1.1                          A bill for an act 
  1.2             relating to education; prekindergarten through grade 
  1.3             12; providing for general education revenue; 
  1.4             transportation; special programs; community education; 
  1.5             facilities; organization and cooperation; education 
  1.6             excellence; other programs; miscellaneous provisions; 
  1.7             libraries; state agencies; technology; conforming 
  1.8             amendments; appropriating money; amending Minnesota 
  1.9             Statutes 1994, sections 43A.316, subdivision 2; 
  1.10            62L.08, subdivision 7a; 116J.655; 120.062, subdivision 
  1.11            7; 120.064, subdivision 4; 120.101, subdivision 5c; 
  1.12            120.17, subdivisions 3a, 3b, and by adding a 
  1.13            subdivision; 120.185; 120.74, subdivision 1; 120.75, 
  1.14            subdivision 1; 121.11, subdivision 7c; 121.702, by 
  1.15            adding a subdivision; 121.705; 121.706; 121.707, 
  1.16            subdivisions 4, 6, and 7; 121.708; 121.709; 121.710; 
  1.17            121.885, subdivisions 1 and 4; 121.904, subdivisions 
  1.18            4a and 4c; 121.912, subdivisions 1, 1b, and 6; 
  1.19            121.935, subdivision 1; 122.21, subdivision 4; 122.23, 
  1.20            subdivision 2; 122.242, subdivision 9; 122.895, 
  1.21            subdivisions 1, 8, and 9; 122.91, subdivisions 1, 2, 
  1.22            and 2a; 122.92, subdivision 1; 122.93, subdivision 1; 
  1.23            122.94, subdivision 1; 123.35, subdivision 19b; 
  1.24            123.351, subdivisions 1, 3, 4, and 5; 123.3514, 
  1.25            subdivisions 4d, 7, 8, and by adding a subdivision; 
  1.26            123.70, subdivision 8; 123.7991, subdivisions 2 and 3; 
  1.27            123.805, subdivisions 1 and 2; 124.14, by adding a 
  1.28            subdivision; 124.17, subdivisions 1, 2f, and by adding 
  1.29            a subdivision; 124.193; 124.195, subdivision 10, and 
  1.30            by adding a subdivision; 124.2139; 124.214, 
  1.31            subdivisions 2 and 3; 124.223, subdivision 7; 124.225, 
  1.32            subdivisions 1, 3a, 7b, 7d, 7f, 8a, and 8m; 124.226, 
  1.33            subdivisions 1 and 3; 124.243, subdivisions 2 and 8; 
  1.34            124.244, subdivisions 1, 4, and by adding a 
  1.35            subdivision; 124.2455; 124.2711, subdivision 2a; 
  1.36            124.2713, subdivision 6; 124.2725, subdivisions 1, 3, 
  1.37            4, and 15; 124.2726, subdivision 1; 124.273, by adding 
  1.38            subdivisions; 124.32, subdivisions 10 and 12; 124.321, 
  1.39            subdivisions 1 and 2; 124.322; 124.323, subdivisions 
  1.40            1, 2, and by adding a subdivision; 124.573, 
  1.41            subdivision 2e; 124.574, subdivision 9, and by adding 
  1.42            subdivisions; 124.83, subdivision 4; 124.84, 
  1.43            subdivision 3; 124.91, subdivision 5; 124.916, 
  1.44            subdivision 2; 124.95, subdivisions 2, 4, and 6; 
  1.45            124.961; 124A.03, subdivisions 1g and 1h; 124A.0311, 
  1.46            subdivision 4; 124A.22, subdivisions 2, 2a, 4, 4a, 4b, 
  2.1             8a, and 9; 124A.225, subdivisions 4 and 5; 124A.23, 
  2.2             subdivisions 1 and 4; 124A.24; 124A.29, subdivision 1; 
  2.3             124C.07; 124C.08, subdivision 2; 124C.45, subdivision 
  2.4             1; 124C.46, subdivision 2; 124C.48, subdivision 1; 
  2.5             125.62, subdivisions 1 and 7; 125.623, subdivision 2; 
  2.6             126.031, subdivision 1; 126.15, subdivision 2; 126.49, 
  2.7             by adding a subdivision; 126.70, subdivision 2a; 
  2.8             126A.01; 126A.02, subdivision 2; 126B.01; 126B.03, 
  2.9             subdivisions 2 and 3; 127.30, subdivision 2; 128A.02, 
  2.10            subdivisions 1, 3, 5, and by adding a subdivision; 
  2.11            128A.021; 128A.022, subdivisions 1 and 6; 128A.024, 
  2.12            subdivision 4; 128A.025, subdivisions 1 and 2; 
  2.13            128A.026; 128A.05, subdivisions 1 and 2; 128B.10, 
  2.14            subdivision 1; 134.155; 134.34, subdivision 4a; 
  2.15            134.351, subdivision 4; 169.01, subdivision 6; 169.21, 
  2.16            subdivision 2; 169.444, subdivision 2; 169.4502, 
  2.17            subdivision 4; 169.4503, by adding a subdivision; 
  2.18            169.451, by adding a subdivision; 169.452; 169.454, 
  2.19            subdivision 5, and by adding a subdivision; 171.01, 
  2.20            subdivision 21; 171.18, subdivision 1; 171.321, 
  2.21            subdivisions 3, 4, and 5; 171.3215, subdivisions 1, 2, 
  2.22            and 3; 237.065; 631.40, subdivision 1a; Laws 1992, 
  2.23            chapter 499, article 11, section 9, as amended; Laws 
  2.24            1993, chapter 224, article 8, section 21, subdivision 
  2.25            1; Laws 1993, chapter 224, article 12, section 32, as 
  2.26            amended; Laws 1993, chapter 224, article 12, sections 
  2.27            39, and 41; Laws 1994, chapter 587, article 3, section 
  2.28            19, subdivision 1; Laws 1994, chapter 647, article 1, 
  2.29            section 36; Laws 1994, chapter 647, article 3, section 
  2.30            25; Laws 1994, chapter 647, article 7, section 15; 
  2.31            proposing coding for new law in Minnesota Statutes, 
  2.32            chapters 123; 124; 124C; 125; 126; 126B; 127; 134; 
  2.33            136D; 169; 604A; repealing Minnesota Statutes 1994, 
  2.34            sections 121.602, subdivision 5; 121.702, subdivision 
  2.35            9; 121.703; 123.58; 124.17, subdivision 1b; 124.243, 
  2.36            subdivisions 2a and 9; 124.2714; 124.273, subdivisions 
  2.37            1b and 2c; 124.32, subdivisions 1b, 1c, 1d, 1f, 2, and 
  2.38            3a; 124.574, subdivisions 2b, 3, 4, and 4a; 124.91, 
  2.39            subdivision 5; 124.912, subdivision 8; 124.914, 
  2.40            subdivisions 2, 3, and 4; 124.962; 124A.04, 
  2.41            subdivision 1; 124A.27, subdivision 11; 124A.29, 
  2.42            subdivision 2; 124A.291; 124A.292; 125.138, 
  2.43            subdivisions 6, 7, 8, 9, 10, and 11; 126.019; 126B.02; 
  2.44            126B.03; 126B.04; 126B.05; 128A.02, subdivisions 2 and 
  2.45            4; 128A.03; 268.9755; Laws 1991, chapter 265, article 
  2.46            5, section 23, as amended; Laws 1992, chapter 499, 
  2.47            article 7, sections 16, 17, and 27. 
  2.48  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.49                             ARTICLE 1 
  2.50                     GENERAL EDUCATION REVENUE 
  2.51     Section 1.  Minnesota Statutes 1994, section 121.904, 
  2.52  subdivision 4a, is amended to read: 
  2.53     Subd. 4a.  [LEVY RECOGNITION.] (a) "School district tax 
  2.54  settlement revenue" means the current, delinquent, and 
  2.55  manufactured home property tax receipts collected by the county 
  2.56  and distributed to the school district, including distributions 
  2.57  made pursuant to section 279.37, subdivision 7, and excluding 
  2.58  the amount levied pursuant to section 124.914, subdivision 1. 
  2.59     (b) In June of each year, the school district shall 
  3.1   recognize as revenue, in the fund for which the levy was made, 
  3.2   the lesser of:  
  3.3      (1) the May, June, and July school district tax settlement 
  3.4   revenue received in that calendar year; or 
  3.5      (2) the sum of the state aids and credits enumerated in 
  3.6   section 124.155, subdivision 2, which are for the fiscal year 
  3.7   payable in that fiscal year plus an amount equal to the levy 
  3.8   recognized as revenue in June of the prior year plus 37.4 48 
  3.9   percent for fiscal year 1994 1996 and thereafter of the amount 
  3.10  of the levy certified in the prior calendar year according to 
  3.11  section 124A.03, subdivision 2, plus or minus auditor's 
  3.12  adjustments, not including levy portions that are assumed by the 
  3.13  state; or 
  3.14     (3) 37.4 48 percent for fiscal year 1994 1996 and 
  3.15  thereafter of the amount of the levy certified in the prior 
  3.16  calendar year, plus or minus auditor's adjustments, not 
  3.17  including levy portions that are assumed by the state, which 
  3.18  remains after subtracting, by fund, the amounts levied for the 
  3.19  following purposes:  
  3.20     (i) reducing or eliminating projected deficits in the 
  3.21  reserved fund balance accounts for unemployment insurance and 
  3.22  bus purchases; 
  3.23     (ii) statutory operating debt pursuant to section 124.914, 
  3.24  subdivision 1; 
  3.25     (iii) retirement and severance pay pursuant to sections 
  3.26  122.531, subdivision 9, 124.2725, subdivision 15, 124.4945, 
  3.27  124.912, subdivision 1, and 124.916, subdivision 3, and Laws 
  3.28  1975, chapter 261, section 4; 
  3.29     (iv) amounts levied for bonds issued and interest thereon, 
  3.30  amounts levied for debt service loans and capital loans, amounts 
  3.31  levied for down payments under section 124.82, subdivision 3, 
  3.32  and amounts levied pursuant to section 136C.411; and 
  3.33     (v) amounts levied under section 124.755.  
  3.34     (c) In July of each year, the school district shall 
  3.35  recognize as revenue that portion of the school district tax 
  3.36  settlement revenue received in that calendar year and not 
  4.1   recognized as revenue for the previous fiscal year pursuant to 
  4.2   clause (b).  
  4.3      (d) All other school district tax settlement revenue shall 
  4.4   be recognized as revenue in the fiscal year of the settlement. 
  4.5   Portions of the school district levy assumed by the state, 
  4.6   including prior year adjustments and the amount to fund the 
  4.7   school portion of the reimbursement made pursuant to section 
  4.8   273.425, shall be recognized as revenue in the fiscal year 
  4.9   beginning in the calendar year for which the levy is payable. 
  4.10     Sec. 2.  Minnesota Statutes 1994, section 121.904, 
  4.11  subdivision 4c, is amended to read: 
  4.12     Subd. 4c.  [PROPERTY TAX SHIFT REDUCTION CHANGE IN LEVY 
  4.13  RECOGNITION PERCENT.] (a) Money appropriated under section 
  4.14  16A.152, subdivision 2, must be used to reduce the levy 
  4.15  recognition percent specified in subdivision 4a, clauses (b)(2) 
  4.16  and (b)(3), for taxes payable in the succeeding calendar year.  
  4.17     (b) The levy recognition percent shall equal the result of 
  4.18  the following computation:  the current levy recognition 
  4.19  percent, times the ratio of 
  4.20     (1) the statewide total amount of levy recognized in June 
  4.21  of the year in which the taxes are payable pursuant to 
  4.22  subdivision 4a, clause (b), excluding those levies that are 
  4.23  shifted for revenue recognition but are not included in the 
  4.24  computation of the adjustment to aids under section 124.155, 
  4.25  subdivision 1, reduced by the difference between the amount of 
  4.26  money appropriated under section 16A.152, subdivision 2, and the 
  4.27  amount required for the adjustment payment under clause (d), to 
  4.28     (2) the statewide total amount of the levy recognized in 
  4.29  June of the year in which the taxes are payable pursuant to 
  4.30  subdivision 4a, clause (b), excluding those levies that are 
  4.31  shifted for revenue recognition but are not included in the 
  4.32  computation of the adjustment to aids under section 124.155, 
  4.33  subdivision 1.  
  4.34     The result shall be rounded up to the nearest one-tenth of 
  4.35  a percent.  However, in no case shall the levy recognition 
  4.36  percent be reduced below zero or increased above the current 
  5.1   levy recognition percent.  
  5.2      (c) The commissioner of finance must certify to the 
  5.3   commissioner of education the levy recognition percent computed 
  5.4   under this subdivision by January 5 of each year.  The 
  5.5   commissioner of education must notify school districts of a 
  5.6   change in the levy recognition percent by January 15. 
  5.7      (d) For fiscal years 1994 and 1995, When the levy 
  5.8   recognition percent is increased or decreased as provided in 
  5.9   this subdivision, a special aid adjustment shall be made to each 
  5.10  school district with an operating referendum levy:  
  5.11     (i) When the levy recognition percent is increased from the 
  5.12  prior fiscal year, the commissioner of education shall calculate 
  5.13  the difference between (1) the amount of the levy under section 
  5.14  124A.03, that is recognized as revenue for the current fiscal 
  5.15  year according to subdivision 4a; and (2) the amount of the 
  5.16  levy, under section 124A.03, that would have been recognized as 
  5.17  revenue for the current fiscal year had the percentage according 
  5.18  to subdivision 4a, not been increased.  The commissioner shall 
  5.19  reduce other aids due the district by the amount of the 
  5.20  difference.  This aid reduction shall be in addition to the aid 
  5.21  reduction required because of the increase pursuant to this 
  5.22  subdivision of the levy recognition percent.  
  5.23     (ii) When the levy recognition percent is reduced as 
  5.24  provided in this subdivision from the prior fiscal year, a 
  5.25  special adjustment payment shall be made to each school district 
  5.26  with an operating referendum levy that received an aid reduction 
  5.27  under Laws 1991, chapter 265, article 1, section 31, or Laws 
  5.28  1992, chapter 499, article 1, section 22 when the levy 
  5.29  recognition percent was last increased.  The special adjustment 
  5.30  payment shall be in addition to the additional payments required 
  5.31  because of the reduction pursuant to this subdivision of the 
  5.32  levy recognition percent.  The amount of the special adjustment 
  5.33  payment shall be computed by the commissioner of education such 
  5.34  that any remaining portion of the aid reduction these districts 
  5.35  received that has not been repaid is repaid on a proportionate 
  5.36  basis as the levy recognition percent is reduced from 50 percent 
  6.1   to 31 percent.  The special adjustment payment must be included 
  6.2   in the state aid payments to school districts according to the 
  6.3   schedule specified in section 124.195, subdivision 3.  An 
  6.4   additional adjustment shall be made on June 30, 1995, for the 
  6.5   final payment otherwise due July 1, 1995, under Minnesota 
  6.6   Statutes 1992, section 136C.36. 
  6.7      (e) The commissioner of finance shall transfer from the 
  6.8   general fund to the education aids appropriations specified by 
  6.9   the commissioner of education, the amounts needed to finance the 
  6.10  additional payments required because of the reduction pursuant 
  6.11  to this subdivision of the levy recognition percent.  Payments 
  6.12  to a school district of additional state aids resulting from a 
  6.13  reduction in the levy recognition percent must be included in 
  6.14  the cash metering of payments made according to section 124.195 
  6.15  after January 15, and must be paid in a manner consistent with 
  6.16  the percent specified in that section. 
  6.17     Sec. 3.  Minnesota Statutes 1994, section 124.17, 
  6.18  subdivision 1, is amended to read: 
  6.19     Subdivision 1.  [PUPIL UNIT.] Pupil units for each resident 
  6.20  pupil in average daily membership shall be counted according to 
  6.21  this subdivision.  
  6.22     (a) A prekindergarten pupil with a disability who is 
  6.23  enrolled for the entire fiscal year in a program approved by the 
  6.24  commissioner and has an individual education plan that requires 
  6.25  up to 437 hours of assessment and education services in the 
  6.26  fiscal year is counted as one-half of a pupil unit.  If the plan 
  6.27  requires more than 437 hours of assessment and education 
  6.28  services, the pupil is counted as the ratio of the number of 
  6.29  hours of assessment and education service to 875 825 with a 
  6.30  minimum of 0.28, but not more than one. 
  6.31     (b) A prekindergarten pupil with a disability who is 
  6.32  enrolled for less than the entire fiscal year in a program 
  6.33  approved by the commissioner is counted as the greater of: 
  6.34     (1) one-half times the ratio of the number of instructional 
  6.35  days from the date the pupil is enrolled to the date the pupil 
  6.36  withdraws to the number of instructional days in the school 
  7.1   year; or 
  7.2      (2) the ratio of the number of hours of assessment and 
  7.3   education service required in the fiscal year by the pupil's 
  7.4   individual education program plan to 875, but not more than one. 
  7.5      (c) A prekindergarten pupil who is assessed but determined 
  7.6   not to be handicapped is counted as the ratio of the number of 
  7.7   hours of assessment service to 875 825.  
  7.8      (d) (c) A kindergarten pupil with a disability who is 
  7.9   enrolled in a program approved by the commissioner is counted as 
  7.10  the ratio of the number of hours of assessment and education 
  7.11  services required in the fiscal year by the pupil's individual 
  7.12  education program plan to 875, but not more than one. 
  7.13     (e) (d)(i) A kindergarten pupil who is not included in 
  7.14  paragraph (d) (c) is counted as .515 of a pupil unit for fiscal 
  7.15  year 1994 and .53 of a pupil unit for fiscal year 1995 and 
  7.16  thereafter. 
  7.17     (ii) A kindergarten pupil or a prekindergarten pupil who is 
  7.18  not included in paragraph (b) or (c) counts as .53 pupil units 
  7.19  for fiscal years 1996 and later for time spent in a program 
  7.20  under section 124.2613. 
  7.21     (f) (e) A pupil who is in any of grades 1 to 6 is counted 
  7.22  as 1.03 pupil units for fiscal year 1994 and 1.06 pupil units 
  7.23  for fiscal year 1995 and thereafter. 
  7.24     (g) (f) A pupil who is in any of grades 7 to 12 is counted 
  7.25  as 1.3 pupil units.  
  7.26     (h) (g) A pupil who is in the post-secondary enrollment 
  7.27  options program is counted as 1.3 pupil units. 
  7.28     Sec. 4.  Minnesota Statutes 1994, section 124.17, is 
  7.29  amended by adding a subdivision to read: 
  7.30     Subd. 1f.  [AFDC ENROLLMENT OPTIONS EXCEPTION.] 
  7.31  Notwithstanding subdivision 1d, AFDC pupil units for AFDC pupils 
  7.32  transferring between a school district with a desegregation plan 
  7.33  and another school district under sections 120.062, 120.075 to 
  7.34  120.0752, 124C.45 to 124C.48, and 126.22 shall be computed using 
  7.35  the AFDC concentration percentage computed for the pupil's 
  7.36  district of residence. 
  8.1      Sec. 5.  Minnesota Statutes 1994, section 124.17, 
  8.2   subdivision 2f, is amended to read: 
  8.3      Subd. 2f.  [PSEO PUPILS.] The average daily membership for 
  8.4   a student pupil participating in the post-secondary enrollment 
  8.5   options program equals the lesser of 
  8.6      (1) (a) 1.00, or 
  8.7      (2) (b) the greater of 
  8.8      (i) (1) .12, or 
  8.9      (ii) (2) the ratio of (i) the sum of the number of 
  8.10  instructional hours the student pupil is enrolled in the 
  8.11  secondary school to the product of the number of days required 
  8.12  in section 120.101, subdivision 5b, times the minimum length of 
  8.13  day required in Minnesota Rules, part 3500.1500, subpart 
  8.14  1 during quarters, trimesters, or semesters during which the 
  8.15  pupil participates in PSEO, and hours enrolled in the secondary 
  8.16  school during the remainder of the school year, to (ii) the 
  8.17  actual number of instructional days in the school year times the 
  8.18  length of day in the school. 
  8.19     Sec. 6.  Minnesota Statutes 1994, section 124.195, 
  8.20  subdivision 10, is amended to read: 
  8.21     Subd. 10.  [AID PAYMENT PERCENTAGE.] Except as provided in 
  8.22  subdivisions 8, 9, and 11, each fiscal year, all education aids 
  8.23  and credits in this chapter and chapters 121, 123, 124A, 124B, 
  8.24  125, 126, 134, and section 273.1392, shall be paid at 90 percent 
  8.25  for districts operating a program under section 121.585 for 
  8.26  grades 1 to 12 for all students in the district and 85 percent 
  8.27  for other districts of the estimated entitlement during the 
  8.28  fiscal year of the entitlement, unless a higher rate has been 
  8.29  established according to section 121.904, subdivision 4d.  
  8.30  Districts operating a program under section 121.585 for grades 1 
  8.31  to 12 for all students in the district shall receive 85 percent 
  8.32  of the estimated entitlement plus an additional amount of 
  8.33  general education aid equal to five percent of the estimated 
  8.34  entitlement.  For all districts, the final adjustment payment, 
  8.35  according to subdivision 6, shall be the amount of the actual 
  8.36  entitlement, after adjustment for actual data, minus the 
  9.1   payments made during the fiscal year of the entitlement shall be 
  9.2   paid as the final adjustment payment according to subdivision 6. 
  9.3      Sec. 7.  Minnesota Statutes 1994, section 124.195, is 
  9.4   amended by adding a subdivision to read: 
  9.5      Subd. 14.  [EDUCATION AIDS CASH FLOW ACCOUNT.] (a) An 
  9.6   education aids cash flow account is established in the state 
  9.7   treasury for the purpose of ensuring the timely payment of state 
  9.8   aids or credits to school districts as provided in this 
  9.9   section.  In the event the account balance in any appropriation 
  9.10  from the general fund to the department of education for 
  9.11  education aids or credits is insufficient to make the next 
  9.12  scheduled payment or payments, the commissioner of education is 
  9.13  authorized to transfer funds from the education aids cash flow 
  9.14  account to the accounts that are insufficient. 
  9.15     (b) For purposes of this subdivision, an account may have 
  9.16  an insufficient balance only as a result of some districts being 
  9.17  overpaid based on revised estimates for the relevant annual aid 
  9.18  or credit entitlements.  When the overpayment amounts are 
  9.19  recovered from the pertinent districts, the commissioner of 
  9.20  education shall transfer those amounts to the education aids 
  9.21  cash flow account.  The commissioner shall determine when it is 
  9.22  not feasible to recover the overpayments in a timely manner from 
  9.23  the district's future aid payments and notify the district of 
  9.24  the amount that is to be refunded to the state.  School 
  9.25  districts are encouraged to make such refunds promptly.  The 
  9.26  commissioner may approve a schedule for making a refund when a 
  9.27  district demonstrates that its cash flow is inadequate to 
  9.28  promptly make the refund in full. 
  9.29     (c) There is annually appropriated from the general fund to 
  9.30  the education aids cash flow account the additional amount 
  9.31  necessary to ensure the timely payment of state aids or credits 
  9.32  to school districts as provided in this section.  For any fiscal 
  9.33  year, the appropriation authorized in this subdivision shall not 
  9.34  exceed an amount equal to two-tenths of one percent of the total 
  9.35  general fund appropriations in that year for education aids and 
  9.36  credits.  At the close of each fiscal year, the amount of actual 
 10.1   transfers plus anticipated transfers required in paragraph (b) 
 10.2   shall equal the authorized amounts transferred in paragraph (a) 
 10.3   so that the net effect on total general fund spending for 
 10.4   education aids and credits is zero. 
 10.5      Sec. 8.  Minnesota Statutes 1994, section 124.2139, is 
 10.6   amended to read: 
 10.7      124.2139 [REDUCTION OF PAYMENTS TO SCHOOL DISTRICTS.] 
 10.8      The commissioner of revenue shall reduce the sum of the 
 10.9   additional transition credit, homestead and agricultural credit 
 10.10  aid, and disparity reduction aid payments under section 273.1398 
 10.11  made to school districts by the product of:  
 10.12     (1) the district's fiscal year 1984 payroll for coordinated 
 10.13  plan members of the public employees retirement association 
 10.14  other than technical college employees, times 
 10.15     (2) the difference between the employer contribution rate 
 10.16  in effect prior to July 1, 1984, and the total employer 
 10.17  contribution rate in effect after June 30, 1984.  
 10.18     Sec. 9.  [124.2613] [KINDERGARTEN PREPAREDNESS PROGRAM.] 
 10.19     Subdivision 1.  [PURPOSE.] The purpose of the kindergarten 
 10.20  preparedness program is to ensure that every child who enters 
 10.21  first grade has the necessary skills and readiness in order to 
 10.22  learn.  To the extent possible, a kindergarten preparedness 
 10.23  program should serve children who are not otherwise receiving 
 10.24  sufficient readiness services from Head Start programs, learning 
 10.25  readiness programs, community education programs, way-to-grow 
 10.26  programs, or half-day kindergarten programs. 
 10.27     Subd. 2.  [QUALIFYING DISTRICT.] A school district may 
 10.28  receive kindergarten preparedness revenue for qualifying school 
 10.29  sites if: 
 10.30     (1) the school board approves a resolution requiring the 
 10.31  district to provide services to all children located in a 
 10.32  qualifying school site attendance area over the age of 5-1/2 
 10.33  years as of January 1 of the previous year; and 
 10.34     (2) the district's administrative office is located in the 
 10.35  seven-county metropolitan area. 
 10.36     Subd. 3.  [QUALIFYING SCHOOL SITE.] The commissioner of 
 11.1   education shall determine the number of free and reduced lunch 
 11.2   pupils as a percent of total average daily membership for each 
 11.3   school site that serves kindergarten pupils and rank all school 
 11.4   sites from highest to lowest percent.  On March 15 of the 
 11.5   preceding year, the commissioner shall estimate the amount of 
 11.6   revenue available according to section 124.917 and qualify 
 11.7   school sites from the list of ranked sites until the estimated 
 11.8   revenue is allocated. 
 11.9      Subd. 4.  [NONPARTICIPATION.] A parent or guardian of any 
 11.10  child under the age of seven and over the age of 5-1/2 years may 
 11.11  request the child not participate in kindergarten preparedness 
 11.12  programs.  The school district shall allow the child to opt out 
 11.13  of the program if the district determines that the child is or 
 11.14  will be ready to meet the demands of first grade. 
 11.15     Subd. 5.  [PROGRAM.] A qualifying school site must develop 
 11.16  its kindergarten preparedness program in consultation with other 
 11.17  providers of school readiness and child development services.  
 11.18  To the extent possible, kindergarten preparedness programs 
 11.19  should be provided to participating children for the full school 
 11.20  day.  A qualifying school site must work with the county to 
 11.21  provide extended day services to as many children as possible. 
 11.22     Subd. 6.  [REQUIREMENTS.] The board of a qualifying school 
 11.23  district must develop a plan to serve as many children as 
 11.24  possible.  All revenue received under section 124.917 must be 
 11.25  allocated to the qualifying school sites within the district. 
 11.26     Subd. 7.  [PREPAREDNESS REVENUE.] A qualifying school 
 11.27  district is eligible for kindergarten preparedness revenue equal 
 11.28  to the basic formula allowance for that year times the number of 
 11.29  pupil units calculated according to section 124.17, subdivision 
 11.30  1, paragraph (d), clause (ii) in each qualifying school site.  
 11.31  If the kindergarten preparedness revenue is insufficient to 
 11.32  fully fund the formula amounts, the commissioner of education 
 11.33  shall prorate the revenue provided to each qualifying school 
 11.34  site. 
 11.35     Sec. 10.  Minnesota Statutes 1994, section 124A.03, 
 11.36  subdivision 1g, is amended to read: 
 12.1      Subd. 1g.  [REFERENDUM EQUALIZATION LEVY.] (a) For fiscal 
 12.2   year 1996, a district's referendum equalization levy equals the 
 12.3   district's referendum equalization revenue times the lesser of 
 12.4   one or the ratio of the district's adjusted net tax capacity per 
 12.5   actual pupil unit to 100 percent of the equalizing factor as 
 12.6   defined in section 124A.02, subdivision 8. 
 12.7      (b) For fiscal year 1997 and thereafter, a district's 
 12.8   referendum equalization levy for a referendum levied against the 
 12.9   referendum market value of all taxable property as defined in 
 12.10  section 124A.02, subdivision 3b, equals the district's 
 12.11  referendum equalization revenue times the lesser of one or the 
 12.12  ratio of the district's referendum market value per actual pupil 
 12.13  unit to $476,000. 
 12.14     (c) For fiscal year 1997 and thereafter, a district's 
 12.15  referendum equalization levy for a referendum levied against the 
 12.16  net tax capacity of all taxable property equals the district's 
 12.17  referendum equalization revenue times the lesser of one or the 
 12.18  ratio of the district's adjusted net tax capacity per actual 
 12.19  pupil unit to 100 percent of the equalizing factor for that year.
 12.20     Sec. 11.  Minnesota Statutes 1994, section 124A.03, 
 12.21  subdivision 1h, is amended to read: 
 12.22     Subd. 1h.  [REFERENDUM EQUALIZATION AID.] (a) A district's 
 12.23  referendum equalization aid equals the difference between its 
 12.24  referendum equalization revenue and levy. 
 12.25     (b) For fiscal year 1993, a district's referendum 
 12.26  equalization aid is equal to one-third of the amount calculated 
 12.27  in clause (a). 
 12.28     (c) For fiscal year 1994, a district's referendum 
 12.29  equalization aid is equal to two-thirds of the amount calculated 
 12.30  in clause (a). 
 12.31     (d) If a district's actual levy for referendum equalization 
 12.32  revenue is less than its maximum levy limit, aid shall be 
 12.33  proportionately reduced. 
 12.34     Sec. 12.  Minnesota Statutes 1994, section 124A.0311, 
 12.35  subdivision 4, is amended to read: 
 12.36     Subd. 4.  [REFERENDUM.] The school board must prepare and 
 13.1   publish in the official legal newspaper of the school district a 
 13.2   notice of the public meeting on the district's intent to convert 
 13.3   any portion of its referendum levy to market value not less than 
 13.4   30 days before the scheduled date of the meeting.  The 
 13.5   resolution converting a portion of the district's referendum 
 13.6   levy to referendum market value becomes final unless within 30 
 13.7   days after the meeting where the resolution was adopted a 
 13.8   petition requesting an election signed by a number of people 
 13.9   residing in the district equal to 15 percent of the number of 
 13.10  people who voted in the last general election in the school 
 13.11  district is filed with the recording officer qualified voters in 
 13.12  excess of 15 percent of the registered voters of the school 
 13.13  district on the day the petition is filed with the school 
 13.14  board.  If a petition is filed, then the school board resolution 
 13.15  has no effect and the amount of referendum revenue authority 
 13.16  specified in the resolution cancels for taxes payable in the 
 13.17  following year and thereafter.  The school board shall schedule 
 13.18  a referendum under section 124A.03, subdivision 2. 
 13.19     Sec. 13.  Minnesota Statutes 1994, section 124A.22, 
 13.20  subdivision 2, is amended to read: 
 13.21     Subd. 2.  [BASIC REVENUE.] The basic revenue for each 
 13.22  district equals the formula allowance times the actual pupil 
 13.23  units for the school year.  The formula allowance for fiscal 
 13.24  years 1993 and 1994 is $3,050.  The formula allowance for fiscal 
 13.25  year 1995 and subsequent fiscal years is $3,150.  The formula 
 13.26  allowance for fiscal year 1996 is $3,240.  The formula allowance 
 13.27  for fiscal year 1997 and subsequent fiscal years is $3,220. 
 13.28     Sec. 14.  Minnesota Statutes 1994, section 124A.22, 
 13.29  subdivision 2a, is amended to read: 
 13.30     Subd. 2a.  [CONTRACT DEADLINE AND PENALTY.] (a) The 
 13.31  following definitions apply to this subdivision:  
 13.32     (1) "Public employer" means:  
 13.33     (i) a school district; and 
 13.34     (ii) a public employer, as defined by section 179A.03, 
 13.35  subdivision 15, other than a school district that (i) (a) 
 13.36  negotiates a contract under chapter 179A with teachers, 
 14.1   and (ii) (b) is established by, receives state money, or levies 
 14.2   under chapters 120 to 129, or 136D, or 268A, or section 136C.411.
 14.3      (2) "Teacher" means a person, other than a superintendent 
 14.4   or assistant superintendent, principal, assistant principal, or 
 14.5   a supervisor or confidential employee who occupies a position 
 14.6   for which the person must be licensed by the board of teaching, 
 14.7   state board of education, or state board of technical colleges. 
 14.8      (b) Notwithstanding any law to the contrary, a public 
 14.9   employer and the exclusive representative of the teachers shall 
 14.10  both sign a collective bargaining agreement on or before January 
 14.11  15 of an even-numbered calendar year.  If a collective 
 14.12  bargaining agreement is not signed by that date, state aid paid 
 14.13  to the public employer for that fiscal year shall must be 
 14.14  reduced.  However, state aid shall may not be reduced if: 
 14.15     (1) a public employer and the exclusive representative of 
 14.16  the teachers have submitted all unresolved contract items to 
 14.17  interest arbitration according to section 179A.16 before 
 14.18  December 31 of an odd-numbered year and filed required final 
 14.19  positions on all unresolved items with the commissioner of 
 14.20  mediation services before January 15 of an even-numbered year; 
 14.21  and 
 14.22     (2) the arbitration panel has issued its decision within 60 
 14.23  days after the date the final positions were filed. 
 14.24     (c)(1) For a district that reorganizes according to section 
 14.25  122.22, 122.23, or 122.241 to 122.248 effective July 1 of an 
 14.26  odd-numbered year, state aid shall may not be reduced according 
 14.27  to this subdivision if the school board and the exclusive 
 14.28  representative of the teachers both sign a collective bargaining 
 14.29  agreement on or before the March 15 following the effective date 
 14.30  of reorganization.  
 14.31     (2) For a district that jointly negotiates a contract prior 
 14.32  to the effective date of reorganization under section 122.22, 
 14.33  122.23, or 122.241 to 122.248 that, for the first time, includes 
 14.34  teachers in all districts to be reorganized, state aid shall may 
 14.35  not be reduced according to this subdivision if the school board 
 14.36  and the exclusive representative of the teachers sign a 
 15.1   collective bargaining agreement on or before the March 15 
 15.2   following the expiration of the teacher contracts in each 
 15.3   district involved in the joint negotiation. 
 15.4      (3) Only one extension of the contract deadline is 
 15.5   available to a district under this paragraph. 
 15.6      (d) The reduction shall must equal $25 times the number of 
 15.7   actual pupil units:  
 15.8      (1) for a school district, that are in the district during 
 15.9   that fiscal year; or 
 15.10     (2) for a public employer other than a school district, 
 15.11  that are in programs provided by the employer during the 
 15.12  preceding fiscal year. 
 15.13     The department of education shall determine the number of 
 15.14  full-time equivalent actual pupil units in the programs.  The 
 15.15  department of education shall reduce general education aid; if 
 15.16  general education aid is insufficient or not paid, the 
 15.17  department shall reduce other state aids. 
 15.18     (e) Reductions from aid to school districts and public 
 15.19  employers other than school districts shall must be returned to 
 15.20  the general fund redistributed to districts that sign collective 
 15.21  bargaining agreements with their teachers by September 1 of the 
 15.22  previous odd-numbered year.  The funds must be allocated on a 
 15.23  pupil unit basis. 
 15.24     Sec. 15.  Minnesota Statutes 1994, section 124A.22, 
 15.25  subdivision 4, is amended to read: 
 15.26     Subd. 4.  [TRAINING AND EXPERIENCE REVENUE.] (a) The 
 15.27  previous formula training and experience revenue for each 
 15.28  district equals the greater of zero or the result of the 
 15.29  following computation:  
 15.30     (1) subtract 1.6 from the training and experience index; 
 15.31     (2) multiply the result in clause (1) by the product of 
 15.32  $700 times the actual pupil units for the school year. 
 15.33     (b) The maximum training and experience revenue for each 
 15.34  district equals the greater of zero or the result of the 
 15.35  following computation:  
 15.36     (1) subtract .8 from the training and experience index; 
 16.1      (2) multiply the result in clause (1) by the product of 
 16.2   $660 times the actual pupil units for the school year.  
 16.3      (c) For fiscal year 1994, the training and experience 
 16.4   revenue for each district equals the district's previous formula 
 16.5   training and experience revenue plus one-half of the difference 
 16.6   between the district's maximum training and experience revenue 
 16.7   and the district's previous formula training and experience 
 16.8   revenue.  
 16.9      (d) For fiscal year 1995, the training and experience 
 16.10  revenue for each district equals the district's previous formula 
 16.11  training and experience revenue plus three-fourths of the 
 16.12  difference between the district's maximum training and 
 16.13  experience revenue and the district's previous formula training 
 16.14  and experience revenue. 
 16.15     (e) For fiscal year 1996 and thereafter, the training and 
 16.16  experience revenue for each district equals the district's 
 16.17  maximum training and experience revenue.  
 16.18     Sec. 16.  Minnesota Statutes 1994, section 124A.22, 
 16.19  subdivision 4a, is amended to read: 
 16.20     Subd. 4a.  [FISCAL YEAR 1996 TRAINING AND EXPERIENCE LEVY.] 
 16.21  A district's training and experience levy for fiscal year 1996 
 16.22  equals its training and experience revenue times the lesser of 
 16.23  one or the ratio of the district's adjusted net tax capacity per 
 16.24  actual pupil unit for the year before the year the levy is 
 16.25  certified to the equalizing factor for the school year to which 
 16.26  the levy is attributable. 
 16.27     Sec. 17.  Minnesota Statutes 1994, section 124A.22, 
 16.28  subdivision 4b, is amended to read: 
 16.29     Subd. 4b.  [FISCAL YEAR 1996 TRAINING AND EXPERIENCE AID.] 
 16.30  A district's training and experience aid for fiscal year 1996 
 16.31  equals its training and experience revenue minus its training 
 16.32  and experience levy times the ratio of the actual amount levied 
 16.33  to the permitted levy. 
 16.34     Sec. 18.  Minnesota Statutes 1994, section 124A.22, 
 16.35  subdivision 8a, is amended to read: 
 16.36     Subd. 8a.  [SUPPLEMENTAL LEVY.] To obtain supplemental 
 17.1   revenue, a district may levy an amount not more than the product 
 17.2   of its supplemental revenue for the school year times the lesser 
 17.3   of one or the ratio of its general education levy to its general 
 17.4   education revenue, excluding training and experience revenue and 
 17.5   supplemental revenue, for the same year. 
 17.6      Sec. 19.  Minnesota Statutes 1994, section 124A.22, 
 17.7   subdivision 9, is amended to read: 
 17.8      Subd. 9.  [SUPPLEMENTAL REVENUE REDUCTION.] A district's 
 17.9   supplemental revenue allowance is reduced by the sum of: 
 17.10     (1) the sum of one-fourth of the difference of:  
 17.11     (i) the sum of the district's training and experience 
 17.12  revenue and compensatory revenue per actual pupil unit for that 
 17.13  fiscal year 1996, and 
 17.14     (ii) the sum of district's training and experience revenue 
 17.15  and compensatory revenue per actual pupil unit for fiscal year 
 17.16  1994; and 
 17.17     (2) the difference between the formula allowance for the 
 17.18  current fiscal year and $3,050 $100.  
 17.19     A district's supplemental revenue allowance may not be less 
 17.20  than zero. 
 17.21     Sec. 20.  Minnesota Statutes 1994, section 124A.225, 
 17.22  subdivision 4, is amended to read: 
 17.23     Subd. 4.  [REVENUE USE.] (a) Revenue must be used according 
 17.24  to either paragraph (b), or (c), or (d). 
 17.25     (b) Revenue shall be used to reduce and maintain the 
 17.26  district's instructor to learner ratios in kindergarten through 
 17.27  grade 6 to a level of 1 to 17 on average and maintain them at 
 17.28  reduced levels.  The district must prioritize the use of the 
 17.29  revenue to attain this level initially in kindergarten and grade 
 17.30  1 and then through the subsequent grades as revenue is available.
 17.31     (c) Notwithstanding paragraph (b), for fiscal year 1995, a 
 17.32  district with exceptional need as defined in subdivision 6, 
 17.33  paragraph (a), may use the revenue to reduce and maintain the 
 17.34  district's instructor-to-learner ratios in kindergarten through 
 17.35  grade 6 to a level that is at least 2.0 less than the district's 
 17.36  adopted staffing ratio, if the remaining learning and 
 18.1   development revenue is used to continue or initiate staffing 
 18.2   patterns that meet the needs of a diverse student population.  
 18.3   Programs to meet the needs of a diverse student population may 
 18.4   include programs for at-risk pupils and learning enrichment 
 18.5   programs. 
 18.6      (d) For fiscal year 1995 only, in any school building that 
 18.7   meets the characteristics of exceptional need as defined in 
 18.8   subdivision 6, paragraph (b), a district may use the revenue to 
 18.9   employ education assistants or aides supervised by a learner's 
 18.10  regular instructor to assist learners in those school buildings. 
 18.11     (e) The revenue may be used to prepare and use an 
 18.12  individualized learning plan for each learner.  A district must 
 18.13  not increase the district wide instructor-learner ratios in 
 18.14  other grades as a result of reducing instructor-learner ratios 
 18.15  in kindergarten through grade 6.  Revenue may not be used to 
 18.16  provide instructor preparation time or to provide the district's 
 18.17  share of revenue required under section 124.311.  A school 
 18.18  district may use a portion of the revenue reserved under this 
 18.19  section to employ up to the same number of full-time equivalent 
 18.20  education assistants or aides as the district employed during 
 18.21  the 1992-1993 school year under Minnesota Statutes 1992, section 
 18.22  124.331, subdivision 2. 
 18.23     Sec. 21.  Minnesota Statutes 1994, section 124A.225, 
 18.24  subdivision 5, is amended to read: 
 18.25     Subd. 5.  [ADDITIONAL REVENUE USE.] If the school board of 
 18.26  a school district determines that the district has achieved and 
 18.27  is maintaining the instructor-learner ratios specified in 
 18.28  subdivision 4 by the school board and is using individualized 
 18.29  learning plans, the school board may use the revenue to purchase 
 18.30  material and services or provide staff development needed for 
 18.31  reduced instructor-learner ratios.  If additional revenue 
 18.32  remains, the district must use the revenue to improve program 
 18.33  offerings, including programs provided through interactive 
 18.34  television, throughout the district or other general education 
 18.35  purposes. 
 18.36     Sec. 22.  Minnesota Statutes 1994, section 124A.23, 
 19.1   subdivision 1, is amended to read: 
 19.2      Subdivision 1.  [GENERAL EDUCATION TAX RATE.] The 
 19.3   commissioner shall establish the general education tax rate by 
 19.4   July 1 of each year for levies payable in the following year.  
 19.5   The general education tax capacity rate shall be a rate, rounded 
 19.6   up to the nearest tenth of a percent, that, when applied to the 
 19.7   adjusted net tax capacity for all districts, raises the amount 
 19.8   specified in this subdivision.  The general education tax rate 
 19.9   shall be the rate that raises $1,044,000,000 for fiscal year 
 19.10  1995 and $1,054,000,000 for fiscal year 1996 and $1,158,000,000 
 19.11  for fiscal year 1997 and later fiscal years.  The general 
 19.12  education tax rate may not be changed due to changes or 
 19.13  corrections made to a district's adjusted net tax capacity after 
 19.14  the tax rate has been established.  
 19.15     Sec. 23.  Minnesota Statutes 1994, section 124A.23, 
 19.16  subdivision 4, is amended to read: 
 19.17     Subd. 4.  [GENERAL EDUCATION AID.] A district's general 
 19.18  education aid is the sum of the following amounts:  
 19.19     (1) the product of (i) the difference between the general 
 19.20  education revenue, excluding training and experience revenue and 
 19.21  supplemental revenue, and the general education levy, times (ii) 
 19.22  the ratio of the actual amount levied to the permitted levy; 
 19.23     (2) training and experience aid according to section 
 19.24  124A.22, subdivision 4b; 
 19.25     (3) supplemental aid according to section 124.214, 
 19.26  subdivision 2; 
 19.27     (4) (3) shared time aid according to section 124A.02, 
 19.28  subdivision 21; and 
 19.29     (5) (4) referendum aid according to section 124A.03. 
 19.30     Sec. 24.  Minnesota Statutes 1994, section 124A.24, is 
 19.31  amended to read: 
 19.32     124A.24 [GENERAL EDUCATION LEVY EQUITY.] 
 19.33     If a district's general education levy is determined 
 19.34  according to section 124A.23, subdivision 3, an amount must be 
 19.35  deducted from state aid authorized in this chapter and chapters 
 19.36  124 and 124B, receivable for the same school year, and from 
 20.1   other state payments receivable for the same school year 
 20.2   authorized in chapter 273.  The aid in section 124.646 must not 
 20.3   be reduced. 
 20.4      The amount of the deduction equals the difference between: 
 20.5      (1) the general education tax rate, according to section 
 20.6   124A.23, times the district's adjusted net tax capacity used to 
 20.7   determine the general education aid for the same school year; 
 20.8   and 
 20.9      (2) the district's general education revenue, excluding 
 20.10  training and experience revenue and supplemental revenue, for 
 20.11  the same school year, according to section 124A.22. 
 20.12     Sec. 25.  Minnesota Statutes 1994, section 124A.29, 
 20.13  subdivision 1, is amended to read: 
 20.14     Subdivision 1.  [STAFF DEVELOPMENT AND PARENTAL INVOLVEMENT 
 20.15  REVENUE.] (a) Of a district's basic revenue under section 
 20.16  124A.22, subdivision 2, an amount equal to one percent in fiscal 
 20.17  year 1994, two percent in fiscal year 1995, and 2.5 percent in 
 20.18  fiscal year 1996 and thereafter times the formula allowance 
 20.19  times the number of actual pupil units shall be reserved and may 
 20.20  be used only A district is encouraged to use general education 
 20.21  revenue for in-service education for programs under section 
 20.22  126.77, subdivision 2, or for staff development plans, including 
 20.23  plans for challenging instructional activities and experiences 
 20.24  under section 126.70.  Districts may expend an additional amount 
 20.25  of basic revenue for staff development based on their needs.  
 20.26  The school board shall initially allocate 50 percent of the 
 20.27  revenue to each school site in the district on a per teacher 
 20.28  basis, which shall be retained by the school site until used.  
 20.29  The board may retain 25 percent to be used for district wide 
 20.30  staff development efforts.  The remaining 25 percent of the 
 20.31  revenue shall be used to make grants to school sites that 
 20.32  demonstrate exemplary use of allocated staff development 
 20.33  revenue.  A grant may be used for any purpose authorized under 
 20.34  section 126.70 or 126.77, subdivision 2, and determined by the 
 20.35  site decision-making team.  The site decision-making team must 
 20.36  demonstrate to the school board the extent to which staff at the 
 21.1   site have met the outcomes of the program.  The board may 
 21.2   withhold a portion of initial allocation of revenue if the staff 
 21.3   development outcomes are not being met. 
 21.4      (b) Of a district's basic revenue under section 124A.22, 
 21.5   subdivision 2, an amount equal to $5 times the number of actual 
 21.6   pupil units must be reserved and may be used only to and provide 
 21.7   parental involvement programs that implement section 126.69.  
 21.8   Parental involvement programs may include career teacher 
 21.9   programs, programs promoting parental involvement in the PER 
 21.10  process, coordination of volunteer services, participation in 
 21.11  developing, implementing, or evaluating school 
 21.12  desegregation/integration plans, and programs designed to 
 21.13  encourage community involvement.  A district is encouraged to 
 21.14  use equipment revenue for technology for staff development and 
 21.15  general education revenue for programs designed to improve 
 21.16  staff's technological skills.  
 21.17     Sec. 26.  Laws 1994, chapter 647, article 1, section 36, is 
 21.18  amended to read: 
 21.19     Sec. 36.  [PEQUOT LAKES; DELAY IN FORGIVENESS OF AID 
 21.20  REPAYMENT.] 
 21.21     The department of education must allow independent school 
 21.22  district No. 186, Pequot Lakes, to repay over a five-year period 
 21.23  forgive state aid overpayments of $196,000 for fiscal years 1991 
 21.24  and 1992 due to the property tax revenue recognition 
 21.25  shift attributable to independent school district No. 186, 
 21.26  Pequot Lakes.  Notwithstanding Minnesota Statutes, section 
 21.27  124.155, subdivision 1, aids for independent school district No. 
 21.28  186, Pequot Lakes, shall not be adjusted for fiscal years 1991 
 21.29  and 1992 for pupils transferring into the district under 
 21.30  Minnesota Statutes, section 120.062. 
 21.31     Sec. 27.  [SUPPLEMENTAL REVENUE REDUCTION.] 
 21.32     For fiscal years 1996 and 1997, a district that qualified 
 21.33  for a supplemental revenue reduction exception under Laws 1994, 
 21.34  chapter 647, article 1, section 35, shall receive a supplemental 
 21.35  revenue reduction adjustment equal to 60 percent of the amount 
 21.36  received in 1995. 
 22.1      Sec. 28.  [PERMANENT SCHOOL FUND EARNINGS.] 
 22.2      During either fiscal year 1996 or 1997, if the amount to be 
 22.3   distributed according to Minnesota Statutes, section 124.09, 
 22.4   exceeds $32,500,000, notwithstanding section 124.09, the state 
 22.5   board of investment may invest the amount in excess of 
 22.6   $32,500,000 in equities with the goal of improving the long-term 
 22.7   income from the permanent school fund. 
 22.8      Sec. 29.  [LEVY ADJUSTMENT; LE SUEUR-HENDERSON.] 
 22.9      Notwithstanding any law to the contrary, independent school 
 22.10  district No. 2397, Le Sueur-Henderson, must not receive a 
 22.11  negative levy adjustment for any referendum levy made by 
 22.12  independent school district No. 734, Henderson, that was 
 22.13  certified for taxes payable in 1992. 
 22.14     Sec. 30.  [EQUALIZING FACTOR.] 
 22.15     For fiscal year 1996 only, levies calculated under chapters 
 22.16  124 and 124A shall not be recomputed because of an increase in 
 22.17  the formula allowance under Minnesota Statutes, section 124A.22, 
 22.18  subdivision 2. 
 22.19     Sec. 31.  [APPROPRIATIONS.] 
 22.20     Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
 22.21  indicated in this section are appropriated from the general fund 
 22.22  to the department of education for the fiscal years designated.  
 22.23     Subd. 2.  [GENERAL AND SUPPLEMENTAL EDUCATION AID.] For 
 22.24  general and supplemental education aid:  
 22.25       $2,045,366,000     .....     1996
 22.26       $2,226,563,000     .....     1997
 22.27     The 1996 appropriation includes $301,965,000 for 1995 and 
 22.28  $1,743,401,000 for 1996.  
 22.29     The 1997 appropriation includes $329,476,000 for 1996 and 
 22.30  $1,897,087,000 for 1997.  
 22.31     Sec. 32.  [REPEALER.] 
 22.32     (a) Minnesota Statutes 1994, section 124A.27, subdivision 
 22.33  11, is repealed. 
 22.34     (b) Minnesota Statutes 1994, sections 124.17, subdivision 
 22.35  1b; 124A.04, subdivision 1; 124A.29, subdivision 2; and 
 22.36  124A.291, are repealed. 
 23.1                              ARTICLE 2 
 23.2                            TRANSPORTATION
 23.3      Section 1.  Minnesota Statutes 1994, section 123.3514, 
 23.4   subdivision 8, is amended to read: 
 23.5      Subd. 8.  [TRANSPORTATION.] A parent or guardian of a pupil 
 23.6   enrolled in a course for secondary credit may apply to the 
 23.7   pupil's district of residence for reimbursement for transporting 
 23.8   the pupil between the secondary school in which the pupil is 
 23.9   enrolled or the pupil's home and the post-secondary institution 
 23.10  that the pupil attends.  The commissioner shall establish 
 23.11  guidelines for providing state aid to districts to reimburse the 
 23.12  parent or guardian for the necessary transportation costs, which 
 23.13  shall be based on financial need.  The reimbursement may not 
 23.14  exceed the pupil's actual cost of transportation or 15 cents per 
 23.15  mile traveled, whichever is less.  Reimbursement may not be paid 
 23.16  for more than 250 miles per week.  However, if the nearest 
 23.17  post-secondary institution is more than 25 miles from the 
 23.18  pupil's resident secondary school, the weekly reimbursement may 
 23.19  not exceed the reimbursement rate per mile times the actual 
 23.20  distance between the secondary school or the pupil's home and 
 23.21  the nearest post-secondary institution times ten.  The state 
 23.22  shall pay aid to the district according to the guidelines 
 23.23  established under this subdivision.  Chapter 14 does not apply 
 23.24  to the guidelines. 
 23.25     Sec. 2.  Minnesota Statutes 1994, section 123.7991, 
 23.26  subdivision 2, is amended to read: 
 23.27     Subd. 2.  [STUDENT TRAINING.] (a) Each school district 
 23.28  shall provide public school pupils enrolled in grades 
 23.29  kindergarten through 12 10 with age-appropriate school bus 
 23.30  safety training.  The training shall be results-oriented and 
 23.31  shall consist of both classroom instruction and practical 
 23.32  training using a school bus.  Upon completing the training, a 
 23.33  student shall be able to demonstrate knowledge and understanding 
 23.34  of at least the following competencies and concepts: 
 23.35     (1) transportation by school bus is a privilege and not a 
 23.36  right; 
 24.1      (2) district policies for student conduct and school bus 
 24.2   safety; 
 24.3      (3) appropriate conduct while on the school bus; 
 24.4      (4) the danger zones surrounding a school bus; 
 24.5      (5) procedures for safely boarding and leaving a school 
 24.6   bus; 
 24.7      (6) procedures for safe vehicle lane street or road 
 24.8   crossing; and 
 24.9      (7) school bus evacuation and other emergency procedures. 
 24.10     (b) Each nonpublic school located within the district shall 
 24.11  provide all nonpublic school pupils enrolled in grades 
 24.12  kindergarten through 10 who are transported by school bus at 
 24.13  public expense and attend school within the district's 
 24.14  boundaries with training as required in paragraph (a).  The 
 24.15  school district shall make a bus available for the practical 
 24.16  training if the district transports the nonpublic students.  
 24.17  Each nonpublic school shall provide the instruction. 
 24.18     (c) Student school bus safety training shall commence 
 24.19  during school bus safety week.  All students enrolled in grades 
 24.20  kindergarten through 3 who are transported by school bus and are 
 24.21  enrolled during the first or second week of school must 
 24.22  demonstrate achievement of the school bus safety training 
 24.23  competencies by the end of the third week of school.  All 
 24.24  students enrolled in grades 4 through 10 who are transported by 
 24.25  school bus and are enrolled during the first or second week of 
 24.26  school must demonstrate achievement of the competencies by the 
 24.27  end of the sixth week of school.  Students enrolled in grades 
 24.28  kindergarten through 10 who enroll in a school after the first 
 24.29  second week of school and are transported by school bus shall 
 24.30  undergo school bus safety training and demonstrate achievement 
 24.31  of the school bus safety competencies within three four weeks of 
 24.32  the first day of attendance.  The pupil transportation safety 
 24.33  director in each district must certify to the commissioner of 
 24.34  education annually by October 15 that all students transported 
 24.35  by school bus within the district have satisfactorily 
 24.36  demonstrated knowledge and understanding of the school bus 
 25.1   safety competencies according to this section or provide an 
 25.2   explanation for a student's failure to demonstrate the 
 25.3   competencies.  The principal or other chief administrator of 
 25.4   each nonpublic school must certify annually to the public 
 25.5   transportation safety director of the district in which the 
 25.6   school is located that all of the school's students transported 
 25.7   by school bus at public expense have received training.  A 
 25.8   school district may deny transportation to a student who fails 
 25.9   to demonstrate the competencies, unless the student is unable to 
 25.10  achieve the competencies due to a disability, or to a student 
 25.11  who attends a nonpublic school that fails to provide training as 
 25.12  required by this subdivision. 
 25.13     (c) (d) A school district and a nonpublic school with 
 25.14  students transported by school bus at public expense must, to 
 25.15  the extent possible, provide kindergarten pupils with bus safety 
 25.16  training before the first day of school. 
 25.17     (d) (e) A school district and a nonpublic school with 
 25.18  students transported by school bus at public expense must also 
 25.19  provide student safety education for bicycling and pedestrian 
 25.20  safety. 
 25.21     (f) A school district and a nonpublic school with students 
 25.22  transported by school bus at public expense must make reasonable 
 25.23  accommodations for the school bus, bicycle, and pedestrian 
 25.24  safety training of pupils known to speak English as a second 
 25.25  language and pupils with disabilities. 
 25.26     Sec. 3.  Minnesota Statutes 1994, section 123.7991, 
 25.27  subdivision 3, is amended to read: 
 25.28     Subd. 3.  [MODEL TRAINING PROGRAM.] The commissioner of 
 25.29  education shall develop a comprehensive model school bus safety 
 25.30  training program for pupils who ride the bus that includes bus 
 25.31  safety curriculum for both classroom and practical instruction, 
 25.32  methods for assessing attainment of school bus safety 
 25.33  competencies, and age-appropriate instructional materials.  The 
 25.34  program must be adaptable for use by students with disabilities. 
 25.35     Sec. 4.  Minnesota Statutes 1994, section 123.805, 
 25.36  subdivision 1, is amended to read: 
 26.1      Subdivision 1.  [COMPREHENSIVE POLICY.] Each school 
 26.2   district shall develop and implement a comprehensive, written 
 26.3   policy governing pupil transportation safety, including 
 26.4   transportation of nonpublic school students, when applicable.  
 26.5   The policy shall, at minimum, contain: 
 26.6      (1) provisions for appropriate student bus safety training 
 26.7   under section 123.7991; 
 26.8      (2) rules governing student conduct on school buses and in 
 26.9   school bus loading and unloading areas; 
 26.10     (3) a statement of parent or guardian responsibilities 
 26.11  relating to school bus safety; 
 26.12     (4) provisions for notifying students and parents or 
 26.13  guardians of their responsibilities and the rules; 
 26.14     (5) an intradistrict system for reporting school bus 
 26.15  accidents or misconduct, a system for dealing with local law 
 26.16  enforcement officials in cases of criminal conduct on a school 
 26.17  bus, and a system for reporting accidents, crimes, incidents of 
 26.18  misconduct, and bus driver dismissals to the department of 
 26.19  public safety under section 169.452; 
 26.20     (6) a discipline policy to address violations of school bus 
 26.21  safety rules, including procedures for revoking a student's bus 
 26.22  riding privileges in cases of serious or repeated misconduct; 
 26.23     (7) a system for integrating school bus misconduct records 
 26.24  with other discipline records; 
 26.25     (8) a statement of bus driver duties; 
 26.26     (9) planned expenditures for safety activities under 
 26.27  section 123.799 and, where applicable, provisions governing bus 
 26.28  monitor qualifications, training, and duties; 
 26.29     (10) rules governing the use and maintenance of type III 
 26.30  vehicles, drivers of type III vehicles, qualifications to drive 
 26.31  a type III vehicle, qualifications for a type III vehicle and 
 26.32  the circumstances under which a student may be transported in a 
 26.33  type III vehicle; 
 26.34     (11) operating rules and procedures; 
 26.35     (12) provisions for annual bus driver in-service training 
 26.36  and evaluation; 
 27.1      (13) emergency procedures; and 
 27.2      (14) a system for maintaining and inspecting equipment; 
 27.3      (15) requirements of the school district, if any, that 
 27.4   exceed state law minimum requirements for school bus operations; 
 27.5   and 
 27.6      (16) requirements for basic first aid training, which shall 
 27.7   include the Heimlich maneuver and procedures for dealing with 
 27.8   obstructed airways, shock, bleeding, and seizures. 
 27.9      School districts are encouraged to use the model policy 
 27.10  developed by the Minnesota school boards association, the 
 27.11  department of public safety, and the department of education, as 
 27.12  well as the current edition of the "National Standards for 
 27.13  School Buses and Operations" published by the National Safety 
 27.14  Council, in developing safety policies.  Each district shall 
 27.15  submit a copy of its policy under this subdivision to the school 
 27.16  bus safety advisory committee no later than August 1, 1994, and 
 27.17  review and make appropriate amendments annually by August 
 27.18  1.  Each district shall review its policy annually and make 
 27.19  appropriate amendments, which must be submitted to the school 
 27.20  bus safety advisory committee within one month of approval by 
 27.21  the school board. 
 27.22     Sec. 5.  Minnesota Statutes 1994, section 123.805, 
 27.23  subdivision 2, is amended to read: 
 27.24     Subd. 2.  [SCHOOL TRANSPORTATION SAFETY DIRECTOR.] Each 
 27.25  school board shall designate a school transportation safety 
 27.26  director to oversee and implement pupil transportation safety 
 27.27  policies.  The director shall have day-to-day responsibility for 
 27.28  pupil transportation safety within the district, including 
 27.29  transportation of nonpublic school children when provided by the 
 27.30  district. 
 27.31     Sec. 6.  Minnesota Statutes 1994, section 124.223, 
 27.32  subdivision 7, is amended to read: 
 27.33     Subd. 7.  [FARIBAULT STATE ACADEMIES TRANSPORTATION TO AND 
 27.34  FROM BOARD AND LODGING FACILITIES.] State transportation aid is 
 27.35  authorized for transportation for residents resident pupils with 
 27.36  disabilities to and from the Minnesota state academy for the 
 28.1   deaf or the Minnesota state academy for the blind board and 
 28.2   lodging facilities when the pupil is boarded and lodged for 
 28.3   educational purposes. 
 28.4      Sec. 7.  Minnesota Statutes 1994, section 124.225, 
 28.5   subdivision 1, is amended to read: 
 28.6      Subdivision 1.  [DEFINITIONS.] For purposes of this 
 28.7   section, the terms defined in this subdivision have the meanings 
 28.8   given to them. 
 28.9      (a) "FTE" means a full-time equivalent pupil whose 
 28.10  transportation is authorized for aid purposes by section 124.223.
 28.11     (b) "Authorized cost for regular transportation" means the 
 28.12  sum of: 
 28.13     (1) all expenditures for transportation in the regular 
 28.14  category, as defined in paragraph (c), clause (1), for which aid 
 28.15  is authorized in section 124.223, plus 
 28.16     (2) an amount equal to one year's depreciation on the 
 28.17  district's school bus fleet and mobile units computed on a 
 28.18  straight line basis at the rate of 15 percent per year for 
 28.19  districts operating a program under section 121.585 for grades 1 
 28.20  to 12 for all students in the district and 12-1/2 percent per 
 28.21  year for other districts of the cost of the fleet, plus 
 28.22     (3) an amount equal to one year's depreciation on district 
 28.23  school buses reconditioned by the department of corrections 
 28.24  computed on a straight line basis at the rate of 33-1/3 percent 
 28.25  per year of the cost to the district of the reconditioning, plus 
 28.26     (4) an amount equal to one year's depreciation on the 
 28.27  district's type three school buses, as defined in section 
 28.28  169.01, subdivision 6, clause (5), which must be used a majority 
 28.29  of the time for the purposes in sections 124.223 and 124.226, 
 28.30  subdivisions 5, 8, and 9, and were purchased after July 1, 1982, 
 28.31  for authorized transportation of pupils, with the prior approval 
 28.32  of the commissioner, computed on a straight line basis at the 
 28.33  rate of 20 percent per year of the cost of the type three school 
 28.34  buses.  
 28.35     (c) "Transportation category" means a category of 
 28.36  transportation service provided to pupils as follows:  
 29.1      (1) Regular transportation is transportation services 
 29.2   provided during the regular school year under section 124.223, 
 29.3   subdivisions 1 and 2, excluding the following transportation 
 29.4   services provided under section 124.223, subdivision 1:  
 29.5   transportation between schools; noon transportation to and from 
 29.6   school for kindergarten pupils attending half-day sessions; 
 29.7   transportation of pupils to and from schools located outside 
 29.8   their normal attendance areas under the provisions of a plan for 
 29.9   desegregation mandated by the state board of education or under 
 29.10  court order; and transportation of elementary pupils to and from 
 29.11  school within a mobility zone. 
 29.12     (2) Nonregular transportation is transportation services 
 29.13  provided under section 124.223, subdivision 1, that are excluded 
 29.14  from the regular category and transportation services provided 
 29.15  under section 124.223, subdivisions 3, 4, 5, 6, 7, 8, 9, and 10. 
 29.16     (3) Excess transportation is transportation to and from 
 29.17  school during the regular school year for secondary pupils 
 29.18  residing at least one mile but less than two miles from the 
 29.19  public school they could attend or from the nonpublic school 
 29.20  actually attended, and transportation to and from school for 
 29.21  pupils residing less than one mile from school who are 
 29.22  transported because of extraordinary traffic, drug, or crime 
 29.23  hazards. 
 29.24     (4) Desegregation transportation is transportation within 
 29.25  and outside of the district during the regular school year of 
 29.26  pupils to and from schools located outside their normal 
 29.27  attendance areas under a plan for desegregation mandated by the 
 29.28  state board or under court order.  
 29.29     (5) Handicapped transportation is transportation provided 
 29.30  under section 124.223, subdivision 4, for pupils with a 
 29.31  disability between home or a respite care facility and school or 
 29.32  other buildings where special instruction required by sections 
 29.33  120.17 and 120.1701 is provided. 
 29.34     (d) "Mobile unit" means a vehicle or trailer designed to 
 29.35  provide facilities for educational programs and services, 
 29.36  including diagnostic testing, guidance and counseling services, 
 30.1   and health services.  A mobile unit located off nonpublic school 
 30.2   premises is a neutral site as defined in section 123.932, 
 30.3   subdivision 9. 
 30.4      (e) "Current year" means the school year for which aid will 
 30.5   be paid.  
 30.6      (f) "Base year" means the second school year preceding the 
 30.7   school year for which aid will be paid.  
 30.8      (g) "Base cost" means the ratio of: 
 30.9      (1) the sum of the authorized cost in the base year for 
 30.10  regular transportation as defined in paragraph (b) plus the 
 30.11  actual cost in the base year for excess transportation as 
 30.12  defined in paragraph (c); 
 30.13     (2) to the sum of the number of weighted FTE's in the 
 30.14  regular and excess categories in the base year. 
 30.15     (h) "Pupil weighting factor" for the excess transportation 
 30.16  category for a school district means the lesser of one, or the 
 30.17  result of the following computation: 
 30.18     (1) Divide the square mile area of the school district by 
 30.19  the number of FTE's in the regular and excess categories in the 
 30.20  base year. 
 30.21     (2) Raise the result in clause (1) to the one-fifth power. 
 30.22     (3) Divide four-tenths by the result in clause (2). 
 30.23     The pupil weighting factor for the regular transportation 
 30.24  category is one.  
 30.25     (i) "Weighted FTE's"  means the number of FTE's in each 
 30.26  transportation category multiplied by the pupil weighting factor 
 30.27  for that category. 
 30.28     (j) "Sparsity index" for a school district means the 
 30.29  greater of .005 or the ratio of the square mile area of the 
 30.30  school district to the sum of the number of weighted FTE's by 
 30.31  the district in the regular and excess categories in the base 
 30.32  year. 
 30.33     (k) "Density index" for a school district means the greater 
 30.34  of one or the result obtained by subtracting the product of the 
 30.35  district's sparsity index times 20 from two. 
 30.36     (l) "Contract transportation index" for a school district 
 31.1   means the greater of one or the result of the following 
 31.2   computation: 
 31.3      (1) Multiply the district's sparsity index by 20. 
 31.4      (2) Select the lesser of one or the result in clause (1). 
 31.5      (3) Multiply the district's percentage of regular FTE's in 
 31.6   the current year using vehicles that are not owned by the school 
 31.7   district by the result in clause (2). 
 31.8      (m) "Adjusted predicted base cost" means the predicted base 
 31.9   cost as computed in subdivision 3a as adjusted under subdivision 
 31.10  7a. 
 31.11     (n) "Regular transportation allowance" means the adjusted 
 31.12  predicted base cost, inflated and adjusted under subdivision 7b. 
 31.13     Sec. 8.  Minnesota Statutes 1994, section 124.225, 
 31.14  subdivision 3a, is amended to read: 
 31.15     Subd. 3a.  [PREDICTED BASE COST.] A district's predicted 
 31.16  base cost equals the result of the following computation:  
 31.17     (a) Multiply the transportation formula allowance by the 
 31.18  district's sparsity index raised to the one-fourth power.  The 
 31.19  transportation formula allowance is $447 $477 for the 
 31.20  1991-1992 1993-1994 base year and $463 $491 for the 1992-1993 
 31.21  1994-1995 base year.  
 31.22     (b) Multiply the result in paragraph (a) by the district's 
 31.23  density index raised to the 35/100 1/2 power.  
 31.24     (c) Multiply the result in paragraph (b) by the district's 
 31.25  contract transportation index raised to the 1/20 power. 
 31.26     Sec. 9.  Minnesota Statutes 1994, section 124.225, 
 31.27  subdivision 7b, is amended to read: 
 31.28     Subd. 7b.  [INFLATION FACTORS.] (a) The adjusted predicted 
 31.29  base cost determined for a district under subdivision 7a for the 
 31.30  base year must be increased by 2.35 zero percent to determine 
 31.31  the district's regular transportation allowance for the 
 31.32  1993-1994 1995-1996 school year and by 3.425 zero percent to 
 31.33  determine the district's regular transportation allowance for 
 31.34  the 1994-1995 1996-1997 school year, but. 
 31.35     (b) Notwithstanding paragraph (a), the regular 
 31.36  transportation allowance for a district for the 1995-1996 school 
 32.1   year and the 1996-1997 school year cannot be less than the 
 32.2   district's minimum regular transportation allowance according to 
 32.3   Minnesota Statutes 1990, section 124.225, subdivision 1, 
 32.4   paragraph (t). 
 32.5      (c) Notwithstanding paragraph (a), the regular 
 32.6   transportation allowance for a district for the 1997-1998 school 
 32.7   year and later cannot be less than the district's regular 
 32.8   transportation allowance for the 1996-1997 school year. 
 32.9      Sec. 10.  Minnesota Statutes 1994, section 124.225, 
 32.10  subdivision 7d, is amended to read: 
 32.11     Subd. 7d.  [TRANSPORTATION REVENUE.] Transportation revenue 
 32.12  for each district equals the sum of the district's regular 
 32.13  transportation revenue and the district's nonregular 
 32.14  transportation revenue. 
 32.15     (a) The regular transportation revenue for each district 
 32.16  equals the district's regular transportation allowance according 
 32.17  to subdivision 7b times the sum of the number of FTE's by the 
 32.18  district in the regular, desegregation, and handicapped 
 32.19  categories in the current school year. 
 32.20     (b) For the 1992-1993 and later school years 1995-1996 
 32.21  school year, the nonregular transportation revenue for each 
 32.22  district equals the lesser of the district's actual cost in the 
 32.23  current school year for nonregular transportation services or 
 32.24  the product of the district's actual cost in the base year for 
 32.25  nonregular transportation services as defined for the current 
 32.26  year in subdivision 1, paragraph (c), times the ratio of the 
 32.27  district's average daily membership for the current year to the 
 32.28  district's average daily membership for the base year according 
 32.29  to section 124.17, subdivision 2, times the nonregular 
 32.30  transportation inflation factor for the current year, minus the 
 32.31  amount of regular transportation revenue attributable to FTE's 
 32.32  in the desegregation and handicapped categories in the current 
 32.33  school year, plus the excess nonregular transportation revenue 
 32.34  for the current year according to subdivision 7e.  The 
 32.35  nonregular transportation inflation factor is 1.0435 1.0 for the 
 32.36  1993-1994 1995-1996 school year and 1.03425 for the 1994-1995 
 33.1   school year.  
 33.2      (c) For the 1996-1997 school year, the nonregular 
 33.3   transportation revenue for each district equals the lesser of: 
 33.4      (1) the district's actual cost in the current school year 
 33.5   for nonregular transportation services, excess transportation 
 33.6   services, and late activity transportation services; or 
 33.7      (2) the product of the district's actual cost in the base 
 33.8   year for nonregular transportation services as defined for the 
 33.9   current year in subdivision 1, paragraph (c), 
 33.10  times the ratio of the district's average daily membership for 
 33.11  the current year to the district's average daily membership for 
 33.12  the base year according to section 124.17, subdivision 2, times 
 33.13  the nonregular transportation inflation factor for the current 
 33.14  year, minus the amount of regular transportation revenue 
 33.15  attributable to FTE's in the desegregation and handicapped 
 33.16  categories in the current school year, plus the excess 
 33.17  nonregular transportation revenue for the current year according 
 33.18  to subdivision 7e.  
 33.19     The nonregular transportation inflation factor is 1.0 for 
 33.20  the 1996-1997 school year.  
 33.21     (d) For the 1997-1998 school year and later, the nonregular 
 33.22  transportation revenue for each district equals the lesser of: 
 33.23     (1) the district's actual cost in the current school year 
 33.24  for nonregular transportation services, excess transportation 
 33.25  services, and late activity transportation services; or 
 33.26     (2) the product of the greater of: 
 33.27     (i) the district's actual cost in the base year for 
 33.28  nonregular transportation services as defined for the current 
 33.29  year in subdivision 1, paragraph (c); or 
 33.30     (ii) the lesser of the district's actual cost in the base 
 33.31  year for nonregular transportation services, excess 
 33.32  transportation services, and late activity transportation 
 33.33  services or the district's actual cost in the 1994-1995 school 
 33.34  year for nonregular transportation services, 
 33.35  times the ratio of the district's average daily membership for 
 33.36  the current year to the district's average daily membership for 
 34.1   the base year according to section 124.17, subdivision 2, times 
 34.2   the nonregular transportation inflation factor for the current 
 34.3   year, minus the amount of regular transportation revenue 
 34.4   attributable to FTE's in the desegregation and handicapped 
 34.5   categories in the current school year, plus the excess 
 34.6   nonregular transportation revenue for the current year according 
 34.7   to subdivision 7e. 
 34.8      The nonregular transportation inflation factor is 1.0 for 
 34.9   the 1997-1998 and later school years. 
 34.10     Sec. 11.  Minnesota Statutes 1994, section 124.225, 
 34.11  subdivision 7f, is amended to read: 
 34.12     Subd. 7f.  [RESERVED REVENUE FOR TRANSPORTATION SAFETY.] A 
 34.13  district shall reserve an amount equal to the greater of 
 34.14  $1,000 $500 or one-half of one percent of the sum of the 
 34.15  district's regular transportation revenue according to 
 34.16  subdivision 7d, paragraph (a), and nonregular transportation 
 34.17  revenue according to subdivision 7d, paragraph (b), for that 
 34.18  school year to provide student transportation safety programs 
 34.19  under section 123.799. 
 34.20     Sec. 12.  Minnesota Statutes 1994, section 124.225, 
 34.21  subdivision 8a, is amended to read: 
 34.22     Subd. 8a.  [TRANSPORTATION AID.] (a) A district's 
 34.23  transportation aid equals the product of: 
 34.24     (1) the difference between the transportation revenue and 
 34.25  the sum of: 
 34.26     (i) the maximum basic transportation levy for that school 
 34.27  year under section 275.125 124.226, subdivision 5 1, plus 
 34.28     (ii) the maximum nonregular transportation levy for that 
 34.29  school year under section 124.226, subdivision 4, plus 
 34.30     (iii) the contracted services aid reduction under 
 34.31  subdivision 8k, 
 34.32     (2) times the ratio of the sum of the actual amounts levied 
 34.33  under section 124.226, subdivisions 1 and 4, to the sum of the 
 34.34  permitted maximum levies under section 124.226, subdivisions 1 
 34.35  and 4. 
 34.36     (b) If the total appropriation for transportation aid for 
 35.1   any fiscal year is insufficient to pay all districts the full 
 35.2   amount of aid earned, the department of education shall reduce 
 35.3   each district's aid in proportion to the number of resident 
 35.4   pupils in average daily membership in the district to the state 
 35.5   total average daily membership, and shall reduce the 
 35.6   transportation levy of off-formula districts in the same 
 35.7   proportion. 
 35.8      Sec. 13.  Minnesota Statutes 1994, section 124.225, 
 35.9   subdivision 8m, is amended to read: 
 35.10     Subd. 8m.  [TRANSPORTATION SAFETY AID.] A district's 
 35.11  transportation safety aid equals the district's reserved revenue 
 35.12  for transportation safety under subdivision 7f for that school 
 35.13  year.  Failure of a school district to comply with the reporting 
 35.14  requirements of section 123.7991, 123.805, 169.452, 169.4582, or 
 35.15  171.321, subdivision 5, may result in a withholding of that 
 35.16  district's transportation safety aid for that school year. 
 35.17     Sec. 14.  Minnesota Statutes 1994, section 124.226, 
 35.18  subdivision 1, is amended to read: 
 35.19     Subdivision 1.  [BASIC TRANSPORTATION.] Each year, a school 
 35.20  district may levy for school transportation services an amount 
 35.21  not to exceed the amount raised by the basic transportation tax 
 35.22  rate times the adjusted net tax capacity of the district for the 
 35.23  preceding year.  The commissioner of education shall establish 
 35.24  the basic transportation tax rate by July 1 of each year for 
 35.25  levies payable in the following year.  The basic transportation 
 35.26  tax rate shall be a rate, rounded up to the nearest hundredth of 
 35.27  a percent, that, when applied to the adjusted net tax capacity 
 35.28  of taxable property for all districts, raises the amount 
 35.29  specified in this subdivision.  The basic transportation tax 
 35.30  rate for transportation shall be the rate that 
 35.31  raises $64,300,000 for fiscal year 1993 and $68,000,000 for 
 35.32  fiscal year 1994 and subsequent fiscal years.  The basic 
 35.33  transportation tax rate certified by the commissioner of 
 35.34  education must not be changed due to changes or corrections made 
 35.35  to a district's adjusted net tax capacity after the tax rate has 
 35.36  been certified. 
 36.1      Sec. 15.  Minnesota Statutes 1994, section 124.226, 
 36.2   subdivision 3, is amended to read: 
 36.3      Subd. 3.  [OFF-FORMULA ADJUSTMENT.] In a district if the 
 36.4   basic transportation levy under subdivision 1 attributable to 
 36.5   that fiscal year is more than the difference between (1) the 
 36.6   district's transportation revenue under section 124.225, 
 36.7   subdivision 7d, and (2) the sum of the district's maximum 
 36.8   nonregular levy under subdivision 4 and the district's 
 36.9   contracted services aid reduction under section 124.225, 
 36.10  subdivision 8k, and the amount of any reduction due to 
 36.11  insufficient appropriation under section 124.225, subdivision 
 36.12  8a, the district's transportation levy in the second year 
 36.13  following each fiscal year must be reduced by the difference 
 36.14  between the amount of the excess and the amount of the aid 
 36.15  reduction for the same fiscal year according to subdivision 3a. 
 36.16     Sec. 16.  Minnesota Statutes 1994, section 126.15, 
 36.17  subdivision 2, is amended to read: 
 36.18     Subd. 2.  [APPOINTMENT OF MEMBERS.] Unless the parents or 
 36.19  guardian of a pupil object in writing to the school authorities 
 36.20  to the appointment of the pupil on a school safety patrol, it is 
 36.21  lawful for any pupil over nine years of age to be appointed and 
 36.22  designated as a member thereof, provided that in any school in 
 36.23  which there are no pupils who have attained such age any pupil 
 36.24  in the highest grade therein may be so appointed and 
 36.25  designated.  School authorities may also appoint and designate 
 36.26  nonpupil adults as members of a school safety patrol on a 
 36.27  voluntary or for-hire basis. 
 36.28     Sec. 17.  Minnesota Statutes 1994, section 169.01, 
 36.29  subdivision 6, is amended to read: 
 36.30     Subd. 6.  [SCHOOL BUS.] "School bus" means a motor vehicle 
 36.31  used to transport pupils to or from a school defined in section 
 36.32  120.101, or to or from school-related activities, by the school 
 36.33  or a school district, or by someone under an agreement with the 
 36.34  school or a school district.  A school bus does not include a 
 36.35  motor vehicle transporting children to or from school for which 
 36.36  parents or guardians receive direct compensation from a school 
 37.1   district, a motor coach operating under charter carrier 
 37.2   authority, or a transit bus providing services as defined in 
 37.3   section 174.22, subdivision 7, or a vehicle otherwise qualifying 
 37.4   as a type III vehicle under paragraph (5), when the vehicle is 
 37.5   properly registered and insured and being driven by an employee 
 37.6   or agent of a school district for nonscheduled transportation.  
 37.7   A school bus may be type A, type B, type C, or type D, or type 
 37.8   III as follows:  
 37.9      (1) A "type A school bus" is a conversion or body 
 37.10  constructed upon a van-type compact truck or a front-section 
 37.11  vehicle, with a gross vehicle weight rating of 10,000 pounds or 
 37.12  less, designed for carrying more than ten persons. 
 37.13     (2) A "type B school bus" is a conversion or body 
 37.14  constructed and installed upon a van or front-section vehicle 
 37.15  chassis, or stripped chassis, with a gross vehicle weight rating 
 37.16  of more than 10,000 pounds, designed for carrying more than ten 
 37.17  persons.  Part of the engine is beneath or behind the windshield 
 37.18  and beside the driver's seat.  The entrance door is behind the 
 37.19  front wheels. 
 37.20     (3) A "type C school bus" is a body installed upon a flat 
 37.21  back cowl chassis with a gross vehicle weight rating of more 
 37.22  than 10,000 pounds, designated for carrying more than ten 
 37.23  persons.  All of the engine is in front of the windshield and 
 37.24  the entrance door is behind the front wheels. 
 37.25     (4) A "type D school bus" is a body installed upon a 
 37.26  chassis, with the engine mounted in the front, midship or rear, 
 37.27  with a gross vehicle weight rating of more than 10,000 pounds, 
 37.28  designed for carrying more than ten persons.  The engine may be 
 37.29  behind the windshield and beside the driver's seat; it may be at 
 37.30  the rear of the bus, behind the rear wheels, or midship between 
 37.31  the front and rear axles.  The entrance door is ahead of the 
 37.32  front wheels. 
 37.33     (5) Type III school buses and type III Head Start buses are 
 37.34  restricted to passenger cars, station wagons, vans, and buses 
 37.35  having a maximum manufacturer's rated seating capacity of ten 
 37.36  people, including the driver, and a gross vehicle weight rating 
 38.1   of 10,000 pounds or less.  In this subdivision, "gross vehicle 
 38.2   weight rating" means the value specified by the manufacturer as 
 38.3   the loaded weight of a single vehicle.  A "type III school bus" 
 38.4   and "type III Head Start bus" must not be outwardly equipped and 
 38.5   identified as a type A, B, C, or D school bus or type A, B, C, 
 38.6   or D Head Start bus. 
 38.7      Sec. 18.  Minnesota Statutes 1994, section 169.21, 
 38.8   subdivision 2, is amended to read: 
 38.9      Subd. 2.  [RIGHTS IN ABSENCE OF SIGNALS.] (a) Where 
 38.10  traffic-control signals are not in place or in operation the 
 38.11  driver of a vehicle shall yield the right-of-way, slowing down 
 38.12  or stopping if need be to so yield, to a pedestrian crossing the 
 38.13  roadway within a crosswalk but no pedestrian shall suddenly 
 38.14  leave a curb or other place of safety and walk or run into the 
 38.15  path of a vehicle which is so close that it is impossible for 
 38.16  the driver to yield.  This provision shall not apply under the 
 38.17  conditions as otherwise provided in this subdivision. 
 38.18     (b) When any vehicle is stopped at a marked crosswalk or at 
 38.19  any unmarked crosswalk at an intersection to permit a pedestrian 
 38.20  to cross the roadway, the driver of any other vehicle 
 38.21  approaching from the rear shall not overtake and pass the 
 38.22  stopped vehicle. 
 38.23     (c) It is unlawful for any person to drive a motor vehicle 
 38.24  through a column of school children crossing a street or highway 
 38.25  or past a member of a school safety patrol or adult crossing 
 38.26  guard, while the member of the school safety patrol or adult 
 38.27  crossing guard is directing the movement of children across a 
 38.28  street or highway and while the school safety patrol member or 
 38.29  adult crossing guard is holding an official signal in the stop 
 38.30  position.  A person who violates this paragraph is guilty of a 
 38.31  misdemeanor.  A person who violates this paragraph a second or 
 38.32  subsequent time within one year of a previous conviction under 
 38.33  this paragraph is guilty of a gross misdemeanor. 
 38.34     Sec. 19.  Minnesota Statutes 1994, section 169.444, 
 38.35  subdivision 2, is amended to read: 
 38.36     Subd. 2.  [VIOLATIONS BY DRIVERS; PENALTIES.] (a) A person 
 39.1   who fails to stop a vehicle or to keep it stopped, as required 
 39.2   in subdivision 1, is guilty of a misdemeanor punishable by a 
 39.3   fine of not less than $300. 
 39.4      (b) A person is guilty of a gross misdemeanor if the person 
 39.5   fails to stop a motor vehicle or to keep it stopped, as required 
 39.6   in subdivision 1, and commits either or both of the following 
 39.7   acts: 
 39.8      (1) passes or attempts to pass the school bus in a motor 
 39.9   vehicle on the right-hand, passenger-door side of the bus; or 
 39.10     (2) passes or attempts to pass the school bus in a motor 
 39.11  vehicle when a school child is outside of and on the street or 
 39.12  highway used by the school bus or on the adjacent sidewalk. 
 39.13     Sec. 20.  Minnesota Statutes 1994, section 169.4502, 
 39.14  subdivision 4, is amended to read: 
 39.15     Subd. 4.  [COLOR.] Fenders may be painted black.  The hood 
 39.16  may be painted nonreflective black or nonreflective yellow.  The 
 39.17  grill may be manufacturer's standard color or chrome. 
 39.18     Sec. 21.  Minnesota Statutes 1994, section 169.4503, is 
 39.19  amended by adding a subdivision to read: 
 39.20     Subd. 10a.  [EMERGENCY EQUIPMENT; FIRST AID KITS.] A first 
 39.21  aid kit, and a body fluids cleanup kit is required regardless of 
 39.22  the age of the vehicle.  They must be contained in removable, 
 39.23  moisture- and dust-proof containers mounted in an accessible 
 39.24  place within the driver's compartment of the school bus and must 
 39.25  be marked to indicate their identity and location. 
 39.26     Sec. 22.  Minnesota Statutes 1994, section 169.451, is 
 39.27  amended by adding a subdivision to read: 
 39.28     Subd. 5.  [RANDOM SPOT INSPECTIONS.] In addition to the 
 39.29  annual inspection, the Minnesota state patrol has authority to 
 39.30  conduct random, unannounced spot inspections of any school bus 
 39.31  or Head Start bus being operated within the state at the 
 39.32  location where the bus is kept when not in operation to 
 39.33  ascertain whether its construction, design, equipment, and color 
 39.34  comply with all provisions of law, including the Minnesota 
 39.35  school bus equipment standards in sections 169.4501 to 169.4504. 
 39.36     Sec. 23.  [169.4511] [SCHOOL BUS ACCIDENTS; REINSPECTION.] 
 40.1      Subdivision 1.  [POSTCRASH INSPECTION.] A peace officer 
 40.2   responding to an accident involving a school bus or Head Start 
 40.3   bus must immediately notify the state patrol if the accident 
 40.4   results in death or serious personal injury on the school bus, 
 40.5   or property damage to the school bus of an apparent extent of 
 40.6   more than $4,400.  No person shall drive or knowingly permit or 
 40.7   cause to be driven, for the purpose of transporting students, 
 40.8   any school bus or Head Start bus after such an accident unless 
 40.9   the vehicle: 
 40.10     (1) has been inspected by the Minnesota state patrol and 
 40.11  the state patrol has determined that the vehicle may safely be 
 40.12  operated; or 
 40.13     (2) a waiver has been granted under subdivision 2. 
 40.14     A violation of this section is a misdemeanor. 
 40.15     Subd. 2.  [WAIVER.] A state trooper or designee of the 
 40.16  Minnesota state patrol called to the scene of an accident by a 
 40.17  responding peace officer under subdivision 1 may waive the 
 40.18  inspection requirement of subdivision 1 if the trooper or state 
 40.19  patrol designee determines that a postcrash inspection is not 
 40.20  needed or cannot be accomplished without unreasonable delay.  
 40.21  The trooper or state patrol designee granting a waiver must 
 40.22  provide to the driver of the school bus for which the waiver is 
 40.23  granted a written statement that the inspection has been 
 40.24  waived.  The written statement must include the incident report 
 40.25  number assigned to the accident by the state patrol. 
 40.26     Sec. 24.  Minnesota Statutes 1994, section 169.452, is 
 40.27  amended to read: 
 40.28     169.452 [ACCIDENT AND SERIOUS INCIDENT REPORTING.] 
 40.29     The department of public safety shall develop uniform 
 40.30  definitions of a school bus accident, an incident of serious 
 40.31  misconduct, and an incident that results in personal injury or 
 40.32  death.  The department shall determine what type of information 
 40.33  on school bus accidents and incidents, including criminal 
 40.34  conduct, and bus driver dismissals for cause should be collected 
 40.35  and develop a uniform accident and incident reporting form to 
 40.36  collect those data, including data relating to type III 
 41.1   vehicles, statewide.  In addition to the form, the department 
 41.2   shall have an alternative method of reporting that allows school 
 41.3   districts to use computer technology to provide the required 
 41.4   information.  School districts shall report the information 
 41.5   required by the department using either format.  A school 
 41.6   district must not be charged for reporting forms or reporting 
 41.7   procedures under this section.  Data collected with this 
 41.8   reporting form under this section shall be analyzed to help 
 41.9   develop accident, crime, and misconduct prevention 
 41.10  programs.  This section is not subject to chapter 14. 
 41.11     Sec. 25.  Minnesota Statutes 1994, section 169.454, 
 41.12  subdivision 5, is amended to read: 
 41.13     Subd. 5.  [FIRST AID KIT.] A minimum of a ten-unit first 
 41.14  aid kit, and a body fluids cleanup kit is required.  The bus 
 41.15  They must have a be contained in removable, moisture- and 
 41.16  dust-proof first aid kit containers mounted in an accessible 
 41.17  place within the driver's compartment and must be marked to 
 41.18  indicate its their identity and location. 
 41.19     Sec. 26.  Minnesota Statutes 1994, section 169.454, is 
 41.20  amended by adding a subdivision to read: 
 41.21     Subd. 13.  [EXEMPTION.] When a vehicle otherwise qualifying 
 41.22  as a type III vehicle under section 169.01, subdivision 6, 
 41.23  paragraph (5), whether owned and operated by a school district 
 41.24  or privately owned and operated, is used to transport school 
 41.25  children in a nonscheduled situation, it shall be exempt from 
 41.26  the vehicle requirements of this section and the licensing 
 41.27  requirements of section 171.321, if the vehicle is properly 
 41.28  registered and insured and operated by an employee or agent of a 
 41.29  school district with a valid driver's license. 
 41.30     Sec. 27.  Minnesota Statutes 1994, section 171.01, 
 41.31  subdivision 21, is amended to read: 
 41.32     Subd. 21.  [SCHOOL BUS.] "School bus" means a motor vehicle 
 41.33  used to transport pupils to or from a school defined in section 
 41.34  120.101, or to or from school-related activities, by the school 
 41.35  or a school district or by someone under an agreement with the 
 41.36  school or a school district.  A school bus does not include a 
 42.1   motor vehicle transporting children to or from school for which 
 42.2   parents or guardians receive direct compensation from a school 
 42.3   district, a motor coach operating under charter carrier 
 42.4   authority, or a transit bus providing services as defined in 
 42.5   section 174.22, subdivision 7, or a vehicle otherwise qualifying 
 42.6   as a type III vehicle under section 169.01, subdivision 6, 
 42.7   paragraph (5), when the vehicle is properly registered and 
 42.8   insured and being driven by an employee or agent of a school 
 42.9   district for nonscheduled transportation. 
 42.10     Sec. 28.  Minnesota Statutes 1994, section 171.18, 
 42.11  subdivision 1, is amended to read: 
 42.12     Subdivision 1.  [OFFENSES.] The commissioner may suspend 
 42.13  the license of a driver without preliminary hearing upon a 
 42.14  showing by department records or other sufficient evidence that 
 42.15  the licensee: 
 42.16     (1) has committed an offense for which mandatory revocation 
 42.17  of license is required upon conviction; 
 42.18     (2) has been convicted by a court for violating a provision 
 42.19  of chapter 169 or an ordinance regulating traffic and department 
 42.20  records show that the violation contributed in causing an 
 42.21  accident resulting in the death or personal injury of another, 
 42.22  or serious property damage; 
 42.23     (3) is an habitually reckless or negligent driver of a 
 42.24  motor vehicle; 
 42.25     (4) is an habitual violator of the traffic laws; 
 42.26     (5) is incompetent to drive a motor vehicle as determined 
 42.27  in a judicial proceeding; 
 42.28     (6) has permitted an unlawful or fraudulent use of the 
 42.29  license; 
 42.30     (7) has committed an offense in another state that, if 
 42.31  committed in this state, would be grounds for suspension; 
 42.32     (8) has committed a violation of section 169.444, 
 42.33  subdivision 2, paragraph (a), within five years of a prior 
 42.34  conviction under that section; 
 42.35     (9) has committed a violation of section 171.22, except 
 42.36  that the commissioner may not suspend a person's driver's 
 43.1   license based solely on the fact that the person possessed a 
 43.2   fictitious or fraudulently altered Minnesota identification 
 43.3   card; 
 43.4      (10) has failed to appear in court as provided in section 
 43.5   169.92, subdivision 4; or 
 43.6      (11) has failed to report a medical condition that, if 
 43.7   reported, would have resulted in cancellation of driving 
 43.8   privileges. 
 43.9      However, an action taken by the commissioner under clause 
 43.10  (2) or (5) must conform to the recommendation of the court when 
 43.11  made in connection with the prosecution of the licensee. 
 43.12     Sec. 29.  Minnesota Statutes 1994, section 171.321, 
 43.13  subdivision 3, is amended to read: 
 43.14     Subd. 3.  [STUDY OF APPLICANT.] (a) Before issuing or 
 43.15  renewing a school bus endorsement, the commissioner shall 
 43.16  conduct a criminal and driver's license records check of the 
 43.17  applicant.  The commissioner may also conduct the check at any 
 43.18  time while a person is so licensed.  The check shall consist of 
 43.19  a criminal records check of the state criminal records 
 43.20  repository and a check of the driver's license records system.  
 43.21  If the applicant has resided in Minnesota for less than five 
 43.22  years, the check shall also include a criminal records check of 
 43.23  information from the state law enforcement agencies in the 
 43.24  states where the person resided during the five years before 
 43.25  moving to Minnesota, and of the national criminal records 
 43.26  repository including the criminal justice data communications 
 43.27  network.  The applicant's failure to cooperate with the 
 43.28  commissioner in conducting the records check is reasonable cause 
 43.29  to deny an application or cancel a school bus endorsement.  The 
 43.30  commissioner may not release the results of the records check to 
 43.31  any person except the applicant. 
 43.32     (b) The commissioner may issue to an otherwise qualified 
 43.33  applicant a temporary school bus endorsement, effective for no 
 43.34  more than 120 days, upon presentation of (1) an affidavit by the 
 43.35  applicant that the applicant has not been convicted of a 
 43.36  disqualifying offense and (2) a criminal history check from each 
 44.1   state of residence for the previous five years.  The criminal 
 44.2   history check may be conducted and prepared by any public or 
 44.3   private source acceptable to the commissioner. 
 44.4      Sec. 30.  Minnesota Statutes 1994, section 171.321, 
 44.5   subdivision 4, is amended to read: 
 44.6      Subd. 4.  [TRAINING.] No person shall drive a class A, B, 
 44.7   C, or D school bus when transporting school children to or from 
 44.8   school or upon a school-related trip or activity without having 
 44.9   demonstrated sufficient skills and knowledge to transport 
 44.10  students in a safe and legal manner.  A bus driver must have 
 44.11  training or experience that allows the driver to meet at least 
 44.12  the following competencies: 
 44.13     (1) safely operate the type of school bus the driver will 
 44.14  be driving; 
 44.15     (2) understand student behavior, including issues relating 
 44.16  to students with disabilities; 
 44.17     (3) ensure encourage orderly conduct of students on the bus 
 44.18  and handle incidents of misconduct appropriately; 
 44.19     (4) know and understand relevant laws, rules of the road, 
 44.20  and local school bus safety policies; 
 44.21     (5) handle emergency situations; and 
 44.22     (6) safely load and unload students; and 
 44.23     (7)  demonstrate proficiency in first aid and 
 44.24  cardiopulmonary resuscitation procedures. 
 44.25     The commissioner of public safety, in conjunction with the 
 44.26  commissioner of education, shall develop a comprehensive model 
 44.27  school bus driver training program and model assessments for 
 44.28  school bus driver training competencies, which are not subject 
 44.29  to chapter 14.  A school district may use alternative 
 44.30  assessments for bus driver training competencies with the 
 44.31  approval of the commissioner of public safety. 
 44.32     Sec. 31.  Minnesota Statutes 1994, section 171.321, 
 44.33  subdivision 5, is amended to read: 
 44.34     Subd. 5.  [ANNUAL EVALUATION.] A school district district's 
 44.35  pupil transportation safety director, the chief administrator of 
 44.36  a nonpublic school, or a private contractor shall evaluate each 
 45.1   bus driver certify annually to assure the commissioner of public 
 45.2   safety that, at minimum, each school bus driver continues to 
 45.3   meet meets the school bus driver training competencies under 
 45.4   subdivision 4 and shall report the number of hours of in-service 
 45.5   training completed by each driver.  A school district, nonpublic 
 45.6   school, or private contractor also shall provide at least eight 
 45.7   hours of in-service training annually to each school bus 
 45.8   driver.  As part of the annual evaluation, A district, nonpublic 
 45.9   school, or private contractor also shall check the license of 
 45.10  each person who transports students for the district with the 
 45.11  National Drivers Register or the department of public 
 45.12  safety annually.  A school district, nonpublic school, or 
 45.13  private contractor shall certify annually to the commissioner of 
 45.14  public safety that each driver has received eight hours of 
 45.15  in-service training and has met the training competencies The 
 45.16  school board must approve and forward the competency 
 45.17  certification and in-service report to the commissioner of 
 45.18  public safety. 
 45.19     Sec. 32.  Minnesota Statutes 1994, section 171.3215, 
 45.20  subdivision 1, is amended to read: 
 45.21     Subdivision 1.  [DEFINITIONS.] (a) As used in this section, 
 45.22  the following terms have the meanings given them. 
 45.23     (b) "School bus driver" means a person possessing a school 
 45.24  bus driver's endorsement on a valid Minnesota driver's license 
 45.25  or a person possessing a valid Minnesota driver's license who 
 45.26  drives a vehicle with a seating capacity of ten or less persons 
 45.27  used as a school bus. 
 45.28     (c) "Disqualifying offense" includes any felony offense, 
 45.29  any misdemeanor, gross misdemeanor, or felony violation of 
 45.30  chapter 152, or any violation under section 609.3451, 609.746, 
 45.31  subdivision 1, or 617.23, or a fourth moving violation within a 
 45.32  three-year period violation of section 169.121, 169.129, or a 
 45.33  similar statute or ordinance from another state while driving, 
 45.34  operating, or being in physical control of a school bus or a 
 45.35  Head Start bus. 
 45.36     (d) "Head Start bus driver" means a person possessing a 
 46.1   valid Minnesota driver's license: 
 46.2      (1) with a passenger endorsement, who drives a Head Start 
 46.3   bus; 
 46.4      (2) with a school bus driver's endorsement, who drives a 
 46.5   Head Start bus; or 
 46.6      (3) who drives a vehicle with a seating capacity of ten or 
 46.7   fewer persons used as a Head Start bus. 
 46.8      Sec. 33.  Minnesota Statutes 1994, section 171.3215, 
 46.9   subdivision 2, is amended to read: 
 46.10     Subd. 2.  [CANCELLATION FOR DISQUALIFYING OFFENSE.] Within 
 46.11  ten days of receiving notice under section 631.40, subdivision 
 46.12  1a, or otherwise receiving notice for a nonresident driver, that 
 46.13  a school bus driver has been convicted of a disqualifying 
 46.14  offense, the commissioner shall permanently cancel the school 
 46.15  bus driver's endorsement on the offender's driver's license and 
 46.16  in the case of a nonresident, the driver's privilege to operate 
 46.17  a school bus in Minnesota.  Within ten days of receiving notice 
 46.18  under section 631.40, subdivision 1a, or otherwise receiving 
 46.19  notice for a nonresident driver, that a school bus driver has 
 46.20  been convicted of a gross misdemeanor, or a violation of section 
 46.21  169.121 or, 169.129, or a similar statute or ordinance from 
 46.22  another state, and within ten days of revoking a school bus 
 46.23  driver's license under section 169.123, the commissioner shall 
 46.24  cancel the school bus driver's endorsement on the offender's 
 46.25  driver's license or the nonresident's privilege to operate a 
 46.26  school bus in Minnesota for five years.  After five years, a 
 46.27  school bus driver may apply to the commissioner for 
 46.28  reinstatement.  Even after five years, cancellation of a school 
 46.29  bus driver's endorsement or a nonresident's privilege to operate 
 46.30  a school bus in Minnesota for a conviction violation under 
 46.31  section 169.121, 169.123, or 169.129, or a similar statute or 
 46.32  ordinance from another state, shall remain in effect until the 
 46.33  driver provides proof of successful completion of an alcohol or 
 46.34  controlled substance treatment program.  For a first offense, 
 46.35  proof of completion is required only if treatment was ordered as 
 46.36  part of a chemical use assessment.  Within ten days of receiving 
 47.1   notice under section 631.40, subdivision 1a, or otherwise 
 47.2   receiving notice for a nonresident driver, that a school bus 
 47.3   driver has been convicted of a fourth moving violation in the 
 47.4   last three years, the commissioner shall cancel the school bus 
 47.5   driver's endorsement on the offender's driver's license or the 
 47.6   nonresident's privilege to operate a school bus in Minnesota 
 47.7   until one year has elapsed since the last conviction.  A school 
 47.8   bus driver who has no new convictions after one year may apply 
 47.9   for reinstatement.  Upon canceling the offender's school bus 
 47.10  driver's endorsement, the commissioner shall immediately notify 
 47.11  the licensed offender of the cancellation in writing, by 
 47.12  depositing in the United States post office a notice addressed 
 47.13  to the licensed offender at the licensed offender's last known 
 47.14  address, with postage prepaid thereon. 
 47.15     Sec. 34.  Minnesota Statutes 1994, section 171.3215, 
 47.16  subdivision 3, is amended to read: 
 47.17     Subd. 3.  [BACKGROUND CHECK.] Before issuing or renewing a 
 47.18  driver's license with a school bus driver's endorsement, the 
 47.19  commissioner shall conduct an investigation to determine if the 
 47.20  applicant has been convicted of committing a disqualifying 
 47.21  offense, four moving violations in the previous three years, a 
 47.22  violation of section 169.121 or, 169.129, or a similar statute 
 47.23  or ordinance from another state, a gross misdemeanor, or if the 
 47.24  applicant's driver's license has been revoked under section 
 47.25  169.123.  The commissioner shall not issue a new bus driver's 
 47.26  endorsement and shall not renew an existing bus driver's 
 47.27  endorsement if the applicant has been convicted of committing a 
 47.28  disqualifying offense.  The commissioner shall not issue a new 
 47.29  bus driver's endorsement and shall not renew an existing bus 
 47.30  driver's endorsement if, within the previous five years, the 
 47.31  applicant has been convicted of committing a violation of 
 47.32  section 169.121 or, 169.129, or a similar statute or ordinance 
 47.33  from another state, a gross misdemeanor, or if the applicant's 
 47.34  driver's license has been revoked under section 169.123, or if, 
 47.35  within the previous three years, the applicant has been 
 47.36  convicted of four moving violations.  An applicant who has been 
 48.1   convicted of violating section 169.121 or, 169.129, or a similar 
 48.2   statute or ordinance from another state, or who has had a 
 48.3   license revocation under section 169.123 within the previous ten 
 48.4   years must show proof of successful completion of an alcohol or 
 48.5   controlled substance treatment program in order to receive a bus 
 48.6   driver's endorsement.  For a first offense, proof of completion 
 48.7   is required only if treatment was ordered as part of a chemical 
 48.8   use assessment.  A school district or contractor that employs a 
 48.9   nonresident school bus driver must conduct a background check of 
 48.10  the employee's driving record and criminal history in both 
 48.11  Minnesota and the driver's state of residence.  Convictions for 
 48.12  disqualifying offenses, gross misdemeanors, a fourth moving 
 48.13  violation within the previous three years, or violations of 
 48.14  section 169.121, 169.129, or a similar statute or ordinance in 
 48.15  another state, must be reported to the department of public 
 48.16  safety. 
 48.17     Sec. 35.  [604A.015] [SCHOOL BUS DRIVER IMMUNITY FROM 
 48.18  LIABILITY.] 
 48.19     A school bus driver who, while on duty, provides emergency 
 48.20  care, advice, or assistance at the scene of an emergency or 
 48.21  during transit to a location where professional medical care can 
 48.22  be rendered, is not liable in ordinary negligence, for any civil 
 48.23  damages as a result of acts or omissions to the person to whom 
 48.24  assistance is rendered by the school bus driver in rendering the 
 48.25  emergency care, advice, or assistance.  For the purposes of this 
 48.26  section, the scene of an emergency is an area outside the 
 48.27  confines of a hospital or other institution that has hospital 
 48.28  facilities, or an office of a person licensed to practice one or 
 48.29  more of the healing arts under chapter 147, 148, 150A, or 153. 
 48.30     Sec. 36.  Minnesota Statutes 1994, section 631.40, 
 48.31  subdivision 1a, is amended to read: 
 48.32     Subd. 1a.  [CERTIFIED COPY OF DISQUALIFYING OFFENSE 
 48.33  CONVICTIONS SENT TO PUBLIC SAFETY AND SCHOOL DISTRICTS.] When a 
 48.34  person is convicted of committing a disqualifying offense, as 
 48.35  defined in section 171.3215, subdivision 1, a gross misdemeanor, 
 48.36  a fourth moving violation within a three-year period, or a 
 49.1   violation of section 169.121 or 169.129, the court shall 
 49.2   determine whether the offender is a school bus driver as defined 
 49.3   in section 171.3215, subdivision 1, whether the offender 
 49.4   possesses a school bus driver's endorsement on the offender's 
 49.5   driver's license and in what school districts the offender 
 49.6   drives a school bus.  If the offender is a school bus driver or 
 49.7   possesses a school bus driver's endorsement, the court 
 49.8   administrator shall send a certified copy of the conviction to 
 49.9   the department of public safety and to the school districts in 
 49.10  which the offender drives a school bus within ten days after the 
 49.11  conviction. 
 49.12     Sec. 37.  [INTERDISTRICT DESEGREGATION TRANSPORTATION.] 
 49.13     Notwithstanding Minnesota Statutes, section 124.225, 
 49.14  subdivision 7d, a district's nonregular transportation revenue 
 49.15  for interdistrict desegregation transportation for the 1995-1996 
 49.16  and 1996-1997 school years equals the district's actual cost in 
 49.17  the current year for interdistrict desegregation transportation 
 49.18  minus the amount of regular transportation revenue attributable 
 49.19  to FTE's in the desegregation category transported outside of 
 49.20  the district in the current school year. 
 49.21     Sec. 38.  [PAY 1994 LEVY RECOGNITION.] 
 49.22     Notwithstanding Minnesota Statutes, sections 121.904 and 
 49.23  124.226, subdivision 9, 50 percent of the levy certified for 
 49.24  taxes payable in 1994 under Minnesota Statutes, section 124.226, 
 49.25  subdivision 9, shall be recognized as revenue for the fiscal 
 49.26  year in which the levy was certified. 
 49.27     Sec. 39.  [APPROPRIATIONS.] 
 49.28     Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
 49.29  indicated in this section are appropriated from the general fund 
 49.30  to the department of education for the fiscal years designated. 
 49.31     Subd. 2.  [TRANSPORTATION AID.] For transportation aid 
 49.32  according to Minnesota Statutes, section 124.225: 
 49.33       $146,262,000     .....     1996
 49.34       $155,395,000     .....     1997
 49.35     The 1996 appropriation includes $21,038,000 for 1995 and 
 49.36  $125,224,000 for 1996.  
 50.1      The 1997 appropriation includes $22,098,000 for 1996 and 
 50.2   $133,297,000 for 1997.  
 50.3      Subd. 3.  [TRANSPORTATION AID FOR POST-SECONDARY ENROLLMENT 
 50.4   OPTIONS.] For transportation of pupils attending post-secondary 
 50.5   institutions according to Minnesota Statutes, section 123.3514: 
 50.6        $72,000        .....     1996 
 50.7        $80,000        .....     1997 
 50.8      Subd. 4.  [TRANSPORTATION AID FOR ENROLLMENT OPTIONS.] For 
 50.9   transportation of pupils attending nonresident districts 
 50.10  according to Minnesota Statutes, section 120.0621: 
 50.11       $20,000        .....     1996 
 50.12       $22,000        .....     1997 
 50.13     Subd. 5.  [TRANSFER AUTHORITY.] If the appropriation in 
 50.14  subdivision 3 or 4 for either year exceeds the amount needed to 
 50.15  pay the state's obligation for that year under that subdivision, 
 50.16  the excess amount may be used to make payments for that year 
 50.17  under the other subdivision. 
 50.18     Subd. 6.  [TRANSPORTATION SAFETY.] For student 
 50.19  transportation safety aid according to Minnesota Statutes, 
 50.20  section 124.225, subdivision 8m: 
 50.21       $1,447,000     .....     1996 
 50.22       $1,327,000     .....     1997 
 50.23     The 1996 appropriation includes $368,000 for 1995 and 
 50.24  $1,079,000 for 1996.  
 50.25     The 1997 appropriation includes $190,000 for 1996 and 
 50.26  $1,137,000 for 1997. 
 50.27     Sec. 40.  [EFFECTIVE DATE.] 
 50.28     Section 15 (124.226, subdivision 3) is effective beginning 
 50.29  with taxes payable in 1996 for fiscal year 1997.  Sections 2 to 
 50.30  5 and 17 to 36 (school bus safety sections) are effective the 
 50.31  day following final enactment.  Section 38 (pay 1994 levy) is 
 50.32  effective retroactive to July 1, 1993, and applies for fiscal 
 50.33  years 1994 and 1995. 
 50.34                             ARTICLE 3
 50.35                          SPECIAL PROGRAMS 
 50.36     Section 1.  Minnesota Statutes 1994, section 120.062, 
 51.1   subdivision 7, is amended to read: 
 51.2      Subd. 7.  [BASIS FOR DECISIONS.] The school board must 
 51.3   adopt, by resolution, specific standards for acceptance and 
 51.4   rejection of applications.  Standards may include the capacity 
 51.5   of a program, class, grade level, or school building or a 
 51.6   previous disciplinary proceeding that resulted in the expulsion 
 51.7   or exclusion of a student for being willfully engaged in 
 51.8   dangerous or assaultive behavior; or for being convicted of or 
 51.9   adjudicated for committing a felony.  Standards may not include 
 51.10  previous academic achievement, athletic or other extracurricular 
 51.11  ability, disabling conditions, or proficiency in the English 
 51.12  language, or previous disciplinary proceedings.  
 51.13     Sec. 2.  Minnesota Statutes 1994, section 120.17, 
 51.14  subdivision 3a, is amended to read: 
 51.15     Subd. 3a.  [SCHOOL DISTRICT OBLIGATIONS.] Every district 
 51.16  shall ensure that: 
 51.17     (1) all students with disabilities are provided the special 
 51.18  instruction and services which are appropriate to their needs.  
 51.19  Where the individual education plan team has determined 
 51.20  appropriate goals and objectives based on the student's needs, 
 51.21  including the extent to which the student can be included in the 
 51.22  least restrictive environment, and where there are essentially 
 51.23  equivalent and effective instruction, related services, or 
 51.24  assistive technology devices available to meet the student's 
 51.25  needs, cost to the school district may be among the factors 
 51.26  considered by the team in choosing how to provide the 
 51.27  appropriate services, instruction, or devices that are to be 
 51.28  made part of the student's individual education plan.  The 
 51.29  student's needs and the special education instruction and 
 51.30  services to be provided shall be agreed upon through the 
 51.31  development of an individual education plan.  The plan shall 
 51.32  address the student's need to develop skills to live and work as 
 51.33  independently as possible within the community.  By grade 9 or 
 51.34  age 14, the plan shall address the student's needs for 
 51.35  transition from secondary services to post-secondary education 
 51.36  and training, employment, community participation, recreation, 
 52.1   and leisure and home living.  The plan must include a statement 
 52.2   of the needed transition services, including a statement of the 
 52.3   interagency responsibilities or linkages or both before 
 52.4   secondary services are concluded; 
 52.5      (2) children with a disability under age five and their 
 52.6   families are provided special instruction and services 
 52.7   appropriate to the child's level of functioning and needs; 
 52.8      (3) children with a disability and their parents or 
 52.9   guardians are guaranteed procedural safeguards and the right to 
 52.10  participate in decisions involving identification, assessment 
 52.11  and educational placement of children with a disability; 
 52.12     (4) to the maximum extent appropriate, children with a 
 52.13  disability, including those in public or private institutions or 
 52.14  other care facilities, are educated with children who are not 
 52.15  disabled, and that special classes, separate schooling, or other 
 52.16  removal of children with a disability from the regular 
 52.17  educational environment occurs only when and to the extent that 
 52.18  the nature or severity of the disability is such that education 
 52.19  in regular classes with the use of supplementary services cannot 
 52.20  be achieved satisfactorily; 
 52.21     (5) in accordance with recognized professional standards, 
 52.22  testing and evaluation materials, and procedures utilized for 
 52.23  the purposes of classification and placement of children with a 
 52.24  disability are selected and administered so as not to be 
 52.25  racially or culturally discriminatory; and 
 52.26     (6) the rights of the child are protected when the parents 
 52.27  or guardians are not known or not available, or the child is a 
 52.28  ward of the state. 
 52.29     Sec. 3.  Minnesota Statutes 1994, section 120.17, 
 52.30  subdivision 3b, is amended to read: 
 52.31     Subd. 3b.  [PROCEDURES FOR DECISIONS.] Every district shall 
 52.32  utilize at least the following procedures for decisions 
 52.33  involving identification, assessment, and educational placement 
 52.34  of children with a disability: 
 52.35     (a) Parents and guardians shall receive prior written 
 52.36  notice of:  
 53.1      (1) any proposed formal educational assessment or proposed 
 53.2   denial of a formal educational assessment of their child; 
 53.3      (2) a proposed placement of their child in, transfer from 
 53.4   or to, or denial of placement in a special education program; or 
 53.5      (3) the proposed provision, addition, denial or removal of 
 53.6   special education services for their child; 
 53.7      (b) The district shall not proceed with the initial formal 
 53.8   assessment of a child, the initial placement of a child in a 
 53.9   special education program, or the initial provision of special 
 53.10  education services for a child without the prior written consent 
 53.11  of the child's parent or guardian.  The refusal of a parent or 
 53.12  guardian to consent may be overridden by the decision in a 
 53.13  hearing held pursuant to clause (e) at the district's 
 53.14  initiative; 
 53.15     (c) Parents and guardians shall have an opportunity to meet 
 53.16  with appropriate district staff in at least one conciliation 
 53.17  conference, mediation, or other method of alternative dispute 
 53.18  resolution that the parties agree to, if they object to any 
 53.19  proposal of which they are notified pursuant to clause (a).  The 
 53.20  conciliation process or other form of alternative dispute 
 53.21  resolution shall not be used to deny or delay a parent or 
 53.22  guardian's right to a due process hearing.  If the parent or 
 53.23  guardian refuses efforts by the district to conciliate the 
 53.24  dispute with the school district, the requirement of an 
 53.25  opportunity for conciliation or other alternative dispute 
 53.26  resolution shall be deemed to be satisfied;.  Notwithstanding 
 53.27  other law, in any proceeding following a conciliation 
 53.28  conference, the school district must not offer a conciliation 
 53.29  conference memorandum into evidence, except for any portions 
 53.30  that describe the district's final proposed offer of service.  
 53.31  Otherwise, with respect to forms of dispute resolution, 
 53.32  mediation, or conciliation, Minnesota Rule of Evidence 408 
 53.33  applies.  The parties may use an individual presently listed on 
 53.34  the Minnesota Supreme Court, Rule 114 list of individuals 
 53.35  trained in alternative dispute resolution to assist the parties, 
 53.36  provided there is no charge to the parent.  The department of 
 54.1   education may reimburse districts for the reasonable costs 
 54.2   actually incurred of a third party assisting the parties, so 
 54.3   long as that individual is on the Rule 114 list, or is otherwise 
 54.4   approved by the department of education.  The reimbursement must 
 54.5   not exceed the costs for similar services through the office of 
 54.6   administrative hearings.  The department of education may 
 54.7   reimburse the districts or directly pay the costs of lay 
 54.8   advocates, not to exceed $150 per dispute, used in conjunction 
 54.9   with alternative dispute resolution. 
 54.10     (d) The commissioner shall establish a mediation process to 
 54.11  assist parents, school districts, or other parties to resolve 
 54.12  disputes arising out of the identification, assessment, or 
 54.13  educational placement of children with a disability.  The 
 54.14  mediation process must be offered as an informal alternative to 
 54.15  the due process hearing provided under clause (e), but must not 
 54.16  be used to deny or postpone the opportunity of a parent or 
 54.17  guardian to obtain a due process hearing. 
 54.18     (e) Parents, guardians, and the district shall have an 
 54.19  opportunity to obtain an impartial due process hearing initiated 
 54.20  and conducted by and in the school district responsible for 
 54.21  assuring that an appropriate program is provided in accordance 
 54.22  with state board rules, if the parent or guardian continues to 
 54.23  object to:  
 54.24     (1) a proposed formal educational assessment or proposed 
 54.25  denial of a formal educational assessment of their child; 
 54.26     (2) the proposed placement of their child in, or transfer 
 54.27  of their child to a special education program; 
 54.28     (3) the proposed denial of placement of their child in a 
 54.29  special education program or the transfer of their child from a 
 54.30  special education program; 
 54.31     (4) the proposed provision or addition of special education 
 54.32  services for their child; or 
 54.33     (5) the proposed denial or removal of special education 
 54.34  services for their child. 
 54.35     At least five calendar Within five business days before 
 54.36  after the request for a hearing, or as directed by the hearing 
 55.1   officer, the objecting party shall provide the other party with 
 55.2   a brief written statement of particulars of the objection and, 
 55.3   the reasons for the objection, and the specific remedies sought. 
 55.4   The other party shall provide the objecting party with a written 
 55.5   response to the statement of objections within five business 
 55.6   days of receipt of the statement.  
 55.7      The hearing shall take place before an impartial hearing 
 55.8   officer mutually agreed to by the school board and the parent or 
 55.9   guardian.  If the school board and the parent or guardian are 
 55.10  unable to agree on a hearing officer, the school board shall 
 55.11  request the commissioner to appoint a hearing officer who is 
 55.12  satisfactorily current on department of education training.  The 
 55.13  hearing officer shall not be a school board member or employee 
 55.14  of the school district where the child resides or of the child's 
 55.15  school district of residence, an employee of any other public 
 55.16  agency involved in the education or care of the child, or any 
 55.17  person with a personal or professional interest which would 
 55.18  conflict with the person's objectivity at the hearing.  A person 
 55.19  who otherwise qualifies as a hearing officer is not an employee 
 55.20  of the district solely because the person is paid by the 
 55.21  district to serve as a hearing officer.  If the hearing officer 
 55.22  requests an independent educational assessment of a child, the 
 55.23  cost of the assessment shall be at district expense.  The 
 55.24  proceedings shall be recorded and preserved, at the expense of 
 55.25  the school district, pending ultimate disposition of the action. 
 55.26     (f) The decision of the hearing officer pursuant to clause 
 55.27  (e) shall be rendered not more than 45 calendar days from the 
 55.28  date of the receipt of the request for the hearing.  A hearing 
 55.29  officer may grant specific extensions of time beyond the 45-day 
 55.30  period at the request of either party.  The decision of the 
 55.31  hearing officer shall be binding on all parties unless appealed 
 55.32  to the hearing review officer by the parent, guardian, or the 
 55.33  school board of the district where the child resides pursuant to 
 55.34  clause (g). 
 55.35     The local decision shall: 
 55.36     (1) be in writing; 
 56.1      (2) state the controlling facts upon which the decision is 
 56.2   made in sufficient detail to apprise the parties and the hearing 
 56.3   review officer of the basis and reason for the decision; 
 56.4      (3) state whether the special education program or special 
 56.5   education services appropriate to the child's needs can be 
 56.6   reasonably provided within the resources available to the 
 56.7   responsible district or districts; 
 56.8      (4) state the amount and source of any additional district 
 56.9   expenditure necessary to implement the decision; and 
 56.10     (5) be based on the standards set forth in subdivision 3a 
 56.11  and the rules of the state board. 
 56.12     (g) Any local decision issued pursuant to clauses (e) and 
 56.13  (f) may be appealed to the hearing review officer within 30 
 56.14  calendar days of receipt of that written decision, by the 
 56.15  parent, guardian, or the school board of the district 
 56.16  responsible for assuring that an appropriate program is provided 
 56.17  in accordance with state board rules. 
 56.18     If the decision is appealed, a written transcript of the 
 56.19  hearing shall be made by the school district and shall be 
 56.20  accessible to the parties involved within five calendar days of 
 56.21  the filing of the appeal.  The hearing review officer shall 
 56.22  issue a final independent decision based on an impartial review 
 56.23  of the local decision and the entire record within 30 calendar 
 56.24  days after the filing of the appeal.  The hearing review officer 
 56.25  shall seek additional evidence if necessary and may afford the 
 56.26  parties an opportunity for written or oral argument; provided 
 56.27  any hearing held to seek additional evidence shall be an 
 56.28  impartial due process hearing but shall be deemed not to be a 
 56.29  contested case hearing for purposes of chapter 14.  The hearing 
 56.30  review officer may grant specific extensions of time beyond the 
 56.31  30-day period at the request of any party. 
 56.32     The final decision shall: 
 56.33     (1) be in writing; 
 56.34     (2) include findings and conclusions; and 
 56.35     (3) be based upon the standards set forth in subdivision 3a 
 56.36  and in the rules of the state board. 
 57.1      (h) The decision of the hearing review officer shall be 
 57.2   final unless appealed by the parent or guardian or school board 
 57.3   to the court of appeals.  The judicial review shall be in 
 57.4   accordance with chapter 14.  
 57.5      (i) The commissioner of education shall select an 
 57.6   individual who has the qualifications enumerated in this 
 57.7   paragraph to serve as the hearing review officer: 
 57.8      (1) the individual must be knowledgeable and impartial; 
 57.9      (2) the individual must not have a personal interest in or 
 57.10  specific involvement with the student who is a party to the 
 57.11  hearing; 
 57.12     (3) the individual must not have been employed as an 
 57.13  administrator by the district that is a party to the hearing; 
 57.14     (4) the individual must not have been involved in the 
 57.15  selection of the administrators of the district that is a party 
 57.16  to the hearing; 
 57.17     (5) the individual must not have a personal, economic, or 
 57.18  professional interest in the outcome of the hearing other than 
 57.19  the proper administration of the federal and state laws, rules, 
 57.20  and policies; 
 57.21     (6) the individual must not have substantial involvement in 
 57.22  the development of a state or local policy or procedures that 
 57.23  are challenged in the appeal; and 
 57.24     (7) the individual is not a current employee or board 
 57.25  member of a Minnesota public school district, education 
 57.26  district, intermediate unit or regional education agency, the 
 57.27  state department of education, the state board of education, or 
 57.28  a parent advocacy organization or group.  
 57.29     (j) In all appeals, the parent or guardian of the pupil 
 57.30  with a disability or the district that is a party to the hearing 
 57.31  may challenge the impartiality or competence of the proposed 
 57.32  hearing review officer by applying to the state board of 
 57.33  education hearing review officer.  
 57.34     (k) Pending the completion of proceedings pursuant to this 
 57.35  subdivision, unless the district and the parent or guardian of 
 57.36  the child agree otherwise, the child shall remain in the child's 
 58.1   current educational placement and shall not be denied initial 
 58.2   admission to school. 
 58.3      (l) The child's school district of residence, a resident 
 58.4   district, and providing district shall receive notice of and may 
 58.5   be a party to any hearings or appeals under this subdivision. 
 58.6      (m) A school district is not liable for harmless technical 
 58.7   violations of this subdivision or rules implementing this 
 58.8   subdivision if the school district can demonstrate on a 
 58.9   case-by-case basis that the violations did not harm the 
 58.10  student's educational progress or the parent or guardian's right 
 58.11  to notice, participation, or due process. 
 58.12     (n) Within ten calendar days after appointment, the hearing 
 58.13  officer shall schedule and hold a prehearing conference.  At 
 58.14  that conference, or later, the hearing officer may take any 
 58.15  appropriate action that a court might take under Rule 16 of 
 58.16  Minnesota Rules of Civil Procedure including, but not limited 
 58.17  to, scheduling, jurisdiction, and listing witnesses including 
 58.18  expert witnesses. 
 58.19     (o) A hearing officer or hearing review officer appointed 
 58.20  under this subdivision shall be deemed to be an employee of the 
 58.21  state under section 3.732 for the purposes of section 3.736 only.
 58.22     Sec. 4.  Minnesota Statutes 1994, section 120.17, is 
 58.23  amended by adding a subdivision to read: 
 58.24     Subd. 3d.  [INTERAGENCY SERVICES.] If at the time of 
 58.25  initial referral for an educational assessment, or a 
 58.26  reassessment, the school district determines that a child with 
 58.27  disabilities who is age three through 21 may be eligible for 
 58.28  interagency services, the district may request that the county 
 58.29  of residence provide a representative to the first individual 
 58.30  education plan team meeting following the assessment or 
 58.31  reassessment.  The district may also request to have a county 
 58.32  representative attend other individual education plan team 
 58.33  meetings when it is necessary to facilitate coordination between 
 58.34  district and county provided services.  Upon request from a 
 58.35  school district, the resident county may provide a 
 58.36  representative to assist the individual education plan team in 
 59.1   determining the child's eligibility for existing health, mental 
 59.2   health, or other support services administered or provided by 
 59.3   the county and if the county provides a representative, the 
 59.4   individual education plan team and the county representative 
 59.5   shall develop an interagency plan of care for an eligible child 
 59.6   and the child's family to coordinate services required under the 
 59.7   child's individual education plan with county services.  The 
 59.8   interagency plan of care shall include appropriate family 
 59.9   information with the consent of the family, a description of how 
 59.10  services will be coordinated between the district and county, a 
 59.11  description of case management responsibilities and services, 
 59.12  and a description of activities for obtaining third-party 
 59.13  payment for eligible services, including medical assistance 
 59.14  payments. 
 59.15     Sec. 5.  Minnesota Statutes 1994, section 120.185, is 
 59.16  amended to read: 
 59.17     120.185 [ACCOMMODATING STUDENTS WITH DISABILITIES; OPTIONS 
 59.18  PLUS PILOT PROGRAM.] 
 59.19     Subdivision 1.  [ACCOMMODATIONS; MODIFICATIONS.] A school 
 59.20  or school district shall provide a student who is an "individual 
 59.21  with a disability" under Section 504 of the Rehabilitation Act 
 59.22  of 1973, United States Code, title 29, section 794, or under the 
 59.23  Americans with Disabilities Act, Public Law Number 101-336, with 
 59.24  reasonable accommodations or modifications in programs.  
 59.25     Subd. 2.  [FINDINGS; PURPOSE.] The legislature finds that 
 59.26  there is a critical need to support general education classroom 
 59.27  teachers who teach children with specific learning 
 59.28  disabilities.  The legislature recognizes the right of these 
 59.29  children to participate in noncategorical programming designed 
 59.30  to encourage their maximum potential, maintain their 
 59.31  self-esteem, and demonstrate results in measurable educational 
 59.32  outcomes.  In addition, the legislature finds that there is a 
 59.33  need to demonstrate alternatives to special education that focus 
 59.34  on children's educational progress and results, respond to the 
 59.35  individual child, are efficient and cost-effective, and ensure 
 59.36  the rights of eligible children and their families to speedy due 
 60.1   process.  Further, the intent of this legislation is to increase 
 60.2   general education's ability to educate in a manner that 
 60.3   decreases the need for pull-out programs for students with 
 60.4   specific learning disabilities and implement alternative 
 60.5   approaches to conflict resolution.  Therefore, the legislature 
 60.6   establishes an Options Plus pilot program for children with 
 60.7   specific learning disabilities within general education designed 
 60.8   to demonstrate that when these children receive accommodations, 
 60.9   modifications, and personalized instruction they make progress 
 60.10  toward graduation outcomes. 
 60.11     Subd. 3.  [OPTIONS PLUS PILOT PROGRAM.] (a) A five-year 
 60.12  pilot program is established to allow six school districts to 
 60.13  develop and evaluate an Options Plus program for eligible 
 60.14  children.  An Options Plus applicant must be a school district 
 60.15  or districts that cooperate for a particular purpose.  To be 
 60.16  eligible for Options Plus funding, a district or districts must 
 60.17  meet all the criteria described in this section.  Pilot programs 
 60.18  will be approved to ensure geographic and cultural 
 60.19  representation, variety in school district size, and age groups 
 60.20  served.  No applicant may offer Options Plus at the elementary 
 60.21  level only. 
 60.22     (b) To obtain authorization to establish an Options Plus 
 60.23  pilot program, a district or districts must submit an 
 60.24  application to the commissioner of education in the form and 
 60.25  manner prescribed by the commissioner.  The application must 
 60.26  describe: 
 60.27     (1) how the applicant will ensure that eligible children 
 60.28  receive accommodations, modifications, and personalized 
 60.29  instruction; 
 60.30     (2) the methods to be used to evaluate individual progress 
 60.31  and outcomes and cumulative results including parent 
 60.32  satisfaction; 
 60.33     (3) the projected number of students annually participating 
 60.34  in Options Plus; and 
 60.35     (4) the current and projected level of educator competency 
 60.36  at each district site where Options Plus will be established and 
 61.1   the amount of start-up funds the district will need to implement 
 61.2   teacher training prior to project implementation. 
 61.3      (c) School districts must provide assessment and determine 
 61.4   eligibility for students with specific learning disabilities in 
 61.5   accordance with Minnesota Rules, parts 3525.1325 to 3525.1347. 
 61.6      (d) The commissioner may require additional information 
 61.7   from an applicant to the extent that the additional information 
 61.8   documents the effectiveness of the Options Plus program to 
 61.9   improve general education outcomes for eligible children. 
 61.10     Subd. 4.  [DEFINITIONS.] For the purposes of this section, 
 61.11  the terms defined in this subdivision have the meanings given 
 61.12  them. 
 61.13     (a) "Accommodation" means any technique that alters the 
 61.14  educational setting to enable the child to reach the child's 
 61.15  maximum potential and to demonstrate more accurately the child's 
 61.16  knowledge and educational progress.  Accommodations may include, 
 61.17  but are not limited to:  preferential seating, paraphrasing of 
 61.18  information, instructions, practice activities and directions 
 61.19  provided in a manner consistent with the child's learning style, 
 61.20  opportunity for increased response time, more frequent 
 61.21  opportunity for review, extended time to complete assignments 
 61.22  and tests, larger print for assignments or tests, special study 
 61.23  sheets, extended or untimed tests, oral testing and answering, 
 61.24  and use of assistive technology within and outside the 
 61.25  educational environment. 
 61.26     (b) "Assistive technology" means any item, piece of 
 61.27  equipment, or product system, whether acquired commercially off 
 61.28  the shelf, modified, or customized, that is used to increase, 
 61.29  maintain, or improve functional capabilities. 
 61.30     (c) "Competency" means a documented and demonstrated 
 61.31  attitude, skill, or knowledge base resulting in an ability of 
 61.32  general education personnel to provide accommodations, 
 61.33  modifications, and personalized instruction, according to the 
 61.34  eligible child's individual learning styles, within general 
 61.35  education environments. 
 61.36     (d) "Eligible children" means those children who have 
 62.1   specific learning disabilities or conditions related to these 
 62.2   disabilities according to recognized professional standards and 
 62.3   documented by appropriately licensed personnel, including 
 62.4   children eligible for accommodations and modifications under 
 62.5   subdivision 1. 
 62.6      (e) "Learner plan" means a concise written plan that is 
 62.7   based on the eligible child's documented specific learning 
 62.8   disabilities and needs; includes the eligible child's strengths 
 62.9   that may compensate for those differences and needs; provides 
 62.10  the child, the child's parent, and all general education 
 62.11  personnel responsible for direct instruction with information 
 62.12  that results in clear understanding and subsequent use of 
 62.13  accommodations, modifications, and personalized instruction; and 
 62.14  includes methods of evaluating the child's progress that are 
 62.15  consistent with learning differences, needs, strengths, 
 62.16  modifications, and accommodations, and are at intervals 
 62.17  identical to the student population of the school in which the 
 62.18  child participating in Options Plus is enrolled. 
 62.19     (f) "Modification" means any technique that alters the 
 62.20  school work required, makes it different from the school work 
 62.21  required of other students in the same course, and encourages 
 62.22  the eligible child to reach the child's maximum potential and 
 62.23  facilitate educational success.  Modifications may include, but 
 62.24  are not limited to:  copies of teacher notes and lesson plans, 
 62.25  assisted note taking, reduced or altered assignments, increased 
 62.26  assignments in areas of strength, alternative test formats, 
 62.27  modified testing, peer assistance, cooperative learning, and 
 62.28  modified grading such as documentation of progress and results. 
 62.29     (g) "Parent" means a parent, guardian, or person acting as 
 62.30  a parent of a child. 
 62.31     (h) "Personalized instruction" means direct instruction (1) 
 62.32  designed with knowledge of the child's learning style, 
 62.33  strengths, and differences, to assist the child to gain in skill 
 62.34  areas, so the child demonstrates progress toward and outcomes 
 62.35  necessary to become a successful citizen; and (2) provided in 
 62.36  general education settings consistent with the child's class 
 63.1   schedule and course content and that does not interfere with 
 63.2   attendance in any regularly scheduled class or academic activity.
 63.3      Subd. 5.  [DISTRICT COMPLIANCE WITH IDEA.] Districts 
 63.4   participating in Options Plus shall comply with sections 120.03 
 63.5   and 120.17, Minnesota Rules, chapter 3525, the Individuals with 
 63.6   Disabilities Education Act (IDEA), United States Code, title 20, 
 63.7   section 1400 et seq., and Code of Federal Regulations, title 34, 
 63.8   part 300, except that with documented parent approval, districts 
 63.9   need not develop Individual Education Plans (IEPs) as required 
 63.10  by section 120.17, subdivision 3a, clause (1), Minnesota Rules, 
 63.11  part 3425.2900, United States Code, title 20, sections 1401(a) 
 63.12  and 1412(4), and related federal regulations requiring an IEP.  
 63.13  Districts shall continue to have an accounting procedure to 
 63.14  document that federal special education money is expended for 
 63.15  child find, identification, and evaluation consistent with the 
 63.16  IDEA.  The district shall not include children participating in 
 63.17  Options Plus in special education child counts or funding 
 63.18  formulas. 
 63.19     Subd. 6.  [DISTRICT RESPONSIBILITIES.] (a) Districts shall 
 63.20  develop a learner plan as defined in subdivision 4, paragraph 
 63.21  (e), for each child participating in Options Plus.  The learner 
 63.22  plan shall be developed by one of the child's general education 
 63.23  teachers, the parent, and child, if appropriate, in consultation 
 63.24  with other general and special education personnel as is 
 63.25  needed.  The district shall document that the parent, in 
 63.26  consultation with the child as appropriate, chose Options Plus 
 63.27  after being fully informed of their rights.  The district shall 
 63.28  ensure that all education personnel with direct instruction 
 63.29  responsibility for the child participating in Options Plus are 
 63.30  informed of the accommodations and modifications necessary to 
 63.31  ensure success in their area of instruction.  The district shall 
 63.32  develop a method to revise the learner plan in a timely manner 
 63.33  at the request of the parent or education personnel. 
 63.34     (b) If a dispute arises, of which the district is notified 
 63.35  in writing by the parent:  
 63.36     (1) the learner plan shall remain in effect until a new 
 64.1   learner plan is approved by the parent and child, as 
 64.2   appropriate, unless the parent requests a reinstatement of the 
 64.3   last agreed upon IEP; 
 64.4      (2) the district shall ensure that upon written request of 
 64.5   the parent any child may withdraw from Options Plus; 
 64.6      (3) within 15 days of the date the district receives 
 64.7   written notification of the dispute from the parent, the 
 64.8   district shall: 
 64.9      (i) provide the parent and child, if appropriate, with a 
 64.10  list that includes the names, addresses, and telephone numbers 
 64.11  of all known individuals and organizations that offer individual 
 64.12  advocate services within Minnesota; 
 64.13     (ii) inform the parent and child, as appropriate, of all 
 64.14  procedural safeguards and dispute resolution alternatives 
 64.15  available under the Individuals with Disabilities Education Act 
 64.16  (IDEA), United States Code, title 20, section 1400 et seq., 
 64.17  American with Disabilities Act of 1990 (ADA), United States 
 64.18  Code, title 42, section 12101 et seq., Rehabilitation Act of 
 64.19  1973, United States Code, title 29, section 794, and applicable 
 64.20  state law.  Consistent with the intent of the Americans with 
 64.21  Disabilities Act of 1990 (ADA), United States Code, title 42, 
 64.22  section 12212, this legislation encourages the use of 
 64.23  alternative means of dispute resolution including settlement 
 64.24  negotiations, conciliations, facilitation, mediation, fact 
 64.25  finding, minitrials, and arbitration; and 
 64.26     (iii) notify the department of education of the dispute and 
 64.27  the potential need for alternative dispute resolution; and 
 64.28     (4) within 30 days of the date the department of education 
 64.29  received notification of a dispute, the district shall offer the 
 64.30  parent alternative dispute resolution through the department. 
 64.31  The dispute shall be heard by the department and the department 
 64.32  shall make a recommendation for resolution of the dispute. 
 64.33     If the child was previously served through an IEP, the 
 64.34  parent shall retain the option to immediately reinstate the last 
 64.35  agreed upon IEP. 
 64.36     Subd. 7.  [REPORT TO LEGISLATURE.] The commissioner of 
 65.1   education, together with the commissioner of finance, shall 
 65.2   annually report to the respective committees of the legislature 
 65.3   on the educational impact and cost-effectiveness of Options 
 65.4   Plus.  Each report shall include evaluation information on all 
 65.5   aspects of Options Plus referred to in subdivisions 3 to 6.  The 
 65.6   initial report is due February 1997. 
 65.7      Sec. 6.  Minnesota Statutes 1994, section 123.3514, 
 65.8   subdivision 7, is amended to read: 
 65.9      Subd. 7.  [FEES; TEXTBOOKS; MATERIALS.] A post-secondary 
 65.10  institution that receives reimbursement for a pupil under 
 65.11  subdivision 6 may not charge that pupil for fees, textbooks, 
 65.12  materials, support services as defined in section 135A.16, or 
 65.13  other necessary costs of the course or program in which the 
 65.14  pupil is enrolled if the charge would be prohibited under 
 65.15  section 120.74, except for equipment purchased by the pupil that 
 65.16  becomes the property of the pupil.  An institution may require 
 65.17  the pupil to pay for fees, textbooks, and materials for a course 
 65.18  taken for post-secondary credit. 
 65.19     Sec. 7.  Minnesota Statutes 1994, section 123.3514, is 
 65.20  amended by adding a subdivision to read: 
 65.21     Subd. 7b.  [SUPPORT SERVICES.] The post-secondary 
 65.22  institution shall inform the pupil of the support services 
 65.23  available at that institution.  
 65.24     If the student has an individual education plan that 
 65.25  provides general education support and accommodations, the 
 65.26  school district shall be responsible for those support 
 65.27  services.  The district and the post-secondary institution shall 
 65.28  develop an agreement on the rate to be charged for the 
 65.29  services.  Nothing in this section shall prevent the student 
 65.30  from enrolling while the agreement is being developed.  If the 
 65.31  parties cannot agree on the services, on application of either 
 65.32  party, the commissioner shall resolve the dispute in the same 
 65.33  manner the commissioner fixes tuition rates under section 
 65.34  120.17, subdivision 4.  The commissioner's decision is binding 
 65.35  on both parties. 
 65.36     Sec. 8.  Minnesota Statutes 1994, section 124.273, is 
 66.1   amended by adding a subdivision to read: 
 66.2      Subd. 1c.  [REVENUE.] A district's limited English 
 66.3   proficiency programs revenue for fiscal year 1996 and later 
 66.4   equals the product of: 
 66.5      (1) the district's base revenue for limited English 
 66.6   proficiency programs under this section and section 124.321, 
 66.7   times 
 66.8      (2) the ratio of: 
 66.9      (i) the greater of 20 or the number of pupils of limited 
 66.10  English proficiency enrolled in the district during the current 
 66.11  fiscal year to 
 66.12     (ii) the greater of 20 or the number of pupils of limited 
 66.13  English proficiency enrolled in the district during fiscal year 
 66.14  1995. 
 66.15     Sec. 9.  Minnesota Statutes 1994, section 124.273, is 
 66.16  amended by adding a subdivision to read: 
 66.17     Subd. 1d.  [LEP BASE REVENUE.] The limited English 
 66.18  proficiency programs base revenue equals the sum of the 
 66.19  following amounts, computed using fiscal year 1995 data:  
 66.20     (1) 68 percent of the salaries paid limited English 
 66.21  proficiency program teachers; and 
 66.22     (2) for supplies and equipment purchased or rented for use 
 66.23  in the instruction of pupils of limited English proficiency an 
 66.24  amount equal to 47 percent of the sum actually spent by the 
 66.25  district but not to exceed an average of $47 in any one school 
 66.26  year for each pupil of limited English proficiency receiving 
 66.27  instruction. 
 66.28     Sec. 10.  Minnesota Statutes 1994, section 124.273, is 
 66.29  amended by adding a subdivision to read: 
 66.30     Subd. 1e.  [AID.] A district's limited English proficiency 
 66.31  aid for fiscal year 1996 or later equals the aid percentage 
 66.32  factor under section 124.3201, subdivision 1, times the 
 66.33  district's limited English proficiency revenue. 
 66.34     Sec. 11.  Minnesota Statutes 1994, section 124.32, 
 66.35  subdivision 10, is amended to read: 
 66.36     Subd. 10.  [SUMMER SCHOOL.] The state shall pay aid for 
 67.1   summer school programs for children with a disability on the 
 67.2   basis of subdivisions 1b, 1d, and 5 for the current school 
 67.3   year.  The state shall also pay to the Minnesota state academy 
 67.4   for the deaf or the Minnesota state academy for the blind a part 
 67.5   of the salary of each instructional aide assigned to a child 
 67.6   attending the academy, if that aide is required by the child's 
 67.7   individual education plan.  By March 15 of each year, districts 
 67.8   shall submit separate applications for program and budget 
 67.9   approval for summer school programs.  The review of these 
 67.10  applications shall be as provided in subdivision 7.  By May 1 of 
 67.11  each year, the commissioner shall approve, disapprove or modify 
 67.12  the applications and notify the districts of the action and of 
 67.13  the estimated amount of aid for the summer school programs.  
 67.14     Sec. 12.  Minnesota Statutes 1994, section 124.32, 
 67.15  subdivision 12, is amended to read: 
 67.16     Subd. 12.  [ALLOCATION FROM COOPERATIVE CENTERS, 
 67.17  EDUCATIONAL COOPERATIVE SERVICE UNITS, EDUCATION DISTRICTS, AND 
 67.18  INTERMEDIATE DISTRICTS.] For purposes of this section, a special 
 67.19  education cooperative, educational cooperative service unit, 
 67.20  education district, or an intermediate district shall allocate 
 67.21  its approved expenditures for special education programs among 
 67.22  participating school districts.  Special education aid for 
 67.23  services provided by a cooperative, educational cooperative 
 67.24  service unit, education district, or intermediate district shall 
 67.25  be paid to the participating school districts or to a special 
 67.26  education cooperative, educational cooperative service unit, 
 67.27  education district, or intermediate district if designated by a 
 67.28  participating school district. 
 67.29     Sec. 13.  [124.3201] [SPECIAL EDUCATION REVENUE.] 
 67.30     Subdivision 1.  [DEFINITIONS] For the purposes of this 
 67.31  section and sections 124.3202 and 124.321, the definitions in 
 67.32  this subdivision apply. 
 67.33     (a) "Base year" for fiscal year 1996 means fiscal year 1995.
 67.34  Base year for later fiscal years means the second fiscal year 
 67.35  preceding the fiscal year for which aid will be paid. 
 67.36     (b) "Basic revenue" has the meaning given it in section 
 68.1   124A.22, subdivision 2.  For the purposes of computing basic 
 68.2   revenue pursuant to this section, each child with a disability 
 68.3   shall be counted as prescribed in section 124.17, subdivision 1. 
 68.4      (c) "Essential personnel" means teachers, related services, 
 68.5   and support services staff providing direct services to students.
 68.6      (d) "Average daily membership" has the meaning given it in 
 68.7   section 124.17. 
 68.8      (e) "Program growth factor" means 1.00 for fiscal year 1998 
 68.9   and later. 
 68.10     (f) "Aid percentage factor" means 70 percent for fiscal 
 68.11  year 1996, 80 percent for fiscal year 1997, 90 percent for 
 68.12  fiscal year 1998, and 100 percent for fiscal years 1999 and 
 68.13  later. 
 68.14     (g) "Levy percentage factor" means 100 minus the aid 
 68.15  percentage factor for that year. 
 68.16     Subd. 2.  [SPECIAL EDUCATION BASE REVENUE.] The special 
 68.17  education base revenue equals the sum of the following amounts 
 68.18  computed using base year data: 
 68.19     (1) 68 percent of the salary of each essential person 
 68.20  employed in the district's program for children with a 
 68.21  disability during the regular school year, whether the person is 
 68.22  employed by one or more districts; 
 68.23     (2) for the Minnesota state academy for the deaf or the 
 68.24  Minnesota state academy for the blind, 68 percent of the salary 
 68.25  of each instructional aide assigned to a child attending the 
 68.26  academy, if that aide is required by the child's individual 
 68.27  education plan; 
 68.28     (3) for special instruction and services provided to any 
 68.29  pupil by contracting with public, private, or voluntary agencies 
 68.30  other than school districts, in place of special instruction and 
 68.31  services provided by the district, 52 percent of the difference 
 68.32  between the amount of the contract and the basic revenue of the 
 68.33  district for that pupil for the fraction of the school day the 
 68.34  pupil receives services under the contract; 
 68.35     (4) for special instruction and services provided to any 
 68.36  pupil by contracting for services with public, private, or 
 69.1   voluntary agencies other than school districts, that are 
 69.2   supplementary to a full educational program provided by the 
 69.3   school district, 52 percent of the amount of the contract for 
 69.4   that pupil; and 
 69.5      (5) for supplies and equipment purchased or rented for use 
 69.6   in the instruction of children with a disability an amount equal 
 69.7   to 47 percent of the sum actually expended by the district but 
 69.8   not to exceed an average of $47 in any one school year for each 
 69.9   child with a disability receiving instruction. 
 69.10     Subd. 3.  [ADJUSTED SPECIAL EDUCATION BASE REVENUE.] For 
 69.11  fiscal year 1996 and later, a district's adjusted special 
 69.12  education base revenue equals the district's special education 
 69.13  base revenue times the ratio of the district's average daily 
 69.14  membership for the current school year to the district's average 
 69.15  daily membership for the base year. 
 69.16     Subd. 4.  [STATE TOTAL SPECIAL EDUCATION REVENUE.] The 
 69.17  state total special education revenue for fiscal year 1996 
 69.18  equals $331,000,000.  The state total special education revenue 
 69.19  for fiscal year 1997 equals $347,000,000.  The state total 
 69.20  special education revenue for later fiscal years equals:  
 69.21     (1) the state total special education revenue for the 
 69.22  preceding fiscal year; times 
 69.23     (2) the program growth factor; times 
 69.24     (3) the ratio of the state total average daily membership 
 69.25  for the current fiscal year to the state total average daily 
 69.26  membership for the preceding fiscal year. 
 69.27     Subd. 5.  [SCHOOL DISTRICT SPECIAL EDUCATION REVENUE.] A 
 69.28  school district's special education revenue for fiscal year 1996 
 69.29  and later equals the state total special education revenue times 
 69.30  the ratio of the district's adjusted special education base 
 69.31  revenue to the state total adjusted special education base 
 69.32  revenue.  If the state board of education modifies its rules for 
 69.33  special education in a manner that increases a school district's 
 69.34  special education obligations or service requirements, the 
 69.35  commissioner of education shall annually increase each 
 69.36  district's special education revenue by the amount necessary to 
 70.1   compensate for the increased service requirements.  The 
 70.2   additional revenue equals the cost in the current year 
 70.3   attributable to rule changes not reflected in the computation of 
 70.4   special education base revenue, multiplied by the appropriate 
 70.5   percentages from subdivision 2. 
 70.6      Subd. 6.  [SPECIAL EDUCATION AID.] A school district's 
 70.7   special education aid for fiscal year 1996 and later equals the 
 70.8   district's special education revenue times the aid percentage 
 70.9   factor for that year. 
 70.10     Subd. 7.  [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 
 70.11  INTERMEDIATES.] For the purposes of this section and section 
 70.12  124.321, a special education cooperative or an intermediate 
 70.13  district shall allocate its approved expenditures for special 
 70.14  education programs among participating school districts.  
 70.15  Special education aid for services provided by a cooperative or 
 70.16  intermediate district shall be paid to the participating school 
 70.17  districts unless the district has requested that aid be paid 
 70.18  directly to the cooperative or intermediate district under 
 70.19  section 124.32, subdivision 12. 
 70.20     Sec. 14.  [124.3202] [SPECIAL EDUCATION SUMMER PROGRAM 
 70.21  REVENUE.] 
 70.22     Subdivision 1.  [SUMMER PROGRAM BASE REVENUE.] The summer 
 70.23  program base revenue equals the sum of the following amounts 
 70.24  computed using base year data: 
 70.25     (1) 68 percent of the summer program salary of each 
 70.26  essential person employed in the district's program for children 
 70.27  with a disability, whether the person is employed by one or more 
 70.28  districts; 
 70.29     (2) for the Minnesota state academy for the deaf or the 
 70.30  Minnesota state academy for the blind, 68 percent of the summer 
 70.31  program salary of each instructional aide assigned to a child 
 70.32  attending the academy, if that aide is required by the child's 
 70.33  individual education plan; 
 70.34     (3) for special instruction and services provided to any 
 70.35  pupil by contracting with public, private, or voluntary agencies 
 70.36  other than school districts, in place of special instruction and 
 71.1   services provided by the district, 52 percent of the difference 
 71.2   between the amount of the contract for the summer program and 
 71.3   the basic revenue of the district for that pupil for the 
 71.4   fraction of the school day the pupil receives services under the 
 71.5   contract; and 
 71.6      (4) for special instruction and services provided to any 
 71.7   pupil by contracting for services with public, private, or 
 71.8   voluntary agencies other than school districts, that are 
 71.9   supplementary to a full educational program provided by the 
 71.10  school district, 52 percent of the amount of the summer program 
 71.11  contract for that pupil. 
 71.12     Subd. 2.  [ADJUSTED SUMMER PROGRAM BASE REVENUE.] For 
 71.13  fiscal year 1996 and later, a district's adjusted summer program 
 71.14  base revenue equals the district's summer program base revenue 
 71.15  times the ratio of the district's average daily membership for 
 71.16  the current school year to the district's average daily 
 71.17  membership for the base year. 
 71.18     Subd. 3.  [STATE TOTAL SUMMER PROGRAM REVENUE.] The state 
 71.19  total summer program revenue for fiscal year 1996 equals 
 71.20  $7,253,000.  The state total summer program revenue for fiscal 
 71.21  year 1997 equals $7,604,000.  The state total summer program 
 71.22  revenue for later fiscal years equals:  
 71.23     (1) the state total summer program revenue for the 
 71.24  preceding fiscal year; times 
 71.25     (2) the program growth factor; times 
 71.26     (3) the ratio of the state total average daily membership 
 71.27  for the current fiscal year to the state total average daily 
 71.28  membership for the preceding fiscal year. 
 71.29     Subd. 4.  [SCHOOL DISTRICT SUMMER PROGRAM REVENUE.] A 
 71.30  school district's summer program revenue for fiscal year 1996 
 71.31  and later equals the state total summer program revenue times 
 71.32  the ratio of the district's adjusted summer program base revenue 
 71.33  to the state total adjusted summer program base revenue. 
 71.34     Subd. 5.  [SPECIAL EDUCATION SUMMER PROGRAM AID.] A school 
 71.35  district's special education summer program aid for fiscal year 
 71.36  1996 and later equals the district's summer program revenue 
 72.1   times the aid percentage factor for that year. 
 72.2      Subd. 6.  [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 
 72.3   INTERMEDIATES.] For the purposes of this section and section 
 72.4   124.321, a special education cooperative or an intermediate 
 72.5   district shall allocate its approved expenditures for special 
 72.6   education programs among participating school districts.  
 72.7   Special education summer program aid for services provided by a 
 72.8   cooperative or intermediate district shall be paid to the 
 72.9   participating school districts unless the district has requested 
 72.10  that aid be paid directly to the cooperative or intermediate 
 72.11  district under section 124.32, subdivision 12. 
 72.12     Sec. 15.  Minnesota Statutes 1994, section 124.321, 
 72.13  subdivision 1, is amended to read: 
 72.14     Subdivision 1.  [LEVY EQUALIZATION REVENUE.] (a) For fiscal 
 72.15  years 1996 and later, special education levy equalization 
 72.16  revenue for a school district, excluding an intermediate school 
 72.17  district, equals the sum of the following amounts: 
 72.18     (1) 68 percent of the salaries paid to essential personnel 
 72.19  in that district minus the amount of state aid and any federal 
 72.20  aid, if applicable, paid to that district for salaries of these 
 72.21  essential personnel under section 124.32, subdivisions 1b and 
 72.22  10, for the year to which the levy is attributable, plus 
 72.23     (2) 68 percent of the salaries paid to essential personnel 
 72.24  in that district minus the amount of state aid and any federal 
 72.25  aid, if applicable, paid to that district for salaries of those 
 72.26  essential personnel under section 124.574, subdivision 2b, for 
 72.27  the year to which the levy is attributable, plus 
 72.28     (3) 68 percent of the salaries paid to limited English 
 72.29  proficiency program teachers in that district minus the amount 
 72.30  of state aid and any federal aid, if applicable, paid to that 
 72.31  district for salaries of these teachers under section 124.273, 
 72.32  subdivision 1b, for the year to which the levy is attributable, 
 72.33  plus 
 72.34     (4) the alternative delivery levy revenue determined 
 72.35  according to section 124.322, subdivision 4, plus 
 72.36     (5) the amount allocated to the district by special 
 73.1   education cooperatives or intermediate districts in which it 
 73.2   participates according to subdivision 2. 
 73.3      A district that receives alternative delivery levy revenue 
 73.4   according to section 124.322, subdivision 4, shall not receive 
 73.5   levy equalization revenue under clause (1) or subdivision 2, 
 73.6   clause (1), for the same fiscal year. 
 73.7      (1) the levy percentage factor for that year times the 
 73.8   district's special education revenue under section 124.3201; 
 73.9   plus 
 73.10     (2) the levy percentage factor for that year times the 
 73.11  district's special education summer program revenue under 
 73.12  section 124.3202; plus 
 73.13     (3) the levy percentage factor for that year times the 
 73.14  district's special education excess cost revenue under section 
 73.15  124.323; plus 
 73.16     (4) the levy percentage factor for that year times the 
 73.17  district's secondary vocational education for children with a 
 73.18  disability revenue under section 124.574; plus 
 73.19     (5) the levy percentage factor for that year times the 
 73.20  district's limited English proficiency programs revenue under 
 73.21  section 124.273. 
 73.22     Sec. 16.  Minnesota Statutes 1994, section 124.321, 
 73.23  subdivision 2, is amended to read: 
 73.24     Subd. 2.  [REVENUE ALLOCATION FROM COOPERATIVES AND 
 73.25  INTERMEDIATE DISTRICTS STATE ACADEMIES.] (a) For purposes of 
 73.26  this section, a special education cooperative or an intermediate 
 73.27  district shall allocate to participating school districts the 
 73.28  sum of the following amounts: 
 73.29     (1) 68 percent of the salaries paid to essential personnel 
 73.30  in that cooperative or intermediate district minus the amount of 
 73.31  state aid and any federal aid, if applicable, paid to that 
 73.32  cooperative or intermediate district for salaries of these 
 73.33  essential personnel under section 124.32, subdivisions 1b and 
 73.34  10, for the year to which the levy is attributable, plus 
 73.35     (2) 68 percent of the salaries paid to essential personnel 
 73.36  in that district minus the amount of state aid and any federal 
 74.1   aid, if applicable, paid to that district for salaries of those 
 74.2   essential personnel under section 124.574, subdivision 2b, for 
 74.3   the year to which the levy is attributable, plus 
 74.4      (3) 68 percent of the salaries paid to limited English 
 74.5   proficiency program teachers in that cooperative or intermediate 
 74.6   district minus the amount of state aid and any federal aid, if 
 74.7   applicable, paid to that cooperative or intermediate district 
 74.8   for salaries of these teachers under section 124.273, 
 74.9   subdivision 1b, for the year to which the levy is attributable. 
 74.10     (b) A special education cooperative or an intermediate 
 74.11  district that allocates amounts to participating school 
 74.12  districts under this subdivision must report the amounts 
 74.13  allocated to the department of education. 
 74.14     (c) For purposes of this subdivision section, the Minnesota 
 74.15  state academy for the deaf or the Minnesota state academy for 
 74.16  the blind each year shall allocate an amount equal to 68 percent 
 74.17  of salaries paid to instructional aides in either academy minus 
 74.18  the amount of state aid and any federal aid, if applicable, paid 
 74.19  to either academy for salaries of these instructional aides 
 74.20  under sections 124.32, subdivisions 1b and 10, the levy 
 74.21  percentage factor for that year times their special education 
 74.22  revenue under section 124.3201 and their special education 
 74.23  summer program revenue under section 124.3202 for the year to 
 74.24  each school district that assigns a child with an individual 
 74.25  education plan requiring an instructional aide to attend either 
 74.26  academy.  The school districts that assign a child who requires 
 74.27  an instructional aide may make a levy in the amount of the costs 
 74.28  allocated to them by either academy. 
 74.29     (d) (b) When the Minnesota state academy for the deaf or 
 74.30  the Minnesota state academy for the blind allocates unreimbursed 
 74.31  portions of salaries of instructional aides revenue among school 
 74.32  districts that assign a child who requires an instructional 
 74.33  aide, for purposes of the districts making a levy under this 
 74.34  subdivision, the academy shall provide information to the 
 74.35  department of education on the amount of unreimbursed costs of 
 74.36  salaries revenue it allocated to the school districts that 
 75.1   assign a child who requires an instructional aide. 
 75.2      Sec. 17.  Minnesota Statutes 1994, section 124.322, is 
 75.3   amended to read: 
 75.4      124.322 [ALTERNATIVE DELIVERY BASE REVENUE ADJUSTMENT.] 
 75.5      Subdivision 1.  [ELIGIBILITY.] A district is eligible 
 75.6   for an alternative delivery base revenue adjustment if the 
 75.7   commissioner of education has approved the application of the 
 75.8   district according to section 120.173. 
 75.9      Subd. 1a.  [DEFINITIONS BASE REVENUE ADJUSTMENT.] In this 
 75.10  section, the definitions in this subdivision apply. 
 75.11     (a) "Base revenue" means the following: 
 75.12     (1) for the first fiscal year after approval of the 
 75.13  district's application, base revenue means the sum of the 
 75.14  district's revenue for the preceding fiscal year for its special 
 75.15  education program under sections 124.32, subdivisions 1b, 1d, 2, 
 75.16  5, and 10, and 124.321, subdivision 1; 
 75.17     (2) for the second fiscal year after approval of a 
 75.18  district's application, base revenue means the sum of the 
 75.19  district's revenue for the second prior fiscal year for its 
 75.20  special education program under sections 124.32, subdivisions 
 75.21  1b, 1d, 2, 5, and 10, and 124.321, subdivision 1; and 
 75.22     (3) For the third fiscal year after approval of a 
 75.23  district's application, and thereafter, the special education 
 75.24  base revenue under section 124.3201, subdivision 1, and the 
 75.25  summer program base revenue means the sum of the revenue a 
 75.26  district would have been entitled to in the second prior fiscal 
 75.27  year for its special education program under sections 124.32, 
 75.28  subdivisions 1b, 1d, 2, 5, and 10, and 124.321, subdivision 
 75.29  1, under section 124.3202, subdivision 1, shall be computed 
 75.30  based on activities defined as reimbursable under state board 
 75.31  rules for special education and nonspecial education students, 
 75.32  and additional activities as detailed and approved by the 
 75.33  commissioner of education. 
 75.34     (b) "Base aid" means the following: 
 75.35     (1) for the first fiscal year after approval of a 
 75.36  district's application, base aid means the sum of the district's 
 76.1   gross aid for the preceding fiscal year for its special 
 76.2   education program under section 124.32, subdivisions 1b, 1d, 2, 
 76.3   5, and 10; 
 76.4      (2) for the second fiscal year after approval of a 
 76.5   district's application, base aid means the sum of the district's 
 76.6   gross aid for the second prior fiscal year for its special 
 76.7   education program under section 124.32, subdivisions 1b, 1d, 2, 
 76.8   5, and 10; and 
 76.9      (3) for the third fiscal year after approval of a 
 76.10  district's application and thereafter, base aid means the sum of 
 76.11  the gross aid the district would have been entitled to in the 
 76.12  second prior fiscal year for its special education program under 
 76.13  section 124.32, subdivisions 1b, 1d, 2, 5, and 10, based on 
 76.14  activities defined as reimbursable under state board of 
 76.15  education rules for special education and nonspecial education 
 76.16  students, and additional activities as detailed and approved by 
 76.17  the commissioner of education in the application plan. 
 76.18     (c) Notwithstanding paragraphs (a) and (b), base revenue 
 76.19  and base aid for 1995 and later fiscal years must not include 
 76.20  revenue and aid under section 124.32, subdivision 5. 
 76.21     (d) "Alternative delivery revenue inflator" means: 
 76.22     (1) for the first fiscal year after approval of a 
 76.23  district's application, the greater of 1.017 or the ratio of (i) 
 76.24  the statewide average special education revenue under sections 
 76.25  124.32 and 124.321 per pupil in average daily membership for the 
 76.26  current fiscal year, to (ii) the statewide average special 
 76.27  education revenue per pupil in average daily membership for the 
 76.28  previous fiscal year. 
 76.29     (2) for the second and later fiscal years, the greater of 
 76.30  1.034 or the ratio of (i) the statewide average special 
 76.31  education revenue under sections 124.32 and 124.321 per pupil in 
 76.32  average daily membership for the current fiscal year, to (ii) 
 76.33  the statewide average special education revenue per pupil in 
 76.34  average daily membership for the second prior fiscal year. 
 76.35     (e) The commissioner of education shall adjust each 
 76.36  district's base revenue and base aid to reflect any changes in 
 77.1   special education services required by rule or statute.  
 77.2      Subd. 2.  [AMOUNT OF ALTERNATIVE DELIVERY REVENUE.] For the 
 77.3   first fiscal year after approval of an application, a district's 
 77.4   alternative delivery revenue equals its base revenue multiplied 
 77.5   by the product of the alternative delivery revenue inflator 
 77.6   times the ratio of the district's average daily membership for 
 77.7   the current fiscal year to the district's average daily 
 77.8   membership for the immediately preceding fiscal year.  For the 
 77.9   second and later fiscal years a district's alternative delivery 
 77.10  revenue equals its base revenue multiplied by the product of the 
 77.11  alternative delivery revenue inflator times the ratio of the 
 77.12  district's average daily membership for the current fiscal year 
 77.13  to the district's average daily membership for the second 
 77.14  preceding fiscal year. 
 77.15     Subd. 3.  [ALTERNATIVE DELIVERY AID.] For the first fiscal 
 77.16  year after approval of an application, a district's alternative 
 77.17  delivery aid equals its base aid multiplied by the product of 
 77.18  1.017 times the ratio of the district's average daily membership 
 77.19  for the current fiscal year to the district's average daily 
 77.20  membership for the preceding fiscal year.  For the second and 
 77.21  later fiscal years a district's alternative delivery aid equals 
 77.22  its base aid multiplied by the product of 1.034 times the ratio 
 77.23  of the district's average daily membership for the current 
 77.24  fiscal year to the district's average daily membership for the 
 77.25  second preceding fiscal year.  A district that receives aid 
 77.26  under this subdivision shall not receive aid under section 
 77.27  124.32, subdivisions 1b, 1d, 2, 5, and 10, for the same fiscal 
 77.28  year. 
 77.29     Subd. 4.  [ALTERNATIVE DELIVERY LEVY REVENUE.] A district 
 77.30  shall receive alternative delivery levy revenue equal to the 
 77.31  difference between the alternative delivery revenue and the 
 77.32  alternative delivery aid.  If the alternative delivery aid for a 
 77.33  district is prorated, the alternative delivery levy revenue 
 77.34  shall be increased by the amount not paid by the state due to 
 77.35  proration.  The alternative delivery levy revenue shall be 
 77.36  included under section 124.321, subdivision 1, for purposes of 
 78.1   computing the special education levy under section 124.321, 
 78.2   subdivision 3, and the special education levy equalization aid 
 78.3   under section 124.321, subdivision 4. 
 78.4      Subd. 5.  [USE OF REVENUE.] Revenue under this section 
 78.5   sections 124.3201 and 124.3202 shall be used to implement the 
 78.6   approved program.  
 78.7      Sec. 18.  Minnesota Statutes 1994, section 124.323, 
 78.8   subdivision 1, is amended to read: 
 78.9      Subdivision 1.  [DEFINITIONS.] In this section, the 
 78.10  definitions in this subdivision apply. 
 78.11     (a) "Unreimbursed special education cost" means the sum of 
 78.12  the following: 
 78.13     (1) expenditures for teachers' salaries, contracted 
 78.14  services, supplies, and equipment eligible for revenue under 
 78.15  sections 124.32, subdivisions 1b, 1d, 2, and 10, and 124.322, 
 78.16  subdivision 2 124.3201, 124.3202, and 124.321; plus 
 78.17     (2) expenditures for tuition bills received under section 
 78.18  120.17; minus 
 78.19     (3) revenue for teachers' salaries, contracted services, 
 78.20  supplies, and equipment under sections 124.32, subdivisions 1b, 
 78.21  1d, 2, and 10; 124.321, subdivision 1, clause (1); and 124.322, 
 78.22  subdivision 2 124.3201, 124.3202, and 124.321; minus 
 78.23     (4) tuition receipts under section 120.17. 
 78.24     (b) "General revenue" means the sum of the general 
 78.25  education revenue according to section 124A.22, subdivision 1, 
 78.26  plus the total referendum revenue according to section 124A.03, 
 78.27  subdivision 1e. 
 78.28     Sec. 19.  Minnesota Statutes 1994, section 124.323, 
 78.29  subdivision 2, is amended to read: 
 78.30     Subd. 2.  [EXCESS COST AID REVENUE.] For 1995 1996 and 
 78.31  later fiscal years, a district's special education excess 
 78.32  cost aid revenue equals the product of: 
 78.33     (1) 70 percent of the difference between (i) the district's 
 78.34  unreimbursed special education cost per actual pupil unit and 
 78.35  (ii) six percent of the district's general revenue per actual 
 78.36  pupil unit, times 
 79.1      (2) the district's actual pupil units for that year. 
 79.2      Sec. 20.  Minnesota Statutes 1994, section 124.323, is 
 79.3   amended by adding a subdivision to read: 
 79.4      Subd. 3.  [EXCESS COST AID.] For 1996 and later fiscal 
 79.5   years, a district's special education excess cost aid equals the 
 79.6   district's special education excess cost revenue times the aid 
 79.7   percentage factor for that year. 
 79.8      Sec. 21.  Minnesota Statutes 1994, section 124.573, 
 79.9   subdivision 2e, is amended to read: 
 79.10     Subd. 2e.  [ALLOCATION FROM COOPERATIVE CENTERS AND 
 79.11  INTERMEDIATE DISTRICTS.] For purposes of subdivisions 2b, 
 79.12  paragraph (b), and 2f, paragraph (b), a cooperative center or an 
 79.13  intermediate district shall allocate its approved expenditures 
 79.14  for secondary vocational education programs among participating 
 79.15  school districts.  For purposes of subdivision 2f, paragraph 
 79.16  (a), a cooperative center or an intermediate district shall 
 79.17  allocate its secondary vocational aid for fiscal year 1994 among 
 79.18  participating school districts.  For 1995 and later fiscal 
 79.19  years, secondary vocational aid for services provided by a 
 79.20  cooperative center or an intermediate district shall be paid to 
 79.21  the participating school district or to a vocational 
 79.22  cooperative, education district, or intermediate district if 
 79.23  designated by a participating school district. 
 79.24     Sec. 22.  Minnesota Statutes 1994, section 124.574, is 
 79.25  amended by adding a subdivision to read: 
 79.26     Subd. 2c.  [DEFINITIONS.] For the purposes of this section 
 79.27  and section 124.321, the definitions in this subdivision apply. 
 79.28     (a) "Base year" for fiscal year 1996 means fiscal year 1995.
 79.29  Base year for later fiscal years means the second fiscal year 
 79.30  preceding the fiscal year for which aid will be paid. 
 79.31     (b) "Basic revenue" has the meaning given it in section 
 79.32  124A.22, subdivision 2.  For the purposes of computing basic 
 79.33  revenue pursuant to this section, each child with a disability 
 79.34  shall be counted as prescribed in section 124.17, subdivision 1. 
 79.35     (c) "Average daily membership" has the meaning given it in 
 79.36  section 124.17. 
 80.1      (d) "Program growth factor" means 1.00 for fiscal year 1998 
 80.2   and later. 
 80.3      (e) "Aid percentage factor" means 70 percent for fiscal 
 80.4   year 1996, 80 percent for fiscal year 1997, 90 percent for 
 80.5   fiscal year 1998, and 100 percent for fiscal years 1999 and 
 80.6   later. 
 80.7      Sec. 23.  Minnesota Statutes 1994, section 124.574, is 
 80.8   amended by adding a subdivision to read: 
 80.9      Subd. 2d.  [BASE REVENUE.] The secondary vocational 
 80.10  disabled program base revenue equals the sum of the following 
 80.11  amounts computed using base year data: 
 80.12     (1) 68 percent of the salary of each essential licensed 
 80.13  person who provides direct instructional services to students 
 80.14  employed during that fiscal year for services rendered in that 
 80.15  district's secondary vocational education programs for children 
 80.16  with a disability; 
 80.17     (2) 47 percent of the costs of necessary equipment for 
 80.18  secondary vocational education programs for children with a 
 80.19  disability; 
 80.20     (3) 47 percent of the costs of necessary travel between 
 80.21  instructional sites by secondary vocational education teachers 
 80.22  of children with a disability but not including travel to and 
 80.23  from local, regional, district, state, or national vocational 
 80.24  student organization meetings; 
 80.25     (4) 47 percent of the costs of necessary supplies for 
 80.26  secondary vocational education programs for children with a 
 80.27  disability but not to exceed an average of $47 in any one school 
 80.28  year for each child with a disability receiving these services; 
 80.29     (5) for secondary vocational education programs for 
 80.30  children with disabilities provided by a contract approved by 
 80.31  the commissioner with public, private, or voluntary agencies 
 80.32  other than a Minnesota school district or cooperative center, in 
 80.33  place of programs provided by the district, 52 percent of the 
 80.34  difference between the amount of the contract and the basic 
 80.35  revenue of the district for that pupil for the fraction of the 
 80.36  school day the pupil receives services under the contract; 
 81.1      (6) for secondary vocational education programs for 
 81.2   children with disabilities provided by a contract approved by 
 81.3   the commissioner with public, private, or voluntary agencies 
 81.4   other than a Minnesota school district or cooperative center, 
 81.5   that are supplementary to a full educational program provided by 
 81.6   the school district, 52 percent of the amount of the contract; 
 81.7   and 
 81.8      (7) for a contract approved by the commissioner with 
 81.9   another Minnesota school district or cooperative center for 
 81.10  vocational evaluation services for children with a disability 
 81.11  for children that are not yet enrolled in grade 12, 52 percent 
 81.12  of the amount of the contract. 
 81.13     Sec. 24.  Minnesota Statutes 1994, section 124.574, is 
 81.14  amended by adding a subdivision to read: 
 81.15     Subd. 2e.  [ADJUSTED SECONDARY VOCATIONAL-DISABLED BASE 
 81.16  REVENUE.] For fiscal year 1996 and later, a district's adjusted 
 81.17  secondary vocational-disabled base revenue equals the district's 
 81.18  secondary vocational-disabled base revenue times the ratio of 
 81.19  the district's average daily membership for the current school 
 81.20  year to the district's average daily membership for the base 
 81.21  year. 
 81.22     Sec. 25.  Minnesota Statutes 1994, section 124.574, is 
 81.23  amended by adding a subdivision to read: 
 81.24     Subd. 2f.  [STATE TOTAL SECONDARY VOCATIONAL-DISABLED 
 81.25  REVENUE.] The state total secondary vocational-disabled revenue 
 81.26  for fiscal year 1996 equals $7,720,000.  The state total 
 81.27  secondary vocational-disabled revenue for fiscal year 1997 
 81.28  equals $8,118,000.  The state total secondary 
 81.29  vocational-disabled revenue for later fiscal years equals:  
 81.30     (1) the state total secondary vocational-disabled revenue 
 81.31  for the preceding fiscal year; times 
 81.32     (2) the program growth factor; times 
 81.33     (3) the ratio of the state total average daily membership 
 81.34  for the current fiscal year to the state total average daily 
 81.35  membership for the preceding fiscal year. 
 81.36     Sec. 26.  Minnesota Statutes 1994, section 124.574, is 
 82.1   amended by adding a subdivision to read: 
 82.2      Subd. 2g.  [SCHOOL DISTRICT SECONDARY VOCATIONAL-DISABLED 
 82.3   REVENUE.] A school district's secondary vocational-disabled 
 82.4   revenue for fiscal year 1996 and later equals the state total 
 82.5   secondary vocational-disabled revenue times the ratio of the 
 82.6   district's adjusted secondary vocational-disabled base revenue 
 82.7   to the state total adjusted secondary vocational-disabled base 
 82.8   revenue. 
 82.9      Sec. 27.  Minnesota Statutes 1994, section 124.574, is 
 82.10  amended by adding a subdivision to read: 
 82.11     Subd. 2h.  [SCHOOL DISTRICT SECONDARY VOCATIONAL-DISABLED 
 82.12  AID.] A school district's secondary vocational-disabled aid for 
 82.13  fiscal year 1996 and later equals the district's secondary 
 82.14  vocational-disabled revenue times the aid percentage factor for 
 82.15  that year. 
 82.16     Sec. 28.  Minnesota Statutes 1994, section 124.574, 
 82.17  subdivision 9, is amended to read: 
 82.18     Subd. 9.  [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 
 82.19  INTERMEDIATE DISTRICTS.] For purposes of this section and 
 82.20  section 124.321, a cooperative center or an intermediate 
 82.21  district shall allocate its approved expenditures for secondary 
 82.22  vocational programs for children with a disability among 
 82.23  participating school districts.  Aid for secondary vocational 
 82.24  programs for children with a disability for services provided by 
 82.25  a cooperative or intermediate district shall be paid to the 
 82.26  participating school districts or to a vocational cooperative, 
 82.27  education district, or intermediate district if designated by a 
 82.28  participating school district. 
 82.29     Sec. 29.  Minnesota Statutes 1994, section 125.62, 
 82.30  subdivision 1, is amended to read: 
 82.31     Subdivision 1.  [ESTABLISHMENT.] A grant program is 
 82.32  established to assist American Indian people to become teachers 
 82.33  and to provide additional education for American Indian 
 82.34  teachers.  The state board may award a joint grant to each of 
 82.35  the following:  
 82.36     (1) the Duluth campus of the University of Minnesota and 
 83.1   independent school district No. 709, Duluth; 
 83.2      (2) Bemidji state university and independent school 
 83.3   district No. 38, Red Lake; 
 83.4      (3) Moorhead state university and one of the school 
 83.5   districts located within the White Earth reservation; and 
 83.6      (4) Augsburg college, independent school district No. 625, 
 83.7   St. Paul, and special school district No. 1, Minneapolis. 
 83.8      Sec. 30.  Minnesota Statutes 1994, section 125.62, 
 83.9   subdivision 7, is amended to read: 
 83.10     Subd. 7.  [LOAN FORGIVENESS.] The loan may be forgiven if 
 83.11  the recipient is employed as a teacher, as defined in section 
 83.12  125.12 or 125.17, in an eligible school or program in 
 83.13  Minnesota.  One-fifth One-fourth of the principal of the 
 83.14  outstanding loan amount shall be forgiven for each year of 
 83.15  eligible employment, or a pro rata amount for eligible 
 83.16  employment during part of a school year, part-time employment as 
 83.17  a substitute teacher, or other eligible part-time 
 83.18  teaching.  Loans for $2,500 or less may be forgiven at the rate 
 83.19  of up to $1,250 per year.  The following schools and programs 
 83.20  are eligible for the purposes of loan forgiveness: 
 83.21     (1) a school or program operated by a school district; 
 83.22     (2) a tribal contract school eligible to receive aid 
 83.23  according to section 124.86; 
 83.24     (3) a head start program; 
 83.25     (4) an early childhood family education program; or 
 83.26     (5) a program providing educational services to children 
 83.27  who have not entered kindergarten; or 
 83.28     (6) a program providing educational enrichment services to 
 83.29  American Indian students in grades kindergarten through 12. 
 83.30     If a person has an outstanding loan obtained through this 
 83.31  program, the duty to make payments of principal and interest may 
 83.32  be deferred during any time period the person is enrolled at 
 83.33  least one-half time in an advanced degree program in a field 
 83.34  that leads to employment by a school district.  To defer loan 
 83.35  obligations, the person shall provide written notification to 
 83.36  the state board of education and the recipients of the joint 
 84.1   grant that originally authorized the loan.  Upon approval by the 
 84.2   state board and the joint grant recipients, payments shall be 
 84.3   deferred.  
 84.4      The loan forgiveness program, loan deferral, and procedures 
 84.5   to administer the program shall be approved by the higher 
 84.6   education coordinating board. 
 84.7      Sec. 31.  Minnesota Statutes 1994, section 126.49, is 
 84.8   amended by adding a subdivision to read: 
 84.9      Subd. 2a.  [RESOLUTION OR LETTER.] All persons applying for 
 84.10  a license under this section must submit to the board a 
 84.11  resolution or letter of support signed by an American Indian 
 84.12  tribal government or its designee.  All persons holding a 
 84.13  license under this section on the effective date of this section 
 84.14  must have on file or file with the board a resolution or letter 
 84.15  of support signed by a tribal government or its designee by 
 84.16  January 1, 1996, or the next renewal date of the license 
 84.17  thereafter. 
 84.18     Sec. 32.  Minnesota Statutes 1994, section 127.30, 
 84.19  subdivision 2, is amended to read: 
 84.20     Subd. 2.  (a) A written notice containing the grounds for 
 84.21  suspension, a brief statement of the facts, a description of the 
 84.22  testimony, a readmission plan, and a copy of sections 127.26 to 
 84.23  127.39, shall be personally served upon the pupil at or before 
 84.24  the time the suspension is to take effect, and upon the pupil's 
 84.25  parent or guardian by certified mail within 48 hours of the 
 84.26  conference.  In the event a pupil is suspended without an 
 84.27  informal administrative conference on the grounds that the pupil 
 84.28  will create an immediate and substantial danger to surrounding 
 84.29  persons or property, the written notice shall be served either 
 84.30  personally or by certified mail upon the pupil and the pupil's 
 84.31  parent or guardian within 48 hours of the suspension.  Service 
 84.32  by certified mail is complete upon mailing. 
 84.33     (b) If a custodial parent or guardian of a suspended pupil 
 84.34  has officially filed, during the school year of the suspension, 
 84.35  a telephone number with the principal's office of the pupil's 
 84.36  school, a school official must try at least once to reach or 
 85.1   leave a message for that parent or guardian at that telephone 
 85.2   number before releasing the pupil to begin the suspension. 
 85.3      Sec. 33.  [127.392] [INCARCERATED STUDENTS.] 
 85.4      Notwithstanding sections 127.26 to 127.39, a student 
 85.5   released from a correctional institution or a juvenile services 
 85.6   program may be diverted from the general school population to a 
 85.7   substantive alternative instruction program for up to one year 
 85.8   if the school district, after consultation with the student's 
 85.9   parole officer, determines that the student poses a direct 
 85.10  threat to the safety of students or school personnel.  The 
 85.11  school district shall provide information to the pupil on the 
 85.12  processes available to appeal a decision to be diverted from the 
 85.13  general school program.  
 85.14     Sec. 34.  Laws 1994, chapter 587, article 3, section 19, 
 85.15  subdivision 1, is amended to read: 
 85.16     Subdivision 1.  [SPECIAL EDUCATION AID.] $17,500,000 is 
 85.17  appropriated in fiscal year 1994 from the general fund to the 
 85.18  department of education for special education aid to school 
 85.19  districts.  This appropriation is available until June 30, 
 85.20  1995.  This amount is added to the appropriations for aid for 
 85.21  special education programs contained in Laws 1993, chapter 224, 
 85.22  article 3, section 38, subdivisions 2, 4, 8, 11, and 14.  The 
 85.23  individual appropriations shall be increased by the commissioner 
 85.24  of finance in the amounts determined by the commissioner of 
 85.25  education.  This amount is appropriated to eliminate the fiscal 
 85.26  year 1993 deficiencies and reduce the fiscal year 1994 and 1995 
 85.27  deficiencies in the appropriations in those subdivisions.  The 
 85.28  department must reduce a school district's payable 1995 and 
 85.29  payable 1996 levy limitations by the full amount of the aid 
 85.30  payments made to the school district according to this 
 85.31  subdivision.  This appropriation shall not be included in 
 85.32  determining the amount of a deficiency in the special education 
 85.33  programs for fiscal year 1995 for the purpose of allocating any 
 85.34  excess appropriations to aid or grant programs with insufficient 
 85.35  appropriations as provided in Minnesota Statutes, section 
 85.36  124.14, subdivision 7.  Notwithstanding Minnesota Statutes, 
 86.1   section 124.195, subdivision 10, 100 percent of this 
 86.2   appropriation must be paid in fiscal years 1994 and 1995.  This 
 86.3   appropriation is not to be included in a base budget for future 
 86.4   fiscal years. 
 86.5      Sec. 35.  [HOMESTEAD AND AGRICULTURAL CREDIT ADJUSTMENT.] 
 86.6      (a) For the computation of homestead and agricultural aid 
 86.7   for taxes payable in 1995, the commissioner of revenue shall 
 86.8   reduce a school district's homestead and agricultural aid by an 
 86.9   amount equal to the lesser of:  (1) the amount of the district's 
 86.10  homestead and agricultural aid for calendar year 1994; or (2) an 
 86.11  amount equal to one percent times the district's adjusted net 
 86.12  tax capacity for assessment year 1994. 
 86.13     (b) Prior to the computation of homestead and agricultural 
 86.14  aid for taxes payable in 1996, the commissioner of revenue shall 
 86.15  reduce the school district's homestead and agricultural aid by 
 86.16  an amount equal to the lessor of:  (1) the amount of the 
 86.17  district's homestead and agricultural aid for calendar year 
 86.18  1995; or (2) an amount equal to one percent times the district's 
 86.19  adjusted net tax capacity for assessment year 1994. 
 86.20     (c) Prior to the computation of homestead and agricultural 
 86.21  aid for taxes payable in 1997, the commissioner of revenue shall 
 86.22  reduce a school district's homestead and agricultural aid by an 
 86.23  amount equal to the lesser of:  (1) the amount of the district's 
 86.24  homestead and agricultural aid for calendar year 1996; or (2) an 
 86.25  amount equal to one percent times the district's adjusted net 
 86.26  tax capacity for assessment year 1994. 
 86.27     (d) Prior to the computation of homestead and agricultural 
 86.28  aid for taxes payable in 1998, the commissioner of revenue shall 
 86.29  reduce a school district's homestead and agricultural aid by an 
 86.30  amount equal to the lesser of:  (1) the amount of the district's 
 86.31  homestead and agricultural aid for calendar year 1997; or (2) an 
 86.32  amount equal to one percent times the district's adjusted net 
 86.33  tax capacity for assessment year 1994. 
 86.34     Sec. 36.  [MEXICAN ORIGIN EDUCATION PILOT GRANT PROGRAM.] 
 86.35     Subdivision 1.  [ESTABLISHMENT.] A Mexican origin education 
 86.36  pilot grant program is established to assist school districts 
 87.1   and communities in meeting the educational and culturally 
 87.2   related academic needs of students of Mexican origin. 
 87.3      Subd. 2.  [EXPECTED OUTCOMES.] Grant recipients shall use 
 87.4   the funds for programs designed to improve the school success of 
 87.5   students of Mexican origin.  Grant proceeds may be used for 
 87.6   curriculum and staff development, tutoring, mentoring, parent 
 87.7   involvement, and other programs that are designed to: 
 87.8      (1) improve student achievement and reduce dropout rates; 
 87.9      (2) increase student knowledge and understanding of Mexican 
 87.10  history; 
 87.11     (3) improve instruction by developing the cultural 
 87.12  competence skills of teachers and other staff; and 
 87.13     (4) increase parent involvement in education and the school 
 87.14  community. 
 87.15     Subd. 3.  [GRANT ELIGIBILITY, APPLICATIONS, AND AWARDS.] 
 87.16  The commissioner of education shall prescribe the form and 
 87.17  manner of applications and may award grants to the applicants 
 87.18  likely to meet the outcomes in subdivision 2.  The commissioner 
 87.19  shall give preference to grant proposals that provide 
 87.20  collaboration with community resources. 
 87.21     Sec. 37.  [THIRD PARTY NEUTRALS.] 
 87.22     Money allocated by the department of education in fiscal 
 87.23  year 1995 to the bureau of mediation services to run the 
 87.24  department's mediation program under Minnesota Statutes, section 
 87.25  120.17, subdivision 3b, paragraph (d), must also be made 
 87.26  available in fiscal years 1996 and 1997 to reimburse school 
 87.27  districts for third party neutrals as provided in Minnesota 
 87.28  Statutes, section 120.17, subdivision 3b, paragraph (c). 
 87.29     Sec. 38.  [STATE VOCATIONAL SCHOOL PLANNING PROCESS.] 
 87.30     Subdivision 1.  [PLANNING COMMITTEE.] A planning committee 
 87.31  is established to develop a preliminary plan for a 
 87.32  state-of-the-art vocational high school in Minnesota to serve 
 87.33  the needs of students with special vocational interests and 
 87.34  talents, and to serve as a demonstration site for vocational 
 87.35  education.  The committee shall consist of 21 members.  The 
 87.36  governor, speaker of the house of representatives, and the 
 88.1   majority leader of the senate shall each appoint seven members.  
 88.2   The governor's appointments must include the commissioners of 
 88.3   education and human services or their designees.  Members also 
 88.4   must include potential students and their parents, imaginative 
 88.5   practicing teachers, high school administrators, representatives 
 88.6   of business and labor, and community representatives.  The 
 88.7   committee is subject to Minnesota Statutes, section 15.059. 
 88.8      Subd. 2.  [PURPOSES.] The purposes of the planning 
 88.9   committee are to: 
 88.10     (1) evaluate the need for a vocational high school, 
 88.11  including the needs of Minnesota students for vocational 
 88.12  training and the needs of private sector employers for skilled, 
 88.13  vocationally trained employees; 
 88.14     (2) determine the capacity of Minnesota's secondary schools 
 88.15  to meet this need; 
 88.16     (3) identify the challenges and opportunities for 
 88.17  vocational education; 
 88.18     (4) develop a preliminary plan for a vocational high school 
 88.19  to meet the identified needs; 
 88.20     (5) develop a learning signature for a vocational high 
 88.21  school based on its focus, including educational goals, learning 
 88.22  organization, anticipated learner results, and staffing and 
 88.23  staff development; 
 88.24     (6) describe the anticipated partnerships of the vocational 
 88.25  school with other secondary educational institutions, 
 88.26  post-secondary institutions, business and labor, community 
 88.27  organizations, and students' families; 
 88.28     (7) develop a technology and equipment plan for the 
 88.29  proposed school; and 
 88.30     (8) develop preliminary cost estimates for a vocational 
 88.31  school. 
 88.32     Subd. 3.  [APPOINTMENTS; MEETINGS.] The planning committee 
 88.33  must be appointed by July 1, 1995.  The committee must begin 
 88.34  meeting in July 1995.  At least some of the committee meetings 
 88.35  must be held outside the metropolitan area as defined in 
 88.36  Minnesota Statutes, section 473.121, subdivision 2. 
 89.1      Subd. 4.  [REPORT.] The planning committee shall make a 
 89.2   report of its work to the education committees of the 
 89.3   legislature in February 1996. 
 89.4      Subd. 5.  [STAFF; OFFICE SPACE.] The planning committee may 
 89.5   appoint staff as necessary to assist in its work.  The staff are 
 89.6   members of the unclassified service of the state.  The 
 89.7   commissioner of education shall provide office space for the 
 89.8   committee staff. 
 89.9      Sec. 39.  [REPORT; COMMON DEFINITIONS.] 
 89.10     The department of education and the department of human 
 89.11  services must analyze the current programs, definitions, 
 89.12  assessment procedures, diagnostic practices, and case management 
 89.13  procedures used by the education and human services systems to 
 89.14  provide services for children.  These agencies must report to 
 89.15  the legislature by January 15, 1996, on recommendations that 
 89.16  will allow children to receive services from both systems under 
 89.17  a common set of definitions, procedure, and practices and on 
 89.18  ways to eliminate any duplication of services and programs.  The 
 89.19  report must include any necessary changes in Minnesota Statutes 
 89.20  and Minnesota Rules to implement the recommendations. 
 89.21     Sec. 40.  [GRANTS; OPTIONS PLUS PILOT PROGRAM.] 
 89.22     In fiscal year 1996, the commissioner of education shall 
 89.23  award up to six grants for necessary staff development to 
 89.24  eligible school districts or groups of school districts 
 89.25  authorized to participate in the Options Plus pilot program 
 89.26  according to Minnesota Statutes, section 120.185. 
 89.27     Sec. 41.  [RESTRICTING BEHAVIORAL CRITERIA.] 
 89.28     Within 90 days after the effective date of sections 1 
 89.29  (120.062, subdivision 7), 32 (127.30, subdivision 2), and 33 
 89.30  (127.392), the state board of education must adopt an amendment 
 89.31  to Minnesota Rules, part 3525.1329, so that its definitions and 
 89.32  criteria conform with, but do not exceed, the minimal 
 89.33  requirements of Code of Federal Regulations, title 34, section 
 89.34  300.7, paragraph (b), clause (9), for students having the 
 89.35  disability defined as "serious emotional disturbance." 
 89.36     Sec. 42.  [APPROPRIATIONS.] 
 90.1      Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
 90.2   indicated in this section are appropriated from the general fund 
 90.3   or other named fund to the department of education for the 
 90.4   fiscal years designated. 
 90.5      Subd. 2.  [SPECIAL EDUCATION AID.] For special education 
 90.6   aid according to Minnesota Statutes, section 124.32: 
 90.7        $225,211,000     .....     1996 
 90.8        $270,761,000     .....     1997 
 90.9      The 1996 appropriation includes $28,230,000 for 1995 and 
 90.10  $196,981,000 for 1996.  
 90.11     The 1997 appropriation includes $34,761,000 for 1996 and 
 90.12  $236,000,000 for 1997.  
 90.13     Subd. 3.  [SPECIAL PUPIL AID.] For special education aid 
 90.14  according to Minnesota Statutes, section 124.32, subdivision 6, 
 90.15  for pupils with handicaps placed in residential facilities 
 90.16  within the district boundaries for whom no district of residence 
 90.17  can be determined: 
 90.18       $470,000     .....     1996 
 90.19       $479,000     .....     1997 
 90.20     If the appropriation for either year is insufficient, the 
 90.21  appropriation for the other year is available.  If the 
 90.22  appropriations for both years are insufficient, the 
 90.23  appropriation for special education aid may be used to meet the 
 90.24  special pupil obligations. 
 90.25     Subd. 4.  [SUMMER SPECIAL EDUCATION AID.] For special 
 90.26  education summer program aid according to Minnesota Statutes, 
 90.27  section 124.32, subdivision 10: 
 90.28       $5,078,000     .....     1996
 90.29       $6,084,000     .....     1997 
 90.30     The 1996 appropriation is for 1995 summer programs.  
 90.31     The 1997 appropriation is for 1996 summer programs.  
 90.32     Subd. 5.  [TRAVEL FOR HOME-BASED SERVICES.] For aid for 
 90.33  teacher travel for home-based services according to Minnesota 
 90.34  Statutes, section 124.32, subdivision 2b: 
 90.35       $77,000     .....     1996 
 90.36       $80,000     .....     1997 
 91.1      The 1996 appropriation includes $11,000 for 1995 and 
 91.2   $66,000 for 1996.  
 91.3      The 1997 appropriation includes $11,000 for 1996 and 
 91.4   $69,000 for 1997.  
 91.5      Subd. 6.  [SPECIAL EDUCATION EXCESS COST AID.] For excess 
 91.6   cost aid: 
 91.7        $6,700,000     .....     1996 
 91.8        $12,256,000    .....     1997 
 91.9      The 1996 appropriation includes $760,000 for 1995 and 
 91.10  $5,940,000 for 1996.  
 91.11     The 1997 appropriation includes $1,048,000 for 1996 and 
 91.12  $11,248,000 for 1997. 
 91.13     Subd. 7.  [LIMITED ENGLISH PROFICIENCY PUPILS PROGRAM AID.] 
 91.14  For aid to educational programs for pupils of limited English 
 91.15  proficiency according to Minnesota Statutes, section 124.273: 
 91.16       $8,367,000     .....     1996 
 91.17       $10,904,000    .....     1997 
 91.18     The 1996 appropriation includes $945,000 for 1995 and 
 91.19  $7,422,000 for 1996.  
 91.20     The 1997 appropriation includes $1,309,000 for 1996 and 
 91.21  $9,595,000 for 1997.  
 91.22     Subd. 8.  [SECONDARY VOCATIONAL; STUDENTS WITH 
 91.23  DISABILITIES.] For aid for secondary vocational education for 
 91.24  pupils with disabilities according to Minnesota Statutes, 
 91.25  section 124.574: 
 91.26       $5,184,000     .....     1996 
 91.27       $6,330,000     .....     1997 
 91.28     The 1996 appropriation includes $590,000 for 1995 and 
 91.29  $4,594,000 for 1996.  
 91.30     The 1997 appropriation includes $810,000 for 1996 and 
 91.31  $5,520,000 for 1997.  
 91.32     Subd. 9.  [SPECIAL PROGRAMS EQUALIZATION AID.] For special 
 91.33  education levy equalization aid according to Minnesota Statutes, 
 91.34  section 124.321: 
 91.35       $19,182,000     .....     1996
 91.36       $13,194,000     .....     1997
 92.1      The 1996 appropriation includes $2,584,000 for 1995 and 
 92.2   $16,598,000 for 1996.  
 92.3      The 1997 appropriation includes $2,928,000 for 1996 and 
 92.4   $10,266,000 for 1997. 
 92.5      Subd. 10.  [AMERICAN INDIAN POST-SECONDARY PREPARATION 
 92.6   GRANTS.] For American Indian post-secondary preparation grants 
 92.7   according to Minnesota Statutes, section 124.481: 
 92.8        $857,000     .....     1996
 92.9        $857,000     .....     1997
 92.10     Any balance in the first year does not cancel but is 
 92.11  available in the second year. 
 92.12     Subd. 11.  [AMERICAN INDIAN LANGUAGE AND CULTURE PROGRAMS.] 
 92.13  For grants to American Indian language and culture education 
 92.14  programs according to Minnesota Statutes, section 126.54, 
 92.15  subdivision 1: 
 92.16       $591,000     .....     1996
 92.17       $591,000     .....     1997
 92.18     The 1996 appropriation includes $88,000 for 1995 and 
 92.19  $503,000 for 1996.  
 92.20     The 1997 appropriation includes $88,000 for 1996 and 
 92.21  $503,000 for 1997.  
 92.22     Any balance in the first year does not cancel but is 
 92.23  available in the second year. 
 92.24     Subd. 12.  [AMERICAN INDIAN SCHOLARSHIPS.] For American 
 92.25  Indian scholarships according to Minnesota Statutes, section 
 92.26  124.48: 
 92.27       $1,600,000     .....     1996 
 92.28       $1,600,000     .....     1997 
 92.29     Any balance in the first year does not cancel but is 
 92.30  available in the second year. 
 92.31     Subd. 13.  [AMERICAN INDIAN EDUCATION.] (a) For certain 
 92.32  American Indian education programs in school districts: 
 92.33       $175,000     .....     1996
 92.34       $175,000     .....     1997
 92.35     The 1996 appropriation includes $26,000 for 1995 and 
 92.36  $149,000 for 1996.  
 93.1      The 1997 appropriation includes $26,000 for 1996 and 
 93.2   $149,000 for 1997.  
 93.3      (b) These appropriations are available for expenditure with 
 93.4   the approval of the commissioner of the department of education. 
 93.5      (c) The commissioner must not approve the payment of any 
 93.6   amount to a school district or school under this subdivision 
 93.7   unless that school district or school is in compliance with all 
 93.8   applicable laws of this state. 
 93.9      (d) Up to the following amounts may be distributed to the 
 93.10  following schools and school districts for each fiscal year:  
 93.11  $54,800, Pine Point School; $9,800 to independent school 
 93.12  district No. 166, Cook county; $14,900 to independent school 
 93.13  district No. 432, Mahnomen; $14,200 to independent school 
 93.14  district No. 435, Waubun; $42,200 to independent school district 
 93.15  No. 707, Nett Lake; and $39,100 to independent school district 
 93.16  No. 38, Red Lake.  These amounts must be spent only for the 
 93.17  benefit of American Indian pupils and to meet established state 
 93.18  educational standards or statewide requirements. 
 93.19     (e) Before a district or school can receive money under 
 93.20  this subdivision, the district or school must submit, to the 
 93.21  commissioner, evidence that it has complied with the uniform 
 93.22  financial accounting and reporting standards act, Minnesota 
 93.23  Statutes, sections 121.904 to 121.917. 
 93.24     Subd. 14.  [INDIAN TEACHER PREPARATION GRANTS.] (a) For 
 93.25  joint grants to assist Indian people to become teachers: 
 93.26       $190,000     .....     1996 
 93.27       $190,000     .....     1997 
 93.28     (b) Up to $70,000 each year is for a joint grant to the 
 93.29  University of Minnesota at Duluth and the Duluth school district.
 93.30     (c) Up to $40,000 each year is for a joint grant to each of 
 93.31  the following: 
 93.32     (1) Bemidji state university and the Red Lake school 
 93.33  district; 
 93.34     (2) Moorhead state university and a school district located 
 93.35  within the White Earth reservation; and 
 93.36     (3) Augsburg college, independent school district No. 625, 
 94.1   St. Paul, and the Minneapolis school district. 
 94.2      (d) Money not used for students at one location may be 
 94.3   transferred for use at another location. 
 94.4      (e) Any balance in the first year does not cancel but is 
 94.5   available in the second year. 
 94.6      Subd. 15.  [TRIBAL CONTRACT SCHOOLS.] For tribal contract 
 94.7   school aid according to Minnesota Statutes, section 124.86: 
 94.8        $238,000     .....     1996
 94.9        $361,000     .....     1997
 94.10     The 1996 appropriation includes $19,000 for 1995 and 
 94.11  $219,000 for 1996. 
 94.12     The 1997 appropriation includes $38,000 for 1996 and 
 94.13  $323,000 for 1997. 
 94.14     Subd. 16.  [EARLY CHILDHOOD PROGRAMS AT TRIBAL 
 94.15  SCHOOLS.] For early childhood family education programs at 
 94.16  tribal contract schools: 
 94.17       $68,000     .....     1996 
 94.18       $68,000     .....     1997 
 94.19     Subd. 17.  [SECONDARY VOCATIONAL EDUCATION AID.] For 
 94.20  secondary vocational education aid according to Minnesota 
 94.21  Statutes, section 124.573: 
 94.22       $11,874,000     .....     1996 
 94.23       $11,596,000     .....     1997 
 94.24     The 1996 appropriation includes $2,017,000 for 1995 and 
 94.25  $9,857,000 for 1996.  
 94.26     The 1997 appropriation includes $1,739,000 for 1996 and 
 94.27  $9,857,000 for 1997.  
 94.28     Subd. 18.  [ASSURANCE OF MASTERY.] For assurance of mastery 
 94.29  aid according to Minnesota Statutes, section 124.311: 
 94.30       $13,534,000     .....     1996 
 94.31       $13,751,000     .....     1997 
 94.32     The 1996 appropriation includes $1,979,000 for 1995 and 
 94.33  $11,555,000 for 1996.  
 94.34     The 1997 appropriation includes $2,039,000 for 1996 and 
 94.35  $11,712,000 for 1997. 
 94.36     Subd. 19.  [AMERICAN SIGN LANGUAGE; TEACHER EDUCATION 
 95.1   HEARING.] To assist school districts in educating teachers in 
 95.2   American sign language: 
 95.3        $13,000     .....     1996
 95.4        $12,000     .....     1997
 95.5      Any balance in the first year does not cancel but is 
 95.6   available in the second year. 
 95.7      Subd. 20.  [SCHOOL INTERPRETERS.] For grants for school 
 95.8   interpreters to upgrade their interpreting/transliterating 
 95.9   skills and obtain certification: 
 95.10       $150,000    .....     1996
 95.11     Up to five percent of this amount may be used for 
 95.12  administration of this program. 
 95.13     This appropriation is available until June 30, 1997. 
 95.14     Subd. 21.  [MEXICAN ORIGIN EDUCATION GRANTS.] For grants 
 95.15  for a Mexican origin education pilot grant program: 
 95.16       $50,000     .....     1996
 95.17     This appropriation is available until June 30, 1997. 
 95.18     Subd. 22.  [LAY ADVOCATES.] To pay or reimburse lay 
 95.19  advocates for their time and expense as provided in Minnesota 
 95.20  Statutes, section 120.17: 
 95.21       $10,000     .....     1996
 95.22     This appropriation is available until June 30, 1997. 
 95.23     Subd. 23.  [PART H.] For the department of education's 
 95.24  share of the state's obligation under Part H: 
 95.25       $  -0-       .....     1996 
 95.26       $400,000     .....     1997 
 95.27     This appropriation assumes that the departments of health 
 95.28  and human services will contribute $1,635,000 for the state 
 95.29  share of Part H costs. 
 95.30     Subd. 24.  [VOCATIONAL SCHOOL PLANNING.] For staff costs 
 95.31  and related expenses for the vocational school planning 
 95.32  committee: 
 95.33       $100,000     .....     1996
 95.34     Subd. 25.  [OPTIONS PLUS.] For Options Plus grants under 
 95.35  section 40: 
 95.36       $50,000        .....     1996 
 96.1      This appropriation is available until June 30, 1997.  
 96.2      Recipients are encouraged to use other staff development 
 96.3   resources if available. 
 96.4      Sec. 43.  [REPEALER.] 
 96.5      Minnesota Statutes 1994, sections 124.273, subdivisions 1b 
 96.6   and 2c; 124.32, subdivisions 1b, 1c, 1d, 1f, 2, and 3a; and 
 96.7   124.574, subdivisions 2b, 3, 4, and 4a, are repealed. 
 96.8      Sec. 44.  [EFFECTIVE DATE.] 
 96.9      (a) Sections 34 (special education aid), 35 (homestead and 
 96.10  agricultural credit adjustment), 38 (vocational school 
 96.11  planning), and 42, subdivision 24 (vocational school planning 
 96.12  appropriation), are effective the day following final enactment. 
 96.13     (b) Section 43 (repealer) is effective July 1, 1995. 
 96.14                             ARTICLE 4
 96.15                         COMMUNITY PROGRAMS
 96.16     Section 1.  Minnesota Statutes 1994, section 116J.655, is 
 96.17  amended to read: 
 96.18     116J.655 [YOUTH ENTREPRENEURSHIP EDUCATION PROGRAM.] 
 96.19     The commissioner of trade and economic development shall 
 96.20  establish a youth entrepreneurship education program to improve 
 96.21  the academic and entrepreneurial skills of students and aid in 
 96.22  their transition from school to business creation.  The program 
 96.23  shall strengthen local economies by creating jobs that enable 
 96.24  citizens to remain in their communities and to foster 
 96.25  cooperation among educators, economic development professionals, 
 96.26  business leaders, and representatives of labor.  Assistance 
 96.27  under this section shall be available to new or existing 
 96.28  student-operated or school-operated businesses that have an 
 96.29  educational purpose, and provide service or products for 
 96.30  customers or clients who do not attend or work at the sponsoring 
 96.31  school.  The commissioner may require an equal local match for 
 96.32  assistance under this section up to the maximum grant amount of 
 96.33  $20,000. 
 96.34     Sec. 2.  Minnesota Statutes 1994, section 121.702, is 
 96.35  amended by adding a subdivision to read: 
 96.36     Subd. 10.  [COUNCIL.] "Council" means the governor's 
 97.1   workforce development council. 
 97.2      Sec. 3.  Minnesota Statutes 1994, section 121.705, is 
 97.3   amended to read: 
 97.4      121.705 [YOUTH WORKS GRANTS.] 
 97.5      Subdivision 1.  [APPLICATION.] An eligible organization 
 97.6   interested in receiving a grant under sections 121.704 to 
 97.7   121.709 may prepare and submit to the commission and beginning 
 97.8   January 1, 1997, the council an application that complies with 
 97.9   section 121.706. 
 97.10     Subd. 2.  [GRANT AUTHORITY.] The commission and beginning 
 97.11  January 1, 1997, the council shall use any state appropriation 
 97.12  and any available federal funds, including any grant received 
 97.13  under federal law, to award grants to establish programs for 
 97.14  youth works meeting the requirements of section 121.706.  At 
 97.15  least one grant each must be available for a metropolitan 
 97.16  proposal, a rural proposal, and a statewide proposal.  If a 
 97.17  portion of the suburban metropolitan area is not included in the 
 97.18  metropolitan grant proposal, the statewide grant proposal must 
 97.19  incorporate at least one suburban metropolitan area.  In 
 97.20  awarding grants, the commission and beginning January 1, 1997 
 97.21  the council may select at least one residential proposal and one 
 97.22  nonresidential proposal, provided the proposals meet or exceed 
 97.23  the criteria in section 121.706. 
 97.24     Sec. 4.  Minnesota Statutes 1994, section 121.706, is 
 97.25  amended to read: 
 97.26     121.706 [GRANT APPLICATIONS.] 
 97.27     Subdivision 1.  [APPLICATIONS REQUIRED.] An organization 
 97.28  seeking federal or state grant money under sections 121.704 to 
 97.29  121.709 shall prepare and submit to the commission and beginning 
 97.30  January 1, 1997, the council an application that meets the 
 97.31  requirements of this section.  The commission and beginning 
 97.32  January 1, 1997, the council shall develop, and the applying 
 97.33  organizations shall comply with, the form and manner of the 
 97.34  application. 
 97.35     Subd. 2.  [APPLICATION CONTENT.] An applicant on its 
 97.36  application shall: 
 98.1      (1) propose a program to provide participants the 
 98.2   opportunity to perform community service to meet specific unmet 
 98.3   community needs, and participate in classroom, work-based, and 
 98.4   service learning; 
 98.5      (2) assess the community's unmet educational, human, 
 98.6   environmental, and public safety needs, the resources and 
 98.7   programs available for meeting those needs, and how young people 
 98.8   participated in assessing community needs; 
 98.9      (3) describe the educational component of the program, 
 98.10  including classroom hours per week, classroom time for 
 98.11  participants to reflect on the program experience, and 
 98.12  anticipated academic outcomes related to the service experience; 
 98.13     (4) describe the work to be performed, the ratio of youth 
 98.14  participants to crew leaders and mentors, and the expectations 
 98.15  and qualifications for crew leaders and mentors; 
 98.16     (5) describe local funds or resources available to meet the 
 98.17  match requirements of section 121.709; 
 98.18     (6) describe any funds available for the program from 
 98.19  sources other than the requested grant; 
 98.20     (7) describe any agreements with local businesses to 
 98.21  provide participants with work-learning opportunities and 
 98.22  mentors; 
 98.23     (8) describe any agreement with local post-secondary 
 98.24  educational institutions to offer participants course credits 
 98.25  for their community service learning experience; 
 98.26     (9) describe any agreement with a local high school or an 
 98.27  alternative learning center to provide remedial education, 
 98.28  credit for community service work and work-based learning, or 
 98.29  graduate equivalency degrees; 
 98.30     (10) describe any pay for service or other program delivery 
 98.31  mechanism that will provide reimbursement for benefits conferred 
 98.32  or recover costs of services participants perform; 
 98.33     (11) describe how local resources will be used to provide 
 98.34  support and assistance for participants to encourage them to 
 98.35  continue with the program, fulfill the terms of the contract, 
 98.36  and remain eligible for any postservice benefit; 
 99.1      (12) describe the arbitration mechanism for dispute 
 99.2   resolution required under section 121.707, subdivision 2; 
 99.3      (13) describe involvement of community leaders in 
 99.4   developing broad-based support for the program; 
 99.5      (14) describe the consultation and sign-off process to be 
 99.6   used with any local labor organization representing employees in 
 99.7   the area engaged in work similar to that proposed for the 
 99.8   program to ensure that no current employees or available 
 99.9   employment positions will be displaced by program participants; 
 99.10     (15) certify to the commission and beginning January 1, 
 99.11  1997, the council and to any certified bargaining 
 99.12  representatives representing employees of the applying 
 99.13  organization that the project will not decrease employment 
 99.14  opportunities that would be available without the project; will 
 99.15  not displace current employees including any partial 
 99.16  displacement in the form of reduced hours of work other than 
 99.17  overtime, wages, employment benefits, or regular seasonal work; 
 99.18  will not impair existing labor agreements; and will not result 
 99.19  in the substitution of project funding for preexisting funds or 
 99.20  sources of funds for ongoing work; 
 99.21     (16) describe the length of the required service period, 
 99.22  which may not be less than six months or more than two years, a 
 99.23  method to incorporate a participant's readiness to advance or 
 99.24  need for postservice financial assistance into individual 
 99.25  service requirements, and any opportunity for participating part 
 99.26  time or in another program; 
 99.27     (17) describe a program evaluation plan that contains 
 99.28  cost-effectiveness measures, measures of participant success 
 99.29  including educational accomplishments, job placements, community 
 99.30  contributions, and ongoing volunteer activities, outcome 
 99.31  measures based on a preprogram and postprogram survey of 
 99.32  community rates of arrest, incarceration, teenage pregnancy, and 
 99.33  other indicators of youth in trouble, and a list of local 
 99.34  resources dedicated to reducing these rates; 
 99.35     (18) describe a three-year financial plan for maintaining 
 99.36  the program;