5, 
 or 6 of the continuum of placement model described in Minnesota 
 Rules, part 3525.0200. 

    Subd. 2a.  Notwithstanding subdivision 2, pupils granted 
 transitional year status shall continue to be counted as members 
 on the current roll of the school for the remainder of the 
 school year.  For purposes of computing average daily membership 
 transitional year pupils shall be considered to be enrolled 
 every day school is in session for the remainder of the school 
 year. 

    Subd. 2b.  Notwithstanding subdivision 2, pupils enrolled 
 in the Minnesota National Guard program shall be construed to be 
 in attendance for purposes of computing average daily membership 
 during any period of the regular school year, but not to include 
 summer school, during which the pupil is attending military 
 active duty training pursuant to that program.  During that 
 period of military active duty training, the pupil shall earn 
 all aid for the district of residence or attendance which would 
 be otherwise earned by the pupil's presence. 

    Subd. 2c.  Notwithstanding subdivision 2, in cases when 
 school is in session but pupils are prevented from attending for 
 more than 15 consecutive school days during the regular school 
 year or five consecutive school days during summer school or 
 intersession classes of flexible school year programs, because 
 of epidemic, calamity, weather, fuel shortage, or other 
 justifiable cause, the commissioner, upon application, may allow 
 the district to continue to count these pupils in average daily 
 membership.  A lawful employees' strike is not a justifiable 
 cause for purposes of this subdivision. 

    Subd. 2d. Repealed, 1987 c 398 art 1 s 27 subd 3 

    Subd. 2e.    Average daily membership, pupils age 21 or 
 over.  The average daily membership for pupils age 21 or over 
 is equal to the ratio of the number of yearly hours that the 
 pupil is in membership to the number of instructional hours in 
 the district's regular school year.  A pupil enrolled in the 
 graduation incentives program under section 126.22, subdivision 
 2, paragraph (b), for more than the number of instructional 
 hours in the district's regular school year may be counted as 
 more than one pupil in average daily membership. 

    Subd. 2f.    PSEO pupils.  The average daily membership 
 for a pupil participating in the post-secondary enrollment 
 options program equals the lesser of 

    (a) 1.00, or 

    (b) the greater of 

    (1) .12, or 

    (2) the ratio of (i) the sum of the number of instructional 
 hours the pupil is enrolled in the secondary school during 
 quarters, trimesters, or semesters during which the pupil 
 participates in PSEO, and hours enrolled in the secondary school 
 during the remainder of the school year, to (ii) the actual 
 number of instructional days in the school year times the length 
 of day in the school. 

    Subd. 3.  In computing pupil units for a prior year, the 
 number of pupil units shall be adjusted to reflect any change 
 for the current year in relative weightings by grade level or 
 category of special assistance, any change in measurement from 
 average daily attendance to average daily membership and any 
 change in school district boundaries, but not for the addition 
 for the first time in the current year of a specified category 
 of special assistance as provided in subdivision 1, clause (4). 

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

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

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

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

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

    Subd. 5. Repealed, 1Sp1997 c 4 art 2 s 52 

    Subd. 6.    Free and reduced priced lunches.  The 
 commissioner shall determine the number of children eligible to 
 receive either a free or reduced priced lunch on October 1 each 
 year.  The commissioner may use federal definitions for these 
 purposes and may adjust these definitions as appropriate.  The 
 commissioner may adopt reporting guidelines to assure accuracy 
 of data counts and eligibility.  Districts shall use any 
 guidelines adopted by the commissioner. 

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

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

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

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

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

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

    HIST: Ex1959 c 71 art 5 s 17; Ex1961 c 77 s 1; 1969 c 736 s 1; 
 1969 c 1085 s 3; 1971 c 829 s 1; Ex1971 c 31 art 20 s 2; 1973 c 
 683 s 4; 1974 c 521 s 18-20; 1975 c 432 s 21,22; 1976 c 2 s 59; 
 1976 c 271 s 42,43; 1977 c 447 art 1 s 4-6; 1978 c 764 s 40-43; 
 1979 c 50 s 13; 1979 c 334 art 1 s 5; 1981 c 358 art 1 s 13-16; 
 1982 c 548 art 3 s 6; 1983 c 314 art 3 s 2; 1985 c 248 s 69; 
 1Sp1985 c 12 art 1 s 5,6; 1986 c 444; 1Sp1986 c 1 art 9 s 2; 
 1987 c 398 art 1 s 2; art 3 s 16; 1988 c 486 s 24,25; 1988 c 718 
 art 3 s 2; art 6 s 6; 1989 c 209 art 2 s 1; 1990 c 562 art 1 s 
 1; 1991 c 130 s 37; 1991 c 265 art 1 s 4-7; art 3 s 38; art 9 s 
 42; 1992 c 499 art 12 s 29; 1993 c 224 art 1 s 2; art 9 s 28,29; 
 art 13 s 35; 1994 c 647 art 1 s 6; art 9 s 7; 1995 c 212 art 4 s 
 64; 1Sp1995 c 3 art 1 s 8-11; art 14 s 4; 1996 c 412 art 1 s 
 7,8; art 4 s 6; art 14 s 2; 1997 c 1 s 3; 1997 c 162 art 2 s 15; 
 1Sp1997 c 4 art 1 s 12-14; art 2 s 3 

*   NOTE:  Subdivision 4, as added by Laws 1996, chapter 412, 
*article 1, section 8, is repealed effective July 1, 1999.  Laws 
*1996, chapter 412, article 1, section 35.

     124.175 AFDC pupil count. 

    Each year by March 1, the department of human services 
 shall certify to the department of children, families, and 
 learning, for each school district, the number of pupils from 
 families receiving aid to families with dependent children who 
 were enrolled in a public school on October 1 of the preceding 
 year.  

    HIST: 1984 c 463 art 1 s 1; 1984 c 654 art 5 s 58; 1Sp1995 c 3 
 art 16 s 13 

  124.177 Repealed, 1Sp1997 c 4 art 6 s 21 

     124.18 Consolidation; instruction by nonresidential 
  district. 

    Subdivision 1.    Aid payments in case of alteration of 
 boundaries.  Where two or more districts hereafter unite the 
 state aid shall continue to be paid for the remainder of the 
 school year in which the union was completed as the state aids 
 were paid to the individual districts prior to the union.  

    Subd. 2.    Tuition.  Except as otherwise provided in 
 law, every district that provides for the instruction of a pupil 
 without a disability in a nonresident district shall pay to the 
 nonresident district the actual cost of the instruction, 
 excluding transportation costs.  Tuition for a nonresident pupil 
 with a disability must be determined according to section 
 120.17, subdivision 4.  

    The resident district shall also pay to the nonresident 
 district, for capital expenditures and debt service, $10 per 
 actual pupil unit in average daily membership for each 
 nonresident pupil unit.  However, a nonresident district may 
 include in its tuition, for capital expenditures and debt 
 service, an amount per actual pupil unit in average daily 
 membership based on the amount that the average expenditure for 
 capital expenditures and debt service determined by dividing 
 such annual expenditure by the total number of pupil units in 
 average daily membership in the district exceeds $10 per actual 
 pupil unit.  If the nonresident district has no capital 
 expenditures or debt service, it may use the money for any 
 purpose for which it is authorized to spend money.  

    Subd. 3.    Tuition as agreed.  Notwithstanding 
 subdivision 2, a resident district may pay a nonresident 
 district the amount for tuition that is agreed upon by the 
 districts. 

    HIST: Ex1959 c 71 art 5 s 18; 1963 c 530 s 1; 1969 c 513 s 1; 
 1975 c 432 s 23; 1988 c 486 s 26,27; 1988 c 718 art 7 s 28; 1991 
 c 265 art 3 s 38 

     124.19 Requirements for aid generally. 

    Subdivision 1.  Repealed, 1993 c 224 art 12 s 32; 1993 c 
 374 s 22 

    Subd. 1b.  Repealed, 1993 c 224 art 12 s 32; 1993 c 374 
 s 22 

    Subd. 2.  Repealed, 1977 c 447 art 1 s 21 

    Subd. 3.    Unlicensed teachers; aid reduction.  When a 
 district employs one or more teachers who do not hold a valid 
 teaching license, state aid shall be withheld in the proportion 
 that the number of such teachers is to the total number of 
 teachers employed by the district, multiplied by 60 percent of 
 the basic revenue, as defined in section 124A.22, subdivision 2, 
 of the district for the year in which the employment occurred. 

    Subd. 4.  In a school where the number of instructional 
 hours in the school day is greater than the number of 
 instructional hours prescribed in the rules of the state board 
 for the school day, the excess number of instructional hours for 
 those days may be included in calculating the required number of 
 days school is in session for purposes of fulfilling the 
 requirements of subdivision 1, provided that no instructional 
 hours are included from half-day sessions or any school day 
 which has less instructional hours than the number of 
 instructional hours prescribed in the rules of the state board 
 unless the average number of instructional hours for all school 
 days in the school year equals or exceeds the number of 
 instructional hours prescribed in the rules of the state board.  
 The district shall notify the department of each adjustment.  

    Subd. 5.    Schedule adjustments.  (a) It is the 
 intention of the legislature to encourage efficient and 
 effective use of staff and facilities by school districts.  
 School districts are encouraged to consider both cost and energy 
 saving measures.  

    (b) Notwithstanding the provisions of subdivision 1 or 4, 
 any district operating a program pursuant to sections 120.59 to 
 120.67, 121.585 or 125.701 to 125.705, or operating a 
 commissioner-designated area learning center program under 
 section 124C.49, or that otherwise receives the approval of the 
 commissioner to operate its instructional program to avoid an 
 aid reduction in any year, may adjust the annual school schedule 
 for that program throughout the calendar year.  

    Subd. 6.  Repealed, 1993 c 224 art 12 s 32; 1993 c 374 s 
 22 

    Subd. 7.  Repealed, 1993 c 224 art 12 s 32; 1993 c 374 s 
 22 

    HIST: Ex1959 c 71 art 5 s 19; 1969 c 379 s 1; 1974 c 326 s 12; 
 1975 c 321 s 2; 1977 c 447 art 1 s 7; 1978 c 764 s 44; 1979 c 
 162 s 1; 1979 c 334 art 1 s 6; 1980 c 609 art 1 s 5; 1982 c 548 
 art 4 s 9,10; 1983 c 314 art 7 s 24; art 9 s 12; 1984 c 463 art 
 1 s 2; 1Sp1985 c 12 art 7 s 19; art 8 s 17; 1988 c 486 s 28-30; 
 1989 c 329 art 1 s 2,3; 1990 c 426 art 2 s 1; 1990 c 562 art 3 s 
 2; 1991 c 130 s 37; 1991 c 265 art 7 s 10-12; 1992 c 464 art 1 s 
 20; 1992 c 499 art 4 s 5; art 12 s 10; 1993 c 224 art 1 s 3; art 
 7 s 8; art 9 s 30; art 12 s 18; 1994 c 647 art 9 s 8,9; 1Sp1995 
 c 3 art 16 s 13 

     124.193 Prohibited aid and levies. 

    Subdivision 1.    General prohibition.  Unless 
 specifically permitted in the provision authorizing an aid or a 
 levy, cooperative units of government defined in section 123.35, 
 subdivision 19b, paragraph (d), are prohibited from making a 
 property tax levy or qualifying for or receiving any form of 
 state aid except as provided in subdivisions 2 and 3. 

    Subd. 2.    Grants.  A cooperative unit may apply for 
 and receive a grant on behalf of its members. 

    Subd. 3.    Allocation from members.  By July 15 of each 
 year, a school district may, by board resolution, request the 
 department to make a payment to a third party.  The total sum of 
 the payments for the year may not exceed the lesser of (a) the 
 district's general education aid for the fiscal year beginning 
 July 1, according to sections 124A.036, subdivision 5, and 
 124A.23, subdivision 4, or (b) an amount equal to $100 times the 
 fund balance pupil units for the fiscal year beginning July 1.  
 By July 30 of each year, the school district must report to the 
 commissioner the amount allocated.  The amount shall be paid to 
 the third party according to section 124.195, subdivision 15.  
 Amounts paid to third parties under this subdivision shall be 
 recognized and reported as revenues and expenditures on the 
 school district's books of account under sections 121.904 and 
 121.906. 

    HIST: 1994 c 647 art 6 s 22; 1Sp1995 c 3 art 9 s 27; 1Sp1997 c 
 4 art 3 s 11 

     124.195 Payment of aids and credits to school districts. 

    Subdivision 1.    Applicability.  This section applies 
 to all aids or credits paid by the commissioner of children, 
 families, and learning from the general fund to school districts.

    Subd. 2.    Definitions.  (a) The term "other district 
 receipts" means payments by county treasurers pursuant to 
 section 276.10, apportionments from the school endowment fund 
 pursuant to section 124.09, apportionments by the county auditor 
 pursuant to section 124.10, subdivision 2, and payments to 
 school districts by the commissioner of revenue pursuant to 
 chapter 298.  

    (b) The term "cumulative amount guaranteed" means the sum 
 of the following: 

    (1) one-third of the final adjustment payment according to 
 subdivision 6; plus 

    (2) the product of 

    (i) the cumulative disbursement percentage shown in 
 subdivision 3; times 

    (ii) the sum of 

    90 percent of the estimated aid and credit entitlements 
 paid according to subdivision 10; plus 

    100 percent of the entitlements paid according to 
 subdivisions 8 and 9; plus 

    the other district receipts; plus 

    the final adjustment payment according to subdivision 6.  

    (c) The term "payment date" means the date on which state 
 payments to school districts are made by the electronic funds 
 transfer method.  If a payment date falls on a Saturday, a 
 Sunday, or a weekday which is a legal holiday, the payment shall 
 be made on the immediately following business day.  The 
 commissioner of children, families, and learning may make 
 payments on dates other than those listed in subdivision 3, but 
 only for portions of payments from any preceding payment dates 
 which could not be processed by the electronic funds transfer 
 method due to documented extenuating circumstances. 

    Subd. 3.    Payment dates and percentages.  The 
 commissioner of children, families, and learning shall pay to a 
 school district on the dates indicated an amount computed as 
 follows:  the cumulative amount guaranteed minus the sum of (a) 
 the district's other district receipts through the current 
 payment, and (b) the aid and credit payments through the 
 immediately preceding payment.  For purposes of this 
 computation, the payment dates and the cumulative disbursement 
 percentages are as follows:  

                          Payment date               Percentage 
 Payment 1    July 15:                                   2.25
 Payment 2    July 30:                                   4.50 
 Payment 3    August 15:  the greater of (a) the final        
              adjustment for the prior fiscal year for
              the state paid property tax credits
              established in section 273.1392, or
              (b) the amount needed to provide 6.75 percent
 Payment 4    August 30:                                 9.0 
 Payment 5    September 15:                             12.75 
 Payment 6    September 30:                             16.50
 Payment 7    October 15:  the greater of (a) one-half of
              the final adjustment for the prior fiscal year
              for all aid entitlements except state paid
              property tax credits, or (b) the amount needed to
              provide 20.75 percent
 Payment 8    October 30:  the greater of (a) one-half of the
              final adjustment for the prior fiscal year for all
              aid entitlements except state paid property
              tax credits, or (b) the amount needed
              to provide 25.0 percent
 Payment 9    November 15:                               31.0
 Payment 10   November 30:                               37.0
 Payment 11   December 15:                               40.0
 Payment 12   December 30:                               43.0
 Payment 13   January 15:                                47.25
 Payment 14   January 30:                                51.5
 Payment 15   February 15:                               56.0
 Payment 16   February 28:                               60.5
 Payment 17   March 15:                                  65.25
 Payment 18   March 30:                                  70.0
 Payment 19   April 15:                                  73.0
 Payment 20   April 30:                                  79.0 
 Payment 21   May 15:                                    82.0 
 Payment 22   May 30:                                    90.0 
 Payment 23   June 20:                                  100.0

    Subd. 3a.    Appeal.  The commissioner in consultation 
 with the commissioner of finance may revise the payment dates 
 and percentages in subdivision 3 for a district if it is 
 determined that there is an emergency or there are serious cash 
 flow problems in the district that cannot be resolved by issuing 
 warrants or other forms of indebtedness.  The commissioner shall 
 establish a process and criteria for school districts to appeal 
 the payment dates and percentages established in subdivision 3. 

    Subd. 3b.    Cash flow adjustment.  During each year in 
 which the cash flow low points for August, September, and 
 October estimated by the commissioner of finance for invested 
 treasurer's cash exceeds $360,000,000, the commissioner of 
 children, families, and learning shall increase the cumulative 
 disbursement percentages established in subdivision 3 to the 
 following amounts: 

 Payment 3   August 15:                         12.75 percent
 Payment 4   August 30:                         15.00 percent
 Payment 5   September 15:                      17.25 percent
 Payment 6   September 30:                      19.50 percent
 Payment 7   October 15:                        21.75 percent

    Subd. 3c.    Cash flow waiver.  For any district 
 exceeding its expenditure limitations under section 121.917, and 
 if requested by the district, the commissioner of children, 
 families, and learning, in consultation with the commissioner of 
 finance, and a school district may negotiate a cash flow payment 
 schedule under subdivision 3 corresponding to the district's 
 cash flow needs so as to minimize the district's short-term 
 borrowing needs. 

    Subd. 4.    Payment limit.  Subdivision 3 does not 
 authorize the commissioner of children, families, and learning 
 to pay to a district's operating funds an amount of state 
 general fund cash that exceeds the sum of:  

    (a) its estimated aid and credit payments for the current 
 year according to subdivision 10; 

    (b) its actual aid payments according to subdivisions 8 and 
 9; and 

    (c) the final adjustment payment for the prior year.  

    Subd. 5.    Commissioner's assumptions.  For purposes of 
 determining the amount of state general fund cash to be paid to 
 school districts pursuant to subdivision 3, the commissioner of 
 children, families, and learning shall:  

    (a) assume that the payments to school districts by the 
 county treasurer of revenues accruing to the fiscal year of 
 receipt pursuant to section 276.11 are made in the following 
 manner: 

    (1) 50 percent within seven business days of each due date; 
 and 

    (2) 100 percent within 14 business days of each due date; 

    (b) assume that the payments to school districts by the 
 county treasurer of revenues accruing to the fiscal year of 
 receipt pursuant to section 276.111 are made in the following 
 manner: 

    (1) 50 percent within seven business days of the October 15 
 due date; 

    (2) 100 percent within 14 business days of the October 15 
 due date; and 

    (3) 100 percent within ten business days of the November 15 
 due date. 

    (c) assume that the payments to school districts by county 
 auditors pursuant to section 124.10, subdivision 2 are made at 
 the end of the months indicated in that subdivision. 

    Subd. 6.    Final adjustment payment.  For all aids and 
 credits paid according to subdivision 10, the final adjustment 
 payment shall include the amounts necessary to pay the 
 district's full aid entitlement for the prior year based on 
 actual data.  This payment shall be used to correct all 
 estimates used for the payment schedule in subdivision 3.  The 
 payment shall be made as specified in subdivision 3.  In the 
 event actual data are not available, the final adjustment 
 payment may be computed based on estimated data.  A corrected 
 final adjustment payment shall be made when actual data are 
 available. 

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

    Subd. 8.    Payment percentage for reimbursement aids.  
 One hundred percent of the special education special pupil aid 
 according to section 124.32, subdivision 6, for the previous 
 fiscal year must be paid in the current year. 

    Subd. 9.    Payment percentage for certain aids.  One 
 hundred percent of the aid for the current fiscal year must be 
 paid for the following aids:  reimbursement for transportation 
 to post-secondary institutions, according to section 123.3514, 
 subdivision 8; aid for the program for adults with disabilities, 
 according to section 124.2715, subdivision 2; school lunch aid, 
 according to section 124.646; hearing impaired support services 
 aid, according to section 121.201; Indian post-secondary 
 preparation grants according to section 124.481; integration 
 grants according to Laws 1989, chapter 329, article 8, section 
 14, subdivision 3; and debt service aid according to section 
 124.95, subdivision 5. 

    Subd. 10.    Aid payment percentage.  Except as provided 
 in subdivisions 8, 9, and 11, each fiscal year, all education 
 aids and credits in this chapter and chapters 121, 123, 124A, 
 124B, 125, 126, 134, and section 273.1392, shall be paid at 90 
 percent of the estimated entitlement during the fiscal year of 
 the entitlement.  The final adjustment payment, according to 
 subdivision 6, shall be the amount of the actual entitlement, 
 after adjustment for actual data, minus the payments made during 
 the fiscal year of the entitlement. 

    Subd. 11.    Nonpublic aids.  The state shall pay aid 
 according to sections 123.931 to 123.947 for pupils attending 
 nonpublic schools as follows: 

    (1) an advance payment by November 30 equal to 90 percent 
 of the estimated entitlement for the current fiscal year; and 

    (2) a final payment by October 31 of the following fiscal 
 year, adjusted for actual data.  

    If a payment advance to meet cash flow needs is requested 
 by a district and approved by the commissioner, the state shall 
 pay nonpublic pupil transportation aid according to section 
 124.225 by October 31. 

    Subd. 12. Repealed, 1997 c 233 art 1 s 78 

    Subd. 13. Repealed, 1993 c 224 art 14 s 17 

    Subd. 14.    Education aids cash flow account.  (a) An 
 education aids cash flow account is established in the state 
 treasury for the purpose of ensuring the timely payment of state 
 aids or credits to school districts as provided in this 
 section.  In the event the account balance in any appropriation 
 from the general fund to the department of children, families, 
 and learning for education aids or credits is insufficient to 
 make the next scheduled payment or payments, the commissioner of 
 children, families, and learning is authorized to transfer funds 
 from the education aids cash flow account to the accounts that 
 are insufficient. 

    (b) For purposes of this subdivision, an account may have 
 an insufficient balance only as a result of some districts being 
 overpaid based on revised estimates for the relevant annual aid 
 or credit entitlements.  When the overpayment amounts are 
 recovered from the pertinent districts, the commissioner of 
 children, families, and learning shall transfer those amounts to 
 the education aids cash flow account.  The commissioner shall 
 determine when it is not feasible to recover the overpayments in 
 a timely manner from the district's future aid payments and 
 notify the district of the amount that is to be refunded to the 
 state.  School districts are encouraged to make such refunds 
 promptly.  The commissioner may approve a schedule for making a 
 refund when a district demonstrates that its cash flow is 
 inadequate to promptly make the refund in full. 

    (c) There is annually appropriated from the general fund to 
 the education aids cash flow account the additional amount 
 necessary to ensure the timely payment of state aids or credits 
 to school districts as provided in this section.  For any fiscal 
 year, the appropriation authorized in this subdivision shall not 
 exceed an amount equal to two-tenths of one percent of the total 
 general fund appropriations in that year for education aids and 
 credits.  At the close of each fiscal year, the amount of actual 
 transfers plus anticipated transfers required in paragraph (b) 
 shall equal the authorized amounts transferred in paragraph (a) 
 so that the net effect on total general fund spending for 
 education aids and credits is zero. 

    Subd. 15.    Payments to third parties.  Notwithstanding 
 subdivision 3, 90 percent of the amounts under section 124.193, 
 subdivision 3, shall be paid in equal installments on August 30, 
 December 30, and March 30, with a ten percent final adjustment 
 payment on October 30 of the next fiscal year. 

    HIST: 1983 c 342 art 7 s 3; 1984 c 463 art 9 s 4-6; 1984 c 655 
 art 1 s 25; 1Sp1985 c 12 art 10 s 3-7; 1Sp1986 c 1 art 4 s 8; 
 art 5 s 6,7; art 9 s 3; 1987 c 268 art 9 s 4; 1987 c 384 art 2 s 
 29,30; 1987 c 398 art 6 s 2; art 7 s 25; 1988 c 486 s 31,32; 
 1989 c 329 art 8 s 2,3; 1990 c 562 art 1 s 2; art 3 s 13; art 6 
 s 20; art 8 s 26; 1990 c 604 art 3 s 4; 1991 c 130 s 10-14; 1991 
 c 199 art 2 s 9; 1991 c 265 art 2 s 3; art 5 s 5; 1992 c 499 art 
 1 s 7,8; 1993 c 224 art 6 s 8; art 7 s 9; art 8 s 1; art 14 s 9; 
 1994 c 465 art 2 s 12; 1994 c 647 art 1 s 7-10; 1Sp1995 c 3 art 
 1 s 12-14; art 16 s 13; 1996 c 412 art 1 s 9,10; 1997 c 231 art 
 9 s 3,4; 1Sp1997 c 4 art 1 s 15-18; art 3 s 12 

     124.196 Change in payment of aids and credits. 

    If the commissioner of finance determines that 
 modifications in the payment schedule would reduce the need for 
 state short-term borrowing, the commissioner of children, 
 families, and learning shall modify payments to school districts 
 according to this section.  The modifications shall begin no 
 sooner than September 1 of each fiscal year, and shall remain in 
 effect until no later than May 30 of that same fiscal year.  In 
 calculating the payment to a school district pursuant to section 
 124.195, subdivision 3, the commissioner may subtract the sum 
 specified in that subdivision, plus an additional amount no 
 greater than the following: 

    (1) the net cash balance in the district's four operating 
 funds on June 30 of the preceding fiscal year; minus 

    (2) the product of $150 times the number of actual pupil 
 units in the preceding fiscal year; minus 

    (3) the amount of payments made by the county treasurer 
 during the preceding fiscal year, pursuant to section 276.11, 
 which is considered revenue for the current school year.  
 However, no additional amount shall be subtracted if the total 
 of the net unappropriated fund balances in the district's four 
 operating funds on June 30 of the preceding fiscal year, is less 
 than the product of $350 times the number of actual pupil units 
 in the preceding fiscal year.  The net cash balance shall 
 include all cash and investments, less certificates of 
 indebtedness outstanding, and orders not paid for want of funds. 

    A district may appeal the payment schedule established by 
 this section according to the procedures established in section 
 124.195, subdivision 3a. 

    HIST: 1Sp1986 c 1 art 5 s 9; 1987 c 398 art 6 s 17; 1994 c 587 
 art 7 s 3; 1Sp1995 c 3 art 16 s 13 

  124.197 Repealed, 1993 c 224 art 1 s 42 

    124.20 Subdivision 1.  Renumbered 124A.033 
 subdivision 1 

    Subd. 2.  Renumbered 124A.033 subd 2 

    Subd. 3.  Repealed, 3Sp1981 c 2 art 2 s 19 

    Subd. 4.  Renumbered 124A.033 subd 3 

    Subd. 5.  Renumbered 124A.033 subd 4 

    Subd. 6.  Renumbered 124A.033 subd 5 

  124.201 Repealed, 1984 c 463 art 2 s 8 subd 2 

  124.21 Repealed, 1967 c 769 s 2 

  124.211 Repealed, Ex1971 c 31 art 20 s 25 

    124.212 Subdivision 1.  Repealed, 1984 c 463 art 1 
 s 15 

    Subd. 2.  Repealed, 1981 c 358 art 1 s 49 

    Subd. 3.  Repealed, 1973 c 683 s 30 

    Subd. 3a.  Repealed, 1977 c 447 art 1 s 22 

    Subd. 4.  Repealed, 1981 c 358 art 1 s 49 

    Subd. 5.  Repealed, 1981 c 358 art 1 s 49 

    Subd. 5a.  Repealed, 1981 c 358 art 1 s 49 

    Subd. 6.  Repealed, 1973 c 683 s 30 

    Subd. 6a.  Repealed, 1975 c 432 s 97 

    Subd. 6b.  Repealed, 1979 c 334 art 1 s 27 

    Subd. 6c.  Repealed, 1981 c 358 art 1 s 49 

    Subd. 7.  Repealed, 1973 c 683 s 30 

    Subd. 7a.  Repealed, 1975 c 432 s 97 

    Subd. 7b.  Repealed, 1979 c 334 art 1 s 27 

    Subd. 7c.  Repealed, 1981 c 358 art 1 s 49 

    Subd. 7d.  Repealed, 1981 c 358 art 1 s 49 

    Subd. 8.  Repealed, 1973 c 683 s 30 

    Subd. 8a.  Repealed, 1981 c 358 art 1 s 49 

    Subd. 9.  Repealed, 1981 c 358 art 1 s 49 

    Subd. 9a.  Repealed, 1981 c 358 art 1 s 49 

    Subd. 9b.  Repealed, 1981 c 358 art 1 s 49 

    Subd. 10.  Renumbered 124.2131 subdivision 1 

    Subd. 11.  Renumbered 124.2131 subd 2 

    Subd. 11a.  Renumbered 124.2131 subd 3 

    Subd. 11b.  Renumbered 124.2131 subd 4 

    Subd. 12.  Renumbered 124.2131 subd 5 

    Subd. 13.  Renumbered 124.2131 subd 6 

    Subd. 14.  Renumbered 124.2131 subd 7 

    Subd. 15.  Renumbered 124.2131 subd 8 

    Subd. 16.  Renumbered 124.2131 subd 9 

    Subd. 17.  Renumbered 124.2131 subd 10 

    Subd. 18.  Renumbered 124.2131 subd 11 

    Subd. 19.  Repealed, 1977 c 447 art 1 s 21 

    Subd. 20.  Repealed, 1981 c 358 art 1 s 49 

    Subd. 20a.  Repealed, 1981 c 358 art 1 s 49 

    Subd. 21.  Repealed, 1981 c 358 art 1 s 49 

    124.2121 Subdivision 1.  Renumbered 124A.02 subd 
 4a 

    Subd. 2.  Renumbered 124A.02 subd 3a 

    Subd. 3.  Renumbered 124A.02 subds 15-19 

    Subd. 4.  Renumbered 124A.02 subd 8 

    Subd. 5.  Renumbered 124A.02 subd 10 

    124.2122 Subdivision 1.  Renumbered 124A.02 subd 9 

    Subd. 2.  Renumbered 124A.02 subd 7 

    Subd. 3.  Renumbered 124A.02 subd 6 

    Subd. 4.  Renumbered 124A.02 subd 5 

  124.2123 Repealed, 1983 c 314 art 1 s 23 subd 2 

  124.2124 Repealed, 1983 c 314 art 1 s 23 subd 2 

  124.2125 Repealed, 1983 c 314 art 1 s 23 subd 2 

    124.2126 Subdivision 1.  Renumbered 124A.02 subd 
 12 

    Subd. 2.  Renumbered 124A.02 subd 13 

    Subd. 3.  Renumbered 124A.02 subd 11 

    124.2127 Subdivision 1.  Renumbered 124A.02 subds 
 20-22; 124A.034, subds 1-1b 

    Subd. 2.  Renumbered 124A.034 subd 2 

   124.2128 MS 1981 Supp Renumbered 124.2132 

  124.2129 Renumbered 124.2133 

   124.213 MS 1978 Repealed, 1979 c 334 art 1 s 27 

  124.213 MS 1980 Renumbered 124.2137 

     124.2131 Adjustment of net tax capacity. 

    Subdivision 1.    Adjusted net tax capacity.  (a)   
 Computation.  The department of revenue shall annually conduct 
 an assessment/sales ratio study of the taxable property in each 
 school district in accordance with the procedures in paragraphs 
 (b) and (c).  Based upon the results of this assessment/sales 
 ratio study, the department of revenue shall determine an 
 aggregate equalized net tax capacity for the various classes of 
 taxable property in each school district, which tax capacity 
 shall be designated as the adjusted net tax capacity.  The 
 adjusted net tax capacities shall be determined using the net 
 tax capacity percentages in effect for the assessment year 
 following the assessment year of the study.  The department of 
 revenue shall make whatever estimates are necessary to account 
 for changes in the classification system.  The department of 
 revenue may incur the expense necessary to make the 
 determinations.  The commissioner of revenue may reimburse any 
 county or governmental official for requested services performed 
 in ascertaining the adjusted net tax capacity.  On or before 
 March 15 annually, the department of revenue shall file with the 
 chair of the tax committee of the house of representatives and 
 the chair of the committee on taxes and tax laws of the senate a 
 report of adjusted net tax capacities.  On or before June 15 
 annually, the department of revenue shall file its final report 
 on the adjusted net tax capacities established by the previous 
 year's assessments and the current year's net tax capacity 
 percentages with the commissioner of children, families, and 
 learning and each county auditor for those school districts for 
 which the auditor has the responsibility for determination of 
 local tax rates.  A copy of the report so filed shall be mailed 
 to the clerk of each district involved and to the county 
 assessor or supervisor of assessments of the county or counties 
 in which each district is located. 

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

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

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

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

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

    Subd. 2.    Adjusted net tax capacity; growth limit.  In 
 the calculation of adjusted net tax capacities for 1987 and each 
 year thereafter, the commissioner of revenue shall not increase 
 the adjusted net tax capacity of taxable property for any school 
 district over the adjusted net tax capacity established and 
 filed with the commissioner of children, families, and learning 
 for the immediately preceding year by more than the greater of 
 (1) 19 percent of the certified adjusted net tax capacity 
 established and filed with the commissioner of children, 
 families, and learning for the year immediately preceding, or 
 (2) 40 percent of the difference between the district's total 
 adjusted net tax capacity for the current year calculated 
 without the application of this subdivision and the district's 
 certified adjusted net tax capacity established and filed with 
 the commissioner of children, families, and learning for the 
 immediately preceding year.  

    Subd. 3.    Decrease in iron ore net tax capacity.  If 
 in any year the net tax capacity of iron ore property, as 
 defined in section 273.13, subdivision 31, in any district is 
 less than the net tax capacity of such property in the preceding 
 year, the commissioner of revenue shall redetermine for all 
 purposes the adjusted net tax capacity of the preceding year 
 taking into account only the decrease in net tax capacity of 
 iron ore property as defined in section 273.13, subdivision 31.  
 If subdivision 2, clause (a), is applicable to the district, the 
 decrease in iron ore property shall be applied to the adjusted 
 net tax capacity as limited therein.  In all other respects, the 
 provisions of clause (1) shall apply.  

    Subd. 3a.    Captured tax capacity adjustment.  In 
 calculating adjusted net tax capacity, the commissioner of 
 revenue shall increase the adjusted net tax capacity of a school 
 district containing a tax increment financing district for which 
 an election is made under section 469.1782, subdivision 1, 
 clause (1).  The amount of the increase equals the captured net 
 tax capacity of the tax increment financing district in the year 
 preceding the first taxes payable year in which the special law 
 permits collection beyond that permitted by the general law 
 duration limit that otherwise would apply.  The addition applies 
 beginning for aid and levy for the first taxes payable year in 
 which the special law permits collection of increment beyond 
 that permitted by the general law duration limit that otherwise 
 would apply.  The addition continues to apply for each taxes 
 payable year the district remains in effect. 

    Subd. 4.  Repealed, 1987 c 268 art 6 s 53 

    Subd. 5.    Adjusted net tax capacity; appeals.  Should 
 any district within 30 days after receipt of a copy of a report 
 filed with the commissioner of children, families, and learning 
 made pursuant to subdivision 1 or 3, be of the opinion that the 
 commissioner of revenue has made an error in the determination 
 of the school district's market value, it may appeal from the 
 report or portion thereof relating to the school district to the 
 commissioner of revenue for a review and determination of the 
 matters contained in the appeal.  The commissioner shall advise 
 the school district of the determination within 30 days.  If the 
 school district wishes to appeal the determination of the 
 commissioner, it must file a notice of appeal with the tax 
 court, as provided in subdivisions 6 to 11 within ten days of 
 the notice of determination from the commissioner.  

    Subd. 6.    Notice of appeal.  The school district shall 
 file with the court administrator of the tax court a notice of 
 appeal from the determination of the commissioner of revenue 
 fixing the market value of the school district, and such notice 
 shall show the basis of the alleged error.  A copy of such 
 notice of appeal shall be served upon the commissioner of 
 revenue, and proof of service shall be filed with the court 
 administrator. 

    Subd. 7.    Hearing.  Upon receipt of the notice of 
 appeal the tax court shall review the notice of appeal and 
 determine whether it appears from the allegations and proofs 
 therein contained that an error has been made in the 
 determination by the commissioner of revenue of the market value 
 of the property in the school district.  If the court finds it 
 probable that such an error has been made, it shall notice the 
 matter for hearing; otherwise, it shall dismiss the appeal and 
 notify the parties thereof.  Hearing shall be set and held in 
 the same manner as other hearings of the tax court are set and 
 heard, except that an appeal filed under subdivision 5 shall 
 take precedence over other appeals pending before the court.  
 The attorney general shall represent the commissioner of revenue.
 The administrative procedure act, sections 14.09 to 14.28, 
 14.38, 14.44 to 14.45, and 14.57 to 14.69, shall apply to 
 hearings insofar as it is applicable. 

    Subd. 8.    Tax court determination.  The tax court 
 shall hear, consider and determine such appeal, de novo upon the 
 issues made by the notice of appeal, if a hearing has been 
 granted thereon.  At the conclusion of the hearing the court 
 shall (1) file findings of fact, or (2) refer the issues to the 
 commissioner of revenue with instructions and recommendations 
 for a determination and correction of the market value of the 
 appealing school district.  The decision of the tax court, if it 
 decides the matter de novo, shall have the same force and effect 
 as a determination by the commissioner of revenue in the first 
 instance under this section, and the commissioner of revenue 
 shall be notified thereof.  If the matter is rereferred to the 
 commissioner of revenue, a redetermination by the commissioner 
 of revenue in accordance with the recommendations of the tax 
 court shall likewise have the same force and effect as a 
 determination by it in the first instance under this section. 

    Subd. 9.    Hearing examiner.  In addition to the 
 powers and duties of the tax court as prescribed by chapter 271, 
 and any act amendatory thereof, any hearing ordered pursuant to 
 the provisions hereunder may be heard by a hearing examiner in 
 lieu of one or more judges of the tax court.  If a hearing is 
 conducted by a hearing examiner, such hearing examiner shall 
 exercise the same powers conferred by law upon one or more 
 judges of the tax court.  The hearing examiner shall report to 
 the court. The court is authorized to make findings of fact 
 based on the report of the hearing examiner in the same manner 
 as is required by these provisions when the hearing is conducted 
 by the court.  The tax court may employ hearing examiners upon 
 such terms and conditions as it shall prescribe.  A hearing 
 examiner so appointed shall be in the unclassified service of 
 the state. 

    Subd. 10.    Limitation of appeals.  A decision of the 
 tax court pursuant to the terms hereof shall be final and shall 
 not be subject to review by any court, except upon certiorari to 
 the supreme court. 

    Subd. 11.    Aids pending appeals.  During the pendency 
 of any appeal from the commissioner of revenue evaluation, state 
 aids to the district so appealing shall be paid on the basis of 
 the evaluation subject to adjustment upon final determination of 
 the appeal. 

    HIST: Ex1971 c 31 art 20 s 3; 1973 c 582 s 3; 1973 c 683 s 
 5-10,27; 1974 c 521 s 22,23; 1975 c 432 s 25-33; 1976 c 134 s 
 78; 1976 c 239 s 35; 1976 c 271 s 44-46; 1977 c 307 s 29; 1977 c 
 423 art 3 s 1,2; art 4 s 1; 1977 c 447 art 1 s 8-15,17; 1978 c 
 706 s 32; 1978 c 733 s 20,21; 1978 c 764 s 46-51; 1978 c 767 s 
 1; 1979 c 334 art 1 s 7-11; art 3 s 4,5; 1980 c 429 s 1; 1980 c 
 443 s 1; 1980 c 509 s 33; 1980 c 607 art 4 s 1; art 7 s 8; 1980 
 c 609 art 1 s 7; 1981 c 358 art 1 s 18,19,48; 1982 c 424 s 130; 
 1984 c 502 art 11 s 1; 1Sp1985 c 14 art 3 s 1; art 4 s 18; 1986 
 c 444; 1Sp1986 c 1 art 4 s 9; 1Sp1986 c 3 art 1 s 82; 1987 c 268 
 art 6 s 3; art 7 s 3-10; 1987 c 384 art 2 s 1; 1988 c 719 art 5 
 s 2,84; 1989 c 329 art 13 s 1; art 13 s 20; 1Sp1989 c 1 art 2 s 
 11; art 9 s 1; 1992 c 511 art 2 s 5; 1992 c 556 s 1; 1993 c 224 
 art 1 s 4; 1994 c 416 art 1 s 4; 1995 c 233 art 2 s 56; 1995 c 
 264 art 5 s 1; 1Sp1995 c 3 art 16 s 13 

  124.2132 Renumbered 124A.035 

  124.2133 Renumbered 124A.036 

  124.2134 Repealed, 1997 c 231 art 1 s 21 

  124.2137 Repealed, 1987 c 268 art 6 s 53 

    124.2138 Subdivision 1.  Renumbered 124A.037 

    Subd. 2.  Repealed, 1Sp1985 c 12 art 1 s 37 subd 2 

    Subd. 3.  Repealed, 1989 c 329 art 9 s 34 

    Subd. 4.  Repealed, 1989 c 329 art 9 s 34 

  124.2139 Repealed, 1997 c 233 art 1 s 78 

     124.214 Aid adjustments. 

    Subdivision 1.    Omissions.  No adjustments to any aid 
 payments made pursuant to this chapter or chapter 124A, 
 resulting from omissions in school district reports, except 
 those adjustments determined by the legislative auditor, shall 
 be made for any school year after December 30 of the next school 
 year, unless otherwise specifically provided by law. 

    Subd. 2.    Abatements.  Whenever by virtue of chapter 
 278, sections 270.07, 375.192, or otherwise, the net tax 
 capacity of any school district for any taxable year is changed 
 after the taxes for that year have been spread by the county 
 auditor and the local tax rate as determined by the county 
 auditor based upon the original net tax capacity is applied upon 
 the changed net tax capacities, the county auditor shall, prior 
 to February 1 of each year, certify to the commissioner of 
 children, families, and learning the amount of any resulting net 
 revenue loss that accrued to the school district during the 
 preceding year.  Each year, the commissioner shall pay an 
 abatement adjustment to the district in an amount calculated 
 according to the provisions of this subdivision.  This amount 
 shall be deducted from the amount of the levy authorized by 
 section 124.912, subdivision 9.  The amount of the abatement 
 adjustment shall be the product of:  

    (1) the net revenue loss as certified by the county 
 auditor, times 

    (2) the ratio of:  

    (a) the sum of the amounts of the district's certified levy 
 in the preceding year according to the following:  

    (i) section 124A.23 if the district received general 
 education aid according to that section for the second preceding 
 year; 

    (ii) section 124.226, subdivisions 1 and 4, if the district 
 received transportation aid according to section 124.225 for the 
 second preceding year; 

    (iii) section 124.243, if the district received capital 
 expenditure facilities aid according to that section for the 
 second preceding year; 

    (iv) section 124.244, if the district received capital 
 expenditure equipment aid according to that section for the 
 second preceding year; 

    (v) section 124.83, if the district received health and 
 safety aid according to that section for the second preceding 
 year; 

    (vi) sections 124.2713, 124.2714, and 124.2715, if the 
 district received aid for community education programs according 
 to any of those sections for the second preceding year; 

    (vii) section 124.2711, subdivision 2a, if the district 
 received early childhood family education aid according to 
 section 124.2711 for the second preceding year; 

    (viii) section 124.321, subdivision 3, if the district 
 received special education levy equalization aid according to 
 that section for the second preceding year; 

    (ix) section 124A.03, subdivision 1g, if the district 
 received referendum equalization aid according to that section 
 for the second preceding year; and 

    (x) section 124A.22, subdivision 4a, if the district 
 received training and experience aid according to that section 
 for the second preceding year; 

    (b) to the total amount of the district's certified levy in 
 the preceding October, plus or minus auditor's adjustments. 

    Subd. 3.    Excess tax increment.  If a return of excess 
 tax increment is made to a school district pursuant to section 
 469.176, subdivision 2, or upon decertification of a tax 
 increment district, the school district's aid and levy 
 limitations must be adjusted for the fiscal year in which the 
 excess tax increment is paid under the provisions of this 
 subdivision. 

    (a) An amount must be subtracted from the school district's 
 aid for the current fiscal year equal to the product of: 

    (1) the amount of the payment of excess tax increment to 
 the school district, times 

    (2) the ratio of: 

    (A) the sum of the amounts of the school district's 
 certified levy for the fiscal year in which the excess tax 
 increment is paid according to the following: 

    (i) section 124A.23, if the district received general 
 education aid according to that section for the second preceding 
 year; 

    (ii) section 124.226, subdivisions 1 and 4, if the school 
 district received transportation aid according to section 
 124.225 for the second preceding year; 

    (iii) section 124.243, if the district received capital 
 expenditure facilities aid according to that section for the 
 second preceding year; 

    (iv) section 124.244, if the district received capital 
 expenditure equipment aid according to that section for the 
 second preceding year; 

    (v) section 124.83, if the district received health and 
 safety aid according to that section for the second preceding 
 year; 

    (vi) sections 124.2713, 124.2714, and 124.2715, if the 
 district received aid for community education programs according 
 to any of those sections for the second preceding year; 

    (vii) section 124.2711, subdivision 2a, if the district 
 received early childhood family education aid according to 
 section 124.2711 for the second preceding year; 

    (viii) section 124.321, subdivision 3, if the district 
 received special education levy equalization aid according to 
 that section for the second preceding year; 

    (ix) section 124A.03, subdivision 1g, if the district 
 received referendum equalization aid according to that section 
 for the second preceding year; and 

    (x) section 124A.22, subdivision 4a, if the district 
 received training and experience aid according to that section 
 for the second preceding year; 

    (B) to the total amount of the school district's certified 
 levy for the fiscal year, plus or minus auditor's adjustments. 

    (b) An amount must be subtracted from the school district's 
 levy limitation for the next levy certified equal to the 
 difference between: 

    (1) the amount of the distribution of excess increment, and 

    (2) the amount subtracted from aid pursuant to clause (a). 

    If the aid and levy reductions required by this subdivision 
 cannot be made to the aid for the fiscal year specified or to 
 the levy specified, the reductions must be made from aid for 
 subsequent fiscal years, and from subsequent levies.  The school 
 district shall use the payment of excess tax increment to 
 replace the aid and levy revenue reduced under this subdivision. 

    This subdivision applies only to the total amount of excess 
 increments received by a school district for a calendar year 
 that exceeds $25,000. 

    HIST: 1977 c 447 art 6 s 2; 1978 c 764 s 54; 1980 c 609 art 4 
 s 7; 1981 c 358 art 1 s 30; 1983 c 314 art 1 s 22; art 6 s 11; 
 1984 c 463 art 6 s 1; art 7 s 12; 1986 c 465 art 2 s 1; 1987 c 
 291 s 202; 1988 c 718 art 6 s 7,8; 1988 c 719 art 5 s 84; 1989 c 
 222 s 12,13; 1989 c 329 art 13 s 20; 1Sp1989 c 1 art 2 s 11; 
 1991 c 130 s 16,17,37; 1992 c 499 art 12 s 11,12,29; 1994 c 465 
 art 2 s 1; 1994 c 647 art 8 s 5; 1Sp1995 c 3 art 8 s 2,3; art 16 
 s 13 

     124.2141 Aid adjustments due to changes in employer 
  retirement contribution rates. 

    Subdivision 1.    Aid adjustment.  Beginning in fiscal 
 year 1998 and each year thereafter, the commissioner of 
 children, families, and learning shall adjust state aid payments 
 to school operating funds for independent school district No. 
 625, independent school district No. 709, and special school 
 district No. 1 by the net amount of clauses (1) and (2) and for 
 all other districts, including charter schools, but excluding 
 any education organizations that are prohibited from receiving 
 direct state aids under section 124.193 or 124.32, subdivision 
 12, by the net amount of clauses (1), (2), and (3): 

    (1) a decrease equal to each district's share of the fiscal 
 year 1997 adjustment effected under Minnesota Statutes 1996, 
 section 124.2139; 

    (2) an increase equal to one percent of the salaries paid 
 to members of the general plan of the public employees 
 retirement association in fiscal year 1997, multiplied by 0.35 
 for fiscal year 1998 and 0.70 each year thereafter; 

    (3) a decrease equal to 2.34 percent of the salaries paid 
 to members of the teachers retirement association in fiscal year 
 1997.  

    Subd. 2.    Appropriation and estimated net savings.  
 The amounts necessary to pay any positive net adjustments under 
 this section to any school district are appropriated annually 
 from the general fund to the commissioner of children, families, 
 and learning.  The estimated net general fund savings under this 
 section is $29,819,000 in fiscal year 1998, and $26,997,000 in 
 each fiscal year thereafter. 

    Subd. 3.    Limits on adjustments and potential 
 reductions.  Increases to any school districts under 
 subdivision 1, clause (2), and decreases under subdivision 1, 
 clauses (1) and (3), are limited to the fiscal year 1999 
 amounts.  The commissioner of children, families, and learning 
 may permanently reduce the adjustments to school districts under 
 subdivision 1, clauses (1) and (2), in the same manner as 
 prescribed for nonschool jurisdictions under section 273.1385, 
 subdivision 2.  The commissioner may, from time to time, require 
 that the most recent fiscal year payroll information be 
 certified by the executive director of the teachers retirement 
 association.  For any school district where the newly certified 
 teachers retirement association payroll is significantly lower 
 than the fiscal 1997 amount as determined by the commissioner, 
 the commissioner shall recalculate the lower reduction under 
 subdivision 1, clause (3), and shall permanently reduce the 
 adjustment amount in subsequent years. 

    Subd. 4.    Effect of reorganizations.  The commissioner 
 of children, families, and learning shall reapportion the aid 
 adjustments to school districts under this section to account 
 for significant changes in boundaries or consolidations, as 
 determined by the commissioner.  If a school district is 
 dissolved, or a school district function thereof is assumed by 
 either the state or a nonpublic organization, adjustments for 
 all or the appropriate fraction of the total payroll under this 
 section must terminate. 

    Subd. 5.    Adjustment termination.  All adjustments 
 under this section terminate on June 30, 2020. 

    HIST: 1997 c 233 art 1 s 14 

    124.215 Subdivision 1. Repealed, Ex1971 c 31 art 
 20 s 23; 1983 c 260 s 68 

    Subd. 2. Repealed, Ex1971 c 31 art 20 s 23; 1983 c 
 260 s 68 

    Subd. 2a. Repealed, 1977 c 447 art 6 s 13; 1983 c 
 260 s 68 

    Subd. 3. Repealed, 1977 c 447 art 6 s 13; 1983 c 
 260 s 68 

    Subd. 4. Repealed, 1977 c 447 art 6 s 13; 1983 c 
 260 s 68 

    Subd. 5. Repealed, 1977 c 447 art 6 s 13; 1983 c 
 260 s 68 

    Subd. 6. Repealed, 1983 c 260 s 68 

    Subd. 7. Repealed, 1977 c 447 art 6 s 13; 1983 c 
 260 s 68 

    Subd. 8. Repealed, 1977 c 447 art 6 s 13; 1983 c 
 260 s 68 

  124.2161 Repealed, 1987 c 398 art 1 s 27 subd 3 

  124.2162 Repealed, 1987 c 398 art 1 s 27 subd 3 

  124.2163 Repealed, 1987 c 398 art 1 s 27 subd 3 

  124.217 Repealed, 1989 c 329 art 1 s 18 

    124.22 Subdivision 1.  Repealed, 1973 c 683 s 30 

    Subd. 2.  Repealed, 1965 c 805 s 3 

    Subd. 3.  Repealed, 1973 c 683 s 30 

    Subd. 4.  Repealed, 1973 c 683 s 30 

    Subd. 5.  Repealed, 1965 c 805 s 3 

    Subd. 6.  Repealed, 1973 c 683 s 30 

  124.221 Repealed, 1977 c 447 art 6 s 13 

    124.222 Subdivision 1.  Repealed, 1975 c 432 s 97 

    Subd. 1a.  Repealed, 1979 c 334 art 2 s 14 

    Subd. 1b.  Repealed, 1979 c 334 art 2 s 14 

    Subd. 2.  Repealed, 1975 c 432 s 97 

    Subd. 2a.  Repealed, 1979 c 334 art 2 s 14 

    Subd. 2b. Repealed, 1979 c 334 art 2 s 14 

    Subd. 3.  Repealed, 1980 c 609 art 2 s 7 

    Subd. 4.  Repealed, 1977 c 447 art 2 s 9 

    Subd. 5.  Repealed, 1977 c 447 art 2 s 9 

    Subd. 6.  Repealed, 1979 c 334 art 2 s 14 

  124.223 Repealed, 1Sp1997 c 4 art 1 s 63 

  124.224 Expired 

     124.225 Transportation aid entitlement. 

    Subdivision 1.    Definitions.  For purposes of this 
 section and section 124.3201, the terms defined in this 
 subdivision have the meanings given to them. 

    (a) "Actual expenditure per pupil transported in the 
 regular and excess transportation categories" means the quotient 
 obtained by dividing: 

    (1) the sum of: 

    (i) all expenditures for transportation in the regular 
 category, as defined in paragraph (b), clause (1), and the 
 excess category, as defined in paragraph (b), clause (2), plus 

    (ii) an amount equal to one year's depreciation on the 
 district's school bus fleet and mobile units computed on a 
 straight line basis at the rate of 15 percent per year for 
 districts operating a program under section 121.585 for grades 1 
 to 12 for all students in the district and 12-1/2 percent per 
 year for other districts of the cost of the fleet, plus 

    (iii) an amount equal to one year's depreciation on the 
 district's type three school buses, as defined in section 
 169.01, subdivision 6, clause (5), which must be used a majority 
 of the time for pupil transportation purposes, computed on a 
 straight line basis at the rate of 20 percent per year of the 
 cost of the type three school buses by: 

    (2) the number of pupils eligible for transportation in the 
 regular category, as defined in paragraph (b), clause (1), and 
 the excess category, as defined in paragraph (b), clause (2).  

    (b) "Transportation category" means a category of 
 transportation service provided to pupils as follows:  

    (1) Regular transportation is:  

    (i) transportation to and from school during the regular 
 school year for resident elementary pupils residing one mile or 
 more from the public or nonpublic school they attend, and 
 resident secondary pupils residing two miles or more from the 
 public or nonpublic school they attend, excluding desegregation 
 transportation and noon kindergarten transportation; but with 
 respect to transportation of pupils to and from nonpublic 
 schools, only to the extent permitted by sections 123.76 to 
 123.79; 

    (ii) transportation of resident pupils to and from language 
 immersion programs; 

    (iii) transportation of a pupil who is a custodial parent 
 and that pupil's child between the pupil's home and the child 
 care provider and between the provider and the school, if the 
 home and provider are within the attendance area of the school; 
 and 

    (iv) transportation to and from or board and lodging in 
 another district, of resident pupils of a district without a 
 secondary school. 

    For the purposes of this paragraph, a district may 
 designate a licensed day care facility, respite care facility, 
 the residence of a relative, or the residence of a person chosen 
 by the pupil's parent or guardian as the home of a pupil for 
 part or all of the day, if requested by the pupil's parent or 
 guardian, and if that facility or residence is within the 
 attendance area of the school the pupil attends. 

    (2) Excess transportation is transportation to and from 
 school during the regular school year for secondary pupils 
 residing at least one mile but less than two miles from the 
 public or nonpublic school they attend, and transportation to 
 and from school for pupils residing less than one mile from 
 school who are transported because of extraordinary traffic, 
 drug, or crime hazards. 

    (3) Desegregation transportation is transportation within 
 and outside of the district during the regular school year of 
 pupils to and from schools located outside their normal 
 attendance areas under a plan for desegregation mandated by the 
 state board or under court order.  

    (4) "Transportation services for pupils with disabilities" 
 is: 

    (i) transportation of pupils with disabilities who cannot 
 be transported on a regular school bus between home or a respite 
 care facility and school; 

    (ii) necessary transportation of pupils with disabilities 
 from home or from school to other buildings, including centers 
 such as developmental achievement centers, hospitals, and 
 treatment centers where special instruction or services required 
 by sections 120.17 and 120.1701 are provided, within or outside 
 the district where services are provided; 

    (iii) necessary transportation for resident pupils with 
 disabilities required by sections 120.17, subdivision 4a, and 
 120.1701; 

    (iv) board and lodging for pupils with disabilities in a 
 district maintaining special classes; 

    (v) transportation from one educational facility to another 
 within the district for resident pupils enrolled on a 
 shared-time basis in educational programs, and necessary 
 transportation required by sections 120.17, subdivision 9, and 
 120.1701, for resident pupils with disabilities who are provided 
 special instruction and services on a shared-time basis; 

    (vi) transportation for resident pupils with disabilities 
 to and from board and lodging facilities when the pupil is 
 boarded and lodged for educational purposes; and 

    (vii) services described in clauses (i) to (vi), when 
 provided for pupils with disabilities in conjunction with a 
 summer instructional program that relates to the pupil's 
 individual education plan or in conjunction with a learning year 
 program established under section 121.585. 

    (5) "Nonpublic nonregular transportation" is: 

    (i) transportation from one educational facility to another 
 within the district for resident pupils enrolled on a 
 shared-time basis in educational programs, excluding 
 transportation for nonpublic pupils with disabilities under 
 clause (4); 

    (ii) transportation within district boundaries between a 
 nonpublic school and a public school or a neutral site for 
 nonpublic school pupils who are provided pupil support services 
 pursuant to section 123.935; and 

    (iii) late transportation home from school or between 
 schools within a district for nonpublic school pupils involved 
 in after-school activities. 

    (c) "Mobile unit" means a vehicle or trailer designed to 
 provide facilities for educational programs and services, 
 including diagnostic testing, guidance and counseling services, 
 and health services.  A mobile unit located off nonpublic school 
 premises is a neutral site as defined in section 123.932, 
 subdivision 9. 

    Subd. 1a. Repealed, 1987 c 398 art 2 s 14 

    Subd. 2. Repealed, 1981 c 358 art II s 14 

    Subd. 3. Repealed, 1991 c 265 art 2 s 20 

    Subd. 3a. Repealed, 1Sp1997 c 4 art 1 s 63 

    Subd. 4. Repealed, 1981 c 358 art 2 s 14 

    Subd. 4a. Repealed, 1Sp1985 c 12 art 2 s 16 

    Subd. 4b. Repealed, 1991 c 265 art 2 s 20 

    Subd. 5. Repealed, 1981 c 358 art 2 s 14 

    Subd. 6.  Repealed, 1982 c 548 art 2 s 3 

    Subd. 7. Repealed, 1981 c 358 art 2 s 14 

    Subd. 7a. Repealed, 1Sp1997 c 4 art 1 s 63 

    Subd. 7b. Repealed, 1Sp1997 c 4 art 1 s 63 

    Subd. 7c. Repealed, 1991 c 265 art 2 s 20 

    Subd. 7d. Repealed, 1Sp1997 c 4 art 1 s 63 

    Subd. 7e. Repealed, 1Sp1997 c 4 art 1 s 63 

    Subd. 7f.    Reserved revenue for transportation safety. 
  A district shall reserve an amount equal to the greater of 
 $500 or $1.50 times the number of fund balance pupil units, for 
 that school year to provide student transportation safety 
 programs under section 123.799.  This revenue may only be used 
 if the district complies with the reporting requirements of 
 section 123.7991, 123.805, 169.452, 169.4582, or 171.321, 
 subdivision 5. 

    Subd. 8. Repealed, 1981 c 358 art 2 s 14 

    Subd. 8a. Repealed, 1Sp1997 c 4 art 1 s 63 

    Subd. 8b. Repealed, 1991 c 265 art 2 s 20 

    Subd. 8c. Repealed, 1Sp1985 c 12 art 2 s 16 

    Subd. 8d. Repealed, 1Sp1985 c 12 art 2 s 16 

    Subd. 8e. Repealed, 1Sp1985 c 12 art 2 s 16 

    Subd. 8f. Repealed, 1Sp1985 c 12 art 2 s 16 

    Subd. 8g. Repealed, 1Sp1985 c 12 art 2 s 16 

    Subd. 8h. Repealed, 1Sp1985 c 12 art 2 s 16 

    Subd. 8i. Repealed, 1991 c 265 art 2 s 20 

    Subd. 8j. Repealed, 1991 c 265 art 2 s 20 

    Subd. 8k. Repealed, 1Sp1997 c 4 art 1 s 63 

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

    Subd. 8m.    Transportation safety aid.  A district's 
 transportation safety aid equals the district's reserved revenue 
 for transportation safety under subdivision 7f for that school 
 year.  Failure of a school district to comply with the reporting 
 requirements of section 123.7991, 123.805, 169.452, 169.4582, or 
 171.321, subdivision 5, may result in a withholding of that 
 district's transportation safety aid for that school year. 

    Subd. 9.    District reports.  Each district shall 
 report data to the department as required by the department to 
 account for transportation expenditures.  

    Subd. 10. Repealed, 1Sp1997 c 4 art 1 s 63 

    Subd. 11. Repealed, 1983 c 314 art 2 s 2 

    Subd. 12. Repealed, 1984 c 463 art 9 s 13 

    Subd. 13.    Targeted needs transportation revenue.  A 
 district's targeted needs transportation revenue for the 
 1996-1997 and 1997-1998 school years equals the sum of the 
 special programs transportation revenue according to subdivision 
 14, the integration transportation revenue according to 
 subdivision 15, and the nonpublic pupil transportation aid 
 according to subdivision 16. 

    Subd. 14.    Special programs transportation revenue.  A 
 district's special programs transportation revenue for the 
 1996-1997 and 1997-1998 school years equals the sum of: 

    (a) the district's actual cost in the base year for 
 transportation services for children with disabilities under 
 subdivision 1, paragraph (b), clause (4), times the ratio of the 
 district's average daily membership for the current school year 
 to the district's average daily membership for the base year; 
 plus 

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

    (1) the district's actual cost in the current year for 
 transportation services for children with disabilities under 
 subdivision 1, paragraph (b), clause (4); and 

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

    Subd. 15.    Integration transportation revenue.  A 
 district's integration transportation revenue for the 1996-1997 
 and 1997-1998 school years equals the following amounts: 

    (a) for independent school district No. 709, Duluth, $4 
 times the actual pupil units for the school year; 

    (b) for independent school district No. 625, St. Paul, $73 
 times the actual pupil units for the school year; and 

    (c) for special school district No. 1, Minneapolis, $158 
 times the actual pupil units for the school year. 

    Subd. 16.    Nonpublic pupil transportation aid.  (a) A 
 district's nonpublic pupil transportation aid for the 1996-1997 
 and later school years for transportation services for nonpublic 
 school pupils according to sections 123.39, 123.76 to 123.78, 
 and this section, equals the sum of the amounts computed in 
 paragraphs (b) and (c).  This aid does not limit the obligation 
 to transport pupils under sections 123.76 to 123.79. 

    (b) For regular and excess transportation according to 
 subdivision 1, paragraph (b), clauses (1) and (2), an amount 
 equal to the product of: 

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

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

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

    (c) For nonpublic nonregular transportation according to 
 subdivision 1, paragraph (b), clause (5), an amount equal to the 
 product of: 

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

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

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

    Subd. 17.    Targeted needs transportation aid.  (a) For 
 fiscal years 1997 and 1998, a district's targeted needs 
 transportation aid is the difference between its targeted needs 
 transportation revenue under subdivision 13 and its targeted 
 needs transportation levy under section 124.226, subdivision 10. 

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

    HIST: 1979 c 334 art 2 s 8; 1980 c 609 art 2 s 2; 1981 c 356 s 
 167; 1981 c 358 art 2 s 3-13; 1Sp1981 c 2 s 8; 3Sp1981 c 2 art 2 
 s 9; 1982 c 548 art 2 s 3; 1983 c 314 art 2 s 2; 1Sp1985 c 12 
 art 2 s 3-10; 1Sp1986 c 1 art 9 s 7,8; 1987 c 398 art 2 s 2-7; 
 art 7 s 42; 1988 c 486 s 35,36; 1988 c 718 art 2 s 5; art 7 s 
 29; 1989 c 222 s 14-25; 1989 c 329 art 2 s 3,9; 1990 c 562 art 2 
 s 5-7; 1991 c 130 s 37; 1991 c 199 art 2 s 10; 1991 c 265 art 2 
 s 6-14; art 3 s 38; 1991 c 277 s 17; 1992 c 499 art 12 s 29; 
 1993 c 224 art 2 s 5-9; art 7 s 10,11; 1994 c 647 art 2 s 2; art 
 3 s 24; art 12 s 8,9; art 13 s 7; 1Sp1995 c 3 art 2 s 11-24; art 
 4 s 30; art 16 s 13; 1996 c 412 art 2 s 9-12; 1Sp1997 c 4 art 1 
 s 19-24 

     124.226 Transportation levies. 

    Subdivision 1.    Basic transportation.  Each year, a 
 school district may levy for school transportation services an 
 amount not to exceed the amount raised by the basic 
 transportation tax rate times the adjusted net tax capacity of 
 the district for the preceding year.  The commissioner of 
 children, families, and learning shall establish the basic 
 transportation tax rate by July 1 of each year for levies 
 payable in the following year.  The basic transportation tax 
 rate shall be a rate, rounded up to the nearest hundredth of a 
 percent, that, when applied to the adjusted net tax capacity of 
 taxable property for all districts, raises the amount specified 
 in this subdivision.  The basic transportation tax rate for 
 transportation shall be the rate that raises $64,300,000 for 
 fiscal year 1993 and $68,000,000 for fiscal year 1994 and 
 subsequent fiscal years.  The basic transportation tax rate 
 certified by the commissioner of children, families, and 
 learning must not be changed due to changes or corrections made 
 to a district's adjusted net tax capacity after the tax rate has 
 been certified. 

    Subd. 2.    Extra transportation.  When the 
 transportation patterns of a district change as a result of 
 leasing a school in another district, the district may, upon 
 approval of the commissioner, levy for any increase in 
 transportation cost above the cost that would occur without the 
 leasing of the school.  The commissioner shall approve a 
 specific dollar amount which may be levied because of these 
 increased costs.  The levy authorized by this subdivision may be 
 computed on the basis of estimated increased costs.  In the 
 first year a district makes the levy authorized by this 
 subdivision, the commissioner may authorize a levy sufficient to 
 pay for estimated increased costs resulting from leasing for two 
 years.  The amount provided by this levy shall not be included 
 in the computation of the actual net operating cost per pupil 
 transported in future years. 

    Subd. 3.    Off-formula adjustment.  In a district if 
 the basic transportation levy under subdivision 1 attributable 
 to that fiscal year is more than the difference between (1) the 
 district's transportation revenue under section 124.225, 
 subdivision 7d, and (2) the sum of the district's maximum 
 nonregular levy under subdivision 4 and the district's 
 contracted services aid reduction under section 124.225, 
 subdivision 8k, and the amount of any reduction due to 
 insufficient appropriation under section 124.225, subdivision 
 8a, the district's transportation levy in each fiscal year must 
 be reduced by the difference between the amount of the excess 
 and the amount of the aid reduction for the same fiscal year 
 according to subdivision 3a. 

    Subd. 3a.    Transportation levy equity.  (a) If a 
 district's basic transportation levy for a fiscal year is 
 adjusted according to subdivision 3, an amount must be deducted 
 from the state payments that are authorized in chapter 273 and 
 that are receivable for the same fiscal year.  The amount of the 
 deduction equals the difference between:  

    (1) the district's transportation revenue under section 
 124.225, subdivision 7d; and 

    (2) the sum of the district's maximum basic transportation 
 levy under subdivision 1, the district's maximum nonregular levy 
 under subdivision 4, the district's contracted services aid 
 reduction under section 124.225, subdivision 8k, and the amount 
 of any reduction due to insufficient appropriation under section 
 124.225, subdivision 8a. 

    (b) Notwithstanding paragraph (a), for fiscal year 1995, 
 the amount of the deduction is one-fourth of the difference 
 between clauses (1) and (2); for fiscal year 1996, the amount of 
 the deduction is one-half of the difference between clauses (1) 
 and (2); and for fiscal year 1997, the amount of the deduction 
 is three-fourths of the difference between clauses (1) and (2).  

    (c) The amount of the deduction in any fiscal year must not 
 exceed the amount of state payments that are authorized in 
 chapter 273 and that are receivable for the same fiscal year in 
 the district's transportation fund. 

    Subd. 4.    Nonregular transportation.  A school 
 district may also make a levy for unreimbursed nonregular 
 transportation costs pursuant to this subdivision.  

    For the 1995-1996 school year, the amount of the levy shall 
 be the result of the following computation: 

    (1) multiply 

    (i) the amount of the district's nonregular transportation 
 revenue under section 124.225, subdivision 7d, that is more than 
 the product of $65 times the district's average daily 
 membership, by 

    (ii) 50 percent; 

    (2) subtract the result in clause (1) from the district's 
 total nonregular transportation revenue; 

    (3) multiply the result in clause (2) by the lesser of one 
 or the ratio of 

    (i) the quotient derived by dividing the adjusted net tax 
 capacity of the district for the year before the year the levy 
 is certified by the average daily membership in the district for 
 the school year to which the levy is attributable, to 

    (ii) $8,000. 

    Subd. 5.    Excess transportation.  A school district 
 may make a levy for excess transportation costs according to 
 this subdivision.  The amount of the levy shall be the result of 
 the following computation: 

    (a) Multiply the lesser of (1) the regular transportation 
 allowance for the fiscal year to which the levy is attributable, 
 or (2) the base cost for the fiscal year to which the levy is 
 attributable, by the number of weighted FTE pupils transported 
 in the excess category in the district in the current school 
 year.  

    (b) Add to the result in paragraph (a) the actual cost in 
 the fiscal year to which the levy is attributable of other 
 related services that are necessary because of extraordinary 
 traffic, drug, or crime hazards. 

    Subd. 6.    Bus purchases.  A school district may levy 
 the amount necessary to eliminate any projected deficit in the 
 reserved fund balance account for bus purchases in its 
 transportation fund as of June 30 of the school year beginning 
 in the calendar year following the calendar year the levy is 
 certified. 

    Subd. 7.    Contracted services.  A school district may 
 levy an amount equal to the aid subtraction computed according 
 to section 124.225, subdivision 8k, for the school year 
 beginning in the year the levy is certified. 

    Subd. 8.    Post-secondary agreements.  A school 
 district may levy an amount equal to the actual cost of 
 transportation of secondary pupils enrolled in courses provided 
 under an agreement authorized by section 123.33, subdivision 7, 
 to and from a pupil's home and a secondary school or a 
 post-secondary institution, between a secondary school and a 
 post-secondary institution, or between post-secondary 
 institutions. 

    Subd. 9.    Late activity buses.  (a) For taxes payable 
 in 1996, a school district may levy an amount equal to the 
 lesser of: 

    (1) the actual cost of late transportation home from 
 school, between schools within a district, or between schools in 
 one or more districts that have an agreement under sections 
 122.241 to 122.248, 122.535, 122.541, or 124.494, for pupils 
 involved in after school activities for the school year 
 beginning in the year the levy is certified; or 

    (2) two percent of the sum of the district's regular 
 transportation revenue and the district's nonregular 
 transportation revenue for that school year according to section 
 124.225, subdivision 7d. 

    (b) A district that levies under this section must provide 
 late transportation from school for students participating in 
 any academic-related activities provided by the district if 
 transportation is provided for students participating in 
 athletic activities. 

    (c) Notwithstanding section 121.904, 50 percent of the levy 
 certified for taxes payable in 1994, and for each year 
 thereafter the entire amount of this levy, shall be recognized 
 as revenue for the fiscal year in which the levy is certified. 

    Subd. 10.    Targeted needs transportation levy.  A 
 school district may make a levy for targeted needs 
 transportation costs according to this subdivision.  The amount 
 of the levy shall be the result of the following computation: 

    (1) For fiscal years 1997 and 1998, targeted needs 
 transportation levy equalization revenue equals 28 percent of 
 the sum of the district's special programs transportation 
 revenue under section 124.225, subdivision 14, and the 
 district's integration transportation revenue under section 
 124.225, subdivision 15. 

    (2) The targeted needs transportation levy equals the 
 result in clause (1) times the lesser of one or the ratio of (i) 
 the quotient derived by dividing the adjusted net tax capacity 
 of the district for the year before the year the levy is 
 certified by the actual pupil units in the district for the 
 school year to which the levy is attributable, to (ii) $3,540. 

    HIST: Ex1971 c 31 art 20 s 8; 1973 c 683 s 19; 1974 c 521 s 
 30; 1975 c 432 s 75; 1976 c 271 s 82; 1977 c 447 art 2 s 8; 1980 
 c 609 art 2 s 3,4; 3Sp1981 c 2 art 2 s 10; 1982 c 548 art 2 s 
 5,6; 1983 c 314 art 2 s 3-6; 1Sp1985 c 12 art 2 s 11,12; 1986 c 
 444; 1987 c 398 art 2 s 8-12; 1988 c 486 s 84; 1988 c 718 art 2 
 s 6; 1988 c 719 art 5 s 84; 1989 c 222 s 32-34; 1989 c 329 art 2 
 s 4-7,9; art 13 s 20; 1Sp1989 c 1 art 2 s 11; art 6 s 9; art 9 s 
 44,45; 1990 c 562 art 2 s 8,9; art 10 s 6; 1991 c 265 art 2 s 
 15-17; 1992 c 499 art 2 s 2; art 12 s 29; 1992 c 511 art 4 s 12; 
 1993 c 224 art 2 s 10-12; 1994 c 647 art 2 s 3,4; 1Sp1995 c 3 
 art 2 s 25-28; art 16 s 13; 1Sp1997 c 4 art 1 s 25 

*   NOTE:  This section is repealed by Laws 1997, First Special 
*Session chapter 4, article 1, section 63, effective for revenue 
*for fiscal year 1999.

     124.227 Interdistrict desegregation or integration 
  transportation grants. 

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

    (b) A district in the metropolitan area may apply to the 
 commissioner for a grant to cover the costs of transporting 
 pupils who are enrolled under section 120.062 if the enrollment 
 of the student in the nonresident district contributes to 
 desegregation or integration purposes.  The commissioner must 
 develop the form and manner of applications, the criteria to be 
 used to determine when transportation is for desegregation or 
 integration purposes, and the accounting procedure to be used to 
 determine excess costs.  In determining the grant amount, the 
 commissioner must consider other revenue received by the 
 district for transportation for desegregation or integration 
 purposes. 

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

    HIST: 1Sp1995 c 3 art 2 s 50; art 16 s 13; 1996 c 412 art 2 s 
 13 

  124.23 Repealed, 1977 c 403 s 13; 1977 c 447 art 6 s 13 

     124.239 Alternative facilities bonding and levy program. 

    Subdivision 1.    To qualify.  An independent or special 
 school district qualifies to participate in the alternative 
 facilities bonding and levy program if the district has: 

    (1) more than 66 students per grade; 

    (2) over 1,850,000 square feet of space; 

    (3) average age of building space is 20 years or older; 

    (4) insufficient funds from projected health and safety 
 revenue and capital facilities revenue to meet the requirements 
 for deferred maintenance, to make accessibility improvements, or 
 to make fire, safety, or health repairs; and 

    (5) a ten-year facility plan approved by the commissioner 
 according to subdivision 2. 

    Subd. 2.    Ten-year plan.  (a) A qualifying district 
 must have a ten-year facility plan approved by the commissioner 
 that includes an inventory of projects and costs that would be 
 eligible for: 

    (1) health and safety revenue; 

    (2) disabled access levy; and 

    (3) deferred capital expenditures and maintenance projects 
 necessary to prevent further erosion of facilities. 

    (b) The school district must: 

    (1) annually update the plan; 

    (2) biennially submit a facility maintenance plan; and 

    (3) indicate whether the district will issue bonds to 
 finance the plan or levy for the costs. 

    Subd. 3.    Bond authorization.  A school district, upon 
 approval of its school board and the commissioner, may issue 
 general obligation bonds under this section to finance approved 
 facilities plans.  Chapter 475, except sections 475.58 and 
 475.59, must be complied with.  The district may levy under 
 subdivision 5 for the debt service revenue.  The authority to 
 issue bonds under this section is in addition to any bonding 
 authority authorized by this chapter, or other law.  The amount 
 of bonding authority authorized under this section must be 
 disregarded in calculating the bonding or net debt limits of 
 this chapter, or any other law other than section 475.53, 
 subdivision 4. 

    Subd. 4.    Levy prohibited for capital projects.  A 
 district that participates in the alternative facilities bonding 
 and levy program is not eligible to levy and cannot receive aid 
 under sections 124.83 and 124.84 for any capital projects funded 
 under this section.  A district may levy and receive aid for 
 health and safety environmental management costs and health and 
 safety regulatory, hazard assessment, record keeping, and 
 maintenance programs as defined in section 124.494, subdivision 
 2, and approved by the commissioner. 

    Subd. 5.    Levy authorized.  A district, after local 
 board approval, may levy for costs related to an approved 
 facility plan as follows:  

    (a) if the district has indicated to the commissioner that 
 bonds will be issued, the district may levy for the principal 
 and interest payments on outstanding bonds issued according to 
 subdivision 3 after reduction for any alternative facilities aid 
 receivable under subdivision 5a; or 

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

    Subd. 5a.    Alternative facilities aid.  A district's 
 alternative facilities aid is the amount equal to the district's 
 annual debt service costs, provided that the amount does not 
 exceed the amount certified to be levied for those purposes for 
 taxes payable in 1997. 

    Subd. 5b.    Alternative facilities appropriation.  (a) 
 An amount not to exceed $17,000,000 is appropriated from the 
 general fund to the commissioner of children, families, and 
 learning for fiscal year 2000 and each year thereafter for 
 payment of alternative facilities aid under subdivision 5a.  The 
 2000 appropriation includes $1,700,000 for 1999 and $15,300,000 
 for 2000. 

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

    Subd. 6.    Separate account.  A district must establish 
 a separate account under the uniform financial accounting and 
 reporting standards (UFARS) for this program.  If the district's 
 levy exceeds the necessary interest and principal payments and 
 noncapital health and safety costs, the district must reserve 
 the revenue to replace future bonding authority, prepay bonds 
 authorized under this program, or make payments on principal and 
 interest. 

    HIST: 1993 c 224 art 5 s 3; 1996 c 412 art 5 s 1; 1997 c 231 
 art 1 s 1-3; 1Sp1997 c 5 s 38-41 

*   NOTE:  The amendment to subdivision 4 by Laws 1996, chapter 
*412, article 5, section 1, is effective for revenue for fiscal 
*year 1998 and thereafter.  Laws 1996, chapter 412, article 5, 
*section 29.

  124.24 Repealed, 1983 c 314 art 6 s 33 

  124.241 Repealed, 1979 c 334 art 6 s 34 

     124.242 Building bonds for calamities. 

    Subdivision 1.    Bonds.  When a building owned by a 
 school district is substantially damaged by an act of God or 
 other means beyond the control of the district, the district may 
 issue general obligation bonds without an election to provide 
 money immediately to carry out its adopted health and safety 
 program.  Each year the district must pledge an attributable 
 share of its health and safety revenue to the repayment of 
 principal and interest on the bonds.  The pledged revenue shall 
 be transferred to the debt redemption fund of the district.  The 
 district shall submit to the department of children, families, 
 and learning the repayment schedule for any bonds issued under 
 this section.  The district shall deposit in the debt redemption 
 fund all proceeds received for specific costs for which the 
 bonds were issued, including but not limited to:  

    (1) insurance proceeds; 

    (2) restitution proceeds; and 

    (3) proceeds of litigation or settlement of a lawsuit. 

    Before bonds are issued, the district must submit a 
 combined application to the commissioner of children, families, 
 and learning for health and safety revenue, according to section 
 124.83, and requesting review and comment, according to section 
 121.15, subdivisions 6, 7, 8, and 9.  The commissioner shall 
 complete all procedures concerning the combined application 
 within 20 days of receiving the application.  The publication 
 provisions of section 121.15, subdivision 9, do not apply to 
 bonds issued under this section.  

    Subd. 2.    Health and safety revenue.  For any fiscal 
 year where the total amount of health and safety revenue is 
 limited, the commissioner of children, families, and learning 
 shall award highest priority to health and safety revenue 
 pledged to repay building bonds issued under subdivision 1. 

    HIST: 1989 c 70 s 1; 1994 c 647 art 14 s 1; 1Sp1995 c 3 art 16 
 s 13 

    124.243 Subdivision 1. MS 1994 Repealed, 1Sp1995 c 
 3 art 1 s 63 subd 2; 1996 c 412 art 1 s 30 

    Subd. 2.  MS 1995 Supp Repealed, 1Sp1995 c 3 art 1 
 s 63 subd 2; 1996 c 412 art 1 s 30 

    Subd. 2a.  MS 1994 Repealed, 1Sp1995 c 3 art 1 s 
 63 subd 2; 1996 c 412 art 1 s 30 

    Subd. 3.  MS 1994 Repealed, 1Sp1995 c 3 art 1 s 63 
 subd 2; 1996 c 412 art 1 s 30 

    Subd. 4.  MS 1988 Repealed, 1989 c 329 art 5 s 22 

    Subd. 5.  MS 1994 Repealed, 1Sp1995 c 3 art 1 s 63 
 subd 2; 1996 c 412 art 1 s 30 

    Subd. 6.  MS 1994 Repealed, 1Sp1995 c 3 art 1 s 63 
 subd 2; 1996 c 412 art 1 s 30 

    Subd. 7.  MS 1994 Repealed, 1Sp1995 c 3 art 1 s 63 
 subd 2; 1996 c 412 art 1 s 30 

    Subd. 8.  MS 1994 Repealed, 1Sp1995 c 3 art 1 s 63 
 subd 2; 1996 c 412 art 1 s 30 

    Subd. 9.  MS 1994 Repealed, 1Sp1995 c 3 art 1 s 63 
 subd 2 

    Subd. 10. MS 1994 Repealed, 1Sp1995 c 3 art 1 s 63 
 subd 2 

    Subd. 11. MS 1994 Repealed, 1Sp1995 c 3 art 1 s 63 
 subd 2 

    Subd. 12. MS 1995 Supp Repealed, 1Sp1995 c 3 art 1 
 s 63 subd 2 

    124.244 Subdivision 1.  MS 1995 Supp Repealed, 
 1Sp1995 c 3 art 1 s 63 subd 2; 1996 c 412 art 1 s 30 

    Subd. 2.  MS 1994 Repealed, 1Sp1995 c 3 art 1 s 63 
 subd 2; 1996 c 412 art 1 s 30 

    Subd. 3.  MS 1994 Repealed, 1Sp1995 c 3 art 1 s 63 
 subd 2; 1996 c 412 art 1 s 30 

    Subd. 4.  MS 1995 Supp Repealed, 1Sp1995 c 3 art 1 
 s 63 subd 2; 1996 c 412 art 1 s 30 

  124.2442 Repealed, 1997 c 7 art 1 s 50 

     124.2445 Purchase of certain equipment. 

    The board of a school district may issue general obligation 
 certificates of indebtedness or capital notes subject to the 
 school district debt limits to purchase:  (a) vehicles, 
 computers, telephone systems, cable equipment, photocopy and 
 office equipment, technological equipment for instruction, and 
 other capital equipment having an expected useful life at least 
 as long as the terms of the certificates or notes; and (b) 
 computer hardware and software, without regard to its expected 
 useful life, whether bundled with machinery or equipment or 
 unbundled, together with application development services and 
 training related to the use of the computer.  The certificates 
 or notes must be payable in not more than five years and must be 
 issued on the terms and in the manner determined by the board.  
 The certificates or notes may be issued by resolution and 
 without the requirement for an election.  The certificates or 
 notes are general obligation bonds for purposes of section 
 124.755.  A tax levy must be made for the payment of the 
 principal and interest on the certificates or notes, in 
 accordance with section 475.61, as in the case of bonds.  The 
 sum of the tax levies under this section and section 124.2455 
 for each year must not exceed the amount of the district's total 
 operating capital revenue for the year the initial debt service 
 levies are certified.  The district's general education levy for 
 each year must be reduced by the sum of (1) the amount of the 
 tax levies for debt service certified for each year for payment 
 of the principal and interest on the certificates or notes as 
 required by section 475.61, and (2) any excess amount in the 
 debt redemption fund used to retire certificates or notes issued 
 after April 1, 1997, other than amounts used to pay capitalized 
 interest.  A district using an excess amount in the debt 
 redemption fund to retire the certificates or notes shall report 
 the amount used for this purpose to the commissioner by July 15 
 of the following fiscal year.  A district having an outstanding 
 capital loan under section 124.431 or an outstanding debt 
 service loan under section 124.42 must not use an excess amount 
 in the debt redemption fund to retire the certificates or notes. 

    HIST: 1988 c 718 art 8 s 6; 1989 c 222 s 26; 1Sp1995 c 3 art 5 
 s 5; 1996 c 412 art 5 s 3; 1Sp1997 c 4 art 4 s 9 

  124.245 Repealed, 1997 c 7 art 1 s 51 

     124.2455 Bonds for certain capital facilities. 

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

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

    (2) the cost of energy modifications; 

    (3) improving handicap accessibility to school buildings; 
 and 

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

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

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

    (d) The bonds must be paid off within ten years of 
 issuance.  The bonds must be issued in compliance with chapter 
 475, except as otherwise provided in this section.  A tax levy 
 must be made for the payment of principal and interest on the 
 bonds in accordance with section 475.61.  The sum of the tax 
 levies under this section and section 124.2455 for each year 
 must not exceed the amount of the district's total operating 
 capital revenue for the year the initial debt service levies are 
 certified.  The district's general education levy for each year 
 must be reduced by the sum of (1) the amount of the tax levies 
 for debt service certified for each year for payment of the 
 principal and interest on the bonds, and (2) any excess amount 
 in the debt redemption fund used to retire bonds issued after 
 April 1, 1997, other than amounts used to pay capitalized 
 interest.  A district using an excess amount in the debt 
 redemption fund to retire the bonds shall report the amount used 
 for this purpose to the commissioner by July 15 of the following 
 fiscal year.  A district having an outstanding capital loan 
 under section 124.431 or an outstanding debt service loan under 
 section 124.42 must not use an excess amount in the debt 
 redemption fund to retire the bonds. 

    (e) Notwithstanding paragraph (d), bonds issued by a 
 district within the first five years following voter approval of 
 a combination according to section 122.243, subdivision 2, must 
 be paid off within 20 years of issuance.  All the other 
 provisions and limitation of paragraph (d) apply. 

    HIST: 1993 c 224 art 5 s 11; 1Sp1995 c 3 art 5 s 6; 1996 c 412 
 art 5 s 4; 1Sp1997 c 4 art 4 s 10 

    124.246 Subdivision 1. Repealed, 1987 c 398 art 1 
 s 27 subd 3 

    Subd. 2. Repealed, 1987 c 398 art 1 s 27 subd 3 

    Subd. 2a. Repealed, 1984 c 463 art 6 s 17; 1987 c 
 398 art 1 s 27 subd 3 

    Subd. 3. Repealed, 1987 c 398 art 1 s 27 subd 3 

    Subd. 4. Repealed, 1987 c 398 art 1 s 27 subd 3 

    Subd. 5. Repealed, 1984 c 463 art 9 s 13; 1987 c 
 398 art 1 s 27 subd 3 

    124.247 Subdivision 1. Repealed, 1987 c 398 art 1 
 s 27 subd 3 

    Subd. 2. Repealed, 1987 c 398 art 1 s 27 subd 3 

    Subd. 3. Repealed, 1987 c 398 art 1 s 27 subd 3 

    Subd. 4. Repealed, 1987 c 398 art 1 s 27 subd 3 

    Subd. 5. Repealed, 1981 c 358 art 7 s 31; 1987 c 
 398 art 1 s 27 subd 3 

    Subd. 6. Repealed, 1Sp1985 c 12 art 6 s 31; art 8 
 s 65; 1987 c 398 art 1 s 27 subd 3 

     124.248 Revenue for a results-oriented charter school. 

    Subdivision 1.    General education revenue.  General 
 education revenue shall be paid to a charter school as though it 
 were a school district.  The general education revenue for each 
 pupil unit is the state average general education revenue per 
 pupil unit minus $170, calculated without compensatory revenue, 
 transportation sparsity revenue, and the transportation portion 
 of the transition revenue adjustment, plus compensatory revenue 
 as though the school were a school district. 

    Subd. 1a.    Transportation revenue.  Transportation 
 revenue shall be paid to a charter school that provides 
 transportation services according to section 120.064, 
 subdivision 15, according to this subdivision.  Transportation 
 aid shall equal transportation revenue.  

    (a) In addition to the revenue under subdivision 1, a 
 charter school providing transportation services shall receive 
 general education aid for each pupil unit equal to the sum of 
 $170, plus the transportation sparsity allowance for the school 
 district in which the charter school is located, plus the 
 transportation transition allowance for the school district in 
 which the charter school is located.  

    (b) For the first two years that a charter school is 
 providing transportation services, the special programs 
 transportation revenue equals the charter school's actual cost 
 in the current school year for transportation services for 
 children with disabilities under section 124.223, subdivisions 
 4, 5, 7, and 8.  For the third year of transportation services 
 and later fiscal years, the special programs transportation 
 revenue shall be computed according to section 124.225, 
 subdivision 14.  

    Subd. 2.    Use of total operating capital revenue.  
 Notwithstanding section 124A.22, subdivision 11, a charter 
 school may use total operating capital revenue for any purpose 
 related to the school. 

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

    Subd. 3.    Special education aid.  Except as provided 
 in subdivision 1a, paragraph (b), special education aid shall be 
 paid to a charter school according to section 124.3201, as 
 though it were a school district.  The charter school may charge 
 tuition to the district of residence as provided in section 
 120.17, subdivision 4.  The charter school shall allocate its 
 special education levy equalization revenue to the resident 
 districts of the pupils attending the charter school.  The 
 districts of residence shall levy as though they were 
 participating in a cooperative, as provided in section 124.321, 
 subdivision 3. 

    Subd. 4.    Other aid, grants, revenue.  (a) A charter 
 school is eligible to receive other aids, grants, and revenue 
 according to chapters 120 to 129, as though it were a school 
 district except that, notwithstanding section 124.195, 
 subdivision 3, the payments shall be of an equal amount on each 
 of the 23 payment dates unless a charter school is in its first 
 year of operation in which case it shall receive on its first 
 payment date ten percent of its cumulative amount guaranteed for 
 the year and 22 payments of an equal amount thereafter the sum 
 of which shall be 90 percent of the cumulative amount 
 guaranteed.  However, it may not receive aid, a grant, or 
 revenue if a levy is required to obtain the money, except as 
 otherwise provided in this section.  Federal aid received by the 
 state must be paid to the school, if it qualifies for the aid as 
 though it were a school district. 

    (b) A charter school may receive money from any source for 
 capital facilities needs.  In the year-end report to the state 
 board of education, the charter school shall report the total 
 amount of funds received from grants and other outside sources. 

    Subd. 5.    Use of state money.  Money received from the 
 state may not be used to purchase land or buildings.  The school 
 may own land and buildings if obtained through nonstate sources. 

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

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

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

    HIST: 1991 c 265 art 9 s 43; 1993 c 224 art 9 s 31; 1994 c 647 
 art 3 s 11; art 9 s 10; 1Sp1995 c 3 art 8 s 4; 1996 c 412 art 7 
 s 5-8; 1997 c 7 art 1 s 52; 1Sp1997 c 4 art 2 s 4; art 5 s 13-15 

*   NOTE:  The amendment to subdivision 3 by Laws 1997, First 
*Special Session chapter 4, article 2, section 4, is effective 
*for fiscal year 1999.  Laws 1997, First Special Session chapter 
*4, article 2, section 53.

  124.25 Repealed, 1977 c 447 art 6 s 13 

  124.251 Repealed, 1983 c 314 art 9 s 13 

  124.252 Repealed, 1991 c 265 art 8 s 20 

     124.255 School enrichment partnership program. 

    Subdivision 1.    Establishment.  The school enrichment 
 partnership program is established.  The purpose of the program 
 is to encourage school districts to expand the involvement of 
 the private sector in the delivery of academic programs.  The 
 program will provide matching state funds for those provided by 
 the private sector. 

    Subd. 2.    Revenue eligibility.  A school district or 
 group of school districts is eligible to receive state aid under 
 this program.  Districts may enter into joint agreements to 
 provide programs or make expenditures under this section.  The 
 limitations under this subdivision shall apply to these programs 
 or expenditures as if they were operated by a single district.  
 A district may receive $1 of state aid for each $2 raised from 
 the private sector.  The private match must be in the form of 
 cash.  Specific types of noncash support may be considered for 
 the private match.  State aid is limited to the lesser of 
 $75,000 or $10 per pupil unit per district. 

    Subd. 3.    Revenue management.  The use of the state 
 and private funds provided under this section is under the 
 general control of the school board.  The board may establish, 
 without using state funds or public employees, a separate 
 foundation to directly manage the funds.  The private funds must 
 be used to acquire instructional or noninstructional academic 
 materials of a capital nature including, but not limited to, 
 textbooks, globes, maps, and other academic material.  The funds 
 may not be used for salaries or other employee benefits. 

    Subd. 4.    Procedures; report.  The Minnesota academic 
 excellence foundation, under the direction of the commissioner 
 of children, families, and learning, shall establish application 
 forms, guidelines, procedures, and timelines for the 
 distribution of state aid.  The commissioner may require 
 reporting necessary to evaluate the program.  Measures of 
 success will include numbers of partnerships and funds raised; 
 numbers of school foundations formed; and demonstrated linkages 
 of partnerships to improved instructional delivery resulting in 
 increased student learning. 

    Subd. 5.    Results-oriented charter schools.  
 Notwithstanding section 124.248, subdivision 4, paragraph (b), a 
 results-oriented charter school is eligible to participate in 
 the program under this section as if it were a school district. 

    HIST: 1Sp1995 c 3 art 4 s 16; art 16 s 13 

     124.26 Adult basic education. 

    Subdivision 1. Repealed, 1987 c 398 art 4 s 17 

    Subd. 1a. Repealed, 1984 c 463 art 6 s 17 

    Subd. 1b.    Program requirements.  An adult basic 
 education program is a day or evening program offered by a 
 district that is for people over 16 years of age who do not 
 attend an elementary or secondary school.  The program offers 
 academic instruction necessary to earn a high school diploma or 
 equivalency certificate.  Tuition and fees may not be charged to 
 a learner for instruction paid under this section, except for a 
 security deposit to assure return of materials, supplies, and 
 equipment. 

    Subd. 1c.    Program approval.  (a) To receive aid under 
 this section, a district, a consortium of districts, or a 
 private nonprofit organization must submit an application by 
 June 1 describing the program, on a form provided by the 
 department.  The program must be approved by the commissioner 
 according to the following criteria:  

    (1) how the needs of different levels of learning will be 
 met; 

    (2) for continuing programs, an evaluation of results; 

    (3) anticipated number and education level of participants; 

    (4) coordination with other resources and services; 

    (5) participation in a consortium, if any, and money 
 available from other participants; 

    (6) management and program design; 

    (7) volunteer training and use of volunteers; 

    (8) staff development services; 

    (9) program sites and schedules; and 

    (10) program expenditures that qualify for aid.  

    (b) The commissioner may grant adult basic education funds 
 to a private, nonprofit organization to provide services that 
 are not offered by a district or that are supplemental to a 
 district's program.  The program provided under this provision 
 must be approved and funded according to the same criteria used 
 for district programs. 

    (c) Adult basic education programs may be approved under 
 this subdivision for up to five years.  Five-year program 
 approval shall be granted to an applicant who has demonstrated 
 the capacity to: 

    (1) offer comprehensive learning opportunities and support 
 service choices appropriate for and accessible to adults at all 
 basic skill need levels; 

    (2) provide a participatory and experiential learning 
 approach based on the strengths, interests, and needs of each 
 adult, that enables adults with basic skill needs to: 

    (i) identify, plan for, and evaluate their own progress 
 toward achieving their defined educational and occupational 
 goals; 

    (ii) master the basic academic reading, writing, and 
 computational skills, as well as the problem-solving, decision 
 making, interpersonal effectiveness, and other life and learning 
 skills they need to function effectively in a changing society; 

    (iii) locate and be able to use the health, governmental, 
 and social services and resources they need to improve their own 
 and their families' lives; and 

    (iv) continue their education, if they desire, to at least 
 the level of secondary school completion, with the ability to 
 secure and benefit from continuing education that will enable 
 them to become more employable, productive, and responsible 
 citizens; 

    (3) plan, coordinate, and develop cooperative agreements 
 with community resources to address the needs that the adults 
 have for support services, such as transportation, flexible 
 course scheduling, convenient class locations, and child care; 

    (4) collaborate with business, industry, labor unions, and 
 employment-training agencies, as well as with family and 
 occupational education providers, to arrange for resources and 
 services through which adults can attain economic 
 self-sufficiency; 

    (5) provide sensitive and well trained adult education 
 personnel who participate in local, regional, and statewide 
 adult basic education staff development events to master 
 effective adult learning and teaching techniques; 

    (6) participate in regional adult basic education peer 
 program reviews and evaluations; and 

    (7) submit accurate and timely performance and fiscal 
 reports. 

    Subd. 2.    Accounts; revenue; aid.  Each district, 
 group of districts, or private nonprofit organization providing 
 adult basic education programs shall establish and maintain 
 accounts separate from all other district accounts for the 
 receipt and disbursement of all funds related to these 
 programs.  All revenue received pursuant to this section shall 
 be utilized solely for the purposes of adult basic education 
 programs.  In no case shall federal and state aid plus levy 
 equal more than 100 percent of the actual cost of providing 
 these programs. 

    Subd. 3. Repealed, 1981 c 358 art 4 s 11 

    Subd. 4. Repealed, 1983 c 314 art 4 s 10 

    Subd. 5. Repealed, 1984 c 463 art 9 s 13 

    Subd. 6. Repealed, 1987 c 398 art 4 s 17 

    Subd. 7.  Repealed, 1991 c 265 art 4 s 33 

    Subd. 8. Repealed, 1991 c 265 art 4 s 33 

    HIST: Ex1959 c 71 art 5 s 26; 1969 c 864 s 1; 1971 c 827 s 1; 
 1975 c 432 s 42; 1976 c 271 s 50; 1977 c 447 art 4 s 2,3; 1981 c 
 358 art 4 s 1-4; 1982 c 548 art 6 s 14,15; 1983 c 314 art 4 s 1; 
 1Sp1985 c 12 art 4 s 3; 1987 c 398 art 4 s 8-10; 1988 c 718 art 
 7 s 31; 1989 c 329 art 4 s 7-9; 1Sp1989 c 1 art 2 s 11; 1990 c 
 562 art 10 s 2; 1991 c 265 art 4 s 8,9; 1993 c 224 art 4 s 19; 
 art 12 s 19; 1994 c 647 art 4 s 16-18; 1997 c 162 art 2 s 16; 
 1Sp1997 c 4 art 6 s 11 

     124.2601 Adult basic education aid. 

    Subdivision 1.    Full-time equivalent.  In this section 
 "full-time equivalent" means 408 contact hours for a student at 
 the adult secondary instructional level and 240 contact hours 
 for a student at a lower instructional level.  "Full-time 
 equivalent" for an English as a second language student means 
 240 contact hours. 

    Subd. 2.    Programs funded.  Adult basic education 
 programs established under section 124.26 and approved by the 
 commissioner are eligible for revenue under this section. 

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

    Subd. 4.    Levy.  To obtain adult basic education 
 revenue, a district with an eligible program may levy an amount 
 not to exceed the amount raised by .12 percent times the 
 adjusted tax capacity of the district for the preceding year. 

    Subd. 5.    Aid.  Adult basic education aid is equal to 
 the difference between an approved program's adult basic 
 education revenue and its adult basic education levy.  Beginning 
 with levies payable in 1998, if the district does not levy the 
 full amount permitted, the adult education aid must be reduced 
 in proportion to the actual amount levied. 

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

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

    (c) For fiscal year 1998, any adult basic education program 
 that receives less state aid than in fiscal year 1997 shall 
 receive additional aid equal to 80 percent of the difference 
 between its 1997 aid and the amount of aid under subdivision 5.  
 For fiscal year 1999 and later, additional aid under this 
 paragraph must be reduced by 20 percent each year. 

    Subd. 7.    Proration.  If the total appropriation for 
 adult basic education aid is insufficient to pay all approved 
 programs the full amount of aid earned, the department of 
 children, families, and learning shall proportionately reduce 
 each approved program's aid. 

    HIST: 1991 c 265 art 4 s 10; 1992 c 499 art 4 s 6; 1993 c 224 
 art 4 s 20,21; 1994 c 647 art 4 s 19-21; 1Sp1995 c 3 art 16 s 
 13; 1997 c 162 art 2 s 17-20; 1Sp1997 c 5 s 47 

     124.2605 GED test fees. 

    The commissioner of children, families, and learning shall 
 pay 60 percent of the fee that is charged to an eligible 
 individual for the full battery of a GED test, but not more than 
 $20 for an eligible individual. 

    HIST: 1991 c 265 art 4 s 11; 1992 c 499 art 4 s 7; 1Sp1995 c 3 
 art 16 s 13 

     124.261 Adult high school graduation aid. 

    Subdivision 1.    Aid eligibility.  For fiscal years 
 1998 and later, adult high school graduation aid for eligible 
 pupils age 21 or over, equals 65 percent of the general 
 education formula allowance times 1.30 times the average daily 
 membership under section 124.17, subdivision 2e.  Adult high 
 school graduation aid must be paid in addition to any other aid 
 to the district.  Pupils age 21 or over may not be counted by 
 the district for any purpose other than adult high school 
 graduation aid. 

    Subd. 2.    Aid follows pupil.  Adult high school 
 graduation aid accrues to the account and the fund of the 
 eligible programs, under section 126.22, subdivision 3, that 
 serve adult diploma students. 

    HIST: 1988 c 718 art 6 s 9; 1990 c 562 art 4 s 3; 1991 c 265 
 art 4 s 12; 1Sp1995 c 3 art 4 s 17; art 16 s 13; 1997 c 162 art 
 2 s 21 

     124.2613 First-grade preparedness program. 

    Subdivision 1.    Purpose.  The purposes of the 
 first-grade preparedness program are to ensure that every child 
 has the opportunity before first grade to develop the skills and 
 abilities necessary to read and succeed in school and to reduce 
 the underlying causes that create a need for compensatory 
 revenue. 

    Subd. 2.    Qualifying district.  A school district may 
 receive first-grade preparedness revenue for qualifying school 
 sites if, consistent with subdivision 5, the school board 
 approves a resolution requiring the district to provide services 
 to all children located in a qualifying school site attendance 
 area. 

    Subd. 3.    Qualifying school site.  (a) The 
 commissioner shall rank all school sites with kindergarten 
 programs that do not exclusively serve students under section 
 120.17.  The ranking must be from highest to lowest based on the 
 site's free and reduced lunch count as a percent of the fall 
 enrollment using the preceding October 1 enrollment data.  Once 
 a school site is calculated to be eligible, it remains eligible 
 for the duration of the pilot program.  For each school site, 
 the percentage used to calculate the ranking must be the greater 
 of (1) the percent of the fall kindergarten enrollment receiving 
 free and reduced lunch, or (2) the percent of the total fall 
 enrollment receiving free and reduced lunch.  The list of ranked 
 sites must be separated into the following geographic areas:  
 Minneapolis district, St. Paul district, suburban Twin Cities 
 districts in the seven-county metropolitan area, and school 
 districts in greater Minnesota. 

    (b) The commissioner shall establish a process and 
 timelines to qualify school sites for the next school year.  
 School sites must be qualified in each geographic area from the 
 list of ranked sites until the estimated revenue available for 
 this program has been allocated.  The total estimated revenue 
 must be distributed to qualified school sites in each geographic 
 area as follows:  25 percent for Minneapolis sites, 25 percent 
 for St. Paul sites, 25 percent for suburban Twin Cities sites, 
 and 25 percent for greater Minnesota. 

    Subd. 4.    Program.  A qualifying school site must 
 develop its first-grade preparedness program in collaboration 
 with other providers of school readiness and child development 
 services.  A school site must offer a full-day kindergarten 
 program to participating children who are five years of age or 
 older for the full school day every day, a program for 
 participating children who are four years old, or a combination 
 of both.  The program may offer as an option to families home 
 visits and other practices as appropriate, and may provide such 
 services with the consent of the parent or guardian.  Program 
 providers must ensure that the program supplements existing 
 school readiness and child development programs and complements 
 the services provided with compensatory revenue.  Where 
 possible, individuals receiving assistance under a family 
 assistance plan can meet the work activity requirement of the 
 plan by participating in a first-grade preparedness program as a 
 volunteer. 

    Subd. 5.    Extended day requirements.  The board of a 
 qualifying school district must develop and approve a plan to 
 provide extended day services to serve as many children as 
 possible.  To accept children whose families participate in 
 child care assistance programs under section 119B.03 or 119B.05, 
 and to meet the requirements of section 245A.03, subdivision 2, 
 the board must formally approve the first-grade preparedness 
 program.  All revenue received under subdivision 6 must be 
 allocated to the qualifying school sites within the district. 

    Subd. 6.    Preparedness revenue.  (a) A qualifying 
 school district is eligible for first-grade preparedness revenue 
 equal to the basic formula allowance for that year times the 
 number of children five years of age or older enrolled in a 
 kindergarten program at the site on October 1 of the previous 
 year times .53. 

    (b) This revenue must supplement and not replace 
 compensatory revenue that the district uses for the same or 
 similar purposes under chapter 124A. 

    (c) A pupil enrolled in the first grade preparedness 
 program at a qualifying school site is eligible for 
 transportation under section 123.39, subdivision 1.  

    (d) First grade preparedness revenue paid to a charter 
 school for which a school district is providing transportation 
 according to section 120.064, subdivision 15, shall be decreased 
 by an amount equal to the product of $170 times the pupil units 
 calculated according to paragraph (a).  This amount shall be 
 paid to the school district for transportation costs.  

    Subd. 7.    Evaluation.  The commissioner of children, 
 families, and learning, in consultation with representatives of 
 the state board of teaching, early childhood teachers, 
 elementary school classroom teachers, and teacher educators, 
 shall develop an evaluation for qualifying school sites to use 
 in documenting results.  The evaluation must use empirical and 
 qualitative methods to gather information on the following:  
 progress towards ensuring that every child entering the first 
 grade has the knowledge and skills necessary to succeed in 
 school; student readiness for first grade; an assessment of 
 enrolling students by their teacher; and measures of parental 
 satisfaction and parental involvement.  The commissioner shall 
 assist a school site with its evaluation at the request of the 
 site. 

    Subd. 8.    Expiration.  This section applies for fiscal 
 years 1997, 1998, and 1999, and expires June 30, 1999. 

    HIST: 1996 c 412 art 1 s 11; 1Sp1997 c 4 art 2 s 5-7 

     124.2615 Learning readiness aid. 

    Subdivision 1.    Program review and approval.  By 
 February 15, 1992, for the 1991-1992 school year or by May 1 
 preceding subsequent school years, a district must submit to the 
 commissioners of children, families, and learning, and health:  

    (1) a description of the services to be provided; 

    (2) a plan to ensure children at greatest risk receive 
 appropriate services; 

    (3) a description of procedures and methods to be used to 
 coordinate public and private resources to maximize use of 
 existing community resources, including school districts, health 
 care facilities, government agencies, neighborhood 
 organizations, and other resources knowledgeable in early 
 childhood development; 

    (4) comments about the district's proposed program by the 
 advisory council required by section 121.831, subdivision 7; and 

    (5) agreements with all participating service providers.  

    Each commissioner may review and comment on the program, 
 and make recommendations to the commissioner of children, 
 families, and learning, within 30 days of receiving the plan. 

    Subd. 2.    Amount of aid.  (a) A district is eligible 
 to receive learning readiness aid if the program plan as 
 required by subdivision 1 has been approved by the commissioner 
 of children, families, and learning.  

    (b) For fiscal year 1998 and thereafter, a district shall 
 receive learning readiness aid equal to: 

    (1) the number of eligible four-year old children in the 
 district times the ratio of 50 percent of the total learning 
 readiness aid for that year to the total number of eligible 
 four-year old children reported to the commissioner for that 
 year; plus 

    (2) the number of pupils enrolled in the school district 
 from families eligible for the free or reduced school lunch 
 program times the ratio of 50 percent of the total learning 
 readiness aid for that year to the total number of pupils in the 
 state from families eligible for the free or reduced school 
 lunch program. 

    Subd. 3.    Use of aid.  Learning readiness aid shall be 
 used only to provide a learning readiness program and may be 
 used to provide transportation.  Not more than five percent of 
 the aid may be used for the cost of administering the program.  
 Aid must be used to supplement and not supplant local, state, 
 and federal funding.  Aid may not be used for instruction and 
 services required under section 120.17.  Aid may not be used to 
 purchase land or construct buildings, but may be used to lease 
 or renovate existing buildings. 

    Subd. 4.    Separate accounts.  The district shall 
 deposit learning readiness aid in a separate account within the 
 community education fund.  

    HIST: 1991 c 265 art 7 s 13; 1992 c 363 art 2 s 5; 1992 c 499 
 art 7 s 2; 1993 c 224 art 4 s 22,23; 1994 c 483 s 1; 1Sp1995 c 3 
 art 16 s 13; 1997 c 162 art 4 s 59,60 

  124.27 Repealed, 1963 c 19 s 2 

    124.271 Subdivision 1.  Repealed, 1977 c 447 art 4 
 s 6 

    Subd. 1a.  Repealed, 1981 c 358 art 4 s 11 

    Subd. 2.  Repealed, 1Sp1985 c 12 art 4 s 13 

    Subd. 2a.  Repealed, 1Sp1985 c 12 art 4 s 13 

    Subd. 2b.  Repealed, 1989 c 329 art 4 s 20 

    Subd. 2c.  Repealed, 1Sp1985 c 12 art 4 s 13 

    Subd. 3.  Repealed, 1989 c 329 art 4 s 20 

    Subd. 4.  Repealed, 1989 c 329 art 4 s 20 

    Subd. 5.  Repealed, 1983 c 314 art 4 s 10 

    Subd. 6.  Repealed, 1984 c 463 art 9 s 13 

    Subd. 7.  Repealed, 1989 c 329 art 4 s 20 

     124.2711 Early childhood family education revenue. 

    Subdivision 1.    Revenue.  The revenue for early 
 childhood family education programs for a school district equals 
 $101.25 for 1998 and $113.50 for 1999 and later fiscal years 
 times the greater of: 

    (1) 150; or 

    (2) the number of people under five years of age residing 
 in the school district on October 1 of the previous school year. 

    Subd. 2.    Population.  For the purposes of subdivision 
 1, data reported to the department of children, families, and 
 learning may be used to determine the number of people under 
 five years of age residing in the district.  The commissioner, 
 with the assistance of the state demographer, shall review the 
 number reported by any district operating an early childhood 
 family education program.  If requested, the district shall 
 submit to the commissioner an explanation of its methods and 
 other information necessary to document accuracy.  If the 
 commissioner determines that the district has not provided 
 sufficient documentation of accuracy, the commissioner may 
 request the state demographer to prepare an estimate of the 
 number of people under five years of age residing in the 
 district and may use this estimate for the purposes of 
 subdivision 1.  

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

    Subd. 3.    Early childhood family education aid.  If a 
 district complies with the provisions of section 121.882, it 
 shall receive early childhood family education aid equal to the 
 difference between the early childhood family education revenue 
 and the early childhood family education levy.  If the district 
 does not levy the entire amount permitted, the early childhood 
 family education aid shall be reduced in proportion to the 
 actual amount levied. 

    Subd. 4.    Use of revenue restricted.  Early childhood 
 family education revenue may be used only for early childhood 
 family education programs.  Not more than five percent of early 
 childhood family education revenue may be used to administer 
 early childhood family education programs.  The increase in 
 revenue for fiscal years 1992 and 1993 shall be used to: 

    (1) increase participation of families so that the total 
 participation in early childhood family education programs in 
 the district more nearly reflects the demographic, racial, 
 cultural, and ethnic diversity of the district; and 

    (2) provide programs for families who, because of poverty 
 and other barriers to learning, may need programs designed to 
 meet their needs. 

    Subd. 5.    Home visiting levy.  A school district that 
 enters into a collaborative agreement to provide education 
 services and social services to families with young children may 
 levy an amount equal to $1.60 times the number of people under 
 five years of age residing in the district on September 1 of the 
 last school year.  Levy revenue under this subdivision shall not 
 be included as revenue under subdivision 1.  The revenue shall 
 be used for home visiting programs under section 121.882, 
 subdivision 2b. 

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

    HIST: 1984 c 463 art 4 s 3; 1Sp1985 c 12 art 4 s 6; 1987 c 398 
 art 4 s 13; 1988 c 486 s 39; 1989 c 329 art 4 s 10,11; 1991 c 
 265 art 4 s 13; 1993 c 224 art 4 s 24-26; art 14 s 10; 1994 c 
 647 art 4 s 22,23; 1Sp1995 c 3 art 4 s 18; art 16 s 13; 1996 c 
 412 art 4 s 7; 1997 c 162 art 1 s 6,7 

*   NOTE:  The amendment to subdivision 2a by Laws 1997, 
*chapter 162, article 1, section 7, is effective for revenue for 
*fiscal year 1999.  Laws 1997, chapter 162, article 1, section 20.

     124.2712 ECFE revenue. 

    In addition to the revenue in section 124.2711, subdivision 
 1, in fiscal year 1994 a district is eligible for aid equal to 
 $1.60 times the greater of 150 or the number of people under 
 five years of age residing in the school district on September 1 
 of the last school year.  This amount may be used only for 
 in-service education for early childhood family education parent 
 educators, child educators, and home visitors for violence 
 prevention programs and for home visiting programs under section 
 126.77.  A district that uses revenue under this paragraph for 
 home visiting programs shall provide home visiting program 
 services through its early childhood family education program or 
 shall contract with a public or nonprofit organization to 
 provide such services.  A district may establish a new home 
 visiting program only where no existing, reasonably accessible 
 home visiting program meets the program requirements in section 
 126.77. 

    HIST: 1992 c 571 art 10 s 29; 1993 c 224 art 4 s 39 

     124.2713 Community education revenue. 

    Subdivision 1.    Total community education revenue.  
 Community education revenue equals the sum of a district's 
 general community education revenue and youth service program 
 revenue.  

    Subd. 2.    Eligibility.  To be eligible for community 
 education revenue, a district must operate a community education 
 program that complies with section 121.88. 

    Subd. 3.    General community education revenue.  The 
 general community education revenue for a district equals $5.95 
 times the greater of 1,335 or the population of the district.  
 The population of the district is determined according to 
 section 275.14.  

    Subd. 3a.  Repealed, 1989 c 329 art 4 s 20 

    Subd. 4. Repealed, 1991 c 265 art 4 s 33 

    Subd. 5.    Youth service revenue.  Youth service 
 program revenue is available to a district that has implemented 
 a youth development plan and a youth service program.  Youth 
 service revenue equals $1 times the greater of 1,335 or the 
 population of the district. 

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

    Subd. 6a.    Community education levy; districts off the 
 formula.  If the amount of the community education levy for a 
 district exceeds the district's community education revenue, the 
 amount of the community education levy is limited to the sum of: 

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

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

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

    Subd. 6b.    Community education levy equity.  (a) If a 
 district's community education levy for a fiscal year is 
 determined according to subdivision 6a, an amount must be 
 deducted from state aid authorized in this chapter receivable 
 for the same fiscal year, and from state payments authorized in 
 chapter 273 and receivable for the same fiscal year, the amount 
 of the deduction equals the difference between:  

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

    (2) the district's maximum community education levy 
 according to subdivision 6.  

    (b) The amount of the deduction in any fiscal year must not 
 exceed the amount of state payments authorized in chapters 124 
 and 273 and receivable for the same fiscal year in the 
 district's community service fund. 

    Subd. 7.    Community education aid.  A district's 
 community education aid is the difference between its community 
 education revenue and the community education levy.  If the 
 district does not levy the entire amount permitted, the 
 community education aid shall be reduced in proportion to the 
 actual amount levied. 

    Subd. 8.    Uses of general revenue.  (a) General 
 community education revenue may be used for: 

    (1) nonvocational, recreational, and leisure time 
 activities and programs; 

    (2) programs for adults with disabilities, if the programs 
 and budgets are approved by the department of children, 
 families, and learning; 

    (3) adult basic education programs, according to section 
 124.26; 

    (4) summer programs for elementary and secondary pupils; 

    (5) implementation of a youth development plan; 

    (6) implementation of a youth service program; 

    (7) early childhood family education programs, according to 
 section 121.882; and 

    (8) extended day programs, according to section 121.88, 
 subdivision 10. 

    (9) In addition to money from other sources, a district may 
 use up to ten percent of its community education revenue for 
 equipment that is used exclusively in community education 
 programs.  This revenue may be used only for the following 
 purposes:  

    (i) to purchase or lease computers and related materials; 

    (ii) to purchase or lease equipment for instructional 
 programs; and 

    (iii) to purchase textbooks and library books. 

    (b) General community education revenue must not be used to 
 subsidize the direct activity costs for adult enrichment 
 programs.  Direct activity costs include, but are not limited 
 to, the cost of the activity leader or instructor, cost of 
 materials, or transportation costs. 

    Subd. 9.    Use of youth service revenue.  Youth service 
 revenue may be used to implement a youth development plan 
 approved by the school board and to provide a youth service 
 program according to section 121.88, subdivision 9. 

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

    HIST: 1989 c 329 art 4 s 12; 1Sp1989 c 1 art 2 s 11; 1990 c 
 562 art 3 s 13; art 10 s 3; 1991 c 265 art 4 s 14-18; 1993 c 224 
 art 4 s 27-30; art 12 s 20; 1994 c 647 art 4 s 24,25; 1Sp1995 c 
 3 art 4 s 19; art 16 s 13; 1996 c 412 art 4 s 8; 1997 c 162 art 
 2 s 22,23 

     124.2714 Additional community education revenue. 

    (a) A district that is eligible under section 124.2713, 
 subdivision 2, may levy an amount up to the amount authorized by 
 Minnesota Statutes 1986, section 275.125, subdivision 8, clause 
 (2).  

    (b) Beginning with levies for fiscal year 1995, this levy 
 must be reduced each year by the amount of any increase in the 
 levying district's general community education revenue under 
 section 124.2713, subdivision 3, for that fiscal year over the 
 amount received by the district under section 124.2713, 
 subdivision 3, for fiscal year 1994. 

    (c) The proceeds of the levy may be used for the purposes 
 set forth in section 124.2713, subdivision 8. 

    HIST: 1989 c 329 art 4 s 13; 1993 c 224 art 4 s 31; 1994 c 647 
 art 4 s 26 

     124.2715 Program revenue; adults with disabilities. 

    Subdivision 1.    Revenue amount.  A district that is 
 eligible according to section 124.2713, subdivision 2, may 
 receive revenue for a program for adults with disabilities.  
 Revenue for the program for adults with disabilities for a 
 district or a group of districts equals the lesser of:  

    (1) the actual expenditures for approved programs and 
 budgets; or 

    (2) $60,000.  

    Subd. 2.    Aid.  Program aid for adults with 
 disabilities equals the lesser of:  

    (1) one-half of the actual expenditures for approved 
 programs and budgets; or 

    (2) $30,000.  

    Subd. 3.    Levy.  A district may levy for a program for 
 adults with disabilities an amount up to the amount designated 
 in subdivision 2.  In the case of a program offered by a group 
 of districts, the levy amount shall be apportioned among the 
 districts according to the agreement submitted to the department 
 of children, families, and learning.  

    Subd. 4.    Outside revenue.  A district may receive 
 money from public or private sources to supplement revenue for 
 the program for adults with disabilities.  Aid may not be 
 reduced as a result of receiving money from these sources.  

    Subd. 5.    Use of revenue.  Revenue for the program for 
 adults with disabilities may be used only to provide programs 
 for adults with disabilities.  

    HIST: 1989 c 329 art 4 s 14; 1990 c 562 art 3 s 13; 1Sp1995 c 
 3 art 16 s 13 

     124.2716 Extended day revenue. 

    Subdivision 1.    Eligibility.  A school district that 
 offers an extended day program according to section 121.88, 
 subdivision 10, is eligible for extended day revenue for the 
 additional costs of providing services to children with 
 disabilities or to children experiencing family or related 
 problems of a temporary nature who participate in the extended 
 day program. 

    Subd. 2.    Extended day revenue.  The extended day 
 revenue for an eligible school district equals the approved 
 additional cost of providing services to children with 
 disabilities or children experiencing family or related problems 
 of a temporary nature who participate in the extended day 
 program.  

    Subd. 3.    Extended day levy.  To obtain extended day 
 revenue, a school district may levy an amount equal to the 
 district's extended day revenue as defined in subdivision 2 
 multiplied by the lesser of one, or the ratio of the quotient 
 derived by dividing the adjusted net tax capacity of the 
 district for the year before the year the levy is certified by 
 the actual pupil units in the district for the school year to 
 which the levy is attributable, to $3,767.  

    Subd. 4.    Extended day aid.  A district's extended day 
 aid is the difference between its extended day revenue and its 
 extended day levy.  If a district does not levy the entire 
 amount permitted, extended day aid must be reduced in proportion 
 to the actual amount levied. 

    HIST: 1992 c 499 art 4 s 8; art 12 s 29; 1993 c 224 art 4 s 
 32; 1997 c 162 art 2 s 24 

  124.272 Repealed, 1987 c 398 art 1 s 27 subd 3 

    124.2721 Subdivision 1.  MS 1992 Repealed, 1993 c 
 224 art 6 s 32; 1993 c 374 s 15 

    Subd. 1a.  MS 1991 Supp Repealed, 1992 c 499 art 6 
 s 39 

    Subd. 2.  MS 1992 Repealed, 1993 c 224 art 6 s 32; 
 1993 c 374 s 15 

    Subd. 2a.  MS 1991 Supp Repealed, 1992 c 499 art 6 
 s 39 

    Subd. 3.  MS 1992 Repealed, 1993 c 224 art 6 s 32; 
 1993 c 374 s 15 

    Subd. 3a.  MS 1990 Repealed, 1991 c 265 art 6 s 67 
 subd 3 

    Subd. 3b.  MS 1991 Supp Repealed, 1992 c 499 art 6 
 s 39 

    Subd. 4.  MS 1992 Repealed, 1993 c 224 art 6 s 32; 
 1993 c 374 s 15 

    Subd. 4a.  MS 1991 Supp Repealed, 1992 c 499 art 6 
 s 39 

    Subd. 5.  MS 1992 Repealed, 1992 c 224 art 6 s 32; 
 1993 c 374 s 15 

    Subd. 5a.  MS 1991 Supp Repealed, 1992 c 499 art 6 
 s 39 

    Subd. 5b.  MS 1991 Supp Repealed, 1992 c 499 art 6 
 s 39 

    Subd. 6.  MS 1992 Repealed, 1993 c 224 art 6 s 32; 
 1993 c 374 s 15 

     124.2725 Cooperation and combination revenue. 

    Subdivision 1.    Eligibility.  A school district is 
 eligible for cooperation and combination revenue if it has a 
 plan approved by the commissioner according to section 122.243 
 and it levied under subdivision 3 for taxes payable in 1995.  

    Subd. 2.    Cooperation and combination revenue.  
 Cooperation and combination revenue equals $100 times the pupil 
 units served in the district.  For purposes of this section, 
 pupil units served means the number of resident and nonresident 
 pupil units in average daily membership receiving instruction in 
 the cooperating or combined district.  A district may not 
 receive revenue under this section if it levies under section 
 124.912, subdivision 4.  

    Subd. 3.    Cooperation and combination levy.  To obtain 
 cooperation and combination revenue, a district may levy an 
 amount equal to the cooperation and combination revenue 
 multiplied by the lesser of one or the following ratio: 

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

    (2) the amount specified in subdivision 4 for the school 
 year to which the levy is attributable. 

    Subd. 4.    Increasing levy.  (a) For districts that did 
 not enter into an agreement under section 122.541 at least three 
 years before the date of a successful referendum held under 
 section 122.243, subdivision 2, and that combine without 
 cooperating, the amount in subdivision 3, clause (2), shall be: 

    (1) $4,707.50 for the first year of combination; and 

    (2) $2,353.75 for the second year of combination. 

    (b) For districts that entered into an agreement under 
 section 122.541 at least three years before the date of a 
 successful referendum held under section 122.243, subdivision 2, 
 and combine without cooperating, the percentages in subdivision 
 3, clause (2), shall be: 

    (1) $9,415 for the first year of combination; 

    (2) $7,061.25 for the second year of combination; 

    (3) $4,707.50 for the third year of combination; and 

    (4) $2,353.75 for the fourth year of combination. 

    (c) For districts that combine after one year of 
 cooperation, the percentage in subdivision 3, clause (2), shall 
 be: 

    (1) $9,415 for the first year of cooperation; 

    (2) $7,061.25 for the first year of combination; 

    (3) $4,707.50 for the second year of combination; and 

    (4) $2,353.75 for the third year of combination. 

    (d) For districts that combine after two years of 
 cooperation, the percentage in subdivision 3, clause (2), shall 
 be: 

    (1) $9,415 for the first year of cooperation; 

    (2) $7,061.25 for the second year of cooperation; 

    (3) $4,707.50 for the first year of combination; and 

    (4) $2,353.75 for the second year of combination. 

    Subd. 5.    Cooperation and combination aid.  (a) 
 Districts that did not enter into an agreement under section 
 122.541 at least three years before the date of a successful 
 referendum held under section 122.243, subdivision 2, and 
 combine without cooperating shall receive cooperation and 
 combination aid for the first two years of combination.  
 Cooperation and combination aid shall not be paid after two 
 years of combining. 

    (b) Districts that entered into an agreement under section 
 122.541 at least three years before the date of a successful 
 referendum held under section 122.243, subdivision 2, and 
 combine without cooperating shall receive cooperation and 
 combination aid for the first four years of combination.  Aid 
 must not be paid after four years of combination. 

    (c) Districts that combine after one year of cooperation 
 shall receive cooperation and combination aid for the first year 
 of cooperation and three years of combination.  Aid shall not be 
 paid after three years of combining.  

    (d) Districts that combine after two years of cooperation 
 shall receive cooperation and combination aid for the first two 
 years of cooperation and the first two years of combination.  
 Aid shall not be paid after two years of combining. 

    (e) In each case, cooperation and combination aid is equal 
 to the difference between the cooperation and combination 
 revenue and the cooperation and combination levy. 

    Subd. 6.    Additional aid.  In addition to the aid in 
 subdivision 5, districts shall receive aid according to the 
 following: 

    (1) for districts that did not enter into an agreement 
 under section 122.541 at least three years before the date of a 
 successful referendum held under section 122.243, subdivision 2, 
 and combine without cooperating, $100 times the pupil units 
 served in the district in the first year of combination; or 

    (2) for districts that combine after one or two years of 
 cooperation, $100 times the actual pupil units served in each 
 district for the first year of cooperation and $100 times the 
 actual pupil units served in the combined district for the first 
 year of combination; or 

    (3) for districts that entered into an agreement under 
 section 122.541 at least three years before the date of a 
 successful referendum held under section 122.243, subdivision 2, 
 and combine without cooperating, $100 times the pupil units 
 served in the combined district for the first two years of 
 combination. 

    Subd. 7.    Proportional aid.  If a district does not 
 levy the entire amount permitted under subdivision 3, the aid in 
 subdivisions 5 and 6 must be reduced in proportion to the actual 
 amount levied.  

    Subd. 8. MS 1992 Repealed, 1993 c 224 art 6 s 32; 1993 c 
 374 s 15 

    Subd. 9.    Subsequent districts.  If a district 
 subsequently cooperates or combines with districts that have 
 previously received revenue under this section, the new district 
 shall receive revenue, according to subdivision 4 or 6, as 
 follows: 

    (1) if the districts previously received revenue under 
 subdivisions 4, paragraph (a), 5, paragraph (a), and 6, clause 
 (1), the new district will receive two years of revenue under 
 those provisions; 

    (2) if the districts previously received revenue under 
 subdivisions 4, paragraph (b), (c), or (d), 5, paragraph (b), 
 (c), or (d), and 6, clause (2) or (3), the new district shall 
 receive four years of revenue under the applicable provisions of 
 subdivisions 5, 6, and this subdivision.  The previously 
 cooperating or combined districts may not receive revenue, 
 according to subdivision 6 or 10, as though parties to a new 
 agreement. 

    As of the effective date of a cooperation and combination 
 agreement between districts that have previously received 
 revenue under this section and a new district, the new group of 
 districts may not receive revenue in excess of the limit 
 specified in subdivision 10. 

    Subd. 10.    Revenue limit.  Revenue under this section 
 shall not exceed the revenue received by cooperating districts 
 or a combined district with 2,000 pupil units served.  Revenue 
 for cooperating districts subject to the limitation in this 
 subdivision shall be allocated according to the number of pupil 
 units served in the districts. 

    Subd. 11.    Use of revenue.  Revenue under this section 
 shall be used for expenses of cooperating and combining school 
 districts, including, but not limited to: 

    (1) secondary course offerings in communications, 
 mathematics, science, social studies, foreign languages, 
 physical education, health, and career education if the courses 
 have specific learner outcomes; 

    (2) participation by teachers in determining the learner 
 outcomes; 

    (3) staff in-service related to cooperation and 
 combination; 

    (4) any of the purposes set forth in section 124A.22, 
 subdivision 11, clauses (3), (4), (15), (18), (19), (20), (21), 
 and (22), if the purposes are related to courses offered 
 cooperatively; and 

    (5) incentives for superintendents, principals, teachers, 
 and other licensed and nonlicensed employees, such as early 
 retirement, severance pay, and health insurance benefits. 

    Subd. 12.    Joint purposes.  Cooperating district 
 revenue may only be used for purposes of joint efforts between 
 cooperating districts.  The revenue shall be in a separate 
 account.  School boards shall mutually determine cooperative 
 expenditures. 

    Subd. 13.    Failure to combine.  A district has failed 
 to combine if the commissioner disapproves of the plan according 
 to section 122.243, subdivision 1, or if a third referendum 
 fails under section 122.243, subdivision 2, or if the 
 commissioner of children, families, and learning determines that 
 the districts involved are not making sufficient progress toward 
 combination. 

    (a) If a district has failed to combine, cooperation and 
 combination aid under subdivisions 5 and 6 shall not be paid and 
 the authority to levy under subdivision 4 ceases.  The 
 commissioner shall reduce other aids due the district to recover 
 an amount equal to the aid paid under subdivision 6 plus the 
 difference between the aid paid under subdivision 5 and the aid 
 that would have been paid if the revenue had been $50 times the 
 pupil units served.  

    (b) If a district has failed to combine, the authority to 
 levy for reorganization operating debt under section 122.531, 
 subdivision 4a, and for severance pay or early retirement 
 incentives under subdivision 15 ceases. 

    Subd. 14.    Cessation of revenue.  At any time the 
 districts cease cooperating, aid shall not be paid and the 
 authority to levy ceases.  If a district ceases to cooperate for 
 all or a portion of a fiscal year for which a levy has been 
 certified under subdivision 3, the department of children, 
 families, and learning shall adjust the next levy certified by 
 the district by an amount in proportion to the part of the 
 fiscal year that the district did not cooperate. 

    Subd. 15.    Retirement and severance levy.  A 
 cooperating or combined district that levied under subdivision 3 
 for taxes payable in 1995 may levy for severance pay or early 
 retirement incentives for licensed and nonlicensed employees who 
 retire early as a result of the cooperation or combination. 

    Subd. 16.    Exclusion from fund balance.  Revenue 
 received by a district under this section for each year of 
 cooperation and the first three years of combination shall be 
 excluded from the net unreserved operating fund balance, for the 
 purposes of sections 124A.03, subdivision 3b, paragraph (c), and 
 124A.26.  

    HIST: 1989 c 329 art 6 s 37; 1990 c 562 art 6 s 22-26; 1991 c 
 130 s 37; 1991 c 265 art 6 s 34-38; 1992 c 499 art 6 s 16,17; 
 art 12 s 29; 1993 c 224 art 6 s 9-15; art 13 s 37,38; 1994 c 647 
 art 1 s 11; 1Sp1995 c 3 art 6 s 6-9; art 16 s 13; 1997 c 7 art 1 
 s 53 

     124.2726 Consolidation transition revenue. 

    Subdivision 1.    Eligibility and use.  A school 
 district that has been reorganized after June 30, 1994, under 
 section 122.23 is eligible for consolidation transition revenue. 
 Revenue is equal to the sum of aid under subdivision 2 and levy 
 under subdivision 3.  Consolidation transition revenue may only 
 be used according to this section.  Revenue must be used for the 
 following purposes and may be distributed among these purposes 
 at the discretion of the district: 

    (1) to offer early retirement incentives as provided by 
 section 122.23, subdivision 20; 

    (2) to reduce operating debt as defined in section 121.915; 

    (3) to enhance learning opportunities for students in the 
 reorganized district; and 

    (4) for other costs incurred in the reorganization. 

    Revenue received and utilized under clause (3) or (4) may 
 be expended for operating, facilities, and/or equipment.  
 Revenue received under this section shall not be included in the 
 determination of the reduction under section 124A.26, 
 subdivision 1.  

    Subd. 2.    Aid.  (a) Consolidation transition aid is 
 equal to $200 times the number of actual pupil units in the 
 newly created district in the year of consolidation and $100 
 times the number of actual pupil units in the first year 
 following the year of consolidation.  The number of pupil units 
 used to calculate aid in either year shall not exceed 1,000 for 
 districts consolidating July 1, 1994, and 1,500 for districts 
 consolidating July 1, 1995, and thereafter.  

    (b) If the total appropriation for consolidation transition 
 aid for any fiscal year, plus any amount transferred under 
 section 124.14, subdivision 7, is insufficient to pay all 
 districts the full amount of aid earned, the department of 
 children, families, and learning shall first pay the districts 
 in the first year following the year of consolidation the full 
 amount of aid earned and distribute any remaining funds to the 
 newly created districts in the first year of consolidation. 

    Subd. 3.    Levy.  If the aid available in subdivision 2 
 is insufficient to cover the costs of the district under section 
 122.23, subdivision 20, the district may levy the difference 
 over a period of time not to exceed three years.  

    Subd. 4.    New districts.  If a district consolidates 
 with another district that has received aid under section 
 124.2725 or 124.2726 within six years of the effective date of 
 the new consolidation, only the pupil units in the district or 
 districts not previously reorganized shall be counted for aid 
 purposes under subdivision 2.  If two or more districts 
 consolidate and all districts received aid under subdivision 2 
 within six years of the effective date of the new consolidation, 
 only one quarter of the pupil units in the newly created 
 district shall be used to determine aid under subdivision 2.  

    HIST: 1994 c 647 art 6 s 23; 1Sp1995 c 3 art 6 s 10-12; art 16 
 s 13 

     124.2727 School district cooperation revenue. 

    Subdivision 1. Repealed, 1992 c 499 art 6 s 39; 1992 c 
 603 s 10 

    Subd. 2. Repealed, 1992 c 499 art 6 s 39; 1992 c 603 s 
 10 

    Subd. 3. Repealed, 1992 c 499 art 6 s 39; 1992 c 603 s 
 10 

    Subd. 4. Repealed, 1992 c 499 art 6 s 39; 1992 c 603 s 
 10 

    Subd. 5. Repealed, 1992 c 499 art 6 s 39; 1992 c 603 s 
 10 

    Subd. 6. Repealed, 1994 c 647 art 6 s 42 

    Subd. 6a.    District cooperation revenue.  A district's 
 cooperation revenue is equal to the greater of $67 times the 
 actual pupil units or $25,000. 

    Subd. 6b.    District cooperation levy.  To receive 
 district cooperation revenue, a district may levy an amount 
 equal to the district's cooperation revenue multiplied by the 
 lesser of one, or the ratio of the quotient derived by dividing 
 the adjusted net tax capacity of the district for the year 
 preceding the year the levy is certified by the actual pupil 
 units in the district for the school year to which the levy is 
 attributable to $3,500. 

    Subd. 6c.    District cooperation aid.  A district's 
 cooperation aid is the difference between its district 
 cooperation revenue and its district cooperation levy.  If a 
 district does not levy the entire amount permitted, aid must be 
 reduced in proportion to the actual amount levied. 

    Subd. 6d.    Revenue uses.  (a) A district must place 
 its district cooperation revenue in a reserved account and may 
 only use the revenue to purchase goods and services from 
 entities formed for cooperative purposes or to otherwise provide 
 educational services in a cooperative manner. 

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

    (c) A district that was not a member of an intermediate 
 district organized under chapter 136D on July 1, 1994, must 
 spend at least $9 per pupil unit of its district cooperation 
 revenue on secondary vocational programs. 

    Subd. 7. Repealed, 1994 c 647 art 6 s 42 

    Subd. 8. Repealed, 1994 c 647 art 6 s 42 

    Subd. 9.    Proration.  (a) If the total appropriation 
 available for district cooperation aid for any fiscal year, plus 
 any amount transferred under section 124.14, subdivision 7, is 
 insufficient to pay all districts the full amount of aid earned, 
 the department of children, families, and learning shall reduce 
 each district's district cooperation revenue according to the 
 calculations in paragraphs (b) to (d). 

    (b) If there is insufficient district cooperation aid 
 available, the department must recompute the district 
 cooperation revenue by proportionally reducing the formula 
 allowance and the revenue minimum to the levels that result in 
 an aid entitlement, adjusted by the percentage in section 
 124.195, subdivision 10, equal to the amount available.  The 
 levy amounts must not be recomputed. 

    (c) A district's proration aid reduction is equal to the 
 lesser of zero, or the difference of the existing aid 
 calculation minus the aid amount computed for the district under 
 paragraph (b). 

    (d) If a district's proration aid reduction is less than 
 its revenue reduction, its district cooperation levy authority 
 for the following year must be reduced by the amount of the 
 difference between its revenue reduction and its aid reduction. 

    HIST: 1991 c 265 art 6 s 39; 1992 c 499 art 6 s 18,19,39, subd 
 3; 1993 c 224 art 6 s 16; 1993 c 374 s 14; 1994 c 647 art 6 s 
 24-26,42; 1995 c 212 art 4 s 64; 1Sp1995 c 3 art 16 s 13; 
 1Sp1997 c 4 art 4 s 11 

     124.2728 Special consolidation aid. 

    Subdivision 1.    Eligibility.  A school district that 
 reorganizes under section 122.23 or sections 122.241 to 122.248 
 effective on July 1, 1994, is eligible for special consolidation 
 aid under this section.  A district may receive aid under this 
 section for only three years. 

    Subd. 2.    Aid calculation.  Special consolidation aid 
 for a reorganized school district is calculated by computing the 
 sum of: 

    (1) the difference between the total amount of early 
 childhood family education revenue under section 124.2711 
 available to the districts involved in the reorganization in the 
 fiscal year prior to the effective date of reorganization and 
 the maximum amount of early childhood family education revenue 
 available to the reorganized district in the current year; and 

    (2) the difference between the total amount of community 
 education revenue under section 124.2713 available to the 
 districts involved in the reorganization in the fiscal year 
 prior to the reorganization and the maximum amount of community 
 education revenue available to the reorganized district in the 
 current year. 

    Subd. 3.    Aid amount.  In the fiscal year that the 
 reorganization is effective, special combination aid is equal to 
 the aid calculated under subdivision 2 times 100 percent.  In 
 the fiscal year following the effective date of reorganization, 
 special combination aid is equal to the aid calculated under 
 subdivision 2 times 67 percent.  In the second fiscal year 
 following the effective date of reorganization, special 
 combination aid is equal to the aid calculated under subdivision 
 2 times 33 percent.  

    HIST: 1994 c 647 art 6 s 27; 1Sp1995 c 3 art 6 s 13 

     124.273 Limited English proficiency programs aid. 

    Subdivision 1. Repealed, 1983 c 314 art 3 s 18 

    Subd. 1a. Repealed, 1984 c 463 art 6 s 17 

    Subd. 1b. Repealed, 1Sp1995 c 3 art 15 s 27 

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

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

    (2) the ratio of: 

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

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

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

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

    Subd. 1d.    LEP base revenue.  (a) The limited English 
 proficiency programs base revenue equals the sum of the 
 following amounts, computed using base year data:  

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

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

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

    (c) If requested by a school district operating a limited 
 English proficiency program during the base year for less than 
 the full school year, the commissioner may adjust the base 
 revenue to reflect the expenditures that would have occurred 
 during the base year had the program been operated for the full 
 school year. 

    Subd. 1e.    Aid.  A district's limited English 
 proficiency aid for fiscal year 1998 equals the aid percentage 
 factor under section 124.3201, subdivision 1, times the 
 district's limited English proficiency revenue. 

    Subd. 1f.    State total LEP revenue.  (a) The state 
 total limited English proficiency programs revenue for fiscal 
 year 1998 equals $14,629,000.  The state total limited English 
 proficiency programs revenue for fiscal year 1999 equals 
 $16,092,000.  

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

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

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

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

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

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

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

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

    Subd. 2. Repealed, 1983 c 314 art 3 s 18 

    Subd. 2a. Repealed, 1984 c 463 art 6 s 17 

    Subd. 2b. Repealed, 1987 c 398 art 3 s 41 

    Subd. 2c. Repealed, 1Sp1995 c 3 art 15 s 27 

    Subd. 3.    Participation of nonpublic school pupils.  
 In counting the number of pupils of limited English proficiency 
 for purposes of this section, districts may include pupils of 
 limited English proficiency who attend nonpublic schools in the 
 district.  A district which counts those pupils and receives aid 
 pursuant to this section shall offer those pupils the same 
 programs on the same terms that it offers to pupils of limited 
 English proficiency who attend the public school.  A program 
 provided for a nonpublic school pupil pursuant to this 
 subdivision shall be provided at a public school or a neutral 
 site as defined in section 123.932, subdivision 9.  Nonpublic 
 school pupils served by a district's educational program for 
 pupils of limited English proficiency shall be counted for 
 average daily membership pursuant to sections 124A.02, 
 subdivisions 20 to 22, and 124A.034, subdivisions 1 to 2. 

    Subd. 4.    Application dates.  To obtain aid for 
 limited English proficiency programs, a district shall submit 
 information required by the department to implement this section.

    Subd. 5.    Notification; revenue.  The department must 
 promptly inform each applicant district of the amount of revenue 
 it will receive pursuant to this section. 

    Subd. 6.    Records; audit.  A district which applies 
 for aid pursuant to this section shall maintain records which 
 support the information contained in all of its applications.  
 The commissioner of children, families, and learning may audit 
 these records upon request.  A district which receives aid 
 pursuant to this section shall keep such additional records in 
 the manner prescribed by the commissioner to ensure that an 
 educational program for pupils of limited English proficiency is 
 implemented and operated in accordance with sections 126.261 to 
 126.269.  

    Subd. 7.    Money from other sources.  A school district 
 providing a program for pupils of limited English proficiency 
 shall be eligible to receive moneys for these programs from 
 other government agencies and from private sources when these 
 moneys are available.  

    HIST: 1981 c 358 art 3 s 10; 1982 c 548 art 3 s 8-11; 1983 c 
 314 art 1 s 22; art 3 s 8; 1Sp1985 c 12 art 3 s 10; 1987 c 398 
 art 3 s 17; art 7 s 26; 1989 c 329 art 3 s 4,5; 1991 c 265 art 3 
 s 5; 1993 c 224 art 3 s 11,12; 1Sp1995 c 3 art 15 s 1-3; art 16 
 s 13; 1996 c 412 art 3 s 11-14; 1Sp1997 c 4 art 2 s 8-11 

  124.274 Repealed, 1992 c 499 art 7 s 30 

   124.275 Repealed, 1987 c 398 art 1 s 27 subd 3; art 6 s 20 
  subd 2 

     124.276 Family connections aid. 

    Subdivision 1.    Eligibility.  A school district that 
 has a family connections program, according to sections 125.70 
 to 125.705, for one or more of its teachers is eligible for aid 
 to extend the teaching contract of a family connections teacher. 

    Subd. 2. Repealed, 1Sp1997 c 4 art 6 s 21 

    Subd. 2a.    Aid.  A district with an approved plan 
 shall receive $30 per pupil served at the school site with the 
 family connections program.  The district must provide a match 
 of $15 per pupil served at the school site with the family 
 connections program. 

    Subd. 3.    Commissioner approval.  The commissioner may 
 approve plans and applications for districts throughout the 
 state for family connections aid.  Application procedures and 
 deadlines shall be established by the commissioner.  

    Subd. 4.    Use of aid.  Family connections aid may be 
 used only to implement a family connections program.  

    HIST: 1989 c 329 art 7 s 4; 1991 c 130 s 37; 1993 c 224 art 13 
 s 39; 1996 c 412 art 4 s 9; 1Sp1997 c 4 art 6 s 12 

     124.278 Minority teacher incentives. 

    Subdivision 1.    Eligible district.  A district is 
 eligible for reimbursement under this section if the district 
 has: 

    (1) a minority enrollment of more than ten percent; or 

    (2) a desegregation/integration plan approved by the state 
 board of education to provide equal educational opportunities 
 for all students. 

    Subd. 2.    Eligible employee.  The following employees 
 are eligible for reimbursement under this section: 

    (1) a teacher who is a member of a minority group and who 
 has not taught in a Minnesota school district during the school 
 year before the year the teacher is employed according to this 
 section; and 

    (2) an aide or an education assistant who is a member of a 
 minority group and who has not been employed as an aide or an 
 education assistant in a Minnesota school district during the 
 school year before the year the aide or education assistant is 
 employed according to this section. 

    Subd. 3.    Reimbursement.  Reimbursement shall equal 
 one-half of the salary and fringe benefits, but not more than 
 $20,000.  The district shall receive reimbursement for each year 
 a minority teacher, aide, or education assistant is employed.  
 The department of children, families, and learning shall 
 establish application or other procedures for districts to 
 obtain the reimbursement.  The department shall not prorate the 
 reimbursement. 

    Subd. 4.    Minority group.  For the purposes of this 
 section, a person is a member of a minority group if the person 
 is African American, American Indian, Asian Pacific American, or 
 an American of Mexican, Puerto Rican, or Spanish origin or 
 ancestry. 

    HIST: 1991 c 265 art 8 s 4; 1994 c 647 art 8 s 6; 1Sp1995 c 3 
 art 16 s 13 

  124.28 MS 1980 Repealed, 1976 c 271 s 98 subd 3 

  124.281 MS 1980 Repealed, 1976 c 271 s 98 subd 3 

  124.29 MS 1980 Repealed, 1976 c 271 s 98 subd 3 

  124.30 Repealed, 1977 c 447 art 6 s 13 

  124.31 Repealed, 1973 c 683 s 30 

     124.311 Assurance of mastery revenue. 

    Subdivision 1.    Instruction.  A school district may 
 receive assurance of mastery revenue to provide direct 
 instructional services to eligible pupils.  

    Subd. 2.    Eligible districts.  To be eligible to 
 receive assurance of mastery revenue, a district must have a 
 local process to review curriculum and instruction.  

    Subd. 3.    Eligible pupils.  A pupil is eligible to 
 receive services provided with assurance of mastery revenue if 
 the pupil has not demonstrated progress toward mastering the 
 required graduation standards, after receiving instruction that 
 was designed to enable the pupil to make progress toward 
 mastering the required graduation standards in a regular 
 classroom setting.  To determine pupil eligibility, a district 
 must use a process adopted by the school board to review 
 curriculum and instruction, for the subjects and at the grade 
 level at which the district uses the revenue. 

    Subd. 4.    Eligible services.  Assurance of mastery 
 revenue must be used to provide direct instructional services to 
 an eligible pupil, or group of eligible pupils, under the 
 following conditions:  

    (a) Instruction may be provided at one or more grade levels 
 from kindergarten through grade 8.  If an assessment of pupils' 
 needs within a district demonstrates that the eligible pupils in 
 grades kindergarten through 8 are being appropriately served, a 
 district may serve eligible pupils in grades 9 through 12. 

    (b) Instruction must be provided under the supervision of 
 the eligible pupil's regular classroom teacher.  Instruction may 
 be provided by the eligible pupil's classroom teacher, by 
 another teacher, by a team of teachers, or by an education 
 assistant or aide.  A special education teacher may provide 
 instruction, but instruction that is provided under this section 
 is not eligible for aid under section 124.32.  

    (c) The instruction that is provided must differ from the 
 initial instruction the pupil received in the regular classroom 
 setting.  The instruction may differ by presenting different 
 curriculum than was initially presented in the regular 
 classroom, or by presenting the same curriculum:  

    (1) at a different rate or in a different sequence than it 
 was initially presented; 

    (2) using different teaching methods or techniques than 
 were used initially; or 

    (3) using different instructional materials than were used 
 initially. 

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

    Subd. 6.    Uses of revenue.  Assurance of mastery 
 revenue may be used only to provide eligible services to 
 eligible pupils. 

    Subd. 7.    District report.  A district that receives 
 assurance of mastery revenue shall include the following in a 
 report:  

    (1) a summary of initial assessment results used to 
 determine pupil eligibility to receive instructional services; 

    (2) a description of the services provided to eligible 
 pupils; and 

    (3) a summary of assessment results for eligible pupils 
 obtained after providing the services. 

    HIST: 1989 c 329 art 3 s 6; 1991 c 265 art 3 s 6; 1996 c 412 
 art 3 s 15-17; art 7 s 9-11 

     124.3111 Assurance of mastery programs. 

    Subdivision 1.    Eligible districts.  A district with a 
 local process to review curriculum and instruction may provide 
 an assurance of mastery program to eligible pupils. 

    Subd. 2.    Eligible pupils.  A pupil is eligible to 
 receive services through an assurance of mastery program if the 
 pupil has not demonstrated progress toward mastering the 
 required graduation standards, after receiving instruction that 
 was designed to enable the pupil to make progress toward 
 mastering the required graduation standards in a regular 
 classroom setting.  To determine pupil eligibility, a district 
 must use a process adopted by the school board to review 
 curriculum and instruction, for the subjects and at the grade 
 level at which the district uses the revenue. 

    Subd. 3.    Eligible services.  (a) Assurance of mastery 
 programs may provide direct instructional services to an 
 eligible pupil, or a group of eligible pupils, under the 
 following conditions in paragraphs (b) to (d). 

    (b) Instruction may be provided at one or more grade levels 
 from kindergarten to grade 8 and for students in grades 9 
 through 12 who have failed the basic skills tests.  If an 
 assessment of pupils' needs within a district demonstrates that 
 the eligible pupils in grades kindergarten to grade 8 are being 
 appropriately served, a district may serve eligible pupils in 
 grades 9 to 12. 

    (c) Instruction must be provided under the supervision of 
 the eligible pupil's regular classroom teacher.  Instruction may 
 be provided by the eligible pupil's classroom teacher, by 
 another teacher, by a team of teachers, or by an education 
 assistant or aide.  A special education teacher may provide 
 instruction, but instruction that is provided under this section 
 is not eligible for aid under section 124.3201. 

    (d) The instruction that is provided must differ from the 
 initial instruction the pupil received in the regular classroom 
 setting.  The instruction may differ by presenting different 
 curriculum than was initially presented in the regular classroom 
 or by presenting the same curriculum: 

    (1) at a different rate or in a different sequence than it 
 was initially presented; 

    (2) using different teaching methods or techniques than 
 were used initially; or 

    (3) using different instructional materials than were used 
 initially. 

    HIST: 1Sp1997 c 4 art 2 s 12 

     124.312 Targeted needs program revenue. 

    Subdivision 1.    Use of the revenue.  The targeted 
 needs revenue under this section must be used to meet the 
 educational needs of learners whose progress toward meeting 
 state or local content or performance standards is below the 
 level that is appropriate for learners of their age.  Any of the 
 following may be provided to meet these learners needs: 

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

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

    (3) flexible school day or school year programs that enable 
 these learners to improve their achievement or that provide 
 additional learning opportunities outside of the normal school 
 schedule; 

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

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

    (6) programs established under a desegregation plan 
 mandated by the state board or under court order, to increase 
 learning opportunities and reduce the learning gap between 
 learners living in high concentrations of poverty and their 
 peers; 

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

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

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

    Subd. 2.    Building allocation.  A district must 
 consider the concentration of children from low-income families, 
 children with limited English proficiency, and children with 
 disabilities in each school building in the district when 
 allocating targeted needs revenue. 

    Subd. 3.    Separate account.  Targeted needs revenue 
 shall be maintained in a separate account to identify 
 expenditures for salaries and programs related to this revenue. 

    Subd. 4.    Integration revenue.  For fiscal years 1996, 
 1997, and 1998, integration revenue equals the sum of 
 integration aid and integration levy under section 124.912, 
 subdivision 2. 

    Subd. 5.    Integration aid.  For fiscal years 1996, 
 1997, and 1998, integration aid equals the following amounts: 

    (1) for independent school district No. 709, Duluth, 
 $1,385,000; 

    (2) for independent school district No. 625, St. Paul, 
 $8,090,700; and 

    (3) for special school district No. 1, Minneapolis, 
 $9,368,300. 

    HIST: 1Sp1995 c 3 art 15 s 4; 1Sp1997 c 4 art 2 s 13,14 

     124.313 Targeted needs revenue. 

    For fiscal years 1996, 1997, and 1998, a school district's 
 targeted needs revenue equals the sum of: 

    (1) assurance of mastery revenue according to section 
 124.311; plus 

    (2) the district's limited English proficiency revenue 
 computed according to section 124.273, subdivision 1d; plus 

    (3) integration revenue computed according to section 
 124.312, subdivision 4. 

    HIST: 1Sp1995 c 3 art 15 s 5; 1Sp1997 c 4 art 2 s 15 

     124.314 Targeted needs aid and levy. 

    Subdivision 1.    Aid.  For fiscal years 1996, 1997, and 
 1998, a school district's targeted needs aid equals the sum of 
 its assurance of mastery aid according to section 124.311, its 
 limited English proficiency aid according to section 124.273, 
 subdivision 1e, and its integration aid according to section 
 124.312, subdivision 5. 

    Subd. 2.    Levy.  For fiscal years 1996, 1997, and 
 1998, a school district's targeted needs levy equals the sum of 
 its integration levy under section 124.912, subdivision 2, and 
 that portion of its special education levy attributed to the 
 limited English proficiency program. 

    HIST: 1Sp1995 c 3 art 15 s 6; 1996 c 412 art 3 s 18; 1Sp1997 c 
 4 art 2 s 16,17 

     124.315 Integration revenue. 

    Subdivision 1.    Use of the revenue.  Integration 
 revenue under this section must be used for programs established 
 under a desegregation plan mandated by the state board or under 
 court order, to increase learning opportunities and reduce the 
 learning gap between learners living in high concentrations of 
 poverty and their peers. 

    Subd. 2.    Separate account.  Integration revenue shall 
 be maintained in a separate account to identify expenditures for 
 salaries and programs related to this revenue. 

    Subd. 3.    Integration revenue.  For fiscal year 1999 
 and later fiscal years, integration revenue equals the following 
 amounts: 

    (1) for independent school district No. 709, Duluth, $193 
 times the actual pupil units for the school year; 

    (2) for independent school district No. 625, St. Paul, $427 
 times the actual pupil units for the school year; 

    (3) for special school district No. 1, Minneapolis, $523 
 times the actual pupil units for the school year; and 

    (4) for a district not listed in clause (1), (2), or (3) 
 that is required to implement a plan according to the 
 requirements of Minnesota Rules, parts 3535.0200 to 3535.2200, 
 the lesser of the actual cost of implementing the plan during 
 the fiscal year or $93 times the actual pupil units for the 
 school year. 

    Subd. 4.    Integration levy.  A district may levy an 
 amount equal to 46 percent of the district's integration revenue 
 as defined in subdivision 3. 

    Subd. 5.    Integration aid.  A district's integration 
 aid equals 54 percent of the district's integration revenue as 
 defined in subdivision 3. 

    Subd. 6.    Alternative attendance programs.  (a) The 
 integration aid under subdivision 5 must be adjusted for each 
 pupil attending a nonresident district under sections 120.062, 
 120.075, 120.0751, 120.0752, and 124C.45 to 124C.48 if the 
 enrollment of the pupil in the nonresident district contributes 
 to desegregation or integration purposes.  The adjustments must 
 be made according to this subdivision.  

    (b) Aid paid to the district of the pupil's residence must 
 be reduced by an amount equal to the revenue per actual pupil 
 unit of the resident district times the number of actual pupil 
 units attributable to the pupil for the time the pupil is 
 enrolled in a nonresident district. 

    (c) Aid paid to a district serving nonresidents must be 
 increased by an amount equal to the aid reduction to the 
 resident district under paragraphs (b) and (d).  

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

    HIST: 1Sp1997 c 4 art 2 s 18 

     124.32 Children with a disability. 

    Subdivision 1. Repealed, 1983 c 314 art 3 s 18 

    Subd. 1a. Repealed, 1984 c 463 art 3 s 2 

    Subd. 1b. Repealed, 1Sp1995 c 3 art 15 s 27 

    Subd. 1c. Repealed, 1Sp1995 c 3 art 15 s 27 

    Subd. 1d. Repealed, 1Sp1995 c 3 art 15 s 27 

    Subd. 1e. Repealed, 1984 c 463 art 3 s 2 

    Subd. 1f. Repealed, 1Sp1995 c 3 art 15 s 27 

    Subd. 2. Repealed, 1Sp1995 c 3 art 15 s 27 

    Subd. 2a. Repealed, 1984 c 463 art 3 s 2 

    Subd. 2b.    Travel aid.  The state shall pay each 
 district one-half of the sum actually expended by a district for 
 necessary travel of essential personnel providing home-based 
 services to children with a disability under age five and their 
 families. 

    Subd. 3.  Repealed, 1973 c 683 s 30 

    Subd. 3a. Repealed, 1Sp1995 c 3 art 15 s 27 

    Subd. 4.  The aids provided for children with a disability 
 shall be paid to the district providing the special instruction 
 and services.  General education aid shall be paid to the 
 district of the pupil's residence.  The total amount of aid paid 
 may not exceed the amount expended for children with a 
 disability in the year for which the aid is paid. 

    Subd. 5. Repealed, 1993 c 224 art 3 s 40; 1993 c 374 s 
 10 

    Subd. 5a. Repealed, 1984 c 463 art 3 s 2 

    Subd. 6.    Full state payment.  The state shall pay 
 each district the actual cost incurred in providing instruction 
 and services for a child with a disability whose district of 
 residence has been determined by section 120.17, subdivision 8a, 
 and who is temporarily placed in a state institution or a 
 licensed residential facility for care and treatment.  This 
 section does not apply to a child placed in a foster home or a 
 foster group home. 

    Upon following the procedure specified by the commissioner 
 of children, families, and learning, the district may bill the 
 state the actual cost incurred in providing the services 
 including transportation costs and a proportionate amount of 
 capital expenditures and debt service, minus the amount of the 
 basic revenue, as defined in section 124A.22, subdivision 2, of 
 the district for the child and the special education aid, 
 transportation aid, and any other aid earned on behalf of the 
 child.  The limit set forth in subdivision 4 shall apply to aid 
 paid pursuant to this subdivision.  

    To the extent possible, the commissioner shall obtain 
 reimbursement from another state for the cost of serving any 
 child whose parent or guardian resides in that state.  The 
 commissioner may contract with the appropriate authorities of 
 other states to effect reimbursement.  All money received from 
 other states shall be paid to the state treasury and placed in 
 the general fund.  

    Subd. 7.    Program and aid approval.  Before June 1 of 
 each year, each district providing special instruction and 
 services to children with a disability shall submit to the 
 commissioner an application for approval of these programs and 
 their budgets for the next fiscal year.  The application shall 
 include an enumeration of the costs proposed as eligible for 
 state aid pursuant to this section and of the estimated number 
 and grade level of children with a disability in the district 
 who will receive special instruction and services during the 
 regular school year and in summer school programs during the 
 next fiscal year.  The application shall also include any other 
 information deemed necessary by the commissioner for the 
 calculation of state aid and for the evaluation of the necessity 
 of the program, the necessity of the personnel to be employed in 
 the program, for determining the amount which the program will 
 receive from grants from federal funds, or special grants from 
 other state sources, and the program's compliance with the rules 
 and standards of the state board.  The commissioner shall review 
 each application to determine whether the program and the 
 personnel to be employed in the program are actually necessary 
 and essential to meet the district's obligation to provide 
 special instruction and services to children with a disability 
 pursuant to sections 120.17 and 120.1701.  The commissioner 
 shall not approve aid pursuant to this section for any program 
 or for the salary of any personnel determined to be unnecessary 
 or unessential on the basis of this review.  The commissioner 
 may withhold all or any portion of the aid for programs which 
 receive grants from federal funds, or special grants from other 
 state sources.  By August 31 the commissioner shall approve, 
 disapprove or modify each application, and notify each applying 
 district of the action and of the estimated amount of aid for 
 the programs.  The commissioner shall provide procedures for 
 districts to submit additional applications for program and 
 budget approval during the fiscal year, for programs needed to 
 meet any substantial changes in the needs of children with a 
 disability in the district.  Notwithstanding the provisions of 
 section 124.15, the commissioner may modify or withdraw the 
 program or aid approval and withhold aid pursuant to this 
 section without proceeding according to section 124.15 at any 
 time the commissioner determines that the program does not 
 comply with rules of the state board or that any facts 
 concerning the program or its budget differ from the facts in 
 the district's approved application. 

    Subd. 8.  When planning programs for the education of 
 children with a disability in the regular classroom, school 
 districts are encouraged to consider the size of the regular 
 class and to provide the support services necessary to insure 
 successful mainstreaming. 

    Subd. 9. Repealed, 1983 c 314 art 3 s 18 

    Subd. 9a. Repealed, 1Sp1985 c 12 art 3 s 30 

    Subd. 10.    Summer school.  By March 15 of each year, 
 districts shall submit separate applications for program and 
 budget approval for summer school programs.  The review of these 
 applications shall be as provided in subdivision 7.  By May 1 of 
 each year, the commissioner shall approve, disapprove or modify 
 the applications and notify the districts of the action and of 
 the estimated amount of aid for the summer school programs.  

    Subd. 11.  Expired 

    Subd. 12.    Allocation from cooperative centers, service 
 cooperatives, education districts, and intermediate districts. 
  For purposes of this section, a special education 
 cooperative, service cooperative, education district, or an 
 intermediate district shall allocate its approved expenditures 
 for special education programs among participating school 
 districts.  Special education aid for services provided by a 
 cooperative, service cooperative, education district, or 
 intermediate district shall be paid to the participating school 
 districts. 

    HIST: Ex1959 c 71 art 5 s 32; 1961 c 559 s 1; 1965 c 870 s 1; 
 1967 c 853 s 1; 1969 c 913 s 1; 1969 c 981 s 6; 1971 c 25 s 33; 
 1973 c 501 s 3; 1973 c 683 s 14-16; 1975 c 162 s 41; 1975 c 432 
 s 48-50; 1976 c 271 s 52; 1977 c 447 art 3 s 9; 1978 c 764 s 
 58-62; 1979 c 334 art 3 s 6-10; 1981 c 358 art 3 s 11-17; 
 1Sp1981 c 2 s 10,11; 1982 c 548 art 3 s 12-21; 1983 c 314 art 1 
 s 22; art 3 s 9-11; 1Sp1985 c 12 art 3 s 11-17; 1Sp1986 c 1 art 
 9 s 14; 1Sp1986 c 3 art 1 s 17; 1987 c 384 art 2 s 33; 1987 c 
 398 art 3 s 18-21; 1988 c 486 s 41-45; 1989 c 329 art 3 s 7; 
 1991 c 265 art 3 s 7,8,38; 1993 c 224 art 3 s 13-16; 1994 c 647 
 art 13 s 10; 1Sp1995 c 3 art 15 s 7-9; art 16 s 13 

     124.3201 Special education revenue. 

    Subdivision 1.    Definitions.  For the purposes of this 
 section and section 124.321, the definitions in this subdivision 
 apply. 

    (a) "Base year" for fiscal year 1998 and later fiscal years 
 means the second fiscal year preceding the fiscal year for which 
 aid will be paid. 

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

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

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

    (e) "Program growth factor" means 1.00 for fiscal year 2000 
 and later. 

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

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

    Subd. 2.    Special education base revenue.  (a) The 
 special education base revenue equals the sum of the following 
 amounts computed using base year data: 

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

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

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

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

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

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

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

    (b) If requested by a school district operating a special 
 education program during the base year for less than the full 
 school year, the commissioner may adjust the base revenue to 
 reflect the expenditures that would have occurred during the 
 base year had the program been operated for the full school year.

    Subd. 2a. Repealed, 1Sp1997 c 4 art 2 s 52 

    Subd. 2b. Repealed, 1Sp1997 c 4 art 2 s 52 

    Subd. 3.    Adjusted special education base revenue.  
 For fiscal year 1997 and later, a district's adjusted special 
 education base revenue equals the district's special education 
 base revenue times the ratio of the district's average daily 
 membership for the current school year to the district's average 
 daily membership for the base year.  

    Subd. 4.    State total special education revenue.  The 
 state total special education revenue for fiscal year 1998 
 equals $358,542,000.  The state total special education revenue 
 for fiscal year 1999 equals $435,322,000.  The state total 
 special education revenue for later fiscal years equals:  

    (1) the state total special education revenue for the 
 preceding fiscal year; times 

    (2) the program growth factor; times 

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

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

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

    Subd. 6.    Special education aid.  A school district's 
 special education aid for fiscal year 1996 and later equals the 
 district's special education revenue times the aid percentage 
 factor for that year. 

    Subd. 7.    Revenue allocation from cooperative centers 
 and intermediates.  For the purposes of this section and 
 section 124.321, a special education cooperative or an 
 intermediate district shall allocate its approved expenditures 
 for special education programs among participating school 
 districts.  

    HIST: 1Sp1995 c 3 art 15 s 10; art 16 s 13; 1996 c 412 art 3 s 
 19-24; 1997 c 7 art 1 s 54; 1Sp1997 c 4 art 2 s 19-22 

  124.3202 Repealed, 1997 c 7 art 1 s 56 

     124.321 Special education levy equalization revenue. 

    Subdivision 1.    Levy equalization revenue.  (a) For 
 fiscal year 1999, special education levy equalization revenue 
 for a school district, excluding an intermediate school 
 district, equals the sum of the following amounts: 

    (1) the levy percentage factor for that year times the 
 district's special education revenue under section 124.3201; 
 plus 

    (2) the levy percentage factor for that year times the 
 district's special education excess cost revenue under section 
 124.323; plus 

    (3) the levy percentage factor for that year times the 
 district's school-to-work program for children with a disability 
 revenue under section 124.574.  

    Subd. 2.    Revenue allocation from state academies.  (a)
 For purposes of this section, the Minnesota state academy for 
 the deaf or the Minnesota state academy for the blind each year 
 shall allocate an amount equal to the levy percentage factor for 
 that year times their special education revenue under section 
 124.3201 for the year to each school district that assigns a 
 child with an individual education plan requiring an 
 instructional aide to attend either academy.  The school 
 districts that assign a child who requires an instructional aide 
 may make a levy in the amount of the costs allocated to them by 
 either academy. 

    (b) When the Minnesota state academy for the deaf or the 
 Minnesota state academy for the blind allocates revenue among 
 school districts that assign a child who requires an 
 instructional aide, for purposes of the districts making a levy 
 under this subdivision, the academy shall provide information to 
 the department of children, families, and learning on the amount 
 of revenue it allocated to the school districts that assign a 
 child who requires an instructional aide. 

    Subd. 3.    Special education levy.  To receive special 
 education levy revenue, a district may levy an amount equal to 
 the district's special education levy equalization revenue as 
 defined in subdivision 1 multiplied by the lesser of one, or the 
 ratio of: 

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

    (2) $3,540. 

    Subd. 4.    Special education levy equalization aid.  A 
 district's special education levy equalization aid is the 
 difference between its special education levy equalization 
 revenue and its special education levy.  If a district does not 
 levy the entire amount permitted, special education levy 
 equalization aid must be reduced in proportion to the actual 
 amount levied. 

    Subd. 5.    Proration.  In the event that the special 
 education levy equalization aid for any year is prorated, a 
 district having its aid prorated may levy an additional amount 
 equal to the amount not paid by the state due to proration. 

    HIST: 1991 c 265 art 3 s 9; 1993 c 224 art 3 s 17,18; 1993 c 
 374 s 6; 1Sp1995 c 3 art 15 s 12,13; art 16 s 13; 1997 c 7 art 1 
 s 57,58; 1Sp1997 c 4 art 2 s 23; art 11 s 2 

*   NOTE:  The amendment to subdivision 1 by Laws 1997, First 
*Special Session chapter 4, article 2, section 23, is effective 
*for fiscal year 1999.  Laws 1997, First Special Session chapter 
*4, article 2, section 53.

     124.322 Alternative delivery base revenue adjustment. 

    Subdivision 1.    Eligibility.  A district is eligible 
 for an alternative delivery base revenue adjustment if the 
 commissioner of children, families, and learning has approved 
 the application of the district according to section 120.173. 

    Subd. 1a.    Base revenue adjustment.  For the third 
 fiscal year after approval of a district's application, and 
 thereafter, the special education base revenue under section 
 124.3201, subdivision 1, shall be computed based on activities 
 defined as reimbursable under state board rules for special 
 education and nonspecial education students, and additional 
 activities as detailed and approved by the commissioner of 
 children, families, and learning. 

    Subd. 2. Repealed by amendment, 1Sp1995 c 3 art 15 s 14 

    Subd. 3. Repealed by amendment, 1Sp1995 c 3 art 15 s 14 

    Subd. 4. Repealed by amendment, 1Sp1995 c 3 art 15 s 14 

    Subd. 5.    Use of revenue.  Revenue under section 
 124.3201 shall be used to implement the approved program. 

    HIST: 1991 c 265 art 3 s 10; 1993 c 224 art 3 s 19-22; art 14 
 s 11,12; 1Sp1995 c 3 art 15 s 14; art 16 s 13; 1997 c 7 art 1 s 
 59,60 

     124.323 Special education excess cost aid. 

    Subdivision 1.    Definitions.  In this section, the 
 definitions in this subdivision apply. 

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

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

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

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

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

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

    Subd. 2.    Excess cost revenue.  For 1997 and later 
 fiscal years, a district's special education excess cost revenue 
 equals the greatest of: 

    (a) 70 percent of the difference between (1) the district's 
 unreimbursed special education cost and (2) 5.7 percent for 
 fiscal year 1997 and later years of the district's general 
 revenue; 

    (b) 70 percent of the difference between (1) the increase 
 in the district's unreimbursed special education cost between 
 the base year as defined in section 124.3201, subdivision 1, and 
 the current year and (2) 1.6 percent of the district's general 
 revenue; or 

    (c) zero. 

    Subd. 3.    Excess cost aid.  For 1996 and later fiscal 
 years, a district's special education excess cost aid equals the 
 district's special education excess cost revenue times the aid 
 percentage factor for that year. 

    HIST: 1993 c 224 art 3 s 23; 1Sp1995 c 3 art 15 s 15-17; 1996 
 c 412 art 3 s 26,27; 1997 c 7 art 1 s 61; 1Sp1997 c 4 art 2 s 
 24,25 

*   NOTE:  The amendment to subdivision 1 by Laws 1997, First 
*Special Session chapter 4, article 2, section 24, is effective 
*for fiscal year 1999.  Laws 1997, First Special Session chapter 
*4, article 2, section 53.

  124.33 Repealed, 1969 c 981 s 7 

  124.331 Repealed, 1993 c 224 art 3 s 40 

  124.332 Repealed, 1993 c 224 art 3 s 40 

  124.333 Repealed, 1993 c 224 art 3 s 40 

  124.34 Repealed, 1969 c 9 s 97 

     124.35 Loans to distressed districts.  

    Financial aid to distressed districts shall be governed by 
 the provisions of the maximum effort school aid law.  

    HIST: Ex1959 c 71 art 5 s 35 

     124.36 Citation, maximum effort school aid law.  

    Sections 124.36 to 124.46 may be cited as the "maximum 
 effort school aid law."  

    HIST: Ex1959 c 27 s 1; 1994 c 465 art 2 s 1 

     124.37 Policy and purpose. 

    The rates of increase in school population in Minnesota and 
 population shifts and economic changes in recent years, and 
 anticipated in future years, have required and will require 
 large expenditures for performing the duty of the state and its 
 subdivisions to provide a general and uniform system of public 
 schools.  The state policy has been to require these school 
 costs to be borne primarily by the local subdivisions.  In most 
 instances the local subdivisions have been, and will be, able to 
 provide the required funds by local taxation as supplemented by 
 the aids usually given to all school districts from state income 
 tax and other state aids.  There are, however, exceptional cases 
 due to local conditions not found in most other districts where, 
 either temporarily or over a considerable period of years, the 
 costs will exceed the maximum which the local taxpayers can be 
 reasonably expected to bear.  In some districts having bonds of 
 several issues outstanding, debt service tax levy requirements 
 are excessive for some years because of heavy bond principal 
 payments accumulating in some of the years due to overlapping or 
 short term issues.  The policy and purpose of sections 124.36 to 
 124.46 is to utilize the credit of the state, to a limited 
 degree, to relieve those school districts, but only those, where 
 the maximum effort by the district is inadequate to provide the 
 necessary money.  It is also the purpose of sections 124.36 to 
 124.46 to promote efficient use of school buildings.  To that 
 end, a district that receives a maximum effort loan is 
 encouraged to design and use its facility to integrate social 
 services and library services. 

    HIST: Ex1959 c 27 s 2; 1993 c 224 art 5 s 12; 1994 c 465 art 2 
 s 1 

     124.38 Definitions. 

    Subdivision 1.  As used in sections 124.38 to 124.46, the 
 terms defined in this section shall have the following meanings: 

    Subd. 2.  "District" means any school district defined in 
 the education code. 

    Subd. 3.  "Indebtedness" or "debt" means the net debt of 
 any district computed according to section 475.51, subdivision 
 4, excluding loans made under sections 124.36 to 124.46. 

    Subd. 4.  "Debt service fund" means the aggregate of all 
 funds maintained by a district which are appropriated to payment 
 of principal of and interest on its debts as required by chapter 
 475. 

    Subd. 4a.    Levy.  "Levy" means a district's net debt 
 service levy after the reduction of debt service equalization 
 aid under section 124.95, subdivision 5.  For taxes payable in 
 1994 and later, each district's maximum effort debt service levy 
 for purposes of subdivision 7, shall be reduced by an equal 
 number of percentage points if the commissioner determines that 
 the levy reduction will not result in a statewide property tax 
 as would be required under Minnesota Statutes 1992, section 
 124.46, subdivision 3.  A district's levy that is adjusted under 
 this section shall not be reduced below 18.74 percent of the 
 district's adjusted net tax capacity. 

    Subd. 5.  "Debt service levy" means the levy for all debt 
 service fund purposes in accordance with chapter 475. 

    Subd. 6.  "Required debt service levy" means the total 
 dollar amount needed to be included in the taxes levied by the 
 district in any year for payment of interest and principal 
 falling due on its debts prior to collection of the next ensuing 
 year's debt service levy. 

    Subd. 7.    Maximum effort debt service levy.  "Maximum 
 effort debt service levy" means the lesser of: 

    (1) a levy in whichever of the following amounts is 
 applicable: 

    (a) in any school district receiving a debt service loan 
 for a debt service levy payable in 1991 and thereafter, or 
 granted a capital loan after January 1, 1990, a levy in a total 
 dollar amount computed at a rate of 20 percent of adjusted net 
 tax capacity for taxes payable in 1991 and thereafter; 

    (b) in any school district granted a debt service loan 
 after July 31, 1981, or granted a capital loan which is approved 
 after July 31, 1981, a levy in a total dollar amount computed as 
 a tax rate of 13.08 percent on the adjusted gross tax capacity 
 for taxes payable in 1990 or a tax rate of 18.42 percent on the 
 adjusted net tax capacity for taxes payable in 1991 and 
 thereafter; 

    (c) in any school district granted a debt service loan 
 before August 1, 1981, or granted a capital loan which was 
 approved before August 1, 1981, a levy in a total dollar amount 
 computed as a tax rate of 12.26 percent on the adjusted gross 
 tax capacity for taxes payable in 1990 or a tax rate of 17.17 
 percent on the adjusted net tax capacity for taxes payable in 
 1991 and thereafter, until and unless the district receives an 
 additional loan; or 

    (2) a levy in whichever of the following amounts is 
 applicable: 

    (a) in any school district which received a debt service or 
 capital loan from the state before January 1, 1965, a levy in a 
 total dollar amount computed as 4.10 mills on the market value 
 in each year, unless the district applies or has applied for an 
 additional loan subsequent to January 1, 1965, or issues or has 
 issued bonds on the public market, other than bonds refunding 
 state loans, subsequent to January 1, 1967; 

    (b) in any school district granted a debt service or 
 capital loan between January 1, 1965, and July 1, 1969, a levy 
 in a total dollar amount computed as 5-1/2 mills on the market 
 value in each year, until and unless the district receives an 
 additional loan; 

    (c) in any school district granted a debt service or 
 capital loan between July 1, 1969, and July 1, 1975, a levy in a 
 total dollar amount computed as 6.3 mills on market value in 
 each year until and unless the district has received an 
 additional loan; 

    (d) in any school district for which a capital loan was 
 approved prior to August 1, 1981, a levy in a total dollar 
 amount equal to the sum of the amount of the required debt 
 service levy and an amount which when levied annually will in 
 the opinion of the commissioner be sufficient to retire the 
 remaining interest and principal on any outstanding loans from 
 the state within 30 years of the original date when the capital 
 loan was granted; provided, that the school board in any 
 district affected by the provisions of clause (2)(d) may elect 
 instead to determine the amount of its levy according to the 
 provisions of clause (1); provided further that if a district's 
 capital loan is not paid within 30 years because it elects to 
 determine the amount of its levy according to the provisions of 
 clause (2)(d), the liability of the district for the amount of 
 the difference between the amount it levied under clause (2)(d) 
 and the amount it would have levied under clause (1), and for 
 interest on the amount of that difference, shall not be 
 satisfied and discharged pursuant to Minnesota Statutes 1988, or 
 an earlier edition of Minnesota Statutes if applicable, section 
 124.43, subdivision 4. 

    Subd. 8.  "Adjusted net tax capacity" means, as of any 
 date, the net tax capacity of all taxable property most recently 
 determined by the commissioner of revenue in accordance with the 
 provisions of section 124.2131.  "Market value" means the value 
 of all taxable property in the district on which its net debt 
 limit is based as provided in section 475.53, subdivision 4.  

    Subd. 9.  "Commissioner" means the commissioner of 
 children, families, and learning. 

    Subd. 10. Repealed, 1987 c 268 art 7 s 55 

    Subd. 11.  "Fund" means the "maximum effort school loan 
 fund." 

    Subd. 12.  "School loan bonds" means bonds issued by the 
 state under section 124.46 to support the fund and to refund 
 bonds or certificates of indebtedness previously issued for that 
 purpose. 

    Subd. 13.  "Net proceeds" of bonds means the amounts 
 received upon their sale less expenses incident to their 
 issuance, sale, and delivery and the amount required to pay and 
 redeem any bonds or certificates of indebtedness refunded 
 thereby. 

    Subd. 14.  "Year" means the school year ending on and 
 including June 30 in each calendar year. 

    HIST: Ex1959 c 27 s 3; 1961 c 562 s 4,5; 1963 c 601 s 1; 1965 
 c 875 s 1,2; 1967 c 583 s 1; 1969 c 6 s 21; 1969 c 1056 s 1,2; 
 1973 c 773 s 1; 1975 c 432 s 51-54; 1977 c 447 art 6 s 5; 1978 c 
 706 s 33; 1978 c 764 s 63; 1980 c 545 s 1; 1981 c 358 art 1 s 
 48; art 9 s 1; 1982 c 548 art 6 s 17; 1987 c 268 art 7 s 11; 
 1988 c 719 art 5 s 84; 1989 c 329 art 13 s 2,20; 1Sp1989 c 1 art 
 2 s 11; 1990 c 562 art 11 s 2; 1993 c 224 art 5 s 13; 1994 c 465 
 art 2 s 1; 1Sp1995 c 3 art 16 s 13 

     124.381 Net debt, determination.  

    In computing "net debt" and in determining whether any 
 school district is eligible for a state loan, no state loans to 
 any such school district shall be considered, notwithstanding 
 the provisions of any other general or special law.  

    HIST: 1967 c 583 s 7 

     124.39 Fund established; division into accounts. 

    Subdivision 1.  There shall be maintained in the state 
 treasury a "maximum effort school loan fund" for administration 
 of moneys to be received and disbursed as authorized and 
 required by sections 124.36 to 124.46, which fund shall be 
 divided into three accounts for the purposes specified in 
 subdivisions 2, 3, 4, and 5.  

    Subd. 2.  There shall be a debt service loan account, out 
 of which loans under section 124.42 shall be made.  All money 
 appropriated to the fund by section 124.40 shall be paid into 
 this account initially.  

    Subd. 3.  There shall be a capital loan account, out of 
 which loans under section 124.431 shall be made.  There shall be 
 transferred to it from the debt service loan account on November 
 1 of each year all moneys therein in excess of those required 
 for debt service loans then agreed to be made.  There shall be 
 transferred from it to the debt service loan account on July 1 
 of each year all moneys therein in excess of those required for 
 capital loans theretofore agreed to be made.  

    Subd. 4.  There shall be a loan repayment account, into 
 which shall be paid all principal and interest paid by school 
 districts on debt service loans and capital loans made under 
 section 124.42 or 124.431.  The state's cost of administering 
 the maximum effort school aid law shall be paid out of this 
 account, to an amount not exceeding $10,000 in any year.  As 
 soon as possible in each year after the committee has determined 
 the ratio existing between the correct market value of all 
 taxable property in each school district in the state and the 
 "market value in money" of such property as recorded in 
 accordance with section 270.13, the commissioner of revenue 
 shall cause a list of all such ratios to be prepared.  The 
 clerical costs of preparation of such list shall be paid as a 
 cost of administration of the maximum effort school aid law.  
 The documents division of the department of administration may 
 publish and sell copies of such list.  There shall be 
 transferred out of the loan repayment account to the state bond 
 fund the sums required to pay the principal of and interest on 
 all school loan bonds as provided in section 124.46. 

    Subd. 5.  The commissioner shall transfer from the loan 
 repayment account to the credit of the debt service loan account 
 on November 1 of each year all money deposited to the credit of 
 the loan repayment account that will not be required for the 
 payment of principal and interest and costs as prescribed in 
 subdivision 4 but that will be needed for debt service loans in 
 the fiscal year beginning July 1, and those moneys are annually 
 appropriated to that account for the purposes prescribed by the 
 maximum effort school aid law.  Money deposited to the credit of 
 the loan repayment account and not required for the transfers or 
 for the payment of principal and interest due on school loan 
 bonds may be invested and reinvested in securities which are 
 general obligations of the United States or the state of 
 Minnesota.  When all school loan bonds have been fully paid with 
 interest accrued thereon, the balance remaining in the account 
 shall be transferred to the state bond fund. 

    HIST: Ex1959 c 27 s 4; 1961 c 752 s 1,2; 1963 c 601 s 2; 1965 
 c 875 s 3; 1973 c 582 s 3; 1975 c 339 s 8; 1981 c 358 art 9 s 2; 
 1990 c 562 art 11 s 3,4; 1991 c 45 s 1,2; 1994 c 465 art 2 s 1 

     124.40 Appropriation. 

    Subdivision 1.  There is hereby appropriated to the fund, 
 in addition to all sums which have been or may hereafter be 
 appropriated thereto by any law, the net proceeds of sale of any 
 state school loan bonds authorized to be issued under section 
 124.46, and all income received from the investment of said net 
 proceeds is hereby appropriated to the school loan bond account 
 in the state bond fund. 

    Subd. 2.  Any amounts remaining in the fund on July 1 of 
 each year, including any unused portion of the appropriation 
 made in subdivision 1, shall be available for use by the 
 commissioner in making further debt service loans and capital 
 loans. 

    Subd. 3.  All payments of principal and interest on debt 
 service notes or capital loan contracts, as received by the 
 commissioner, are hereby appropriated to the loan repayment 
 account.  

    HIST: Ex1959 c 27 s 5; 1963 c 601 s 3; 1967 c 583 s 2; 1981 c 
 358 art 9 s 3; 1991 c 45 s 3 

     124.41 School loans. 

    Subdivision 1.    Consideration by commissioner.  The 
 commissioner shall receive and consider applications for and 
 grant or deny loans under sections 124.36 to 124.46. 

    Subd. 2.    Application forms; rules.  The commissioner, 
 with the assistance of the attorney general or a designated 
 assistant, shall prepare forms of applications for debt service 
 loans and capital loans and instruments evidencing the loans.  
 The state board shall promulgate rules to facilitate the 
 commissioner's operations in compliance with sections 124.36 to 
 124.46.  The rules shall be subject to chapter 14. 

    Subd. 3.    Clerk.  The commissioner may employ a clerk 
 to administer the maximum effort school aid law.  The 
 commissioner may fix the clerk's compensation, which shall be 
 paid out of the loan repayment account of the fund. 

    HIST: Ex1959 c 27 s 6; 1961 c 562 s 6; 1969 c 6 s 22; 1973 c 
 582 s 3; 1975 c 61 s 9; 1975 c 162 s 30; 1976 c 2 s 60; 1978 c 
 706 s 34; 1981 c 358 art 9 s 4; 1982 c 424 s 130; 1982 c 560 s 
 44; 1986 c 444; 1994 c 465 art 2 s 1; 1995 c 233 art 2 s 56; 
 1997 c 187 art 5 s 16 

     124.42 Debt service loans. 

    Subdivision 1.    Qualification; application; award; 
 interest.  Any school district in which the required levy for 
 debt service in any year will exceed its maximum effort debt 
 service levy by ten percent or by $5,000, whichever is less, is 
 qualified for a debt service loan hereunder in an amount not 
 exceeding the amount applied for, and not exceeding one percent 
 of the net debt of the district, and not exceeding the 
 difference between the required and the maximum effort debt 
 service levy in that year.  Applications shall be filed with the 
 commissioner in each calendar year up to and including July 1.  
 The commissioner shall determine whether the applicant is 
 entitled to a loan and the amount thereof, and on or before 
 October 1 shall certify to each applicant district the amount 
 granted and its due date.  The commissioner shall notify the 
 county auditor of each county in which the district is located 
 that the amount certified is available and appropriated for 
 payment of principal and interest on its outstanding bonds, and 
 the auditors shall reduce by that amount the taxes otherwise 
 leviable as the district's debt service levy on the tax rolls 
 for that year.  Each debt service loan shall bear interest from 
 its date at a rate equal to the average annual rate payable on 
 Minnesota state school loan bonds most recently issued prior to 
 the disbursement of the loan to the district, but in no event 
 less than 3-1/2 percent per annum on the principal amount from 
 time to time remaining unpaid, payable on December 15 of the 
 year following that in which the loan is received and annually 
 thereafter. 

    Subd. 2.    Note.  Each debt service loan shall be 
 evidenced by a note which shall be executed on behalf of the 
 district by the signatures of its chair or vice-chair and the 
 school district clerk, shall be dated November 1 of the year in 
 which executed, and shall state its principal amount, interest 
 rate, and that it is payable at the commissioner's office.  It 
 shall have printed thereon, or the commissioner shall attach 
 thereto, a grill for entry of the date and amount of each 
 payment and allocations of each payment to accrued interest or 
 principal, and a certificate to be executed by the county 
 auditor of each county in which any portion of the school 
 district is situated, prior to the delivery of the note, stating 
 that the county auditor has entered the debt service loan 
 evidenced thereby in the auditor's bond register.  The notes 
 shall be delivered to the commissioner not later than November 
 15 of the year in which executed.  The commissioner shall cause 
 a record to be made and preserved showing the obligor district 
 and the date and principal amount of each note.  

    Subd. 3.  The commissioner shall issue to each district 
 whose note has been so received a warrant on the debt service 
 loan account of the maximum effort school loan fund, payable on 
 presentation to the state treasurer out of any money in such 
 account.  The warrant shall be issued by the commissioner in 
 sufficient time to coincide with the next date on which the 
 district is obligated to make principal or interest payments on 
 its bonded debt in the ensuing year.  Interest shall accrue from 
 the date such warrant is issued.  The proceeds thereof shall be 
 used by the district to pay principal or interest on its bonded 
 debt falling due in the ensuing year.  

    Subd. 4.  Each district receiving a debt service loan shall 
 levy for debt service in that year and each year thereafter, 
 until all its debts to the fund are paid, (a) the amount of its 
 maximum effort debt service levy, or (b) the amount of its 
 required debt service levy less the amount of any debt service 
 loan in that year, whichever is greater.  The district shall 
 remit payments to the commissioner according to section 124.45.  
 On or before September 30 in each year the commissioner shall 
 notify the county auditor of each county containing taxable 
 property situated within the school district of the amount of 
 the maximum effort debt service levy of the district for that 
 year, and said county auditor or auditors shall extend upon the 
 tax rolls an ad valorem tax upon all taxable property within the 
 district in the aggregate amount so certified.  

    HIST: Ex1959 c 27 s 7; 1961 c 752 s 3,4; 1965 c 875 s 4,5; 
 1969 c 1056 s 3,4; 1973 c 492 s 14; 1975 c 432 s 55-57; 1981 c 
 358 art 9 s 5,6; 1986 c 444; 1989 c 271 s 29; 1Sp1989 c 1 art 9 
 s 2,3; 1Sp1997 c 4 art 4 s 12 

  124.43 Repealed, 1990 c 562 art 11 s 11 

     124.431 Capital loans. 

    Subdivision 1.    Capital loan requests and uses.  
 Capital loans are available only to qualifying districts.  
 Capital loans must not be used for the construction of swimming 
 pools, ice arenas, athletic facilities, auditoriums, bus 
 garages, or heating system improvements.  Proceeds of the loans 
 may be used only for sites for education facilities and for 
 acquiring, bettering, furnishing, or equipping education 
 facilities.  Contracts must be entered into within 18 months 
 after the date on which each loan is granted.  For purposes of 
 this section, "education facilities" includes space for Head 
 Start programs and social service programs. 

    Subd. 1a.    Capital loans eligibility.  Beginning July 
 1, 1992, a district is not eligible for a capital loan unless 
 the district's estimated net debt tax rate as computed by the 
 commissioner after debt service equalization aid would be more 
 than 20 percent of adjusted net tax capacity.  The estimate must 
 assume a 20-year maturity schedule for new debt. 

    Subd. 2.    District request for review and comment.  A 
 school district or a joint powers district that intends to apply 
 for a capital loan must submit a proposal to the commissioner 
 for review and comment according to section 121.15 on or before 
 July 1 of an odd-numbered year.  The commissioner must prepare a 
 review and comment on the proposed facility, regardless of the 
 amount of the capital expenditure required to construct the 
 facility.  In addition to the information provided under section 
 121.15, subdivision 7, the commissioner shall require that 
 predesign packages comparable to those required under section 
 16B.335 be prepared by the applicant school district.  The 
 predesign packages must be sufficient to define the scope, cost, 
 and schedule of the project and must demonstrate that the 
 project has been analyzed according to appropriate space needs 
 standards and also consider the following criteria in 
 determining whether to make a positive review and comment.  

    (a) To grant a positive review and comment the commissioner 
 must determine that all of the following conditions are met: 

    (1) the facilities are needed for pupils for whom no 
 adequate facilities exist or will exist; 

    (2) the district will serve, on average, at least 80 pupils 
 per grade or is eligible for elementary or secondary sparsity 
 revenue; 

    (3) no form of cooperation with another district would 
 provide the necessary facilities; 

    (4) the facilities are comparable in size and quality to 
 facilities recently constructed in other districts that have 
 similar enrollments; 

    (5) the facilities are comparable in size and quality to 
 facilities recently constructed in other districts that are 
 financed without a capital loan; 

    (6) the district is projected to maintain or increase its 
 average daily membership over the next five years or is eligible 
 for elementary or secondary sparsity revenue; 

    (7) the current facility poses a threat to the life, 
 health, and safety of pupils, and cannot reasonably be brought 
 into compliance with fire, health, or life safety codes; 

    (8) the district has made a good faith effort, as evidenced 
 by its maintenance expenditures, to adequately maintain the 
 existing facility during the previous ten years and to comply 
 with fire, health, and life safety codes and state and federal 
 requirements for handicapped accessibility; 

    (9) the district has made a good faith effort to encourage 
 integration of social service programs within the new facility; 
 and 

    (10) evaluations by school boards of adjacent districts 
 have been received. 

    (b) The commissioner may grant a negative review and 
 comment if: 

    (1) the state demographer has examined the population of 
 the communities to be served by the facility and determined that 
 the communities have not grown during the previous five years; 

    (2) the state demographer determines that the economic and 
 population bases of the communities to be served by the facility 
 are not likely to grow or to remain at a level sufficient, 
 during the next ten years, to ensure use of the entire facility; 

    (3) the need for facilities could be met within the 
 district or adjacent districts at a comparable cost by leasing, 
 repairing, remodeling, or sharing existing facilities or by 
 using temporary facilities; 

    (4) the district plans do not include cooperation and 
 collaboration with health and human services agencies and other 
 political subdivisions; or 

    (5) if the application is for new construction, an existing 
 facility that would meet the district's needs could be purchased 
 at a comparable cost from any other source within the area. 

    Subd. 3.    Multiple district proposals; review and 
 comment.  In addition to the requirements of subdivision 2, 
 the commissioner may use additional requirements to determine a 
 positive review and comment on projects that are designed to 
 serve more than one district.  These requirements may include:  

    (1) reducing or increasing the number of districts that 
 plan to use the facility; 

    (2) location of the facility; and 

    (3) formation of a joint powers agreement among the 
 participating districts.  

    Subd. 4.    Adjacent district comments.  The district 
 shall present the proposed project to the school board of each 
 adjacent district at a public meeting of that district.  The 
 board of an adjacent district shall make a written evaluation of 
 how the project will affect the future education and building 
 needs of the adjacent district.  The board shall submit the 
 evaluation to the applying district within 30 days of the 
 meeting. 

    Subd. 5.    District application for capital loan.  The 
 school board of a district desiring a capital loan shall adopt a 
 resolution stating the amount proposed to be borrowed, the 
 purpose for which the debt is to be incurred, and an estimate of 
 the dates when the facilities for which the loan is requested 
 will be contracted for and completed.  Applications for loans 
 must be accompanied by a copy of the adopted board resolution 
 and copies of the adjacent district evaluations.  The evaluation 
 shall be retained by the commissioner as part of a permanent 
 record of the district submitting the evaluation. 

    Applications must be in the form and accompanied by the 
 additional data required by the commissioner.  Applications must 
 be received by the commissioner by September 1 of an 
 odd-numbered year.  A district must resubmit an application each 
 odd-numbered year.  Capital loan applications that do not 
 receive voter approval or are not approved in law cancel July 1 
 of the year following application.  When an application is 
 received, the commissioner shall obtain from the commissioner of 
 revenue the information in the revenue department's official 
 records that is required to be used in computing the debt limit 
 of the district under section 475.53, subdivision 4. 

    Subd. 6.    State board review; district proposals.  By 
 November 1 of each odd-numbered year, the state board must 
 review all applications for capital loans that have received a 
 positive review and comment.  When reviewing applications, the 
 state board shall consider whether the criteria in subdivision 2 
 have been met.  The state board may not approve an application 
 if all of the required deadlines have not been met.  The state 
 board may either approve or reject an application for a capital 
 loan. 

    Subd. 7.    Recommendations of the commissioner.  The 
 commissioner shall examine and consider applications for capital 
 loans that have been approved by the state board of education, 
 and promptly notify any district rejected by the state board of 
 the state board's decision.  

    The commissioner shall report each capital loan that has 
 been approved by the state board and that has received voter 
 approval to the education committees of the legislature by 
 January 1 of each even-numbered year.  The commissioner must not 
 report a capital loan that has not received voter approval.  The 
 commissioner shall also report on the money remaining in the 
 capital loan account and, if necessary, request that another 
 bond issue be authorized. 

    Subd. 8.    Loan amount limits.  (a) A loan must not be 
 recommended for approval for a district exceeding an amount 
 computed as follows: 

    (1) the amount requested by the district under subdivision 
 5; 

    (2) plus the aggregate principal amount of general 
 obligation bonds of the district outstanding on June 30 of the 
 year following the year the application was received, not 
 exceeding the limitation on net debt of the district in section 
 475.53, subdivision 4, or 305 percent of its adjusted net tax 
 capacity as most recently determined, whichever is less; 

    (3) less the maximum net debt permissible for the district 
 on December 1 of the year the application is received, under the 
 limitation in section 475.53, subdivision 4, or 305 percent of 
 its adjusted net tax capacity as most recently determined, 
 whichever is less; 

    (4) less any amount by which the amount voted exceeds the 
 total cost of the facilities for which the loan is granted.  

    (b) The loan may be approved in an amount computed as 
 provided in paragraph (a), clauses (1) to (3), subject to later 
 reduction according to paragraph (a), clause (4). 

    Subd. 9.    Legislative action.  Each capital loan must 
 be approved in a law. 

    If the aggregate amount of the capital loans exceeds the 
 amount that is or can be made available, the commissioner shall 
 allot the available amount among any number of qualified 
 applicant districts, according to the commissioner's judgment 
 and discretion, based upon the districts' respective needs. 

    Subd. 10.    District referendum.  After receipt of the 
 review and comment on the project and before January 1 of the 
 even-numbered year, the question authorizing the borrowing of 
 money for the facilities must be submitted by the school board 
 to the voters of the district at a regular or special election.  
 The question submitted must state the total amount to be 
 borrowed from all sources.  Approval of a majority of those 
 voting on the question is sufficient to authorize the issuance 
 of the obligations on public sale in accordance with chapter 
 475.  The face of the ballot must include the following 
 statement:  "APPROVAL OF THIS QUESTION DOES NOT GUARANTEE THAT 
 THE SCHOOL DISTRICT WILL RECEIVE A CAPITAL LOAN FROM THE STATE.  
 THE LOAN MUST BE APPROVED BY THE STATE LEGISLATURE AND IS 
 DEPENDENT ON AVAILABLE FUNDING."  The district shall mail to the 
 commissioner of children, families, and learning a certificate 
 by the clerk showing the vote at the election. 

    Subd. 11.    Contract.  (a) Each capital loan must be 
 evidenced by a contract between the school district and the 
 state acting through the commissioner.  The contract must 
 obligate the state to reimburse the district, from the maximum 
 effort school loan fund, for eligible capital expenses for 
 construction of the facility for which the loan is granted, an 
 amount computed as provided in subdivision 8.  The commissioner 
 must receive from the school district a certified resolution of 
 the school board estimating the costs of construction and 
 reciting that contracts for construction of the facilities for 
 which the loan is granted have been awarded and that bonds of 
 the district have been issued and sold in the amount necessary 
 to pay all estimated costs of construction in excess of the 
 amount of the loan.  The contract must obligate the district to 
 repay the loan out of the excesses of its maximum effort debt 
 service levy over its required debt service levy, including 
 interest at a rate equal to the weighted average annual rate 
 payable on Minnesota state school loan bonds issued for the 
 project and disbursed to the districts on a reimbursement basis, 
 but in no event less than 3-1/2 percent per year on the 
 principal amount from time to time unpaid. 

    (b) The district shall each year, as long as it is indebted 
 to the state, levy for debt service (i) the amount of its 
 maximum effort debt service levy or (ii) the amount of its 
 required debt service levy, whichever is greater, except as the 
 required debt service levy may be reduced by a loan under 
 section 124.42.  The district shall remit payments to the 
 commissioner according to section 124.45. 

    (c) The commissioner shall supervise the collection of 
 outstanding accounts due the fund and may, by notice to the 
 proper county auditor, require the maximum levy to be made as 
 required in this subdivision.  Interest on capital loans must be 
 paid on December 15 of the year after the year the loan is 
 granted and annually in later years.  On or before September 30 
 in each year the commissioner shall notify the county auditor of 
 each county containing taxable property situated within the 
 school district of the amount of the maximum effort debt service 
 levy of the district for that year.  The county auditor or 
 auditors shall extend upon the tax rolls an ad valorem tax upon 
 all taxable property within the district in the aggregate amount 
 so certified. 

    Subd. 12.    Loan forgiveness.  If any capital loan is 
 not paid within 50 years after it is granted from maximum effort 
 debt service levies in excess of required debt service levies, 
 the liability of the school district on the loan is satisfied 
 and discharged and interest on the loan ceases. 

    Subd. 13.    Participation by county auditor; record of 
 contract; payment of loan.  The school district shall file a 
 copy of the capital loan contract with the county auditor of 
 each county in which any part of the district is situated.  The 
 county auditor shall enter the capital loan, evidenced by the 
 contract, in the auditor's bond register.  The commissioner 
 shall keep a record of each capital loan and contract showing 
 the name and address of the district, the date of the contract, 
 and the amount of the loan initially approved.  On receipt of 
 the resolution required in subdivision 11, the commissioner 
 shall issue warrants, which may be dispersed in accordance with 
 the schedule in the contract, on the capital loan account for 
 the amount that may be disbursed under subdivision 1.  Interest 
 on each disbursement of the capital loan amount accrues from the 
 date on which the state treasurer issues the warrant. 

    Subd. 14.    Bond sale limitations.  A district having 
 an outstanding state loan must not issue and sell any bonds on 
 the public market, except to refund state loans, unless it 
 agrees to make the maximum effort debt service levy in each 
 later year at the higher rate provided in section 124.38, 
 subdivision 7, and unless it schedules the maturities of the 
 bonds according to section 475.54, subdivision 2.  A district 
 that refunds bonds at a lower interest rate may continue to make 
 the maximum effort debt service levy in each later year at the 
 current rate provided in section 124.38, subdivision 7, if the 
 district can demonstrate to the commissioner's satisfaction that 
 the district's repayments of the state loan will not be reduced 
 below the previous year's level.  The district shall report each 
 sale to the commissioner of children, families, and learning. 

    After a district's capital loan has been outstanding for 20 
 years, the district must not issue bonds on the public market 
 except to refund the loan. 

    HIST: 1990 c 562 art 11 s 5; 1992 c 499 art 5 s 6; 1993 c 224 
 art 5 s 14-17; 1Sp1995 c 2 art 1 s 27-31; 1Sp1995 c 3 art 1 s 
 16; art 16 s 13; 1Sp1997 c 4 art 4 s 13,14 

  124.435 Repealed, 1988 c 718 art 8 s 27 

     124.44 Prepayments.  

    Any school district may at any time pay the entire 
 principal or part thereof and interest then due on a note or 
 contract held by the state, out of any moneys not needed for 
 school purposes, and may issue and sell its refunding bonds in 
 accordance with chapter 475, for such purpose, by actions of its 
 school board and without the necessity of a vote by its 
 electors, if such refunding bonds plus its net debt does not 
 exceed the debt limit prescribed by said chapter 475.  Any such 
 refunding bonds may bear interest at a rate or rates higher or 
 lower than the rate payable on the loan or loans refunded 
 thereby.  

    HIST: Ex1959 c 27 s 9; 1961 c 752 s 7 

     124.45 Payment and applications of payment. 

    Subdivision 1.    Payment.  (a) On November 20 of each 
 year, each district having an outstanding capital loan or debt 
 service loan shall compute the excess amount in the debt 
 redemption fund.  The commissioner shall prescribe the form and 
 calculation to be used in computing the excess amount.  A 
 completed copy of this form shall be sent to the commissioner 
 before December 1 of each year.  The commissioner may recompute 
 the excess amount and shall promptly notify the district of the 
 recomputed amount. 

    (b) On December 15 of each year, the district shall remit 
 to the commissioner an amount equal to the greater of: 

    (i) the excess amount in the debt redemption fund; or 

    (ii) the amount by which the maximum effort debt service 
 levy exceeds the required debt service levy for that calendar 
 year. 

 Any late payments shall be assessed an interest charge using the 
 interest rates specified for the debt service notes and capital 
 loan contracts. 

    (c) If a payment required under the maximum effort school 
 aid law is not made within 30 days, the commissioner may reduce 
 any subsequent payments due the district under chapters 124 and 
 124A by the amount due, after providing written notice to the 
 district. 

    Subd. 2.    Application of payments.  The commissioner 
 shall apply payments received under the maximum effort school 
 aid law and aids withheld according to subdivision 1, paragraph 
 (b), as follows:  First, to payment of interest accrued on its 
 notes, if any; second, to interest on its contracts, if any; 
 third, toward principal of its notes, if any; and last, toward 
 principal of its contracts, if any.  While more than one note or 
 more than one contract is held, priority of payment of interest 
 shall be given to the one of earliest date, and after interest 
 accrued on all notes is paid, similar priority shall be given in 
 the application of any remaining amount to the payment of 
 principal.  In any year when the receipts from a district are 
 not sufficient to pay the interest accrued on any of its notes 
 or contracts, the deficiency shall be added to the principal, 
 and the commissioner shall notify the district and each county 
 auditor concerned of the new amount of principal of the note or 
 contract.  

    HIST: Ex1959 c 27 s 10; 1975 c 432 s 62; 1Sp1997 c 4 art 4 s 
 15 

     124.46 Issuance and sale of bonds. 

    Subdivision 1.  On or before October 1 in each year, the 
 commissioner shall certify to the commissioner of finance the 
 amount anticipated to be needed for debt service loans and 
 capital loans to be made under the maximum effort school aid law 
 prior to October 1 in the following year.  Each such 
 certification of the commissioner shall also state an estimate 
 of the dates and amounts the certified amount will be needed in 
 the maximum effort school loan fund and an estimate as to the 
 years and amounts in which payments on debt service loans and 
 capital loans will be received.  

    Subd. 2.  Upon receipt of each such certification, subject 
 to authorization as provided in subdivision 4, the commissioner 
 of finance shall from time to time as needed issue and sell 
 state of Minnesota school loan bonds in the aggregate principal 
 amount stated in the commissioner's certificate, for the prompt 
 and full payment of which, with the interest thereon, the full 
 faith, credit, and taxing powers of the state are hereby 
 irrevocably pledged, and shall credit the net proceeds of their 
 sale to the purposes for which they are appropriated by section 
 124.40, subdivision 1.  Such bonds shall be issued and sold at 
 such price, in such manner, in such number of series, at such 
 times, and in such form and denominations, shall bear such dates 
 of issue and of maturity, either without option of prior 
 redemption or subject to prepayment upon such notice and at such 
 times and prices, shall bear interest at such rate or rates and 
 payable at such intervals, shall be payable at such bank or 
 banks within or without the state, with such provisions for 
 registration, conversion, and exchange, and for the issuance of 
 notes in anticipation of the sale and delivery of definitive 
 bonds, and in accordance with such further provisions as the 
 commissioner of finance shall determine subject to the 
 limitations stated in this subdivision (but not subject to 
 chapter 14, including section 14.386).  The maturity date shall 
 in no case be more than 20 years after the date of issue of any 
 bond and the principal amounts and due dates shall conform as 
 near as may be with the commissioner's estimates of dates and 
 amounts of payments to be received on debt service and capital 
 loans.  The bonds and any interest coupons appurtenant to them 
 shall be executed by the commissioner of finance and attested by 
 the state treasurer under their official seals.  The signatures 
 of these officers and their seals may be printed, lithographed, 
 stamped, engraved, or otherwise reproduced thereon.  Each bond 
 shall be authenticated by the manual signature on its face of 
 one of the officers or a person authorized to sign on behalf of 
 a bank or trust company designated by the commissioner to act as 
 registrar or other authenticating agent.  The commissioner of 
 finance is authorized and directed to ascertain and certify to 
 purchasers of the bonds the performance and existence of all 
 acts, conditions, and things necessary to make them valid and 
 binding general obligations of the state of Minnesota in 
 accordance with their terms.  

    Subd. 3.  The commissioner of finance shall maintain a 
 separate school loan bond account in the state bond fund, 
 showing all money transferred to that fund for the payment of 
 school loan bonds and all income received from the investment of 
 such money.  On the first day of December in each year there 
 shall be transferred to the bond account all or so much of the 
 money then on hand in the loan repayment account in the maximum 
 effort school loan fund as will be sufficient, with the balance 
 then on hand in said bond account, to pay all principal and 
 interest then and theretofore due and to become due within the 
 next ensuing year and to and including July 1 in the second 
 ensuing year on school loan bonds issued and sold pursuant to 
 this section.  In the event that moneys are not available for 
 such transfer in the full amount required, and if any principal 
 or interest on school loan bonds should become due at any time 
 when there is not on hand a sufficient amount from any of the 
 sources herein appropriated for the payment thereof, the moneys 
 shall be paid out of the general fund in the state treasury 
 according to section 16A.641, and the amount necessary therefor 
 is hereby appropriated. 

    Subd. 4.  Bonds shall be issued pursuant to this section 
 only when authorized by a law specifying the purpose thereof and 
 the maximum amount of the proceeds authorized to be expended for 
 that purpose.  Any act authorizing the issuance of bonds in the 
 manner provided in this section shall, together with this 
 section, constitute complete authority for the issue, and the 
 bonds shall not be subject to the restrictions or limitations 
 contained in any other law.  Bonds issued pursuant hereto may be 
 sold at public or private sale and shall be deemed "authorized 
 securities" within the provisions of section 50.14 and acts 
 amendatory thereof or supplemental thereto. 

    HIST: Ex1959 c 27 s 12; 1963 c 601 s 4; 1965 c 875 s 13; 1969 
 c 399 s 49; 1973 c 492 s 14; 1980 c 509 s 34; 1980 c 607 art 14 
 s 29; 1982 c 424 s 130; 1983 c 301 s 135; 1Sp1985 c 14 art 4 s 
 22; 1986 c 444; 1991 c 45 s 4; 1994 c 647 art 5 s 4; 1995 c 233 
 art 2 s 56; 1997 c 187 art 5 s 17 

  124.47 Repealed, 1991 c 199 art 2 s 29 

  124.471 Repealed, 1Sp1985 c 13 s 376 

     124.472 Bond issue, maximum effort school loans; 1965. 

    For the purpose of providing money to be loaned to school 
 districts as agencies and political subdivisions of the state 
 for the acquisition and betterment of public land and buildings 
 and other public improvements of a capital nature, in the manner 
 provided by the maximum effort school aid law, the state auditor 
 is directed to issue and sell school loan bonds of the state of 
 Minnesota in the maximum amount of $10,400,000, which amount is 
 appropriated to the maximum effort school loan fund and shall be 
 expended under the direction of the school loan committee for 
 the making of debt service loans and capital loans to school 
 districts as provided in sections 124.36 to 124.46.  These bonds 
 shall be issued and sold and provision for the payment thereof 
 shall be made in accordance with section 124.46, and an amount 
 sufficient to pay interest on the bonds to and including July 1 
 in the second year after the date of issue shall be credited 
 from the bond proceeds to the school loan bond account in the 
 state bond fund.  Any expenses incidental to the sale, printing, 
 execution, and delivery of the bonds, including, but without 
 limitation, actual and necessary travel and subsistence expenses 
 of state officers and employees for such purposes, shall be paid 
 from the maximum effort school loan fund, and the amounts 
 necessary therefor are appropriated from such fund. 

    HIST: 1965 c 875 s 14; 1987 c 384 art 2 s 34; 1994 c 465 art 2 
 s 1 

     124.473 Bond issue, maximum effort school loans; 1967.  

    For the purpose of providing moneys to be loaned to school 
 districts as agencies and political subdivisions of the state 
 for the acquisition and betterment of public land and buildings 
 and other public improvements of a capital nature, in the manner 
 provided by the maximum effort school aid law, the state auditor 
 is directed to issue and sell school loan bonds of the state of 
 Minnesota in the maximum amount of $2,800,000, in addition to 
 the bonds heretofore authorized for this purpose, which amount 
 is appropriated to the maximum effort school loan fund and shall 
 be expended under the direction of the school loan committee for 
 the making of debt service loans and capital loans to school 
 districts as provided in sections 124.36 to 124.46.  These bonds 
 shall be issued and sold and provision for the payment thereof 
 shall be made in accordance with section 124.46, and an amount 
 sufficient to pay interest on the bonds to and including July 1 
 in the second year after the date of issue shall be credited 
 from the bond proceeds to the school loan bond account in the 
 state bond fund.  Any expenses incidental to the sale, printing, 
 execution, and delivery of the bonds, including, but without 
 limitation, actual and necessary travel and subsistence expenses 
 of state officers and employees for such purposes, shall be paid 
 from the maximum effort school loan fund, and the amounts 
 necessary therefor are appropriated from such fund.  

    HIST: 1967 c 583 s 6; 1994 c 465 art 2 s 1 

     124.474 Bond issue, maximum effort school loans; 1969. 

    For the purpose of providing moneys to be loaned to school 
 districts as agencies and political subdivisions of the state 
 for the acquisition and betterment of public land and buildings 
 and other public improvements of a capital nature, in the manner 
 provided by the maximum effort school aid law, the commissioner 
 of finance is directed to issue and sell school loan bonds of 
 the state of Minnesota in the maximum amount of $20,000,000, in 
 addition to the bonds heretofore authorized for this purpose, 
 which amount is appropriated to the maximum effort school loan 
 fund and shall be expended under the direction of the 
 commissioner of children, families, and learning for the making 
 of debt service loans and capital loans to school districts as 
 provided in sections 124.36 to 124.46.  These bonds shall be 
 issued and sold and provision for the payment thereof shall be 
 made in accordance with section 124.46, and an amount sufficient 
 to pay interest on the bonds to and including July 1 in the 
 second year after the date of issue shall be credited from the 
 bond proceeds to the school loan bond account in the state bond 
 fund.  Any expenses incidental to the sale, printing, execution, 
 and delivery of the bonds, including, but without limitation, 
 actual and necessary travel and subsistence expenses of state 
 officers and employees for those purposes, shall be paid from 
 the maximum effort school loan fund, and the amounts necessary 
 therefor are appropriated from it. 

    HIST: 1969 c 1056 s 12; 1973 c 492 s 14; 1981 c 358 art 9 s 
 12; 1994 c 465 art 2 s 1; 1Sp1995 c 3 art 16 s 13 

  124.475 Repealed, 1975 c 432 s 97 

     124.476 Bond issue, maximum effort school loans; 1980. 

    For the purpose of providing moneys to be loaned to school 
 districts as agencies and political subdivisions of the state 
 for the acquisition and betterment of public land and buildings 
 and other public improvements of a capital nature, in the manner 
 provided by the maximum effort school aid law, the commissioner 
 of finance is directed to issue and sell school loan bonds of 
 the state of Minnesota in the maximum amount of $20,000,000, in 
 addition to the bonds heretofore authorized for this purpose, 
 which amount is appropriated to the maximum effort school loan 
 fund and shall be expended under the direction of the 
 commissioner of children, families, and learning for the making 
 of debt service loans and capital loans to school districts as 
 provided in sections 124.36 to 124.46.  These bonds shall be 
 issued and sold and provision for their payment shall be made in 
 accordance with section 124.46, and an amount sufficient to pay 
 interest on the bonds to and including July 1 in the second year 
 after the date of issue shall be credited from the bond proceeds 
 to the school loan bond account in the state bond fund.  Any 
 expenses incidental to the sale, printing, execution, and 
 delivery of the bonds, including, but without limitation, actual 
 and necessary travel and subsistence expenses of state officers 
 and employees for those purposes, shall be paid from the maximum 
 effort school loan fund, and the amounts necessary for the 
 expenses are appropriated from it. 

    HIST: 1980 c 545 s 4; 1981 c 358 art 9 s 13; 1994 c 465 art 2 
 s 1; 1Sp1995 c 3 art 16 s 13 

     124.477 Bond issue; maximum effort school loans; 1988. 

    To provide money to be loaned to school districts as 
 agencies and political subdivisions of the state to acquire and 
 to better public land and buildings and other public 
 improvements of a capital nature, in the manner provided by the 
 maximum effort school aid law, the commissioner of finance shall 
 issue and sell school loan bonds of the state of Minnesota in 
 the maximum amount of $22,000,000, in addition to the bonds 
 already authorized for this purpose.  The same amount is 
 appropriated to the maximum effort school loan fund and must be 
 spent under the direction of the commissioner of children, 
 families, and learning to make debt service loans and capital 
 loans to school districts as provided in sections 124.36 to 
 124.46.  The bonds must be issued and sold and provision for 
 their payment must be made according to section 124.46.  
 Expenses incidental to the sale, printing, execution, and 
 delivery of the bonds, including, but without limitation, actual 
 and necessary travel and subsistence expenses of state officers 
 and employees for those purposes, must be paid from the maximum 
 effort school loan fund, and the money necessary for the 
 expenses is appropriated from that fund. 

    HIST: 1988 c 718 art 8 s 12; 1989 c 300 art 2 s 1; 1991 c 45 s 
 5; 1994 c 465 art 2 s 1; 1Sp1995 c 3 art 16 s 13 

     124.478 Bond issue; maximum effort loans; 1990. 

    To provide money to be loaned to school districts as 
 agencies and political subdivisions of the state to acquire and 
 to better public land and buildings and other public 
 improvements of a capital nature, in the manner provided by the 
 maximum effort school aid law, the commissioner of finance shall 
 issue and sell school loan bonds of the state of Minnesota in 
 the maximum amount of $23,000,000, in addition to the bonds 
 already authorized for this purpose.  The bonds must be issued 
 and sold and provision for their payment must be made according 
 to section 124.46.  Expenses incidental to the sale, printing, 
 execution, and delivery of the bonds, including, but without 
 limitation, actual and necessary travel and subsistence expenses 
 of state officers and employees for those purposes, must be paid 
 from the maximum effort school loan fund, and the money 
 necessary for the expenses is appropriated from that fund. 

    HIST: 1990 c 610 art 1 s 45; 1992 c 499 art 5 s 35 

     124.479 Bond issue; maximum effort school loans, 1991. 

    To provide money to be loaned to school districts as 
 agencies and political subdivisions of the state to acquire and 
 to better public land and buildings and other public 
 improvements of a capital nature, in the manner provided by the 
 maximum effort school aid law, the commissioner of finance shall 
 issue and sell school loan bonds of the state of Minnesota in 
 the maximum amount of $45,065,000, in addition to the bonds 
 already authorized for this purpose.  The same amount is 
 appropriated to the maximum effort school loan fund and must be 
 spent under the direction of the commissioner of children, 
 families, and learning to make debt service loans and capital 
 loans to school districts as provided in sections 124.36 to 
 124.46.  The bonds must be issued and sold and provision for 
 their payment must be made according to section 124.46.  
 Expenses incidental to the sale, printing, execution, and 
 delivery of the bonds, including, but without limitation, actual 
 and necessary travel and subsistence expenses of state officers 
 and employees for those purposes, must be paid from the maximum 
 effort school loan fund, and the money necessary for the 
 expenses is appropriated from that fund. 

    HIST: 1991 c 265 art 12 s 1; 1992 c 464 art 1 s 21; 1992 c 499 
 art 5 s 7; 1992 c 558 s 29; 1994 c 465 art 2 s 1; 1Sp1995 c 3 
 art 16 s 13 

     124.48 Indian scholarships. 

    Subdivision 1.    Awards.  The state board, with the 
 advice and counsel of the Minnesota Indian scholarship 
 committee, may award scholarships to any Minnesota resident 
 student who is of one-fourth or more Indian ancestry, who has 
 applied for other existing state and federal scholarship and 
 grant programs, and who, in the opinion of the board, has the 
 capabilities to benefit from further education.  Scholarships 
 shall be for advanced or specialized education in accredited or 
 approved colleges or in business, technical or vocational 
 schools.  Scholarships shall be used to defray the total cost of 
 education including tuition, incidental fees, books, supplies, 
 transportation, other related school costs and the cost of board 
 and room and shall be paid directly to the college or school 
 concerned.  The total cost of education includes all tuition and 
 fees for each student enrolling in a public institution and the 
 portion of tuition and fees for each student enrolling in a 
 private institution that does not exceed the tuition and fees at 
 a comparable public institution.  Each student shall be awarded 
 a scholarship based on the total cost of the student's education 
 and a standardized need analysis.  The amount and type of each 
 scholarship shall be determined through the advice and counsel 
 of the Minnesota Indian scholarship committee.  

    When an Indian student satisfactorily completes the work 
 required by a certain college or school in a school year the 
 student is eligible for additional scholarships, if additional 
 training is necessary to reach the student's educational and 
 vocational objective.  Scholarships may not be given to any 
 Indian student for more than five years of study without special 
 approval of the Minnesota Indian scholarship committee. 

    Subd. 2. Repealed, 1991 c 265 art 11 s 26 

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

    HIST: Ex1959 c 71 art 5 s 36; 1971 c 176 s 1; 1977 c 384 s 1; 
 1983 c 258 s 28; 1Sp1985 c 11 s 12; 1988 c 629 s 28; 1988 c 718 
 art 3 s 3; 1993 c 224 art 9 s 32; art 13 s 40; 1993 c 374 s 23; 
 1997 c 192 s 20 

     124.481 Indian post-secondary preparation grants. 

    The state board of education, with the advice of the 
 Minnesota Indian scholarship committee, may make grants to 
 school districts or tribal grant or contract schools to support 
 post-secondary preparation for secondary pupils who are of 
 one-fourth or more Indian ancestry and who, in the opinion of 
 the superintendent, have the capabilities to benefit from higher 
 education.  Distribution of the grants must be in accordance 
 with a plan prepared by the state board, with the advice of the 
 Minnesota Indian scholarship committee, that describes the 
 objectives and methods of implementing the grant program, 
 including the manner in which grants will be distributed in 
 proportion to the geographical distribution of the Indian 
 population of the state. 

    HIST: 1Sp1985 c 11 s 13; 1Sp1997 c 4 art 2 s 26 

     124.491 Citation. 

    Sections 124.492 to 124.495 may be cited as the 
 "cooperative secondary facilities grant act."  

    HIST: 1987 c 400 s 33,59; 1989 c 300 art 2 s 13; 1991 c 199 
 art 2 s 1 

     124.492 Policy and purpose. 

    Because of the rates of decline in school-aged population, 
 population shifts and economic changes that the state has 
 experienced in recent years and anticipates in future years, and 
 because in some instances local school districts have not, and 
 will not be able to provide the required construction funds 
 through local property taxes, the purpose of the cooperative 
 secondary facilities grant program is to provide an incentive to 
 encourage cooperation in making available to all secondary 
 students those educational programs, services and facilities 
 that are most efficiently and effectively provided by a 
 cooperative effort of several school districts.  The policy and 
 purpose of sections 124.493 to 124.495 is to use the credit of 
 the state, to a limited degree, to provide grants to cooperating 
 groups of school districts to improve and expand the educational 
 opportunities and facilities available to their secondary 
 students. 

    HIST: 1987 c 400 s 34,59; 1989 c 300 art 2 s 13 

     124.493 Approval authority; application forms. 

    Subdivision 1.    Approval by commissioner.  To the 
 extent money is available, the commissioner of children, 
 families, and learning may approve projects from applications 
 submitted under section 124.494.  The grant money must be used 
 only to acquire, construct, remodel or improve the building or 
 site of a cooperative secondary facility under contracts to be 
 entered into within 15 months after the date on which each grant 
 is awarded. 

    Subd. 2. Repealed, 1991 c 265 art 6 s 67 

    Subd. 3.    Cooperation and combination.  Districts that 
 receive a cooperative secondary facilities grant after May 1, 
 1991, shall: 

    (1) submit a plan as set forth in section 122.242 for 
 approval by the state board of education; and 

    (2) hold a referendum on the question of combination no 
 later than four years after a grant is awarded under subdivision 
 1. 

    The districts are eligible for cooperation and combination 
 revenue under section 124.2725.  

    HIST: 1987 c 400 s 35,59; 1989 c 300 art 2 s 13; 1991 c 265 
 art 6 s 40; 1992 c 499 art 5 s 8,9; 1Sp1995 c 3 art 16 s 13 

     124.494 Grant application process. 

    Subdivision 1.    Qualification.  Any group of school 
 districts that meets the criteria required under subdivision 2 
 may apply for an incentive grant for construction of a new 
 secondary facility or for remodeling and improving an existing 
 secondary facility.  A grant for new construction must not 
 exceed the lesser of $5,000,000 or 75 percent of the approved 
 construction costs of a cooperative secondary education 
 facility.  A grant for remodeling and improving an existing 
 facility must not exceed $200,000. 

    Subd. 2.    Review by commissioner.  (a) Any group of 
 districts that submits an application for a grant shall submit a 
 proposal to the commissioner for review and comment under 
 section 121.15, and the commissioner shall prepare a review and 
 comment on the proposed facility by July 1 of an odd-numbered 
 year, regardless of the amount of the capital expenditure 
 required to acquire, construct, remodel or improve the secondary 
 facility.  The commissioner must not approve an application for 
 an incentive grant for any secondary facility unless the 
 facility receives a favorable review and comment under section 
 121.15 and the following criteria are met: 

    (1) a minimum of two or more districts, with kindergarten 
 to grade 12 enrollments in each district of no more than 1,200 
 pupils, enter into a joint powers agreement; 

    (2) a joint powers board representing all participating 
 districts is established under section 471.59 to govern the 
 cooperative secondary facility; 

    (3) the planned secondary facility will result in the joint 
 powers district meeting the requirements of Minnesota Rules, 
 parts 3500.2010 and 3500.2110; 

    (4) at least 198 pupils would be served in grades 10 to 12, 
 264 pupils would be served in grades 9 to 12, or 396 pupils 
 would be served in grades 7 to 12; 

    (5) no more than one superintendent is employed by the 
 joint powers board as a result of the cooperative secondary 
 facility agreement; 

    (6) a statement of need is submitted, that may include 
 reasons why the current secondary facilities are inadequate, 
 unsafe or inaccessible to the handicapped; 

    (7) an educational plan is prepared, that includes input 
 from both community and professional staff; 

    (8) a combined seniority list for all participating 
 districts is developed by the joint powers board; 

    (9) an education program is developed that provides for 
 more learning opportunities and course offerings, including the 
 offering of advanced placement courses, for students than is 
 currently available in any single member district; 

    (10) a plan is developed for providing instruction of any 
 resident students in other districts when distance to the 
 secondary education facility makes attendance at the facility 
 unreasonably difficult or impractical; and 

    (11) the joint powers board established under clause (2) 
 discusses with technical colleges located in the area how 
 vocational education space in the cooperative secondary facility 
 could be jointly used for secondary and post-secondary purposes. 

    (b) To the extent possible, the joint powers board is 
 encouraged to provide for severance pay or for early retirement 
 incentives under section 125.611, for any teacher or 
 administrator, as defined under section 125.12, subdivision 1, 
 who is placed on unrequested leave as a result of the 
 cooperative secondary facility agreement. 

    (c) For the purpose of paragraph (a), clause (8), each 
 school district must be considered to have started school each 
 year on the same date. 

    (d) The districts may develop a plan that provides for the 
 location of social service, health, and other programs serving 
 pupils and community residents within the cooperative secondary 
 facility.  The commissioner shall consider this plan when 
 preparing a review and comment on the proposed facility. 

    (e) The districts shall schedule and conduct a meeting on 
 library services.  The school districts, in cooperation with the 
 regional public library system and its appropriate member 
 libraries, shall discuss the possibility of including jointly 
 operated library services at the cooperative secondary facility. 

    (f) The school board of a district that has reorganized 
 under section 122.23 or 122.243 and that is applying for a grant 
 for remodeling or improving an existing facility may act in the 
 place of a joint powers board to meet the criteria of this 
 subdivision. 

    Subd. 2a.    Reorganizing districts.  A school district 
 that is a member of a joint powers board established under 
 subdivision 2 and that is planning to reorganize under section 
 122.21, 122.22, or 122.23 must notify the joint powers board one 
 year in advance of the effective date of the reorganization.  
 Notwithstanding section 471.59 or any other law to the contrary, 
 the board of a district that reorganizes under section 122.21, 
 122.22, or 122.23 may appoint representatives to the joint 
 powers board who will serve on the joint powers board for two 
 years after the effective date of the reorganization if 
 authorized in the agreement establishing the joint powers board 
 to govern the cooperative secondary facility.  These 
 representatives shall have the same powers as representatives of 
 any other school district under the joint powers agreement. 

    Subd. 3.    District procedures.  A joint powers board 
 of a secondary district established under subdivision 2 or a 
 school board of a reorganized district that intends to apply for 
 a grant shall adopt a resolution stating the proposed costs of 
 the project, the purpose for which the costs are to be incurred, 
 and an estimate of the dates when the facilities for which the 
 grant is requested will be contracted for and completed.  
 Applications for the state grants must be accompanied by (a) a 
 copy of the resolution, (b) a certificate by the clerk and 
 treasurer of the joint powers board showing the current 
 outstanding indebtedness of each member district, and (c) a 
 certificate by the county auditor of each county in which a 
 portion of the joint powers district lies showing the 
 information in the auditor's official records that is required 
 to be used in computing the debt limit of the district under 
 section 475.53, subdivision 4.  The clerk's and treasurer's 
 certificate shall show, as to each outstanding bond issue of 
 each member district, the amount originally issued, the purpose 
 for which issued, the date of issue, the amount remaining unpaid 
 as of the date of the resolution, and the interest rates and due 
 dates and amounts of principal thereon.  Applications and 
 necessary data must be in the form prescribed by the 
 commissioner and the rules of the state board of education.  
 Applications must be received by the commissioner by September 1 
 of an odd-numbered year.  When an application is received, the 
 commissioner shall obtain from the commissioner of revenue, and 
 from the public utilities commission when required, the 
 information in their official records that is required to be 
 used in computing the debt limit of the joint powers district 
 under section 475.53, subdivision 4. 

    Subd. 4.    Award of grants.  By November 1 of the 
 odd-numbered year, the commissioner shall examine and consider 
 all applications for grants, and if any district is found not 
 qualified, the commissioner shall promptly notify that board.  

    A grant award is subject to verification by the district as 
 specified in subdivision 6.  A grant award for a new facility 
 must not be made until the site of the secondary facility has 
 been determined.  A grant award to remodel or improve an 
 existing facility must not be made until the districts have 
 reorganized.  If the total amount of the approved applications 
 exceeds the amount that is or can be made available, the 
 commissioner shall allot the available amount equally between 
 the approved applicant districts.  The commissioner shall 
 promptly certify to each qualified district the amount, if any, 
 of the grant awarded to it. 

    Subd. 4a.    Collocation grant.  A group of districts 
 that receives a grant for a new facility under subdivision 4 is 
 also eligible to receive an additional grant in the amount of 
 $1,000,000.  To receive the additional grant, the group of 
 districts must develop a plan under subdivision 2, paragraph 
 (d), that provides for the location of a significant number of 
 noneducational student and community service programs within the 
 cooperative secondary facility. 

    Subd. 5.    Referendum; bond issue.  Within 180 days 
 after being awarded a grant for a new facility under subdivision 
 4, the joint powers board shall submit the question of 
 authorizing the borrowing of funds for the secondary facility to 
 the voters of the joint powers district at a special election, 
 which may be held in conjunction with the annual election of the 
 school board members of the member districts.  The question 
 submitted shall state the total amount of funding needed from 
 all sources.  A majority of those voting in the affirmative on 
 the question is sufficient to authorize the joint powers board 
 to accept the grant and to issue the bonds on public sale in 
 accordance with chapter 475.  The clerk of the joint powers 
 board must certify the vote of the bond election to the 
 commissioner of children, families, and learning.  If the 
 question is approved by the voters, the commissioner shall 
 notify the approved applicant districts that the grant amount 
 certified under subdivision 4 is available and appropriated for 
 payment under this subdivision.  If a majority of those voting 
 on the question do not vote in the affirmative, the grant must 
 be canceled. 

    Subd. 6.    Contract.  Each grant must be evidenced by a 
 contract between the board and the state acting through the 
 commissioner.  The contract obligates the state to pay to the 
 board an amount computed according to subdivision 4, and 
 according to a schedule, and terms and conditions acceptable to 
 the commissioner of finance. 

    Subd. 7.    Consolidation.  A group of districts that 
 operates a cooperative secondary facility that was acquired, 
 constructed, remodeled, or improved under this section and 
 implements consolidation proceedings according to section 
 122.23, may propose a temporary school board structure in the 
 petition or resolution required under section 122.23, 
 subdivision 2.  The districts may propose the number of existing 
 school board members of each district to become members of the 
 school board of the consolidated district and a method to 
 gradually reduce the membership to six or seven.  The proposal 
 shall be approved, disapproved, or modified by the state board 
 of education.  The election requirements of section 122.23, 
 subdivision 18, do not apply to a proposal approved by the state 
 board.  Elections conducted after the effective date of the 
 consolidation are subject to the Minnesota election law. 

    HIST: 1987 c 400 s 36,59; 1988 c 718 art 8 s 13-15; 1989 c 300 
 art 2 s 2-4,13; 1989 c 329 art 6 s 38; 1990 c 562 art 6 s 27; 
 1992 c 409 s 2; 1992 c 499 art 5 s 10-12; 1993 c 224 art 5 s 
 18-20; 1994 c 643 s 55-61; 1Sp1995 c 2 art 1 s 32-34; 1Sp1995 c 
 3 art 16 s 13 

     124.4945 Levy for severance pay. 

    A joint powers board established under section 124.494 may 
 make a levy to provide severance pay and early retirement 
 incentives under section 125.611, for any teacher as defined 
 under section 125.12, subdivision 1, who is placed on 
 unrequested leave as a result of the cooperative secondary 
 facility agreement.  A joint powers board making a levy shall 
 certify to each participating district tax levies sufficient to 
 raise the amount necessary to provide the district's portion of 
 severance pay and early retirement incentives.  The tax levy 
 certified to each district must be expressed as a local tax 
 rate, that, when applied to the adjusted net tax capacity of all 
 of the participating districts raises the amount necessary to 
 provide severance pay and early retirement incentives.  Each 
 participating school district shall include the levy in the next 
 tax roll which it shall certify to the county auditor, and shall 
 remit the collections of the levy to the joint powers board. 

    HIST: 1988 c 718 art 8 s 16; 1988 c 719 art 5 s 84; 1989 c 329 
 art 13 s 20; 1Sp1989 c 1 art 2 s 11 

     124.4946 Transportation. 

    The joint powers board representing the districts that have 
 entered into a joint powers agreement under section 124.494, 
 subdivision 2, or the boards of the districts that are 
 contiguous to the districts that have entered into a joint 
 powers agreement, may transport nonresident pupils without 
 charge between a school within the district and a point within a 
 district that has entered into a joint powers agreement chosen 
 by the pupil on a route traveled by a bus from the district. 

    HIST: 1989 c 329 art 6 s 39 

     124.495 State bond authorization. 

    To provide money for the cooperative secondary facilities 
 grant program, the commissioner of finance, upon the request of 
 the commissioner of children, families, and learning, shall 
 issue and sell bonds of the state up to the amount of 
 $14,000,000 in the manner, upon the terms and with the effect 
 prescribed by sections 16A.631 to 16A.675 and the Minnesota 
 Constitution, article XI, sections 4 to 7. 

    HIST: 1987 c 400 s 37; 1988 c 718 art 8 s 17; 1989 c 300 art 2 
 s 5; 1Sp1995 c 3 art 16 s 13 

  124.496 Repealed, 1989 c 329 art 9 s 34 

  124.50 Repealed, 1975 c 432 s 98 

  124.51 Repealed, Ex1971 c 31 art 20 s 24 

     124.511 Surplus county school tax funds; distribution.  

    When, by reason of reorganization of districts there is a 
 surplus in the county treasury to the credit of the county 
 school tax fund on account of an excessive tax levy heretofore 
 made, and when there is no need therefor, the surplus shall be 
 paid by the county treasurer to the reorganized district upon 
 the order of the county board.  

    HIST: 1973 c 157 s 1 

  124.52 Renumbered 136C.21 

  124.53 Repealed, 1983 c 258 s 72 

  124.54 Renumbered 136C.211 

  124.55 Renumbered 136C.212 

  124.56 Renumbered 136C.213 

  124.561 Repealed, 1983 c 314 art 5 s 17 

  124.5611 Renumbered 136C.25 

  124.5612 Renumbered 136C.26 

    124.5613 Subdivision 1.  Repealed, 1984 c 463 art 
 5 s 37 

    Subd. 2.  Renumbered 136C.27 subdivision 1 

    Subd. 3.  Renumbered 136C.27 subd 2 

  124.5614 Renumbered 136C.28 

  124.5615 Renumbered 136C.29 

  124.5616 Renumbered 136C.31 

  124.5617 Renumbered 136C.32 

  124.5618 Renumbered 136C.33 

  124.5619 Renumbered 136C.34 

  124.562 Repealed, 1983 c 314 art 5 s 17 

  124.5621 Repealed, 1983 c 314 art 5 s 17 

  124.5622 Repealed, 1983 c 314 art 5 s 17 

  124.5623 Repealed, 1983 c 314 art 5 s 17 

  124.5624 Repealed, 1983 c 314 art 5 s 17 

  124.5625 Repealed, 1983 c 314 art 5 s 17 

  124.5626 Repealed, 1983 c 314 art 5 s 17 

  124.5627 Repealed, 1983 c 314 art 5 s 17 

  124.5628 Renumbered 136C.35 

  124.5629 Renumbered 136C.36 

  124.563 Repealed, 1979 c 334 art 5 s 29 

  124.564 Renumbered 136C.41 

    124.565 Subdivision 1.  Renumbered 136C.13 
 subdivision 1 

    Subd. 2.  Repealed, 1977 c 447 art 5 s 17 

    Subd. 3.  Repealed, 1984 c 463 art 5 s 37 

    Subd. 4.  Repealed, 1984 c 463 art 5 s 37 

    Subd. 5.  Repealed, 1977 c 447 art 5 s 16 

    Subd. 6.  Renumbered 136C.13 subd 2 

    Subd. 7.  Renumbered 136C.13 subd 3 

  124.566 Repealed, 1981 c 358 art 5 s 47 

    124.57 Subdivision 1.  Repealed, 1977 c 447 art 5 
 s 17 

    Subd. 2.  Renumbered 136C.37 

    Subd. 3.  Repealed, 1977 c 447 art 5 s 17 

  124.571 Repealed, 1981 c 358 art 5 s 47 

    124.572 Subdivision 1.  Renumbered 136C.38 
 subdivision 1 

    Subd. 1a. Renumbered 136C.38 subd 2 

    Subd. 2.  Renumbered 136C.38 subd 3 

    Subd. 2a.  Repealed, 1984 c 463 art 5 s 37 

    Subd. 3.  Renumbered 136C.38 subd 4 

    Subd. 3a.  Renumbered 136C.38 subd 5 

    Subd. 4.  Renumbered 136C.38 subd 6 

    Subd. 5.  Renumbered 136C.38 subd 7 

    Subd. 6.  Renumbered 136C.38 subd 8 

    Subd. 7.  Renumbered 136C.38 subd 9 

    Subd. 8.  Repealed, 1984 c 463 art 5 s 37 

    Subd. 8a.  Repealed, 1984 c 463 art 9 s 13 

    Subd. 9.  Renumbered 136C.38 subd 10 

    Subd. 10.  Renumbered 136C.38 subd 11 

     124.573 Current funding for secondary vocational 
  education. 

    Subdivision 1.  The state shall pay aids for secondary 
 vocational programs on a current funding basis. 

    Subd. 2.    Limit.  The commissioner may withhold all or 
 any portion of the aid paid under this section for a secondary 
 vocational education program which receives funds from any other 
 source.  In no event shall a district or center receive a total 
 amount of state aid pursuant to this section which, when added 
 to funds from other sources, will provide the program an amount 
 for salaries and travel which exceeds 100 percent of the amount 
 of its expenditures for salaries and travel in the program. 

    Subd. 2a. Repealed, 1984 c 463 art 5 s 37 

    Subd. 2b.    Secondary vocational aid.  A district's 
 secondary vocational education aid for a fiscal year equals the 
 lesser of: 

    (a) $80 times the district's average daily membership in 
 grades 10 to 12; or 

    (b) 25 percent of approved expenditures for the following: 

    (1) salaries paid to essential, licensed personnel 
 providing direct instructional services to students in that 
 fiscal year for services rendered in the district's approved 
 secondary vocational education programs; 

    (2) contracted services provided by a public or private 
 agency other than a Minnesota school district or cooperative 
 center under subdivision 3a; 

    (3) necessary travel between instructional sites by 
 licensed secondary vocational education personnel; 

    (4) necessary travel by licensed secondary vocational 
 education personnel for vocational student organization 
 activities held within the state for instructional purposes; 

    (5) curriculum development activities that are part of a 
 five-year plan for improvement based on program assessment; 

    (6) necessary travel by licensed secondary vocational 
 education personnel for noncollegiate credit bearing 
 professional development; and 

    (7) specialized vocational instructional supplies. 

    (c) Up to ten percent of a district's secondary vocational 
 aid may be spent on equipment purchases.  Districts using 
 secondary vocational aid for equipment purchases must report to 
 the department of children, families, and learning on the 
 improved learning opportunities for students that result from 
 the investment in equipment. 

    Subd. 2c. Repealed, 1993 c 224 art 3 s 40; 1993 c 374 s 
 10 

    Subd. 2d. Repealed, 1993 c 224 art 3 s 40 

    Subd. 2e.    Allocation from cooperative centers and 
 intermediate districts.  For purposes of subdivisions 2b, 
 paragraph (b), and 2f, paragraph (b), a cooperative center or an 
 intermediate district shall allocate its approved expenditures 
 for secondary vocational education programs among participating 
 school districts.  For purposes of subdivision 2f, paragraph 
 (a), a cooperative center or an intermediate district shall 
 allocate its secondary vocational aid for fiscal year 1994 among 
 participating school districts.  For 1995 and later fiscal 
 years, secondary vocational aid for services provided by a 
 cooperative center or an intermediate district shall be paid to 
 the participating school district. 

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

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

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

    Subd. 3.    Compliance with rules.  Aid shall be paid 
 under this section only for services rendered or for costs 
 incurred in secondary vocational education programs approved by 
 the commissioner and operated in accordance with rules 
 promulgated by the state board.  These rules shall provide 
 minimum student-staff ratios required for a secondary vocational 
 education program area to qualify for this aid.  The rules must 
 not require the collection of data at the program or course 
 level to calculate secondary vocational aid.  The rules shall 
 not require any minimum number of administrative staff, any 
 minimum period of coordination time or extended employment for 
 secondary vocational education personnel, or the availability of 
 vocational student activities or organizations for a secondary 
 vocational education program to qualify for this aid.  The 
 requirement in these rules that program components be available 
 for a minimum number of hours shall not be construed to prevent 
 pupils from enrolling in secondary vocational education courses 
 on an exploratory basis for less than a full school year.  The 
 state board shall not require a school district to offer more 
 than four credits or 560 hours of vocational education course 
 offerings in any school year.  Rules relating to secondary 
 vocational education programs shall not incorporate the 
 provisions of the state plan for vocational education by 
 reference.  This aid shall be paid only for services rendered 
 and for costs incurred by essential, licensed personnel who meet 
 the work experience requirements for licensure pursuant to the 
 rules of the state board.  Licensed personnel means persons 
 holding a valid secondary vocational license issued by the 
 commissioner, except that when an average of five or fewer 
 secondary full-time equivalent students are enrolled per teacher 
 in an approved post-secondary program at intermediate district 
 No. 287, 916, or 917, licensed personnel means persons holding a 
 valid vocational license issued by the commissioner, the state 
 board for vocational technical education, or the board of 
 trustees of the Minnesota state colleges and universities.  
 Notwithstanding section 124.15, the commissioner may modify or 
 withdraw the program or aid approval and withhold aid under this 
 section without proceeding under section 124.15 at any time.  To 
 do so, the commissioner must determine that the program does not 
 comply with rules of the state board or that any facts 
 concerning the program or its budget differ from the facts in 
 the district's approved application. 

    Subd. 3a.    Aid for contracted services.  In addition 
 to the provisions of subdivisions 2 and 3, a school district or 
 cooperative center may contract with a public or private agency 
 other than a Minnesota school district or cooperative center for 
 the provision of secondary vocational education services.  The 
 state board shall promulgate rules relating to program approval 
 procedures and criteria for these contracts and aid shall be 
 paid only for contracts approved by the commissioner of 
 children, families, and learning.  For the purposes of 
 subdivision 4, the district or cooperative center contracting 
 for these services shall be construed to be providing the 
 services.  

    Subd. 3b. Repealed, 1984 c 463 art 5 s 37 

    Subd. 4. Repealed, 1993 c 374 s 10 

    Subd. 5. Repealed, 1984 c 463 art 5 s 37 

    Subd. 5a.    District reports.  Each district or 
 cooperative center shall report data to the department for all 
 secondary vocational education programs as required by the 
 department to implement the secondary vocational aid formula. 

    Subd. 6. Repealed, 1984 c 463 art 9 s 13 

    HIST: 1976 c 271 s 62; 1977 c 447 art 5 s 10; 1978 c 764 s 
 69-71; 1979 c 334 art 5 s 27; 1981 c 358 art 5 s 39-42; 1982 c 
 548 art 5 s 12-15; 1984 c 463 art 5 s 24; 1Sp1985 c 12 art 6 s 
 9,10; 1Sp1986 c 1 art 9 s 12,13; 1987 c 398 art 3 s 22; 1989 c 
 329 art 3 s 8-11; 1990 c 562 art 3 s 3; 1991 c 265 art 3 s 
 13,14; 1993 c 224 art 3 s 24,25; art 13 s 41; 1993 c 374 s 7,8; 
 1994 c 647 art 3 s 12-15; 1Sp1995 c 3 art 16 s 13; 1996 c 412 
 art 13 s 16 

     124.574 Access to Minnesota's school-to-work system for 
  children with a disability. 

    Subdivision 1.    Purpose.  The purpose of this section 
 is to provide a method to fund school-to-work programs for 
 children with a disability.  As used in this section, the term 
 "children with a disability" shall have the meaning ascribed to 
 it in section 120.03. 

    Subd. 2. Repealed, 1984 c 463 art 5 s 37 

    Subd. 2a. Repealed, 1984 c 463 art 5 s 37 

    Subd. 2b. Repealed, 1Sp1995 c 3 art 15 s 27 

    Subd. 2c.    Definitions.  For the purposes of this 
 section and section 124.321, the definitions in this subdivision 
 apply. 

    (a) "Base year" for fiscal year 1996 means fiscal year 1995.
 Base year for later fiscal years means the second fiscal year 
 preceding the fiscal year for which aid will be paid. 

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

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

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

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

    Subd. 2d.    Base revenue.  (a) The school-to-work 
 program-disabled base revenue equals the sum of the following 
 amounts computed using base year data: 

    (1) 68 percent of the salary of each essential licensed 
 person who provides direct instructional services to students 
 employed during that fiscal year for services rendered in that 
 district's school-to-work program for children with a 
 disability; 

    (2) 47 percent of the costs of necessary equipment for 
 school-to-work programs for children with a disability; 

    (3) 47 percent of the costs of necessary travel between 
 instructional sites by school-to-work program teachers of 
 children with a disability but not including travel to and from 
 local, regional, district, state, or national vocational student 
 organization meetings; 

    (4) 47 percent of the costs of necessary supplies for 
 school-to-work programs for children with a disability but not 
 to exceed an average of $47 in any one school year for each 
 child with a disability receiving these services; 

    (5) for school-to-work programs for children with 
 disabilities provided by a contract approved by the commissioner 
 with public, private, or voluntary agencies other than a 
 Minnesota school district or cooperative center, in place of 
 programs provided by the district, 52 percent of the difference 
 between the amount of the contract and the basic revenue of the 
 district for that pupil for the fraction of the school day the 
 pupil receives services under the contract; 

    (6) for school-to-work programs for children with 
 disabilities provided by a contract approved by the commissioner 
 with public, private, or voluntary agencies other than a 
 Minnesota school district or cooperative center, that are 
 supplementary to a full educational program provided by the 
 school district, 52 percent of the amount of the contract; and 

    (7) for a contract approved by the commissioner with 
 another Minnesota school district or cooperative center for 
 vocational evaluation services for children with a disability 
 for children that are not yet enrolled in grade 12, 52 percent 
 of the amount of the contract. 

    (b) If requested by a school district for school-to-work 
 programs during the base year for less than the full school 
 year, the commissioner may adjust the base revenue to reflect 
 the expenditures that would have occurred during the base year 
 had the program been operated for the full year. 

    Subd. 2e.    Adjusted secondary vocational-disabled base 
 revenue.  For fiscal year 1996 and later, a district's 
 adjusted secondary vocational-disabled base revenue equals the 
 district's secondary vocational-disabled base revenue times the 
 ratio of the district's average daily membership for the current 
 school year to the district's average daily membership for the 
 base year. 

    Subd. 2f.    State total school-to-work program-disabled 
 revenue.  The state total school-to-work program-disabled 
 revenue for fiscal year 1998 equals $8,924,000.  The state total 
 school-to-work program-disabled revenue for fiscal year 1999 
 equals $8,976,000.  The state total school-to-work 
 program-disabled revenue for later fiscal years equals:  

    (1) the state total school-to-work program-disabled revenue 
 for the preceding fiscal year; times 

    (2) the program growth factor; times 

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

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

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

    Subd. 2h.    School district secondary vocational-disabled 
 aid.  A school district's secondary vocational-disabled aid 
 for fiscal year 1996 and later equals the district's secondary 
 vocational-disabled revenue times the aid percentage factor for 
 that year. 

    Subd. 3. Repealed, 1Sp1995 c 3 art 15 s 27 

    Subd. 3a. Repealed, 1984 c 463 art 5 s 37 

    Subd. 4. Repealed, 1Sp1995 c 3 art 15 s 27 

    Subd. 4a. Repealed, 1Sp1995 c 3 art 15 s 27 

    Subd. 5.    Use of aid.  The aid provided pursuant to 
 this section shall be paid only for services rendered as 
 designated in subdivision 2 or for the costs designated in 
 subdivision 3 which are incurred in school-to-work programs for 
 children with a disability which are approved by the 
 commissioner of children, families, and learning and operated in 
 accordance with rules promulgated by the state board.  These 
 rules shall be subject to the restrictions provided in section 
 124.573, subdivision 3.  The procedure for application for 
 approval of these programs shall be as provided in section 
 124.32, subdivisions 7 and 10, and the application review 
 process shall be conducted by the office of lifework development 
 in the department. 

    Subd. 6.    Payment of aid.  All aid pursuant to this 
 section shall be paid to the district or cooperative center 
 providing the services.  All aid received by a district or 
 center from any source for school-to-work programs for children 
 with a disability shall be utilized solely for that purpose. 

    Subd. 7.    Exclusion.  A district shall not receive aid 
 pursuant to section 124.3201, 124.321, or 124.573 for salaries, 
 supplies, travel or equipment for which the district receives 
 aid pursuant to this section. 

    Subd. 8. Repealed, 1984 c 463 art 9 s 13 

    Subd. 9.    Revenue allocation from cooperative centers 
 and intermediate districts.  For purposes of this section and 
 section 124.321, a cooperative center or an intermediate 
 district shall allocate its approved expenditures for 
 school-to-work programs for children with a disability among 
 participating school districts.  Aid for school-to-work programs 
 for children with a disability for services provided by a 
 cooperative or intermediate district shall be paid to the 
 participating school districts. 

    HIST: 1978 c 764 s 72; 1979 c 334 art 5 s 28; 1981 c 358 art 5 
 s 43-45; 1982 c 548 art 5 s 16-18; 1Sp1985 c 12 art 3 s 18; 1987 
 c 398 art 3 s 23-25; 1Sp1987 c 4 art 1 s 1; 1989 c 329 art 3 s 
 12-14; 1991 c 265 art 3 s 15,38; 1993 c 224 art 3 s 26-28; 1993 
 c 374 s 9; 1Sp1995 c 3 art 13 s 5; art 15 s 18-24; art 16 s 13; 
 1996 c 412 art 3 s 28,29; 1997 c 7 art 1 s 62; 1Sp1997 c 4 art 2 
 s 27,28; art 3 s 13-16 

    124.575 Subdivision 1. MS 1992 Repealed, 1993 c 
 374 s 15 

    Subd. 1a. MS 1991 Supp Repealed, 1992 c 499 art 6 
 s 39 

    Subd. 2. MS 1992 Repealed, 1993 c 224 art 6 s 32; 
 1993 c 374 s 15 

    Subd. 2a. MS 1991 Supp Repealed, 1992 c 499 art 6 
 s 39 

    Subd. 3. MS 1992 Repealed, 1993 c 374 s 15 

    Subd. 3a.  MS 1992 Repealed, 1993 c 374 s 15 

    Subd. 3b. MS 1991 Supp Repealed, 1992 c 499 art 6 
 s 39 

    Subd. 4. MS 1992 Repealed, 1993 c 224 art 6 s 32; 
 1993 c 374 s 15 

    Subd. 4a. MS 1991 Supp Repealed, 1992 c 499 art 6 
 s 39 

    Subd. 5. MS 1991 Supp Repealed, 1992 c 499 art 6 s 
 39 

  124.58 Renumbered 136C.22 

  124.59 Renumbered 136C.221 

  124.60 Renumbered 136C.222 

  124.61 Renumbered 136C.223 

  124.611 Repealed, 1983 c 314 art 10 s 18 

  124.615 Repealed, 1993 c 224 art 12 s 32; 1993 c 374 s 22 

   124.62 Repealed, 1993 c 224 art 12 s 32; 1993 c 374 s 22 

*   NOTE:  For on the job training revolving fund, see Laws 
*1947, Chapter 599, Section 7, clause (8).

     124.625 Veterans training. 

    The commissioner shall continue the veterans training 
 program.  All receipts to the veterans training revolving fund 
 for the veterans training program are appropriated to the 
 commissioner to pay the necessary expenses of operation of the 
 program.  The department of children, families, and learning 
 shall act as the state agency for approving educational 
 institutions for purposes of United States Code, title 38, 
 chapter 36, relating to educational benefits for veterans and 
 other persons.  The state board may adopt rules to fulfill its 
 obligations as the state approving agency.  All federal money 
 received for purposes of the veterans training program shall be 
 deposited in the veterans training revolving fund and is 
 appropriated to the department for those purposes.  

    HIST: 1979 c 335 s 16; 1993 c 224 art 13 s 42; 1Sp1995 c 3 art 
 16 s 13 

     124.63 National forest land funds, handling and 
  disposition.  

    Any county board may place the money, or any part thereof, 
 received by such county from the federal government for and on 
 account of any national forest lands situated therein into a 
 special fund to be disbursed and paid over to any district now 
 or hereafter maintaining and operating any school wholly or 
 partly within an area now or hereafter constituting a part of 
 any auxiliary or state forest.  Such action shall be taken by 
 the board by resolution duly adopted by it, which resolution 
 shall specify the terms and conditions under which this money 
 shall be so paid over and disbursed to any district.  

    HIST: Ex1959 c 71 art 5 s 51 

  124.64 Repealed, 1993 c 224 art 12 s 32; 1993 c 374 s 22 

  124.645 Repealed, 1993 c 224 art 12 s 32; 1993 c 374 s 22 

     124.646 Lunch aid; food service accounting. 

    Subdivision 1.    School lunch aid computation.  Each 
 school year, school districts participating in the national 
 school lunch program shall be paid by the state in the amount of 
 6.5 cents for each full paid, reduced, and free student lunch 
 served to students in the district.  

    Subd. 2. Repealed, 1992 c 499 art 12 s 30 

    Subd. 3.  School districts shall apply to the department of 
 children, families, and learning for this payment on forms 
 provided by the department. 

    Subd. 4.    School food service fund.  (a) The expenses 
 described in this subdivision must be recorded as provided in 
 this subdivision. 

    (b) In each school district, the expenses for a school food 
 service program for pupils must be attributed to a school food 
 service fund.  Under a food service program, the school food 
 service may prepare or serve milk, meals, or snacks in 
 connection with school or community service activities. 

    (c) Revenues and expenditures for food service activities 
 must be recorded in the food service fund.  The costs of 
 processing applications, accounting for meals, preparing and 
 serving food, providing kitchen custodial services, and other 
 expenses involving the preparing of meals or the kitchen section 
 of the lunchroom may be charged to the food service fund or to 
 the general fund of the district.  The costs of lunchroom 
 supervision, lunchroom custodial services, lunchroom utilities, 
 and other administrative costs of the food service program must 
 be charged to the general fund. 

    That portion of superintendent and fiscal manager costs 
 that can be documented as attributable to the food service 
 program may be charged to the food service fund provided that 
 the school district does not employ or contract with a food 
 service director or other individual who manages the food 
 service program, or food service management company.  If the 
 cost of the superintendent or fiscal manager is charged to the 
 food service fund, the charge must be at a wage rate not to 
 exceed the statewide average for food service directors as 
 determined by the department of children, families, and learning.

    (d) Capital expenditures for the purchase of food service 
 equipment must be made from the capital fund and not the food 
 service fund, unless two conditions apply: 

    (1) the unreserved balance in the food service fund at the 
 end of the last fiscal year is greater than the cost of the 
 equipment to be purchased; and 

    (2) the department of children, families, and learning has 
 approved the purchase of the equipment. 

    (e) If the two conditions set out in paragraph (d) apply, 
 the equipment may be purchased from the food service fund. 

    (f) If a deficit in the food service fund exists at the end 
 of a fiscal year, and the deficit is not eliminated by revenues 
 from food service operations in the next fiscal year, then the 
 deficit must be eliminated by a permanent fund transfer from the 
 general fund at the end of that second fiscal year.  However, if 
 a district contracts with a food service management company 
 during the period in which the deficit has accrued, the deficit 
 must be eliminated by a payment from the food service management 
 company. 

    (g) Notwithstanding paragraph (f), a district may incur a 
 deficit in the food service fund for up to three years without 
 making the permanent transfer if the district submits to the 
 commissioner by January 1 of the second fiscal year a plan for 
 eliminating that deficit at the end of the third fiscal year. 

    (h) If a surplus in the food service fund exists at the end 
 of a fiscal year for three successive years, a district may 
 recode for that fiscal year the costs of lunchroom supervision, 
 lunchroom custodial services, lunchroom utilities, and other 
 administrative costs of the food service program charged to the 
 general fund according to paragraph (c) and charge those costs 
 to the food service fund in a total amount not to exceed the 
 amount of surplus in the food service fund. 

    HIST: 1977 c 447 art 6 s 6; 1979 c 334 art 6 s 22; 1981 c 358 
 art 6 s 26; 1983 c 314 art 6 s 17; 1Sp1985 c 12 art 6 s 11; 1987 
 c 398 art 6 s 11; 1989 c 209 art 1 s 12; 1991 c 265 art 8 s 5; 
 1992 c 499 art 8 s 6; 1Sp1995 c 3 art 16 s 13 

     124.6462 Lactose reduced milk. 

    If a nonpublic school or school district 

    (1) receives school lunch aid under section 124.646 or 
 participates in the school breakfast program; and 

    (2) receives a written request from the parent of a pupil 
 who is lactose intolerant, the nonpublic school or school 
 district shall make available lactose reduced milk; milk 
 fortified with lactase in liquid, tablet, granular, or other 
 form; or milk to which lactobacillus acidophilus has been added 
 for the pupil.  Notwithstanding any law, local ordinance, or 
 local regulation to the contrary, a school may pour or serve 
 portions of any product required by this section from a large 
 container of the product at the time and place the pupil is 
 being served. 

    HIST: 1988 c 510 s 1 

     124.6469 School breakfast program. 

    Subdivision 1.    Purpose.  The purpose of the school 
 breakfast program is to provide affordable morning nutrition to 
 children so that they can effectively learn. 

    Subd. 2.    Program.  The state school breakfast program 
 enables schools participating in the federal School Breakfast 
 Program to cover their costs for breakfast. 

    Subd. 3.    Program reimbursement.  (a) State funds are 
 provided to reimburse school breakfasts.  Each school year, the 
 state shall reimburse schools in the amount of 5.1 cents for 
 each fully paid breakfast and for each free and reduced price 
 breakfast not eligible for the "severe need" rate. 

    (b) In addition to paragraph (a), each school year the 
 state shall reimburse schools 10.5 cents for each free and 
 reduced price breakfast not eligible for the "severe need" rate 
 if between 33 and 40 percent of the school lunches served during 
 the second preceding school year were served free or at a 
 reduced price. 

    HIST: 1993 c 224 art 8 s 2; 1994 c 647 art 8 s 7 

     124.647 Waiver; pilot school breakfast programs. 

    The commissioner of children, families, and learning shall 
 request a waiver from the United States government as necessary 
 to allow pilot school breakfast programs to be implemented in 
 school districts where no program currently exists.  The pilot 
 school breakfast program shall provide students with breakfasts 
 designed to be taken with the student and consumed away from the 
 school site. 

    HIST: 1986 c 404 s 4; 1Sp1995 c 3 art 16 s 13 

     124.6471 School breakfast incentive. 

    The commissioner of children, families, and learning may 
 provide a cash incentive to schools to increase participation in 
 school breakfast programs or to initiate a school breakfast 
 program if none currently exists. 

    HIST: 1986 c 404 s 5; 1Sp1995 c 3 art 16 s 13 

     124.6472 School breakfast program 

    Subdivision 1.    Breakfast required.  A school district 
 shall offer a school breakfast program in every school building 
 in which at least 33 percent of the school lunches served during 
 the second preceding school year were served free or at a 
 reduced price. 

    Subd. 2.    Exemption.  Subdivision 1 does not apply to 
 a school in which fewer than 25 pupils are expected to take part 
 in the program.  It also does not apply to a school district 
 that does not participate in the national school lunch program. 

    HIST: 1989 c 329 art 8 s 5; 1990 c 562 art 8 s 27; 1991 c 265 
 art 8 s 6; 1994 c 647 art 8 s 8 

     124.6475 Summer food service replacement aid. 

    States funds are available to compensate 
 department-approved summer food program sponsors for reduced 
 federal operating reimbursement rates under Public Law Number 
 104-193, the federal summer food service program.  A sponsor is 
 eligible for summer food service replacement aid equal to the 
 sum of the following amounts: 

    (1) for breakfast service, subtract the current year 
 maximum reimbursement rate from the 1996 maximum reimbursement 
 rate and multiply the result by the number of breakfasts the 
 district served during the current school year; 

    (2) for lunch or supper service, subtract the current year 
 maximum reimbursement rate from the 1996 maximum reimbursement 
 rate and multiply the result by the number of lunches and 
 suppers the district served during the current school year; and 

    (3) for supplement service, subtract the current year 
 maximum reimbursement rate from the 1996 maximum reimbursement 
 rate and multiply the result by the number of supplement meals 
 the district served during the current school year. 

    HIST: 1Sp1997 c 4 art 6 s 13 

     124.648 Milk program. 

    Subdivision 1.    Legislative findings.  The legislature 
 finds that for best health and well-being, school children in 
 the state should receive at least one serving of milk each day.  
 The school milk program established in this section is to 
 provide school districts in the state with added resources so 
 that all kindergarten students in public and nonpublic schools 
 may have access to wholesome milk on a daily basis. 

    Subd. 2.    Establishment; school participation.  Each 
 school district in the state is encouraged to participate in the 
 state-supported school milk program for kindergartners.  
 Participating districts shall provide one serving of milk on 
 each school day to each kindergarten student attending a public 
 or nonpublic school in the district.  No student is required to 
 accept the milk that is provided by the district.  The program 
 must be promoted and operated under the direction of the 
 commissioner or the commissioner's designee. 

    Subd. 3.    Program guidelines; duties of the 
 commissioner.  (a) The commissioner shall: 

    (1) encourage all districts to participate in the school 
 milk program for kindergartners; 

    (2) prepare program guidelines, not subject to chapter 14 
 until July 1, 1998, which will effectively and efficiently 
 distribute appropriated and donated money to participating 
 districts; and 

    (3) seek donations and matching funds from appropriate 
 private and public sources. 

    (b) Program guidelines may provide for disbursement to 
 districts through a mechanism of prepayments or by reimbursement 
 for approved program expenses. 

    (c) It is suggested that the benefits of the school milk 
 program may reach the largest number of kindergarten students if 
 districts are allowed to submit annual bids stating the 
 per-serving level of support that would be acceptable to the 
 district for their participation in the program.  The 
 commissioner would review all bids received and approve bids in 
 sufficient number and value to maximize the provision of milk to 
 kindergarten students consistent with available funds. 

    Subd. 4.    Reimbursement.  In accordance with program 
 guidelines, the commissioner shall prepay or reimburse 
 participating school districts for the state share of the 
 district's cost for providing milk to kindergarten students. 

    HIST: 1988 c 688 art 16 s 1; 1997 c 187 art 4 s 4 

  124.65 Repealed, 1987 c 398 art 1 s 27 subd 1 

  124.66 Repealed, 1987 c 398 art 1 s 27 subd 1 

  124.67 Repealed, 1993 c 224 art 12 s 32; 1993 c 374 s 22 

  124.68 Repealed, 1993 c 224 art 12 s 32; 1993 c 374 s 22 

  124.69 Repealed, 1993 c 224 art 12 s 32; 1993 c 374 s 22 

     124.71 Tax and aid anticipation borrowing; definitions. 

    Subdivision 1.  School district as used in sections 124.71 
 to 124.76 means any school district in the state of Minnesota, 
 however organized and wherever located. 

    Subd. 2.  Commissioner as used in sections 124.71 to 124.76 
 means the commissioner of children, families, and learning. 

    HIST: 1963 c 371 s 1; 1981 c 1 s 3; 1Sp1986 c 1 art 10 s 5; 
 1987 c 258 s 12; 1989 c 246 s 2; 1990 c 375 s 3; 1Sp1995 c 3 art 
 16 s 13; 1996 c 412 art 13 s 17 

     124.72 Application of limiting tax legislation. 

    Notwithstanding the provisions of section 471.69 or section 
 471.75, or of any other provision of law which by per capita 
 limitation, local tax rate limitation, or otherwise, limits the 
 power of a school district to incur any debt or to issue any 
 warrant or order, a school district has the powers in sections 
 124.71 to 124.76 specifically conferred upon it and all powers 
 incident and necessary to carrying out the purposes of sections 
 124.71 to 124.76. 

    HIST: 1963 c 371 s 2; 1981 c 1 s 4; 1988 c 719 art 5 s 84; 
 1Sp1989 c 1 art 2 s 11 

     124.73 Authority to borrow money, limitations. 

    Subdivision 1.  The board of any school district may borrow 
 money upon negotiable tax anticipation certificates of 
 indebtedness, in the manner and subject to the limitations set 
 forth in sections 124.71 to 124.76, for the purpose of 
 anticipating general taxes theretofore levied by the district 
 for school purposes, but the aggregate of such borrowing under 
 this subdivision shall never exceed 75 percent of such taxes 
 which are due and payable in the calendar year, and as to which 
 taxes no penalty for nonpayment or delinquency has attached.  In 
 determining the amount of taxes due and payable in the calendar 
 year, any amounts paid by the state to replace such taxes, 
 whether paid in that calendar year or not, shall be included. 

    Subd. 2.  The board may also borrow money in the manner and 
 subject to the limitations set forth in sections 124.71 to 
 124.76 in anticipation of receipt of state aids for schools as 
 defined in Minnesota Statutes and of federal school aids to be 
 distributed by or through the department of children, families, 
 and learning.  The aggregate of such borrowings under this 
 subdivision shall never exceed 75 percent of such aids which are 
 receivable by said school district in the school year (from July 
 1 to June 30) in which the money is borrowed, as estimated and 
 certified by the commissioner. 

    HIST: 1963 c 371 s 3; 1981 c 1 s 5; 1982 c 642 s 18; 1993 c 
 224 art 1 s 5; 1Sp1995 c 3 art 16 s 13 

     124.74 Enabling resolution; form of certificates of 
  indebtedness. 

    The board may authorize and effect such borrowing, and may 
 issue such certificates of indebtedness upon passage of a 
 resolution specifying the amount and purposes for which it deems 
 such borrowing is necessary, which resolution shall be adopted 
 by a vote of at least two-thirds of its members. The board shall 
 fix the amount, date, maturity, form, denomination, and other 
 details thereof, not inconsistent herewith, and shall fix the 
 date and place for receipt of bids for the purchase thereof when 
 bids are required and direct the clerk to give notice thereof. 

    HIST: 1963 c 371 s 4; 1978 c 764 s 73 

     124.75 Repayment; maturity date of certificates; 
  interest.  

    The proceeds of the current tax levies and future state aid 
 receipts or other school funds which may become available shall 
 be applied to the extent necessary to repay such certificates 
 and the full faith and credit of the school district shall be 
 pledged to their payment.  Certificates issued in anticipation 
 of receipt of aids shall mature not later than the anticipated 
 date of receipt of the aids so anticipated as estimated by the 
 commissioner, but in no event later than three months after the 
 close of the school year in which issued.  Certificates issued 
 in anticipation of receipt of taxes shall mature not later than 
 the anticipated date of receipt in full of the taxes so 
 anticipated, but in no event later than three months after the 
 close of the calendar year in which issued.  The certificates 
 shall be sold at not less than par.  The certificates shall bear 
 interest after maturity until paid at the rate they bore before 
 maturity and any interest accruing before or after maturity 
 shall be paid from any available school funds.  

    HIST: 1963 c 371 s 5; 1969 c 874 s 1 

     124.755 State payment of debt obligation upon potential 
  default; repayment; state obligation not debt. 

    Subdivision 1.    Definitions.  For the purposes of this 
 section, the term "debt obligation" means either a tax or aid 
 anticipation certificate of indebtedness or a general obligation 
 bond.  

    Subd. 2.    Notifications; payment; appropriation.  (a) 
 If a school district believes that it may be unable to make a 
 principal or interest payment on any outstanding debt obligation 
 on the date that payment is due, it must notify the commissioner 
 of children, families, and learning of that fact as soon as 
 possible, but not less than 15 working days before the date that 
 principal or interest payment is due.  The notice shall include 
 the name of the school district, an identification of the debt 
 obligation issue in question, the date the payment is due, the 
 amount of principal and interest due on the payment date, the 
 amount of principal or interest that the school district will be 
 unable to repay on that date, the paying agent for the debt 
 obligation, the wire transfer instructions to transfer funds to 
 that paying agent, and an indication as to whether a payment is 
 being requested by the district under this section.  If a paying 
 agent becomes aware of a potential default, it shall inform the 
 commissioner of children, families, and learning of that fact.  
 After receipt of a notice which requests a payment under this 
 section, after consultation with the school district and the 
 paying agent, and after verification of the accuracy of the 
 information provided, the commissioner of children, families, 
 and learning shall notify the commissioner of finance of the 
 potential default.  

    (b) Except as provided in subdivision 9, upon receipt of 
 this notice from the commissioner of children, families, and 
 learning, which must include a final figure as to the amount due 
 that the school district will be unable to repay on the date 
 due, the commissioner of finance shall issue a warrant and 
 authorize the commissioner of children, families, and learning 
 to pay to the paying agent for the debt obligation the specified 
 amount on or before the date due. The amounts needed for the 
 purposes of this subdivision are annually appropriated to the 
 department of children, families, and learning from the state 
 general fund. 

    (c) The departments of children, families, and learning and 
 finance shall jointly develop detailed procedures for school 
 districts to notify the state that they have obligated 
 themselves to be bound by the provisions of this section, 
 procedures for school districts and paying agents to notify the 
 state of potential defaults and to request state payment under 
 this section, and procedures for the state to expedite payments 
 to prevent defaults.  The procedures are not subject to chapter 
 14. 

    Subd. 3.    School district bound; interest rate on state 
 paid amount.  If, at the request of a school district, the 
 state has paid part or all of the principal or interest due on a 
 school district's debt obligation on a specific date, the school 
 district is bound by all provisions of this section and the 
 amount paid shall bear taxable interest from the date paid until 
 the date of repayment at the state treasurer's invested cash 
 rate as it is certified by the commissioner of finance.  
 Interest shall only accrue on the amounts paid and outstanding 
 less the reduction in aid under subdivision 4 and other payments 
 received from the district. 

    Subd. 4.    Pledge of district's full faith and credit.  
 If, at the request of a school district, the state has paid part 
 or all of the principal or interest due on a school district's 
 debt obligation on a specific date, the pledge of the full faith 
 and credit and unlimited taxing powers of the school district to 
 repay the principal and interest due on those debt obligations 
 shall also, without an election or the requirement of a further 
 authorization, become a pledge of the full faith and credit and 
 unlimited taxing powers of the school district to repay to the 
 state the amount paid, with interest.  Amounts paid by the state 
 shall be repaid in the order in which the state payments were 
 made. 

    Subd. 5.    Aid reduction for repayment.  Except as 
 provided in this subdivision, the state shall reduce the state 
 aid payable to the school district under chapters 124, 124A, and 
 273, according to the schedule in section 124.155, subdivision 
 2, by the amount paid by the state under this section on behalf 
 of the school district, plus the interest due on it, and the 
 amount reduced shall revert from the appropriate account to the 
 state general fund.  Payments from the school endowment fund or 
 any federal aid payments shall not be reduced.  If, after review 
 of the financial situation of the school district, the 
 commissioner of children, families, and learning advises the 
 commissioner of finance that a total reduction of the aids would 
 cause an undue hardship on or an undue disruption of the 
 educational program of the school district, the commissioner of 
 children, families, and learning, with the approval of the 
 commissioner of finance, may establish a different schedule for 
 reduction of those aids to repay the state.  The amount of aids 
 to be reduced are decreased by any amounts repaid to the state 
 by the school district from other revenue sources. 

    Subd. 6.    Tax levy for repayment.  (a) With the 
 approval of the commissioner of children, families, and 
 learning, a school district may levy in the year the state makes 
 a payment under this section an amount up to the amount 
 necessary to provide funds for the repayment of the amount paid 
 by the state plus interest through the date of estimated 
 repayment by the school district.  The proceeds of this levy may 
 be used only for this purpose unless they are in excess of the 
 amount actually due, in which case the excess shall be used to 
 repay other state payments made under this section or shall be 
 deposited in the debt redemption fund of the school district.  
 This levy shall be an increase in the levy limits of the school 
 district for purposes of section 275.065, subdivision 6.  The 
 amount of aids to be reduced to repay the state shall be 
 decreased by the amount levied.  This levy by the school 
 district is not eligible for debt service equalization under 
 section 124.95. 

    (b) If the state is not repaid in full for a payment made 
 under this section by November 30 of the calendar year following 
 the year in which the state makes the payment, the commissioner 
 of children, families, and learning must require the school 
 district to certify a property tax levy in an amount up to the 
 amount necessary to provide funds for repayment of the amount 
 paid by the state plus interest through the date of estimated 
 repayment by the school district.  To prevent undue hardship, 
 the commissioner may allow the district to certify the levy over 
 a five-year period.  The proceeds of the levy may be used only 
 for this purpose unless they are in excess of the amount 
 actually due, in which case the excess shall be used to repay 
 other state payments made under this section or shall be 
 deposited in the debt redemption fund of the school district.  
 This levy shall be an increase in the levy limits of the school 
 district for purposes of section 275.065, subdivision 6.  If the 
 commissioner orders the district to levy, the amount of aids 
 reduced to repay the state shall be decreased by the amount 
 levied.  This levy by the school district is not eligible for 
 debt service equalization under section 124.95 or any successor 
 provision.  A levy under this subdivision must be explained as a 
 specific increase at the meeting required under section 275.065, 
 subdivision 6.  

    Subd. 7.    Election as to mandatory application.  A 
 school district may covenant and obligate itself, prior to the 
 issuance of an issue of debt obligations, to notify the 
 commissioner of children, families, and learning of a potential 
 default and to use the provisions of this section to guarantee 
 payment of the principal and interest on those debt obligations 
 when due.  If the school district obligates itself to be bound 
 by this section, it shall covenant in the resolution that 
 authorizes the issuance of the debt obligations to deposit with 
 the paying agent three business days prior to the date on which 
 a payment is due an amount sufficient to make that payment or to 
 notify the commissioner of children, families, and learning 
 under subdivision 1 that it will be unable to make all or a 
 portion of that payment.  A school district that has obligated 
 itself shall include a provision in its agreement with the 
 paying agent for that issue that requires the paying agent to 
 inform the commissioner of children, families, and learning if 
 it becomes aware of a potential default in the payment of 
 principal or interest on that issue or if, on the day two 
 business days prior to the date a payment is due on that issue, 
 there are insufficient funds to make the payment on deposit with 
 the paying agent.  If a school district either covenants to be 
 bound by this section or accepts state payments under this 
 section to prevent a default of a particular issue of debt 
 obligations, the provisions of this section shall be binding as 
 to that issue as long as any debt obligation of that issue 
 remain outstanding.  If the provisions of this section are or 
 become binding for more than one issue of debt obligations and a 
 district is unable to make payments on one or more of those 
 issues, it shall continue to make payments on the remaining 
 issues.  

    Subd. 8.    Mandatory plan; technical assistance.  If 
 the state makes payments on behalf of a district under this 
 section or the district defaults in the payment of principal or 
 interest on an outstanding debt obligation, it shall submit a 
 plan to the commissioner of children, families, and learning for 
 approval specifying the measures it intends to implement to 
 resolve the issues which led to its inability to make the 
 payment and to prevent further defaults.  The department shall 
 provide technical assistance to the school district in preparing 
 its plan.  If the commissioner determines that a school 
 district's plan is not adequate, the commissioner shall notify 
 the school district that the plan has been disapproved, the 
 reasons for the disapproval, and that the state shall not make 
 future payments under this section for debt obligations issued 
 after the date specified in that notice until its plan is 
 approved.  The commissioner may also notify the school district 
 that until its plan is approved, other aids due the district 
 will be withheld after a date specified in the notice. 

    Subd. 9.    State bond rating.  If the commissioner of 
 finance determines that the credit rating of the state would be 
 adversely affected thereby, the commissioner shall not issue 
 warrants under subdivision 2 for the payment of principal or 
 interest on any debt obligations for which a school district did 
 not, prior to their issuance, obligate itself to be bound by the 
 provisions of this section. 

    HIST: 1993 c 224 art 1 s 6; 1Sp1995 c 3 art 16 s 13 

     124.76 Sale of certificates; disbursement of proceeds. 

    Subdivision 1.    Public sale.  The clerk of the board 
 shall give notice of the proposed sale as required by chapter 
 475.  At the time and place so fixed, such certificates may be 
 sold by the board, or its officers if authorized by the board, 
 to the bidder who will agree to purchase the same on terms 
 deemed most favorable to the district.  Such certificates shall 
 be executed and delivered as required by chapter 475.  The money 
 so received shall be disbursed solely for the purposes for which 
 such taxes are levied or aids are receivable.  The purchaser of 
 such certificates shall not be obligated to see to such 
 application of the proceeds. 

    Subd. 2.    Public sale exception.  Public sale of tax 
 and aid anticipation certificates of indebtedness according to 
 subdivision 1 shall not be required (1) if the proposed 
 borrowing is in an amount less than $400,000, and if the sum of 
 all outstanding tax and aid anticipation certificates issued by 
 the board within the preceding six months does not exceed 
 $400,000 or, (2) if the certificates mature no later than 13 
 months after their date of issue.  If no public sale is held, 
 the certificates of indebtedness may be sold in accordance with 
 the most favorable of two or more proposals solicited privately 
 or the interest rates may be determined by direct negotiation.  

    HIST: 1963 c 371 s 6; 1974 c 406 s 15; 1978 c 764 s 74; 
 1Sp1985 c 12 art 7 s 20; 1987 c 344 s 1 

  124.77 Repealed, 1981 c 1 s 7 

  124.78 Repealed, 1981 c 1 s 7 

  124.781 Repealed, 3Sp1981 c 1 art 1 s 9 

  124.79 Repealed, 1993 c 224 art 12 s 32; 1993 c 374 s 22 

  124.801 Repealed, 1975 c 432 s 98 

  124.802 Repealed, 1975 c 432 s 98 

  124.803 Repealed, 1975 c 432 s 98 

  124.804 Repealed, 1975 c 432 s 98 

  124.805 Repealed, 1975 c 432 s 98 

  124.806 Repealed, 1975 c 432 s 98 

     124.82 Building construction down payment program. 

    Subdivision 1.    Creation of a down payment account.  A 
 school district may create a down payment account as a separate 
 account in its construction fund.  All proceeds from the down 
 payment levy must be deposited in the capital expenditure fund 
 and transferred to this account.  Interest income attributable 
 to the down payment account must be credited to the account. 

    Subd. 2.    Uses of the account.  Money in the down 
 payment account must be used as a down payment for the future 
 costs of acquisition and betterment for a project that has been 
 reviewed under section 121.15 and has been approved according to 
 subdivision 3. 

    Subd. 3.    Facilities down payment levy referendum.  A 
 district may levy the local tax rate approved by a majority of 
 the electors voting on the question to provide funds for a down 
 payment for an approved project.  The election must take place 
 no more than five years before the estimated date of 
 commencement of the project.  The referendum must be held on a 
 date set by the school board.  A referendum for a project not 
 receiving a positive review and comment by the commissioner 
 under section 121.15 must be approved by at least 60 percent of 
 the voters at the election.  The referendum may be called by the 
 school board and may be held: 

    (1) separately, before an election for the issuance of 
 obligations for the project under chapter 475; or 

    (2) in conjunction with an election for the issuance of 
 obligations for the project under chapter 475; or 

    (3) notwithstanding section 475.59, as a conjunctive 
 question authorizing both the down payment levy and the issuance 
 of obligations for the project under chapter 475.  Any 
 obligations authorized for a project may be issued within five 
 years of the date of the election. 

    The ballot must provide a general description of the 
 proposed project, state the estimated total cost of the project, 
 state whether the project has received a positive or negative 
 review and comment from the commissioner of children, families, 
 and learning, state the maximum amount of the down payment levy 
 as a percentage of net tax capacity, state the amount that will 
 be raised by that local tax rate in the first year it is to be 
 levied, and state the maximum number of years that the levy 
 authorization will apply. 

    The ballot must contain a textual portion with the 
 information required in this section and a question stating 
 substantially the following: 

    "Shall the down payment levy proposed by the board of 
 .......... School District No. .......... be approved?" 

    If approved, the amount provided by the approved local tax 
 rate applied to the net tax capacity for the year preceding the 
 year the levy is certified may be certified for the number of 
 years approved. 

    In the event a conjunctive question proposes to authorize 
 both the down payment levy and the issuance of obligations for 
 the project, appropriate language authorizing the issuance of 
 obligations must also be included in the question.  

    The district must notify the commissioner of children, 
 families, and learning of the results of the referendum. 

    Subd. 4.    Excess building construction fund levy 
 proceeds.  Any funds remaining in the down payment account 
 that are not applied to the payment of the costs of the approved 
 project before its final completion must be transferred to the 
 district's debt redemption fund.  

    HIST: 1988 c 718 art 8 s 18; 1988 c 719 art 5 s 84; 1989 c 329 
 art 13 s 4; 1Sp1989 c 1 art 2 s 11; 1Sp1995 c 3 art 16 s 13 

     124.825 Historic building revenue. 

    Subdivision 1.    Eligibility.  A district that 
 maintains a school building listed on the National Register of 
 Historic Places is eligible for historic building revenue. 

    Subd. 2.    Revenue.  A district's historic building 
 revenue is equal to $100 times the number of actual pupil units 
 served in the school building. 

    Subd. 3.    Levy.  To obtain historic building revenue, 
 a district may levy an amount, not to exceed the district's 
 revenue, equal to the district's revenue authority for that year 
 times the lesser of one or the ratio of the adjusted net tax 
 capacity divided by its actual pupil units for that school year 
 to $10,000. 

    Subd. 4.    Aid.  A district's historic building aid is 
 equal to the difference between the district's revenue minus the 
 levy.  If a district does not levy the entire amount permitted, 
 the district's aid must be reduced in proportion to the amount 
 levied. 

    HIST: 1Sp1997 c 4 art 4 s 16 

     124.829 Health, safety, and environmental management. 

    "Health, safety, and environmental management" means school 
 district activities necessary for a district's compliance with 
 state law and rules of the departments of health, labor and 
 industry, public safety, and pollution control agency as well as 
 any related federal standards.  These activities include hazard 
 assessment, required training, record keeping, and program 
 management. 

    HIST: 1993 c 224 art 5 s 21 

     124.83 Capital expenditure; health and safety. 

    Subdivision 1.    Health and safety program.  To receive 
 health and safety revenue for any fiscal year a district must 
 submit to the commissioner of children, families, and learning 
 an application for aid and levy by the date determined by the 
 commissioner.  The application may be for hazardous substance 
 removal, fire and life safety code repairs, labor and industry 
 regulated facility and equipment violations, and health, safety, 
 and environmental management, including indoor air quality 
 management.  The application must include a health and safety 
 program adopted by the school district board.  The program must 
 include the estimated cost, per building, of the program by 
 fiscal year. 

    Subd. 2.    Contents of program.  A district must adopt 
 a health and safety program.  The program must include plans, 
 where applicable, for hazardous substance removal, fire and life 
 safety code repairs, regulated facility and equipment 
 violations, and health, safety, and environmental management, 
 including indoor air quality management.  

    (a) A hazardous substance plan must contain provisions for 
 the removal or encapsulation of asbestos from school buildings 
 or property, asbestos-related repairs, cleanup and disposal of 
 polychlorinated biphenyls found in school buildings or property, 
 and cleanup, removal, disposal, and repairs related to storing 
 heating fuel or transportation fuels such as alcohol, gasoline, 
 fuel, oil, and special fuel, as defined in section 296.01.  If a 
 district has already developed a plan for the removal or 
 encapsulation of asbestos as required by the federal Asbestos 
 Hazard Emergency Response Act of 1986, the district may use a 
 summary of that plan, which includes a description and schedule 
 of response actions, for purposes of this section.  The plan 
 must also contain provisions to make modifications to existing 
 facilities and equipment necessary to limit personal exposure to 
 hazardous substances, as regulated by the federal Occupational 
 Safety and Health Administration under Code of Federal 
 Regulations, title 29, part 1910, subpart Z; or is determined by 
 the commissioner to present a significant risk to district staff 
 or student health and safety as a result of foreseeable use, 
 handling, accidental spill, exposure, or contamination. 

    (b) A fire and life safety plan must contain a description 
 of the current fire and life safety code violations, a plan for 
 the removal or repair of the fire and life safety hazard, and a 
 description of safety preparation and awareness procedures to be 
 followed until the hazard is fully corrected. 

    (c) A facilities and equipment violation plan must contain 
 provisions to correct health and safety hazards as provided in 
 department of labor and industry standards pursuant to section 
 182.655.  

    (d) A health, safety, and environmental management plan 
 must contain a description of training, recordkeeping, hazard 
 assessment, and program management as defined in section 124.829.

    (e) A plan to test for and mitigate radon produced hazards. 

    (f) A plan to monitor and improve indoor air quality. 

    Subd. 3.    Health and safety revenue.  A district's 
 health and safety revenue for a fiscal year equals: 

    (1) the sum of (a) the total approved cost of the 
 district's hazardous substance plan for fiscal years 1985 
 through 1989, plus (b) the total approved cost of the district's 
 health and safety program for fiscal year 1990 through the 
 fiscal year to which the levy is attributable, minus 

    (2) the sum of (a) the district's total hazardous substance 
 aid and levy for fiscal years 1985 through 1989 under sections 
 124.245 and 275.125, subdivision 11c, plus (b) the district's 
 health and safety revenue under this subdivision, for years 
 before the fiscal year to which the levy is attributable, plus 
 (c) the amount of other federal, state, or local receipts for 
 the district's hazardous substance or health and safety programs 
 for fiscal year 1985 through the fiscal year to which the levy 
 is attributable. 

    Subd. 4.    Health and safety levy.  To receive health 
 and safety revenue, a district may levy an amount equal to the 
 district's health and safety revenue as defined in subdivision 3 
 multiplied by the lesser of one, or the ratio of the quotient 
 derived by dividing the adjusted net tax capacity of the 
 district for the year preceding the year the levy is certified 
 by the actual pupil units in the district for the school year to 
 which the levy is attributable, to $4,707.50. 

    Subd. 5.    Health and safety aid.  A district's health 
 and safety aid is the difference between its health and safety 
 revenue and its health and safety levy.  If a district does not 
 levy the entire amount permitted, health and safety aid must be 
 reduced in proportion to the actual amount levied.  Health and 
 safety aid may not be reduced as a result of reducing a 
 district's health and safety levy according to section 121.912.  

    Subd. 6.    Uses of health and safety revenue.  Health 
 and safety revenue may be used only for approved expenditures 
 necessary to correct fire safety hazards, life safety hazards, 
 or for the removal or encapsulation of asbestos from school 
 buildings or property, asbestos-related repairs, cleanup and 
 disposal of polychlorinated biphenyls found in school buildings 
 or property, or the cleanup, removal, disposal, and repairs 
 related to storing heating fuel or transportation fuels such as 
 alcohol, gasoline, fuel oil, and special fuel, as defined in 
 section 296.01, labor and industry regulated facility and 
 equipment hazards, and health, safety, and environmental 
 management.  Health and safety revenue must not be used for the 
 construction of new facilities or the purchase of portable 
 classrooms.  The revenue may not be used for a building or 
 property or part of a building or property used for 
 post-secondary instruction or administration or for a purpose 
 unrelated to elementary and secondary education. 

    Subd. 7.    Proration.  In the event that the health and 
 safety aid available for any year is prorated, a district having 
 its aid prorated may levy an additional amount equal to the 
 amount not paid by the state due to proration. 

    Subd. 8.    Health, safety, and environmental management 
 cost.  (a) A district's cost for health, safety, and 
 environmental management is limited to the lesser of:  

    (1) actual cost to implement their plan; or 

    (2) an amount determined by the commissioner, based on 
 enrollment, building age, and size. 

    (b) Effective July 1, 1993, the department of children, 
 families, and learning may contract with regional service 
 organizations, private contractors, Minnesota safety council, or 
 state agencies to provide management assistance to school 
 districts for health and safety capital projects.  Management 
 assistance is the development of written programs for the 
 identification, recognition and control of hazards, and 
 prioritization and scheduling of district health and safety 
 capital projects. 

    (c) Notwithstanding paragraph (b), the department may 
 approve revenue, up to the limit defined in paragraph (a) for 
 districts having an approved health, safety, and environmental 
 management plan that uses district staff to accomplish 
 coordination and provided services. 

    HIST: 1988 c 718 art 8 s 19; 1988 c 719 art 5 s 84; 1989 c 329 
 art 5 s 11-13; 1Sp1989 c 1 art 6 s 6; art 9 s 4; 1990 c 562 art 
 5 s 8; art 10 s 5; 1990 c 604 art 8 s 1,2; 1991 c 130 s 19,20; 
 1991 c 265 art 5 s 6; 1993 c 224 art 5 s 22-26; 1994 c 647 art 6 
 s 28; 1Sp1995 c 3 art 5 s 7; art 16 s 13; 1Sp1997 c 4 art 4 s 
 17,18 

     124.84 Handicapped access and fire safety improvements 
  to school buildings. 

    Subdivision 1.    Removal of architectural barriers.  If 
 a school board has insufficient money in its capital expenditure 
 fund to remove architectural barriers from a building it owns in 
 order to allow a pupil to attend a school in the pupil's 
 attendance area or to meet the needs of an employee with a 
 disability, a district may submit an application to the 
 commissioner of children, families, and learning containing at 
 least the following: 

    (1) program modifications that the board considered, such 
 as relocating classrooms, providing an accessible unisex 
 bathroom, providing alternative library resources, or using 
 special equipment, such as bookcarts, and the reasons the 
 modifications were not feasible; 

    (2) a description of the proposed building modifications 
 and the cost of the modifications; and 

    (3) the age and market value of the building. 

    Individuals developing an application for a school district 
 shall complete a workshop, developed jointly by the commissioner 
 of children, families, and learning and the council on 
 disability, about access criteria. 

    In consultation with the council on disability, the 
 commissioner shall develop criteria to determine the 
 cost-effectiveness of removing barriers in older buildings. 

    The commissioner shall approve or disapprove an application 
 within 60 days of receiving it.  

    Subd. 2.    Fire safety modifications.  If a school 
 district has insufficient money in its capital expenditure fund 
 to make modifications to a school building required by a fire 
 inspection conducted according to section 121.1502, the district 
 may submit an application to the commissioner of children, 
 families, and learning containing information required by the 
 commissioner.  The commissioner shall approve or disapprove of 
 the application according to criteria established by the 
 commissioner.  The criteria shall take into consideration the 
 cost-effectiveness of making modifications to older buildings. 

    Subd. 3.    Levy authority.  The district may levy up to 
 $300,000 under this section, as approved by the commissioner.  
 The approved amount may be levied over eight or fewer years. 

    Subd. 4.    Levy authority in combined districts.  
 Notwithstanding subdivision 3, a district that has combined or 
 consolidated may levy up to 50 percent times $300,000 times the 
 number of former districts that operated on June 30, 1991, in 
 the area that now makes up the combined or consolidated 
 district.  The approved amount is reduced by any amount levied 
 under subdivision 3 in the consolidated or combined district or 
 in the former districts that make up the consolidated or 
 combined district.  Levy authority under this subdivision 
 expires at the same time as levy authority under subdivision 3. 

    HIST: 1991 c 265 art 5 s 7; 1992 c 499 art 5 s 13; 1994 c 647 
 art 5 s 5; 1Sp1995 c 3 art 5 s 8; art 16 s 13 

     124.85 Energy efficiency projects. 

    Subdivision 1.    Definitions.  The definitions in this 
 subdivision apply to this section. 

    (a) "Energy conservation measure" means a training program 
 or facility alteration designed to reduce energy consumption or 
 operating costs and includes: 

    (1) insulation of the building structure and systems within 
 the building; 

    (2) storm windows and doors, caulking or weatherstripping, 
 multiglazed windows and doors, heat absorbing or heat reflective 
 glazed and coated window and door systems, additional glazing, 
 reductions in glass area, and other window and door system 
 modifications that reduce energy consumption; 

    (3) automatic energy control systems; 

    (4) heating, ventilating, or air conditioning system 
 modifications or replacements; 

    (5) replacement or modifications of lighting fixtures to 
 increase the energy efficiency of the lighting system without 
 increasing the overall illumination of a facility, unless such 
 increase in illumination is necessary to conform to the 
 applicable state or local building code for the lighting system 
 after the proposed modifications are made; 

    (6) energy recovery systems; 

    (7) cogeneration systems that produce steam or forms of 
 energy such as heat, as well as electricity, for use primarily 
 within a building or complex of buildings; 

    (8) energy conservation measures that provide long-term 
 operating cost reductions.  

    (b) "Guaranteed energy savings contract" means a contract 
 for the evaluation and recommendations of energy conservation 
 measures, and for one or more energy conservation measures.  The 
 contract must provide that all payments, except obligations on 
 termination of the contract before its expiration, are to be 
 made over time, but not to exceed 15 years from the date of 
 final installation, and the savings are guaranteed to the extent 
 necessary to make payments for the systems. 

    (c) "Qualified provider" means a person or business 
 experienced in the design, implementation, and installation of 
 energy conservation measures.  A qualified provider to whom the 
 contract is awarded shall give a sufficient bond to the school 
 district for its faithful performance. 

    (d) "Commissioner" means the commissioner of public service.

    Subd. 2.    Energy efficiency contract.  (a) 
 Notwithstanding any law to the contrary, a school district may 
 enter into a guaranteed energy savings contract with a qualified 
 provider to significantly reduce energy or operating costs. 

    (b) Before entering into a contract under this subdivision, 
 the board shall comply with clauses (1) to (5). 

    (1) The board shall seek proposals from multiple qualified 
 providers by publishing notice of the proposed guaranteed energy 
 savings contract in the board's official newspaper and in other 
 publications if the board determines that additional publication 
 is necessary to notify multiple qualified providers. 

    (2) The school board shall select the qualified provider 
 that best meets the needs of the board.  The school board shall 
 provide public notice of the meeting at which it will select the 
 qualified provider. 

    (3) The contract between the board and the qualified 
 provider must describe the methods that will be used to 
 calculate the costs of the contract and the operational and 
 energy savings attributable to the contract. 

    (4) The qualified provider shall issue a report to the 
 board giving a description of all costs of installations, 
 modifications, or remodeling, including costs of design, 
 engineering, installation, maintenance, repairs, or debt 
 service, and giving detailed calculations of the amounts by 
 which energy or operating costs will be reduced and the 
 projected payback schedule in years. 

    (5) The board shall provide published notice of the meeting 
 in which it proposes to award the contract, the names of the 
 parties to the proposed contract, and the contract's purpose. 

    Subd. 2a.    Evaluation by commissioner.  Upon request 
 of the school board, the commissioner of public service shall 
 review the report required in subdivision 2 and provide an 
 evaluation to the board on the proposed contract within 15 
 working days of receiving the report.  In evaluating the 
 proposed contract, the commissioner shall determine whether the 
 detailed calculations of the costs and of the energy and 
 operating savings are accurate and reasonable.  The commissioner 
 may request additional information about a proposed contract as 
 the commissioner deems necessary.  If the commissioner requests 
 additional information, the commissioner shall not be required 
 to submit an evaluation to the board within fewer than ten 
 working days of receiving the requested information.  

    Subd. 2b.    Review of savings under contract.  Upon 
 request of the school board, the commissioner shall conduct a 
 review of the energy and operating cost savings realized under a 
 guaranteed energy savings contract every three years during the 
 period a contract is in effect.  The commissioner shall compare 
 the savings realized under the contract during the period under 
 review with the calculations of savings included in the report 
 required under subdivision 2 and provide an evaluation to the 
 board concerning the performance of the system and the accuracy 
 and reasonableness of the claimed energy and operating cost 
 savings. 

    Subd. 2c.    Payment of review expenses.  The 
 commissioner of public service may charge a school district 
 requesting services under subdivisions 2a and 2b actual costs 
 incurred by the department while conducting the review, or 
 one-half percent of the total identified project cost, whichever 
 is less.  Before conducting the review, the commissioner shall 
 notify a school district requesting review services that 
 expenses will be charged to the school district.  The 
 commissioner shall bill the school district upon completion of 
 the contract review.  Money collected by the commissioner under 
 this subdivision must be deposited in the general fund.  A 
 district may include the cost of a review by the commissioner 
 under subdivision 2a in a contract made pursuant to this section.

    Subd. 3.    Contract provisions.  Guaranteed energy 
 savings contracts that include a written guarantee that savings 
 will meet or exceed the cost of energy conservation measures is 
 not subject to competitive bidding requirements.  The contract 
 is not subject to section 123.37 or 471.345. 

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

    Subd. 5.    Installation contracts.  A school district 
 may enter into an installment payment contract for the purchase 
 and installation of energy conservation measures.  The contract 
 must provide for payments of not less than 1/15 of the price to 
 be paid within two years from the date of the first operation, 
 and the remaining costs to be paid monthly, not to exceed a 
 15-year term from the date of the first operation.  

    Subd. 6.    Contract continuance.  Guaranteed energy 
 savings contracts may extend beyond the fiscal year in which 
 they become effective.  The school district shall include in its 
 annual appropriations measure for each later fiscal year any 
 amounts payable under guaranteed energy savings contracts during 
 the year.  Failure of a board to make such an appropriation does 
 not affect the validity of the guaranteed energy savings 
 contract or the school district's obligations under the 
 contracts. 

    Subd. 7.    Public information.  A guaranteed energy 
 savings contract must provide that all work plans and other 
 information prepared by the qualified provider in relation to 
 the project, including a detailed description of the project, 
 are public data after the contract is entered into, except 
 information defined as trade secret information under section 
 13.37, subdivision 1, shall remain nonpublic data.  

    HIST: 1989 c 263 s 1; 1992 c 499 art 7 s 3; 1993 c 224 art 5 s 
 27-29; 1994 c 647 art 5 s 6-12; 1995 c 224 s 67 

     124.86 State revenue for American Indian tribal contract 
  or grant schools. 

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

    (a) The school must plan, conduct, and administer an 
 education program that complies with the requirements of either 
 this chapter and chapters 120, 121, 122, 123, 124A, 124C, 125, 
 126, 129, and 268A or Code of Federal Regulations, title 25, 
 sections 31.0 to 45.80. 

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

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

    Subd. 2.    Revenue amount.  An American 
 Indian-controlled tribal contract or grant school that is 
 located on a reservation within the state and that complies with 
 the requirements in subdivision 1 is eligible to receive tribal 
 contract or grant school aid.  The amount of aid is derived by: 

    (1) multiplying the formula allowance under section 
 124A.22, subdivision 2, less $170, times the difference between 
 (a) the actual pupil units as defined in section 124A.02, 
 subdivision 15, in average daily membership, excluding section 
 124.17, subdivision 2f, and (b) the number of pupils for the 
 current school year, weighted according to section 124.17, 
 subdivision 1, receiving benefits under section 123.933 or 
 123.935 or for which the school is receiving reimbursement under 
 section 126.23; 

    (2) adding to the result in clause (1) an amount equal to 
 the product of the formula allowance under section 124A.22, 
 subdivision 2, less $300 times the tribal contract compensation 
 revenue pupil units; 

    (3) subtracting from the result in clause (2) the amount of 
 money allotted to the school by the federal government through 
 Indian School Equalization Program of the Bureau of Indian 
 Affairs, according to Code of Federal Regulations, title 25, 
 part 39, subparts A to E, for the basic program as defined by 
 section 39.11, paragraph (b), for the base rate as applied to 
 kindergarten through twelfth grade, excluding small school 
 adjustments and additional weighting, but not money allotted 
 through subparts F to L for contingency funds, school board 
 training, student training, interim maintenance and minor 
 repair, interim administration cost, prekindergarten, and 
 operation and maintenance, and the amount of money that is 
 received according to section 126.23; 

    (4) dividing the result in clause (3) by the sum of the 
 actual pupil units in average daily membership, excluding 
 section 124.17, subdivision 2f, plus the tribal contract 
 compensation revenue pupil units; and 

    (5) multiplying the sum of the actual pupil units, 
 including section 124.17, subdivision 2f, in average daily 
 membership plus the tribal contract compensation revenue pupil 
 units by the lesser of $1,500 or the result in clause (4). 

    Subd. 3.    Waiver.  Notwithstanding subdivision 1, 
 paragraphs (a) and (b), a tribal contract or grant school: 

    (1) is not subject to the Minnesota election law; 

    (2) has no authority under this section to levy for 
 property taxes, issue and sell bonds, or incur debt; and 

    (3) may request through its managing tribal organization a 
 recommendation of the state board of education, for 
 consideration of the legislature, that a tribal contract or 
 grant school not be subject to specified statutes related to 
 independent school districts. 

    Subd. 4.    Early childhood family education revenue.  A 
 school receiving aid under this section is eligible to receive 
 early childhood family education revenue to provide early 
 childhood family education programs for parents and children who 
 are enrolled or eligible for enrollment in a federally 
 recognized tribe.  The revenue equals 1.5 times the statewide 
 average expenditure per participant under section 124.2711, 
 times the number of children and parents participating full time 
 in the program.  The program shall comply with section 121.882, 
 except that the school is not required to provide a community 
 education program or establish a community education advisory 
 council.  The program shall be designed to improve the skills of 
 parents and promote American Indian history, language, and 
 culture.  The school shall make affirmative efforts to encourage 
 participation by fathers.  Admission may not be limited to those 
 enrolled in or eligible for enrollment in a federally recognized 
 tribe. 

    Subd. 5.    Tribal contract pupil units.  Pupil units 
 for pupils enrolled in tribal contract schools shall be used 
 only for the purpose of computing tribal contract aid according 
 to this section. 

    HIST: 1989 c 329 art 3 s 15; 1990 c 426 art 1 s 16; 1990 c 562 
 art 3 s 4,5; 1991 c 265 art 3 s 16; 1994 c 647 art 9 s 11; 1996 
 c 412 art 3 s 30,31; 1Sp1997 c 4 art 2 s 29,30 

     124.90 Medical assistance payments to school districts. 

    Subdivision 1.    Eligibility.  A school district may 
 enroll as a provider in the medical assistance program and 
 receive medical assistance payments for covered special 
 education services provided to persons eligible for medical 
 assistance under chapter 256B.  To receive medical assistance 
 payments, the school district must comply with relevant 
 provisions of state and federal statutes and regulations 
 governing the medical assistance program. 

    Subd. 2.    Funding.  A school district that provides a 
 covered service to an eligible person and complies with relevant 
 requirements of the medical assistance program shall be entitled 
 to receive payment for the service provided, including that 
 portion of the payment that will subsequently be reimbursed by 
 the federal government, in the same manner as other medical 
 assistance providers.  The school district is not required to 
 provide matching funds or pay part of the costs of the service, 
 as long as the rate charged for the service does not exceed 
 medical assistance limits that apply to all medical assistance 
 providers. 

    Subd. 3.    Contract for services.  A school district 
 may contract for the provision of medical assistance-covered 
 services, and may contract with a third party agency to assist 
 in administering and billing for these services. 

    Subd. 4.    Private insurers.  A school district may 
 enroll as a provider for insurance companies to provide covered 
 special education services to eligible persons.  To receive 
 payments, the district must comply with relevant state and 
 federal statutes.  A district may contract for services, and may 
 contract with a third party agency to assist in administering 
 and billing for these services. 

    Subd. 5.    No reduction in revenue.  A school 
 district's revenue for special education programs shall not be 
 reduced by any payments for medical assistance or insurance 
 received according to this section. 

    HIST: 1989 c 191 s 1; 1990 c 562 art 3 s 6; 1994 c 647 art 3 s 
 16 

     124.91 Capital levies. 

    Subdivision 1.    To lease building or land.  (a) When a 
 district finds it economically advantageous to rent or lease a 
 building or land for any instructional purposes or for school 
 storage or furniture repair, and it determines that the 
 operating capital revenue authorized under section 124A.22, 
 subdivision 10, is insufficient for this purpose, it may apply 
 to the commissioner for permission to make an additional capital 
 expenditure levy for this purpose.  An application for 
 permission to levy under this subdivision must contain financial 
 justification for the proposed levy, the terms and conditions of 
 the proposed lease, and a description of the space to be leased 
 and its proposed use.  

    (b) The criteria for approval of applications to levy under 
 this subdivision must include:  the reasonableness of the price, 
 the appropriateness of the space to the proposed activity, the 
 feasibility of transporting pupils to the leased building or 
 land, conformity of the lease to the laws and rules of the state 
 of Minnesota, and the appropriateness of the proposed lease to 
 the space needs and the financial condition of the district.  
 The commissioner must not authorize a levy under this 
 subdivision in an amount greater than the cost to the district 
 of renting or leasing a building or land for approved purposes.  
 The proceeds of this levy must not be used for custodial or 
 other maintenance services.  A district may not levy under this 
 subdivision for the purpose of leasing or renting a 
 district-owned building to itself. 

    (c) For agreements finalized after July 1, 1997, a district 
 may not levy under this subdivision for the purpose of leasing:  
 (1) a newly constructed building used primarily for regular 
 kindergarten, elementary, or secondary instruction; or (2) a 
 newly constructed building addition or additions used primarily 
 for regular kindergarten, elementary, or secondary instruction 
 that contains more than 20 percent of the square footage of the 
 previously existing building. 

    (d) The total levy under this subdivision for a district 
 for any year must not exceed $100 times the actual pupil units 
 for the fiscal year to which the levy is attributable. 

    Subd. 2.    Pre-July 1990 lease purchase, installment buys.
  A district may annually levy the amount needed to make 
 payments required by a lease purchase agreement, installment 
 purchase agreement, or other deferred payment agreement 
 authorized by Minnesota Statutes 1989 Supplement, section 
 465.71, if:  

    (1) the agreement was approved by the commissioner before 
 July 1, 1990, according to Minnesota Statutes 1989 Supplement, 
 section 275.125, subdivision 11d; or 

    (2) the district levied in 1989 for the payments. 

    Subd. 3. Repealed, 1992 c 499 art 5 s 36 

    Subd. 4.    Cooperating districts.  A district that has 
 an agreement according to section 122.535 or 122.541 may levy 
 for the repair costs, as approved by the department of children, 
 families, and learning, of a building located in another 
 district that is a party to the agreement. 

    Subd. 5.    Interactive television.  (a) A school 
 district with its central administrative office located within 
 economic development region one, two, three, four, five, six, 
 seven, eight, nine, and ten may apply to the commissioner of 
 children, families, and learning for ITV revenue up to the 
 greater of .5 percent of the adjusted net tax capacity of the 
 district or $25,000.  Eligible interactive television 
 expenditures include the construction, maintenance, and lease 
 costs of an interactive television system for instructional 
 purposes.  An eligible school district that has completed the 
 construction of its interactive television system may also 
 purchase computer hardware and software used primarily for 
 instructional purposes and access to the Internet provided that 
 its total expenditures for interactive television maintenance 
 and lease costs and for computer hardware and software under 
 this subdivision do not exceed its interactive television 
 revenue for fiscal year 1998.  The approval by the commissioner 
 of children, families, and learning and the application 
 procedures set forth in subdivision 1 shall apply to the revenue 
 in this subdivision.  In granting the approval, the commissioner 
 must consider whether the district is maximizing efficiency 
 through peak use and off-peak use pricing structures. 

    (b) To obtain ITV revenue, a district may levy an amount 
 not to exceed the district's ITV revenue times the lesser of one 
 or the ratio of: 

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

    (2) 100 percent of the equalizing factor as defined in 
 section 124A.02, subdivision 8, for the year to which the levy 
 is attributable. 

    (c) A district's ITV aid is the difference between its ITV 
 revenue and the ITV levy. 

    (d) The revenue in the first year after reorganization for 
 a district that has reorganized under section 122.22, 122.23, or 
 122.241 to 122.247 shall be the greater of: 

    (1) the revenue computed for the reorganized district under 
 paragraph (a), or 

    (2)(i) for two districts that reorganized, 75 percent of 
 the revenue computed as if the districts involved in the 
 reorganization were separate, or 

    (ii) for three or more districts that reorganized, 50 
 percent of the revenue computed as if the districts involved in 
 the reorganization were separate. 

    (e) The revenue in paragraph (d) is increased by the 
 difference between the initial revenue and ITV lease costs for 
 leases that had been entered into by the preexisting districts 
 on the effective date of the consolidation or combination and 
 with a term not exceeding ten years.  This increased revenue is 
 only available for the remaining term of the lease.  However, in 
 no case shall the revenue exceed the amount available had the 
 preexisting districts received revenue separately. 

    (f) Effective for fiscal year 2000, the revenue under this 
 section shall be 75 percent of the amount determined in 
 paragraph (a); for fiscal year 2001, 50 percent of the amount in 
 paragraph (a); and for fiscal year 2002, 25 percent of the 
 amount in paragraph (a). 

    (g) This section expires effective for revenue for fiscal 
 year 2003, or when leases in existence on the effective date of 
 Laws 1997, First Special Session chapter 4, expire.  

    Subd. 6.    Energy conservation.  The school district 
 may annually levy, without the approval of a majority of the 
 voters in the district, an amount sufficient to repay the annual 
 principal and interest of the loan made pursuant to sections 
 216C.37 and 298.292 to 298.298.  

    Subd. 7.    Lease purchase, installment buys.  (a) Upon 
 application to, and approval by, the commissioner in accordance 
 with the procedures and limits in subdivision 1, paragraphs (a) 
 and (b), a district, as defined in this subdivision, may: 

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

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

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

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

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

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

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

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

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

    HIST: 1974 c 521 s 30; 1977 c 447 art 1 s 20; art 6 s 9; 1983 
 c 323 s 4; 1984 c 502 art 7 s 9; 1984 c 583 s 32; 1986 c 444; 
 1988 c 718 art 8 s 21; 1988 c 719 art 5 s 84; 1989 c 222 s 36; 
 1989 c 329 art 5 s 14; art 6 s 49; art 13 s 20; 1Sp1989 c 1 art 
 2 s 11; 1990 c 562 art 5 s 9,10; 1991 c 130 s 30; 1991 c 265 art 
 5 s 13; art 6 s 56; 1992 c 499 art 5 s 22; art 6 s 30; art 12 s 
 29; 1993 c 224 art 5 s 30; art 7 s 12; 1994 c 465 art 2 s 1; art 
 3 s 25; 1994 c 614 s 1; 1994 c 647 art 5 s 13; art 6 s 29; 
 1Sp1995 c 3 art 12 s 3; art 16 s 13; 1996 c 412 art 5 s 5,6; 
 1997 c 7 art 1 s 63; 1Sp1997 c 4 art 4 s 19; art 9 s 1; 3Sp1997 
 c 3 s 27 

*   NOTE:  Subdivision 3 was also amended by Laws 1995, First 
*Special Session chapter 3, article 5, section 9, to read as 
*follows: 

*   "Subd. 3.    Post-June 1992 lease purchase, installment 
*buys.  (a) Upon application to, and approval by, the 
*commissioner in accordance with the procedures and limits in 
*subdivision 1, a district, as defined in this subdivision, may: 

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

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

*   (b)(1) The obligation created by the installment contract 
*or the lease purchase agreement must not be included in the 
*calculation of net debt for purposes of section 475.53, and does 
*not constitute debt under other law." 

*   (2) An election is not required in connection with the 
*execution of the installment contract or the lease purchase 
*agreement. 

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

*   (d) In this subdivision, "district" means: 

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

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

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

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

     124.912 Miscellaneous levies. 

    Subdivision 1.    Statutory obligations.  A school 
 district may levy: 

    (1) the amount authorized for liabilities of dissolved 
 districts pursuant to section 122.45; 

    (2) the amounts necessary to pay the district's obligations 
 under section 268.052, subdivision 1, and the amounts necessary 
 to pay for job placement services offered to employees who may 
 become eligible for benefits pursuant to section 268.08 for the 
 fiscal year the levy is certified; 

    (3) the amounts necessary to pay the district's obligations 
 under section 127.05; 

    (4) the amounts authorized by section 122.531; 

    (5) the amounts necessary to pay the district's obligations 
 under section 122.533; and 

    (6) for severance pay required by sections 120.08, 
 subdivision 3, and 122.535, subdivision 6. 

    Subd. 2.    Desegregation.  Each year, special school 
 district No. 1, Minneapolis, may levy an amount not to exceed 
 $197 times its actual pupil units for that fiscal year; 
 independent school district No. 625, St. Paul, may levy an 
 amount not to exceed $197 times its actual pupil units for that 
 fiscal year; and independent school district No. 709, Duluth, 
 may levy an amount not to exceed the sum of $660,000 and the 
 amount raised by a tax rate of 2.0 percent times the adjusted 
 net tax capacity of the district.  

    Subd. 3.    Rule compliance.  Each year a district that 
 is required to implement a plan according to the requirements of 
 Minnesota Rules, parts 3535.0200 to 3535.2200, may levy an 
 amount not to exceed a net tax rate of 2.0 percent times the 
 adjusted net tax capacity of the district for taxes payable in 
 1991 and thereafter.  A district that levies according to 
 subdivision 2 may not levy according to this subdivision.  

    Subd. 4. Repealed, 1993 c 224 art 6 s 32; 1993 c 374 s 
 15 

    Subd. 5. Repealed, 1993 c 224 art 6 s 32; 1993 c 374 s 
 15 

    Subd. 6.    Crime-related costs.  For taxes levied in 
 1991 and subsequent years, payable in 1992 and subsequent years, 
 each school district may make a levy on all taxable property 
 located within the school district for the purposes specified in 
 this subdivision.  The maximum amount which may be levied for 
 all costs under this subdivision shall be equal to $1.50 
 multiplied by the population of the school district.  For 
 purposes of this subdivision, "population" of the school 
 district means the same as contained in section 275.14.  The 
 proceeds of the levy must be used for reimbursing the cities and 
 counties who contract with the school district for the following 
 purposes:  (1) to pay the costs incurred for the salaries, 
 benefits, and transportation costs of peace officers and 
 sheriffs for liaison services in the district's middle and 
 secondary schools; (2) to pay the costs for a drug abuse 
 prevention program as defined in Minnesota Statutes 1991 
 Supplement, section 609.101, subdivision 3, paragraph (f), in 
 the elementary schools; or (3) to pay the costs for a gang 
 resistance education training curriculum in the middle schools.  
 The school district must initially attempt to contract for these 
 services with the police department of each city or the 
 sheriff's department of the county within the school district 
 containing the school receiving the services.  If a local police 
 department or a county sheriff's department does not wish to 
 provide the necessary services, the district may contract for 
 these services with any other police or sheriff's department 
 located entirely or partially within the school district's 
 boundaries.  The levy authorized under this subdivision is not 
 included in determining the school district's levy limitations. 

    Subd. 7.    Ice arena levy.  (a) Each year, an 
 independent school district operating and maintaining an ice 
 arena, may levy for the net operational costs of the ice arena.  
 The levy may not exceed the net actual costs of operation of the 
 arena for the previous year.  Net actual costs are defined as 
 operating costs less any operating revenues. 

    (b) Any school district operating and maintaining an ice 
 arena must demonstrate to the satisfaction of the office of 
 monitoring in the department of children, families, and learning 
 that the district will offer equal sports opportunities for male 
 and female students to use its ice arena, particularly in areas 
 of access to prime practice time, team support, and providing 
 junior varsity and younger level teams for girls' ice sports and 
 ice sports offerings. 

    Subd. 8.  Repealed, 1Sp1995 c 3 art 8 s 26 

    Subd. 9.    Abatement levy.  (a) Each year, a school 
 district may levy an amount to replace the net revenue lost to 
 abatements that have occurred under chapter 278, section 270.07, 
 375.192, or otherwise.  The maximum abatement levy is the sum of:

    (1) the amount of the net revenue loss determined under 
 section 124.214, subdivision 2, that is not paid in state aid 
 including any aid amounts not paid due to proration; 

    (2) the difference of (i) the amount of any abatements that 
 have been reported by the county auditor for the first six 
 months of the calendar year during which the abatement levy is 
 certified that the district chooses to levy, (ii) less any 
 amount actually levied under this clause that was certified in 
 the previous calendar year for the first six months of the 
 previous calendar year; and 

    (3) an amount equal to any interest paid on abatement 
 refunds.  

    (b) A district may spread this levy over a period not to 
 exceed three years. 

    By July 15, the county auditor shall separately report the 
 abatements that have occurred during the first six calendar 
 months of that year to the commissioner of children, families, 
 and learning and each school district located within the county. 

    HIST: 1975 c 432 s 75; 1976 c 271 s 81; 1977 c 447 art 6 s 8; 
 1978 c 764 s 105; 1982 c 548 art 6 s 21; 1983 c 314 art 6 s 24; 
 1984 c 463 art 6 s 6; 1986 c 444; 1987 c 398 art 1 s 21; art 6 s 
 12; 1988 c 486 s 85; 1988 c 718 art 6 s 20,21; 1988 c 719 art 5 
 s 84; 1989 c 329 art 6 s 48; art 13 s 9-11,20; 1Sp1989 c 1 art 2 
 s 11; 1990 c 426 art 2 s 1; 1990 c 562 art 6 s 33; art 7 s 10; 
 art 10 s 9-11; 1990 c 596 s 3; 1991 c 130 s 29; 1991 c 265 art 5 
 s 12; 1991 c 291 art 4 s 1; 1992 c 499 art 6 s 29; art 7 s 
 11,26; art 12 s 29; 1992 c 511 art 2 s 21; art 5 s 9; 1992 c 603 
 s 11; 1993 c 224 art 7 s 13; art 8 s 3,4; 1994 c 647 art 8 s 9; 
 1Sp1995 c 3 art 1 s 17; art 16 s 13; 1996 c 412 art 4 s 10; art 
 13 s 18; 1997 c 66 s 79; 1Sp1997 c 4 art 1 s 26-28; art 2 s 31 

*   NOTE:  Subdivisions 2 and 3 are repealed by Laws 1997, 
*First Special Session chapter 4, article 1, section 63, 
*effective for revenue for fiscal year 1999.

     124.914 Operating debt levies. 

    Subdivision 1.    1977 statutory operating debt.  (1) In 
 each year in which so required by this subdivision, a district 
 shall make an additional levy to eliminate its statutory 
 operating debt, determined as of June 30, 1977, and certified 
 and adjusted by the commissioner.  This levy shall not be made 
 in more than 30 successive years and each year before it is 
 made, it must be approved by the commissioner and the approval 
 shall specify its amount.  This levy shall be an amount which is 
 equal to the amount raised by a levy of a net tax rate of 1.66 
 percent times the adjusted net tax capacity of the district for 
 the preceding year for taxes payable in 1991 and thereafter; 
 provided that in the last year in which the district is required 
 to make this levy, it shall levy an amount not to exceed the 
 amount raised by a levy of a net tax rate of 1.66 percent times 
 the adjusted net tax capacity of the district for the preceding 
 year for taxes payable in 1991 and thereafter.  When the sum of 
 the cumulative levies made pursuant to this subdivision and 
 transfers made according to section 121.912, subdivision 4, 
 equals an amount equal to the statutory operating debt of the 
 district, the levy shall be discontinued. 

    (2) The district shall establish a special account in the 
 general fund which shall be designated "appropriated fund 
 balance reserve account for purposes of reducing statutory 
 operating debt" on its books and records.  This account shall 
 reflect the levy authorized pursuant to this subdivision.  The 
 proceeds of this levy shall be used only for cash flow 
 requirements and shall not be used to supplement district 
 revenues or income for the purposes of increasing the district's 
 expenditures or budgets. 

    (3) Any district which is required to levy pursuant to this 
 subdivision shall certify the maximum levy allowable under 
 section 124A.23, subdivision 2, in that same year. 

    (4) Each district shall make permanent fund balance 
 transfers so that the total statutory operating debt of the 
 district is reflected in the general fund as of June 30, 1977. 

    Subd. 2.    1983 operating debt.  (1) Each year, a 
 district may make an additional levy to eliminate a deficit in 
 the net unappropriated operating funds of the district, 
 determined as of June 30, 1983, and certified and adjusted by 
 the commissioner.  This levy may in each year be an amount not 
 to exceed the amount raised by a levy of a net tax rate of 1.85 
 percent times the adjusted net tax capacity for taxes payable in 
 1991 and thereafter of the district for the preceding year as 
 determined by the commissioner.  However, the total amount of 
 this levy for all years it is made shall not exceed the lesser 
 of (a) the amount of the deficit in the net unappropriated 
 operating funds of the district as of June 30, 1983, or (b) the 
 amount of the aid reduction, according to Laws 1981, Third 
 Special Session chapter 2, article 2, section 2, but excluding 
 clauses (l), (m), (n), (o), and (p), and Laws 1982, Third 
 Special Session chapter 1, article 3, section 6, to the district 
 in fiscal year 1983.  When the cumulative levies made pursuant 
 to this subdivision equal the total amount permitted by this 
 subdivision, the levy shall be discontinued.  

    (2) The proceeds of this levy shall be used only for cash 
 flow requirements and shall not be used to supplement district 
 revenues or income for the purposes of increasing the district's 
 expenditures or budgets.  

    (3) Any district that levies pursuant to this subdivision 
 shall certify the maximum levy allowable under section 124A.23, 
 subdivisions 2 and 2a, in that same year. 

    Subd. 3.    1985 operating debt.  (1) Each year, a 
 district may levy to eliminate a deficit in the net 
 unappropriated balance in the general fund of the district, 
 determined as of June 30, 1985, and certified and adjusted by 
 the commissioner.  Each year this levy may be an amount not to 
 exceed the amount raised by a levy of a net tax rate of 1.85 
 percent times the adjusted net tax capacity for taxes payable in 
 1991 and thereafter of the district for the preceding year.  
 However, the total amount of this levy for all years it is made 
 shall not exceed the amount of the deficit in the net 
 unappropriated balance in the general fund of the district as of 
 June 30, 1985.  When the cumulative levies made pursuant to this 
 subdivision equal the total amount permitted by this 
 subdivision, the levy shall be discontinued.  

    (2) A district, if eligible, may levy under this 
 subdivision or subdivision 2 but not both. 

    (3) The proceeds of this levy shall be used only for cash 
 flow requirements and shall not be used to supplement district 
 revenues or income for the purposes of increasing the district's 
 expenditures or budgets.  

    (4) Any district that levies pursuant to this subdivision 
 shall certify the maximum levy allowable under section 124A.23, 
 subdivision 2, in that same year. 

    Subd. 4.    1992 operating debt.  (a) For taxes payable 
 for calendar year 2003 and earlier, a district that has filed a 
 plan pursuant to section 121.917, subdivision 4, may levy, with 
 the approval of the commissioner, to eliminate a deficit in the 
 net unappropriated balance in the operating funds of the 
 district, determined as of June 30, 1992, and certified and 
 adjusted by the commissioner.  Each year this levy may be an 
 amount not to exceed the lesser of: 

    (1) an amount raised by a levy of a net tax rate of one 
 percent times the adjusted net tax capacity; or 

    (2) $100,000. 

 This amount shall be reduced by referendum revenue authorized 
 under section 124A.03 pursuant to the plan filed under section 
 121.917.  However, the total amount of this levy for all years 
 it is made shall not exceed the amount of the deficit in the net 
 unappropriated balance in the operating funds of the district as 
 of June 30, 1992.  When the cumulative levies made pursuant to 
 this subdivision equal the total amount permitted by this 
 subdivision, the levy shall be discontinued.  

    (b) A district, if eligible, may levy under this 
 subdivision or subdivision 2 or 3, or under section 122.531, 
 subdivision 4a, or Laws 1992, chapter 499, article 7, sections 
 16 or 17, but not under more than one. 

    (c) The proceeds of this levy shall be used only for cash 
 flow requirements and shall not be used to supplement district 
 revenues or income for the purposes of increasing the district's 
 expenditures or budgets.  

    (d) Any district that levies pursuant to this subdivision 
 shall certify the maximum levy allowable under section 124A.23, 
 subdivision 2, in that same year. 

    HIST: 1976 c 271 s 88; 1977 c 447 art 7 s 26; 1981 c 358 art 1 
 s 40; 1983 c 314 art 6 s 26; 1984 c 463 art 6 s 8; art 7 s 20; 
 1986 c 444; 1Sp1986 c 1 art 9 s 20; 1987 c 268 art 7 s 42; 1988 
 c 486 s 88,101 subd 2; 1988 c 719 art 5 s 84; 1989 c 329 art 13 
 s 14-16,20; 1Sp1989 c 1 art 2 s 11; 1992 c 499 art 12 s 29; 1993 
 c 224 art 6 s 17; 1Sp1993 c 6 s 6; 1994 c 647 art 8 s 10,11 

     124.916 Benefits levies. 

    Subdivision 1.    Health insurance.  (a) A school 
 district may levy the amount necessary to make employer 
 contributions for insurance for retired employees under this 
 subdivision.  

    (b) The school board of a joint vocational technical 
 district formed under sections 136C.60 to 136C.69 and the school 
 board of a school district may provide employer-paid hospital, 
 medical, and dental benefits to a person who: 

    (1) is eligible for employer-paid insurance under 
 collective bargaining agreements or personnel plans in effect on 
 June 30, 1992; 

    (2) has at least 25 years of service credit in the public 
 pension plan of which the person is a member on the day before 
 retirement or, in the case of a teacher, has a total of at least 
 25 years of service credit in the teachers retirement 
 association, a first-class city teacher retirement fund, or any 
 combination of these; 

    (3) upon retirement is immediately eligible for a 
 retirement annuity; 

    (4) is at least 55 and not yet 65 years of age; and 

    (5) retires on or after May 15, 1992, and before July 21, 
 1992. 

    A school board paying insurance under this subdivision may 
 not exclude any eligible employees. 

    (c) An employee who is eligible both for the health 
 insurance benefit under this subdivision and for an early 
 retirement incentive under a collective bargaining agreement or 
 personnel plan established by the employer must select either 
 the early retirement incentive provided under the collective 
 bargaining agreement personnel plan or the incentive provided 
 under this subdivision, but may not receive both.  For purposes 
 of this subdivision, a person retires when the person terminates 
 active employment and applies for retirement benefits.  The 
 retired employee is eligible for single and dependent coverages 
 and employer payments to which the person was entitled 
 immediately before retirement, subject to any changes in 
 coverage and employer and employee payments through collective 
 bargaining or personnel plans, for employees in positions 
 equivalent to the position from which the employee retired.  The 
 retired employee is not eligible for employer-paid life 
 insurance.  Eligibility ceases when the retired employee attains 
 the age of 65, or when the employee chooses not to receive the 
 retirement benefits for which the employee has applied, or when 
 the employee is eligible for employer-paid health insurance from 
 a new employer.  Coverages must be coordinated with relevant 
 health insurance benefits provided through the federally 
 sponsored Medicare program.  

    (d) Unilateral implementation of this section by a public 
 employer is not an unfair labor practice for purposes of chapter 
 179A.  The authority provided in this subdivision for an 
 employer to pay health insurance costs for certain retired 
 employees is not subject to the limits in section 179A.20, 
 subdivision 2a. 

    (e) If a school district levies according to this 
 subdivision, it may not also levy according to section 122.531, 
 subdivision 9, for eligible employees. 

    Subd. 2.    Retired employee health benefits.  For taxes 
 payable in 1996, 1997, 1998, and 1999 only, a school district 
 may levy an amount up to the amount the district is required by 
 the collective bargaining agreement in effect on March 30, 1992, 
 to pay for health insurance or unreimbursed medical expenses for 
 licensed and nonlicensed employees who have terminated services 
 in the employing district and withdrawn from active teaching 
 service or other active service, as applicable, before July 1, 
 1992.  The total amount of the levy each year may not exceed 
 $300,000.  

    Subd. 3.    Retirement levies.  (1) In addition to the 
 excess levy authorized in 1976 any district within a city of the 
 first class which was authorized in 1975 to make a retirement 
 levy under Minnesota Statutes 1974, section 275.127 and chapter 
 422A may levy an amount per pupil unit which is equal to the 
 amount levied in 1975 payable 1976, under Minnesota Statutes 
 1974, section 275.127 and chapter 422A, divided by the number of 
 pupil units in the district in 1976-1977. 

    (2) In 1979 and each year thereafter, any district which 
 qualified in 1976 for an extra levy under paragraph (1) shall be 
 allowed to levy the same amount as levied for retirement in 1978 
 under this clause reduced each year by ten percent of the 
 difference between the amount levied for retirement in 1971 
 under Minnesota Statutes 1971, sections 275.127 and 422.01 to 
 422.54 and the amount levied for retirement in 1975 under 
 Minnesota Statutes 1974, section 275.127 and chapter 422A. 

    (3) In 1991 and each year thereafter, a district to which 
 this subdivision applies may levy an additional amount required 
 for contributions to the Minneapolis employees retirement fund 
 as a result of the maximum dollar amount limitation on state 
 contributions to the fund imposed under section 422A.101, 
 subdivision 3.  The additional levy shall not exceed the most 
 recent amount certified by the board of the Minneapolis 
 employees retirement fund as the district's share of the 
 contribution requirement in excess of the maximum state 
 contribution under section 422A.101, subdivision 3.  

    (4) For taxes payable in 1994 and thereafter, special 
 school district No. 1, Minneapolis, and independent school 
 district No. 625, St. Paul, may levy for the increase in the 
 employer retirement fund contributions, under Laws 1992, chapter 
 598, article 5, section 1.  

    (5) If the employer retirement fund contributions under 
 section 354A.12, subdivision 2a, are increased for fiscal year 
 1994 or later fiscal years, special school district No. 1, 
 Minneapolis, and independent school district No. 625, St. Paul, 
 may levy in payable 1994 or later an amount equal to the amount 
 derived by applying the net increase in the employer retirement 
 fund contribution rate of the respective teacher retirement fund 
 association between fiscal year 1993 and the fiscal year 
 beginning in the year after the levy is certified to the total 
 covered payroll of the applicable teacher retirement fund 
 association.  If an applicable school district levies under this 
 paragraph, they may not levy under paragraph (4). 

    (6) In addition to the levy authorized under paragraph (5), 
 special school district No. 1, Minneapolis, may also levy 
 payable in 1997 or later an amount equal to the contributions 
 under section 423A.02, subdivision 3, and may also levy in 
 payable 1994 or later an amount equal to the state aid 
 contribution under section 354A.12, subdivision 3b.  Independent 
 school district No. 625, St. Paul, may levy payable in 1997 or 
 later an amount equal to the supplemental contributions under 
 section 423A.02, subdivision 3.  

    Subd. 4.    Minneapolis health insurance subsidy.  Each 
 year special school district No. 1, Minneapolis, may make an 
 additional levy not to exceed the amount raised by a net tax 
 rate of .10 percent times the adjusted net tax capacity for 
 taxes payable in 1991 and thereafter of the property in the 
 district for the preceding year.  The proceeds may be used only 
 to subsidize health insurance costs for eligible teachers as 
 provided in this section.  

    "Eligible teacher" means a retired teacher who was a basic 
 member of the Minneapolis teachers retirement fund association, 
 who retired before May 1, 1974, or who had 20 or more years of 
 basic member service in the Minneapolis teacher retirement fund 
 association and retired before June 30, 1983, and who is not 
 eligible to receive the hospital insurance benefits of the 
 federal Medicare program of the Social Security Act without 
 payment of a monthly premium.  The district shall notify 
 eligible teachers that a subsidy is available.  To obtain a 
 subsidy, an eligible teacher must submit to the school district 
 a copy of receipts for health insurance premiums paid.  The 
 school district shall disburse the health insurance premium 
 subsidy to each eligible teacher according to a schedule 
 determined by the district, but at least annually.  An eligible 
 teacher may receive a subsidy up to an amount equal to the 
 lesser of 90 percent of the cost of the eligible teacher's 
 health insurance or up to 90 percent of the cost of the number 
 two qualified plan of health coverage for individual policies 
 made available by the Minnesota comprehensive health association 
 under chapter 62E.  

    If funds remaining from the previous year's health 
 insurance subsidy levy, minus the previous year's required 
 subsidy amount, are sufficient to pay the estimated current year 
 subsidy, the levy must be discontinued until the remaining funds 
 are estimated by the school board to be insufficient to pay the 
 subsidy. 

    This subdivision does not extend benefits to teachers who 
 retire after June 30, 1983, and does not create a contractual 
 right or claim for altering the benefits in this subdivision.  
 This subdivision does not restrict the school district's right 
 to modify or terminate coverage under this subdivision. 

    HIST: 1976 c 271 s 84; 1979 c 303 art 2 s 22; 1981 c 224 s 38; 
 1983 c 314 art 1 s 21; 1986 c 444; 1987 c 384 art 2 s 68; 1987 c 
 398 art 6 s 14; 1988 c 719 art 5 s 84; 1989 c 15 s 1; 1989 c 329 
 art 13 s 10,20; 1Sp1989 c 1 art 2 s 11; 1990 c 562 art 10 s 
 7,12; 1991 c 345 art 4 s 1; 1992 c 499 art 7 s 12,13; art 12 s 
 29; 1992 c 603 s 7; 1993 c 224 art 8 s 5,6; 1995 c 186 s 37; 
 1Sp1995 c 3 art 8 s 5; 1996 c 412 art 8 s 8; 1996 c 438 art 4 s 
 3; 1Sp1997 c 4 art 1 s 29-31 

     124.918 Levy procedure. 

    Subdivision 1.    Certify levy limits.  (a) By September 
 8, the commissioner shall notify the school districts of their 
 levy limits.  The commissioner shall certify to the county 
 auditors the levy limits for all school districts headquartered 
 in the respective counties together with adjustments for errors 
 in levies not penalized pursuant to section 124.918, subdivision 
 3, as well as adjustments to final pupil unit counts. A school 
 district may require the commissioner to review the 
 certification and to present evidence in support of modification 
 of the certification. 

    The county auditor shall reduce levies for any excess of 
 levies over levy limitations pursuant to section 275.16.  Such 
 reduction in excess levies may, at the discretion of the school 
 district, be spread over two calendar years. 

    (b) As part of the commissioner's certification under 
 paragraph (a), the commissioner shall certify the amount by 
 which a district's levy for its general fund was reduced under 
 subdivision 8. 

    Subd. 2.    Notice to commissioner; forms.  By October 7 
 of each year each district shall notify the commissioner of 
 children, families, and learning of the proposed levies in 
 compliance with the levy limitations of this chapter and 
 chapters 124A, 124B, and 136D.  By January 15 of each year each 
 district shall notify the commissioner of children, families, 
 and learning of the final levies certified.  The commissioner of 
 children, families, and learning shall prescribe the form of 
 these notifications and may request any additional information 
 necessary to compute certified levy amounts. 

    Subd. 3.    Adjustments.  If any school district levy is 
 found to be excessive as a result of a decision of the tax court 
 or a redetermination by the commissioner of revenue under 
 section 124.2131, subdivisions 2 to 11, or for any other reason, 
 the amount of the excess shall be deducted from the levy 
 certified in the next year for the same purpose; provided that 
 if no levy is certified in the next year for the same purpose or 
 if the amount certified is less than the amount of the excess, 
 the excess shall be deducted from that levy and the levy 
 certified pursuant to section 124A.23, subdivision 2.  If the 
 amount of any aid would have been increased in a prior year as a 
 result of a decision of the tax court or a redetermination by 
 the commissioner, the amount of the increase shall be added to 
 the amount of current aid for the same purposes. 

    Subd. 4.    Applicability.  Notwithstanding any other 
 charter provision, general or special laws to the contrary, 
 every school district in the state shall abide by the terms and 
 provisions of this section and chapter 124A. 

    Subd. 5.    Estimates.  The computation of levy 
 limitations pursuant to this chapter and chapters 124A, 124B, 
 136C, and 136D shall be based on estimates where necessary.  If 
 as a result of using estimates for these computations the amount 
 of any levy is different from the amount which could actually 
 have been levied if actual data had been available, levy 
 limitations in the first year when the actual data is known 
 shall be adjusted to reflect for this difference.  The amount of 
 any adjustment to levy limitations pursuant to this subdivision 
 shall be recognized as revenue in the school year when the levy 
 for which the levy limitation is so adjusted is recognized as 
 revenue. 

    Subd. 6.    Adjustments for law changes.  Whenever a 
 change enacted in law changes the levy authority for a school 
 district or an intermediate school district for a fiscal year 
 after the levy for that fiscal year has been certified by the 
 district under section 275.07, the department of children, 
 families, and learning shall adjust the next levy certified by 
 the district by the amount of the change in levy authority for 
 that fiscal year resulting from the change.  Notwithstanding 
 section 121.904, the entire amount of the levy adjustment must 
 be recognized as revenue in the fiscal year the levy is 
 certified, if sufficient levy resources are available under 
 generally accepted accounting principles in the district fund 
 where the adjustment is to occur.  School districts that do not 
 have sufficient levy resources available in the fund where the 
 adjustment is to occur shall recognize in the fiscal year the 
 levy is certified an amount equal to the levy resources 
 available.  The remaining adjustment amount shall be recognized 
 as revenue in the fiscal year after the levy is certified. 

    Subd. 7.    Reporting.  For each tax settlement, the 
 county auditor shall report to each school district by fund, the 
 school district tax settlement revenue defined in section 
 121.904, subdivision 4a, clause (a), and the amount levied 
 pursuant to section 124.914, subdivision 1, on the form 
 specified in section 276.10.  The county auditor shall send to 
 the school district a copy of the spread levy report specified 
 in section 275.124. 

    Subd. 8.    Taconite payment and other reductions.  (1) 
 Reductions in levies pursuant to section 124.918, subdivision 1, 
 and section 273.138, shall be made prior to the reductions in 
 clause (2). 

    (2) Notwithstanding any other law to the contrary, 
 districts which received payments pursuant to sections 298.018; 
 298.23 to 298.28, except an amount distributed under section 
 298.28, subdivision 4, paragraph (c), clause (ii); 298.34 to 
 298.39; 298.391 to 298.396; 298.405; and any law imposing a tax 
 upon severed mineral values, or recognized revenue pursuant to 
 section 477A.15; shall not include a portion of these aids in 
 their permissible levies pursuant to those sections, but instead 
 shall reduce the permissible levies authorized by this chapter 
 and chapter 124A by the greater of the following: 

    (a) an amount equal to 50 percent of the total dollar 
 amount of the payments received pursuant to those sections or 
 revenue recognized pursuant to section 477A.15 in the previous 
 fiscal year; or 

    (b) an amount equal to the total dollar amount of the 
 payments received pursuant to those sections or revenue 
 recognized pursuant to section 477A.15 in the previous fiscal 
 year less the product of the same dollar amount of payments or 
 revenue times the ratio of the maximum levy allowed the district 
 under Minnesota Statutes 1986, sections 124A.03, subdivision 2, 
 124A.06, subdivision 3a, 124A.08, subdivision 3a, 124A.10, 
 subdivision 3a, 124A.12, subdivision 3a, and 124A.14, 
 subdivision 5a, to the total levy allowed the district under 
 this section and Minnesota Statutes 1986, sections 124A.03, 
 124A.06, subdivision 3a, 124A.08, subdivision 3a, 124A.10, 
 subdivision 3a, 124A.12, subdivision 3a, 124A.14, subdivision 
 5a, and 124A.20, subdivision 2, for levies certified in 1986. 

    (3) No reduction pursuant to this subdivision shall reduce 
 the levy made by the district pursuant to section 124A.23, to an 
 amount less than the amount raised by a levy of a net tax rate 
 of 6.82 percent times the adjusted net tax capacity for taxes 
 payable in 1990 and thereafter of that district for the 
 preceding year as determined by the commissioner.  The amount of 
 any increased levy authorized by referendum pursuant to section 
 124A.03, subdivision 2, shall not be reduced pursuant to this 
 subdivision.  The amount of any levy authorized by section 
 124.912, subdivision 1, to make payments for bonds issued and 
 for interest thereon, shall not be reduced pursuant to this 
 subdivision.  

    (4) Before computing the reduction pursuant to this 
 subdivision of the health and safety levy authorized by sections 
 124.83 and 124.91, subdivision 6, the commissioner shall 
 ascertain from each affected school district the amount it 
 proposes to levy under each section or subdivision.  The 
 reduction shall be computed on the basis of the amount so 
 ascertained. 

    (5) Notwithstanding any law to the contrary, any amounts 
 received by districts in any fiscal year pursuant to sections 
 298.018; 298.23 to 298.28; 298.34 to 298.39; 298.391 to 298.396; 
 298.405; or any law imposing a tax on severed mineral values; 
 and not deducted from general education aid pursuant to section 
 124A.035, subdivision 5, clause (2), and not applied to reduce 
 levies pursuant to this subdivision shall be paid by the 
 district to the St. Louis county auditor in the following amount 
 by March 15 of each year, the amount required to be subtracted 
 from the previous fiscal year's general education aid pursuant 
 to section 124A.035, subdivision 5, which is in excess of the 
 general education aid earned for that fiscal year.  The county 
 auditor shall deposit any amounts received pursuant to this 
 clause in the St. Louis county treasury for purposes of paying 
 the taconite homestead credit as provided in section 273.135. 

    HIST: Ex1971 c 31 art 20 s 8; 1973 c 683 s 19; 1975 c 432 s 
 75,78,80,81; 1976 c 2 s 97; 1976 c 271 s 87,90; 1977 c 447 art 1 
 s 20; 1978 c 764 s 106,109,111; 1979 c 334 art 1 s 22,24; art 2 
 s 13; 1980 c 509 s 112; 1980 c 607 art 7 s 9; 1980 c 609 art 1 s 
 13; art 4 s 16; 1981 c 358 art 1 s 39,42; 1986 c 441 s 1; 1986 c 
 444; 1Sp1986 c 1 art 4 s 27; 1Sp1986 c 3 art 2 s 36; 1987 c 268 
 art 7 s 41,43; art 9 s 8; 1987 c 398 art 7 s 39; 1Sp1987 c 4 art 
 1 s 5; 1988 c 486 s 87,89; 1988 c 719 art 5 s 84; 1989 c 222 s 
 35; 1989 c 329 art 13 s 13,20; 1Sp1989 c 1 art 2 s 11; art 6 s 
 10,11; 1990 c 604 art 3 s 29; 1991 c 130 s 31,32; 1992 c 499 art 
 12 s 25,29; 1992 c 511 art 3 s 8; 1995 c 212 art 4 s 64; 1995 c 
 264 art 3 s 1,2; 1Sp1995 c 3 art 1 s 18,19; art 16 s 13; 1996 c 
 412 art 1 s 12; 1997 c 7 art 1 s 64; 1997 c 251 s 18; 1Sp1997 c 
 4 art 1 s 32 

     124.95 Debt service equalization program. 

    Subdivision 1.    Definitions.  (a) For purposes of this 
 section, the eligible debt service revenue of a district is 
 defined as follows: 

    (1) the amount needed to produce between five and six 
 percent in excess of the amount needed to meet when due the 
 principal and interest payments on the obligations of the 
 district for eligible projects according to subdivision 2, 
 including the amounts necessary for repayment of energy loans 
 according to section 216C.37 or sections 298.292 to 298.298, 
 debt service loans and capital loans, lease purchase payments 
 under section 124.91, subdivisions 2 and 3, alternative 
 facilities levies under section 124.239, subdivision 5, minus 

    (2) the amount of debt service excess levy reduction for 
 that school year calculated according to the procedure 
 established by the commissioner. 

    (b) The obligations in this paragraph are excluded from 
 eligible debt service revenue: 

    (1) obligations under section 124.2445; 

    (2) the part of debt service principal and interest paid 
 from the taconite environmental protection fund or northeast 
 Minnesota economic protection trust; 

    (3) obligations issued under Laws 1991, chapter 265, 
 article 5, section 18, as amended by Laws 1992, chapter 499, 
 article 5, section 24; and 

    (4) obligations under section 124.2455. 

    (c) For purposes of this section, if a preexisting school 
 district reorganized under section 122.22, 122.23, or 122.241 to 
 122.248 is solely responsible for retirement of the preexisting 
 district's bonded indebtedness, capital loans or debt service 
 loans, debt service equalization aid must be computed separately 
 for each of the preexisting school districts. 

    Subd. 2.    Eligibility.  (a) The following portions of 
 a district's debt service levy qualify for debt service 
 equalization: 

    (1) debt service for repayment of principal and interest on 
 bonds issued before July 2, 1992; 

    (2) debt service for bonds refinanced after July 1, 1992, 
 if the bond schedule has been approved by the commissioner and, 
 if necessary, adjusted to reflect a 20-year maturity schedule; 
 and 

    (3) debt service for bonds issued after July 1, 1992, for 
 construction projects that have received a positive review and 
 comment according to section 121.15, if the commissioner has 
 determined that the district has met the criteria under section 
 124.431, subdivision 2, and if the bond schedule has been 
 approved by the commissioner and, if necessary, adjusted to 
 reflect a 20-year maturity schedule.  

    (b) The criterion in section 124.431, subdivision 2, 
 paragraph (a), clause (2), shall be considered to have been met 
 if the district in the fiscal year in which the bonds are 
 authorized at an election conducted under chapter 475: 

    (i) if grades 9 through 12 are to be served by the 
 facility, and an average of at least 66 pupils per grade in 
 these grades are served; or 

    (ii) is eligible for elementary or secondary sparsity 
 revenue. 

    (c) The criterion in section 124.431, subdivision 2, 
 paragraph (a), clause (2), shall also be considered to have been 
 met if the construction project under review serves students in 
 kindergarten to grade 8.  Only the debt service levy for that 
 portion of the facility serving students in prekindergarten to 
 grade 8, as determined by the commissioner, shall be eligible 
 for debt service equalization under this paragraph. 

    (d) The criterion described in section 124.431, subdivision 
 2, paragraph (a), clause (9), does not apply to bonds authorized 
 by elections held before July 1, 1992. 

    (e) For the purpose of this subdivision the department 
 shall determine the eligibility for sparsity at the location of 
 the new facility, or the site of the new facility closest to the 
 nearest operating school if there is more than one new facility. 

    (f) Notwithstanding paragraphs (a) to (e), debt service for 
 repayment of principal and interest on bonds issued after July 
 1, 1997, does not qualify for debt service equalization aid 
 unless the primary purpose of the facility is to serve students 
 in kindergarten through grade 12. 

    Subd. 2a.    Notification.  A district eligible for debt 
 service equalization revenue under subdivision 2 must notify the 
 commissioner of the amount of its intended debt service revenue 
 calculated under subdivision 1 for all bonds sold prior to the 
 notification by July 1 of the calendar year the levy is 
 certified. 

    Subd. 3.    Debt service equalization revenue.  (a) For 
 fiscal years 1995 and later, the debt service equalization 
 revenue of a district equals the eligible debt service revenue 
 minus the amount raised by a levy of ten percent times the 
 adjusted net tax capacity of the district. 

    (b) For fiscal year 1993, debt service equalization revenue 
 equals one-third of the amount calculated in paragraph (a). 

    (c) For fiscal year 1994, debt service equalization revenue 
 equals two-thirds of the amount calculated in paragraph (a). 

    Subd. 4.    Equalized debt service levy.  To obtain debt 
 service equalization revenue, a district must levy an amount not 
 to exceed the district's debt service equalization revenue times 
 the lesser of one or the ratio of: 

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

    (2) $4,707.50. 

    Subd. 5.    Debt service equalization aid.  A district's 
 debt service equalization aid is the difference between the debt 
 service equalization revenue and the equalized debt service levy.
 If the amount of debt service equalization aid actually 
 appropriated for the fiscal year in which this calculation is 
 made is insufficient to fully fund debt service equalization 
 aid, the commissioner shall prorate the amount of aid across all 
 eligible districts. 

    Subd. 6.    Debt service equalization aid payment 
 schedule.  Debt service equalization aid must be paid as 
 follows:  30 percent before September 15, 30 percent before 
 December 15, 25 percent before March 15, and a final payment of 
 15 percent by July 15 of the subsequent fiscal year. 

    HIST: 1991 c 265 art 5 s 8; 1992 c 499 art 5 s 14-19; 1993 c 
 224 art 5 s 31-34; 1994 c 647 art 5 s 14,15; 1Sp1995 c 3 art 5 s 
 10-12; 1996 c 412 art 5 s 7; 1Sp1997 c 4 art 4 s 20 

*   NOTE:  The amendment to subdivision 2 by Laws 1997, First 
*Special Session chapter 4, article 4, section 20, is effective 
*for bonds outstanding on July 1, 1997, that meet the criteria, 
*and is effective for revenue for fiscal year 1999.  Laws 1997, 
*First Special Session chapter 4, article 4, section 37.

     124.961 Debt service appropriation. 

    (a) $35,480,000 in fiscal year 1998, $38,159,000 in fiscal 
 year 1999, and $38,390,000 in fiscal year 2000 and each year 
 thereafter is appropriated from the general fund to the 
 commissioner of children, families, and learning for payment of 
 debt service equalization aid under section 124.95.  The 2000 
 appropriation includes $3,842,000 for 1999 and $34,548,000 for 
 2000. 

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

    HIST: 1992 c 499 art 5 s 20; 1993 c 224 art 5 s 35; 1994 c 647 
 art 1 s 12; 1Sp1995 c 3 art 5 s 13; art 16 s 13; 1996 c 412 art 
 5 s 8; 1Sp1997 c 4 art 4 s 21 

  124.962 Repealed, 1Sp1995 c 3 art 1 s 63 

     124.97 Debt service levy. 

    A school district may levy the amounts necessary to make 
 payments for bonds issued and for interest on them, including 
 the bonds and interest on them, issued as authorized by 
 Minnesota Statutes 1974, section 275.125, subdivision 3, clause 
 (7)(C); and the amounts necessary for repayment of debt service 
 loans and capital loans, minus the amount of debt service 
 equalization revenue of the district. 

    HIST: 1991 c 265 art 5 s 10