1.1                          A bill for an act 
  1.2             relating to education; prekindergarten through grade 
  1.3             12; providing for general and uniform 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; technical and 
  1.8             conforming amendments; budget reserve; targeted needs 
  1.9             revenue; establishing a department of children, 
  1.10            families, and learning; providing for penalties; 
  1.11            appropriating money; amending Minnesota Statutes 1994, 
  1.12            sections 13.43, subdivision 2; 16A.152, subdivisions 
  1.13            2, 4, and by adding a subdivision; 16B.465; 43A.316, 
  1.14            subdivision 2; 62L.08, subdivision 7a; 116J.655; 
  1.15            120.064; 120.101, subdivision 5c, and by adding a 
  1.16            subdivision; 120.17, subdivisions 3a, 3b, and by 
  1.17            adding a subdivision; 120.74, subdivision 1; 120.75, 
  1.18            subdivision 1; 121.11, subdivision 7c; 121.207, 
  1.19            subdivisions 2 and 3; 121.702, by adding a 
  1.20            subdivision; 121.705; 121.706; 121.707, subdivisions 
  1.21            2, 3, 4, 6, and 7; 121.708; 121.709; 121.710; 
  1.22            121.8355, subdivision 2; 121.885, subdivisions 1 and 
  1.23            4; 121.904, subdivisions 4a and 4c; 121.912, 
  1.24            subdivisions 1b and 6; 121.931; 121.932; 121.933, 
  1.25            subdivision 1; 121.935, subdivision 1; 122.21, 
  1.26            subdivision 4; 122.532, subdivision 3a; 122.895, 
  1.27            subdivisions 1, 8, and 9; 122.91, subdivisions 1, 2, 
  1.28            and 2a; 122.92, subdivision 1; 122.93, subdivision 1; 
  1.29            122.94, subdivision 1; 123.34, by adding a 
  1.30            subdivision; 123.35, subdivision 19b; 123.351, 
  1.31            subdivisions 1, 3, 4, and 5; 123.3514, subdivisions 
  1.32            4d, 7, 8, and by adding a subdivision; 123.70, 
  1.33            subdivision 8; 123.7991, subdivisions 2 and 3; 
  1.34            123.805, subdivisions 1 and 2; 124.06; 124.14, by 
  1.35            adding a subdivision; 124.155, subdivision 2; 124.17, 
  1.36            subdivisions 1, 2f, and by adding subdivisions; 
  1.37            124.193; 124.195, subdivision 10, and by adding 
  1.38            subdivisions; 124.2139; 124.214, subdivisions 2 and 3; 
  1.39            124.223, subdivisions 1, 7, and 8; 124.225, 
  1.40            subdivisions 1, 3a, 7b, 7d, 7f, 8a, and 8m; 124.226, 
  1.41            subdivisions 1 and 3; 124.243, subdivision 2; 124.244, 
  1.42            subdivision 1; 124.2445; 124.2455; 124.261, 
  1.43            subdivision 1; 124.2711, subdivision 2a; 124.2713, 
  1.44            subdivision 6; 124.2725, subdivisions 1, 3, 4, and 15; 
  1.45            124.2726, subdivisions 1, 2, and 4; 124.2728, 
  1.46            subdivision 1; 124.273, by adding subdivisions; 
  2.1             124.32, subdivisions 10 and 12; 124.321, subdivisions 
  2.2             1 and 2; 124.322; 124.323, subdivisions 1, 2, and by 
  2.3             adding a subdivision; 124.573, subdivision 2e; 
  2.4             124.574, subdivisions 7, 9, and by adding 
  2.5             subdivisions; 124.83, subdivision 4; 124.84, 
  2.6             subdivision 3; 124.91, subdivision 5; 124.916, 
  2.7             subdivision 2; 124.918, subdivisions 1 and 2; 124.95, 
  2.8             subdivisions 2, 4, and 6; 124.961; 124A.02, 
  2.9             subdivision 16; 124A.03, subdivisions 1g, 1h, and 2; 
  2.10            124A.0311, subdivision 4; 124A.22, subdivisions 1, 2, 
  2.11            3, 4, 4a, 4b, 8a, 9, and by adding subdivisions; 
  2.12            124A.225, subdivision 2; 124A.23, subdivisions 1 and 
  2.13            4; 124A.24; 124A.29, subdivision 1; 124C.07; 124C.08, 
  2.14            subdivision 2; 124C.45, subdivision 1; 124C.46, 
  2.15            subdivision 2; 124C.48, subdivision 1; 124C.60, 
  2.16            subdivision 1; 125.12, subdivision 3; 125.62, 
  2.17            subdivisions 1 and 7; 125.623, subdivision 2; 126.031, 
  2.18            subdivision 1; 126.15, subdivision 2; 126.22, 
  2.19            subdivisions 2 and 3; 126.49, by adding a subdivision; 
  2.20            126.666, subdivision 2; 126.70; 126.78, subdivision 2; 
  2.21            126A.01; 126A.02, subdivision 2; 126B.01; 126B.03, 
  2.22            subdivisions 2 and 3; 127.40; 127.41; 127.42; 128A.02, 
  2.23            subdivisions 1, 3, 5, and by adding a subdivision; 
  2.24            128A.021; 128A.022, subdivisions 1 and 6; 128A.024, 
  2.25            subdivision 4; 128A.025, subdivisions 1 and 2; 
  2.26            128A.026; 128A.05, subdivisions 1 and 2; 128B.08; 
  2.27            128B.10, subdivision 1; 134.155; 134.34, subdivision 
  2.28            4a; 134.351, subdivision 4; 169.01, subdivision 6; 
  2.29            169.21, subdivision 2; 169.444, subdivision 2; 
  2.30            169.4502, subdivision 4; 169.4503, by adding a 
  2.31            subdivision; 169.451, by adding a subdivision; 
  2.32            169.452; 169.454, subdivision 5, and by adding a 
  2.33            subdivision; 171.01, subdivision 21; 171.18, 
  2.34            subdivision 1; 171.321, subdivisions 3, 4, and 5; 
  2.35            171.3215, subdivisions 1, 2, and 3; 237.065; 256F.13, 
  2.36            subdivision 1; 275.065, subdivision 1; 469.1831, 
  2.37            subdivision 4; 631.40, subdivision 1a; Laws 1965, 
  2.38            chapter 705, section 1, subdivisions 3 and 4; Laws 
  2.39            1992, chapter 499, article 11, section 9, as amended; 
  2.40            Laws 1993, chapter 224, articles 8, section 21, 
  2.41            subdivision 1; 12, sections 32, as amended, 39, and 
  2.42            41; Laws 1994, chapters 587, article 3, section 19, 
  2.43            subdivision 1; 647, articles 1, section 36; 3, section 
  2.44            25; and 7, section 15; proposing coding for new law in 
  2.45            Minnesota Statutes, chapters 120; 123; 124; 124C; 126; 
  2.46            126B; 127; 134; 136D; 145; 169; 604A; proposing coding 
  2.47            for new law as Minnesota Statutes, chapter 119A; 
  2.48            repealing Minnesota Statutes 1994, sections 3.198; 
  2.49            3.873; 121.602, subdivision 5; 121.702, subdivision 9; 
  2.50            121.703; 121.912, subdivision 8; 121.93; 121.936; 
  2.51            123.58; 124.17, subdivision 1b; 124.243; 124.244; 
  2.52            124.2714; 124.273, subdivisions 1b and 2c; 124.32, 
  2.53            subdivisions 1b, 1c, 1d, 1f, 2, and 3a; 124.574, 
  2.54            subdivisions 2b, 3, 4, and 4a; 124.912, subdivision 8; 
  2.55            124.962; 124A.04, subdivision 1; 124A.26; 124A.27, 
  2.56            subdivision 11; 125.138, subdivisions 6, 7, 8, 9, 10, 
  2.57            and 11; 126.019; 126B.02; 126B.03, subdivision 1; 
  2.58            126B.04; 126B.05; 128A.02, subdivisions 2 and 4; 
  2.59            128A.03; Laws 1992, chapter 499, article 7, section 
  2.60            27; and Laws 1993, First Special Session chapter 2, 
  2.61            article 5, sections 1; and 2, as amended. 
  2.62  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.63                             ARTICLE 1 
  2.64                    GENERAL AND UNIFORM REVENUE 
  2.65     Section 1.  Minnesota Statutes 1994, section 121.904, 
  2.66  subdivision 4a, is amended to read: 
  3.1      Subd. 4a.  [LEVY RECOGNITION.] (a) "School district tax 
  3.2   settlement revenue" means the current, delinquent, and 
  3.3   manufactured home property tax receipts collected by the county 
  3.4   and distributed to the school district, including distributions 
  3.5   made pursuant to section 279.37, subdivision 7, and excluding 
  3.6   the amount levied pursuant to section 124.914, subdivision 1. 
  3.7      (b) In June of each year, the school district shall 
  3.8   recognize as revenue, in the fund for which the levy was made, 
  3.9   the lesser of:  
  3.10     (1) the May, June, and July school district tax settlement 
  3.11  revenue received in that calendar year; or 
  3.12     (2) the sum of the state aids and credits enumerated in 
  3.13  section 124.155, subdivision 2, which are for the fiscal year 
  3.14  payable in that fiscal year plus an amount equal to the levy 
  3.15  recognized as revenue in June of the prior year plus 37.4 48 
  3.16  percent for fiscal year 1994 1996 and thereafter of the amount 
  3.17  of the levy certified in the prior calendar year according to 
  3.18  section 124A.03, subdivision 2, plus or minus auditor's 
  3.19  adjustments, not including levy portions that are assumed by the 
  3.20  state; or 
  3.21     (3) 37.4 48 percent for fiscal year 1994 1996 and 
  3.22  thereafter of the amount of the levy certified in the prior 
  3.23  calendar year, plus or minus auditor's adjustments, not 
  3.24  including levy portions that are assumed by the state, which 
  3.25  remains after subtracting, by fund, the amounts levied for the 
  3.26  following purposes:  
  3.27     (i) reducing or eliminating projected deficits in the 
  3.28  reserved fund balance accounts for unemployment insurance and 
  3.29  bus purchases; 
  3.30     (ii) statutory operating debt pursuant to section 124.914, 
  3.31  subdivision 1; 
  3.32     (iii) retirement and severance pay pursuant to sections 
  3.33  122.531, subdivision 9, 124.2725, subdivision 15, 124.4945, 
  3.34  124.912, subdivision 1, and 124.916, subdivision 3, and Laws 
  3.35  1975, chapter 261, section 4; 
  3.36     (iv) amounts levied for bonds issued and interest thereon, 
  4.1   amounts levied for debt service loans and capital loans, amounts 
  4.2   levied for down payments under section 124.82, subdivision 3, 
  4.3   and amounts levied pursuant to section 136C.411; and 
  4.4      (v) amounts levied under section 124.755.  
  4.5      (c) In July of each year, the school district shall 
  4.6   recognize as revenue that portion of the school district tax 
  4.7   settlement revenue received in that calendar year and not 
  4.8   recognized as revenue for the previous fiscal year pursuant to 
  4.9   clause (b).  
  4.10     (d) All other school district tax settlement revenue shall 
  4.11  be recognized as revenue in the fiscal year of the settlement. 
  4.12  Portions of the school district levy assumed by the state, 
  4.13  including prior year adjustments and the amount to fund the 
  4.14  school portion of the reimbursement made pursuant to section 
  4.15  273.425, shall be recognized as revenue in the fiscal year 
  4.16  beginning in the calendar year for which the levy is payable. 
  4.17     Sec. 2.  Minnesota Statutes 1994, section 121.904, 
  4.18  subdivision 4c, is amended to read: 
  4.19     Subd. 4c.  [PROPERTY TAX SHIFT REDUCTION CHANGE IN LEVY 
  4.20  RECOGNITION PERCENT.] (a) Money appropriated under section 
  4.21  16A.152, subdivision 2, must be used to reduce the levy 
  4.22  recognition percent specified in subdivision 4a, clauses (b)(2) 
  4.23  and (b)(3), for taxes payable in the succeeding calendar year.  
  4.24     (b) The levy recognition percent shall equal the result of 
  4.25  the following computation:  the current levy recognition 
  4.26  percent, times the ratio of 
  4.27     (1) the statewide total amount of levy recognized in June 
  4.28  of the year in which the taxes are payable pursuant to 
  4.29  subdivision 4a, clause (b), excluding those levies that are 
  4.30  shifted for revenue recognition but are not included in the 
  4.31  computation of the adjustment to aids under section 124.155, 
  4.32  subdivision 1, reduced by the difference between the amount of 
  4.33  money appropriated under section 16A.152, subdivision 2, and the 
  4.34  amount required for the adjustment payment under clause (d), to 
  4.35     (2) the statewide total amount of the levy recognized in 
  4.36  June of the year in which the taxes are payable pursuant to 
  5.1   subdivision 4a, clause (b), excluding those levies that are 
  5.2   shifted for revenue recognition but are not included in the 
  5.3   computation of the adjustment to aids under section 124.155, 
  5.4   subdivision 1.  
  5.5      The result shall be rounded up to the nearest one-tenth of 
  5.6   a percent.  However, in no case shall the levy recognition 
  5.7   percent be reduced below zero or increased above the current 
  5.8   levy recognition percent.  
  5.9      (c) The commissioner of finance must certify to the 
  5.10  commissioner of education the levy recognition percent computed 
  5.11  under this subdivision by January 5 of each year.  The 
  5.12  commissioner of education must notify school districts of a 
  5.13  change in the levy recognition percent by January 15. 
  5.14     (d) For fiscal years 1994 and 1995, When the levy 
  5.15  recognition percent is increased or decreased as provided in 
  5.16  this subdivision, a special aid adjustment shall be made to each 
  5.17  school district with an operating referendum levy:  
  5.18     (i) When the levy recognition percent is increased from the 
  5.19  prior fiscal year, the commissioner of education shall calculate 
  5.20  the difference between (1) the amount of the levy under section 
  5.21  124A.03, that is recognized as revenue for the current fiscal 
  5.22  year according to subdivision 4a; and (2) the amount of the 
  5.23  levy, under section 124A.03, that would have been recognized as 
  5.24  revenue for the current fiscal year had the percentage according 
  5.25  to subdivision 4a, not been increased.  The commissioner shall 
  5.26  reduce other aids due the district by the amount of the 
  5.27  difference.  This aid reduction shall be in addition to the aid 
  5.28  reduction required because of the increase pursuant to this 
  5.29  subdivision of the levy recognition percent.  
  5.30     (ii) When the levy recognition percent is reduced as 
  5.31  provided in this subdivision from the prior fiscal year, a 
  5.32  special adjustment payment shall be made to each school district 
  5.33  with an operating referendum levy that received an aid reduction 
  5.34  under Laws 1991, chapter 265, article 1, section 31, or Laws 
  5.35  1992, chapter 499, article 1, section 22 when the levy 
  5.36  recognition percent was last increased.  The special adjustment 
  6.1   payment shall be in addition to the additional payments required 
  6.2   because of the reduction pursuant to this subdivision of the 
  6.3   levy recognition percent.  The amount of the special adjustment 
  6.4   payment shall be computed by the commissioner of education such 
  6.5   that any remaining portion of the aid reduction these districts 
  6.6   received that has not been repaid is repaid on a proportionate 
  6.7   basis as the levy recognition percent is reduced from 50 percent 
  6.8   to 31 percent.  The special adjustment payment must be included 
  6.9   in the state aid payments to school districts according to the 
  6.10  schedule specified in section 124.195, subdivision 3.  An 
  6.11  additional adjustment shall be made on June 30, 1995, for the 
  6.12  final payment otherwise due July 1, 1995, under Minnesota 
  6.13  Statutes 1992, section 136C.36. 
  6.14     (e) The commissioner of finance shall transfer from the 
  6.15  general fund to the education aids appropriations specified by 
  6.16  the commissioner of education, the amounts needed to finance the 
  6.17  additional payments required because of the reduction pursuant 
  6.18  to this subdivision of the levy recognition percent.  Payments 
  6.19  to a school district of additional state aids resulting from a 
  6.20  reduction in the levy recognition percent must be included in 
  6.21  the cash metering of payments made according to section 124.195 
  6.22  after January 15, and must be paid in a manner consistent with 
  6.23  the percent specified in that section. 
  6.24     Sec. 3.  Minnesota Statutes 1994, section 122.532, 
  6.25  subdivision 3a, is amended to read: 
  6.26     Subd. 3a.  [INTERIM CONTRACTUAL AGREEMENTS.] (a) Until a 
  6.27  successor contract is executed between the new school board and 
  6.28  the exclusive representative of the teachers of the new 
  6.29  district, the school boards of both districts and the exclusive 
  6.30  representatives of the teachers of both districts may agree: 
  6.31     (1) to comply with the contract of either district with 
  6.32  respect to all of the teachers assigned to the new district; or 
  6.33     (2) that each of the contracts shall apply to the teachers 
  6.34  previously subject to the respective contract.  
  6.35     (b) In the absence of an agreement according to paragraph 
  6.36  (a), the following shall apply: 
  7.1      (1) if the effective date is July 1 of an even-numbered 
  7.2   year, each of the contracts shall apply to the teachers 
  7.3   previously subject to the respective contract and shall be 
  7.4   binding on the new school board; or 
  7.5      (2) if the effective date is July 1 of an odd-numbered 
  7.6   year, the contract of the district that previously employed the 
  7.7   largest proportion of teachers assigned to the new district 
  7.8   applies to all of the teachers assigned to the new district and 
  7.9   shall be binding on the new school board.  The application of 
  7.10  this section shall not result in a reduction in a teacher's 
  7.11  basic salary, payments for cocurricular or extracurricular 
  7.12  assignments, district contributions toward insurance coverages 
  7.13  or tax-sheltered annuities, leaves of absence, or severance pay 
  7.14  until a successor contract is executed between the new school 
  7.15  board and the exclusive representative. 
  7.16     Sec. 4.  Minnesota Statutes 1994, section 124.06, is 
  7.17  amended to read: 
  7.18     124.06 [INSUFFICIENT FUNDS TO PAY ORDERS.] 
  7.19     (a) In the event that a district or a cooperative unit 
  7.20  defined in section 123.35, subdivision 19b, has insufficient 
  7.21  funds to pay its usual lawful current obligations, subject to 
  7.22  section 471.69, the board may enter into agreements with banks 
  7.23  or any person to take its orders at any rate of interest not to 
  7.24  exceed six percent per annum.  Any order drawn after having been 
  7.25  presented to the treasurer for payment and not paid for want of 
  7.26  funds shall be endorsed by the treasurer by putting on the back 
  7.27  thereof the words "not paid for want of funds," giving the date 
  7.28  of endorsement and signed by the treasurer.  A record of such 
  7.29  presentment, nonpayment and endorsement shall be made by the 
  7.30  treasurer.  Every such order shall bear interest at the rate of 
  7.31  not to exceed six percent per annum from the date of such 
  7.32  presentment.  The treasurer shall serve a written notice upon 
  7.33  the payee or the payee's assignee, personally, or by mail, when 
  7.34  the treasurer is prepared to pay such orders; such notice may be 
  7.35  directed to the payee or the payee's assignee at the address 
  7.36  given in writing by such payee or assignee to such treasurer, at 
  8.1   any time prior to the service of such notice.  No order shall 
  8.2   draw any interest if such address is not given when the same is 
  8.3   unknown to the treasurer, and no order shall draw any interest 
  8.4   after the service of such notice.  
  8.5      (b) A district may enter, subject to section 471.69, into a 
  8.6   line of credit agreement with a financial institution.  The 
  8.7   amount of credit available must not exceed 95 percent of average 
  8.8   expenditure per month of operating expenditures in the previous 
  8.9   fiscal year.  Any amount advanced must be repaid no later than 
  8.10  45 days after the day of advancement. 
  8.11     Sec. 5.  Minnesota Statutes 1994, section 124.155, 
  8.12  subdivision 2, is amended to read: 
  8.13     Subd. 2.  [ADJUSTMENT TO AIDS.] (a) The amount specified in 
  8.14  subdivision 1 shall be used to adjust the following state aids 
  8.15  and credits in the order listed: 
  8.16     (1) general education aid authorized in sections 124A.23 
  8.17  and 124B.20; 
  8.18     (2) secondary vocational aid authorized in section 124.573; 
  8.19     (3) special education aid authorized in section 124.32; 
  8.20     (4) secondary vocational aid for children with a disability 
  8.21  authorized in section 124.574; 
  8.22     (5) aid for pupils of limited English proficiency 
  8.23  authorized in section 124.273; 
  8.24     (6) transportation aid authorized in section 124.225; 
  8.25     (7) community education programs aid authorized in section 
  8.26  124.2713; 
  8.27     (8) adult education aid authorized in section 124.26; 
  8.28     (9) early childhood family education aid authorized in 
  8.29  section 124.2711; 
  8.30     (10) capital expenditure aid authorized in sections 
  8.31  124.243, 124.244, and 124.83; 
  8.32     (11) school district cooperation aid authorized in section 
  8.33  124.2727; 
  8.34     (12) assurance of mastery aid according to section 124.311; 
  8.35     (13) homestead and agricultural credit aid, disparity 
  8.36  credit and aid, and changes to credits for prior year 
  9.1   adjustments according to section 273.1398, subdivisions 2, 3, 4, 
  9.2   and 7; 
  9.3      (14) attached machinery aid authorized in section 273.138, 
  9.4   subdivision 3; and 
  9.5      (15) alternative delivery aid authorized in section 
  9.6   124.322; 
  9.7      (16) special education equalization aid authorized in 
  9.8   section 124.321; 
  9.9      (17) special education excess cost aid authorized in 
  9.10  section 124.323; 
  9.11     (18) learning readiness aid authorized in section 124.2615; 
  9.12     (19) cooperation-combination aid authorized in section 
  9.13  124.2725; and 
  9.14     (20) district cooperation revenue aid authorized in section 
  9.15  124.2727. 
  9.16     (b) The commissioner of education shall schedule the timing 
  9.17  of the adjustments to state aids and credits specified in 
  9.18  subdivision 1, as close to the end of the fiscal year as 
  9.19  possible. 
  9.20     Sec. 6.  Minnesota Statutes 1994, section 124.17, 
  9.21  subdivision 1, is amended to read: 
  9.22     Subdivision 1.  [PUPIL UNIT.] Pupil units for each resident 
  9.23  pupil in average daily membership shall be counted according to 
  9.24  this subdivision.  
  9.25     (a) A prekindergarten pupil with a disability who is 
  9.26  enrolled for the entire fiscal year in a program approved by the 
  9.27  commissioner and has an individual education plan that requires 
  9.28  up to 437 hours of assessment and education services in the 
  9.29  fiscal year is counted as one-half of a pupil unit.  If the plan 
  9.30  requires more than 437 hours of assessment and education 
  9.31  services, the pupil is counted as the ratio of the number of 
  9.32  hours of assessment and education service to 875 825 with a 
  9.33  minimum of 0.28, but not more than one. 
  9.34     (b) A prekindergarten pupil with a disability who is 
  9.35  enrolled for less than the entire fiscal year in a program 
  9.36  approved by the commissioner is counted as the greater of: 
 10.1      (1) one-half times the ratio of the number of instructional 
 10.2   days from the date the pupil is enrolled to the date the pupil 
 10.3   withdraws to the number of instructional days in the school 
 10.4   year; or 
 10.5      (2) the ratio of the number of hours of assessment and 
 10.6   education service required in the fiscal year by the pupil's 
 10.7   individual education program plan to 875, but not more than one. 
 10.8      (c) A prekindergarten pupil who is assessed but determined 
 10.9   not to be handicapped is counted as the ratio of the number of 
 10.10  hours of assessment service to 875 825.  
 10.11     (d) (c) A kindergarten pupil with a disability who is 
 10.12  enrolled in a program approved by the commissioner is counted as 
 10.13  the ratio of the number of hours of assessment and education 
 10.14  services required in the fiscal year by the pupil's individual 
 10.15  education program plan to 875, but not more than one. 
 10.16     (e) (d) A kindergarten pupil who is not included in 
 10.17  paragraph (d) (c) is counted as .515 of a pupil unit for fiscal 
 10.18  year 1994 and .53 of a pupil unit for fiscal year 1995 and 
 10.19  thereafter. 
 10.20     (f) (e) A pupil who is in any of grades 1 to 6 is counted 
 10.21  as 1.03 pupil units for fiscal year 1994 and 1.06 pupil units 
 10.22  for fiscal year 1995 and thereafter. 
 10.23     (g) (f) A pupil who is in any of grades 7 to 12 is counted 
 10.24  as 1.3 pupil units.  
 10.25     (h) (g) A pupil who is in the post-secondary enrollment 
 10.26  options program is counted as 1.3 pupil units. 
 10.27     Sec. 7.  Minnesota Statutes 1994, section 124.17, is 
 10.28  amended by adding a subdivision to read: 
 10.29     Subd. 1f.  [AFDC ENROLLMENT OPTIONS EXCEPTION.] 
 10.30  Notwithstanding subdivision 1d, AFDC pupil units for AFDC pupils 
 10.31  transferring between a school district with a desegregation plan 
 10.32  and another school district under sections 120.062, 120.075 to 
 10.33  120.0752, 124C.45 to 124C.48, and 126.22 shall be computed using 
 10.34  the AFDC concentration percentage computed for the pupil's 
 10.35  district of residence. 
 10.36     Sec. 8.  Minnesota Statutes 1994, section 124.17, is 
 11.1   amended by adding a subdivision to read: 
 11.2      Subd. 1g.  [FUND BALANCE PUPIL UNITS.] Fund balance pupil 
 11.3   units must be computed separately for kindergarten pupils, 
 11.4   elementary pupils in grades 1 to 6, and secondary pupils in 
 11.5   grades 7 to 12.  Total fund balance pupil units means the sum of 
 11.6   kindergarten, elementary, and secondary fund balance pupil 
 11.7   units.  Fund balance pupil units for each category means the 
 11.8   number of resident pupil units in average daily membership, 
 11.9   including shared time pupil units, according to section 124A.02, 
 11.10  subdivision 20, plus 
 11.11     (1) pupils attending the district for which general 
 11.12  education aid adjustments are made according to section 
 11.13  124A.036, subdivision 5; minus 
 11.14     (2) the sum of the resident pupils attending other 
 11.15  districts for which general education aid adjustments are made 
 11.16  according to section 124A.036, subdivision 5, plus pupils for 
 11.17  whom payment is made according to section 126.22, subdivision 8, 
 11.18  or 126.23. 
 11.19     Sec. 9.  Minnesota Statutes 1994, section 124.17, 
 11.20  subdivision 2f, is amended to read: 
 11.21     Subd. 2f.  [PSEO PUPILS.] The average daily membership for 
 11.22  a student pupil participating in the post-secondary enrollment 
 11.23  options program equals the lesser of 
 11.24     (1) (a) 1.00, or 
 11.25     (2) (b) the greater of 
 11.26     (i) (1) .12, or 
 11.27     (ii) (2) the ratio of (i) the sum of the number of 
 11.28  instructional hours the student pupil is enrolled in the 
 11.29  secondary school to the product of the number of days required 
 11.30  in section 120.101, subdivision 5b, times the minimum length of 
 11.31  day required in Minnesota Rules, part 3500.1500, subpart 
 11.32  1 during quarters, trimesters, or semesters during which the 
 11.33  pupil participates in PSEO, and hours enrolled in the secondary 
 11.34  school during the remainder of the school year, to (ii) the 
 11.35  actual number of instructional days in the school year times the 
 11.36  length of day in the school. 
 12.1      Sec. 10.  Minnesota Statutes 1994, section 124.195, is 
 12.2   amended by adding a subdivision to read: 
 12.3      Subd. 3c.  [CASH FLOW WAIVER.] For any district exceeding 
 12.4   its expenditure limitations under section 121.917, and if 
 12.5   requested by the district, the commissioner of education, in 
 12.6   consultation with the commissioner of finance, and a school 
 12.7   district may negotiate a cash flow payment schedule under 
 12.8   subdivision 3 corresponding to the district's cash flow needs so 
 12.9   as to minimize the district's short-term borrowing needs. 
 12.10     Sec. 11.  Minnesota Statutes 1994, section 124.195, 
 12.11  subdivision 10, is amended to read: 
 12.12     Subd. 10.  [AID PAYMENT PERCENTAGE.] Except as provided in 
 12.13  subdivisions 8, 9, and 11, each fiscal year, all education aids 
 12.14  and credits in this chapter and chapters 121, 123, 124A, 124B, 
 12.15  125, 126, 134, and section 273.1392, shall be paid at 90 percent 
 12.16  for districts operating a program under section 121.585 for 
 12.17  grades 1 to 12 for all students in the district and 85 percent 
 12.18  for other districts of the estimated entitlement during the 
 12.19  fiscal year of the entitlement, unless a higher rate has been 
 12.20  established according to section 121.904, subdivision 4d.  
 12.21  Districts operating a program under section 121.585 for grades 1 
 12.22  to 12 for all students in the district shall receive 85 percent 
 12.23  of the estimated entitlement plus an additional amount of 
 12.24  general education aid equal to five percent of the estimated 
 12.25  entitlement.  For all districts, the final adjustment payment, 
 12.26  according to subdivision 6, shall be the amount of the actual 
 12.27  entitlement, after adjustment for actual data, minus the 
 12.28  payments made during the fiscal year of the entitlement shall be 
 12.29  paid as the final adjustment payment according to subdivision 6. 
 12.30     Sec. 12.  Minnesota Statutes 1994, section 124.195, is 
 12.31  amended by adding a subdivision to read: 
 12.32     Subd. 14.  [EDUCATION AIDS CASH FLOW ACCOUNT.] (a) An 
 12.33  education aids cash flow account is established in the state 
 12.34  treasury for the purpose of ensuring the timely payment of state 
 12.35  aids or credits to school districts as provided in this 
 12.36  section.  In the event the account balance in any appropriation 
 13.1   from the general fund to the department of education for 
 13.2   education aids or credits is insufficient to make the next 
 13.3   scheduled payment or payments, the commissioner of education is 
 13.4   authorized to transfer funds from the education aids cash flow 
 13.5   account to the accounts that are insufficient. 
 13.6      (b) For purposes of this subdivision, an account may have 
 13.7   an insufficient balance only as a result of some districts being 
 13.8   overpaid based on revised estimates for the relevant annual aid 
 13.9   or credit entitlements.  When the overpayment amounts are 
 13.10  recovered from the pertinent districts, the commissioner of 
 13.11  education shall transfer those amounts to the education aids 
 13.12  cash flow account.  The commissioner shall determine when it is 
 13.13  not feasible to recover the overpayments in a timely manner from 
 13.14  the district's future aid payments and notify the district of 
 13.15  the amount that is to be refunded to the state.  School 
 13.16  districts are encouraged to make such refunds promptly.  The 
 13.17  commissioner may approve a schedule for making a refund when a 
 13.18  district demonstrates that its cash flow is inadequate to 
 13.19  promptly make the refund in full. 
 13.20     (c) There is annually appropriated from the general fund to 
 13.21  the education aids cash flow account the additional amount 
 13.22  necessary to ensure the timely payment of state aids or credits 
 13.23  to school districts as provided in this section.  For any fiscal 
 13.24  year, the appropriation authorized in this subdivision shall not 
 13.25  exceed an amount equal to two-tenths of one percent of the total 
 13.26  general fund appropriations in that year for education aids and 
 13.27  credits.  At the close of each fiscal year, the amount of actual 
 13.28  transfers plus anticipated transfers required in paragraph (b) 
 13.29  shall equal the authorized amounts transferred in paragraph (a) 
 13.30  so that the net effect on total general fund spending for 
 13.31  education aids and credits is zero. 
 13.32     Sec. 13.  Minnesota Statutes 1994, section 124.2139, is 
 13.33  amended to read: 
 13.34     124.2139 [REDUCTION OF PAYMENTS TO SCHOOL DISTRICTS.] 
 13.35     The commissioner of revenue shall reduce the sum of the 
 13.36  additional transition credit, homestead and agricultural credit 
 14.1   aid, and disparity reduction aid payments under section 273.1398 
 14.2   made to school districts by the product of:  
 14.3      (1) the district's fiscal year 1984 payroll for coordinated 
 14.4   plan members of the public employees retirement association 
 14.5   other than technical college employees, times 
 14.6      (2) the difference between the employer contribution rate 
 14.7   in effect prior to July 1, 1984, and the total employer 
 14.8   contribution rate in effect after June 30, 1984.  
 14.9      Sec. 14.  Minnesota Statutes 1994, section 124.918, 
 14.10  subdivision 1, is amended to read: 
 14.11     Subdivision 1.  [CERTIFY LEVY LIMITS.] By September 1 8, 
 14.12  the commissioner shall notify the school districts of their levy 
 14.13  limits.  The commissioner shall certify to the county auditors 
 14.14  the levy limits for all school districts headquartered in the 
 14.15  respective counties together with adjustments for errors in 
 14.16  levies not penalized pursuant to section 124.918, subdivision 3, 
 14.17  as well as adjustments to final pupil unit counts. A school 
 14.18  district may require the commissioner to review the 
 14.19  certification and to present evidence in support of modification 
 14.20  of the certification. 
 14.21     The county auditor shall reduce levies for any excess of 
 14.22  levies over levy limitations pursuant to section 275.16.  Such 
 14.23  reduction in excess levies may, at the discretion of the school 
 14.24  district, be spread over two calendar years. 
 14.25     Sec. 15.  Minnesota Statutes 1994, section 124.918, 
 14.26  subdivision 2, is amended to read: 
 14.27     Subd. 2.  [NOTICE TO COMMISSIONER; FORMS.] By September 
 14.28  15 30 of each year each district shall notify the commissioner 
 14.29  of education of the proposed levies in compliance with the levy 
 14.30  limitations of this chapter and chapters 124A, 124B, 136C, and 
 14.31  136D.  By January 15 of each year each district shall notify the 
 14.32  commissioner of education of the final levies certified.  The 
 14.33  commissioner of education shall prescribe the form of these 
 14.34  notifications and may request any additional information 
 14.35  necessary to compute certified levy amounts. 
 14.36     Sec. 16.  Minnesota Statutes 1994, section 124A.03, 
 15.1   subdivision 1g, is amended to read: 
 15.2      Subd. 1g.  [REFERENDUM EQUALIZATION LEVY.] (a) For fiscal 
 15.3   year 1996, a district's referendum equalization levy equals the 
 15.4   district's referendum equalization revenue times the lesser of 
 15.5   one or the ratio of the district's adjusted net tax capacity per 
 15.6   actual pupil unit to 100 percent of the equalizing factor as 
 15.7   defined in section 124A.02, subdivision 8. 
 15.8      (b) For fiscal year 1997 and thereafter, a district's 
 15.9   referendum equalization levy for a referendum levied against the 
 15.10  referendum market value of all taxable property as defined in 
 15.11  section 124A.02, subdivision 3b, equals the district's 
 15.12  referendum equalization revenue times the lesser of one or the 
 15.13  ratio of the district's referendum market value per actual pupil 
 15.14  unit to $476,000. 
 15.15     (c) For fiscal year 1997 and thereafter, a district's 
 15.16  referendum equalization levy for a referendum levied against the 
 15.17  net tax capacity of all taxable property equals the district's 
 15.18  referendum equalization revenue times the lesser of one or the 
 15.19  ratio of the district's adjusted net tax capacity per actual 
 15.20  pupil unit to 100 percent of the equalizing factor for that year.
 15.21     Sec. 17.  Minnesota Statutes 1994, section 124A.03, 
 15.22  subdivision 1h, is amended to read: 
 15.23     Subd. 1h.  [REFERENDUM EQUALIZATION AID.] (a) A district's 
 15.24  referendum equalization aid equals the difference between its 
 15.25  referendum equalization revenue and levy. 
 15.26     (b) For fiscal year 1993, a district's referendum 
 15.27  equalization aid is equal to one-third of the amount calculated 
 15.28  in clause (a). 
 15.29     (c) For fiscal year 1994, a district's referendum 
 15.30  equalization aid is equal to two-thirds of the amount calculated 
 15.31  in clause (a). 
 15.32     (d) If a district's actual levy for referendum equalization 
 15.33  revenue is less than its maximum levy limit, aid shall be 
 15.34  proportionately reduced. 
 15.35     Sec. 18.  Minnesota Statutes 1994, section 124A.03, 
 15.36  subdivision 2, is amended to read: 
 16.1      Subd. 2.  [REFERENDUM REVENUE.] (a) The revenue authorized 
 16.2   by section 124A.22, subdivision 1, may be increased in the 
 16.3   amount approved by the voters of the district at a referendum 
 16.4   called for the purpose.  The referendum may be called by the 
 16.5   school board or shall be called by the school board upon written 
 16.6   petition of qualified voters of the district.  The referendum 
 16.7   shall be conducted during the one or two calendar year years 
 16.8   before the increased levy authority, if approved, first becomes 
 16.9   payable.  Only one election to approve an increase may be held 
 16.10  in a calendar year.  Unless the referendum is conducted by mail 
 16.11  under paragraph (g), the referendum must be held on the first 
 16.12  Tuesday after the first Monday in November.  The ballot shall 
 16.13  state the maximum amount of the increased revenue per actual 
 16.14  pupil unit, the estimated referendum tax rate as a percentage of 
 16.15  market value in the first year it is to be levied, and that the 
 16.16  revenue shall be used to finance school operations.  The ballot 
 16.17  may state that existing referendum levy authority is expiring.  
 16.18  In this case, the ballot may also compare the proposed levy 
 16.19  authority to the existing expiring levy authority, and express 
 16.20  the proposed increase as the amount, if any, over the expiring 
 16.21  referendum levy authority.  The ballot shall designate the 
 16.22  specific number of years, not to exceed ten, for which the 
 16.23  referendum authorization shall apply.  The ballot may contain a 
 16.24  textual portion with the information required in this 
 16.25  subdivision and a question stating substantially the following:  
 16.26     "Shall the increase in the revenue proposed by (petition 
 16.27  to) the board of ........., School District No. .., be approved?"
 16.28     If approved, an amount equal to the approved revenue per 
 16.29  actual pupil unit times the actual pupil units for the school 
 16.30  year beginning in the year after the levy is certified shall be 
 16.31  authorized for certification for the number of years approved, 
 16.32  if applicable, or until revoked or reduced by the voters of the 
 16.33  district at a subsequent referendum. 
 16.34     (b) The school board shall prepare and deliver by first 
 16.35  class mail at least 15 days but no more than 30 days prior to 
 16.36  the day of the referendum to each taxpayer a notice of the 
 17.1   referendum and the proposed revenue increase.  The school board 
 17.2   need not mail more than one notice to any taxpayer.  For the 
 17.3   purpose of giving mailed notice under this subdivision, owners 
 17.4   shall be those shown to be owners on the records of the county 
 17.5   auditor or, in any county where tax statements are mailed by the 
 17.6   county treasurer, on the records of the county treasurer.  Every 
 17.7   property owner whose name does not appear on the records of the 
 17.8   county auditor or the county treasurer shall be deemed to have 
 17.9   waived this mailed notice unless the owner has requested in 
 17.10  writing that the county auditor or county treasurer, as the case 
 17.11  may be, include the name on the records for this purpose.  The 
 17.12  notice must project the anticipated amount of tax increase in 
 17.13  annual dollars and annual percentage for typical residential 
 17.14  homesteads, agricultural homesteads, apartments, and 
 17.15  commercial-industrial property within the school district. 
 17.16     The notice for a referendum may state that an existing 
 17.17  referendum levy is expiring and project the anticipated amount 
 17.18  of increase over the existing referendum levy, if any, in annual 
 17.19  dollars and annual percentage for typical residential 
 17.20  homesteads, agricultural homesteads, apartments, and 
 17.21  commercial-industrial property within the school district. 
 17.22     The notice must include the following statement:  "Passage 
 17.23  of this referendum will result in an increase in your property 
 17.24  taxes." 
 17.25     (c) A referendum on the question of revoking or reducing 
 17.26  the increased revenue amount authorized pursuant to paragraph 
 17.27  (a) may be called by the school board and shall be called by the 
 17.28  school board upon the written petition of qualified voters of 
 17.29  the district.  A referendum to revoke or reduce the levy amount 
 17.30  must be based upon the dollar amount, local tax rate, or amount 
 17.31  per actual pupil unit, that was stated to be the basis for the 
 17.32  initial authorization.  Revenue approved by the voters of the 
 17.33  district pursuant to paragraph (a) must be received at least 
 17.34  once before it is subject to a referendum on its revocation or 
 17.35  reduction for subsequent years.  Only one revocation or 
 17.36  reduction referendum may be held to revoke or reduce referendum 
 18.1   revenue for any specific year and for years thereafter. 
 18.2      (d) A petition authorized by paragraph (a) or (c) shall be 
 18.3   effective if signed by a number of qualified voters in excess of 
 18.4   15 percent of the registered voters of the school district on 
 18.5   the day the petition is filed with the school board.  A 
 18.6   referendum invoked by petition shall be held on the date 
 18.7   specified in paragraph (a). 
 18.8      (e) The approval of 50 percent plus one of those voting on 
 18.9   the question is required to pass a referendum authorized by this 
 18.10  subdivision. 
 18.11     (f) At least 15 days prior to the day of the referendum, 
 18.12  the district shall submit a copy of the notice required under 
 18.13  paragraph (b) to the commissioner of education.  Within 15 days 
 18.14  after the results of the referendum have been certified by the 
 18.15  school board, or in the case of a recount, the certification of 
 18.16  the results of the recount by the canvassing board, the district 
 18.17  shall notify the commissioner of education of the results of the 
 18.18  referendum. 
 18.19     (g) Any referendum under this section held on a day other 
 18.20  than the first Tuesday after the first Monday in November must 
 18.21  be conducted by mail in accordance with section 204B.46.  
 18.22  Notwithstanding paragraph (b) to the contrary, in the case of a 
 18.23  referendum conducted by mail under this paragraph, the notice 
 18.24  required by paragraph (b) shall be prepared and delivered by 
 18.25  first class mail at least 20 days before the referendum. 
 18.26     Sec. 19.  Minnesota Statutes 1994, section 124A.0311, 
 18.27  subdivision 4, is amended to read: 
 18.28     Subd. 4.  [REFERENDUM.] The school board must prepare and 
 18.29  publish in the official legal newspaper of the school district a 
 18.30  notice of the public meeting on the district's intent to convert 
 18.31  any portion of its referendum levy to market value not less than 
 18.32  30 days before the scheduled date of the meeting.  The 
 18.33  resolution converting a portion of the district's referendum 
 18.34  levy to referendum market value becomes final unless within 30 
 18.35  days after the meeting where the resolution was adopted a 
 18.36  petition requesting an election signed by a number of people 
 19.1   residing in the district equal to 15 percent of the number of 
 19.2   people who voted in the last general election in the school 
 19.3   district is filed with the recording officer qualified voters in 
 19.4   excess of 15 percent of the registered voters of the school 
 19.5   district on the day the petition is filed with the school 
 19.6   board.  If a petition is filed, then the school board resolution 
 19.7   has no effect and the amount of referendum revenue authority 
 19.8   specified in the resolution cancels for taxes payable in the 
 19.9   following year and thereafter.  The school board shall schedule 
 19.10  a referendum under section 124A.03, subdivision 2. 
 19.11     Sec. 20.  Minnesota Statutes 1994, section 124A.22, 
 19.12  subdivision 1, is amended to read: 
 19.13     Subdivision 1.  [GENERAL EDUCATION REVENUE.] (a) For fiscal 
 19.14  year 1996, the general education revenue for each district 
 19.15  equals the sum of the district's basic revenue, compensatory 
 19.16  education revenue, training and experience revenue, secondary 
 19.17  sparsity revenue, elementary sparsity revenue, and supplemental 
 19.18  revenue. 
 19.19     (b) For fiscal year 1997 and thereafter, the general 
 19.20  education revenue for each district equals the sum of the 
 19.21  district's basic revenue, compensatory education revenue, 
 19.22  training and experience revenue, secondary sparsity revenue, 
 19.23  elementary sparsity revenue, total operating capital revenue, 
 19.24  and supplemental revenue. 
 19.25     Sec. 21.  Minnesota Statutes 1994, section 124A.22, 
 19.26  subdivision 2, is amended to read: 
 19.27     Subd. 2.  [BASIC REVENUE.] The basic revenue for each 
 19.28  district equals the formula allowance times the actual pupil 
 19.29  units for the school year.  The formula allowance for fiscal 
 19.30  years 1993 and 1994 is $3,050.  The formula allowance for fiscal 
 19.31  year 1995 and subsequent fiscal years is $3,150.  The formula 
 19.32  allowance for fiscal years 1996 and 1997 is $3,225.  The formula 
 19.33  allowance for fiscal year 1998 and subsequent fiscal years is 
 19.34  $3,150. 
 19.35     Sec. 22.  Minnesota Statutes 1994, section 124A.22, 
 19.36  subdivision 4, is amended to read: 
 20.1      Subd. 4.  [TRAINING AND EXPERIENCE REVENUE.] (a) The 
 20.2   previous formula training and experience revenue for each 
 20.3   district equals the greater of zero or the result of the 
 20.4   following computation:  
 20.5      (1) subtract 1.6 from the training and experience index; 
 20.6      (2) multiply the result in clause (1) by the product of 
 20.7   $700 times the actual pupil units for the school year. 
 20.8      (b) The maximum training and experience revenue for each 
 20.9   district equals the greater of zero or the result of the 
 20.10  following computation:  
 20.11     (1) subtract .8 from the training and experience index; 
 20.12     (2) multiply the result in clause (1) by the product of 
 20.13  $660 times the actual pupil units for the school year.  
 20.14     (c) For fiscal year 1994, the training and experience 
 20.15  revenue for each district equals the district's previous formula 
 20.16  training and experience revenue plus one-half of the difference 
 20.17  between the district's maximum training and experience revenue 
 20.18  and the district's previous formula training and experience 
 20.19  revenue.  
 20.20     (d) For fiscal year 1995, the training and experience 
 20.21  revenue for each district equals the district's previous formula 
 20.22  training and experience revenue plus three-fourths of the 
 20.23  difference between the district's maximum training and 
 20.24  experience revenue and the district's previous formula training 
 20.25  and experience revenue. 
 20.26     (e) For fiscal year 1996 and thereafter, the training and 
 20.27  experience revenue for each district equals the district's 
 20.28  maximum training and experience revenue.  
 20.29     Sec. 23.  Minnesota Statutes 1994, section 124A.22, 
 20.30  subdivision 4a, is amended to read: 
 20.31     Subd. 4a.  [FISCAL YEAR 1996 TRAINING AND EXPERIENCE LEVY.] 
 20.32  A district's training and experience levy for fiscal year 1996 
 20.33  equals its training and experience revenue times the lesser of 
 20.34  one or the ratio of the district's adjusted net tax capacity per 
 20.35  actual pupil unit for the year before the year the levy is 
 20.36  certified to the equalizing factor for the school year to which 
 21.1   the levy is attributable. 
 21.2      Sec. 24.  Minnesota Statutes 1994, section 124A.22, 
 21.3   subdivision 4b, is amended to read: 
 21.4      Subd. 4b.  [FISCAL YEAR 1996 TRAINING AND EXPERIENCE AID.] 
 21.5   A district's training and experience aid for fiscal year 1996 
 21.6   equals its training and experience revenue minus its training 
 21.7   and experience levy times the ratio of the actual amount levied 
 21.8   to the permitted levy. 
 21.9      Sec. 25.  Minnesota Statutes 1994, section 124A.22, 
 21.10  subdivision 8a, is amended to read: 
 21.11     Subd. 8a.  [SUPPLEMENTAL LEVY.] To obtain supplemental 
 21.12  revenue, a district may levy an amount not more than the product 
 21.13  of its supplemental revenue for the school year times the lesser 
 21.14  of one or the ratio of its general education levy to its general 
 21.15  education revenue, excluding training and experience revenue and 
 21.16  supplemental revenue, for the same year. 
 21.17     Sec. 26.  Minnesota Statutes 1994, section 124A.22, 
 21.18  subdivision 9, is amended to read: 
 21.19     Subd. 9.  [SUPPLEMENTAL REVENUE REDUCTION.] A district's 
 21.20  supplemental revenue allowance is reduced by the sum of: 
 21.21     (1) the sum of one-fourth of the difference of:  
 21.22     (i) the sum of the district's training and experience 
 21.23  revenue and compensatory revenue per actual pupil unit for that 
 21.24  fiscal year 1996, and 
 21.25     (ii) the sum of district's training and experience revenue 
 21.26  and compensatory revenue per actual pupil unit for fiscal year 
 21.27  1994; and 
 21.28     (2) the difference between the formula allowance for the 
 21.29  current fiscal year and $3,050 $100.  
 21.30     A district's supplemental revenue allowance may not be less 
 21.31  than zero. 
 21.32     Sec. 27.  Minnesota Statutes 1994, section 124A.22, is 
 21.33  amended by adding a subdivision to read: 
 21.34     Subd. 10.  [TOTAL OPERATING CAPITAL REVENUE.] (a) For 
 21.35  fiscal year 1997 and thereafter, total operating capital revenue 
 21.36  for a district equals the amount determined under paragraph (b), 
 22.1   (c), (d), (e), or (f), plus $68 times the actual pupil units for 
 22.2   the school year.  The revenue must be placed in a reserved 
 22.3   account in the general fund and may only be used according to 
 22.4   subdivision 11. 
 22.5      (b) For fiscal years 1996 and later, capital revenue for a 
 22.6   district equals $96 times the district's maintenance cost index 
 22.7   times its actual pupil units for the school year. 
 22.8      (c) For 1996 and later fiscal years, the previous formula 
 22.9   revenue for a district equals $123 times its actual pupil units 
 22.10  for fiscal year 1995. 
 22.11     (d) Notwithstanding paragraph (b), for fiscal year 1996, 
 22.12  the revenue for each district equals 25 percent of the amount 
 22.13  determined in paragraph (b) plus 75 percent of the previous 
 22.14  formula revenue. 
 22.15     (e) Notwithstanding paragraph (b), for fiscal year 1997, 
 22.16  the revenue for each district equals 50 percent of the amount 
 22.17  determined in paragraph (b) plus 50 percent of the previous 
 22.18  formula revenue. 
 22.19     (f) Notwithstanding paragraph (b), for fiscal year 1998, 
 22.20  the revenue for each district equals 75 percent of the amount 
 22.21  determined in paragraph (b) plus 25 percent of the previous 
 22.22  formula revenue. 
 22.23     (g) The revenue in paragraph (b) for a district that 
 22.24  operates a program under section 121.585, is increased by an 
 22.25  amount equal to $15 times the number of actual pupil units at 
 22.26  the site where the program is implemented. 
 22.27     Sec. 28.  Minnesota Statutes 1994, section 124A.22, is 
 22.28  amended by adding a subdivision to read: 
 22.29     Subd. 11.  [USES OF TOTAL OPERATING CAPITAL REVENUE.] Total 
 22.30  operating capital revenue may be used only for the following 
 22.31  purposes: 
 22.32     (1) to acquire land for school purposes; 
 22.33     (2) to acquire or construct buildings for school purposes, 
 22.34  up to $400,000; 
 22.35     (3) to rent or lease buildings, including the costs of 
 22.36  building repair or improvement that are part of a lease 
 23.1   agreement; 
 23.2      (4) to improve and repair school sites and buildings, and 
 23.3   equip or reequip school buildings with permanent attached 
 23.4   fixtures; 
 23.5      (5) for a surplus school building that is used 
 23.6   substantially for a public nonschool purpose; 
 23.7      (6) to eliminate barriers or increase access to school 
 23.8   buildings by individuals with a disability; 
 23.9      (7) to bring school buildings into compliance with the 
 23.10  uniform fire code adopted according to chapter 299F; 
 23.11     (8) to remove asbestos from school buildings, encapsulate 
 23.12  asbestos, or make asbestos-related repairs; 
 23.13     (9) to clean up and dispose of polychlorinated biphenyls 
 23.14  found in school buildings; 
 23.15     (10) to clean up, remove, dispose of, and make repairs 
 23.16  related to storing heating fuel or transportation fuels such as 
 23.17  alcohol, gasoline, fuel oil, and special fuel, as defined in 
 23.18  section 296.01; 
 23.19     (11) for energy audits for school buildings and to modify 
 23.20  buildings if the audit indicates the cost of the modification 
 23.21  can be recovered within ten years; 
 23.22     (12) to improve buildings that are leased according to 
 23.23  section 123.36, subdivision 10; 
 23.24     (13) to pay special assessments levied against school 
 23.25  property but not to pay assessments for service charges; 
 23.26     (14) to pay principal and interest on state loans for 
 23.27  energy conservation according to section 216C.37 or loans made 
 23.28  under the northeast Minnesota economic protection trust fund act 
 23.29  according to sections 298.292 to 298.298; and 
 23.30     (15) to purchase or lease interactive telecommunications 
 23.31  equipment; 
 23.32     (16) by school board resolution, to transfer money into the 
 23.33  debt redemption fund to pay the amounts needed to meet, when 
 23.34  due, principal and interest payments on certain obligations 
 23.35  issued according to chapter 475; 
 23.36     (17) to pay capital expenditure equipment-related 
 24.1   assessments of any entity formed under a cooperative agreement 
 24.2   between two or more districts; 
 24.3      (18) to purchase or lease computers and related materials, 
 24.4   copying machines, telecommunications equipment, and other 
 24.5   noninstructional equipment; 
 24.6      (19) to purchase or lease assistive technology or equipment 
 24.7   for instructional programs; 
 24.8      (20) to purchase textbooks; 
 24.9      (21) to purchase new and replacement library books; 
 24.10     (22) to purchase vehicles; and 
 24.11     (23) to purchase or lease telecommunications equipment, 
 24.12  computers, and related equipment for integrated information 
 24.13  management systems for: 
 24.14     (i) managing and reporting learner outcome information for 
 24.15  all students under a results-oriented graduation rule; 
 24.16     (ii) managing student assessment, services, and achievement 
 24.17  information required for students with individual education 
 24.18  plans; and 
 24.19     (iii) other classroom information management needs. 
 24.20     Sec. 29.  Minnesota Statutes 1994, section 124A.22, is 
 24.21  amended by adding a subdivision to read: 
 24.22     Subd. 12.  [MAINTENANCE COST INDEX.] (a) A district's 
 24.23  maintenance cost index is equal to the ratio of: 
 24.24     (1) the total weighted square footage for all eligible 
 24.25  district-owned facilities; and 
 24.26     (2) the total unweighted square footage of these facilities.
 24.27     (b) The department shall determine a district's maintenance 
 24.28  cost index annually.  Eligible district-owned facilities shall 
 24.29  include only instructional or administrative square footage 
 24.30  owned by the district.  The commissioner of education may adjust 
 24.31  the age of a building or addition for major renovation projects. 
 24.32     (c) The square footage weighting factor for each original 
 24.33  building or addition equals the lesser of: 
 24.34     (1) one plus the ratio of the age in years to 100; or 
 24.35     (2) 1.5. 
 24.36     (d) The weighted square footage for each original building 
 25.1   or addition equals the product of the unweighted square footage 
 25.2   times the square footage weighting factor. 
 25.3      Sec. 30.  Minnesota Statutes 1994, section 124A.23, 
 25.4   subdivision 1, is amended to read: 
 25.5      Subdivision 1.  [GENERAL EDUCATION TAX RATE.] The 
 25.6   commissioner shall establish the general education tax rate by 
 25.7   July 1 of each year for levies payable in the following year.  
 25.8   The general education tax capacity rate shall be a rate, rounded 
 25.9   up to the nearest tenth of a percent, that, when applied to the 
 25.10  adjusted net tax capacity for all districts, raises the amount 
 25.11  specified in this subdivision.  The general education tax rate 
 25.12  shall be the rate that raises $1,044,000,000 for fiscal year 
 25.13  1995 and $1,054,000,000 for fiscal year 1996 and $1,241,000,000 
 25.14  for fiscal year 1997 and later fiscal years.  The general 
 25.15  education tax rate may not be changed due to changes or 
 25.16  corrections made to a district's adjusted net tax capacity after 
 25.17  the tax rate has been established.  
 25.18     Sec. 31.  Minnesota Statutes 1994, section 124A.23, 
 25.19  subdivision 4, is amended to read: 
 25.20     Subd. 4.  [GENERAL EDUCATION AID.] A district's general 
 25.21  education aid is the sum of the following amounts:  
 25.22     (1) the product of (i) the difference between the general 
 25.23  education revenue, excluding training and experience revenue and 
 25.24  supplemental revenue, and the general education levy, times (ii) 
 25.25  the ratio of the actual amount levied to the permitted levy; 
 25.26     (2) training and experience aid according to section 
 25.27  124A.22, subdivision 4b; 
 25.28     (3) supplemental aid according to section 124.214, 
 25.29  subdivision 2; 
 25.30     (4) (3) shared time aid according to section 124A.02, 
 25.31  subdivision 21; and 
 25.32     (5) (4) referendum aid according to section 124A.03. 
 25.33     Sec. 32.  Minnesota Statutes 1994, section 124A.24, is 
 25.34  amended to read: 
 25.35     124A.24 [GENERAL EDUCATION LEVY EQUITY.] 
 25.36     If a district's general education levy is determined 
 26.1   according to section 124A.23, subdivision 3, an amount must be 
 26.2   deducted from state aid authorized in this chapter and chapters 
 26.3   124 and 124B, receivable for the same school year, and from 
 26.4   other state payments receivable for the same school year 
 26.5   authorized in chapter 273.  The aid in section 124.646 must not 
 26.6   be reduced. 
 26.7      The amount of the deduction equals the difference between: 
 26.8      (1) the general education tax rate, according to section 
 26.9   124A.23, times the district's adjusted net tax capacity used to 
 26.10  determine the general education aid for the same school year; 
 26.11  and 
 26.12     (2) the district's general education revenue, excluding 
 26.13  training and experience revenue and supplemental revenue, for 
 26.14  the same school year, according to section 124A.22. 
 26.15     Sec. 33.  Minnesota Statutes 1994, section 124A.29, 
 26.16  subdivision 1, is amended to read: 
 26.17     Subdivision 1.  [STAFF DEVELOPMENT AND PARENTAL INVOLVEMENT 
 26.18  REVENUE.] (a) Of a district's basic revenue under section 
 26.19  124A.22, subdivision 2, an amount equal to one percent in fiscal 
 26.20  year 1994, two percent in fiscal year 1995, and 2.5 percent in 
 26.21  fiscal year 1996 and thereafter times the formula allowance $65 
 26.22  times the number of actual total fund balance pupil units shall 
 26.23  be reserved and may be used only for in-service education for 
 26.24  programs under section 126.77, subdivision 2, or for staff 
 26.25  development plans, including plans for challenging instructional 
 26.26  activities and experiences under section 126.70, and for 
 26.27  curriculum development and programs, other in-service education, 
 26.28  teachers' workshops, teacher conferences, the cost of substitute 
 26.29  teachers staff development purposes, and other related costs for 
 26.30  staff development efforts.  Districts may expend an additional 
 26.31  amount of basic revenue for staff development based on their 
 26.32  needs.  The school board shall initially allocate 50 percent of 
 26.33  the revenue to each school site in the district on a per teacher 
 26.34  basis, which shall be retained by the school site until used.  
 26.35  The board may retain 25 percent to be used for district wide 
 26.36  staff development efforts.  The remaining 25 percent of the 
 27.1   revenue shall be used to make grants to school sites that 
 27.2   demonstrate exemplary use of allocated staff development 
 27.3   revenue.  A grant may be used for any purpose authorized under 
 27.4   section 126.70 or, 126.77, subdivision 2, or for the costs of 
 27.5   curriculum development and programs, other in-service education, 
 27.6   teachers' workshops, teacher conferences, substitute teachers 
 27.7   for staff development purposes, and other staff development 
 27.8   efforts, and determined by the site decision-making team.  The 
 27.9   site decision-making team must demonstrate to the school board 
 27.10  the extent to which staff at the site have met the outcomes of 
 27.11  the program.  The board may withhold a portion of initial 
 27.12  allocation of revenue if the staff development outcomes are not 
 27.13  being met. 
 27.14     (b) Of a district's basic revenue under section 124A.22, 
 27.15  subdivision 2, an amount equal to $5 times the number of actual 
 27.16  pupil units must be reserved and may be used only to provide 
 27.17  parental involvement programs that implement section 126.69.  
 27.18  Parental involvement programs may include career teacher 
 27.19  programs, programs promoting parental involvement in the PER 
 27.20  process, coordination of volunteer services, participation in 
 27.21  developing, implementing, or evaluating school 
 27.22  desegregation/integration plans, and programs designed to 
 27.23  encourage community involvement. 
 27.24     Sec. 34.  Minnesota Statutes 1994, section 124C.60, 
 27.25  subdivision 1, is amended to read: 
 27.26     Subdivision 1.  [ELIGIBILITY.] Two or more districts that 
 27.27  have consolidated under section 122.23 or combined under 
 27.28  sections 122.241 to 122.248, are eligible for a capital 
 27.29  facilities grant of up to $100,000 $200,000 for fiscal year 1995 
 27.30  and $100,000 thereafter under this section.  To qualify the 
 27.31  following criteria must be met: 
 27.32     (1) the proposed facility changes are part of the plan 
 27.33  according to section 122.242, subdivision 10, or the plan 
 27.34  adopted by the reorganized district according to section 
 27.35  124.243, subdivision 1; 
 27.36     (2) the changes proposed to a facility must be needed to 
 28.1   accommodate changes in the educational program due to the 
 28.2   reorganization; 
 28.3      (3) the utilization of the facility for educational 
 28.4   programs is at least 85 percent of capacity; and 
 28.5      (4) the grant will be used only to remodel or improve 
 28.6   existing facilities. 
 28.7      Sec. 35.  [126.09] [MOMENT OF SILENCE.] 
 28.8      At the commencement of the first class each day in all 
 28.9   public schools the teacher in charge of the room in which each 
 28.10  such class is held may announce that a period of silence, not to 
 28.11  exceed one minute in duration, shall be observed, and during any 
 28.12  such period silence shall be maintained and no activity engaged 
 28.13  in. 
 28.14     Sec. 36.  Minnesota Statutes 1994, section 126.22, 
 28.15  subdivision 2, is amended to read: 
 28.16     Subd. 2.  [ELIGIBLE PUPILS.] The following pupils are 
 28.17  eligible to participate in the high school graduation incentives 
 28.18  program:  
 28.19     (a) any pupil who is between the ages of 12 and 21, or who 
 28.20  is an elementary pupil, and in either case, who:  
 28.21     (1) is at least two grade levels below the performance 
 28.22  level for pupils of the same age in a locally determined 
 28.23  achievement test; or 
 28.24     (2) is at least one year behind in satisfactorily 
 28.25  completing coursework or obtaining credits for graduation; or 
 28.26     (3) is pregnant or is a parent; or 
 28.27     (4) has been assessed as chemically dependent; or 
 28.28     (5) has been excluded or expelled according to sections 
 28.29  127.26 to 127.39; or 
 28.30     (6) has been referred by a school district for enrollment 
 28.31  in an eligible program or a program pursuant to section 126.23; 
 28.32  or 
 28.33     (7) is a victim of physical or sexual abuse; or 
 28.34     (8) has experienced mental health problems; or 
 28.35     (9) has experienced homelessness sometime within six months 
 28.36  before requesting a transfer to an eligible program; or 
 29.1      (10) speaks English as a second language or has limited 
 29.2   English proficiency; or 
 29.3      (b) any person who is at least 21 years of age and who:  
 29.4      (1) has received fewer than 14 years of public or nonpublic 
 29.5   education, beginning at age 5; 
 29.6      (2) has not completed the requirements for a high school 
 29.7   diploma; and 
 29.8      (3) at the time of application, (i) is eligible for 
 29.9   reemployment insurance benefits or has exhausted the benefits, 
 29.10  (ii) is eligible for, or is receiving income maintenance and 
 29.11  support services, as defined in section 268.0111, subdivision 5, 
 29.12  or (iii) is eligible for services under the displaced homemaker 
 29.13  program, state wage-subsidy program, or any programs under the 
 29.14  federal Jobs Training Partnership Act or its successor. 
 29.15     Sec. 37.  Minnesota Statutes 1994, section 275.065, 
 29.16  subdivision 1, is amended to read: 
 29.17     Subdivision 1.  [PROPOSED LEVY.] (a) Notwithstanding any 
 29.18  law or charter to the contrary, on or before September 15, each 
 29.19  taxing authority, other than a school district, shall adopt a 
 29.20  proposed budget and each taxing authority shall certify to the 
 29.21  county auditor the proposed or, in the case of a town, the final 
 29.22  property tax levy for taxes payable in the following year. 
 29.23     (b) On or before September 30, each school district shall 
 29.24  certify to the county auditor the proposed property tax levy for 
 29.25  taxes payable in the following year.  The school district may 
 29.26  certify the proposed levy as: 
 29.27     (1) a specific dollar amount; or 
 29.28     (2) an amount equal to the maximum levy limitation 
 29.29  certified by the commissioner of education to the county auditor 
 29.30  according to section 124.918, subdivision 1. 
 29.31     (c) If the board of estimate and taxation or any similar 
 29.32  board that establishes maximum tax levies for taxing 
 29.33  jurisdictions within a first class city certifies the maximum 
 29.34  property tax levies for funds under its jurisdiction by charter 
 29.35  to the county auditor by September 15, the city shall be deemed 
 29.36  to have certified its levies for those taxing jurisdictions. 
 30.1      (d) For purposes of this section, "taxing authority" 
 30.2   includes all home rule and statutory cities, towns, counties, 
 30.3   school districts, and special taxing districts as defined in 
 30.4   section 275.066.  Intermediate school districts that levy a tax 
 30.5   under chapter 124 or 136D, joint powers boards established under 
 30.6   sections 124.491 to 124.495, and common school districts No. 
 30.7   323, Franconia, and No. 815, Prinsburg, are also special taxing 
 30.8   districts for purposes of this section.  
 30.9      Sec. 38.  Minnesota Statutes 1994, section 469.1831, 
 30.10  subdivision 4, is amended to read: 
 30.11     Subd. 4.  [PROGRAM MONEY; DISTRIBUTION AND RESTRICTIONS.] 
 30.12  (a) Neighborhood revitalization program money may only be 
 30.13  expended in accordance with the program for a purpose listed in 
 30.14  subdivision 3 or this subdivision.  Program money may not be 
 30.15  used in those project areas of the city where the city 
 30.16  determines that private investment will be sufficient to provide 
 30.17  for development and redevelopment of the project area without 
 30.18  public sector assistance, except in cases where program money is 
 30.19  being used to remove or rehabilitate structurally substandard or 
 30.20  obsolete buildings.  Revenues derived from tax increments may 
 30.21  only be expended for the purposes otherwise permitted by law, 
 30.22  except that notwithstanding any law to the contrary, the city 
 30.23  must pay at least the following amount of program money, 
 30.24  including revenues derived from tax increments:  (1) 15 percent 
 30.25  to the school district, (2) 7.5 percent to the county, and (3) 
 30.26  7.5 percent for social services.  Payment must be made to the 
 30.27  county and school district within 15 days after the city 
 30.28  receives the distribution of increment revenues, provided that 
 30.29  the payment for calendar year 1990 may be made at any time 
 30.30  during the year.  Payment to the county for social services 
 30.31  delivery shall be paid only after approval of program and 
 30.32  spending plans under paragraph (b).  Payment to the school 
 30.33  district for education programs and services shall be paid only 
 30.34  after approval of program and spending plans under paragraph (b).
 30.35     (b) The money distributed to the county in a calendar year 
 30.36  must be deducted from the county's levy limit for the following 
 31.1   calendar year.  In calculating the county's levy limit base for 
 31.2   later years, the amount deducted must be treated as a local 
 31.3   government aid payment. 
 31.4      The city must notify the commissioner of education of the 
 31.5   amount of the payment made to the school district for the year.  
 31.6   The commissioner shall deduct from the school district's state 
 31.7   education aid payments one-half of the amount received by the 
 31.8   school district. 
 31.9      The program money paid to the school district by the city 
 31.10  less any amount of state aid deducted by the commissioner must 
 31.11  be expended for additional education programs and services in 
 31.12  accordance with the program.  The amounts expended by the school 
 31.13  district may not replace existing services. 
 31.14     The money for social services must be paid to the county 
 31.15  for the cost of the provision of social services under the plan, 
 31.16  as approved by the policy board and the county board.  
 31.17     (c) The city must expend on housing programs and related 
 31.18  purposes as provided by the program at least 75 percent of the 
 31.19  program money, after deducting the payments to the school 
 31.20  district and county. 
 31.21     (d) Notwithstanding any other provisions of law to the 
 31.22  contrary, for a city of the first class qualifying under section 
 31.23  469.1781, paragraph (a), program money and money described in 
 31.24  Laws 1990, chapter 604, article 7, section 29, as amended, may 
 31.25  be expended anywhere within the city by the authority for a 
 31.26  purpose permitted by this section for any political subdivision 
 31.27  without compliance with section 469.175, subdivision 4, and such 
 31.28  money shall be deemed to be expended for a purpose that is a 
 31.29  permitted project under section 469.176 and for a purpose that 
 31.30  is permitted under section 469.176 for the district from which 
 31.31  the increment was received. 
 31.32     Sec. 39.  Laws 1994, chapter 647, article 1, section 36, is 
 31.33  amended to read: 
 31.34     Sec. 36.  [PEQUOT LAKES; DELAY IN FORGIVENESS OF AID 
 31.35  REPAYMENT.] 
 31.36     The department of education must allow independent school 
 32.1   district No. 186, Pequot Lakes, to repay over a five-year period 
 32.2   forgive state aid overpayments of $196,000 for fiscal years 1991 
 32.3   and 1992 due to the property tax revenue recognition 
 32.4   shift attributable to independent school district No. 186, 
 32.5   Pequot Lakes.  Notwithstanding Minnesota Statutes, section 
 32.6   124.155, subdivision 1, aids for independent school district No. 
 32.7   186, Pequot Lakes, shall not be adjusted for fiscal years 1991 
 32.8   and 1992 for pupils transferring into the district under 
 32.9   Minnesota Statutes, section 120.062. 
 32.10     Sec. 40.  [PERMANENT SCHOOL FUND EARNINGS.] 
 32.11     During either fiscal year 1996 or 1997, notwithstanding 
 32.12  section 124.09, the state board of investment may invest in 
 32.13  equities an amount of principal in excess of the principal 
 32.14  necessary to generate $32,500,000 with the goal of improving the 
 32.15  long-term income from the permanent school fund. 
 32.16     Sec. 41.  [LEVY ADJUSTMENT; LE SUEUR-HENDERSON.] 
 32.17     Independent school district No. 2397, Le Sueur-Henderson, 
 32.18  must not receive a negative levy adjustment for any referendum 
 32.19  levy made by independent school district No. 734, Henderson, 
 32.20  that was certified for taxes payable in 1992. 
 32.21     Sec. 42.  [NO AID REDUCTION.] 
 32.22     The commissioner of education shall not reduce aid to a 
 32.23  district under Minnesota Statutes, section 124.14, subdivision 
 32.24  3, for the 1992-1993 school year because the district did not 
 32.25  provide the number of instructional days provided for in 
 32.26  Minnesota Statutes 1992, section 120.101, as long as the 
 32.27  district provided at least the minimum instructional hours 
 32.28  required by the rules of the state board of education during the 
 32.29  1992-1993 school year. 
 32.30     Sec. 43.  [EQUALIZING FACTOR.] 
 32.31     For fiscal year 1996 only, levies calculated under chapters 
 32.32  124 and 124A shall not be recomputed because of an increase in 
 32.33  the formula allowance under Minnesota Statutes, section 124A.22, 
 32.34  subdivision 2. 
 32.35     Sec. 44.  [SUPPLEMENTAL REVENUE REDUCTION.] 
 32.36     For fiscal years 1996 and 1997, a district that qualified 
 33.1   for a supplemental revenue reduction exception under Laws 1994, 
 33.2   chapter 647, article 1, section 35, shall receive a supplemental 
 33.3   revenue reduction adjustment equal to 60 percent of the amount 
 33.4   received in 1995. 
 33.5      Sec. 45.  [APPROPRIATIONS.] 
 33.6      Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
 33.7   indicated in this section are appropriated from the general fund 
 33.8   to the department of education for the fiscal years designated.  
 33.9      Subd. 2.  [GENERAL AND SUPPLEMENTAL EDUCATION AID.] For 
 33.10  general and supplemental education aid:  
 33.11       $1,994,005,000     .....     1996
 33.12       $2,312,913,000     .....     1997
 33.13     The 1996 appropriation includes $301,965,000 for 1995 and 
 33.14  $1,692,041,000 for 1996.  
 33.15     The 1997 appropriation includes $325,226,000 for 1996 and 
 33.16  $1,987,687,000 for 1997.  
 33.17     Sec. 46.  [REPEALER.] 
 33.18     Subdivision 1.  [JULY 1, 1995.] Minnesota Statutes 1994, 
 33.19  sections 124.17, subdivision 1b; 124.962; 124A.04, subdivision 
 33.20  1; and 124A.27, subdivision 11, are repealed July 1, 1995. 
 33.21     Subd. 2.  [REVENUE FOR FISCAL YEAR 1997.] Minnesota 
 33.22  Statutes 1994, sections 121.912, subdivision 8; 124.243; 
 33.23  124.244; 124A.26; and 126.019, are repealed effective for 
 33.24  revenue for fiscal year 1997. 
 33.25     Sec. 47.  [EFFECTIVE DATE.] 
 33.26     Sections 12 and 34 are effective the day following final 
 33.27  enactment.  Sections 25, 31, and 32 are effective for revenue 
 33.28  for fiscal year 1997. 
 33.29                             ARTICLE 2 
 33.30                           TRANSPORTATION
 33.31     Section 1.  Minnesota Statutes 1994, section 123.3514, 
 33.32  subdivision 8, is amended to read: 
 33.33     Subd. 8.  [TRANSPORTATION.] A parent or guardian of a pupil 
 33.34  enrolled in a course for secondary credit may apply to the 
 33.35  pupil's district of residence for reimbursement for transporting 
 33.36  the pupil between the secondary school in which the pupil is 
 34.1   enrolled or the pupil's home and the post-secondary institution 
 34.2   that the pupil attends.  The commissioner shall establish 
 34.3   guidelines for providing state aid to districts to reimburse the 
 34.4   parent or guardian for the necessary transportation costs, which 
 34.5   shall be based on financial need.  The reimbursement may not 
 34.6   exceed the pupil's actual cost of transportation or 15 cents per 
 34.7   mile traveled, whichever is less.  Reimbursement may not be paid 
 34.8   for more than 250 miles per week.  However, if the nearest 
 34.9   post-secondary institution is more than 25 miles from the 
 34.10  pupil's resident secondary school, the weekly reimbursement may 
 34.11  not exceed the reimbursement rate per mile times the actual 
 34.12  distance between the secondary school or the pupil's home and 
 34.13  the nearest post-secondary institution times ten.  The state 
 34.14  shall pay aid to the district according to the guidelines 
 34.15  established under this subdivision.  Chapter 14 does not apply 
 34.16  to the guidelines. 
 34.17     Sec. 2.  Minnesota Statutes 1994, section 123.7991, 
 34.18  subdivision 2, is amended to read: 
 34.19     Subd. 2.  [STUDENT TRAINING.] (a) Each school district 
 34.20  shall provide public school pupils enrolled in grades 
 34.21  kindergarten through 12 10 with age-appropriate school bus 
 34.22  safety training.  The training shall be results-oriented and 
 34.23  shall consist of both classroom instruction and practical 
 34.24  training using a school bus.  Upon completing the training, a 
 34.25  student shall be able to demonstrate knowledge and understanding 
 34.26  of at least the following competencies and concepts: 
 34.27     (1) transportation by school bus is a privilege and not a 
 34.28  right; 
 34.29     (2) district policies for student conduct and school bus 
 34.30  safety; 
 34.31     (3) appropriate conduct while on the school bus; 
 34.32     (4) the danger zones surrounding a school bus; 
 34.33     (5) procedures for safely boarding and leaving a school 
 34.34  bus; 
 34.35     (6) procedures for safe vehicle lane street or road 
 34.36  crossing; and 
 35.1      (7) school bus evacuation and other emergency procedures. 
 35.2      (b) Each nonpublic school located within the district shall 
 35.3   provide all nonpublic school pupils enrolled in grades 
 35.4   kindergarten through 10 who are transported by school bus at 
 35.5   public expense and attend school within the district's 
 35.6   boundaries with training as required in paragraph (a).  The 
 35.7   school district shall make a bus available for the practical 
 35.8   training if the district transports the nonpublic students.  
 35.9   Each nonpublic school shall provide the instruction. 
 35.10     (c) Student school bus safety training shall commence 
 35.11  during school bus safety week.  All students enrolled in grades 
 35.12  kindergarten through 3 who are transported by school bus and are 
 35.13  enrolled during the first or second week of school must 
 35.14  demonstrate achievement of the school bus safety training 
 35.15  competencies by the end of the third week of school.  All 
 35.16  students enrolled in grades 4 through 10 who are transported by 
 35.17  school bus and are enrolled during the first or second week of 
 35.18  school must demonstrate achievement of the competencies by the 
 35.19  end of the sixth week of school.  Students enrolled in grades 
 35.20  kindergarten through 10 who enroll in a school after the first 
 35.21  second week of school and are transported by school bus shall 
 35.22  undergo school bus safety training and demonstrate achievement 
 35.23  of the school bus safety competencies within three four weeks of 
 35.24  the first day of attendance.  The pupil transportation safety 
 35.25  director in each district must certify to the commissioner of 
 35.26  education annually by October 15 that all students transported 
 35.27  by school bus within the district have satisfactorily 
 35.28  demonstrated knowledge and understanding of the school bus 
 35.29  safety competencies according to this section or provide an 
 35.30  explanation for a student's failure to demonstrate the 
 35.31  competencies.  The principal or other chief administrator of 
 35.32  each nonpublic school must certify annually to the public 
 35.33  transportation safety director of the district in which the 
 35.34  school is located that all of the school's students transported 
 35.35  by school bus at public expense have received training.  A 
 35.36  school district may deny transportation to a student who fails 
 36.1   to demonstrate the competencies, unless the student is unable to 
 36.2   achieve the competencies due to a disability, or to a student 
 36.3   who attends a nonpublic school that fails to provide training as 
 36.4   required by this subdivision. 
 36.5      (c) (d) A school district and a nonpublic school with 
 36.6   students transported by school bus at public expense must, to 
 36.7   the extent possible, provide kindergarten pupils with bus safety 
 36.8   training before the first day of school. 
 36.9      (d) (e) A school district and a nonpublic school with 
 36.10  students transported by school bus at public expense must also 
 36.11  provide student safety education for bicycling and pedestrian 
 36.12  safety. 
 36.13     (f) A school district and a nonpublic school with students 
 36.14  transported by school bus at public expense must make reasonable 
 36.15  accommodations for the school bus, bicycle, and pedestrian 
 36.16  safety training of pupils known to speak English as a second 
 36.17  language and pupils with disabilities. 
 36.18     Sec. 3.  Minnesota Statutes 1994, section 123.7991, 
 36.19  subdivision 3, is amended to read: 
 36.20     Subd. 3.  [MODEL TRAINING PROGRAM.] The commissioner of 
 36.21  education shall develop a comprehensive model school bus safety 
 36.22  training program for pupils who ride the bus that includes bus 
 36.23  safety curriculum for both classroom and practical instruction, 
 36.24  methods for assessing attainment of school bus safety 
 36.25  competencies, and age-appropriate instructional materials.  The 
 36.26  program must be adaptable for use by students with disabilities. 
 36.27     Sec. 4.  Minnesota Statutes 1994, section 123.805, 
 36.28  subdivision 1, is amended to read: 
 36.29     Subdivision 1.  [COMPREHENSIVE POLICY.] Each school 
 36.30  district shall develop and implement a comprehensive, written 
 36.31  policy governing pupil transportation safety, including 
 36.32  transportation of nonpublic school students, when applicable.  
 36.33  The policy shall, at minimum, contain: 
 36.34     (1) provisions for appropriate student bus safety training 
 36.35  under section 123.7991; 
 36.36     (2) rules governing student conduct on school buses and in 
 37.1   school bus loading and unloading areas; 
 37.2      (3) a statement of parent or guardian responsibilities 
 37.3   relating to school bus safety; 
 37.4      (4) provisions for notifying students and parents or 
 37.5   guardians of their responsibilities and the rules; 
 37.6      (5) an intradistrict system for reporting school bus 
 37.7   accidents or misconduct, a system for dealing with local law 
 37.8   enforcement officials in cases of criminal conduct on a school 
 37.9   bus, and a system for reporting accidents, crimes, incidents of 
 37.10  misconduct, and bus driver dismissals to the department of 
 37.11  public safety under section 169.452; 
 37.12     (6) a discipline policy to address violations of school bus 
 37.13  safety rules, including procedures for revoking a student's bus 
 37.14  riding privileges in cases of serious or repeated misconduct; 
 37.15     (7) a system for integrating school bus misconduct records 
 37.16  with other discipline records; 
 37.17     (8) a statement of bus driver duties; 
 37.18     (9) planned expenditures for safety activities under 
 37.19  section 123.799 and, where applicable, provisions governing bus 
 37.20  monitor qualifications, training, and duties; 
 37.21     (10) rules governing the use and maintenance of type III 
 37.22  vehicles, drivers of type III vehicles, qualifications to drive 
 37.23  a type III vehicle, qualifications for a type III vehicle and 
 37.24  the circumstances under which a student may be transported in a 
 37.25  type III vehicle; 
 37.26     (11) operating rules and procedures; 
 37.27     (12) provisions for annual bus driver in-service training 
 37.28  and evaluation; 
 37.29     (13) emergency procedures; and 
 37.30     (14) a system for maintaining and inspecting equipment; 
 37.31     (15) requirements of the school district, if any, that 
 37.32  exceed state law minimum requirements for school bus operations; 
 37.33  and 
 37.34     (16) requirements for basic first aid training, which shall 
 37.35  include the Heimlich maneuver and procedures for dealing with 
 37.36  obstructed airways, shock, bleeding, and seizures. 
 38.1      School districts are encouraged to use the model policy 
 38.2   developed by the Minnesota school boards association, the 
 38.3   department of public safety, and the department of education, as 
 38.4   well as the current edition of the "National Standards for 
 38.5   School Buses and Operations" published by the National Safety 
 38.6   Council, in developing safety policies.  Each district shall 
 38.7   submit a copy of its policy under this subdivision to the school 
 38.8   bus safety advisory committee no later than August 1, 1994, and 
 38.9   review and make appropriate amendments annually by August 
 38.10  1.  Each district shall review its policy annually and make 
 38.11  appropriate amendments, which must be submitted to the school 
 38.12  bus safety advisory committee within one month of approval by 
 38.13  the school board. 
 38.14     Sec. 5.  Minnesota Statutes 1994, section 123.805, 
 38.15  subdivision 2, is amended to read: 
 38.16     Subd. 2.  [SCHOOL TRANSPORTATION SAFETY DIRECTOR.] Each 
 38.17  school board shall designate a school transportation safety 
 38.18  director to oversee and implement pupil transportation safety 
 38.19  policies.  The director shall have day-to-day responsibility for 
 38.20  pupil transportation safety within the district, including 
 38.21  transportation of nonpublic school children when provided by the 
 38.22  district. 
 38.23     Sec. 6.  Minnesota Statutes 1994, section 124.223, 
 38.24  subdivision 1, is amended to read: 
 38.25     Subdivision 1.  [TO AND FROM SCHOOL; BETWEEN SCHOOLS.] (a) 
 38.26  State transportation aid is authorized for transportation or 
 38.27  board of resident elementary pupils who reside one mile or more 
 38.28  from the public schools which they could attend; transportation 
 38.29  or board of resident secondary pupils who reside two miles or 
 38.30  more from the public schools which they could attend; 
 38.31  transportation to and from schools the resident pupils attend 
 38.32  according to a program approved by the commissioner of 
 38.33  education, or between the schools the resident pupils attend for 
 38.34  instructional classes, or to and from service learning programs; 
 38.35  transportation of resident elementary pupils who reside one mile 
 38.36  or more from a nonpublic school actually attended; 
 39.1   transportation of resident secondary pupils who reside two miles 
 39.2   or more from a nonpublic school actually attended; but with 
 39.3   respect to transportation of pupils to nonpublic schools 
 39.4   actually attended, only to the extent permitted by sections 
 39.5   123.76 to 123.79; transportation of resident pupils to and from 
 39.6   language immersion programs; transportation of a pupil who is a 
 39.7   custodial parent and that pupil's child between the pupil's home 
 39.8   and the child care provider and between the provider and the 
 39.9   school, if the home and provider are within the attendance area 
 39.10  of the school.  State transportation aid is not authorized for 
 39.11  Late transportation home from school for pupils involved in 
 39.12  after school activities.  State transportation aid is not 
 39.13  authorized for summer program transportation except as provided 
 39.14  in subdivision 8. 
 39.15     (b) For the purposes of this subdivision, a district may 
 39.16  designate a licensed day care facility, respite care facility, 
 39.17  the residence of a relative, or the residence of a person chosen 
 39.18  by the pupil's parent or guardian as the home of a pupil for 
 39.19  part or all of the day, if requested by the pupil's parent or 
 39.20  guardian and if that facility or residence is within the 
 39.21  attendance area of the school the pupil attends. 
 39.22     (c) State transportation aid is authorized for 
 39.23  transportation to and from school of an elementary pupil who 
 39.24  moves during the school year within an area designated by the 
 39.25  district as a mobility zone, but only for the remainder of the 
 39.26  school year.  The attendance areas of schools in a mobility zone 
 39.27  must be contiguous.  To be in a mobility zone, a school must 
 39.28  meet both of the following requirements: 
 39.29     (1) more than 50 percent of the pupils enrolled in the 
 39.30  school are eligible for free or reduced school lunch; and 
 39.31     (2) the pupil withdrawal rate for the last year is more 
 39.32  than 12 percent. 
 39.33     (d) A pupil withdrawal rate is determined by dividing: 
 39.34     (1) the sum of the number of pupils who withdraw from the 
 39.35  school, during the school year, and the number of pupils 
 39.36  enrolled in the school as a result of transportation provided 
 40.1   under this paragraph, by 
 40.2      (2) the number of pupils enrolled in the school. 
 40.3      (e) The district may establish eligibility requirements for 
 40.4   individual pupils to receive transportation in the mobility zone.
 40.5      Sec. 7.  Minnesota Statutes 1994, section 124.223, 
 40.6   subdivision 7, is amended to read: 
 40.7      Subd. 7.  [FARIBAULT STATE ACADEMIES TRANSPORTATION TO AND 
 40.8   FROM BOARD AND LODGING FACILITIES.] State transportation aid is 
 40.9   authorized for transportation for residents resident pupils with 
 40.10  disabilities to and from the Minnesota state academy for the 
 40.11  deaf or the Minnesota state academy for the blind board and 
 40.12  lodging facilities when the pupil is boarded and lodged for 
 40.13  educational purposes. 
 40.14     Sec. 8.  Minnesota Statutes 1994, section 124.225, 
 40.15  subdivision 1, is amended to read: 
 40.16     Subdivision 1.  [DEFINITIONS.] For purposes of this 
 40.17  section, the terms defined in this subdivision have the meanings 
 40.18  given to them. 
 40.19     (a) "FTE" means a full-time equivalent pupil whose 
 40.20  transportation is authorized for aid purposes by section 124.223.
 40.21     (b) "Authorized cost for regular transportation" means the 
 40.22  sum of: 
 40.23     (1) all expenditures for transportation in the regular 
 40.24  category, as defined in paragraph (c), clause (1), for which aid 
 40.25  is authorized in section 124.223, plus 
 40.26     (2) an amount equal to one year's depreciation on the 
 40.27  district's school bus fleet and mobile units computed on a 
 40.28  straight line basis at the rate of 15 percent per year for 
 40.29  districts operating a program under section 121.585 for grades 1 
 40.30  to 12 for all students in the district and 12-1/2 percent per 
 40.31  year for other districts of the cost of the fleet, plus 
 40.32     (3) an amount equal to one year's depreciation on district 
 40.33  school buses reconditioned by the department of corrections 
 40.34  computed on a straight line basis at the rate of 33-1/3 percent 
 40.35  per year of the cost to the district of the reconditioning, plus 
 40.36     (4) an amount equal to one year's depreciation on the 
 41.1   district's type three school buses, as defined in section 
 41.2   169.01, subdivision 6, clause (5), which must be used a majority 
 41.3   of the time for the purposes in sections 124.223 and 124.226, 
 41.4   subdivisions 5, 8, and 9, and were purchased after July 1, 1982, 
 41.5   for authorized transportation of pupils, with the prior approval 
 41.6   of the commissioner, computed on a straight line basis at the 
 41.7   rate of 20 percent per year of the cost of the type three school 
 41.8   buses.  
 41.9      (c) "Transportation category" means a category of 
 41.10  transportation service provided to pupils as follows:  
 41.11     (1) Regular transportation is transportation services 
 41.12  provided during the regular school year under section 124.223, 
 41.13  subdivisions 1 and 2, excluding the following transportation 
 41.14  services provided under section 124.223, subdivision 1:  
 41.15  transportation between schools; transportation to and from 
 41.16  service learning programs; noon transportation to and from 
 41.17  school for kindergarten pupils attending half-day sessions; 
 41.18  transportation of pupils to and from schools located outside 
 41.19  their normal attendance areas under the provisions of a plan for 
 41.20  desegregation mandated by the state board of education or under 
 41.21  court order; and transportation of elementary pupils to and from 
 41.22  school within a mobility zone. 
 41.23     (2) Nonregular transportation is transportation services 
 41.24  provided under section 124.223, subdivision 1, that are excluded 
 41.25  from the regular category and transportation services provided 
 41.26  under section 124.223, subdivisions 3, 4, 5, 6, 7, 8, 9, and 10. 
 41.27     (3) Excess transportation is transportation to and from 
 41.28  school during the regular school year for secondary pupils 
 41.29  residing at least one mile but less than two miles from the 
 41.30  public school they could attend or from the nonpublic school 
 41.31  actually attended, and transportation to and from school for 
 41.32  pupils residing less than one mile from school who are 
 41.33  transported because of extraordinary traffic, drug, or crime 
 41.34  hazards. 
 41.35     (4) Desegregation transportation is transportation within 
 41.36  and outside of the district during the regular school year of 
 42.1   pupils to and from schools located outside their normal 
 42.2   attendance areas under a plan for desegregation mandated by the 
 42.3   state board or under court order.  
 42.4      (5) Handicapped transportation is transportation provided 
 42.5   under section 124.223, subdivision 4, for pupils with a 
 42.6   disability between home or a respite care facility and school or 
 42.7   other buildings where special instruction required by sections 
 42.8   120.17 and 120.1701 is provided. 
 42.9      (d) "Mobile unit" means a vehicle or trailer designed to 
 42.10  provide facilities for educational programs and services, 
 42.11  including diagnostic testing, guidance and counseling services, 
 42.12  and health services.  A mobile unit located off nonpublic school 
 42.13  premises is a neutral site as defined in section 123.932, 
 42.14  subdivision 9. 
 42.15     (e) "Current year" means the school year for which aid will 
 42.16  be paid.  
 42.17     (f) "Base year" means the second school year preceding the 
 42.18  school year for which aid will be paid.  
 42.19     (g) "Base cost" means the ratio of: 
 42.20     (1) the sum of the authorized cost in the base year for 
 42.21  regular transportation as defined in paragraph (b) plus the 
 42.22  actual cost in the base year for excess transportation as 
 42.23  defined in paragraph (c); 
 42.24     (2) to the sum of the number of weighted FTE's in the 
 42.25  regular and excess categories in the base year. 
 42.26     (h) "Pupil weighting factor" for the excess transportation 
 42.27  category for a school district means the lesser of one, or the 
 42.28  result of the following computation: 
 42.29     (1) Divide the square mile area of the school district by 
 42.30  the number of FTE's in the regular and excess categories in the 
 42.31  base year. 
 42.32     (2) Raise the result in clause (1) to the one-fifth power. 
 42.33     (3) Divide four-tenths by the result in clause (2). 
 42.34     The pupil weighting factor for the regular transportation 
 42.35  category is one.  
 42.36     (i) "Weighted FTE's"  means the number of FTE's in each 
 43.1   transportation category multiplied by the pupil weighting factor 
 43.2   for that category. 
 43.3      (j) "Sparsity index" for a school district means the 
 43.4   greater of .005 or the ratio of the square mile area of the 
 43.5   school district to the sum of the number of weighted FTE's by 
 43.6   the district in the regular and excess categories in the base 
 43.7   year. 
 43.8      (k) "Density index" for a school district means the greater 
 43.9   of one or the result obtained by subtracting the product of the 
 43.10  district's sparsity index times 20 from two. 
 43.11     (l) "Contract transportation index" for a school district 
 43.12  means the greater of one or the result of the following 
 43.13  computation: 
 43.14     (1) Multiply the district's sparsity index by 20. 
 43.15     (2) Select the lesser of one or the result in clause (1). 
 43.16     (3) Multiply the district's percentage of regular FTE's in 
 43.17  the current year using vehicles that are not owned by the school 
 43.18  district by the result in clause (2). 
 43.19     (m) "Adjusted predicted base cost" means the predicted base 
 43.20  cost as computed in subdivision 3a as adjusted under subdivision 
 43.21  7a. 
 43.22     (n) "Regular transportation allowance" means the adjusted 
 43.23  predicted base cost, inflated and adjusted under subdivision 7b. 
 43.24     Sec. 9.  Minnesota Statutes 1994, section 124.225, 
 43.25  subdivision 3a, is amended to read: 
 43.26     Subd. 3a.  [PREDICTED BASE COST.] A district's predicted 
 43.27  base cost equals the result of the following computation:  
 43.28     (a) Multiply the transportation formula allowance by the 
 43.29  district's sparsity index raised to the one-fourth power.  The 
 43.30  transportation formula allowance is $447 $477 for the 
 43.31  1991-1992 1993-1994 base year and $463 $491 for the 1992-1993 
 43.32  1994-1995 base year.  
 43.33     (b) Multiply the result in paragraph (a) by the district's 
 43.34  density index raised to the 35/100 1/2 power.  
 43.35     (c) Multiply the result in paragraph (b) by the district's 
 43.36  contract transportation index raised to the 1/20 power. 
 44.1      Sec. 10.  Minnesota Statutes 1994, section 124.225, 
 44.2   subdivision 7b, is amended to read: 
 44.3      Subd. 7b.  [INFLATION FACTORS.] (a) The adjusted predicted 
 44.4   base cost determined for a district under subdivision 7a for the 
 44.5   base year must be increased by 2.35 zero percent to determine 
 44.6   the district's regular transportation allowance for the 
 44.7   1993-1994 1995-1996 school year and by 3.425 zero percent to 
 44.8   determine the district's regular transportation allowance for 
 44.9   the 1994-1995 1996-1997 school year, but. 
 44.10     (b) Notwithstanding paragraph (a), the regular 
 44.11  transportation allowance for a district for the 1995-1996 school 
 44.12  year and the 1996-1997 school year cannot be less than the 
 44.13  district's minimum regular transportation allowance according to 
 44.14  Minnesota Statutes 1990, section 124.225, subdivision 1, 
 44.15  paragraph (t). 
 44.16     (c) Notwithstanding paragraph (a), the regular 
 44.17  transportation allowance for a district for the 1997-1998 school 
 44.18  year and later cannot be less than the district's regular 
 44.19  transportation allowance for the 1996-1997 school year. 
 44.20     Sec. 11.  Minnesota Statutes 1994, section 124.225, 
 44.21  subdivision 7d, is amended to read: 
 44.22     Subd. 7d.  [TRANSPORTATION REVENUE.] Transportation revenue 
 44.23  for each district equals the sum of the district's regular 
 44.24  transportation revenue and the district's nonregular 
 44.25  transportation revenue. 
 44.26     (a) The regular transportation revenue for each district 
 44.27  equals the district's regular transportation allowance according 
 44.28  to subdivision 7b times the sum of the number of FTE's by the 
 44.29  district in the regular, desegregation, and handicapped 
 44.30  categories in the current school year. 
 44.31     (b) For the 1992-1993 and later school years 1995-1996 
 44.32  school year, the nonregular transportation revenue for each 
 44.33  district equals the lesser of the district's actual cost in the 
 44.34  current school year for nonregular transportation services or 
 44.35  the product of the district's actual cost in the base year for 
 44.36  nonregular transportation services as defined for the current 
 45.1   year in subdivision 1, paragraph (c), times the ratio of the 
 45.2   district's average daily membership for the current year to the 
 45.3   district's average daily membership for the base year according 
 45.4   to section 124.17, subdivision 2, times the nonregular 
 45.5   transportation inflation factor for the current year, minus the 
 45.6   amount of regular transportation revenue attributable to FTE's 
 45.7   in the desegregation and handicapped categories in the current 
 45.8   school year, plus the excess nonregular transportation revenue 
 45.9   for the current year according to subdivision 7e.  The 
 45.10  nonregular transportation inflation factor is 1.0435 1.0 for the 
 45.11  1993-1994 1995-1996 school year and 1.03425 for the 1994-1995 
 45.12  school year.  
 45.13     (c) For the 1996-1997 school year, the nonregular 
 45.14  transportation revenue for each district equals the lesser of: 
 45.15     (1) the district's actual cost in the current school year 
 45.16  for nonregular transportation services, excess transportation 
 45.17  services, and late activity transportation services; or 
 45.18     (2) the product of the district's actual cost in the base 
 45.19  year for nonregular transportation services as defined for the 
 45.20  current year in subdivision 1, paragraph (c), 
 45.21  times the ratio of the district's average daily membership for 
 45.22  the current year to the district's average daily membership for 
 45.23  the base year according to section 124.17, subdivision 2, times 
 45.24  the nonregular transportation inflation factor for the current 
 45.25  year, minus the amount of regular transportation revenue 
 45.26  attributable to FTE's in the desegregation and handicapped 
 45.27  categories in the current school year, plus the excess 
 45.28  nonregular transportation revenue for the current year according 
 45.29  to subdivision 7e.  
 45.30     The nonregular transportation inflation factor is 1.0 for 
 45.31  the 1996-1997 school year.  
 45.32     (d) For the 1997-1998 school year and later, the nonregular 
 45.33  transportation revenue for each district equals the lesser of: 
 45.34     (1) the district's actual cost in the current school year 
 45.35  for nonregular transportation services, excess transportation 
 45.36  services, and late activity transportation services; or 
 46.1      (2) the product of the greater of: 
 46.2      (i) the district's actual cost in the base year for 
 46.3   nonregular transportation services as defined for the current 
 46.4   year in subdivision 1, paragraph (c); or 
 46.5      (ii) the lesser of the district's actual cost in the base 
 46.6   year for nonregular transportation services, excess 
 46.7   transportation services, and late activity transportation 
 46.8   services or the district's actual cost in the 1994-1995 school 
 46.9   year for nonregular transportation services, 
 46.10  times the ratio of the district's average daily membership for 
 46.11  the current year to the district's average daily membership for 
 46.12  the base year according to section 124.17, subdivision 2, times 
 46.13  the nonregular transportation inflation factor for the current 
 46.14  year, minus the amount of regular transportation revenue 
 46.15  attributable to FTE's in the desegregation and handicapped 
 46.16  categories in the current school year, plus the excess 
 46.17  nonregular transportation revenue for the current year according 
 46.18  to subdivision 7e. 
 46.19     The nonregular transportation inflation factor is 1.0 for 
 46.20  the 1997-1998 and later school years. 
 46.21     Sec. 12.  Minnesota Statutes 1994, section 124.225, 
 46.22  subdivision 7f, is amended to read: 
 46.23     Subd. 7f.  [RESERVED REVENUE FOR TRANSPORTATION SAFETY.] A 
 46.24  district shall reserve an amount equal to the greater of 
 46.25  $1,000 $500 or one-half of one percent of the sum of the 
 46.26  district's regular transportation revenue according to 
 46.27  subdivision 7d, paragraph (a), and nonregular transportation 
 46.28  revenue according to subdivision 7d, paragraph (b), for that 
 46.29  school year to provide student transportation safety programs 
 46.30  under section 123.799. 
 46.31     Sec. 13.  Minnesota Statutes 1994, section 124.225, 
 46.32  subdivision 8a, is amended to read: 
 46.33     Subd. 8a.  [TRANSPORTATION AID.] (a) A district's 
 46.34  transportation aid equals the product of: 
 46.35     (1) the difference between the transportation revenue and 
 46.36  the sum of: 
 47.1      (i) the maximum basic transportation levy for that school 
 47.2   year under section 275.125 124.226, subdivision 5 1, plus 
 47.3      (ii) the maximum nonregular transportation levy for that 
 47.4   school year under section 124.226, subdivision 4, plus 
 47.5      (iii) the contracted services aid reduction under 
 47.6   subdivision 8k, 
 47.7      (2) times the ratio of the sum of the actual amounts levied 
 47.8   under section 124.226, subdivisions 1 and 4, to the sum of the 
 47.9   permitted maximum levies under section 124.226, subdivisions 1 
 47.10  and 4. 
 47.11     (b) If the total appropriation for transportation aid for 
 47.12  any fiscal year is insufficient to pay all districts the full 
 47.13  amount of aid earned, the department of education shall reduce 
 47.14  each district's aid in proportion to the number of resident 
 47.15  pupils in average daily membership in the district to the state 
 47.16  total average daily membership, and shall reduce the 
 47.17  transportation levy of off-formula districts in the same 
 47.18  proportion. 
 47.19     Sec. 14.  Minnesota Statutes 1994, section 124.225, 
 47.20  subdivision 8m, is amended to read: 
 47.21     Subd. 8m.  [TRANSPORTATION SAFETY AID.] A district's 
 47.22  transportation safety aid equals the district's reserved revenue 
 47.23  for transportation safety under subdivision 7f for that school 
 47.24  year.  Failure of a school district to comply with the reporting 
 47.25  requirements of section 123.7991, 123.805, 169.452, 169.4582, or 
 47.26  171.321, subdivision 5, may result in a withholding of that 
 47.27  district's transportation safety aid for that school year. 
 47.28     Sec. 15.  Minnesota Statutes 1994, section 124.226, 
 47.29  subdivision 1, is amended to read: 
 47.30     Subdivision 1.  [BASIC TRANSPORTATION.] Each year, a school 
 47.31  district may levy for school transportation services an amount 
 47.32  not to exceed the amount raised by the basic transportation tax 
 47.33  rate times the adjusted net tax capacity of the district for the 
 47.34  preceding year.  The commissioner of education shall establish 
 47.35  the basic transportation tax rate by July 1 of each year for 
 47.36  levies payable in the following year.  The basic transportation 
 48.1   tax rate shall be a rate, rounded up to the nearest hundredth of 
 48.2   a percent, that, when applied to the adjusted net tax capacity 
 48.3   of taxable property for all districts, raises the amount 
 48.4   specified in this subdivision.  The basic transportation tax 
 48.5   rate for transportation shall be the rate that 
 48.6   raises $64,300,000 for fiscal year 1993 and $68,000,000 for 
 48.7   fiscal year 1994 and subsequent fiscal years.  The basic 
 48.8   transportation tax rate certified by the commissioner of 
 48.9   education must not be changed due to changes or corrections made 
 48.10  to a district's adjusted net tax capacity after the tax rate has 
 48.11  been certified. 
 48.12     Sec. 16.  Minnesota Statutes 1994, section 124.226, 
 48.13  subdivision 3, is amended to read: 
 48.14     Subd. 3.  [OFF-FORMULA ADJUSTMENT.] In a district if the 
 48.15  basic transportation levy under subdivision 1 attributable to 
 48.16  that fiscal year is more than the difference between (1) the 
 48.17  district's transportation revenue under section 124.225, 
 48.18  subdivision 7d, and (2) the sum of the district's maximum 
 48.19  nonregular levy under subdivision 4 and the district's 
 48.20  contracted services aid reduction under section 124.225, 
 48.21  subdivision 8k, and the amount of any reduction due to 
 48.22  insufficient appropriation under section 124.225, subdivision 
 48.23  8a, the district's transportation levy in the second year 
 48.24  following each fiscal year must be reduced by the difference 
 48.25  between the amount of the excess and the amount of the aid 
 48.26  reduction for the same fiscal year according to subdivision 3a. 
 48.27     Sec. 17.  Minnesota Statutes 1994, section 126.15, 
 48.28  subdivision 2, is amended to read: 
 48.29     Subd. 2.  [APPOINTMENT OF MEMBERS.] Unless the parents or 
 48.30  guardian of a pupil object in writing to the school authorities 
 48.31  to the appointment of the pupil on a school safety patrol, it is 
 48.32  lawful for any pupil over nine years of age to be appointed and 
 48.33  designated as a member thereof, provided that in any school in 
 48.34  which there are no pupils who have attained such age any pupil 
 48.35  in the highest grade therein may be so appointed and 
 48.36  designated.  School authorities may also appoint and designate 
 49.1   nonpupil adults as members of a school safety patrol on a 
 49.2   voluntary or for-hire basis. 
 49.3      Sec. 18.  Minnesota Statutes 1994, section 169.01, 
 49.4   subdivision 6, is amended to read: 
 49.5      Subd. 6.  [SCHOOL BUS.] "School bus" means a motor vehicle 
 49.6   used to transport pupils to or from a school defined in section 
 49.7   120.101, or to or from school-related activities, by the school 
 49.8   or a school district, or by someone under an agreement with the 
 49.9   school or a school district.  A school bus does not include a 
 49.10  motor vehicle transporting children to or from school for which 
 49.11  parents or guardians receive direct compensation from a school 
 49.12  district, a motor coach operating under charter carrier 
 49.13  authority, or a transit bus providing services as defined in 
 49.14  section 174.22, subdivision 7, or a vehicle otherwise qualifying 
 49.15  as a type III vehicle under paragraph (5), when the vehicle is 
 49.16  properly registered and insured and being driven by an employee 
 49.17  or agent of a school district for nonscheduled transportation.  
 49.18  A school bus may be type A, type B, type C, or type D, or type 
 49.19  III as follows:  
 49.20     (1) A "type A school bus" is a conversion or body 
 49.21  constructed upon a van-type compact truck or a front-section 
 49.22  vehicle, with a gross vehicle weight rating of 10,000 pounds or 
 49.23  less, designed for carrying more than ten persons. 
 49.24     (2) A "type B school bus" is a conversion or body 
 49.25  constructed and installed upon a van or front-section vehicle 
 49.26  chassis, or stripped chassis, with a gross vehicle weight rating 
 49.27  of more than 10,000 pounds, designed for carrying more than ten 
 49.28  persons.  Part of the engine is beneath or behind the windshield 
 49.29  and beside the driver's seat.  The entrance door is behind the 
 49.30  front wheels. 
 49.31     (3) A "type C school bus" is a body installed upon a flat 
 49.32  back cowl chassis with a gross vehicle weight rating of more 
 49.33  than 10,000 pounds, designated for carrying more than ten 
 49.34  persons.  All of the engine is in front of the windshield and 
 49.35  the entrance door is behind the front wheels. 
 49.36     (4) A "type D school bus" is a body installed upon a 
 50.1   chassis, with the engine mounted in the front, midship or rear, 
 50.2   with a gross vehicle weight rating of more than 10,000 pounds, 
 50.3   designed for carrying more than ten persons.  The engine may be 
 50.4   behind the windshield and beside the driver's seat; it may be at 
 50.5   the rear of the bus, behind the rear wheels, or midship between 
 50.6   the front and rear axles.  The entrance door is ahead of the 
 50.7   front wheels. 
 50.8      (5) Type III school buses and type III Head Start buses are 
 50.9   restricted to passenger cars, station wagons, vans, and buses 
 50.10  having a maximum manufacturer's rated seating capacity of ten 
 50.11  people, including the driver, and a gross vehicle weight rating 
 50.12  of 10,000 pounds or less.  In this subdivision, "gross vehicle 
 50.13  weight rating" means the value specified by the manufacturer as 
 50.14  the loaded weight of a single vehicle.  A "type III school bus" 
 50.15  and "type III Head Start bus" must not be outwardly equipped and 
 50.16  identified as a type A, B, C, or D school bus or type A, B, C, 
 50.17  or D Head Start bus. 
 50.18     Sec. 19.  Minnesota Statutes 1994, section 169.21, 
 50.19  subdivision 2, is amended to read: 
 50.20     Subd. 2.  [RIGHTS IN ABSENCE OF SIGNALS.] (a) Where 
 50.21  traffic-control signals are not in place or in operation the 
 50.22  driver of a vehicle shall yield the right-of-way, slowing down 
 50.23  or stopping if need be to so yield, to a pedestrian crossing the 
 50.24  roadway within a crosswalk but no pedestrian shall suddenly 
 50.25  leave a curb or other place of safety and walk or run into the 
 50.26  path of a vehicle which is so close that it is impossible for 
 50.27  the driver to yield.  This provision shall not apply under the 
 50.28  conditions as otherwise provided in this subdivision. 
 50.29     (b) When any vehicle is stopped at a marked crosswalk or at 
 50.30  any unmarked crosswalk at an intersection to permit a pedestrian 
 50.31  to cross the roadway, the driver of any other vehicle 
 50.32  approaching from the rear shall not overtake and pass the 
 50.33  stopped vehicle. 
 50.34     (c) It is unlawful for any person to drive a motor vehicle 
 50.35  through a column of school children crossing a street or highway 
 50.36  or past a member of a school safety patrol or adult crossing 
 51.1   guard, while the member of the school safety patrol or adult 
 51.2   crossing guard is directing the movement of children across a 
 51.3   street or highway and while the school safety patrol member or 
 51.4   adult crossing guard is holding an official signal in the stop 
 51.5   position.  A person who violates this paragraph is guilty of a 
 51.6   misdemeanor.  A person who violates this paragraph a second or 
 51.7   subsequent time within one year of a previous conviction under 
 51.8   this paragraph is guilty of a gross misdemeanor. 
 51.9      Sec. 20.  Minnesota Statutes 1994, section 169.444, 
 51.10  subdivision 2, is amended to read: 
 51.11     Subd. 2.  [VIOLATIONS BY DRIVERS; PENALTIES.] (a) A person 
 51.12  who fails to stop a vehicle or to keep it stopped, as required 
 51.13  in subdivision 1, is guilty of a misdemeanor punishable by a 
 51.14  fine of not less than $300. 
 51.15     (b) A person is guilty of a gross misdemeanor if the person 
 51.16  fails to stop a motor vehicle or to keep it stopped, as required 
 51.17  in subdivision 1, and commits either or both of the following 
 51.18  acts: 
 51.19     (1) passes or attempts to pass the school bus in a motor 
 51.20  vehicle on the right-hand, passenger-door side of the bus; or 
 51.21     (2) passes or attempts to pass the school bus in a motor 
 51.22  vehicle when a school child is outside of and on the street or 
 51.23  highway used by the school bus or on the adjacent sidewalk. 
 51.24     Sec. 21.  Minnesota Statutes 1994, section 169.4502, 
 51.25  subdivision 4, is amended to read: 
 51.26     Subd. 4.  [COLOR.] Fenders may be painted black.  The hood 
 51.27  may be painted nonreflective black or nonreflective yellow.  The 
 51.28  grill may be manufacturer's standard color or chrome. 
 51.29     Sec. 22.  Minnesota Statutes 1994, section 169.4503, is 
 51.30  amended by adding a subdivision to read: 
 51.31     Subd. 10a.  [EMERGENCY EQUIPMENT; FIRST AID KITS.] A first 
 51.32  aid kit, and a body fluids cleanup kit is required regardless of 
 51.33  the age of the vehicle.  They must be contained in removable, 
 51.34  moisture- and dust-proof containers mounted in an accessible 
 51.35  place within the driver's compartment of the school bus and must 
 51.36  be marked to indicate their identity and location. 
 52.1      Sec. 23.  Minnesota Statutes 1994, section 169.451, is 
 52.2   amended by adding a subdivision to read: 
 52.3      Subd. 5.  [RANDOM SPOT INSPECTIONS.] In addition to the 
 52.4   annual inspection, the Minnesota state patrol has authority to 
 52.5   conduct random, unannounced spot inspections of any school bus 
 52.6   or Head Start bus being operated within the state at the 
 52.7   location where the bus is kept when not in operation to 
 52.8   ascertain whether its construction, design, equipment, and color 
 52.9   comply with all provisions of law, including the Minnesota 
 52.10  school bus equipment standards in sections 169.4501 to 169.4504. 
 52.11     Sec. 24.  [169.4511] [SCHOOL BUS ACCIDENTS; REINSPECTION.] 
 52.12     Subdivision 1.  [POSTCRASH INSPECTION.] A peace officer 
 52.13  responding to an accident involving a school bus or Head Start 
 52.14  bus must immediately notify the state patrol if the accident 
 52.15  results in death or serious personal injury on the school bus, 
 52.16  or property damage to the school bus of an apparent extent of 
 52.17  more than $4,400.  No person shall drive or knowingly permit or 
 52.18  cause to be driven, for the purpose of transporting students, 
 52.19  any school bus or Head Start bus after such an accident unless 
 52.20  the vehicle: 
 52.21     (1) has been inspected by the Minnesota state patrol and 
 52.22  the state patrol has determined that the vehicle may safely be 
 52.23  operated; or 
 52.24     (2) a waiver has been granted under subdivision 2. 
 52.25     A violation of this section is a misdemeanor. 
 52.26     Subd. 2.  [WAIVER.] A state trooper or designee of the 
 52.27  Minnesota state patrol called to the scene of an accident by a 
 52.28  responding peace officer under subdivision 1 may waive the 
 52.29  inspection requirement of subdivision 1 if the trooper or state 
 52.30  patrol designee determines that a postcrash inspection is not 
 52.31  needed or cannot be accomplished without unreasonable delay.  
 52.32  The trooper or state patrol designee granting a waiver must 
 52.33  provide to the driver of the school bus for which the waiver is 
 52.34  granted a written statement that the inspection has been 
 52.35  waived.  The written statement must include the incident report 
 52.36  number assigned to the accident by the state patrol. 
 53.1      Sec. 25.  Minnesota Statutes 1994, section 169.452, is 
 53.2   amended to read: 
 53.3      169.452 [ACCIDENT AND SERIOUS INCIDENT REPORTING.] 
 53.4      The department of public safety shall develop uniform 
 53.5   definitions of a school bus accident, an incident of serious 
 53.6   misconduct, and an incident that results in personal injury or 
 53.7   death.  The department shall determine what type of information 
 53.8   on school bus accidents and incidents, including criminal 
 53.9   conduct, and bus driver dismissals for cause should be collected 
 53.10  and develop a uniform accident and incident reporting form to 
 53.11  collect those data, including data relating to type III 
 53.12  vehicles, statewide.  In addition to the form, the department 
 53.13  shall have an alternative method of reporting that allows school 
 53.14  districts to use computer technology to provide the required 
 53.15  information.  School districts shall report the information 
 53.16  required by the department using either format.  A school 
 53.17  district must not be charged for reporting forms or reporting 
 53.18  procedures under this section.  Data collected with this 
 53.19  reporting form under this section shall be analyzed to help 
 53.20  develop accident, crime, and misconduct prevention 
 53.21  programs.  This section is not subject to chapter 14. 
 53.22     Sec. 26.  Minnesota Statutes 1994, section 169.454, 
 53.23  subdivision 5, is amended to read: 
 53.24     Subd. 5.  [FIRST AID KIT.] A minimum of a ten-unit first 
 53.25  aid kit, and a body fluids cleanup kit is required.  The bus 
 53.26  They must have a be contained in removable, moisture- and 
 53.27  dust-proof first aid kit containers mounted in an accessible 
 53.28  place within the driver's compartment and must be marked to 
 53.29  indicate its their identity and location. 
 53.30     Sec. 27.  Minnesota Statutes 1994, section 169.454, is 
 53.31  amended by adding a subdivision to read: 
 53.32     Subd. 13.  [EXEMPTION.] When a vehicle otherwise qualifying 
 53.33  as a type III vehicle under section 169.01, subdivision 6, 
 53.34  paragraph (5), whether owned and operated by a school district 
 53.35  or privately owned and operated, is used to transport school 
 53.36  children in a nonscheduled situation, it shall be exempt from 
 54.1   the vehicle requirements of this section and the licensing 
 54.2   requirements of section 171.321, if the vehicle is properly 
 54.3   registered and insured and operated by an employee or agent of a 
 54.4   school district with a valid driver's license. 
 54.5      Sec. 28.  Minnesota Statutes 1994, section 171.01, 
 54.6   subdivision 21, is amended to read: 
 54.7      Subd. 21.  [SCHOOL BUS.] "School bus" means a motor vehicle 
 54.8   used to transport pupils to or from a school defined in section 
 54.9   120.101, or to or from school-related activities, by the school 
 54.10  or a school district or by someone under an agreement with the 
 54.11  school or a school district.  A school bus does not include a 
 54.12  motor vehicle transporting children to or from school for which 
 54.13  parents or guardians receive direct compensation from a school 
 54.14  district, a motor coach operating under charter carrier 
 54.15  authority, or a transit bus providing services as defined in 
 54.16  section 174.22, subdivision 7, or a vehicle otherwise qualifying 
 54.17  as a type III vehicle under section 169.01, subdivision 6, 
 54.18  paragraph (5), when the vehicle is properly registered and 
 54.19  insured and being driven by an employee or agent of a school 
 54.20  district for nonscheduled transportation. 
 54.21     Sec. 29.  Minnesota Statutes 1994, section 171.18, 
 54.22  subdivision 1, is amended to read: 
 54.23     Subdivision 1.  [OFFENSES.] The commissioner may suspend 
 54.24  the license of a driver without preliminary hearing upon a 
 54.25  showing by department records or other sufficient evidence that 
 54.26  the licensee: 
 54.27     (1) has committed an offense for which mandatory revocation 
 54.28  of license is required upon conviction; 
 54.29     (2) has been convicted by a court for violating a provision 
 54.30  of chapter 169 or an ordinance regulating traffic and department 
 54.31  records show that the violation contributed in causing an 
 54.32  accident resulting in the death or personal injury of another, 
 54.33  or serious property damage; 
 54.34     (3) is an habitually reckless or negligent driver of a 
 54.35  motor vehicle; 
 54.36     (4) is an habitual violator of the traffic laws; 
 55.1      (5) is incompetent to drive a motor vehicle as determined 
 55.2   in a judicial proceeding; 
 55.3      (6) has permitted an unlawful or fraudulent use of the 
 55.4   license; 
 55.5      (7) has committed an offense in another state that, if 
 55.6   committed in this state, would be grounds for suspension; 
 55.7      (8) has committed a violation of section 169.444, 
 55.8   subdivision 2, paragraph (a), within five years of a prior 
 55.9   conviction under that section; 
 55.10     (9) has committed a violation of section 171.22, except 
 55.11  that the commissioner may not suspend a person's driver's 
 55.12  license based solely on the fact that the person possessed a 
 55.13  fictitious or fraudulently altered Minnesota identification 
 55.14  card; 
 55.15     (10) has failed to appear in court as provided in section 
 55.16  169.92, subdivision 4; or 
 55.17     (11) has failed to report a medical condition that, if 
 55.18  reported, would have resulted in cancellation of driving 
 55.19  privileges. 
 55.20     However, an action taken by the commissioner under clause 
 55.21  (2) or (5) must conform to the recommendation of the court when 
 55.22  made in connection with the prosecution of the licensee. 
 55.23     Sec. 30.  Minnesota Statutes 1994, section 171.321, 
 55.24  subdivision 3, is amended to read: 
 55.25     Subd. 3.  [STUDY OF APPLICANT.] (a) Before issuing or 
 55.26  renewing a school bus endorsement, the commissioner shall 
 55.27  conduct a criminal and driver's license records check of the 
 55.28  applicant.  The commissioner may also conduct the check at any 
 55.29  time while a person is so licensed.  The check shall consist of 
 55.30  a criminal records check of the state criminal records 
 55.31  repository and a check of the driver's license records system.  
 55.32  If the applicant has resided in Minnesota for less than five 
 55.33  years, the check shall also include a criminal records check of 
 55.34  information from the state law enforcement agencies in the 
 55.35  states where the person resided during the five years before 
 55.36  moving to Minnesota, and of the national criminal records 
 56.1   repository including the criminal justice data communications 
 56.2   network.  The applicant's failure to cooperate with the 
 56.3   commissioner in conducting the records check is reasonable cause 
 56.4   to deny an application or cancel a school bus endorsement.  The 
 56.5   commissioner may not release the results of the records check to 
 56.6   any person except the applicant. 
 56.7      (b) The commissioner may issue to an otherwise qualified 
 56.8   applicant a temporary school bus endorsement, effective for no 
 56.9   more than 120 days, upon presentation of (1) an affidavit by the 
 56.10  applicant that the applicant has not been convicted of a 
 56.11  disqualifying offense and (2) a criminal history check from each 
 56.12  state of residence for the previous five years.  The criminal 
 56.13  history check may be conducted and prepared by any public or 
 56.14  private source acceptable to the commissioner. 
 56.15     Sec. 31.  Minnesota Statutes 1994, section 171.321, 
 56.16  subdivision 4, is amended to read: 
 56.17     Subd. 4.  [TRAINING.] No person shall drive a class A, B, 
 56.18  C, or D school bus when transporting school children to or from 
 56.19  school or upon a school-related trip or activity without having 
 56.20  demonstrated sufficient skills and knowledge to transport 
 56.21  students in a safe and legal manner.  A bus driver must have 
 56.22  training or experience that allows the driver to meet at least 
 56.23  the following competencies: 
 56.24     (1) safely operate the type of school bus the driver will 
 56.25  be driving; 
 56.26     (2) understand student behavior, including issues relating 
 56.27  to students with disabilities; 
 56.28     (3) ensure encourage orderly conduct of students on the bus 
 56.29  and handle incidents of misconduct appropriately; 
 56.30     (4) know and understand relevant laws, rules of the road, 
 56.31  and local school bus safety policies; 
 56.32     (5) handle emergency situations; and 
 56.33     (6) safely load and unload students; and 
 56.34     (7)  demonstrate proficiency in first aid and 
 56.35  cardiopulmonary resuscitation procedures. 
 56.36     The commissioner of public safety, in conjunction with the 
 57.1   commissioner of education, shall develop a comprehensive model 
 57.2   school bus driver training program and model assessments for 
 57.3   school bus driver training competencies, which are not subject 
 57.4   to chapter 14.  A school district may use alternative 
 57.5   assessments for bus driver training competencies with the 
 57.6   approval of the commissioner of public safety. 
 57.7      Sec. 32.  Minnesota Statutes 1994, section 171.321, 
 57.8   subdivision 5, is amended to read: 
 57.9      Subd. 5.  [ANNUAL EVALUATION.] A school district district's 
 57.10  pupil transportation safety director, the chief administrator of 
 57.11  a nonpublic school, or a private contractor shall evaluate each 
 57.12  bus driver certify annually to assure the commissioner of public 
 57.13  safety that, at minimum, each school bus driver continues to 
 57.14  meet meets the school bus driver training competencies under 
 57.15  subdivision 4 and shall report the number of hours of in-service 
 57.16  training completed by each driver.  A school district, nonpublic 
 57.17  school, or private contractor also shall provide at least eight 
 57.18  hours of in-service training annually to each school bus 
 57.19  driver.  As part of the annual evaluation, A district, nonpublic 
 57.20  school, or private contractor also shall check the license of 
 57.21  each person who transports students for the district with the 
 57.22  National Drivers Register or the department of public 
 57.23  safety annually.  A school district, nonpublic school, or 
 57.24  private contractor shall certify annually to the commissioner of 
 57.25  public safety that each driver has received eight hours of 
 57.26  in-service training and has met the training competencies The 
 57.27  school board must approve and forward the competency 
 57.28  certification and in-service report to the commissioner of 
 57.29  public safety. 
 57.30     Sec. 33.  Minnesota Statutes 1994, section 171.3215, 
 57.31  subdivision 1, is amended to read: 
 57.32     Subdivision 1.  [DEFINITIONS.] (a) As used in this section, 
 57.33  the following terms have the meanings given them. 
 57.34     (b) "School bus driver" means a person possessing a school 
 57.35  bus driver's endorsement on a valid Minnesota driver's license 
 57.36  or a person possessing a valid Minnesota driver's license who 
 58.1   drives a vehicle with a seating capacity of ten or less persons 
 58.2   used as a school bus. 
 58.3      (c) "Disqualifying offense" includes any felony offense, 
 58.4   any misdemeanor, gross misdemeanor, or felony violation of 
 58.5   chapter 152, or any violation under section 609.3451, 609.746, 
 58.6   subdivision 1, or 617.23, or while driving, operating, or being 
 58.7   in physical control of a school bus or a Head Start bus, a 
 58.8   fourth moving violation within a three-year period violation of 
 58.9   section 169.121, 169.129, or a similar statute or ordinance from 
 58.10  another state. 
 58.11     (d) "Head Start bus driver" means a person possessing a 
 58.12  valid Minnesota driver's license: 
 58.13     (1) with a passenger endorsement, who drives a Head Start 
 58.14  bus; 
 58.15     (2) with a school bus driver's endorsement, who drives a 
 58.16  Head Start bus; or 
 58.17     (3) who drives a vehicle with a seating capacity of ten or 
 58.18  fewer persons used as a Head Start bus. 
 58.19     Sec. 34.  Minnesota Statutes 1994, section 171.3215, 
 58.20  subdivision 2, is amended to read: 
 58.21     Subd. 2.  [CANCELLATION FOR DISQUALIFYING OFFENSE.] Within 
 58.22  ten days of receiving notice under section 631.40, subdivision 
 58.23  1a, or otherwise receiving notice for a nonresident driver, that 
 58.24  a school bus driver has been convicted of a disqualifying 
 58.25  offense, the commissioner shall permanently cancel the school 
 58.26  bus driver's endorsement on the offender's driver's license and 
 58.27  in the case of a nonresident, the driver's privilege to operate 
 58.28  a school bus in Minnesota.  A school bus driver whose 
 58.29  endorsement or privilege to operate a school bus in Minnesota 
 58.30  has been permanently canceled may not apply for reinstatement.  
 58.31  Within ten days of receiving notice under section 631.40, 
 58.32  subdivision 1a, or otherwise receiving notice for a nonresident 
 58.33  driver, that a school bus driver has been convicted of a gross 
 58.34  misdemeanor, or a violation of section 169.121 or, 169.129, or a 
 58.35  similar statute or ordinance from another state, and within ten 
 58.36  days of revoking a school bus driver's license under section 
 59.1   169.123, the commissioner shall cancel the school bus driver's 
 59.2   endorsement on the offender's driver's license or the 
 59.3   nonresident's privilege to operate a school bus in Minnesota for 
 59.4   five years.  After five years, a school bus driver may apply to 
 59.5   the commissioner for reinstatement.  Even after five years, 
 59.6   cancellation of a school bus driver's endorsement or a 
 59.7   nonresident's privilege to operate a school bus in Minnesota for 
 59.8   a conviction violation under section 169.121, 169.123, or 
 59.9   169.129, or a similar statute or ordinance from another state, 
 59.10  shall remain in effect until the driver provides proof of 
 59.11  successful completion of an alcohol or controlled substance 
 59.12  treatment program.  For a first offense, proof of completion is 
 59.13  required only if treatment was ordered as part of a chemical use 
 59.14  assessment.  Within ten days of receiving notice under section 
 59.15  631.40, subdivision 1a, or otherwise receiving notice for a 
 59.16  nonresident driver, that a school bus driver has been convicted 
 59.17  of a fourth moving violation in the last three years, the 
 59.18  commissioner shall cancel the school bus driver's endorsement on 
 59.19  the offender's driver's license or the nonresident's privilege 
 59.20  to operate a school bus in Minnesota until one year has elapsed 
 59.21  since the last conviction.  A school bus driver who has no new 
 59.22  convictions after one year may apply for reinstatement.  Upon 
 59.23  canceling the offender's school bus driver's endorsement, the 
 59.24  commissioner shall immediately notify the licensed offender of 
 59.25  the cancellation in writing, by depositing in the United States 
 59.26  post office a notice addressed to the licensed offender at the 
 59.27  licensed offender's last known address, with postage prepaid 
 59.28  thereon. 
 59.29     Sec. 35.  Minnesota Statutes 1994, section 171.3215, 
 59.30  subdivision 3, is amended to read: 
 59.31     Subd. 3.  [BACKGROUND CHECK.] Before issuing or renewing a 
 59.32  driver's license with a school bus driver's endorsement, the 
 59.33  commissioner shall conduct an investigation to determine if the 
 59.34  applicant has been convicted of committing a disqualifying 
 59.35  offense, four moving violations in the previous three years, a 
 59.36  violation of section 169.121 or, 169.129, or a similar statute 
 60.1   or ordinance from another state, a gross misdemeanor, or if the 
 60.2   applicant's driver's license has been revoked under section 
 60.3   169.123.  The commissioner shall not issue a new bus driver's 
 60.4   endorsement and shall not renew an existing bus driver's 
 60.5   endorsement if the applicant has been convicted of committing a 
 60.6   disqualifying offense.  The commissioner shall not issue a new 
 60.7   bus driver's endorsement and shall not renew an existing bus 
 60.8   driver's endorsement if, within the previous five years, the 
 60.9   applicant has been convicted of committing a violation of 
 60.10  section 169.121 or, 169.129, or a similar statute or ordinance 
 60.11  from another state, a gross misdemeanor, or if the applicant's 
 60.12  driver's license has been revoked under section 169.123, or if, 
 60.13  within the previous three years, the applicant has been 
 60.14  convicted of four moving violations.  An applicant who has been 
 60.15  convicted of violating section 169.121 or, 169.129, or a similar 
 60.16  statute or ordinance from another state, or who has had a 
 60.17  license revocation under section 169.123 within the previous ten 
 60.18  years must show proof of successful completion of an alcohol or 
 60.19  controlled substance treatment program in order to receive a bus 
 60.20  driver's endorsement.  For a first offense, proof of completion 
 60.21  is required only if treatment was ordered as part of a chemical 
 60.22  use assessment.  A school district or contractor that employs a 
 60.23  nonresident school bus driver must conduct a background check of 
 60.24  the employee's driving record and criminal history in both 
 60.25  Minnesota and the driver's state of residence.  Convictions for 
 60.26  disqualifying offenses, gross misdemeanors, a fourth moving 
 60.27  violation within the previous three years, or violations of 
 60.28  section 169.121, 169.129, or a similar statute or ordinance in 
 60.29  another state, must be reported to the department of public 
 60.30  safety. 
 60.31     Sec. 36.  [604A.015] [SCHOOL BUS DRIVER IMMUNITY FROM 
 60.32  LIABILITY.] 
 60.33     A school bus driver who, while on duty, provides emergency 
 60.34  care, advice, or assistance at the scene of an emergency or 
 60.35  during transit to a location where professional medical care can 
 60.36  be rendered, is not liable in ordinary negligence, for any civil 
 61.1   damages as a result of acts or omissions to the person to whom 
 61.2   assistance is rendered by the school bus driver in rendering the 
 61.3   emergency care, advice, or assistance.  For the purposes of this 
 61.4   section, the scene of an emergency is an area outside the 
 61.5   confines of a hospital or other institution that has hospital 
 61.6   facilities, or an office of a person licensed to practice one or 
 61.7   more of the healing arts under chapter 147, 148, 150A, or 153. 
 61.8      Sec. 37.  Minnesota Statutes 1994, section 631.40, 
 61.9   subdivision 1a, is amended to read: 
 61.10     Subd. 1a.  [CERTIFIED COPY OF DISQUALIFYING OFFENSE 
 61.11  CONVICTIONS SENT TO PUBLIC SAFETY AND SCHOOL DISTRICTS.] When a 
 61.12  person is convicted of committing a disqualifying offense, as 
 61.13  defined in section 171.3215, subdivision 1, a gross misdemeanor, 
 61.14  a fourth moving violation within a three-year period, or a 
 61.15  violation of section 169.121 or 169.129, the court shall 
 61.16  determine whether the offender is a school bus driver as defined 
 61.17  in section 171.3215, subdivision 1, whether the offender 
 61.18  possesses a school bus driver's endorsement on the offender's 
 61.19  driver's license and in what school districts the offender 
 61.20  drives a school bus.  If the offender is a school bus driver or 
 61.21  possesses a school bus driver's endorsement, the court 
 61.22  administrator shall send a certified copy of the conviction to 
 61.23  the department of public safety and to the school districts in 
 61.24  which the offender drives a school bus within ten days after the 
 61.25  conviction. 
 61.26     Sec. 38.  [INTERDISTRICT DESEGREGATION TRANSPORTATION.] 
 61.27     Notwithstanding Minnesota Statutes, section 124.225, 
 61.28  subdivision 7d, a district's nonregular transportation revenue 
 61.29  for interdistrict desegregation transportation for the 1995-1996 
 61.30  and 1996-1997 school years equals the district's actual cost in 
 61.31  the current year for interdistrict desegregation transportation 
 61.32  minus the amount of regular transportation revenue attributable 
 61.33  to FTE's in the desegregation category transported outside of 
 61.34  the district in the current school year. 
 61.35     Sec. 39.  [PAY 1994 LEVY RECOGNITION.] 
 61.36     Notwithstanding Minnesota Statutes, sections 121.904 and 
 62.1   124.226, subdivision 9, 50 percent of the levy certified for 
 62.2   taxes payable in 1994 under Minnesota Statutes, section 124.226, 
 62.3   subdivision 9, shall be recognized as revenue for the fiscal 
 62.4   year in which the levy was certified. 
 62.5      Sec. 40.  [APPROPRIATIONS.] 
 62.6      Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
 62.7   indicated in this section are appropriated from the general fund 
 62.8   to the department of education for the fiscal years designated. 
 62.9      Subd. 2.  [TRANSPORTATION AID.] For transportation aid 
 62.10  according to Minnesota Statutes, section 124.225: 
 62.11       $146,262,000     .....     1996
 62.12       $155,395,000     .....     1997
 62.13     The 1996 appropriation includes $21,038,000 for 1995 and 
 62.14  $125,224,000 for 1996.  
 62.15     The 1997 appropriation includes $22,098,000 for 1996 and 
 62.16  $133,297,000 for 1997.  
 62.17     Subd. 3.  [TRANSPORTATION SAFETY.] For student 
 62.18  transportation safety aid according to Minnesota Statutes, 
 62.19  section 124.225, subdivision 8m: 
 62.20       $1,447,000     .....     1996 
 62.21       $1,327,000     .....     1997
 62.22     The 1996 appropriation includes $368,000 for 1995 and 
 62.23  $1,079,000 for 1996.  
 62.24     The 1997 appropriation includes $190,000 for 1996 and 
 62.25  $1,137,000 for 1997. 
 62.26     Subd. 4.  [TRANSPORTATION AID FOR ENROLLMENT OPTIONS.] For 
 62.27  transportation of pupils attending post-secondary institutions 
 62.28  according to Minnesota Statutes, section 123.3514, or for 
 62.29  transportation of pupils attending nonresident districts 
 62.30  according to Minnesota Statutes, section 120.062: 
 62.31       $ 92,000     .....     1996
 62.32       $102,000     .....     1997
 62.33     Sec. 41.  [EFFECTIVE DATE.] 
 62.34     Sections 2 to 5 and 17 to 37 are effective the day 
 62.35  following final enactment. 
 62.36     Section 39 is effective retroactive to July 1, 1993, and 
 63.1   applies for fiscal years 1994 and 1995. 
 63.2      Section 9 is effective beginning with taxes payable in 1996 
 63.3   for fiscal year 1997. 
 63.4                              ARTICLE 3
 63.5                           SPECIAL PROGRAMS 
 63.6      Section 1.  Minnesota Statutes 1994, section 120.17, 
 63.7   subdivision 3a, is amended to read: 
 63.8      Subd. 3a.  [SCHOOL DISTRICT OBLIGATIONS.] Every district 
 63.9   shall ensure that: 
 63.10     (1) all students with disabilities are provided the special 
 63.11  instruction and services which are appropriate to their needs.  
 63.12  Where the individual education plan team has determined 
 63.13  appropriate goals and objectives based on the student's needs, 
 63.14  including the extent to which the student can be included in the 
 63.15  least restrictive environment, and where there are essentially 
 63.16  equivalent and effective instruction, related services, or 
 63.17  assistive technology devices available to meet the student's 
 63.18  needs, cost to the school district may be among the factors 
 63.19  considered by the team in choosing how to provide the 
 63.20  appropriate services, instruction, or devices that are to be 
 63.21  made part of the student's individual education plan.  The 
 63.22  student's needs and the special education instruction and 
 63.23  services to be provided shall be agreed upon through the 
 63.24  development of an individual education plan.  The plan shall 
 63.25  address the student's need to develop skills to live and work as 
 63.26  independently as possible within the community.  By grade 9 or 
 63.27  age 14, the plan shall address the student's needs for 
 63.28  transition from secondary services to post-secondary education 
 63.29  and training, employment, community participation, recreation, 
 63.30  and leisure and home living.  The plan must include a statement 
 63.31  of the needed transition services, including a statement of the 
 63.32  interagency responsibilities or linkages or both before 
 63.33  secondary services are concluded; 
 63.34     (2) children with a disability under age five and their 
 63.35  families are provided special instruction and services 
 63.36  appropriate to the child's level of functioning and needs; 
 64.1      (3) children with a disability and their parents or 
 64.2   guardians are guaranteed procedural safeguards and the right to 
 64.3   participate in decisions involving identification, assessment 
 64.4   and educational placement of children with a disability; 
 64.5      (4) to the maximum extent appropriate, children with a 
 64.6   disability, including those in public or private institutions or 
 64.7   other care facilities, are educated with children who are not 
 64.8   disabled, and that special classes, separate schooling, or other 
 64.9   removal of children with a disability from the regular 
 64.10  educational environment occurs only when and to the extent that 
 64.11  the nature or severity of the disability is such that education 
 64.12  in regular classes with the use of supplementary services cannot 
 64.13  be achieved satisfactorily; 
 64.14     (5) in accordance with recognized professional standards, 
 64.15  testing and evaluation materials, and procedures utilized for 
 64.16  the purposes of classification and placement of children with a 
 64.17  disability are selected and administered so as not to be 
 64.18  racially or culturally discriminatory; and 
 64.19     (6) the rights of the child are protected when the parents 
 64.20  or guardians are not known or not available, or the child is a 
 64.21  ward of the state. 
 64.22     Sec. 2.  Minnesota Statutes 1994, section 120.17, 
 64.23  subdivision 3b, is amended to read: 
 64.24     Subd. 3b.  [PROCEDURES FOR DECISIONS.] Every district shall 
 64.25  utilize at least the following procedures for decisions 
 64.26  involving identification, assessment, and educational placement 
 64.27  of children with a disability: 
 64.28     (a) Parents and guardians shall receive prior written 
 64.29  notice of:  
 64.30     (1) any proposed formal educational assessment or proposed 
 64.31  denial of a formal educational assessment of their child; 
 64.32     (2) a proposed placement of their child in, transfer from 
 64.33  or to, or denial of placement in a special education program; or 
 64.34     (3) the proposed provision, addition, denial or removal of 
 64.35  special education services for their child; 
 64.36     (b) The district shall not proceed with the initial formal 
 65.1   assessment of a child, the initial placement of a child in a 
 65.2   special education program, or the initial provision of special 
 65.3   education services for a child without the prior written consent 
 65.4   of the child's parent or guardian.  The refusal of a parent or 
 65.5   guardian to consent may be overridden by the decision in a 
 65.6   hearing held pursuant to clause (e) at the district's 
 65.7   initiative; 
 65.8      (c) Parents and guardians shall have an opportunity to meet 
 65.9   with appropriate district staff in at least one conciliation 
 65.10  conference, mediation, or other method of alternative dispute 
 65.11  resolution that the parties agree to, if they object to any 
 65.12  proposal of which they are notified pursuant to clause (a).  The 
 65.13  conciliation process or other form of alternative dispute 
 65.14  resolution shall not be used to deny or delay a parent or 
 65.15  guardian's right to a due process hearing.  If the parent or 
 65.16  guardian refuses efforts by the district to conciliate the 
 65.17  dispute with the school district, the requirement of an 
 65.18  opportunity for conciliation or other alternative dispute 
 65.19  resolution shall be deemed to be satisfied;.  Notwithstanding 
 65.20  other law, in any proceeding following a conciliation 
 65.21  conference, the school district must not offer a conciliation 
 65.22  conference memorandum into evidence, except for any portions 
 65.23  that describe the district's final proposed offer of service.  
 65.24  Otherwise, with respect to forms of dispute resolution, 
 65.25  mediation, or conciliation, Minnesota Rule of Evidence 408 
 65.26  applies.  The department of education may reimburse the 
 65.27  districts or directly pay the costs of lay advocates, not to 
 65.28  exceed $150 per dispute, used in conjunction with alternative 
 65.29  dispute resolution. 
 65.30     (d) The commissioner shall establish a mediation process to 
 65.31  assist parents, school districts, or other parties to resolve 
 65.32  disputes arising out of the identification, assessment, or 
 65.33  educational placement of children with a disability.  The 
 65.34  mediation process must be offered as an informal alternative to 
 65.35  the due process hearing provided under clause (e), but must not 
 65.36  be used to deny or postpone the opportunity of a parent or 
 66.1   guardian to obtain a due process hearing. 
 66.2      (e) Parents, guardians, and the district shall have an 
 66.3   opportunity to obtain an impartial due process hearing initiated 
 66.4   and conducted by and in the school district responsible for 
 66.5   assuring that an appropriate program is provided in accordance 
 66.6   with state board rules, if the parent or guardian continues to 
 66.7   object to:  
 66.8      (1) a proposed formal educational assessment or proposed 
 66.9   denial of a formal educational assessment of their child; 
 66.10     (2) the proposed placement of their child in, or transfer 
 66.11  of their child to a special education program; 
 66.12     (3) the proposed denial of placement of their child in a 
 66.13  special education program or the transfer of their child from a 
 66.14  special education program; 
 66.15     (4) the proposed provision or addition of special education 
 66.16  services for their child; or 
 66.17     (5) the proposed denial or removal of special education 
 66.18  services for their child. 
 66.19     At least five calendar Within five business days before 
 66.20  after the request for a hearing, or as directed by the hearing 
 66.21  officer, the objecting party shall provide the other party with 
 66.22  a brief written statement of particulars of the objection and, 
 66.23  the reasons for the objection, and the specific remedies sought. 
 66.24  The other party shall provide the objecting party with a written 
 66.25  response to the statement of objections within five business 
 66.26  days of receipt of the statement.  
 66.27     The hearing shall take place before an impartial hearing 
 66.28  officer mutually agreed to by the school board and the parent or 
 66.29  guardian.  If the school board and the parent or guardian are 
 66.30  unable to agree on a hearing officer, the school board shall 
 66.31  request the commissioner to appoint a hearing officer.  The 
 66.32  hearing officer shall not be a school board member or employee 
 66.33  of the school district where the child resides or of the child's 
 66.34  school district of residence, an employee of any other public 
 66.35  agency involved in the education or care of the child, or any 
 66.36  person with a personal or professional interest which would 
 67.1   conflict with the person's objectivity at the hearing.  A person 
 67.2   who otherwise qualifies as a hearing officer is not an employee 
 67.3   of the district solely because the person is paid by the 
 67.4   district to serve as a hearing officer.  If the hearing officer 
 67.5   requests an independent educational assessment of a child, the 
 67.6   cost of the assessment shall be at district expense.  The 
 67.7   proceedings shall be recorded and preserved, at the expense of 
 67.8   the school district, pending ultimate disposition of the action. 
 67.9      (f) The decision of the hearing officer pursuant to clause 
 67.10  (e) shall be rendered not more than 45 calendar days from the 
 67.11  date of the receipt of the request for the hearing.  A hearing 
 67.12  officer may grant specific extensions of time beyond the 45-day 
 67.13  period at the request of either party.  The decision of the 
 67.14  hearing officer shall be binding on all parties unless appealed 
 67.15  to the hearing review officer by the parent, guardian, or the 
 67.16  school board of the district where the child resides pursuant to 
 67.17  clause (g). 
 67.18     The local decision shall: 
 67.19     (1) be in writing; 
 67.20     (2) state the controlling facts upon which the decision is 
 67.21  made in sufficient detail to apprise the parties and the hearing 
 67.22  review officer of the basis and reason for the decision; 
 67.23     (3) state whether the special education program or special 
 67.24  education services appropriate to the child's needs can be 
 67.25  reasonably provided within the resources available to the 
 67.26  responsible district or districts; 
 67.27     (4) state the amount and source of any additional district 
 67.28  expenditure necessary to implement the decision; and 
 67.29     (5) be based on the standards set forth in subdivision 3a 
 67.30  and the rules of the state board. 
 67.31     (g) Any local decision issued pursuant to clauses (e) and 
 67.32  (f) may be appealed to the hearing review officer within 30 
 67.33  calendar days of receipt of that written decision, by the 
 67.34  parent, guardian, or the school board of the district 
 67.35  responsible for assuring that an appropriate program is provided 
 67.36  in accordance with state board rules. 
 68.1      If the decision is appealed, a written transcript of the 
 68.2   hearing shall be made by the school district and shall be 
 68.3   accessible to the parties involved within five calendar days of 
 68.4   the filing of the appeal.  The hearing review officer shall 
 68.5   issue a final independent decision based on an impartial review 
 68.6   of the local decision and the entire record within 30 calendar 
 68.7   days after the filing of the appeal.  The hearing review officer 
 68.8   shall seek additional evidence if necessary and may afford the 
 68.9   parties an opportunity for written or oral argument; provided 
 68.10  any hearing held to seek additional evidence shall be an 
 68.11  impartial due process hearing but shall be deemed not to be a 
 68.12  contested case hearing for purposes of chapter 14.  The hearing 
 68.13  review officer may grant specific extensions of time beyond the 
 68.14  30-day period at the request of any party. 
 68.15     The final decision shall: 
 68.16     (1) be in writing; 
 68.17     (2) include findings and conclusions; and 
 68.18     (3) be based upon the standards set forth in subdivision 3a 
 68.19  and in the rules of the state board. 
 68.20     (h) The decision of the hearing review officer shall be 
 68.21  final unless appealed by the parent or guardian or school board 
 68.22  to the court of appeals.  The judicial review shall be in 
 68.23  accordance with chapter 14.  
 68.24     (i) The commissioner of education shall select an 
 68.25  individual who has the qualifications enumerated in this 
 68.26  paragraph to serve as the hearing review officer: 
 68.27     (1) the individual must be knowledgeable and impartial; 
 68.28     (2) the individual must not have a personal interest in or 
 68.29  specific involvement with the student who is a party to the 
 68.30  hearing; 
 68.31     (3) the individual must not have been employed as an 
 68.32  administrator by the district that is a party to the hearing; 
 68.33     (4) the individual must not have been involved in the 
 68.34  selection of the administrators of the district that is a party 
 68.35  to the hearing; 
 68.36     (5) the individual must not have a personal, economic, or 
 69.1   professional interest in the outcome of the hearing other than 
 69.2   the proper administration of the federal and state laws, rules, 
 69.3   and policies; 
 69.4      (6) the individual must not have substantial involvement in 
 69.5   the development of a state or local policy or procedures that 
 69.6   are challenged in the appeal; and 
 69.7      (7) the individual is not a current employee or board 
 69.8   member of a Minnesota public school district, education 
 69.9   district, intermediate unit or regional education agency, the 
 69.10  state department of education, the state board of education, or 
 69.11  a parent advocacy organization or group.  
 69.12     (j) In all appeals, the parent or guardian of the pupil 
 69.13  with a disability or the district that is a party to the hearing 
 69.14  may challenge the impartiality or competence of the proposed 
 69.15  hearing review officer by applying to the state board of 
 69.16  education hearing review officer.  
 69.17     (k) Pending the completion of proceedings pursuant to this 
 69.18  subdivision, unless the district and the parent or guardian of 
 69.19  the child agree otherwise, the child shall remain in the child's 
 69.20  current educational placement and shall not be denied initial 
 69.21  admission to school. 
 69.22     (l) The child's school district of residence, a resident 
 69.23  district, and providing district shall receive notice of and may 
 69.24  be a party to any hearings or appeals under this subdivision. 
 69.25     (m) A school district is not liable for harmless technical 
 69.26  violations of this subdivision or rules implementing this 
 69.27  subdivision if the school district can demonstrate on a 
 69.28  case-by-case basis that the violations did not harm the 
 69.29  student's educational progress or the parent or guardian's right 
 69.30  to notice, participation, or due process. 
 69.31     (n) Within ten calendar days after appointment, the hearing 
 69.32  officer shall schedule and hold a prehearing conference.  At 
 69.33  that conference, or later, the hearing officer may take any 
 69.34  appropriate action that a court might take under Rule 16 of 
 69.35  Minnesota Rules of Civil Procedure including, but not limited 
 69.36  to, scheduling, jurisdiction, and listing witnesses including 
 70.1   expert witnesses. 
 70.2      (o) A hearing officer or hearing review officer appointed 
 70.3   under this subdivision shall be deemed to be an employee of the 
 70.4   state under section 3.732 for the purposes of section 3.736 only.
 70.5      (p) In order to be eligible for selection, hearing officers 
 70.6   and hearing review officers shall participate in training and 
 70.7   follow procedures as designated by the commissioner. 
 70.8      Sec. 3.  Minnesota Statutes 1994, section 120.17, is 
 70.9   amended by adding a subdivision to read: 
 70.10     Subd. 3d.  [INTERAGENCY SERVICES.] If at the time of 
 70.11  initial referral for an educational assessment, or a 
 70.12  reassessment, the school district determines that a child with 
 70.13  disabilities who is age 3 through 21 may be eligible for 
 70.14  interagency services, the district may request that the county 
 70.15  of residence provide a representative to the initial assessment 
 70.16  or reassessment team meeting or the first individual education 
 70.17  plan team meeting following the assessment or reassessment.  The 
 70.18  district may request to have a county representative attend 
 70.19  other individual education plan team meetings when it is 
 70.20  necessary to facilitate coordination between district and county 
 70.21  provided services.  Upon request from a school district, the 
 70.22  resident county shall provide a representative to assist the 
 70.23  individual education plan team in determining the child's 
 70.24  eligibility for existing health, mental health, or other support 
 70.25  services administered or provided by the county.  The individual 
 70.26  education plan team and the county representative shall develop 
 70.27  an interagency plan of care for an eligible child and the 
 70.28  child's family to coordinate services required under the child's 
 70.29  individual education plan with county services.  The interagency 
 70.30  plan of care shall include appropriate family information with 
 70.31  the consent of the family, a description of how services will be 
 70.32  coordinated between the district and county, a description of 
 70.33  service coordinator responsibilities and services, and a 
 70.34  description of activities for obtaining third-party payment for 
 70.35  eligible services, including medical assistance payments. 
 70.36     Sec. 4.  Minnesota Statutes 1994, section 121.8355, 
 71.1   subdivision 2, is amended to read: 
 71.2      Subd. 2.  [DUTIES.] (a) Each collaborative shall: 
 71.3      (1) establish, with assistance from families and service 
 71.4   providers, clear goals for addressing the health, developmental, 
 71.5   educational, and family-related needs of children and youth and 
 71.6   use outcome-based indicators to measure progress toward 
 71.7   achieving those goals; 
 71.8      (2) establish a comprehensive planning process that 
 71.9   involves all sectors of the community, identifies local needs, 
 71.10  and surveys existing local programs; 
 71.11     (3) integrate service funding sources so that children and 
 71.12  their families obtain services from providers best able to 
 71.13  anticipate and meet their needs; 
 71.14     (4) coordinate families' services to avoid duplicative and 
 71.15  overlapping assessment and intake procedures; 
 71.16     (5) focus primarily on family-centered services; 
 71.17     (6) encourage parents and volunteers to actively 
 71.18  participate by using flexible scheduling and actively recruiting 
 71.19  volunteers; 
 71.20     (7) provide services in locations that are readily 
 71.21  accessible to children and families; 
 71.22     (8) use new or reallocated funds to improve or enhance 
 71.23  services provided to children and their families; 
 71.24     (9) identify federal, state, and local institutional 
 71.25  barriers to coordinating services and suggest ways to remove 
 71.26  these barriers; and 
 71.27     (10) design and implement an integrated local service 
 71.28  delivery system for children and their families that coordinates 
 71.29  services across agencies and is client centered.  The delivery 
 71.30  system shall provide a continuum of services for children birth 
 71.31  to age 18, or birth through age 21 for individuals with 
 71.32  disabilities.  The collaborative shall describe the community 
 71.33  plan for serving pregnant women and children from birth to age 
 71.34  six. 
 71.35     (b) The outcome-based indicators developed in paragraph 
 71.36  (a), clause (1), may include the number of low birth weight 
 72.1   babies, the infant mortality rate, the number of children who 
 72.2   are adequately immunized and healthy, require out-of-home 
 72.3   placement or long-term special education services, and the 
 72.4   number of minor parents. 
 72.5      Sec. 5.  Minnesota Statutes 1994, section 123.3514, 
 72.6   subdivision 7, is amended to read: 
 72.7      Subd. 7.  [FEES; TEXTBOOKS; MATERIALS.] A post-secondary 
 72.8   institution that receives reimbursement for a pupil under 
 72.9   subdivision 6 may not charge that pupil for fees, textbooks, 
 72.10  materials, support services as defined in section 135A.16, or 
 72.11  other necessary costs of the course or program in which the 
 72.12  pupil is enrolled if the charge would be prohibited under 
 72.13  section 120.74, except for equipment purchased by the pupil that 
 72.14  becomes the property of the pupil.  An institution may require 
 72.15  the pupil to pay for fees, textbooks, and materials for a course 
 72.16  taken for post-secondary credit. 
 72.17     Sec. 6.  Minnesota Statutes 1994, section 123.3514, is 
 72.18  amended by adding a subdivision to read: 
 72.19     Subd. 7b.  [SUPPORT SERVICES.] The postsecondary 
 72.20  institution shall inform the pupil of the support services 
 72.21  available at that institution.  If the student has an individual 
 72.22  education plan that provides general education support and 
 72.23  accommodations, the post-secondary institution shall provide the 
 72.24  support services as described in the student's IEP and the 
 72.25  post-secondary institution and the district shall negotiate an 
 72.26  agreement on the rate to be charged for the services.  Nothing 
 72.27  in this section shall prevent the student from enrolling while 
 72.28  the agreement is being developed.  If the parties cannot agree 
 72.29  on the services, on application of either party, the 
 72.30  commissioner shall resolve the dispute in the same manner the 
 72.31  commissioner fixes tuition rates under section 120.17, 
 72.32  subdivision 4.  The commissioner's decision is binding on both 
 72.33  parties. 
 72.34     Sec. 7.  Minnesota Statutes 1994, section 125.62, 
 72.35  subdivision 1, is amended to read: 
 72.36     Subdivision 1.  [ESTABLISHMENT.] A grant program is 
 73.1   established to assist American Indian people to become teachers 
 73.2   and to provide additional education for American Indian 
 73.3   teachers.  The state board may award a joint grant to each of 
 73.4   the following:  
 73.5      (1) the Duluth campus of the University of Minnesota and 
 73.6   independent school district No. 709, Duluth; 
 73.7      (2) Bemidji state university and independent school 
 73.8   district No. 38, Red Lake; 
 73.9      (3) Moorhead state university and one of the school 
 73.10  districts located within the White Earth reservation; and 
 73.11     (4) Augsburg college, independent school district No. 625, 
 73.12  St. Paul, and special school district No. 1, Minneapolis. 
 73.13     Sec. 8.  Minnesota Statutes 1994, section 125.62, 
 73.14  subdivision 7, is amended to read: 
 73.15     Subd. 7.  [LOAN FORGIVENESS.] The loan may be forgiven if 
 73.16  the recipient is employed as a teacher, as defined in section 
 73.17  125.12 or 125.17, in an eligible school or program in 
 73.18  Minnesota.  One-fifth One-fourth of the principal of the 
 73.19  outstanding loan amount shall be forgiven for each year of 
 73.20  eligible employment, or a pro rata amount for eligible 
 73.21  employment during part of a school year, part-time employment as 
 73.22  a substitute teacher, or other eligible part-time 
 73.23  teaching.  Loans for $2,500 or less may be forgiven at the rate 
 73.24  of up to $1,250 per year.  The following schools and programs 
 73.25  are eligible for the purposes of loan forgiveness: 
 73.26     (1) a school or program operated by a school district; 
 73.27     (2) a tribal contract school eligible to receive aid 
 73.28  according to section 124.86; 
 73.29     (3) a head start program; 
 73.30     (4) an early childhood family education program; or 
 73.31     (5) a program providing educational services to children 
 73.32  who have not entered kindergarten; or 
 73.33     (6) a program providing educational enrichment services to 
 73.34  American Indian students in grades kindergarten through 12. 
 73.35     If a person has an outstanding loan obtained through this 
 73.36  program, the duty to make payments of principal and interest may 
 74.1   be deferred during any time period the person is enrolled at 
 74.2   least one-half time in an advanced degree program in a field 
 74.3   that leads to employment by a school district.  To defer loan 
 74.4   obligations, the person shall provide written notification to 
 74.5   the state board of education and the recipients of the joint 
 74.6   grant that originally authorized the loan.  Upon approval by the 
 74.7   state board and the joint grant recipients, payments shall be 
 74.8   deferred.  
 74.9      The loan forgiveness program, loan deferral, and procedures 
 74.10  to administer the program shall be approved by the higher 
 74.11  education coordinating board. 
 74.12     Sec. 9.  Minnesota Statutes 1994, section 126.49, is 
 74.13  amended by adding a subdivision to read: 
 74.14     Subd. 2a.  [RESOLUTION OR LETTER.] All persons applying for 
 74.15  a license under this section must submit to the board a 
 74.16  resolution or letter of support signed by an American Indian 
 74.17  tribal government or its designee.  All persons holding a 
 74.18  license under this section on the effective date of this section 
 74.19  must have on file or file with the board a resolution or letter 
 74.20  of support signed by a tribal government or its designee by 
 74.21  January 1, 1996, or the next renewal date of the license 
 74.22  thereafter. 
 74.23     Sec. 10.  [127.392] [INCARCERATED STUDENTS.] 
 74.24     Notwithstanding sections 127.26 to 127.39, a student who 
 74.25  has been adjudicated for committing a crime of violence under 
 74.26  section 624.712, subdivision 5, and released from a correctional 
 74.27  institution or a juvenile services program may be diverted, at 
 74.28  the discretion of the school district, from the general school 
 74.29  population to a substantive alternative instructional program 
 74.30  for up to one year, if the school district, after consultation 
 74.31  with the student's parole officer determines that the student's 
 74.32  presence in the general school population will be detrimental to 
 74.33  the instructional programs.  If a student has an individual 
 74.34  education plan, the placement decision must meet federal 
 74.35  requirements, if any.  The student may appeal a decision to be 
 74.36  diverted from the general school population by writ of 
 75.1   certiorari as provided by law.  
 75.2      Sec. 11.  Laws 1994, chapter 587, article 3, section 19, 
 75.3   subdivision 1, is amended to read: 
 75.4      Subdivision 1.  [SPECIAL EDUCATION AID.] $17,500,000 is 
 75.5   appropriated in fiscal year 1994 from the general fund to the 
 75.6   department of education for special education aid to school 
 75.7   districts.  This appropriation is available until June 30, 
 75.8   1995.  This amount is added to the appropriations for aid for 
 75.9   special education programs contained in Laws 1993, chapter 224, 
 75.10  article 3, section 38, subdivisions 2, 4, 8, 11, and 14.  The 
 75.11  individual appropriations shall be increased by the commissioner 
 75.12  of finance in the amounts determined by the commissioner of 
 75.13  education.  This amount is appropriated to eliminate the fiscal 
 75.14  year 1993 deficiencies and eliminate or reduce the fiscal year 
 75.15  1995 deficiencies in the appropriations in those 
 75.16  subdivisions.  Any amount not needed for these purposes is 
 75.17  available to eliminate or reduce the fiscal year 1994 
 75.18  deficiencies in the appropriations in those subdivisions.  The 
 75.19  commissioner of finance shall transfer amounts among the 
 75.20  appropriations in those subdivisions as determined by the 
 75.21  department of education.  The department must reduce a school 
 75.22  district's payable 1995 levy limitations by the full amount of 
 75.23  the aid payments made to the school district according to this 
 75.24  subdivision.  This appropriation shall not be included in 
 75.25  determining the amount of a deficiency in the special education 
 75.26  programs for fiscal year years 1994 and 1995 for the purpose of 
 75.27  allocating any excess appropriations to aid or grant programs 
 75.28  with insufficient appropriations as provided in Minnesota 
 75.29  Statutes, section 124.14, subdivision 7.  Notwithstanding 
 75.30  Minnesota Statutes, section 124.195, subdivision 10, 100 percent 
 75.31  of this appropriation must be paid in fiscal years 1994 and 
 75.32  1995.  This appropriation is not to be included in a base budget 
 75.33  for future fiscal years. 
 75.34     Sec. 12.  [OPTIONS PLUS PILOT PROGRAM.] 
 75.35     Subdivision 1.  [PURPOSE.] A pilot program is established 
 75.36  to support general education classroom teachers who teach 
 76.1   children with specific learning disabilities.  The goals of the 
 76.2   pilot program are to: 
 76.3      (1) increase participation of these children in 
 76.4   noncategorical programming designed to encourage their maximum 
 76.5   potential and maintain their self-esteem; 
 76.6      (2) demonstrate results in measurable educational outcomes; 
 76.7      (3) provide alternatives to special education that focus on 
 76.8   children's educational progress and results, respond to the 
 76.9   individual child, are efficient and cost-effective, and ensure 
 76.10  the rights of eligible children and their families to due 
 76.11  process; 
 76.12     (4) increase general education's ability to educate in a 
 76.13  manner that decreases the need for pull-out programs for 
 76.14  students with specific learning disabilities; and 
 76.15     (5) implement alternative approaches to conflict resolution.
 76.16     Subd. 2.  [DEFINITIONS.] For the purposes of this section 
 76.17  the terms defined in this subdivision have the meanings given 
 76.18  them. 
 76.19     (a) "Accommodation" means any technique that alters the 
 76.20  educational setting to enable the child to reach the child's 
 76.21  maximum potential and to demonstrate more accurately the child's 
 76.22  knowledge and educational progress.  Accommodations may include, 
 76.23  but are not limited to:  preferential seating, paraphrasing of 
 76.24  information, instructions, practice activities and directions 
 76.25  provided in a manner consistent with the child's learning style, 
 76.26  opportunity for increased response time, more frequent 
 76.27  opportunity for review, extended time to complete assignments 
 76.28  and tests, larger print for assignments or tests, special study 
 76.29  sheets, extended or untimed tests, oral testing and answering, 
 76.30  and use of assistive technology within and outside the 
 76.31  educational environment. 
 76.32     (b) "Assistive technology" means any item, piece of 
 76.33  equipment, or product system, whether acquired commercially off 
 76.34  the shelf, modified, or customized, that is used to increase, 
 76.35  maintain, or improve functional capabilities. 
 76.36     (c) "Competency" means a documented and demonstrated 
 77.1   attitude, skill, or knowledge base resulting in an ability of 
 77.2   general education personnel to provide accommodations, 
 77.3   modifications, and personalized instruction, according to the 
 77.4   eligible child's individual learning styles, within general 
 77.5   education environments. 
 77.6      (d) "Consistently available" means that education personnel 
 77.7   who demonstrate competency are site-based and designated as a 
 77.8   resource for the development and use of accommodations, 
 77.9   modifications, and personalized instruction in general education.
 77.10     (e) "Eligible children" means those children who have 
 77.11  specific learning disabilities or conditions related to these 
 77.12  disabilities according to recognized professional standards and 
 77.13  documented by appropriately licensed personnel. 
 77.14     (f) "Learner plan" means a concise written plan that is 
 77.15  based on the eligible child's documented specific learning 
 77.16  disabilities and needs; includes the eligible child's strengths 
 77.17  that may compensate for those differences and needs; provides 
 77.18  the child, the child's parent, and all general education 
 77.19  personnel responsible for direct instruction with information 
 77.20  that results in clear understanding and subsequent use of 
 77.21  accommodations, modifications, and personalized instruction; and 
 77.22  includes methods of evaluating the child's progress that are 
 77.23  consistent with learning differences, needs, strengths, 
 77.24  modifications, and accommodations, and are at intervals 
 77.25  identical to the student population of the school in which the 
 77.26  child participating in Options Plus is enrolled. 
 77.27     (g) "Modification" means any technique that alters the 
 77.28  school work required, makes it different from the school work 
 77.29  required or other students in the same course, and encourages 
 77.30  the eligible child to reach the child's maximum potential and 
 77.31  facilitate educational success.  Modifications may include, but 
 77.32  are not limited to:  copies of teacher notes and lesson plans, 
 77.33  assisted note taking, reduced or altered assignments, increased 
 77.34  assignments in areas of strength, alternative test formats, 
 77.35  modified testing, peer assistance, cooperative learning, and 
 77.36  modified grading such as documentation of progress and results. 
 78.1      (h) "Parent" means a parent, guardian, or person acting as 
 78.2   a parent of a child. 
 78.3      (i) "Personalized instruction" means direct instruction 
 78.4   designed with knowledge of the child's learning style, 
 78.5   strengths, and differences, to assist the child to gain in skill 
 78.6   areas, so the child demonstrates progress toward and outcomes 
 78.7   necessary to become a successful citizen. 
 78.8      Subd. 3.  [APPLICATION.] (a) An Options Plus applicant must 
 78.9   be a school district or districts that cooperate for a 
 78.10  particular purpose.  To be eligible for an Options Plus pilot 
 78.11  program grant, a district or districts must submit an 
 78.12  application to the commissioner of education in the form and 
 78.13  manner prescribed by the commissioner.  The application must 
 78.14  describe: 
 78.15     (1) how the applicant will ensure that eligible children 
 78.16  receive accommodations, modifications, and personalized 
 78.17  instruction; 
 78.18     (2) the methods to be used to develop a learner plan for 
 78.19  each child participating in the program and to evaluate 
 78.20  individual progress, outcomes, and cumulative results including 
 78.21  parent satisfaction; 
 78.22     (3) the projected number of students participating in the 
 78.23  program; 
 78.24     (4) the current and projected level of educator competency 
 78.25  at each district site where an Options Plus program will be 
 78.26  established; 
 78.27     (5) procedures for assessing and determining eligibility of 
 78.28  students with specific learning disabilities in accordance with 
 78.29  Minnesota Rules, parts 3525.1325 to 3525.1347; 
 78.30     (6) procedures for informing the parent and child, as 
 78.31  appropriate, of all procedural safeguards and dispute resolution 
 78.32  alternatives available under the Individuals with Disabilities 
 78.33  Education Act (IDEA), United States Code, title 20, section 1400 
 78.34  et seq., American with Disabilities Act of 1990 (ADA), United 
 78.35  States Code, title 42, section 12101 et seq., Rehabilitation Act 
 78.36  of 1973, United States Code, title 29, section 794, and 
 79.1   applicable state law; 
 79.2      (7) alternative dispute resolution methods to be 
 79.3   implemented if agreed upon by the parent and are instituted in a 
 79.4   timely manner not to exceed 30 days or in accordance with 
 79.5   current laws; and 
 79.6      (8) any additional information required by the commissioner.
 79.7      (b) Districts shall continue accounting procedures for 
 79.8   documenting that federal special education funds are expended 
 79.9   for child find, identification, and evaluation consistent with 
 79.10  federal law.  A district shall not include children 
 79.11  participating in the Options Plus program in special education 
 79.12  child counts or funding formulas. 
 79.13     Subd. 4.  [RIGHTS OF PARENT AND CHILD.] Any child enrolled 
 79.14  in an Options Plus pilot program may withdraw at any time upon 
 79.15  written request of the parent or child and seek or reinstate 
 79.16  eligibility for services under Minnesota Statutes, section 
 79.17  120.17.  If a child who withdraws was previously served through 
 79.18  an individual education plan under Minnesota Statutes, section 
 79.19  120.17, the parent shall retain the right to immediately 
 79.20  reinstate the last agreed upon individual education plan. 
 79.21     Subd. 5.  [USE OF FUNDS.] Options Plus pilot program grants 
 79.22  shall be used to supplement staff development funding under 
 79.23  Minnesota Statutes, section 124A.29, to train general education 
 79.24  classroom teachers to meet the needs of children with specific 
 79.25  learning disabilities.  The training shall result in each 
 79.26  participating teacher achieving the following competencies: 
 79.27     (1) understanding and communicating to the parents of the 
 79.28  child the options available for instruction; 
 79.29     (2) the ability to assess the learning environment and 
 79.30  provide the necessary accommodations, modifications, and 
 79.31  personalized instruction necessary to meet the needs of the 
 79.32  child; and 
 79.33     (3) the ability to work collaboratively and in teams with 
 79.34  other teachers and support and related services staff. 
 79.35     Subd. 6.  [REPORT.] A school district receiving an Options 
 79.36  Plus pilot program grant shall report to the commissioner of 
 80.1   education on the educational impact and cost-effectiveness of 
 80.2   the Options Plus program by February 15, 1997.  The commissioner 
 80.3   shall evaluate the effectiveness of the Options Plus program and 
 80.4   recommend to the education committees of the legislature by 
 80.5   February 15, 1998, whether the program should be continued or 
 80.6   expanded statewide and whether to include other disability areas.
 80.7      Sec. 13.  [STATE VOCATIONAL SCHOOL PLANNING PROCESS.] 
 80.8      Subdivision 1.  [PLANNING COMMITTEE.] A planning committee 
 80.9   is established to develop a preliminary plan for a 
 80.10  state-of-the-art vocational high school in Minnesota to serve 
 80.11  the needs of students with special vocational interests and 
 80.12  talents, and to serve as a demonstration site for vocational 
 80.13  education.  The committee shall consist of 21 members.  The 
 80.14  governor, speaker of the house of representatives, and the 
 80.15  majority leader of the senate shall each appoint seven members.  
 80.16  The governor's appointments must include the commissioners of 
 80.17  education and human services or their designees.  Members also 
 80.18  must include potential students and their parents, imaginative 
 80.19  practicing teachers, high school administrators, representatives 
 80.20  of business and labor, and community representatives.  The 
 80.21  committee is subject to Minnesota Statutes, section 15.059. 
 80.22     Subd. 2.  [PURPOSES.] The purposes of the planning 
 80.23  committee are to: 
 80.24     (1) evaluate the need for a vocational high school, 
 80.25  including the needs of Minnesota students for vocational 
 80.26  training and the needs of private sector employers for skilled, 
 80.27  vocationally trained employees; 
 80.28     (2) determine the capacity of Minnesota's secondary schools 
 80.29  to meet this need; 
 80.30     (3) identify the challenges and opportunities for 
 80.31  vocational education; 
 80.32     (4) develop a preliminary plan for a vocational high school 
 80.33  to meet the identified needs; 
 80.34     (5) develop a learning signature for a vocational high 
 80.35  school based on its focus, including educational goals, learning 
 80.36  organization, anticipated learner results, and staffing and 
 81.1   staff development; 
 81.2      (6) describe the anticipated partnerships of the vocational 
 81.3   school with other secondary educational institutions, 
 81.4   post-secondary institutions, business and labor, community 
 81.5   organizations, and students' families; 
 81.6      (7) develop a technology and equipment plan for the 
 81.7   proposed school; and 
 81.8      (8) develop preliminary cost estimates for a vocational 
 81.9   school. 
 81.10     Subd. 3.  [APPOINTMENTS; MEETINGS.] The planning committee 
 81.11  must be appointed by July 1, 1995.  The committee must begin 
 81.12  meeting in July 1995.  At least some of the committee meetings 
 81.13  must be held outside the metropolitan area as defined in 
 81.14  Minnesota Statutes, section 473.121, subdivision 2. 
 81.15     Subd. 4.  [REPORT.] The planning committee shall make a 
 81.16  report of its work to the education committees of the 
 81.17  legislature in February 1996. 
 81.18     Subd. 5.  [STAFF; OFFICE SPACE.] The planning committee may 
 81.19  appoint staff as necessary to assist in its work.  The staff are 
 81.20  members of the unclassified service of the state.  The 
 81.21  commissioner of education shall provide office space for the 
 81.22  committee staff. 
 81.23     Sec. 14.  [MEXICAN ORIGIN EDUCATION PILOT GRANT PROGRAM.] 
 81.24     Subdivision 1.  [ESTABLISHMENT.] A Mexican origin education 
 81.25  pilot grant program is established to assist school districts 
 81.26  and communities in meeting the educational and culturally 
 81.27  related academic needs of students of Mexican origin. 
 81.28     Subd. 2.  [EXPECTED OUTCOMES.] Grant recipients shall use 
 81.29  the funds for programs designed to improve the school success of 
 81.30  students of Mexican origin.  Grant proceeds may be used for 
 81.31  curriculum and staff development, tutoring, mentoring, parent 
 81.32  involvement, and other programs that are designed to: 
 81.33     (1) improve student achievement and reduce dropout rates; 
 81.34     (2) increase student knowledge and understanding of Mexican 
 81.35  history; 
 81.36     (3) improve instruction by developing the cultural 
 82.1   competence skills of teachers and other staff; and 
 82.2      (4) increase parent involvement in education and the school 
 82.3   community. 
 82.4      Subd. 3.  [GRANT ELIGIBILITY, APPLICATIONS, AND AWARDS.] 
 82.5   The commissioner of education shall prescribe the form and 
 82.6   manner of applications and may award grants to the applicants 
 82.7   likely to meet the outcomes in subdivision 2.  The commissioner 
 82.8   shall give preference to grant proposals that provide 
 82.9   collaboration with community resources and a local match. 
 82.10     Sec. 15.  [COMMISSIONERS' DUTIES.] 
 82.11     Subdivision 1.  [ALIGNMENT OF RULES.] The commissioners of 
 82.12  education, human services, and health shall review current state 
 82.13  rules and statutes concerning the disability definitions, 
 82.14  eligibility criteria, assessment and diagnostic practices, 
 82.15  licensing of service providers, aversive and deprivation 
 82.16  procedures, and case management procedures for programs and 
 82.17  services for children with disabilities provided by the 
 82.18  education and human services systems.  The commissioners shall 
 82.19  report to the education and health and human services committees 
 82.20  of the legislature by February 15, 1996, on recommendations for 
 82.21  modifying state rules and statutes and applying for necessary 
 82.22  federal waivers to improve service delivery and promote 
 82.23  integration and collaboration between the education and human 
 82.24  services systems.  The commissioners shall include state and 
 82.25  local program administrators and service providers in the 
 82.26  process for reviewing the state statutes and rules. 
 82.27     Sec. 16.  [LOCAL TRAINING PROGRAMS.] 
 82.28     The commissioners of education, human services, and health 
 82.29  shall jointly develop and implement a training program for local 
 82.30  staff in school districts and county human services and social 
 82.31  services agencies who work with children with disabilities and 
 82.32  their families.  Implementation of the training program shall 
 82.33  begin no later than January 15, 1996.  The training shall 
 82.34  familiarize staff with the disability definitions, eligibility 
 82.35  criteria, assessment and diagnostic practices, available 
 82.36  services, and case management procedures of each of the service 
 83.1   providing systems.  The goal of the training is to enable local 
 83.2   staff to determine if children with disabilities may be eligible 
 83.3   for interagency services, involve staff from appropriate 
 83.4   agencies in collaboratively developing a multiagency plan of 
 83.5   care, reduce duplication and promote service coordination, and 
 83.6   improve services to children with disabilities and their 
 83.7   families. 
 83.8      Sec. 17.  [OSSEO LEVY.] 
 83.9      For 1995 taxes payable in 1996 only, independent school 
 83.10  district No. 279, Osseo, may levy a tax in an amount not to 
 83.11  exceed $500,000.  The proceeds of this levy must be used to 
 83.12  provide instructional services for at-risk children. 
 83.13     Sec. 18.  [FEDERAL SPECIAL EDUCATION FUNDS.] 
 83.14     A school district shall not transfer a special education 
 83.15  expenditure from a federal revenue source to a state revenue 
 83.16  source for fiscal year 1995 after March 30, 1995. 
 83.17     Sec. 19.  [APPROPRIATIONS.] 
 83.18     Subdivision 1.  [DEPARTMENT OF EDUCATION.] The sums 
 83.19  indicated in this section are appropriated from the general fund 
 83.20  or other named fund to the department of education for the 
 83.21  fiscal years designated. 
 83.22     Subd. 2.  [AMERICAN INDIAN LANGUAGE AND CULTURE PROGRAMS.] 
 83.23  For grants to American Indian language and culture education 
 83.24  programs according to Minnesota Statutes, section 126.54, 
 83.25  subdivision 1: 
 83.26       $591,000     .....     1996
 83.27       $591,000     .....     1997
 83.28     The 1996 appropriation includes $88,000 for 1995 and 
 83.29  $503,000 for 1996.  
 83.30     The 1997 appropriation includes $88,000 for 1996 and 
 83.31  $503,000 for 1997.  
 83.32     Any balance in the first year does not cancel but is 
 83.33  available in the second year. 
 83.34     Subd. 3.  [AMERICAN INDIAN EDUCATION.] (a) For certain 
 83.35  American Indian education programs in school districts: 
 83.36       $175,000       .....     1996
 84.1        $175,000       .....     1997
 84.2      The 1996 appropriation includes $26,000 for 1995 and 
 84.3   $149,000 for 1996.  
 84.4      The 1997 appropriation includes $26,000 for 1996 and 
 84.5   $149,000 for 1997.  
 84.6      (b) These appropriations are available for expenditure with 
 84.7   the approval of the commissioner of the department of education. 
 84.8      (c) The commissioner must not approve the payment of any 
 84.9   amount to a school district or school under this subdivision 
 84.10  unless that school district or school is in compliance with all 
 84.11  applicable laws of this state. 
 84.12     (d) Up to the following amounts may be distributed to the 
 84.13  following schools and school districts for each fiscal year:  
 84.14  $54,800, Pine Point School; $9,800 to independent school 
 84.15  district No. 166, Cook county; $14,900 to independent school 
 84.16  district No. 432, Mahnomen; $14,200 to independent school 
 84.17  district No. 435, Waubun; $42,200 to independent school district 
 84.18  No. 707, Nett Lake; and $39,100 to independent school district 
 84.19  No. 38, Red Lake.  These amounts must be spent only for the 
 84.20  benefit of American Indian pupils and to meet established state 
 84.21  educational standards or statewide requirements. 
 84.22     (e) Before a district or school can receive money under 
 84.23  this subdivision, the district or school must submit, to the 
 84.24  commissioner, evidence that it has complied with the uniform 
 84.25  financial accounting and reporting standards act, Minnesota 
 84.26  Statutes, sections 121.904 to 121.917. 
 84.27     Subd. 4.  [AMERICAN INDIAN POST-SECONDARY PREPARATION 
 84.28  GRANTS.] For American Indian post-secondary preparation grants 
 84.29  according to Minnesota Statutes, section 124.481: 
 84.30       $857,000     .....     1996
 84.31       $857,000     .....     1997
 84.32     Any balance in the first year does not cancel but is 
 84.33  available in the second year. 
 84.34     Subd. 5.  [AMERICAN INDIAN SCHOLARSHIPS.] For American 
 84.35  Indian scholarships according to Minnesota Statutes, section 
 84.36  124.48: 
 85.1        $1,600,000     .....     1996 
 85.2        $1,600,000     .....     1997 
 85.3      Any unexpended balance remaining in the first year does not 
 85.4   cancel but is available in the second year. 
 85.5      Subd. 6.  [INDIAN TEACHER PREPARATION GRANTS.] (a) For 
 85.6   joint grants to assist Indian people to become teachers: 
 85.7        $190,000     .....     1996 
 85.8        $190,000     .....     1997 
 85.9      (b) Up to $70,000 each year is for a joint grant to the 
 85.10  University of Minnesota at Duluth and the Duluth school district.
 85.11     (c) Up to $40,000 each year is for a joint grant to each of 
 85.12  the following: 
 85.13     (1) Bemidji state university and the Red Lake school 
 85.14  district; 
 85.15     (2) Moorhead state university and a school district located 
 85.16  within the White Earth reservation; and 
 85.17     (3) Augsburg college, independent school district No. 625, 
 85.18  St. Paul, and the Minneapolis school district. 
 85.19     (d) Money not used for students at one location may be 
 85.20  transferred for use at another location. 
 85.21     (e) Any balance in the first year does not cancel but is 
 85.22  available in the second year. 
 85.23     Subd. 7.  [TRIBAL CONTRACT SCHOOLS.] For tribal contract 
 85.24  school aid according to Minnesota Statutes, section 124.86: 
 85.25       $238,000     .....     1996
 85.26       $361,000     .....     1997
 85.27     The 1996 appropriation includes $19,000 for 1995 and 
 85.28  $219,000 for 1996. 
 85.29     The 1997 appropriation includes $38,000 for 1996 and 
 85.30  $323,000 for 1997. 
 85.31     Subd. 8.  [EARLY CHILDHOOD PROGRAMS AT TRIBAL SCHOOLS.] For 
 85.32  early childhood family education programs at tribal contract 
 85.33  schools: 
 85.34       $68,000     .....     1996 
 85.35       $68,000     .....     1997 
 85.36     Subd. 9.  [PART H.] For the department of education's share 
 86.1   of the state's obligation under Part H: 
 86.2        $  -0-       .....     1996 
 86.3        $400,000     .....     1997 
 86.4      This appropriation assumes that the departments of health 
 86.5   and human services will contribute $1,635,000 for the state 
 86.6   share of Part H costs. 
 86.7      Subd. 10.  [AMERICAN SIGN LANGUAGE; TEACHER EDUCATION 
 86.8   HEARING.] To assist school districts in educating teachers in 
 86.9   American sign language: 
 86.10       $13,000     .....     1996
 86.11       $12,000     .....     1997
 86.12     Any balance in the first year does not cancel but is 
 86.13  available in the second year. 
 86.14     Subd. 11.  [MEXICAN ORIGIN EDUCATION GRANTS.] For grants 
 86.15  for a Mexican origin education pilot grant program: 
 86.16       $50,000     .....     1996
 86.17       $25,000     .....     1997
 86.18     Any balance in the first year does not cancel but is 
 86.19  available in the second year. 
 86.20     Subd. 12.  [LAY ADVOCATES.] To pay or reimburse lay 
 86.21  advocates for their time and expense as provided in Minnesota 
 86.22  Statutes, section 120.17: 
 86.23       $10,000     .....     1996
 86.24     This appropriation is available until June 30, 1997. 
 86.25     Subd. 13.  [OPTIONS PLUS PILOT GRANTS.] For grants to 
 86.26  school districts for options plus pilot programs: 
 86.27        $100,000      .......      1996 
 86.28     Each grant shall not exceed $50,000. 
 86.29     This appropriation is available until June 30, 1997.  
 86.30     Recipients are encouraged to use other staff development 
 86.31  resources if available. 
 86.32     Subd. 14.  [VOCATIONAL SCHOOL PLANNING.] For staff costs 
 86.33  and related expenses for the vocational school planning 
 86.34  committee: 
 86.35       $100,000     .....     1996
 86.36     Subd. 15.  [SECONDARY VOCATIONAL EDUCATION AID.] For 
 87.1   secondary vocational education aid according to Minnesota 
 87.2   Statutes, section 124.573: 
 87.3        $11,874,000     .....     1996 
 87.4        $11,596,000     .....     1997 
 87.5      The 1996 appropriation includes $2,017,000 for 1995 and 
 87.6   $9,857,000 for 1996.  
 87.7      The 1997 appropriation includes $1,739,000 for 1996 and 
 87.8   $9,857,000 for 1997.  
 87.9      Subd. 16.  [SCHOOL INTERPRETERS.] For grants for school 
 87.10  interpreters to upgrade their interpreting/transliterating 
 87.11  skills and obtain certification: 
 87.12       $225,000    .....     1996
 87.13     Up to five percent of this amount may be used for 
 87.14  administration of this program. 
 87.15     This appropriation is available until June 30, 1997. 
 87.16     Sec. 20.  [EFFECTIVE DATE.] 
 87.17     Sections 11 and 13 are effective the day following final 
 87.18  enactment. 
 87.19                             ARTICLE 4
 87.20                         COMMUNITY PROGRAMS
 87.21     Section 1.  Minnesota Statutes 1994, section 116J.655, is 
 87.22  amended to read: 
 87.23     116J.655 [YOUTH ENTREPRENEURSHIP EDUCATION PROGRAM.] 
 87.24     The commissioner of trade and economic development shall 
 87.25  establish a youth entrepreneurship education program to improve 
 87.26  the academic and entrepreneurial skills of students and aid in 
 87.27  their transition from school to business creation.  The program 
 87.28  shall strengthen local economies by creating jobs that enable 
 87.29  citizens to remain in their communities and to foster 
 87.30  cooperation among educators, economic development professionals, 
 87.31  business leaders, and representatives of labor.  Assistance 
 87.32  under this section shall be available to new or existing 
 87.33  student-operated or school-operated businesses that have an 
 87.34  educational purpose, and provide service or products for 
 87.35  customers or clients who do not attend or work at the sponsoring 
 87.36  school.  The commissioner may require an equal local match for 
 88.1   assistance under this section up to the maximum grant amount of 
 88.2   $20,000. 
 88.3      Sec. 2.  Minnesota Statutes 1994, section 121.702, is 
 88.4   amended by adding a subdivision to read: 
 88.5      Subd. 10.  [COUNCIL.] "Council" means the governor's 
 88.6   workforce development council. 
 88.7      Sec. 3.  Minnesota Statutes 1994, section 121.705, is 
 88.8   amended to read: 
 88.9      121.705 [YOUTH WORKS GRANTS.] 
 88.10     Subdivision 1.  [APPLICATION.] An eligible organization 
 88.11  interested in receiving a grant under sections 121.704 to 
 88.12  121.709 may prepare and submit to the commission, and beginning 
 88.13  January 1, 1997, the council, an application that complies with 
 88.14  section 121.706. 
 88.15     Subd. 2.  [GRANT AUTHORITY.] The commission and, beginning 
 88.16  January 1, 1997, the council shall use any state appropriation 
 88.17  and any available federal funds, including any grant received 
 88.18  under federal law, to award grants to establish programs for 
 88.19  youth works meeting the requirements of section 121.706.  At 
 88.20  least one grant each must be available for a metropolitan 
 88.21  proposal, a rural proposal, and a statewide proposal.  If a 
 88.22  portion of the suburban metropolitan area is not included in the 
 88.23  metropolitan grant proposal, the statewide grant proposal must 
 88.24  incorporate at least one suburban metropolitan area.  In 
 88.25  awarding grants, the commission and, beginning January 1, 1997, 
 88.26  the council may select at least one residential proposal and one 
 88.27  nonresidential proposal, provided the proposals meet or exceed 
 88.28  the criteria in section 121.706. 
 88.29     Sec. 4.  Minnesota Statutes 1994, section 121.706, is 
 88.30  amended to read: 
 88.31     121.706 [GRANT APPLICATIONS.] 
 88.32     Subdivision 1.  [APPLICATIONS REQUIRED.] An organization 
 88.33  seeking federal or state grant money under sections 121.704 to 
 88.34  121.709 shall prepare and submit to the commission and, 
 88.35  beginning January 1, 1997, the council an application that meets 
 88.36  the requirements of this section.  The commission and, beginning 
 89.1   January 1, 1997, the council shall develop, and the applying 
 89.2   organizations shall comply with, the form and manner of the 
 89.3   application. 
 89.4      Subd. 2.  [APPLICATION CONTENT.] An applicant on its 
 89.5   application shall: 
 89.6      (1) propose a program to provide participants the 
 89.7   opportunity to perform community service to meet specific unmet 
 89.8   community needs, and participate in classroom, work-based, and 
 89.9   service learning; 
 89.10     (2) assess the community's unmet educational, human, 
 89.11  environmental, and public safety needs, the resources and 
 89.12  programs available for meeting those needs, and how young people 
 89.13  participated in assessing community needs; 
 89.14     (3) describe the educational component of the program, 
 89.15  including classroom hours per week, classroom time for 
 89.16  participants to reflect on the program experience, and 
 89.17  anticipated academic outcomes related to the service experience; 
 89.18     (4) describe the work to be performed, the ratio of youth 
 89.19  participants to crew leaders and mentors, and the expectations 
 89.20  and qualifications for crew leaders and mentors; 
 89.21     (5) describe local funds or resources available to meet the 
 89.22  match requirements of section 121.709; 
 89.23     (6) describe any funds available for the program from 
 89.24  sources other than the requested grant; 
 89.25     (7) describe any agreements with local businesses to 
 89.26  provide participants with work-learning opportunities and 
 89.27  mentors; 
 89.28     (8) describe any agreement with local post-secondary 
 89.29  educational institutions to offer participants course credits 
 89.30  for their community service learning experience; 
 89.31     (9) describe any agreement with a local high school or an 
 89.32  alternative learning center to provide remedial education, 
 89.33  credit for community service work and work-based learning, or 
 89.34  graduate equivalency degrees; 
 89.35     (10) describe any pay for service or other program delivery 
 89.36  mechanism that will provide reimbursement for benefits conferred 
 90.1   or recover costs of services participants perform; 
 90.2      (11) describe how local resources will be used to provide 
 90.3   support and assistance for participants to encourage them to 
 90.4   continue with the program, fulfill the terms of the contract, 
 90.5   and remain eligible for any postservice benefit; 
 90.6      (12) describe the arbitration mechanism for dispute 
 90.7   resolution required under section 121.707, subdivision 2; 
 90.8      (13) describe involvement of community leaders in 
 90.9   developing broad-based support for the program; 
 90.10     (14) describe the consultation and sign-off process to be 
 90.11  used with any local labor organization representing employees in 
 90.12  the area engaged in work similar to that proposed for the 
 90.13  program to ensure that no current employees or available 
 90.14  employment positions will be displaced by program participants; 
 90.15     (15) certify to the commission and, beginning January 1, 
 90.16  1997, the council, and to any certified bargaining 
 90.17  representatives representing employees of the applying 
 90.18  organization that the project will not decrease employment 
 90.19  opportunities that would be available without the project; will 
 90.20  not displace current employees including any partial 
 90.21  displacement in the form of reduced hours of work other than 
 90.22  overtime, wages, employment benefits, or regular seasonal work; 
 90.23  will not impair existing labor agreements; and will not result 
 90.24  in the substitution of project funding for preexisting funds or 
 90.25  sources of funds for ongoing work; 
 90.26     (16) describe the length of the required service period, 
 90.27  which may not be less than six months or more than two years, a 
 90.28  method to incorporate a participant's readiness to advance or 
 90.29  need for postservice financial assistance into individual 
 90.30  service requirements, and any opportunity for participating part 
 90.31  time or in another program; 
 90.32     (17) describe a program evaluation plan that contains 
 90.33  cost-effectiveness measures, measures of participant success 
 90.34  including educational accomplishments, job placements, community 
 90.35  contributions, and ongoing volunteer activities, outcome 
 90.36  measures based on a preprogram and postprogram survey of 
 91.1   community rates of arrest, incarceration, teenage pregnancy, and 
 91.2   other indicators of youth in trouble, and a list of local 
 91.3   resources dedicated to reducing these rates; 
 91.4      (18) describe a three-year financial plan for maintaining 
 91.5   the program; 
 91.6      (19) describe the role of local youth in developing all 
 91.7   aspects of the grant proposal; and 
 91.8      (20) describe the process by which the local private 
 91.9   industry council participated in, and reviewed the grant 
 91.10  application. 
 91.11     Sec. 5.  Minnesota Statutes 1994, section 121.707, 
 91.12  subdivision 2, is amended to read: 
 91.13     Subd. 2.  [TERMS OF SERVICE.] (a) A participant shall agree 
 91.14  to perform community service for the period required unless the 
 91.15  participant is unable to complete the terms of service for the 
 91.16  reason provided in paragraph (b). 
 91.17     An agreement to perform community service must be in the 
 91.18  form of a written contract between the participant and the 
 91.19  grantee organization.  Terms of the contract must include a 
 91.20  length of service between six months and two years, the amount 
 91.21  of the postservice benefit earned upon completion of the 
 91.22  contracted length of service, the participant's education goals 
 91.23  and commitment, the anticipated date of completion, dismissal 
 91.24  for cause, including failure to fully participate in the 
 91.25  education component, and the exclusive right to challenge a 
 91.26  dismissal for cause through binding arbitration.  The arbitrator 
 91.27  must be chosen jointly by the grantee organization and the 
 91.28  participant from the community or, if agreement cannot be 
 91.29  reached, an arbitrator must be determined from a list of 
 91.30  arbitrators provided by the American Arbitration Association.  
 91.31  The sole remedy available to the participant through arbitration 
 91.32  is reinstatement to the program and eligibility for postservice 
 91.33  benefits.  The parent or guardian of a minor shall consent in 
 91.34  writing to the contract between the participant and the grantee 
 91.35  organization. 
 91.36     (b) If the grantee organization releases a participant from 
 92.1   completing a term of service in a program receiving assistance 
 92.2   under sections 121.704 to 121.709 for compelling personal 
 92.3   circumstances as demonstrated by the participant, or if the 
 92.4   program in which the participant serves does not receive 
 92.5   continued funding for any reason, the grantee organization may 
 92.6   provide the participant with that portion of the financial 
 92.7   assistance described in subdivision 3 that corresponds to the 
 92.8   quantity of the service obligation completed by the individual. 
 92.9      If the grantee organization terminates a participant for 
 92.10  cause or a participant resigns without demonstrating compelling 
 92.11  personal circumstances under this section, no postservice 
 92.12  benefit under subdivision 3 may be paid. 
 92.13     (c) A participant performing part-time service under 
 92.14  sections 121.701 to 121.710 shall serve at least two weekends 
 92.15  each month and two weeks during the year.  A part-time 
 92.16  participant shall serve at least 900 hours during a period of 
 92.17  not more than two years, or three years if enrolled in an 
 92.18  institution of higher education.  A participant performing 
 92.19  full-time service under sections 121.701 to 121.710 shall serve 
 92.20  at least 1,700 hours during a period of not less than nine 
 92.21  months, or more than one year. 
 92.22     (d) Notwithstanding any other law to the contrary, for 
 92.23  purposes of tort liability under sections 3.732 and 3.736, while 
 92.24  participating in a program a participant is an employee of the 
 92.25  state. 
 92.26     (e) Participants performing community service in a program 
 92.27  are not public employees for purposes of chapter 43A, 179A, 197, 
 92.28  353, or any other law governing hiring or discharging of public 
 92.29  employees. 
 92.30     Sec. 6.  Minnesota Statutes 1994, section 121.707, 
 92.31  subdivision 3, is amended to read: 
 92.32     Subd. 3.  [POSTSERVICE BENEFIT.] (a) Each eligible 
 92.33  organization shall agree to provide to every participant shall 
 92.34  who fulfills the terms of a contract under section 121.707, 
 92.35  subdivision 2, receive a nontransferable postservice benefit 
 92.36  upon successfully completing the program.  The benefit must be 
 93.1   not less than $4,725 per year of full-time service or prorated 
 93.2   for part-time service or for partial service of at least 900 
 93.3   hours.  Upon signing a contract under section 121.707, 
 93.4   subdivision 2, each eligible organization shall deposit funds to 
 93.5   cover the full amount of postservice benefits obligated, except 
 93.6   for national education awards that are deposited in the national 
 93.7   service trust fund.  Funds encumbered in fiscal years 1994 and 
 93.8   1995 for postservice benefits shall be available until the 
 93.9   participants for whom the funds were encumbered are no longer 
 93.10  eligible to draw benefits.  
 93.11     (b) Nothing in this subdivision prevents a grantee 
 93.12  organization from using funds from nonfederal or nonstate 
 93.13  sources to increase the value of postservice benefits above the 
 93.14  value described in paragraph (a). 
 93.15     (c) The higher education coordinating board shall establish 
 93.16  an account for depositing funds for postservice 
 93.17  benefits received from eligible organizations.  If a participant 
 93.18  does not complete the term of service or, upon successful 
 93.19  completion of the program, does not use a postservice benefit 
 93.20  according to subdivision 4 within seven years after completing 
 93.21  the program, the amount of the postservice benefit shall be used 
 93.22  to provide a postservice benefit refunded to the eligible 
 93.23  organization or, at the organization's discretion, dedicated to 
 93.24  another eligible participant.  Interest earned on funds 
 93.25  deposited in the postservice benefit account is appropriated to 
 93.26  the higher education coordinating board for the costs of 
 93.27  administering the postservice benefits accounts.  
 93.28     (d) The state shall provide an additional postservice 
 93.29  benefit to any participant who successfully completes the 
 93.30  program.  The benefit must be a credit of five points to be 
 93.31  added to the competitive open rating of a participant who 
 93.32  obtains a passing grade on a civil service examination under 
 93.33  chapter 43A.  The benefit is available for five years after 
 93.34  completing the community service. 
 93.35     Sec. 7.  Minnesota Statutes 1994, section 121.707, 
 93.36  subdivision 4, is amended to read: 
 94.1      Subd. 4.  [USES OF POSTSERVICE BENEFITS.] (a) A postservice 
 94.2   benefit for a participant provided under subdivision 3, 
 94.3   paragraph (a), (b), or (c), must be available for seven years 
 94.4   after completing the program and may only be used for: 
 94.5      (1) paying a student loan; 
 94.6      (2) costs of attending an institution of higher education; 
 94.7   or 
 94.8      (3) expenses incurred by a student in an approved youth 
 94.9   apprenticeship program under chapter 126B, or in a registered 
 94.10  apprenticeship program approved by the department of labor and 
 94.11  industry. 
 94.12  Financial assistance provided under this subdivision must be in 
 94.13  the form of vendor payments whenever possible.  Any postservice 
 94.14  benefits provided by federal funds or vouchers may be used as a 
 94.15  downpayment on, or closing costs for, purchasing a first home. 
 94.16     (b) Postservice benefits are to be used to develop skills 
 94.17  required in occupations where numbers of jobs are likely to 
 94.18  increase.  The commission, in consultation with the education 
 94.19  and employment transitions council, and beginning January 1, 
 94.20  1997, the workforce development council, shall determine how the 
 94.21  benefits may be used in order to best prepare participants with 
 94.22  skills that build on their service learning and equip them for 
 94.23  meaningful employment. 
 94.24     (c) The postservice benefit shall not be included in 
 94.25  determining financial need when establishing eligibility or 
 94.26  award amounts for financial assistance programs under chapter 
 94.27  136A. 
 94.28     Sec. 8.  Minnesota Statutes 1994, section 121.707, 
 94.29  subdivision 6, is amended to read: 
 94.30     Subd. 6.  [PROGRAM TRAINING.] (a) The commission and, 
 94.31  beginning January 1, 1997, the council shall, within available 
 94.32  resources, ensure an opportunity for each participant to have 
 94.33  three weeks of training in a residential setting.  If offered, 
 94.34  each training session must: 
 94.35     (1) orient each participant in the nature, philosophy, and 
 94.36  purpose of the program; 
 95.1      (2) build an ethic of community service through general 
 95.2   community service training; and 
 95.3      (3) provide additional training as it determines necessary. 
 95.4      (b) Each grantee organization shall also train participants 
 95.5   in skills relevant to the community service opportunity. 
 95.6      Sec. 9.  Minnesota Statutes 1994, section 121.707, 
 95.7   subdivision 7, is amended to read: 
 95.8      Subd. 7.  [TRAINING AND EDUCATION REQUIREMENTS.] Each 
 95.9   grantee organization shall assess the educational level of each 
 95.10  entering participant.  Each grantee shall work to enhance the 
 95.11  educational skills of each participant.  The commission and, 
 95.12  beginning January 1, 1997, the council may coordinate or 
 95.13  contract with educational institutions or other providers for 
 95.14  educational services and evaluation.  All grantees shall give 
 95.15  priority to educating and training participants who do not have 
 95.16  a high school diploma or its equivalent, or who cannot afford 
 95.17  post-secondary training and education. 
 95.18     Sec. 10.  Minnesota Statutes 1994, section 121.708, is 
 95.19  amended to read: 
 95.20     121.708 [PRIORITY.] 
 95.21     The commission and, beginning January 1, 1997, the council 
 95.22  shall give priority to an eligible organization proposing a 
 95.23  program that meets the goals of sections 121.704 to 121.707, and 
 95.24  that: 
 95.25     (1) involves youth in a meaningful way in all stages of the 
 95.26  program, including assessing community needs, preparing the 
 95.27  application, and assuming postservice leadership and mentoring 
 95.28  responsibilities; 
 95.29     (2) serves a community with significant unmet needs; 
 95.30     (3) provides an approach that is most likely to reduce 
 95.31  arrest rates, incarceration rates, teenage pregnancy, and other 
 95.32  indicators of troubled youth; 
 95.33     (4) builds linkages with existing, successful programs; and 
 95.34     (5) can be operational quickly. 
 95.35     Sec. 11.  Minnesota Statutes 1994, section 121.709, is 
 95.36  amended to read: 
 96.1      121.709 [MATCH REQUIREMENTS.] 
 96.2      Youth works grant funds must be used for the living 
 96.3   allowance, cost of employer taxes under sections 3111 and 3301 
 96.4   of the Internal Revenue Code of 1986, workers' compensation 
 96.5   coverage, and health benefits for each program participant.  
 96.6   Youthworks grant funds may also be used to supplement applicant 
 96.7   resources to fund postservice benefits for program participants. 
 96.8   Applicant resources, from sources and in a form determined by 
 96.9   the commission and, beginning January 1, 1997, the council, must 
 96.10  be used to provide for all other program operating costs, 
 96.11  including the portion of the applicant's obligation for 
 96.12  postservice benefits that is not covered by state or federal 
 96.13  grant funds and such costs as supplies, materials, 
 96.14  transportation, and salaries and benefits of those staff 
 96.15  directly involved in the operation, internal monitoring, and 
 96.16  evaluation of the program.  Administrative expenses must not 
 96.17  exceed five percent of total program costs.  
 96.18     Sec. 12.  Minnesota Statutes 1994, section 121.710, is 
 96.19  amended to read: 
 96.20     121.710 [EVALUATION AND REPORTING REQUIREMENTS.] 
 96.21     Subdivision 1.  [GRANTEE ORGANIZATIONS.] Each grantee 
 96.22  organization shall report to the commission and, beginning 
 96.23  January 1, 1997, the council at the time and on the matters 
 96.24  requested by the commission and, beginning January 1, 1997, the 
 96.25  council. 
 96.26     Subd. 2.  [INTERIM REPORT.] The commission and, beginning 
 96.27  January 1, 1997, the council shall report semiannually to the 
 96.28  legislature with interim recommendations to change the program. 
 96.29     Subd. 3.  [FINAL REPORT.] The commission and, beginning 
 96.30  January 1, 1997, the council shall present a final report to the 
 96.31  legislature by January 1, 1998, summarizing grantee evaluations, 
 96.32  reporting on individual participants and participating grantee 
 96.33  organizations, and recommending any changes to improve or expand 
 96.34  the program. 
 96.35     Sec. 13.  Minnesota Statutes 1994, section 121.885, 
 96.36  subdivision 1, is amended to read: 
 97.1      Subdivision 1.  [SERVICE LEARNING SERVICE-LEARNING AND 
 97.2   WORK-BASED LEARNING PROGRAMS STUDY.] The Minnesota commission on 
 97.3   national and community service, established in section 121.703, 
 97.4   governor's workforce development council shall assist the 
 97.5   commissioner of education in studying how to combine community 
 97.6   service activities and service learning service-learning with 
 97.7   work-based learning programs. 
 97.8      Sec. 14.  Minnesota Statutes 1994, section 121.885, 
 97.9   subdivision 4, is amended to read: 
 97.10     Subd. 4.  [PROGRAMS FOLLOWING YOUTH COMMUNITY SERVICE.] (a) 
 97.11  The Minnesota commission on national and community 
 97.12  service established in section 121.703, in cooperation with the 
 97.13  governor's workforce development council, the commissioner and 
 97.14  the higher education coordinating board, shall provide for those 
 97.15  participants who successfully complete youth community service 
 97.16  under sections 121.703 121.704 to 121.709, the following: 
 97.17     (1) for those who have a high school diploma or its 
 97.18  equivalent, an opportunity to participate in a youth 
 97.19  apprenticeship program at a community or technical college; and 
 97.20     (2) for those who are post-secondary students, an 
 97.21  opportunity to participate in an educational program that 
 97.22  supplements post-secondary courses leading to a degree or a 
 97.23  statewide credential of academic and occupational proficiency. 
 97.24     (b) Participants who successfully complete a youth 
 97.25  community service program under sections 121.704 to 121.710 are 
 97.26  eligible to receive an education voucher as provided under 
 97.27  section 121.707, subdivision 4.  The voucher recipient may apply 
 97.28  the voucher toward the cost of the recipient's tuition and other 
 97.29  education-related expenses at a post-secondary school under 
 97.30  paragraph (a). 
 97.31     (c) The Minnesota commission on national and community 
 97.32  service governor's workforce development council, in cooperation 
 97.33  with the state board of technical colleges board of trustees of 
 97.34  the Minnesota state colleges and universities, shall establish a 
 97.35  mechanism to transfer credit earned in a youth apprenticeship 
 97.36  program between the technical colleges and other post-secondary 
 98.1   institutions offering applied associate degrees. 
 98.2      Sec. 15.  Minnesota Statutes 1994, section 121.912, 
 98.3   subdivision 1b, is amended to read: 
 98.4      Subd. 1b.  [TRA AND FICA TRANSFER.] (a) Notwithstanding 
 98.5   subdivision 1, a district shall may transfer money from the 
 98.6   general fund to the community service fund for the employer 
 98.7   contributions for teacher retirement and FICA for employees who 
 98.8   are members of a teacher retirement association and who are paid 
 98.9   from the community service fund.  
 98.10     (b) A district shall not transfer money under paragraph (a) 
 98.11  for employees who are paid with money other than normal 
 98.12  operating funds, as defined in section 354.05, subdivision 27.  
 98.13     Sec. 16.  [124.255] [SCHOOL ENRICHMENT PARTNERSHIP 
 98.14  PROGRAM.] 
 98.15     Subdivision 1.  [ESTABLISHMENT.] The school enrichment 
 98.16  partnership program is established.  The purpose of the program 
 98.17  is to encourage school districts to expand the involvement of 
 98.18  the private sector in the delivery of academic programs.  The 
 98.19  program will provide matching state funds for those provided by 
 98.20  the private sector. 
 98.21     Subd. 2.  [REVENUE ELIGIBILITY.] A school district or group 
 98.22  of school districts is eligible to receive state aid under this 
 98.23  program.  Districts may enter into joint agreements to provide 
 98.24  programs or make expenditures under this section.  The 
 98.25  limitations under this subdivision shall apply to these programs 
 98.26  or expenditures as if they were operated by a single district.  
 98.27  A district may receive $1 of state aid for each $2 raised from 
 98.28  the private sector.  The private match must be in the form of 
 98.29  cash.  Specific types of noncash support may be considered for 
 98.30  the private match.  State aid is limited to the lesser of 
 98.31  $75,000 or $10 per pupil unit per district. 
 98.32     Subd. 3.  [REVENUE MANAGEMENT.] The use of the state and 
 98.33  private funds provided under this section is under the general 
 98.34  control of the school board.  The board may establish, without 
 98.35  using state funds or public employees, a separate foundation to 
 98.36  directly manage the funds.  The private funds must be used to 
 99.1   acquire instructional or noninstructional academic materials of 
 99.2   a capital nature including, but not limited to, textbooks, 
 99.3   globes, maps, and other academic material.  The funds may not be 
 99.4   used for salaries or other employee benefits. 
 99.5      Subd. 4.  [PROCEDURES; REPORT.] The Minnesota academic 
 99.6   excellence foundation, under the direction of the commissioner 
 99.7   of education, shall establish application forms, guidelines, 
 99.8   procedures, and timelines for the distribution of state aid.  
 99.9   The commissioner may require reporting necessary to evaluate the 
 99.10  program.  Measures of success will include numbers of 
 99.11  partnerships and funds raised; numbers of school foundations 
 99.12  formed; and demonstrated linkages of partnerships to improved 
 99.13  instructional delivery resulting in increased student learning. 
 99.14     Subd. 5.  [RESULTS-ORIENTED CHARTER 
 99.15  SCHOOLS.] Notwithstanding section 124.248, subdivision 4, 
 99.16  paragraph (b), a results-oriented charter school is eligible to 
 99.17  participate in the program under this section as if it were a 
 99.18  school district. 
 99.19     Sec. 17.  Minnesota Statutes 1994, section 124.261, 
 99.20  subdivision 1, is amended to read: 
 99.21     Subdivision 1.  [AID ELIGIBILITY.] For fiscal year 1996, 
 99.22  adult high school graduation aid for eligible pupils age 21 or 
 99.23  over, equals 65 percent of the general education formula 
 99.24  allowance times 1.30 times the average daily membership under 
 99.25  section 124.17, subdivision 2e.  For 1997 and later fiscal 
 99.26  years, adult high school graduation aid equals 45 percent of the 
 99.27  general education formula allowance times 1.3 times the average 
 99.28  daily membership under section 124.17, subdivision 2e.  Adult 
 99.29  high school graduation aid must be paid in addition to any other 
 99.30  aid to the district.  Pupils age 21 or over may not be counted 
 99.31  by the district for any purpose other than adult high school 
 99.32  graduation aid. 
 99.33     Sec. 18.  Minnesota Statutes 1994, section 124.2711, 
 99.34  subdivision 2a, is amended to read: 
 99.35     Subd. 2a.  [EARLY CHILDHOOD FAMILY EDUCATION LEVY.] To 
 99.36  obtain early childhood family education revenue, a district may