1.1                          A bill for an act
  1.2             relating to education; clarifying education finance 
  1.3             statutes; clarifying school transportation statutes; 
  1.4             clarifying revenue used in calculation of community 
  1.5             education and early childhood education reserve 
  1.6             accounts; modifying name of high school graduation 
  1.7             incentives program; repealing law addressing 
  1.8             relationship between technical colleges and school 
  1.9             districts; modifying fall payment date of endowment 
  1.10            fund earnings; clarifying adjustment of aids and 
  1.11            levies for reduced pupil unit weight for secondary 
  1.12            students; modifying funding adjustment for open 
  1.13            enrollment and other alternative attendance programs; 
  1.14            converting referendum authority to an allowance per 
  1.15            pupil unit; clarifying that district may convert to 
  1.16            ongoing referendum; allowing county apportionment 
  1.17            amounts to be recovered from state aids; adjusting 
  1.18            general education aid for pupils attending charter 
  1.19            schools; clarifying the elimination of the capital 
  1.20            expenditure and transportation funds; modifying the 
  1.21            special education due process hearing; modifying the 
  1.22            LEP funding formula to allow the base year to roll 
  1.23            forward; modifying calculation of assurance of mastery 
  1.24            aid to use fund balance pupil units; clarifying 
  1.25            tuition for special education excess cost revenue; 
  1.26            providing for adjustments for alternative attendance 
  1.27            programs in general revenue for purposes of computing 
  1.28            excess cost revenue; providing for the computation of 
  1.29            secondary vocational-disabled revenue using current 
  1.30            year data; modifying the interagency early childhood 
  1.31            intervention system; requiring that community action 
  1.32            programs participate in family services 
  1.33            collaboratives; removing exclusion of school buses 
  1.34            from bonding authority and limiting total levy for 
  1.35            equipment and facilities bonds; providing for 
  1.36            clarification and consistency of facilities bonding; 
  1.37            repealing the open enrollment transportation appeal 
  1.38            requirement; modifying post-secondary enrollment 
  1.39            options program to include no payment for no student 
  1.40            attendance in class; expanding the number of districts 
  1.41            receiving year-round school/extended week or day pilot 
  1.42            program grants; eliminating the private alternative 
  1.43            program report; excluding transportation revenue from 
  1.44            general education revenue for charter schools; 
  1.45            providing for changes in transportation funding for 
  1.46            charter schools; removing obsolete references to 
  2.1             equipment revenue; modifying special education and 
  2.2             limited English proficiency aid for a charter school; 
  2.3             clarifying approved costs for a magnet school 
  2.4             facility; clarifying statutory operating debt and 
  2.5             adjusting the reporting date; appropriating money; 
  2.6             amending Minnesota Statutes 1994, sections 120.062, 
  2.7             subdivisions 7 and 9; 120.17, subdivision 9, and by 
  2.8             adding a subdivision; 120.1701, subdivision 10; 
  2.9             120.73, subdivision 1; 121.8355, subdivision 1, and by 
  2.10            adding a subdivision; 121.906; 123.35, by adding a 
  2.11            subdivision; 123.39, subdivision 8b; 123.932, 
  2.12            subdivisions 1b, 1c, 1e, and 11; 123.933, as amended; 
  2.13            123.935, subdivisions 2 and 7; 124.09; 124.155, 
  2.14            subdivision 1; 124.17, subdivision 1e, and by adding 
  2.15            subdivisions; 124.195, subdivision 8; 124.239, 
  2.16            subdivision 5, and by adding subdivisions; 124.2711, 
  2.17            subdivision 6; 124.2713, subdivision 10; 124.273, by 
  2.18            adding subdivisions; 124.276; 124.311, subdivisions 1, 
  2.19            4, and 5; 124.86, subdivisions 1, 2, and by adding 
  2.20            subdivisions; 124.91, subdivision 1, and by adding a 
  2.21            subdivision; 124A.02, subdivision 25; 124A.03, 
  2.22            subdivision 3b, and by adding a subdivision; 
  2.23            124A.0311, subdivision 3; 124A.035, subdivision 4; 
  2.24            124A.036, by adding a subdivision; 124A.22, by adding 
  2.25            a subdivision; 124A.28, subdivision 1, and by adding a 
  2.26            subdivision; 124A.291; 124C.45, by adding a 
  2.27            subdivision; 124C.498, subdivision 3; 125.05, 
  2.28            subdivision 1a, and by adding a subdivision; 125.70; 
  2.29            125.701; 125.703; 125.704; 125.705, subdivision 1; 
  2.30            126.22, subdivision 1; 126.531, subdivision 3; 126.83; 
  2.31            128D.11, subdivisions 3, 5, 8, and 10; 169.4504, by 
  2.32            adding a subdivision; 256.736, subdivision 11; 276.11, 
  2.33            by adding a subdivision; 466.01, subdivision 1; and 
  2.34            471.59, subdivision 11; Minnesota Statutes 1995 
  2.35            Supplement, sections 115A.072, subdivision 1; 120.064, 
  2.36            subdivision 9; 120.17, subdivisions 3a, 3b, and 6; 
  2.37            120.1701, subdivision 20; 120.181; 120.74, subdivision 
  2.38            1; 121.904, subdivisions 4a and 4c; 121.911, 
  2.39            subdivision 5; 121.917, subdivision 4; 123.3514, 
  2.40            subdivisions 6 and 6b; 123.39, subdivision 6; 
  2.41            123.7991, subdivision 2; 124.155, subdivision 2; 
  2.42            124.17, subdivisions 1 and 1d; 124.195, subdivision 
  2.43            12; 124.223, subdivision 4; 124.225, subdivisions 8l, 
  2.44            14, 16, and 17; 124.243, subdivision 2; 124.2445; 
  2.45            124.2455; 124.248, subdivisions 1, 1a, 3, and 4; 
  2.46            124.2727, subdivision 6d; 124.273, subdivisions 1c and 
  2.47            1d; 124.314, subdivision 2; 124.3201, subdivisions 1, 
  2.48            2, 3, and by adding a subdivision; 124.3202; 124.323, 
  2.49            subdivisions 1 and 2; 124.574, subdivisions 2f and 2g; 
  2.50            124.918, subdivision 2; 124A.03, subdivision 2; 
  2.51            124A.0311, subdivision 2; 124A.22, subdivisions 2a, 
  2.52            10, and 13b; 124A.23, subdivision 4; 124C.498, 
  2.53            subdivision 2; 124C.74, subdivisions 2 and 3; 126.22, 
  2.54            subdivisions 2, 3, 5, and 8; 126.23; 128B.03, 
  2.55            subdivision 3a; 134.46; 169.01, subdivision 6; 
  2.56            237.065; 325G.203, subdivision 11; and 631.40, 
  2.57            subdivision 1a; Laws 1993, chapter 224, article 1, 
  2.58            section 34, subdivisions 2 and 3; article 12, sections 
  2.59            39, as amended, and 41, as amended; Laws 1995, First 
  2.60            Special Session chapter 3, article 1, section 61; 
  2.61            article 2, sections 51, subdivision 7; 52; and 53; 
  2.62            article 4, section 29, subdivision 10; article 5, 
  2.63            section 20, subdivisions 5, 6, and 7; article 6, 
  2.64            section 17, subdivisions 2, 4, and by adding 
  2.65            subdivisions; article 7, section 5, subdivision 4; 
  2.66            article 8, sections 25, subdivisions 2 and 18; and 27; 
  2.67            article 12, sections 8, subdivision 1; and 12, 
  2.68            subdivision 7; article 14, section 5; article 15, 
  2.69            section 26, subdivisions 7 and 8; proposing coding for 
  2.70            new law in Minnesota Statutes, chapters 120; 121; 125; 
  2.71            and 126; repealing Minnesota Statutes 1995 Supplement, 
  3.1             section 124.155, subdivision 2; Laws 1991, chapter 
  3.2             265, article 4, section 27; and Laws 1993, chapter 
  3.3             224, article 1, section 34, subdivision 1. 
  3.4      BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
  3.5                              ARTICLE 1 
  3.6                          GENERAL EDUCATION 
  3.7      Section 1.  Minnesota Statutes 1995 Supplement, section 
  3.8   121.904, subdivision 4a, is amended to read: 
  3.9      Subd. 4a.  [LEVY RECOGNITION.] (a) "School district tax 
  3.10  settlement revenue" means the current, delinquent, and 
  3.11  manufactured home property tax receipts collected by the county 
  3.12  and distributed to the school district, including distributions 
  3.13  made pursuant to section 279.37, subdivision 7, and excluding 
  3.14  the amount levied pursuant to section 124.914, subdivision 1. 
  3.15     (b) In June of each year, the school district shall 
  3.16  recognize as revenue, in the fund for which the levy was made, 
  3.17  the lesser of:  
  3.18     (1) the May, June, and July school district tax settlement 
  3.19  revenue received in that calendar year; or 
  3.20     (2) the sum of the state aids and credits enumerated in 
  3.21  section 124.155, subdivision 2, which are for the fiscal year 
  3.22  payable in that fiscal year plus an amount equal to the levy 
  3.23  recognized as revenue in June of the prior year plus 48 17.2 
  3.24  percent for fiscal year 1996 and 6.5 percent for fiscal year 
  3.25  1997 and thereafter of the amount of the levy certified in the 
  3.26  prior calendar year according to section 124A.03, subdivision 2, 
  3.27  plus or minus auditor's adjustments, not including levy portions 
  3.28  that are assumed by the state; or 
  3.29     (3) 48 17.2 percent for fiscal year 1996, 6.5 percent for 
  3.30  fiscal year 1997 and thereafter of the amount of the levy 
  3.31  certified in the prior calendar year, plus or minus auditor's 
  3.32  adjustments, not including levy portions that are assumed by the 
  3.33  state, which remains after subtracting, by fund, the amounts 
  3.34  levied for the following purposes:  
  3.35     (i) reducing or eliminating projected deficits in the 
  3.36  reserved fund balance accounts for unemployment insurance and 
  3.37  bus purchases; 
  4.1      (ii) statutory operating debt pursuant to section 124.914, 
  4.2   subdivision 1; 
  4.3      (iii) retirement and severance pay pursuant to sections 
  4.4   122.531, subdivision 9, 124.2725, subdivision 15, 124.4945, 
  4.5   124.912, subdivision 1, and 124.916, subdivision 3, and Laws 
  4.6   1975, chapter 261, section 4; 
  4.7      (iv) amounts levied for bonds issued and interest thereon, 
  4.8   amounts levied for debt service loans and capital loans, amounts 
  4.9   levied for down payments under section 124.82, subdivision 3, 
  4.10  and amounts levied pursuant to section 136C.411; and 
  4.11     (v) amounts levied under section 124.755.  
  4.12  Notwithstanding the foregoing, the levy recognition percentage 
  4.13  for the referendum levy certified according to section 124A.03, 
  4.14  subdivision 2, is 37.4 percent. 
  4.15     (c) In July of each year, the school district shall 
  4.16  recognize as revenue that portion of the school district tax 
  4.17  settlement revenue received in that calendar year and not 
  4.18  recognized as revenue for the previous fiscal year pursuant to 
  4.19  clause (b).  
  4.20     (d) All other school district tax settlement revenue shall 
  4.21  be recognized as revenue in the fiscal year of the settlement. 
  4.22  Portions of the school district levy assumed by the state, 
  4.23  including prior year adjustments and the amount to fund the 
  4.24  school portion of the reimbursement made pursuant to section 
  4.25  273.425, shall be recognized as revenue in the fiscal year 
  4.26  beginning in the calendar year for which the levy is payable. 
  4.27     Sec. 2.  Minnesota Statutes 1995 Supplement, section 
  4.28  121.904, subdivision 4c, is amended to read: 
  4.29     Subd. 4c.  [CHANGE IN LEVY RECOGNITION PERCENT.] (a) Money 
  4.30  appropriated under section 16A.152, subdivision 2, must be used 
  4.31  to reduce the levy recognition percent specified in subdivision 
  4.32  4a, clauses (b)(2) and (b)(3), for taxes payable in 
  4.33  the succeeding same calendar year the appropriation is made.  
  4.34     (b) The levy recognition percent shall equal the result of 
  4.35  the following computation:  the current levy recognition 
  4.36  percent, times the ratio of 
  5.1      (1) the statewide total amount of levy recognized in June 
  5.2   of the year in which the taxes are payable pursuant to 
  5.3   subdivision 4a, clause (b), excluding those levies that are 
  5.4   shifted for revenue recognition but are not included in the 
  5.5   computation of the adjustment to aids under section 124.155, 
  5.6   subdivision 1, reduced by the difference between the amount of 
  5.7   money appropriated under section 16A.152, subdivision 2, and the 
  5.8   amount required for the adjustment payment under clause (d), to 
  5.9      (2) the statewide total amount of the levy recognized in 
  5.10  June of the year in which the taxes are payable pursuant to 
  5.11  subdivision 4a, clause (b), excluding those levies that are 
  5.12  shifted for revenue recognition but are not included in the 
  5.13  computation of the adjustment to aids under section 124.155, 
  5.14  subdivision 1.  
  5.15     The result shall be rounded up to the nearest one-tenth of 
  5.16  a percent.  However, in no case shall the levy recognition 
  5.17  percent be reduced below zero or increased above the current 
  5.18  levy recognition percent.  
  5.19     (c) The commissioner of finance must certify to the 
  5.20  commissioner of children, families, and learning the levy 
  5.21  recognition percent computed under this subdivision by January 5 
  5.22  of each year.  The commissioner of children, families, and 
  5.23  learning must notify school districts of a change in the levy 
  5.24  recognition percent by January 15. 
  5.25     (d) When the levy recognition percent is increased or 
  5.26  decreased as provided in this subdivision, a special aid 
  5.27  adjustment shall be made to each school district with an 
  5.28  operating referendum levy:  
  5.29     (i) When the levy recognition percent is increased from the 
  5.30  prior fiscal year, the commissioner of children, families, and 
  5.31  learning shall calculate the difference between (1) the amount 
  5.32  of the levy under section 124A.03, that is recognized as revenue 
  5.33  for the current fiscal year according to subdivision 4a; and (2) 
  5.34  the amount of the levy, under section 124A.03, that would have 
  5.35  been recognized as revenue for the current fiscal year had the 
  5.36  percentage according to subdivision 4a, not been increased.  The 
  6.1   commissioner shall reduce other aids due the district by the 
  6.2   amount of the difference.  This aid reduction shall be in 
  6.3   addition to the aid reduction required because of the increase 
  6.4   pursuant to this subdivision of the levy recognition percent.  
  6.5      (ii) When the levy recognition percent is reduced from the 
  6.6   prior fiscal year, a special adjustment payment shall be made to 
  6.7   each school district with an operating referendum levy that 
  6.8   received an aid reduction when the levy recognition percent was 
  6.9   last increased.  The special adjustment payment shall be in 
  6.10  addition to the additional payments required because of the 
  6.11  reduction pursuant to this subdivision of the levy recognition 
  6.12  percent.  The amount of the special adjustment payment shall be 
  6.13  computed by the commissioner of children, families, and learning 
  6.14  such that any remaining portion of the aid reduction these 
  6.15  districts received that has not been repaid is repaid on a 
  6.16  proportionate basis as the levy recognition percent is reduced 
  6.17  from 50 percent to 31 percent.  The special adjustment payment 
  6.18  must be included in the state aid payments to school districts 
  6.19  according to the schedule specified in section 124.195, 
  6.20  subdivision 3.  
  6.21     (e) The commissioner of finance shall transfer from the 
  6.22  general fund to the education aids appropriations specified by 
  6.23  the commissioner of children, families, and learning, the 
  6.24  amounts needed to finance the additional payments required 
  6.25  because of the reduction pursuant to this subdivision of the 
  6.26  levy recognition percent.  Payments to a school district of 
  6.27  additional state aids resulting from a reduction in the levy 
  6.28  recognition percent must be included in the cash metering of 
  6.29  payments made according to section 124.195 after January 15, and 
  6.30  must be paid in a manner consistent with the percent specified 
  6.31  in that section. 
  6.32     Sec. 3.  Minnesota Statutes 1994, section 121.906, is 
  6.33  amended to read: 
  6.34     121.906 [EXPENDITURES; REPORTING.] 
  6.35     Subdivision 1.  [RECOGNITION.] School district expenditures 
  6.36  shall be recognized and reported on the district books of 
  7.1   account in accordance with this section. 
  7.2      There shall be fiscal year-end recognition of expenditures 
  7.3   and the related offsetting liabilities recorded in each fund in 
  7.4   accordance with the uniform financial accounting and reporting 
  7.5   standards for Minnesota school districts.  Encumbrances 
  7.6   outstanding at the end of the fiscal year do not constitute 
  7.7   expenditures or liabilities.  
  7.8      Deviations from the principles set forth in this section 
  7.9   subdivision shall be evaluated and explained in footnotes to 
  7.10  audited financial statements. 
  7.11     Subd. 2.  [ACCOUNTING.] Expenditures for any legal purpose 
  7.12  of the school district not accounted for elsewhere shall be 
  7.13  accounted for in the general fund. 
  7.14     Sec. 4.  Minnesota Statutes 1995 Supplement, section 
  7.15  121.911, subdivision 5, is amended to read: 
  7.16     Subd. 5.  [DEFICIT FOR CAPITAL PROJECTS.] Upon approval by 
  7.17  the commissioner of children, families, and learning, a district 
  7.18  may incur a deficit in the capital expenditure fund reserve for 
  7.19  operating capital account for a period not to exceed three years 
  7.20  to provide money for capital projects.  A description of the 
  7.21  project and a financial plan to recover the deficit shall be 
  7.22  approved by the commissioner prior to the initiation of the 
  7.23  project.  
  7.24     Sec. 5.  Minnesota Statutes 1994, section 124.09, is 
  7.25  amended to read: 
  7.26     124.09 [SCHOOL ENDOWMENT FUND, APPORTIONMENT.] 
  7.27     The school endowment fund shall be apportioned semiannually 
  7.28  by the commissioner, on the first Monday in March and October 
  7.29  September in each year, to districts whose schools have been in 
  7.30  session at least nine months.  The apportionment shall be in 
  7.31  proportion to the number of pupils in average daily membership 
  7.32  during the preceding year; provided, that apportionment shall 
  7.33  not be paid to a district for pupils for whom tuition is 
  7.34  received by the district. 
  7.35     Sec. 6.  Minnesota Statutes 1994, section 124.155, 
  7.36  subdivision 1, is amended to read: 
  8.1      Subdivision 1.  [AMOUNT OF ADJUSTMENT.] Each year state 
  8.2   aids and credits enumerated in subdivision 2 payable to any 
  8.3   school district for that fiscal year shall be adjusted, in the 
  8.4   order listed, by the commissioner of children, families, and 
  8.5   learning shall estimate for each district an amount equal to (1) 
  8.6   the amount the district recognized as revenue for the prior 
  8.7   fiscal year pursuant to section 121.904, subdivision 4a, clause 
  8.8   (b), minus (2) the amount the district recognizes as revenue for 
  8.9   the current fiscal year pursuant to section 121.904, subdivision 
  8.10  4a, clause (b).  For the purposes of making the aid adjustment 
  8.11  under this subdivision, the amount the district recognizes as 
  8.12  revenue for either the prior fiscal year or the current fiscal 
  8.13  year pursuant to section 121.904, subdivision 4a, clause (b), 
  8.14  shall not include any amount levied pursuant to sections 
  8.15  124.226, subdivision 9, 124.912, subdivisions 2 and 3, or a 
  8.16  successor provision only for those districts affected, 124.916, 
  8.17  subdivisions 1 and 2, 124.918, subdivision 6, and the amount 
  8.18  levied under section 124A.03, subdivision 2; and Laws 1992, 
  8.19  chapter 499, articles 1, section 20, and 6, section 36.  Payment 
  8.20  from the permanent school fund shall not be adjusted pursuant to 
  8.21  this section.  The school district shall be notified of the 
  8.22  amount of the adjustment made to each payment pursuant to this 
  8.23  section.  If the results of the calculation are negative, the 
  8.24  commissioner shall certify the reduction amount to the home 
  8.25  county auditor by April 15 of the fiscal year.  If the results 
  8.26  of the calculation are positive, the commissioner shall pay the 
  8.27  amount to the school district before June 20. 
  8.28     In the next fiscal year, the commissioner shall make the 
  8.29  same calculation for each district using actual data.  
  8.30  Additional payments to be made to the district shall occur by 
  8.31  September 30.  Additional amounts to be deducted shall be 
  8.32  certified to the home county auditor by September 30. 
  8.33     Sec. 7.  Minnesota Statutes 1995 Supplement, section 
  8.34  124.155, subdivision 2, is amended to read: 
  8.35     Subd. 2.  [ADJUSTMENT TO AIDS.] (a) The amount specified in 
  8.36  subdivision 1 shall be used to adjust the following state aids 
  9.1   and credits in the order listed: 
  9.2      (1) general education aid authorized in sections 124A.23 
  9.3   and 124B.20, excluding positive amounts calculated pursuant to 
  9.4   section 124A.036, subdivision 5; 
  9.5      (2) secondary vocational aid authorized in section 124.573; 
  9.6      (3) special education aid authorized in section 124.32; 
  9.7      (4) secondary vocational aid for children with a disability 
  9.8   authorized in section 124.574; 
  9.9      (5) aid for pupils of limited English proficiency 
  9.10  authorized in section 124.273; 
  9.11     (6) transportation aid authorized in section 124.225; 
  9.12     (7) community education programs aid authorized in section 
  9.13  124.2713; 
  9.14     (8) adult education aid authorized in section 124.26; 
  9.15     (9) early childhood family education aid authorized in 
  9.16  section 124.2711; 
  9.17     (10) capital expenditure aid authorized in sections 
  9.18  124.243, 124.244, and 124.83, excluding positive amounts 
  9.19  calculated pursuant to section 124.245, subdivision 6; 
  9.20     (11) school district cooperation aid authorized in section 
  9.21  124.2727; 
  9.22     (12) assurance of mastery aid according to section 124.311; 
  9.23     (13) homestead and agricultural credit aid, disparity 
  9.24  credit and aid, and changes to credits for prior year 
  9.25  adjustments according to section 273.1398, subdivisions 2, 3, 4, 
  9.26  and 7; 
  9.27     (14) attached machinery aid authorized in section 273.138, 
  9.28  subdivision 3; 
  9.29     (15) alternative delivery aid authorized in section 
  9.30  124.322; 
  9.31     (16) special education equalization aid authorized in 
  9.32  section 124.321; 
  9.33     (17) special education excess cost aid authorized in 
  9.34  section 124.323; 
  9.35     (18) learning readiness aid authorized in section 124.2615; 
  9.36     (19) cooperation-combination aid authorized in section 
 10.1   124.2725; and 
 10.2      (20) district cooperation revenue aid authorized in section 
 10.3   124.2727. 
 10.4      (b) The commissioner of children, families, and learning 
 10.5   shall schedule the timing of the adjustments to state aids and 
 10.6   credits specified in subdivision 1, as close to the end of the 
 10.7   fiscal year as possible. 
 10.8      Sec. 8.  Minnesota Statutes 1995 Supplement, section 
 10.9   124.17, subdivision 1, is amended to read: 
 10.10     Subdivision 1.  [PUPIL UNIT.] Pupil units for each resident 
 10.11  pupil in average daily membership shall be counted according to 
 10.12  this subdivision.  
 10.13     (a) A prekindergarten pupil with a disability who is 
 10.14  enrolled in a program approved by the commissioner and has an 
 10.15  individual education plan is counted as the ratio of the number 
 10.16  of hours of assessment and education service to 825 with a 
 10.17  minimum of 0.28, but not more than one. 
 10.18     (b) A prekindergarten pupil who is assessed but determined 
 10.19  not to be handicapped is counted as the ratio of the number of 
 10.20  hours of assessment service to 825.  
 10.21     (c) A kindergarten pupil with a disability who is enrolled 
 10.22  in a program approved by the commissioner is counted as the 
 10.23  ratio of the number of hours of assessment and education 
 10.24  services required in the fiscal year by the pupil's individual 
 10.25  education program plan to 875, but not more than one. 
 10.26     (d) A kindergarten pupil who is not included in paragraph 
 10.27  (c) is counted as .53 of a pupil unit for fiscal year 1995 and 
 10.28  thereafter. 
 10.29     (e) A pupil who is in any of grades 1 to 6 is counted as 
 10.30  1.06 pupil units for fiscal year 1995 and thereafter. 
 10.31     (f) For fiscal year 1996 and fiscal year 1997, a pupil who 
 10.32  is in any of grades 7 to 12 is counted as 1.3 pupil units.  For 
 10.33  fiscal year 1998, a pupil who is in any of grades 7 to 12 is 
 10.34  counted as 1.25 pupil units.  For fiscal year 1999 and later 
 10.35  years, a pupil who is in any of grades 7 to 12 is counted as 1.2 
 10.36  pupil units. 
 11.1      (g) For fiscal year 1996 and fiscal year 1997, a pupil who 
 11.2   is in the post-secondary enrollment options program is counted 
 11.3   as 1.3 pupil units.  For fiscal year 1998, a pupil who is in the 
 11.4   post-secondary enrollment options program is counted as 1.25 
 11.5   pupil units.  For fiscal year 1999 and later years, a pupil who 
 11.6   is in the post-secondary enrollment options program is counted 
 11.7   as 1.2 pupil units. 
 11.8      (h) In fiscal year 1998, the sum of pupil units used in 
 11.9   computing a district's general education revenue and referendum 
 11.10  revenue may not be reduced by more than two percent due to the 
 11.11  reduction in the secondary pupil weight from 1.3 as specified in 
 11.12  paragraphs (f) and (g).  In fiscal year 1999 and later years, 
 11.13  the sum of pupil units used in computing a district's general 
 11.14  education revenue and referendum revenue may not be decreased by 
 11.15  more than four percent due to the reduction in the secondary 
 11.16  weight from 1.3 as specified in paragraphs (f) and (g). 
 11.17     Sec. 9.  Minnesota Statutes 1995 Supplement, section 
 11.18  124.17, subdivision 1d, is amended to read: 
 11.19     Subd. 1d.  [FISCAL YEAR 1997 AFDC PUPIL UNITS.] AFDC pupil 
 11.20  units for fiscal year 1993 and thereafter 1997 must be computed 
 11.21  according to this subdivision.  
 11.22     (a) The AFDC concentration percentage for a district equals 
 11.23  the product of 100 times the ratio of:  
 11.24     (1) the number of pupils enrolled in the district from 
 11.25  families receiving aid to families with dependent children 
 11.26  according to subdivision 1e; to 
 11.27     (2) the number of pupils in average daily membership 
 11.28  according to subdivision 1e enrolled in the district. 
 11.29     (b) The AFDC pupil weighting factor for a district equals 
 11.30  the lesser of one or the quotient obtained by dividing the 
 11.31  district's AFDC concentration percentage by 11.5.  
 11.32     (c) The AFDC pupil units for a district for fiscal year 
 11.33  1993 and thereafter equals the product of:  
 11.34     (1) the number of pupils enrolled in the district from 
 11.35  families receiving aid to families with dependent children 
 11.36  according to subdivision 1e; times 
 12.1      (2) the AFDC pupil weighting factor for the district; times 
 12.2      (3) .67. 
 12.3      Sec. 10.  Minnesota Statutes 1994, section 124.17, 
 12.4   subdivision 1e, is amended to read: 
 12.5      Subd. 1e.  [FISCAL YEAR 1997 AFDC PUPIL COUNTS.] AFDC pupil 
 12.6   counts and average daily membership for subdivisions 1b and 1d 
 12.7   shall be determined according to this subdivision: 
 12.8      (a) For districts where the number of pupils from families 
 12.9   receiving aid to families with dependent children has increased 
 12.10  over the preceding year for each of the two previous years, the 
 12.11  number of pupils enrolled in the district from families 
 12.12  receiving aid to families with dependent children shall be those 
 12.13  counted on October 1 of the previous school year.  The average 
 12.14  daily membership used shall be from the previous school year. 
 12.15     (b) For districts that do not meet the requirement of 
 12.16  paragraph (a), the number of pupils enrolled in the district 
 12.17  from families receiving aid to families with dependent children 
 12.18  shall be the average number of pupils on October 1 of the second 
 12.19  previous school year and October 1 of the previous school year.  
 12.20  The average daily membership used shall be the average number 
 12.21  enrolled in the previous school year and the second previous 
 12.22  school year. 
 12.23     (c) Notwithstanding paragraphs (a) and (b), for charter 
 12.24  schools in the first three years of operation, the number of 
 12.25  pupils enrolled from families receiving aid to families with 
 12.26  dependent children shall be those counted on October 1 of the 
 12.27  current school year.  The average daily membership used shall be 
 12.28  from the current school year. 
 12.29     Sec. 11.  Minnesota Statutes 1994, section 124.17, is 
 12.30  amended by adding a subdivision to read: 
 12.31     Subd. 1g.  [AFDC PUPIL UNITS.] AFDC pupil units for fiscal 
 12.32  year 1998 and thereafter must be computed according to this 
 12.33  subdivision. 
 12.34     (a) The AFDC concentration percentage for a district equals 
 12.35  the product of 100 times the ratio of: 
 12.36     (1) the number of pupils residing in the district from 
 13.1   families receiving aid to families with dependent children 
 13.2   according to subdivision 1h, paragraph (a); 
 13.3      (2) the number of pupils in average daily membership 
 13.4   according to subdivision 1h, paragraph (a), residing in the 
 13.5   district. 
 13.6      (b) The AFDC pupil weighting factor for AFDC pupils 
 13.7   residing in a district equals the lesser of one or the quotient 
 13.8   obtained by dividing the district's AFDC concentration 
 13.9   percentage by 11.5. 
 13.10     (c) The AFDC pupil units for a district for fiscal year 
 13.11  1998 and thereafter for each pupil enrolled in the district from 
 13.12  a family receiving aid to families with dependent children 
 13.13  according to subdivision 1h, paragraph (b), equals the product 
 13.14  of: 
 13.15     (1) the AFDC pupil weighting factor for pupil's district of 
 13.16  residence; times 
 13.17     (2) .67. 
 13.18     Sec. 12.  Minnesota Statutes 1994, section 124.17, is 
 13.19  amended by adding a subdivision to read: 
 13.20     Subd. 1h.  [AFDC PUPIL COUNTS.] (a) AFDC pupil counts and 
 13.21  average daily membership for subdivision 1g, paragraph (a), 
 13.22  shall be determined according to this paragraph. 
 13.23     (1) For districts where the number of resident pupils from 
 13.24  families receiving aid to families with dependent children has 
 13.25  increased over the preceding year for each of the two previous 
 13.26  years, the number of pupils residing in the district from 
 13.27  families receiving aid to families with dependent children shall 
 13.28  be those counted on October 1 of the previous school year.  The 
 13.29  average daily membership used shall be from the previous school 
 13.30  year. 
 13.31     (2) For districts that do not meet the requirement of 
 13.32  paragraph (1), the number of pupils residing in the district 
 13.33  from families receiving aid to families with dependent children 
 13.34  shall be the average number of pupils on October 1 of the second 
 13.35  previous school year and October 1 of the previous school year.  
 13.36  The average daily membership used shall be the average number of 
 14.1   pupils residing in the district in the previous school year and 
 14.2   the second previous school year. 
 14.3      (b) AFDC pupil counts for subdivision 1g, paragraph (b), 
 14.4   shall be determined according to this paragraph. 
 14.5      (1) For districts where the number of pupils from families 
 14.6   receiving aid to families with dependent children enrolled in 
 14.7   the district has increased over the preceding year for each of 
 14.8   the two previous years, the pupils enrolled in the district from 
 14.9   families receiving aid to families with dependent children shall 
 14.10  be those counted on October 1 of the previous school year. 
 14.11     (2) For districts that do not meet the requirement of 
 14.12  paragraph (1), pupils enrolled in the district from families 
 14.13  receiving aid to families with dependent children shall be those 
 14.14  counted on October 1 of the previous school year times one-half, 
 14.15  plus those counted on October 1 of the second previous school 
 14.16  year times one-half. 
 14.17     (3) Notwithstanding clauses (1) and (2), for charter 
 14.18  schools in the first three years of operation, the number of 
 14.19  pupils enrolled from families receiving aid to families with 
 14.20  dependent children shall be those counted on October 1 of the 
 14.21  current school year. 
 14.22     Sec. 13.  Minnesota Statutes 1994, section 124.195, 
 14.23  subdivision 8, is amended to read: 
 14.24     Subd. 8.  [PAYMENT PERCENTAGE FOR REIMBURSEMENT AIDS.] One 
 14.25  hundred percent of the aid for the last fiscal year must be paid 
 14.26  for the following aids: special education special pupil aid 
 14.27  according to section 124.32, subdivision 6; special education 
 14.28  summer school aid, according to section 124.32, subdivision 
 14.29  10 for the previous fiscal year must be paid in the current year.
 14.30     Sec. 14.  Minnesota Statutes 1995 Supplement, section 
 14.31  124.195, subdivision 12, is amended to read: 
 14.32     Subd. 12.  [AID ADJUSTMENT FOR TRA CONTRIBUTION RATE 
 14.33  CHANGE.] (a) The department of children, families, and learning 
 14.34  shall reduce general education aid or any other aid paid in a 
 14.35  fiscal year directly to school districts, intermediate school 
 14.36  districts, education districts, education cooperative service 
 15.1   units, special education cooperatives, secondary vocational 
 15.2   cooperatives, regional management information centers, or 
 15.3   another.  Any district or cooperative unit providing elementary 
 15.4   or secondary education services that is prohibited from 
 15.5   receiving direct state aids by section 124.193 or 124.32, 
 15.6   subdivision 12, is exempt from this reduction.  The reduction 
 15.7   shall equal the following percent of salaries paid in a fiscal 
 15.8   year by the entity to members of the teachers retirement 
 15.9   association established in chapter 354.  However, salaries paid 
 15.10  to members of the association who are employed by a technical 
 15.11  college shall be excluded from this calculation: 
 15.12     (1) in fiscal year 1991, 0.84 percent, 
 15.13     (2) in fiscal year 1992 and later years, the greater of 
 15.14     (i) zero, or 
 15.15     (ii) 4.48 percent less the additional employer contribution 
 15.16  rate established under section 354.42, subdivision 5.  
 15.17     (b) In fiscal year 1991, this reduction is estimated to 
 15.18  equal $14,260,000. 
 15.19     Sec. 15.  Minnesota Statutes 1995 Supplement, section 
 15.20  124.248, subdivision 1, is amended to read: 
 15.21     Subdivision 1.  [GENERAL EDUCATION REVENUE.] General 
 15.22  education revenue shall be paid to a charter school as though it 
 15.23  were a school district.  The general education revenue for each 
 15.24  pupil unit is the state average general education revenue per 
 15.25  pupil unit minus $170, calculated without compensatory 
 15.26  revenue, transportation sparsity revenue, and the transportation 
 15.27  portion of the transition revenue adjustment, plus compensatory 
 15.28  revenue as though the school were a school district. 
 15.29     Sec. 16.  Minnesota Statutes 1995 Supplement, section 
 15.30  124.248, subdivision 4, is amended to read: 
 15.31     Subd. 4.  [OTHER AID, GRANTS, REVENUE.] (a) A charter 
 15.32  school is eligible to receive other aids, grants, and revenue 
 15.33  according to chapters 120 to 129, as though it were a school 
 15.34  district except that, notwithstanding section 124.195, 
 15.35  subdivision 3, the payments shall be of an equal amount on each 
 15.36  of the 23 payment dates unless a charter school is in its first 
 16.1   year of operation in which case it shall receive on its first 
 16.2   payment date 15 percent of its cumulative amount guaranteed for 
 16.3   the year and 22 payments of an equal amount thereafter the sum 
 16.4   of which shall be 85 percent of the cumulative amount 
 16.5   guaranteed.  However, it may not receive aid, a grant, or 
 16.6   revenue if a levy is required to obtain the money, except as 
 16.7   otherwise provided in this section.  Federal aid received by the 
 16.8   state must be paid to the school, if it qualifies for the aid as 
 16.9   though it were a school district. 
 16.10     (b) Any revenue received from any source, other than 
 16.11  revenue that is specifically allowed for operational, 
 16.12  maintenance, capital facilities revenue under paragraph (c), and 
 16.13  capital expenditure equipment costs under this section, may be 
 16.14  used only for the planning and operational start-up costs of a 
 16.15  charter school.  Any unexpended revenue from any source under 
 16.16  this paragraph must be returned to that revenue source or 
 16.17  conveyed to the sponsoring school district, at the discretion of 
 16.18  the revenue source. 
 16.19     (c) A charter school may receive money from any source for 
 16.20  operational or capital facilities needs.  Any unexpended capital 
 16.21  facilities revenue must be reserved and shall be expended only 
 16.22  for future capital facilities purposes. 
 16.23     Sec. 17.  Minnesota Statutes 1995 Supplement, section 
 16.24  124.918, subdivision 2, is amended to read: 
 16.25     Subd. 2.  [NOTICE TO COMMISSIONER; FORMS.] By September 
 16.26  30 October 7 of each year each district shall notify the 
 16.27  commissioner of children, families, and learning of the proposed 
 16.28  levies in compliance with the levy limitations of this chapter 
 16.29  and chapters 124A, 124B, and 136D.  By January 15 of each year 
 16.30  each district shall notify the commissioner of children, 
 16.31  families, and learning of the final levies certified.  The 
 16.32  commissioner of children, families, and learning shall prescribe 
 16.33  the form of these notifications and may request any additional 
 16.34  information necessary to compute certified levy amounts. 
 16.35     Sec. 18.  Minnesota Statutes 1995 Supplement, section 
 16.36  124A.03, subdivision 2, is amended to read: 
 17.1      Subd. 2.  [REFERENDUM REVENUE.] (a) The revenue authorized 
 17.2   by section 124A.22, subdivision 1, may be increased in the 
 17.3   amount approved by the voters of the district at a referendum 
 17.4   called for the purpose.  The referendum may be called by the 
 17.5   school board or shall be called by the school board upon written 
 17.6   petition of qualified voters of the district.  The referendum 
 17.7   shall be conducted one or two calendar years before the 
 17.8   increased levy authority, if approved, first becomes payable. 
 17.9   Only one election to approve an increase may be held in a 
 17.10  calendar year.  Unless the referendum is conducted by mail under 
 17.11  paragraph (g), the referendum must be held on the first Tuesday 
 17.12  after the first Monday in November.  The ballot shall state the 
 17.13  maximum amount of the increased revenue per actual pupil unit, 
 17.14  the estimated referendum tax rate as a percentage of market 
 17.15  value in the first year it is to be levied, and that the revenue 
 17.16  shall be used to finance school operations.  The ballot may 
 17.17  state a schedule, determined by the board, of increased revenue 
 17.18  per actual pupil units that differs from year to year over the 
 17.19  number of years for which the increased revenue is authorized.  
 17.20  If the ballot contains a schedule showing different amounts, it 
 17.21  shall also indicate the estimated referendum tax rate as a 
 17.22  percent of market value for the amount specified for the first 
 17.23  year and for the maximum amount specified in the schedule.  The 
 17.24  ballot may state that existing referendum levy authority is 
 17.25  expiring.  In this case, the ballot may also compare the 
 17.26  proposed levy authority to the existing expiring levy authority, 
 17.27  and express the proposed increase as the amount, if any, over 
 17.28  the expiring referendum levy authority.  The ballot shall 
 17.29  designate the specific number of years, not to exceed ten, for 
 17.30  which the referendum authorization shall apply.  The notice 
 17.31  required under section 275.60 may be modified to read, in cases 
 17.32  of renewing existing levies: 
 17.33     "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING 
 17.34     FOR A PROPERTY TAX INCREASE." 
 17.35     The ballot may contain a textual portion with the 
 17.36  information required in this subdivision and a question stating 
 18.1   substantially the following:  
 18.2      "Shall the increase in the revenue proposed by (petition 
 18.3   to) the board of ........., School District No. .., be approved?"
 18.4      If approved, an amount equal to the approved revenue per 
 18.5   actual pupil unit times the actual pupil units for the school 
 18.6   year beginning in the year after the levy is certified shall be 
 18.7   authorized for certification for the number of years approved, 
 18.8   if applicable, or until revoked or reduced by the voters of the 
 18.9   district at a subsequent referendum. 
 18.10     (b) The school board shall prepare and deliver by first 
 18.11  class mail at least 15 days but no more than 30 days prior to 
 18.12  the day of the referendum to each taxpayer a notice of the 
 18.13  referendum and the proposed revenue increase.  The school board 
 18.14  need not mail more than one notice to any taxpayer.  For the 
 18.15  purpose of giving mailed notice under this subdivision, owners 
 18.16  shall be those shown to be owners on the records of the county 
 18.17  auditor or, in any county where tax statements are mailed by the 
 18.18  county treasurer, on the records of the county treasurer.  Every 
 18.19  property owner whose name does not appear on the records of the 
 18.20  county auditor or the county treasurer shall be deemed to have 
 18.21  waived this mailed notice unless the owner has requested in 
 18.22  writing that the county auditor or county treasurer, as the case 
 18.23  may be, include the name on the records for this purpose.  The 
 18.24  notice must project the anticipated amount of tax increase in 
 18.25  annual dollars and annual percentage for typical residential 
 18.26  homesteads, agricultural homesteads, apartments, and 
 18.27  commercial-industrial property within the school district. 
 18.28     The notice for a referendum may state that an existing 
 18.29  referendum levy is expiring and project the anticipated amount 
 18.30  of increase over the existing referendum levy in the first year, 
 18.31  if any, in annual dollars and annual percentage for typical 
 18.32  residential homesteads, agricultural homesteads, apartments, and 
 18.33  commercial-industrial property within the school district. 
 18.34     The notice must include the following statement:  "Passage 
 18.35  of this referendum will result in an increase in your property 
 18.36  taxes."  However, in cases of renewing existing levies, the 
 19.1   notice may include the following statement:  "Passage of this 
 19.2   referendum may result in an increase in your property taxes." 
 19.3      (c) A referendum on the question of revoking or reducing 
 19.4   the increased revenue amount authorized pursuant to paragraph 
 19.5   (a) may be called by the school board and shall be called by the 
 19.6   school board upon the written petition of qualified voters of 
 19.7   the district.  A referendum to revoke or reduce the levy amount 
 19.8   must be based upon the dollar amount, local tax rate, or amount 
 19.9   per actual pupil unit, that was stated to be the basis for the 
 19.10  initial authorization.  Revenue approved by the voters of the 
 19.11  district pursuant to paragraph (a) must be received at least 
 19.12  once before it is subject to a referendum on its revocation or 
 19.13  reduction for subsequent years.  Only one revocation or 
 19.14  reduction referendum may be held to revoke or reduce referendum 
 19.15  revenue for any specific year and for years thereafter. 
 19.16     (d) A petition authorized by paragraph (a) or (c) shall be 
 19.17  effective if signed by a number of qualified voters in excess of 
 19.18  15 percent of the registered voters of the school district on 
 19.19  the day the petition is filed with the school board.  A 
 19.20  referendum invoked by petition shall be held on the date 
 19.21  specified in paragraph (a). 
 19.22     (e) The approval of 50 percent plus one of those voting on 
 19.23  the question is required to pass a referendum authorized by this 
 19.24  subdivision. 
 19.25     (f) At least 15 days prior to the day of the referendum, 
 19.26  the district shall submit a copy of the notice required under 
 19.27  paragraph (b) to the commissioner of children, families, and 
 19.28  learning.  Within 15 days after the results of the referendum 
 19.29  have been certified by the school board, or in the case of a 
 19.30  recount, the certification of the results of the recount by the 
 19.31  canvassing board, the district shall notify the commissioner of 
 19.32  children, families, and learning of the results of the 
 19.33  referendum. 
 19.34     (g) Except for a referendum held under subdivision 2b, any 
 19.35  referendum under this section held on a day other than the first 
 19.36  Tuesday after the first Monday in November must be conducted by 
 20.1   mail in accordance with section 204B.46.  Notwithstanding 
 20.2   paragraph (b) to the contrary, in the case of a referendum 
 20.3   conducted by mail under this paragraph, the notice required by 
 20.4   paragraph (b) shall be prepared and delivered by first class 
 20.5   mail at least 20 days before the referendum. 
 20.6      Sec. 19.  Minnesota Statutes 1994, section 124A.03, 
 20.7   subdivision 3b, is amended to read: 
 20.8      Subd. 3b.  [FISCAL YEAR 1997 REFERENDUM ALLOWANCE 
 20.9   REDUCTION.] For fiscal year 1997, a district's referendum 
 20.10  allowance under subdivision 1c is reduced by the amounts 
 20.11  calculated in paragraphs (a), (b), (c), and (d). 
 20.12     (a) The referendum allowance reduction equals the amount by 
 20.13  which a district's supplemental revenue reduction exceeds the 
 20.14  district's supplemental revenue allowance for fiscal year 1993. 
 20.15     (b) Notwithstanding paragraph (a), if a district's initial 
 20.16  referendum allowance is less than ten percent of the formula 
 20.17  allowance for that year, the reduction equals the lesser of (1) 
 20.18  an amount equal to $100, or (2) the amount calculated in 
 20.19  paragraph (a). 
 20.20     (c) Notwithstanding paragraph (a) or (b), a school 
 20.21  district's referendum allowance reduction equals (1) an amount 
 20.22  equal to $100, times (2) one minus the ratio of 20 percent of 
 20.23  the formula allowance minus the district's initial referendum 
 20.24  allowance limit to 20 percent of the formula allowance for that 
 20.25  year if: 
 20.26     (i) the district's adjusted net tax capacity for assessment 
 20.27  year 1992 per actual pupil unit for fiscal year 1995 is less 
 20.28  than $3,000; 
 20.29     (ii) the district's net unappropriated operating fund 
 20.30  balance as of June 30, 1993, divided by the actual pupil units 
 20.31  for fiscal year 1995 is less than $200; 
 20.32     (iii) the district's supplemental revenue allowance for 
 20.33  fiscal year 1993 is equal to zero; and 
 20.34     (iv) the district's initial referendum revenue authority 
 20.35  for the current year divided by the district's net tax capacity 
 20.36  for assessment year 1992 is greater than ten percent. 
 21.1      (d) Notwithstanding paragraph (a), (b), or (c), the 
 21.2   referendum revenue reduction for a newly reorganized district is 
 21.3   computed as follows: 
 21.4      (1) for a newly reorganized district created effective July 
 21.5   1, 1994, the referendum revenue reduction equals the lesser of 
 21.6   the amount calculated for the combined district under paragraph 
 21.7   (a), (b), or (c), or the sum of the amounts by which each of the 
 21.8   reorganizing district's supplemental revenue reduction exceeds 
 21.9   its respective supplemental revenue allowances calculated for 
 21.10  the districts as if they were still in existence for fiscal year 
 21.11  1995; or 
 21.12     (2) for a newly reorganized district created after July 1, 
 21.13  1994, the referendum revenue reduction equals the lesser of the 
 21.14  amount calculated for the combined district under paragraph (a), 
 21.15  (b), or (c), or the sum of the amounts by which each of the 
 21.16  reorganizing district's supplemental revenue reduction exceeds 
 21.17  its respective supplemental revenue allowances calculated for 
 21.18  the year preceding the year of reorganization. 
 21.19     Sec. 20.  Minnesota Statutes 1994, section 124A.03, is 
 21.20  amended by adding a subdivision to read: 
 21.21     Subd. 3c.  [REFERENDUM ALLOWANCE REDUCTION.] For fiscal 
 21.22  year 1998 and later, a district's referendum allowance for 
 21.23  referendum authority under subdivision 1c is reduced as provided 
 21.24  in this subdivision.  
 21.25     (a) For referendum revenue authority approved before June 
 21.26  1, 1996, and effective for fiscal year 1997, the reduction 
 21.27  equals the amount of the reduction computed for fiscal year 1997 
 21.28  under subdivision 3b.  
 21.29     (b) For referendum revenue authority approved before June 
 21.30  1, 1996, and effective beginning in fiscal year 1998, the 
 21.31  reduction equals the amount of the reduction computed for fiscal 
 21.32  year 1998 under subdivision 3b.  
 21.33     (c) For referendum revenue authority approved after June 1, 
 21.34  1996, there is no reduction.  
 21.35     (d) For districts with more than one referendum authority, 
 21.36  the reduction shall be computed separately for each authority.  
 22.1   The reduction shall be applied first to authorities levied 
 22.2   against tax capacity, and then to authorities levied against 
 22.3   referendum market value.  For districts with more than one 
 22.4   authority levied against net tax capacity or against referendum 
 22.5   market value, the referendum allowance reduction shall be 
 22.6   applied first to the authority with the earliest expiration date.
 22.7      (e) For a newly reorganized district created after July 1, 
 22.8   1996, the referendum revenue reduction equals the lesser of the 
 22.9   amount calculated for the combined district, or the sum of the 
 22.10  amounts by which each of the reorganizing district's 
 22.11  supplemental revenue reduction exceeds its respective 
 22.12  supplemental revenue allowances calculated for the year 
 22.13  preceding the year of reorganization. 
 22.14     Sec. 21.  Minnesota Statutes 1995 Supplement, section 
 22.15  124A.0311, subdivision 2, is amended to read: 
 22.16     Subd. 2.  [CONVERSION TO MARKET VALUE.] (a) Prior to June 
 22.17  1, 1997, by June 1 of each year, a school board may, by 
 22.18  resolution of a majority of its board, convert any remaining 
 22.19  portion of its referendum authority under section 124A.03, 
 22.20  subdivision 2, that is authorized to be levied against net tax 
 22.21  capacity to referendum authority that is authorized to be levied 
 22.22  against the referendum market value of all taxable property 
 22.23  located within the school district.  At the option of the school 
 22.24  board, any remaining portion of its referendum authority may be 
 22.25  converted in two or more parts at separate times.  The 
 22.26  referendum authority may be converted from net tax capacity to 
 22.27  referendum market value according to a schedule adopted by 
 22.28  resolution of the school board for years prior to taxes payable 
 22.29  in 2001, provided that, for taxes payable in 2001 and later, the 
 22.30  full amount of the referendum authority is levied against 
 22.31  referendum market value.  The board must notify the commissioner 
 22.32  of children, families, and learning of the amount of referendum 
 22.33  authority that has been converted from net tax capacity to 
 22.34  referendum market value, if any, by June 15, of each year.  The 
 22.35  maximum length of a referendum converted under this paragraph is 
 22.36  ten years. 
 23.1      (b) For referendum levy amounts converted between June 1, 
 23.2   1997, and June 1, 1998, all other conditions of this subdivision 
 23.3   apply except that the maximum length of the referendum is 
 23.4   limited to seven years. 
 23.5      (c) For referendum levy amounts converted between June 1, 
 23.6   1998, and June 1, 1999, all other conditions of this subdivision 
 23.7   apply except that the maximum length of the referendum is 
 23.8   limited to six years. 
 23.9      (d) For referendum levy amounts converted between June 1, 
 23.10  1999, and June 1, 2000, all other conditions of this subdivision 
 23.11  apply except that the maximum length of the referendum is 
 23.12  limited to five years. 
 23.13     Sec. 22.  Minnesota Statutes 1994, section 124A.0311, 
 23.14  subdivision 3, is amended to read: 
 23.15     Subd. 3.  [ALTERNATIVE CONVERSION.] A school district that 
 23.16  has a referendum that is levied against net tax capacity that 
 23.17  expires before taxes payable in 1998 may convert its referendum 
 23.18  authority according to this subdivision.  In the payable year 
 23.19  prior to the year of expiration, the school board may authorize 
 23.20  a referendum under section 124A.03.  Notwithstanding any other 
 23.21  law to the contrary, the district may propose, and if approved 
 23.22  by its electors, have its referendum authority reauthorized in 
 23.23  part on tax capacity and in part on referendum market value 
 23.24  according to a schedule adopted by resolution of the school 
 23.25  board for years prior to taxes payable in 2001, provided that, 
 23.26  for taxes payable in 2001 and later, the full amount of 
 23.27  referendum authority is levied against referendum market value.  
 23.28  If the full amount of the referendum is reauthorized 
 23.29  on referendum market value prior to taxes payable in 1998, the 
 23.30  referendum may extend for ten years.  If the referendum becomes 
 23.31  fully reauthorized on referendum market value for a later year, 
 23.32  the referendum shall not extend for more than the maximum number 
 23.33  of years allowed under subdivision 2. 
 23.34     Sec. 23.  Minnesota Statutes 1994, section 124A.035, 
 23.35  subdivision 4, is amended to read: 
 23.36     Subd. 4.  [COUNTY APPORTIONMENT DEDUCTION.] Each year the 
 24.1   amount of money apportioned to a school district for that year 
 24.2   pursuant to section 124.10, subdivision 2, excluding any 
 24.3   district where the general education levy is determined 
 24.4   according to section 124A.23, subdivision 3, shall be deducted 
 24.5   from the general education aid earned by that district for the 
 24.6   same year or from aid earned from other state sources.  
 24.7      Sec. 24.  Minnesota Statutes 1994, section 124A.036, is 
 24.8   amended by adding a subdivision to read: 
 24.9      Subd. 6.  [CHARTER SCHOOLS.] The general education aid for 
 24.10  districts must be adjusted for each pupil attending a charter 
 24.11  school under section 120.064.  The adjustments must be made 
 24.12  according to this subdivision. 
 24.13     (a) General education aid paid to a resident district must 
 24.14  be reduced by an amount equal to the sum of the general 
 24.15  education revenue exclusive of compensatory revenue. 
 24.16     (b) General education aid paid to a district in which a 
 24.17  charter school not providing transportation according to section 
 24.18  120.064, subdivision 15, is located shall be increased by an 
 24.19  amount equal to the product of:  (1) the sum of $170, plus the 
 24.20  transportation sparsity allowance for the district, plus the 
 24.21  transportation transition allowance for the district; times (2) 
 24.22  the pupil units attributable to the pupil.  
 24.23     (c) If the amount of the reduction to be made from the 
 24.24  general education aid of the resident district is greater than 
 24.25  the amount of general education aid otherwise due the district, 
 24.26  the excess reduction must be made from other state aids due the 
 24.27  district. 
 24.28     Sec. 25.  Minnesota Statutes 1995 Supplement, section 
 24.29  124A.22, subdivision 10, is amended to read: 
 24.30     Subd. 10.  [TOTAL OPERATING CAPITAL REVENUE.] (a) For 
 24.31  fiscal year 1997 and thereafter, total operating capital revenue 
 24.32  for a district equals the amount determined under paragraph (b), 
 24.33  (c), (d), (e), or (f), plus $68 times the actual pupil units for 
 24.34  the school year.  The revenue must be placed in a reserved 
 24.35  account in the general fund and may only be used according to 
 24.36  subdivision 11. 
 25.1      (b) For fiscal years 1996 and later, capital revenue for a 
 25.2   district equals $100 times the district's maintenance cost index 
 25.3   times its actual pupil units for the school year. 
 25.4      (c) For 1996 and later fiscal years, the previous formula 
 25.5   revenue for a district equals $128 times its actual pupil units 
 25.6   for fiscal year 1995. 
 25.7      (d) Notwithstanding paragraph (b), for fiscal year 1996, 
 25.8   the revenue for each district equals 25 percent of the amount 
 25.9   determined in paragraph (b) plus 75 percent of the previous 
 25.10  formula revenue. 
 25.11     (e) Notwithstanding paragraph (b), for fiscal year 1997, 
 25.12  the revenue for each district equals 50 percent of the amount 
 25.13  determined in paragraph (b) plus 50 percent of the previous 
 25.14  formula revenue. 
 25.15     (f) Notwithstanding paragraph (b), for fiscal year 1998, 
 25.16  the revenue for each district equals 75 percent of the amount 
 25.17  determined in paragraph (b) plus 25 percent of the previous 
 25.18  formula revenue. 
 25.19     (g) The revenue in paragraph (b) for a district that 
 25.20  operates a program under section 121.585, is increased by an 
 25.21  amount equal to $15 times the number of actual pupil units at 
 25.22  the site where the program is implemented. 
 25.23     Sec. 26.  Minnesota Statutes 1994, section 124A.22, is 
 25.24  amended by adding a subdivision to read: 
 25.25     Subd. 11a.  [USES OF REVENUE.] Except as otherwise 
 25.26  prohibited by law, a district may spend general fund money for 
 25.27  capital purposes. 
 25.28     Sec. 27.  Minnesota Statutes 1995 Supplement, section 
 25.29  124A.22, subdivision 13b, is amended to read: 
 25.30     Subd. 13b.  [TRANSITION ALLOWANCE.] (a) A district's 
 25.31  transportation transition allowance for fiscal year 1997 equals 
 25.32  the result of the following computation: 
 25.33     (1) if the result in subdivision 13a, paragraph (a), clause 
 25.34  (iii), for fiscal year 1997 is less than the fiscal year 1996 
 25.35  base allowance, the transportation transition allowance equals 
 25.36  the fiscal year 1996 base allowance minus the result in section 
 26.1   124A.22, subdivision 13a, paragraph (a), clause (iii). 
 26.2      (2) if the result in subdivision 13a, paragraph (b), for 
 26.3   fiscal year 1997 is greater than the fiscal year 1996 base 
 26.4   allowance and less than 110 percent of the fiscal year 1996 base 
 26.5   allowance, the transportation transition allowance equals zero. 
 26.6      (3) if the result in subdivision 13a, paragraph (b), for 
 26.7   fiscal year 1997 is greater than 110 percent of the fiscal year 
 26.8   1996 base allowance, the transportation transition allowance 
 26.9   equals 110 percent of the fiscal year 1996 base allowance minus 
 26.10  the result in subdivision 13a, paragraph (a), clause (iii). 
 26.11     (b) A district's transportation transition allowance for 
 26.12  fiscal year 1998 equals the result of the following: 
 26.13     (1) if the result in subdivision 13a, paragraph (a), clause 
 26.14  (iii), for fiscal year 1998 is less than the fiscal year 1996 
 26.15  base allowance, the transportation transition allowance equals 
 26.16  the fiscal year 1996 base allowance minus the result in 
 26.17  subdivision 13a, paragraph (a), clause (iii); or 
 26.18     (2) if the result in subdivision 13a, paragraph (a), clause 
 26.19  (iii), for fiscal year 1998 is greater than or equal to the 
 26.20  fiscal year 1996 base allowance, the transportation transition 
 26.21  allowance equals zero. 
 26.22     (c) For fiscal years 1997 and 1998, a district's training 
 26.23  and experience transition allowance is equal to the training and 
 26.24  experience revenue the district would have received under 
 26.25  Minnesota Statutes 1994, section 124A.22, subdivision 4, divided 
 26.26  by the actual pupil units for fiscal year 1997 minus $130.  For 
 26.27  fiscal year 1999 and later, a district's training and experience 
 26.28  transition allowance equals zero.  
 26.29     If the training and experience transition allowance is less 
 26.30  than zero, the reduction shall be determined according to the 
 26.31  following schedule: 
 26.32     (i) for fiscal year 1997, the reduction is equal to .9 
 26.33  times the amount initially determined; 
 26.34     (ii) for fiscal year 1998, the reduction is equal to .75 
 26.35  times the amount initially determined; 
 26.36     (iii) for fiscal year 1999, the reduction is equal to .50 
 27.1   times the amount initially determined; 
 27.2      (iv) for fiscal year 2000, the reduction is equal to .25 
 27.3   times the amount initially determined; and 
 27.4      (v) for fiscal year 2001 and thereafter, the transition 
 27.5   allowance shall not be less than zero.  
 27.6      (c) (d) A district's transition allowance for fiscal year 
 27.7   1997 and thereafter is equal to the sum of its transportation 
 27.8   transition allowance and its training and experience transition 
 27.9   allowance. 
 27.10     Sec. 28.  Minnesota Statutes 1995 Supplement, section 
 27.11  124A.23, subdivision 4, is amended to read: 
 27.12     Subd. 4.  [GENERAL EDUCATION AID.] A district's general 
 27.13  education aid is the sum of the following amounts:  
 27.14     (1) the product of (i) the difference between the general 
 27.15  education revenue, excluding transition revenue and supplemental 
 27.16  revenue, and the general education levy, times (ii) the ratio of 
 27.17  the actual amount levied to the permitted levy; 
 27.18     (2) transition aid according to section 124A.22, 
 27.19  subdivision 13e; 
 27.20     (3) supplemental aid according to section 124.214, 
 27.21  subdivision 2; 
 27.22     (4) shared time aid according to section 124A.02, 
 27.23  subdivision 21; and 
 27.24     (5) referendum aid according to section 124A.03. 
 27.25     Sec. 29.  Minnesota Statutes 1994, section 124A.28, 
 27.26  subdivision 1, is amended to read: 
 27.27     Subdivision 1.  [USE OF THE REVENUE.] The compensatory 
 27.28  education revenue under section 124A.22, subdivision 3, may be 
 27.29  used to provide eligible services to eligible pupils according 
 27.30  to section 124.311, subdivisions 3 and 4.  It also may must be 
 27.31  used to meet the educational needs of pupils whose educational 
 27.32  achievement is below the level that is appropriate for pupils of 
 27.33  their age.  These needs may be met by providing at least some of 
 27.34  the following: 
 27.35     (1) direct instructional services under the assurance of 
 27.36  mastery program according to section 124.311; 
 28.1      (2) remedial instruction in reading, language arts, and 
 28.2   mathematics to improve the achievement level of these pupils; 
 28.3      (2) (3) additional teachers and teacher aides to provide 
 28.4   more individualized instruction to these pupils; 
 28.5      (3) (4) summer programs that enable these pupils to improve 
 28.6   their achievement or that reemphasize material taught during the 
 28.7   regular school year; 
 28.8      (4) (5) in-service education for teachers, teacher aides, 
 28.9   principals, and other personnel to improve their ability to 
 28.10  recognize these pupils and provide appropriate responses to the 
 28.11  pupils' needs; 
 28.12     (5) (6) for instructional material for these pupils 
 28.13  including:  textbooks, workbooks, periodicals, pamphlets, 
 28.14  photographs, reproductions, filmstrips, prepared slides, 
 28.15  prerecorded video programs, sound recordings, desk charts, 
 28.16  games, study prints and pictures, desk maps, models, learning 
 28.17  kits, blocks and cubes, flashcards, instructional computer 
 28.18  software programs, pencils, pens, crayons, notebooks, 
 28.19  duplicating fluids, and papers; 
 28.20     (6) (7) programs to reduce truancy, encourage completion of 
 28.21  high school, enhance self-concept, provide health services, 
 28.22  provide nutrition services, provide a safe and secure learning 
 28.23  environment, provide coordination for pupils receiving services 
 28.24  from other governmental agencies, provide psychological services 
 28.25  to determine the level of social, emotional, cognitive, and 
 28.26  intellectual development, and provide counseling services, 
 28.27  guidance services, and social work services; and 
 28.28     (7) (8) bilingual programs, bicultural programs, and 
 28.29  programs for pupils of limited English proficiency; 
 28.30     (9) all day kindergarten; 
 28.31     (10) extended school day and extended school year programs; 
 28.32  and 
 28.33     (11) other methods to increase achievement, as needed.  
 28.34     Sec. 30.  Minnesota Statutes 1994, section 124A.28, is 
 28.35  amended by adding a subdivision to read: 
 28.36     Subd. 4.  [ANNUAL STUDENT ASSESSMENT.] Each year, a school 
 29.1   district that receives compensatory revenue shall submit a 
 29.2   report to the department showing the change in student 
 29.3   achievement for students who have received services under 
 29.4   subdivision 1. 
 29.5      Sec. 31.  Minnesota Statutes 1994, section 276.11, is 
 29.6   amended by adding a subdivision to read: 
 29.7      Subd. 4.  [DEDUCTION FOR SCHOOL DISTRICT REVENUE 
 29.8   RECOGNITION.] (a) The county treasurer shall reduce the payments 
 29.9   in section 276.11, subdivision 1, and section 276.111, by the 
 29.10  amounts certified by the commissioner of children, families, and 
 29.11  learning according to section 124.155, subdivision 1.  The 
 29.12  county treasurer shall pay the amount deducted to the state 
 29.13  treasurer for deposit in the state general fund. 
 29.14     (b) The amounts deducted and paid under paragraph (a) are 
 29.15  appropriated to the department of children, families, and 
 29.16  learning pursuant to section 124A.032. 
 29.17     Sec. 32.  Laws 1993, chapter 224, article 1, section 34, 
 29.18  subdivision 2, is amended to read: 
 29.19     Subd. 2.  [AID ADJUSTMENT.] For fiscal year 1994 1996 only, 
 29.20  the department of education children, families, and learning 
 29.21  shall include in the general education aid calculation for 
 29.22  independent school district No. 504, Slayton, or its successor 
 29.23  district, and independent school district No. 918, Chandler-Lake 
 29.24  Wilson, or its successor district, the sum of the amounts by 
 29.25  which the district's general education aid was reduced for 
 29.26  fiscal years 1992 and 1993 year 1994 under Minnesota Statutes, 
 29.27  section 124A.26. 
 29.28     Sec. 33.  Laws 1993, chapter 224, article 1, section 34, 
 29.29  subdivision 3, is amended to read: 
 29.30     Subd. 3.  [LEVY ADJUSTMENT.] For 1993 1996 taxes payable in 
 29.31  1994 1997 only, independent school district No. 504, Slayton, or 
 29.32  its successor district, and independent school district No. 918, 
 29.33  Chandler-Lake Wilson, or its successor district, may levy an 
 29.34  amount not to exceed the sum of the levy reductions for 
 29.35  fiscal years 1992 and 1993 year 1994 resulting from the general 
 29.36  education revenue fund balance reduction under Minnesota 
 30.1   Statutes, section 124A.26. 
 30.2      Sec. 34.  Laws 1995, First Special Session chapter 3, 
 30.3   article 1, section 61, is amended to read: 
 30.4      Sec. 61.  [FORMULA ALLOWANCE.] 
 30.5      Notwithstanding the amount of the formula allowance for 
 30.6   fiscal year 1997, in Minnesota Statutes, section 124A.22, 
 30.7   subdivision 2, the commissioner shall use the amount of the 
 30.8   formula allowance minus $300 for fiscal year 1997 in determining 
 30.9   the payments under Minnesota Statutes, sections 123.3514, 
 30.10  subdivisions 6 and 8 6b; 124A.02, subdivision 21; 126.22; and 
 30.11  126.23. 
 30.12     Sec. 35.  Laws 1995, First Special Session chapter 3, 
 30.13  article 14, section 5, is amended to read: 
 30.14     Sec. 5.  [FISCAL YEAR 1998 AND 1999 APPROPRIATIONS.] 
 30.15     The appropriations for the 1998-99 biennium for programs 
 30.16  contained in this act shall be $2,943,900,000 $2,967,718,000 for 
 30.17  fiscal year 1998 and $3,076,600,000 $3,020,991,000 for fiscal 
 30.18  year 1999, plus or minus any adjustments due to variance in 
 30.19  pupil forecasts, levies, or other factors generating 
 30.20  entitlements for the general revenue program.  These amounts 
 30.21  shall first be allocated to fully fund the general revenue 
 30.22  program.  Amounts remaining shall be allocated to other programs 
 30.23  in proportion to the fiscal year 1997 appropriations or to 
 30.24  entitlements generated by existing law for those programs for 
 30.25  each year, up to the amount of the entitlement or the fiscal 
 30.26  year 1997 appropriations.  Any amounts remaining after 
 30.27  allocation to these other programs shall be maintained for 
 30.28  allocation recommendations by the governor and legislature in 
 30.29  the 1997 session. 
 30.30     Sec. 36.  [LEARNING YEAR PUPIL UNITS.] 
 30.31     When a pupil is enrolled in a learning year program 
 30.32  according to Minnesota Statutes, section 121.585, an area 
 30.33  learning center according to Minnesota Statutes, sections 
 30.34  124C.45 and 124C.46, or an alternative program approved by the 
 30.35  commissioner, for more than 1,020 hours in a school year, that 
 30.36  pupil may be counted as more than one pupil in average daily 
 31.1   membership.  The amount in excess of one pupil must be 
 31.2   determined by the ratio of hours of instruction provided to that 
 31.3   pupil in excess of 1,020 to 1,020.  Hours that occur after the 
 31.4   close of the instructional year in June shall be attributable to 
 31.5   the following year. 
 31.6      Sec. 37.  [LEVY AUTHORITY.] 
 31.7      Subdivision 1.  [DELAVAN.] For property taxes payable in 
 31.8   1997 only, independent school district No. 218, Delavan, or its 
 31.9   successor district, may levy up to $97,000 on the property in 
 31.10  independent school district No. 218.  This levy may be made only 
 31.11  if the independent school district No. 218 has voted to 
 31.12  consolidate with independent school district No. 2148, Blue 
 31.13  Earth.  Revenue received according to this subdivision must be 
 31.14  used for capital or maintenance purposes for facilities in 
 31.15  independent school district No. 218. 
 31.16     Subd. 2.  [ELMORE.] For property taxes payable in 1997 
 31.17  only, independent school district No. 219, Elmore, or its 
 31.18  successor district, may levy up to $116,000 on the property in 
 31.19  independent school district No. 219.  This levy may be made only 
 31.20  if independent school district No. 219 has voted to consolidate 
 31.21  with independent school district No. 2148, Blue Earth.  Revenue 
 31.22  received according to this subdivision must be used for capital 
 31.23  or maintenance purposes for facilities in independent school 
 31.24  district No. 219. 
 31.25     Sec. 38.  [LEVY EQUITY REDUCTION.] 
 31.26     For fiscal year 1997 only for a school district whose total 
 31.27  operating expenditures per pupil unit are in the lowest 20th 
 31.28  percentile of all school districts and where the average 
 31.29  personal income per capita of the district, as determined by the 
 31.30  recent census, is in the lowest 25th percentile of Minnesota 
 31.31  school districts, and where not more than ten percent of the 
 31.32  district's estimated market value is class 3a commercial or 
 31.33  industrial property under Minnesota Statutes, section 273.13, 
 31.34  subdivision 24, and is subject to Minnesota Statutes, section 
 31.35  124A.24, aid under section 124A.036 must not be reduced. 
 31.36     Sec. 39.  [TRANSPORTATION AND CAPITAL EXPENDITURE FUNDS; 
 32.1   DISSOLUTION.] 
 32.2      Effective July 1, 1996, the transportation fund and the 
 32.3   capital expenditure fund of each school district or other unit 
 32.4   reporting under Minnesota Statutes, section 121.908, is 
 32.5   dissolved.  The June 30, 1996, balances of the unreserved 
 32.6   transportation fund and reserved for bus purchase account shall 
 32.7   be transferred to the general fund unreserved balance.  The June 
 32.8   30, 1996, balance of the capital expenditure facilities account 
 32.9   and capital expenditure equipment account shall be transferred 
 32.10  to the general fund reserved for operating capital account.  The 
 32.11  June 30, 1996, balance of the reserved for health and safety 
 32.12  account shall be transferred to the general fund reserved for 
 32.13  health and safety account.  The June 30, 1996, balance of the 
 32.14  reserved for disabled accessibility account shall be transferred 
 32.15  to the general fund reserved for disabled accessibility account. 
 32.16  Effective July 1, 1996, all revenues and expenditures formerly 
 32.17  accounted for in the capital expenditure fund and the 
 32.18  transportation fund shall be accounted for in the general fund. 
 32.19     Sec. 40.  [REPEALER.] 
 32.20     Minnesota Statutes 1995 Supplement, section 124.155, 
 32.21  subdivision 2; and Laws 1993, chapter 224, article 1, section 
 32.22  34, subdivision 1, are repealed.  Section 33 is repealed July 1, 
 32.23  1999. 
 32.24     Sec. 41.  [EFFECTIVE DATE.] 
 32.25     Sections 1 and 2 are effective for fiscal year 1996 and 
 32.26  thereafter.  Sections 20, 32, and 33 are effective the day 
 32.27  following final enactment. 
 32.28                             ARTICLE 2 
 32.29                           TRANSPORTATION 
 32.30     Section 1.  Minnesota Statutes 1995 Supplement, section 
 32.31  120.17, subdivision 6, is amended to read: 
 32.32     Subd. 6.  [PLACEMENT IN ANOTHER DISTRICT; RESPONSIBILITY.] 
 32.33  The responsibility for special instruction and services for a 
 32.34  child with a disability temporarily placed in another district 
 32.35  for care and treatment shall be determined in the following 
 32.36  manner: 
 33.1      (a) The school district of residence of a child shall be 
 33.2   the district in which the child's parent resides, if living, or 
 33.3   the child's guardian, or the district designated by the 
 33.4   commissioner of children, families, and learning if neither 
 33.5   parent nor guardian is living within the state. 
 33.6      (b) When a child is temporarily placed for care and 
 33.7   treatment in a day program located in another district and the 
 33.8   child continues to live within the district of residence during 
 33.9   the care and treatment, the district of residence is responsible 
 33.10  for providing transportation and an appropriate educational 
 33.11  program for the child.  The district may provide the educational 
 33.12  program at a school within the district of residence, at the 
 33.13  child's residence, or in the district in which the day treatment 
 33.14  center is located by paying tuition to that district. 
 33.15     (c) When a child is temporarily placed in a residential 
 33.16  program for care and treatment, the nonresident district in 
 33.17  which the child is placed is responsible for providing an 
 33.18  appropriate educational program for the child and necessary 
 33.19  transportation within the district while the child is attending 
 33.20  the educational program; and shall bill the district of the 
 33.21  child's residence for the actual cost of providing the program, 
 33.22  as outlined in subdivision 4, except that the board, lodging, 
 33.23  and treatment costs incurred in behalf of a child with a 
 33.24  disability placed outside of the school district of residence by 
 33.25  the commissioner of human services or the commissioner of 
 33.26  corrections or their agents, for reasons other than for making 
 33.27  provision for the child's special educational needs shall not 
 33.28  become the responsibility of either the district providing the 
 33.29  instruction or the district of the child's residence. 
 33.30     (d) The district of residence shall pay tuition and other 
 33.31  program costs, not including transportation costs, to the 
 33.32  district providing the instruction and services.  The district 
 33.33  of residence may claim general education aid for the child as 
 33.34  provided by law.  Transportation costs shall be paid by the 
 33.35  district responsible for providing the transportation and the 
 33.36  state shall pay transportation aid to that district. 
 34.1      Sec. 2.  Minnesota Statutes 1994, section 120.17, 
 34.2   subdivision 9, is amended to read: 
 34.3      Subd. 9.  [SPECIAL INSTRUCTION.] No resident of a district 
 34.4   who is eligible for special instruction and services pursuant to 
 34.5   this section shall be denied provision of this instruction and 
 34.6   service on a shared time basis because of attendance at a 
 34.7   nonpublic school defined in section 123.932, subdivision 3.  If 
 34.8   a resident pupil with a disability attends a nonpublic school 
 34.9   located within the district of residence, the district shall 
 34.10  provide necessary transportation for that pupil within the 
 34.11  district between the nonpublic school and the educational 
 34.12  facility where special instruction and services are provided on 
 34.13  a shared time basis.  If a resident pupil with a disability 
 34.14  attends a nonpublic school located in a another district 
 34.15  contiguous to the district of residence and if no agreement 
 34.16  exists pursuant to section 124A.034, subdivision 1 or 1a, for 
 34.17  the provision of special instruction and services on a shared 
 34.18  time basis to that pupil by the district of attendance and where 
 34.19  the special instruction and services are provided within the 
 34.20  district of residence, the district of residence shall provide 
 34.21  necessary transportation for that pupil between the boundary of 
 34.22  the district of residence and the educational facility where the 
 34.23  special instruction and services are provided within the 
 34.24  district of residence.  The district of residence may provide 
 34.25  necessary transportation for that pupil between its boundary and 
 34.26  the nonpublic school attended, but the nonpublic school shall 
 34.27  pay the cost of transportation provided outside the district 
 34.28  boundary. 
 34.29     Sec. 3.  Minnesota Statutes 1995 Supplement, section 
 34.30  120.181, is amended to read: 
 34.31     120.181 [PLACEMENT OF NONHANDICAPPED CHILDREN WITHOUT 
 34.32  DISABILITIES; EDUCATION AND TRANSPORTATION.] 
 34.33     The responsibility for providing instruction and 
 34.34  transportation for a pupil without a disability who has a 
 34.35  short-term or temporary physical or emotional illness or 
 34.36  disability, as determined by the standards of the state board, 
 35.1   and who is temporarily placed for care and treatment for that 
 35.2   illness or disability, shall be determined as provided in this 
 35.3   section.  
 35.4      (a) The school district of residence of the pupil shall be 
 35.5   the district in which the pupil's parent or guardian resides or 
 35.6   the district designated by the commissioner of children, 
 35.7   families, and learning if neither parent nor guardian is living 
 35.8   within the state.  
 35.9      (b) Prior to the placement of a pupil for care and 
 35.10  treatment, the district of residence shall be notified and 
 35.11  provided an opportunity to participate in the placement 
 35.12  decision.  When an immediate emergency placement is necessary 
 35.13  and time does not permit resident district participation in the 
 35.14  placement decision, the district in which the pupil is 
 35.15  temporarily placed, if different from the district of residence, 
 35.16  shall notify the district of residence of the emergency 
 35.17  placement within 15 days of the placement.  
 35.18     (c) When a pupil without a disability is temporarily placed 
 35.19  for care and treatment in a day program and the pupil continues 
 35.20  to live within the district of residence during the care and 
 35.21  treatment, the district of residence shall provide instruction 
 35.22  and necessary transportation for the pupil.  The district may 
 35.23  provide the instruction at a school within the district of 
 35.24  residence, at the pupil's residence, or in the case of a 
 35.25  placement outside of the resident district, in the district in 
 35.26  which the day treatment program is located by paying tuition to 
 35.27  that district.  The district of placement may contract with a 
 35.28  facility to provide instruction by teachers licensed by the 
 35.29  state board of teaching.  
 35.30     (d) When a pupil without a disability is temporarily placed 
 35.31  in a residential program for care and treatment, the district in 
 35.32  which the pupil is placed shall provide instruction for the 
 35.33  pupil and necessary transportation within that district while 
 35.34  the pupil is receiving instruction, and in the case of a 
 35.35  placement outside of the district of residence, the nonresident 
 35.36  district shall bill the district of residence for the actual 
 36.1   cost of providing the instruction for the regular school year 
 36.2   and for summer school, excluding transportation costs.  When a 
 36.3   pupil without a disability is temporarily placed in a 
 36.4   residential program outside the district of residence, the 
 36.5   administrator of the court placing the pupil shall send timely 
 36.6   written notice of the placement to the district of residence.  
 36.7   The district of placement may contract with a residential 
 36.8   facility to provide instruction by teachers licensed by the 
 36.9   state board of teaching. 
 36.10     (e) The district of residence shall include the pupil in 
 36.11  its residence count of pupil units and pay tuition as provided 
 36.12  in section 124.18 to the district providing the instruction.  
 36.13  Transportation costs shall be paid by the district providing the 
 36.14  transportation and the state shall pay transportation aid to 
 36.15  that district.  For purposes of computing state transportation 
 36.16  aid, pupils governed by this subdivision shall be included in 
 36.17  the handicapped disabled transportation category.  
 36.18     Sec. 4.  Minnesota Statutes 1994, section 120.73, 
 36.19  subdivision 1, is amended to read: 
 36.20     Subdivision 1.  A school board is authorized to require 
 36.21  payment of fees in the following areas: 
 36.22     (a) in any program where the resultant product, in excess 
 36.23  of minimum requirements and at the pupil's option, becomes the 
 36.24  personal property of the pupil; 
 36.25     (b) admission fees or charges for extra curricular 
 36.26  activities, where attendance is optional; 
 36.27     (c) a security deposit for the return of materials, 
 36.28  supplies, or equipment; 
 36.29     (d) personal physical education and athletic equipment and 
 36.30  apparel, although any pupil may personally provide it if it 
 36.31  meets reasonable requirements and standards relating to health 
 36.32  and safety established by the school board; 
 36.33     (e) items of personal use or products which a student has 
 36.34  an option to purchase such as student publications, class rings, 
 36.35  annuals, and graduation announcements; 
 36.36     (f) fees specifically permitted by any other statute, 
 37.1   including but not limited to section 171.04, subdivision 1, 
 37.2   clause (1); 
 37.3      (g) field trips considered supplementary to a district 
 37.4   educational program; 
 37.5      (h) any authorized voluntary student health and accident 
 37.6   benefit plan; 
 37.7      (i) for the use of musical instruments owned or rented by 
 37.8   the district, a reasonable rental fee not to exceed either the 
 37.9   rental cost to the district or the annual depreciation plus the 
 37.10  actual annual maintenance cost for each instrument; 
 37.11     (j) transportation of pupils to and from extra curricular 
 37.12  activities conducted at locations other than school, where 
 37.13  attendance is optional; 
 37.14     (k) transportation of pupils to and from school for which 
 37.15  aid for fiscal year 1996 is not authorized under Minnesota 
 37.16  Statutes, section 124.223, subdivision 1, and for which levy for 
 37.17  fiscal year 1996 is not authorized under Minnesota Statutes, 
 37.18  section 124.226, subdivision 5, if a district charging fees for 
 37.19  transportation of pupils establishes guidelines for that 
 37.20  transportation to ensure that no pupil is denied transportation 
 37.21  solely because of inability to pay; 
 37.22     (l) motorcycle classroom education courses conducted 
 37.23  outside of regular school hours; provided the charge shall not 
 37.24  exceed the actual cost of these courses to the school district; 
 37.25     (m) transportation to and from post-secondary institutions 
 37.26  for pupils enrolled under the post-secondary enrollment options 
 37.27  program under section 123.39, subdivision 16.  Fees collected 
 37.28  for this service must be reasonable and shall be used to reduce 
 37.29  the cost of operating the route.  Families who qualify for 
 37.30  mileage reimbursement under section 123.3514, subdivision 8, may 
 37.31  use their state mileage reimbursement to pay this fee.  If no 
 37.32  fee is charged, districts shall allocate costs based on the 
 37.33  number of pupils riding the route. 
 37.34     Sec. 5.  Minnesota Statutes 1995 Supplement, section 
 37.35  120.74, subdivision 1, is amended to read: 
 37.36     Subdivision 1.  (a) A school board is not authorized to 
 38.1   charge fees in the following areas: 
 38.2      (1) textbooks, workbooks, art materials, laboratory 
 38.3   supplies, towels; 
 38.4      (2) supplies necessary for participation in any 
 38.5   instructional course except as authorized in sections 120.73 and 
 38.6   120.75; 
 38.7      (3) field trips which are required as a part of a basic 
 38.8   education program or course; 
 38.9      (4) graduation caps, gowns, any specific form of dress 
 38.10  necessary for any educational program, and diplomas; 
 38.11     (5) instructional costs for necessary school personnel 
 38.12  employed in any course or educational program required for 
 38.13  graduation; 
 38.14     (6) library books required to be utilized for any 
 38.15  educational course or program; 
 38.16     (7) admission fees, dues, or fees for any activity the 
 38.17  pupil is required to attend; 
 38.18     (8) any admission or examination cost for any required 
 38.19  educational course or program; 
 38.20     (9) locker rentals; 
 38.21     (10) transportation of pupils (i) for which state 
 38.22  transportation aid for fiscal year 1996 is authorized pursuant 
 38.23  to Minnesota Statutes, section 124.223 or (ii) for which a 
 38.24  levy for fiscal year 1996 is authorized under Minnesota 
 38.25  Statutes, section 124.226, subdivision 5. 
 38.26     (b) Notwithstanding paragraph (a), clauses (1) and (6), a 
 38.27  school board may charge fees for textbooks, workbooks, and 
 38.28  library books, lost or destroyed by students.  The board must 
 38.29  annually notify parents or guardians and students about its 
 38.30  policy to charge a fee under this paragraph. 
 38.31     Sec. 6.  Minnesota Statutes 1994, section 123.39, 
 38.32  subdivision 8b, is amended to read: 
 38.33     Subd. 8b.  School districts may use school district owned 
 38.34  or contractor operated school buses to provide transportation 
 38.35  along regular school bus routes on a space available basis for 
 38.36  senior citizens who are 62 years of age or older any person, 
 39.1   provided that this use of a bus does not interfere with the 
 39.2   transportation of pupils to and from school or other authorized 
 39.3   transportation of pupils.  In all cases, the total additional 
 39.4   cost of providing these services, as determined by sound 
 39.5   accounting procedures, shall be paid by charges made against 
 39.6   those using these services or some third-party payor.  In no 
 39.7   case shall the additional cost of this transportation be paid by 
 39.8   the school district. 
 39.9      The provisions of section 65B.47, subdivision 4, shall be 
 39.10  applicable to senior citizens any person being transported 
 39.11  pursuant to this subdivision. 
 39.12     Sec. 7.  Minnesota Statutes 1995 Supplement, section 
 39.13  123.7991, subdivision 2, is amended to read: 
 39.14     Subd. 2.  [STUDENT TRAINING.] (a) Each school district 
 39.15  shall provide public school pupils enrolled in grades 
 39.16  kindergarten through 10 with age-appropriate school bus safety 
 39.17  training.  The training shall be results-oriented and shall 
 39.18  consist of both classroom instruction and practical training 
 39.19  using a school bus.  Upon completing the training, a student 
 39.20  shall be able to demonstrate knowledge and understanding of at 
 39.21  least the following competencies and concepts: 
 39.22     (1) transportation by school bus is a privilege and not a 
 39.23  right; 
 39.24     (2) district policies for student conduct and school bus 
 39.25  safety; 
 39.26     (3) appropriate conduct while on the school bus; 
 39.27     (4) the danger zones surrounding a school bus; 
 39.28     (5) procedures for safely boarding and leaving a school 
 39.29  bus; 
 39.30     (6) procedures for safe street or road crossing; and 
 39.31     (7) school bus evacuation and other emergency procedures. 
 39.32     (b) Each nonpublic school located within the district shall 
 39.33  provide all nonpublic school pupils enrolled in grades 
 39.34  kindergarten through 10 who are transported by school bus at 
 39.35  public expense and attend school within the district's 
 39.36  boundaries with training as required in paragraph (a).  The 
 40.1   school district shall make a bus available for the practical 
 40.2   training if the district transports the nonpublic students.  
 40.3   Each nonpublic school shall provide the instruction. 
 40.4      (c) Student school bus safety training shall commence 
 40.5   during school bus safety week.  All students enrolled in grades 
 40.6   kindergarten through 3 who are transported by school bus and are 
 40.7   enrolled during the first or second week of school must 
 40.8   demonstrate achievement of the school bus safety training 
 40.9   competencies by the end of the third week of school.  All 
 40.10  students enrolled in grades 4 through 10 who are transported by 
 40.11  school bus and are enrolled during the first or second week of 
 40.12  school must demonstrate achievement of the competencies by the 
 40.13  end of the sixth week of school.  Students enrolled in grades 
 40.14  kindergarten through 10 who enroll in a school after the second 
 40.15  week of school and are transported by school bus shall undergo 
 40.16  school bus safety training and demonstrate achievement of the 
 40.17  school bus safety competencies within four weeks of the first 
 40.18  day of attendance.  The pupil transportation safety director in 
 40.19  each district must certify to the commissioner of children, 
 40.20  families, and learning annually that all students transported by 
 40.21  school bus within the district have satisfactorily demonstrated 
 40.22  knowledge and understanding of the school bus safety 
 40.23  competencies according to this section or provide an explanation 
 40.24  for a student's failure to demonstrate the competencies.  The 
 40.25  principal or other chief administrator of each nonpublic school 
 40.26  must certify annually to the public transportation safety 
 40.27  director of the district in which the school is located that all 
 40.28  of the school's students transported by school bus at public 
 40.29  expense have received training.  A school district may deny 
 40.30  transportation to a student who fails to demonstrate the 
 40.31  competencies, unless the student is unable to achieve the 
 40.32  competencies due to a disability, or to a student who attends a 
 40.33  nonpublic school that fails to provide training as required by 
 40.34  this subdivision. 
 40.35     (d) A school district and a nonpublic school with students 
 40.36  transported by school bus at public expense must, to the extent 
 41.1   possible, provide kindergarten pupils with bus safety training 
 41.2   before the first day of school. 
 41.3      (e) A school district and a nonpublic school with students 
 41.4   transported by school bus at public expense must also provide 
 41.5   student safety education for bicycling and pedestrian safety, 
 41.6   for students enrolled in grades kindergarten through 5. 
 41.7      (f) A school district and a nonpublic school with students 
 41.8   transported by school bus at public expense must make reasonable 
 41.9   accommodations for the school bus, bicycle, and pedestrian 
 41.10  safety training of pupils known to speak English as a second 
 41.11  language and pupils with disabilities. 
 41.12     Sec. 8.  Minnesota Statutes 1995 Supplement, section 
 41.13  124.223, subdivision 4, is amended to read: 
 41.14     Subd. 4.  [PUPILS WITH DISABILITIES.] School districts 
 41.15  may shall provide transportation or board and lodging of a pupil 
 41.16  with a disability when that pupil cannot be transported on a 
 41.17  regular school bus, the conveying of pupils with a disability 
 41.18  between home or a respite care facility and school and within 
 41.19  the school plant, necessary transportation of pupils with a 
 41.20  disability from home or from school to other buildings, 
 41.21  including centers such as developmental achievement centers, 
 41.22  hospitals and treatment centers where special instruction or 
 41.23  services required by sections 120.17 and 120.1701 are provided, 
 41.24  within or outside the district where services are provided, and 
 41.25  necessary transportation for resident pupils with a disability 
 41.26  required by sections 120.17, subdivision 4a, and 120.1701.  
 41.27  Transportation of pupils with a disability between home or a 
 41.28  respite care facility and school shall not be subject to any 
 41.29  distance requirement for children. 
 41.30     Sec. 9.  Minnesota Statutes 1995 Supplement, section 
 41.31  124.225, subdivision 8l, is amended to read: 
 41.32     Subd. 8l.  [ALTERNATIVE ATTENDANCE PROGRAMS.] A district 
 41.33  that enrolls nonresident pupils in programs under sections 
 41.34  120.062, 120.075, 120.0751, 120.0752, 124C.45 to 124C.48, and 
 41.35  126.22, may shall provide authorized transportation to the pupil 
 41.36  within the attendance area for the school that the pupil 
 42.1   attends.  The resident district need not provide or pay for 
 42.2   transportation between the pupil's residence and the district's 
 42.3   border. 
 42.4      Sec. 10.  Minnesota Statutes 1995 Supplement, section 
 42.5   124.225, subdivision 14, is amended to read: 
 42.6      Subd. 14.  [SPECIAL PROGRAMS TRANSPORTATION REVENUE.] A 
 42.7   district's special programs transportation revenue for the 
 42.8   1996-1997 and later school years equals the sum of: 
 42.9      (a) the district's actual cost in the base year for 
 42.10  transportation services for children with disabilities under 
 42.11  section 124.223, subdivisions 4, 5, 7, and 8, times the ratio of 
 42.12  the district's average daily membership for the current school 
 42.13  year to the district's average daily membership for the base 
 42.14  year; plus 
 42.15     (b) the greater of zero or 80 percent of the difference 
 42.16  between: 
 42.17     (1) the district's actual cost in the current year for 
 42.18  transportation services for children with disabilities under 
 42.19  section 124.223, subdivisions 4, 5, 7, and 8; and 
 42.20     (2) the amount computed in paragraph (a). 
 42.21     Sec. 11.  Minnesota Statutes 1995 Supplement, section 
 42.22  124.225, subdivision 16, is amended to read: 
 42.23     Subd. 16.  [NONPUBLIC PUPIL TRANSPORTATION REVENUE.] (a) A 
 42.24  district's nonpublic pupil transportation revenue for the 
 42.25  1996-1997 and later school years for transportation services for 
 42.26  nonpublic school pupils according to sections 123.39, 123.76 to 
 42.27  123.78, 124.223, and 124.226, equals the sum of the amounts 
 42.28  computed in paragraphs (b) and (c).  This revenue does not limit 
 42.29  the obligation to transport pupils under sections 123.76 to 
 42.30  123.79. 
 42.31     (b) For regular and excess transportation according to 
 42.32  section 124.225, subdivision 1, paragraph (c), clauses (1) and 
 42.33  (3), an amount equal to the product of: 
 42.34     (1) the district's actual expenditure per pupil transported 
 42.35  in the regular and excess transportation categories during the 
 42.36  second preceding school year; times 
 43.1      (2) the number of nonpublic school pupils residing in the 
 43.2   district who receive regular or excess transportation service or 
 43.3   reimbursement for the current school year; times 
 43.4      (3) the ratio of the formula allowance pursuant to section 
 43.5   124A.22, subdivision 2, for the current school year to the 
 43.6   formula allowance pursuant to section 124A.22, subdivision 2, 
 43.7   for the second preceding school year. 
 43.8      (c) For nonregular transportation according to section 
 43.9   124.225, subdivision 1, paragraph (c), clause (2), excluding 
 43.10  transportation services for children with disabilities under 
 43.11  section 124.223, subdivisions 4, 5, 7, and 8, and late activity 
 43.12  transportation according to section 124.226, subdivision 9, an 
 43.13  amount equal to the product of: 
 43.14     (1) the district's actual expenditure for nonregular and 
 43.15  late activity transportation for nonpublic school pupils during 
 43.16  the second preceding school year; times 
 43.17     (2) the ratio of the formula allowance pursuant to section 
 43.18  124A.22, subdivision 2, for the current school year to the 
 43.19  formula allowance pursuant to section 124A.22, subdivision 2, 
 43.20  for the second preceding school year. 
 43.21     (d) Notwithstanding the amount of the formula allowance for 
 43.22  fiscal years 1997 and 1998 in section 124A.22, subdivision 2, 
 43.23  the commissioner shall use the amount of the formula allowance 
 43.24  less $300 in determining the nonpublic pupil transportation 
 43.25  revenue in paragraphs (b) and (c) for fiscal years 1997 and 1998.
 43.26     Sec. 12.  Minnesota Statutes 1995 Supplement, section 
 43.27  124.225, subdivision 17, is amended to read: 
 43.28     Subd. 17.  [TARGETED NEEDS TRANSPORTATION AID.] (a) A 
 43.29  district's targeted needs transportation aid is the difference 
 43.30  between its targeted needs transportation revenue under 
 43.31  subdivision 13 and its targeted needs transportation revenue 
 43.32  levy under section 124.226, subdivision 10. 
 43.33     (b) If a district does not levy the entire amount 
 43.34  permitted, aid must be reduced in proportion to the actual 
 43.35  amount levied. 
 43.36     Sec. 13.  Minnesota Statutes 1995 Supplement, section 
 44.1   169.01, subdivision 6, is amended to read: 
 44.2      Subd. 6.  [SCHOOL BUS.] "School bus" means a motor vehicle 
 44.3   used to transport pupils to or from a school defined in section 
 44.4   120.101, or to or from school-related activities, by the school 
 44.5   or a school district, or by someone under an agreement with the 
 44.6   school or a school district.  A school bus does not include a 
 44.7   motor vehicle transporting children to or from school for which 
 44.8   parents or guardians receive direct compensation from a school 
 44.9   district, a motor coach operating under charter carrier 
 44.10  authority, a transit bus providing services as defined in 
 44.11  section 174.22, subdivision 7, or a vehicle otherwise qualifying 
 44.12  as a type III vehicle under paragraph (5), when the vehicle is 
 44.13  properly registered and insured and being driven by an employee 
 44.14  or agent of a school district for nonscheduled transportation.  
 44.15  A school bus may be type A, type B, type C, or type D, or type 
 44.16  III as follows:  
 44.17     (1) A "type A school bus" is a conversion or body 
 44.18  constructed upon a van-type compact truck or a front-section 
 44.19  vehicle, with a gross vehicle weight rating of 10,000 pounds or 
 44.20  less, designed for carrying more than ten persons. 
 44.21     (2) A "type B school bus" is a conversion or body 
 44.22  constructed and installed upon a van or front-section vehicle 
 44.23  chassis, or stripped chassis, with a gross vehicle weight rating 
 44.24  of more than 10,000 pounds, designed for carrying more than ten 
 44.25  persons.  Part of the engine is beneath or behind the windshield 
 44.26  and beside the driver's seat.  The entrance door is behind the 
 44.27  front wheels. 
 44.28     (3) A "type C school bus" is a body installed upon a flat 
 44.29  back cowl chassis with a gross vehicle weight rating of more 
 44.30  than 10,000 pounds, designated designed for carrying more than 
 44.31  ten persons.  All of the engine is in front of the windshield 
 44.32  and the entrance door is behind the front wheels. 
 44.33     (4) A "type D school bus" is a body installed upon a 
 44.34  chassis, with the engine mounted in the front, midship or rear, 
 44.35  with a gross vehicle weight rating of more than 10,000 pounds, 
 44.36  designed for carrying more than ten persons.  The engine may be 
 45.1   behind the windshield and beside the driver's seat; it may be at 
 45.2   the rear of the bus, behind the rear wheels, or midship between 
 45.3   the front and rear axles.  The entrance door is ahead of the 
 45.4   front wheels. 
 45.5      (5) Type III school buses and type III Head Start buses are 
 45.6   restricted to passenger cars, station wagons, vans, and buses 
 45.7   having a maximum manufacturer's rated seating capacity of ten 
 45.8   people, including the driver, and a gross vehicle weight rating 
 45.9   of 10,000 pounds or less.  In this subdivision, "gross vehicle 
 45.10  weight rating" means the value specified by the manufacturer as 
 45.11  the loaded weight of a single vehicle.  A "type III school bus" 
 45.12  and "type III Head Start bus" must not be outwardly equipped and 
 45.13  identified as a type A, B, C, or D school bus or type A, B, C, 
 45.14  or D Head Start bus. 
 45.15     Sec. 14.  Minnesota Statutes 1994, section 169.4504, is 
 45.16  amended by adding a subdivision to read: 
 45.17     Subd. 5.  [AISLE WIDTH.] All school buses equipped with a 
 45.18  power lift shall provide at least a 12-inch aisle leading from 
 45.19  wheelchair position to at least one emergency door and the lift 
 45.20  area. 
 45.21     Sec. 15.  Minnesota Statutes 1995 Supplement, section 
 45.22  631.40, subdivision 1a, is amended to read: 
 45.23     Subd. 1a.  [CERTIFIED COPY OF DISQUALIFYING OFFENSE 
 45.24  CONVICTIONS SENT TO PUBLIC SAFETY AND SCHOOL DISTRICTS.] When a 
 45.25  person is convicted of committing a disqualifying offense, as 
 45.26  defined in section 171.3215, subdivision 1, a gross misdemeanor, 
 45.27  a fourth moving violation within a three-year period the 
 45.28  previous three years, or a violation of section 169.121 or 
 45.29  169.129, or a similar statute or ordinance from another state, 
 45.30  the court shall determine whether the offender is a school bus 
 45.31  driver as defined in section 171.3215, subdivision 1, whether 
 45.32  the offender possesses a school bus driver's endorsement on the 
 45.33  offender's driver's license and in what school districts the 
 45.34  offender drives a school bus.  If the offender is a school bus 
 45.35  driver or possesses a school bus driver's endorsement, the court 
 45.36  administrator shall send a certified copy of the conviction to 
 46.1   the department of public safety and to the school districts in 
 46.2   which the offender drives a school bus within ten days after the 
 46.3   conviction. 
 46.4      Sec. 16.  Laws 1995, First Special Session chapter 3, 
 46.5   article 2, section 51, subdivision 7, is amended to read: 
 46.6      Subd. 7.  [INTERDISTRICT DESEGREGATION TRANSPORTATION 
 46.7   GRANT.] For grants according to section 50: 
 46.8        $300,000       .....     1996
 46.9        $630,000       .....     1997
 46.10     Any balance remaining in the first year does not cancel but 
 46.11  is available in the second year. 
 46.12     Sec. 17.  Laws 1995, First Special Session chapter 3, 
 46.13  article 2, section 52, is amended to read: 
 46.14     Sec. 52.  [TRANSPORTATION AIDS AND LEVIES; SUSPENSION.] 
 46.15     Minnesota Statutes 1994, sections 124.225, subdivisions 1, 
 46.16  3a, 7a, 7b, 7d, 7e, 8a, 8k, 8m, and 10; and 124.226, 
 46.17  subdivisions 1, 2, 3a, 4, 5, 6, 7, and 8, do not apply to aids 
 46.18  payable in fiscal years 1997 and 1998 or to levies made in 1995 
 46.19  and 1996 for taxes payable in 1996 and 1997. 
 46.20     Sec. 18.  Laws 1995, First Special Session chapter 3, 
 46.21  article 2, section 53, is amended to read: 
 46.22     Sec. 53.  [EFFECTIVE DATE.] 
 46.23     Sections 6 to 9 and 29 to 49 are effective the day 
 46.24  following final enactment. 
 46.25     Section 12 is effective beginning with taxes payable in 
 46.26  1996 for fiscal year 1997. 
 46.27     Sec. 19.  [APPROPRIATION.] 
 46.28     $150,000 is appropriated to the St. Paul school district to 
 46.29  contract with the Metropolitan Council Transit Organization for 
 46.30  a one-year pilot program during the 1996-1997 school year to 
 46.31  transport students to and from Arlington High School.  The MCTO 
 46.32  and the St. Paul school district shall submit a joint 
 46.33  preliminary report by March 1, 1997, to the chairs of the 
 46.34  education committees of the senate and the house of 
 46.35  representatives, the chair of the metropolitan and local 
 46.36  government committee of the senate, and the chair of the local 
 47.1   government and metropolitan affairs committee of the house of 
 47.2   representatives.  The MCTO may not charge the district any more 
 47.3   than $150,000 for the school year. 
 47.4      Sec. 20.  [EFFECTIVE DATE.] 
 47.5      Sections 8 to 12 are effective the day following final 
 47.6   enactment. 
 47.7                              ARTICLE 3 
 47.8                           SPECIAL PROGRAMS 
 47.9      Section 1.  Minnesota Statutes 1995 Supplement, section 
 47.10  120.17, subdivision 3a, is amended to read: 
 47.11     Subd. 3a.  [SCHOOL DISTRICT OBLIGATIONS.] Every district 
 47.12  shall ensure that: 
 47.13     (1) all students with disabilities are provided the special 
 47.14  instruction and services which are appropriate to their needs.  
 47.15  Where the individual education plan team has determined 
 47.16  appropriate goals and objectives based on the student's needs, 
 47.17  including the extent to which the student can be included in the 
 47.18  least restrictive environment, and where there are essentially 
 47.19  equivalent and effective instruction, related services, or 
 47.20  assistive technology devices available to meet the student's 
 47.21  needs, cost to the school district may be among the factors 
 47.22  considered by the team in choosing how to provide the 
 47.23  appropriate services, instruction, or devices that are to be 
 47.24  made part of the student's individual education plan.  The 
 47.25  student's needs and the special education instruction and 
 47.26  services to be provided shall be agreed upon through the 
 47.27  development of an individual education plan.  The plan shall 
 47.28  address the student's need to develop skills to live and work as 
 47.29  independently as possible within the community.  By grade 9 or 
 47.30  age 14, the plan shall address the student's needs for 
 47.31  transition from secondary services to post-secondary education 
 47.32  and training, employment, community participation, recreation, 
 47.33  and leisure and home living.  The plan must include a statement 
 47.34  of the needed transition services, including a statement of the 
 47.35  interagency responsibilities or linkages or both before 
 47.36  secondary services are concluded; 
 48.1      (2) children with a disability under age five and their 
 48.2   families are provided special instruction and services 
 48.3   appropriate to the child's level of functioning and needs; 
 48.4      (3) children with a disability and their parents or 
 48.5   guardians are guaranteed procedural safeguards and the right to 
 48.6   participate in decisions involving identification, assessment 
 48.7   including assistive technology assessment, and educational 
 48.8   placement of children with a disability; 
 48.9      (4) to the maximum extent appropriate, children with a 
 48.10  disability, including those in public or private institutions or 
 48.11  other care facilities, are educated with children who are not 
 48.12  disabled, and that special classes, separate schooling, or other 
 48.13  removal of children with a disability from the regular 
 48.14  educational environment occurs only when and to the extent that 
 48.15  the nature or severity of the disability is such that education 
 48.16  in regular classes with the use of supplementary services cannot 
 48.17  be achieved satisfactorily; 
 48.18     (5) in accordance with recognized professional standards, 
 48.19  testing and evaluation materials, and procedures utilized for 
 48.20  the purposes of classification and placement of children with a 
 48.21  disability are selected and administered so as not to be 
 48.22  racially or culturally discriminatory; and 
 48.23     (6) the rights of the child are protected when the parents 
 48.24  or guardians are not known or not available, or the child is a 
 48.25  ward of the state. 
 48.26     Sec. 2.  Minnesota Statutes 1995 Supplement, section 
 48.27  120.17, subdivision 3b, is amended to read: 
 48.28     Subd. 3b.  [PROCEDURES FOR DECISIONS.] Every district shall 
 48.29  utilize at least the following procedures for decisions 
 48.30  involving identification, assessment, and educational placement 
 48.31  of children with a disability: 
 48.32     (a) Parents and guardians shall receive prior written 
 48.33  notice of:  
 48.34     (1) any proposed formal educational assessment or proposed 
 48.35  denial of a formal educational assessment of their child; 
 48.36     (2) a proposed placement of their child in, transfer from 
 49.1   or to, or denial of placement in a special education program; or 
 49.2      (3) the proposed provision, addition, denial or removal of 
 49.3   special education services for their child; 
 49.4      (b) The district shall not proceed with the initial formal 
 49.5   assessment of a child, the initial placement of a child in a 
 49.6   special education program, or the initial provision of special 
 49.7   education services for a child without the prior written consent 
 49.8   of the child's parent or guardian.  The refusal of a parent or 
 49.9   guardian to consent may be overridden by the decision in a 
 49.10  hearing held pursuant to clause (e) at the district's 
 49.11  initiative; 
 49.12     (c) Parents and guardians shall have an opportunity to meet 
 49.13  with appropriate district staff in at least one conciliation 
 49.14  conference, mediation, or other method of alternative dispute 
 49.15  resolution that the parties agree to, if they object to any 
 49.16  proposal of which they are notified pursuant to clause (a).  The 
 49.17  conciliation process or other form of alternative dispute 
 49.18  resolution shall not be used to deny or delay a parent or 
 49.19  guardian's right to a due process hearing.  If the parent or 
 49.20  guardian refuses efforts by the district to conciliate the 
 49.21  dispute with the school district, the requirement of an 
 49.22  opportunity for conciliation or other alternative dispute 
 49.23  resolution shall be deemed to be satisfied.  Notwithstanding 
 49.24  other law, in any proceeding following a conciliation 
 49.25  conference, the school district must not offer a conciliation 
 49.26  conference memorandum into evidence, except for any portions 
 49.27  that describe the district's final proposed offer of service.  
 49.28  Otherwise, with respect to forms of dispute resolution, 
 49.29  mediation, or conciliation, Minnesota Rule of Evidence 408 
 49.30  applies.  The department of children, families, and learning may 
 49.31  reimburse the districts or directly pay the costs of lay 
 49.32  advocates, not to exceed $150 per dispute, used in conjunction 
 49.33  with alternative dispute resolution. 
 49.34     (d) The commissioner shall establish a mediation process to 
 49.35  assist parents, school districts, or other parties to resolve 
 49.36  disputes arising out of the identification, assessment, or 
 50.1   educational placement of children with a disability.  The 
 50.2   mediation process must be offered as an informal alternative to 
 50.3   the due process hearing provided under clause (e), but must not 
 50.4   be used to deny or postpone the opportunity of a parent or 
 50.5   guardian to obtain a due process hearing. 
 50.6      (e) Parents, guardians, and the district shall have an 
 50.7   opportunity to obtain an impartial due process hearing initiated 
 50.8   and conducted by and in the school district responsible for 
 50.9   assuring that an appropriate program is provided in accordance 
 50.10  with state board rules, if the parent or guardian continues to 
 50.11  object to:  
 50.12     (1) a proposed formal educational assessment or proposed 
 50.13  denial of a formal educational assessment of their child; 
 50.14     (2) the proposed placement of their child in, or transfer 
 50.15  of their child to a special education program; 
 50.16     (3) the proposed denial of placement of their child in a 
 50.17  special education program or the transfer of their child from a 
 50.18  special education program; 
 50.19     (4) the proposed provision or addition of special education 
 50.20  services for their child; or 
 50.21     (5) the proposed denial or removal of special education 
 50.22  services for their child. 
 50.23     Within five business days after the request for a hearing, 
 50.24  or as directed by the hearing officer, the objecting party shall 
 50.25  provide the other party with a brief written statement of 
 50.26  particulars of the objection, the reasons for the objection, and 
 50.27  the specific remedies sought.  The other party shall provide the 
 50.28  objecting party with a written response to the statement of 
 50.29  objections within five business days of receipt of the statement.
 50.30     The hearing shall take place before an impartial hearing 
 50.31  officer mutually agreed to by the school board and the parent or 
 50.32  guardian.  If the school board and the parent or guardian are 
 50.33  unable to agree on a Within four business days of the receipt of 
 50.34  the request for the hearing, if the parties have not agreed on 
 50.35  the hearing officer, the school board shall request the 
 50.36  commissioner to appoint a hearing officer.  The school board 
 51.1   shall include with request the name of the person requesting the 
 51.2   hearing, the name of the student, the attorneys involved, if 
 51.3   any, and the date the hearing request was received.  The hearing 
 51.4   officer shall not be a school board member or employee of the 
 51.5   school district where the child resides or of the child's school 
 51.6   district of residence, an employee of any other public agency 
 51.7   involved in the education or care of the child, or any person 
 51.8   with a personal or professional interest which would conflict 
 51.9   with the person's objectivity at the hearing.  A person who 
 51.10  otherwise qualifies as a hearing officer is not an employee of 
 51.11  the district solely because the person is paid by the district 
 51.12  to serve as a hearing officer.  If the hearing officer requests 
 51.13  an independent educational assessment of a child, the cost of 
 51.14  the assessment shall be at district expense.  The proceedings 
 51.15  shall be recorded and preserved, at the expense of the school 
 51.16  district, pending ultimate disposition of the action. 
 51.17     (f) The decision of the hearing officer pursuant to clause 
 51.18  (e) shall be rendered not more than 45 calendar days from the 
 51.19  date of the receipt of the request for the hearing, except that 
 51.20  hearing officers are encouraged to accelerate the timeline to 30 
 51.21  days for children birth through two whose needs change rapidly 
 51.22  and require quick resolution of complaints.  A hearing officer 
 51.23  may not grant specific extensions of time beyond the 45-day 
 51.24  period at the request of either party unless requested by either 
 51.25  party for good cause shown on the record.  The decision of the 
 51.26  hearing officer shall be binding on all parties unless appealed 
 51.27  to the hearing review officer commissioner is notified of an 
 51.28  appeal by the parent,; guardian, or the; school board of the 
 51.29  district where the child resides pursuant to clause (g); and 
 51.30  also, in the case of children birth through two, by the county 
 51.31  board. 
 51.32     The local decision shall: 
 51.33     (1) be in writing; 
 51.34     (2) state the controlling facts upon which the decision is 
 51.35  made in sufficient detail to apprise the parties and the hearing 
 51.36  review officer of the basis and reason for the decision; and 
 52.1      (3) state whether the special education program or special 
 52.2   education services appropriate to the child's needs can be 
 52.3   reasonably provided within the resources available to the 
 52.4   responsible district or districts; 
 52.5      (4) state the amount and source of any additional district 
 52.6   expenditure necessary to implement the decision; and 
 52.7      (5) be based on the standards set forth in subdivision 3a 
 52.8   and the rules of the state board. 
 52.9      (g) Any local decision issued pursuant to clauses (e) and 
 52.10  (f) may be appealed to the hearing review officer commissioner 
 52.11  within 30 calendar days of receipt of that written decision, by 
 52.12  the parent, guardian, or the school board of the district 
 52.13  responsible for assuring that an appropriate program is provided 
 52.14  in accordance with state board rules.  The appealing party shall 
 52.15  note the specific parts of the hearing decision being appealed. 
 52.16     If the decision is appealed, a written transcript of the 
 52.17  hearing shall be made by the school district and shall be 
 52.18  accessible provided by the district to the parties involved and 
 52.19  the hearing review officer within five calendar days of the 
 52.20  filing of the appeal.  The hearing review officer shall conduct 
 52.21  an appellate review and issue a final independent decision based 
 52.22  on an impartial review of the local decision and the entire 
 52.23  record within 30 calendar days after the filing of the appeal.  
 52.24  However, the hearing review officer shall seek additional 
 52.25  evidence if necessary and may afford the parties an opportunity 
 52.26  for written or oral argument; provided any hearing held to seek 
 52.27  additional evidence shall be an impartial due process hearing 
 52.28  but shall be deemed not to be a contested case hearing for 
 52.29  purposes of chapter 14.  The hearing review officer may grant 
 52.30  specific extensions of time beyond the 30-day period at the 
 52.31  request of any party for good cause shown on the record. 
 52.32     The final decision shall: 
 52.33     (1) be in writing; 
 52.34     (2) include findings and conclusions; and 
 52.35     (3) be based upon the standards set forth in subdivision 3a 
 52.36  and in the rules of the state board. 
 53.1      (h) The decision of the hearing review officer shall be 
 53.2   final unless appealed by the parent or guardian or school board 
 53.3   to the Minnesota court of appeals or federal district court as 
 53.4   provided by federal law.  The State judicial review shall be in 
 53.5   accordance with chapter 14.  
 53.6      (i) The commissioner of children, families, and learning 
 53.7   shall select an individual who has the qualifications enumerated 
 53.8   in this paragraph to serve as the hearing review officer: 
 53.9      (1) the individual must be knowledgeable and impartial; 
 53.10     (2) the individual must not have a personal interest in or 
 53.11  specific involvement with the student who is a party to the 
 53.12  hearing; 
 53.13     (3) the individual must not have been employed as an 
 53.14  administrator by the district that is a party to the hearing; 
 53.15     (4) the individual must not have been involved in the 
 53.16  selection of the administrators of the district that is a party 
 53.17  to the hearing; 
 53.18     (5) the individual must not have a personal, economic, or 
 53.19  professional interest in the outcome of the hearing other than 
 53.20  the proper administration of the federal and state laws, rules, 
 53.21  and policies; 
 53.22     (6) the individual must not have substantial involvement in 
 53.23  the development of a state or local policy or procedures that 
 53.24  are challenged in the appeal; and 
 53.25     (7) the individual is not a current employee or board 
 53.26  member of a Minnesota public school district, education 
 53.27  district, intermediate unit or regional education agency, the 
 53.28  department of children, families, and learning, the state board 
 53.29  of education, or a parent advocacy organization or group; and 
 53.30     (8) the individual is not a current employee or board 
 53.31  member of a disability advocacy organization or group.  
 53.32     (j) In all appeals, the parent or guardian of the pupil 
 53.33  with a disability or the district that is a party to the hearing 
 53.34  may challenge the impartiality or competence of the proposed 
 53.35  hearing review officer by applying to the hearing review officer.
 53.36     (k) Pending the completion of proceedings pursuant to this 
 54.1   subdivision, unless the district and the parent or guardian of 
 54.2   the child agree otherwise, the child shall remain in the child's 
 54.3   current educational placement and shall not be denied initial 
 54.4   admission to school. 
 54.5      (l) The child's school district of residence, a resident 
 54.6   district, and providing district shall receive notice of and may 
 54.7   be a party to any hearings or appeals under this subdivision. 
 54.8      (m) A school district is not liable for harmless technical 
 54.9   violations of this subdivision or rules implementing this 
 54.10  subdivision if the school district can demonstrate on a 
 54.11  case-by-case basis that the violations did not harm the 
 54.12  student's educational progress or the parent or guardian's right 
 54.13  to notice, participation, or due process. 
 54.14     (n) Within ten calendar days after appointment, the hearing 
 54.15  officer shall schedule and hold a prehearing conference.  At 
 54.16  that conference, or later, the hearing officer may take any 
 54.17  appropriate action that a court might take under Rule 16 of 
 54.18  Minnesota Rules of Civil Procedure including, but not limited 
 54.19  to, scheduling, jurisdiction, and listing witnesses including 
 54.20  expert witnesses. 
 54.21     (o) A hearing officer or hearing review officer appointed 
 54.22  under this subdivision shall be deemed to be an employee of the 
 54.23  state under section 3.732 for the purposes of section 3.736 only.
 54.24     (p) In order to be eligible for selection, hearing officers 
 54.25  and hearing review officers shall participate in training and 
 54.26  follow procedures as designated by the commissioner. 
 54.27     (q) The hearing officer may admit all evidence which 
 54.28  possesses probative value, including hearsay, if it is the type 
 54.29  of evidence on which reasonable, prudent persons are accustomed 
 54.30  to rely in the conduct of their serious affairs.  The hearing 
 54.31  officer shall give effect to the rules of privilege recognized 
 54.32  by law.  Evidence which is incompetent, irrelevant, immaterial, 
 54.33  or unduly repetitious shall be excluded. 
 54.34     Sec. 3.  Minnesota Statutes 1994, section 120.17, is 
 54.35  amended by adding a subdivision to read: 
 54.36     Subd. 19.  [PARENT ADVISORY COMMITTEES.] Provisions of 
 55.1   Minnesota Rules, part 3525.1100, regarding parent advisory 
 55.2   committees shall apply to local school boards and cooperative 
 55.3   boards carrying out the provisions of Minnesota Statutes, 
 55.4   section 120.17. 
 55.5      Sec. 4.  Minnesota Statutes 1994, section 120.1701, 
 55.6   subdivision 10, is amended to read: 
 55.7      Subd. 10.  [PAYMENT FOR SERVICES.] Core early intervention 
 55.8   services shall be provided at public expense with no cost to 
 55.9   parents.  Parents shall be requested to assist in the cost of 
 55.10  additional early intervention services by using third-party 
 55.11  payment sources and applying for available resources.  If a 
 55.12  parent chooses not to access these resources, additional early 
 55.13  intervention services may not be provided.  Payment structures 
 55.14  permitted under state law shall be used to pay for additional 
 55.15  early intervention services.  Parental financial responsibility 
 55.16  shall be clearly defined in the individualized family service 
 55.17  plan.  A parent's inability to pay shall not prohibit a child 
 55.18  from receiving needed early intervention services. 
 55.19     Sec. 5.  Minnesota Statutes 1995 Supplement, section 
 55.20  120.1701, subdivision 20, is amended to read: 
 55.21     Subd. 20.  [DUE PROCESS HEARINGS.] By July 1, 1994, the 
 55.22  departments of children, families, and learning, health, and 
 55.23  human services shall develop procedures for hearings.  The 
 55.24  procedures for due process hearings and appeals shall be the 
 55.25  same as those in section 120.17, subdivision 3b.  The 
 55.26  responsibility for payment of costs and conducting due process 
 55.27  hearings and appeals shall be allocated to the appropriate 
 55.28  agency in accordance with section 120.1701, subdivisions 5, 13, 
 55.29  and 16.  
 55.30     Sec. 6.  [120.187] [DEFINITION.] 
 55.31     Subdivision 1.  [APPLICABILITY.] For the purposes of 
 55.32  sections 120.187 to 120.190, the following terms have the 
 55.33  meanings given them. 
 55.34     Subd. 2.  [ASSISTIVE TECHNOLOGY DEVICE.] "Assistive 
 55.35  technology device" means any item, piece of equipment, software, 
 55.36  or product system, whether acquired commercially off the shelf, 
 56.1   modified, or customized, that is used to increase, maintain, or 
 56.2   improve functional capabilities of children with disabilities. 
 56.3      Sec. 7.  [120.188] [PURCHASING GUIDELINES.] 
 56.4      Subdivision 1.  [RIGHTS OF SCHOOL DISTRICTS TO PURCHASE 
 56.5   SCHOOL-OWNED ASSISTIVE TECHNOLOGY.] (a) When a child with a 
 56.6   disability exits a school district and enters a new school 
 56.7   district, the child's new school district may purchase any 
 56.8   assistive technology devices that the child's former school 
 56.9   district has purchased on the child's behalf.  The child's new 
 56.10  school district must notify, in writing, the child's former 
 56.11  school district of the intent to purchase the device.  The 
 56.12  child's new school district must complete a purchase agreement 
 56.13  according to section 4.  The child's former school district must 
 56.14  respond, in writing, to the request to purchase within 30 days.  
 56.15     (b) School districts may decline to sell a device if they 
 56.16  can demonstrate the technology is a general use device or can be 
 56.17  modified for use by other students. 
 56.18     Subd. 2.  [LIABILITY FOR USED EQUIPMENT.] The child's 
 56.19  former school district shall not be liable for any 
 56.20  nonconformities in the equipment after it is purchased by the 
 56.21  child's new school district, or for injuries arising out of the 
 56.22  use of the assistive technology device.  This section does not 
 56.23  foreclose the child's right to bring suit against the 
 56.24  manufacturer, assistive device lessor, or assistive device 
 56.25  dealer for nonconformities in or injuries arising out of the use 
 56.26  of the assistive technology device. 
 56.27     Subd. 3.  [THIRD-PARTY PAYORS.] Nothing contained in this 
 56.28  section shall be construed as decreasing the obligation of an 
 56.29  insurance company or other third-party payor to provide coverage 
 56.30  for assistive technology. 
 56.31     Sec. 8.  [120.189] [INTERAGENCY AGREEMENT TO PURCHASE USED 
 56.32  ASSISTIVE TECHNOLOGY DEVICES.] 
 56.33     Subdivision 1.  [OPTION TO PURCHASE BY DEPARTMENT OF 
 56.34  ECONOMIC SECURITY.] (a) When a child with a disability 
 56.35  transitions into a work environment or enrolls in a 
 56.36  post-secondary course or program, the department of economic 
 57.1   security may purchase any assistive technology device that the 
 57.2   child's former school district purchased on the child's behalf. 
 57.3      (b) The rehabilitation services division of the department 
 57.4   of economic security may purchase an assistive technology device 
 57.5   initially purchased by a school district for a child who is 
 57.6   currently a recipient of rehabilitation services and who needs 
 57.7   the identical assistive technology device as stated on the 
 57.8   recipient's individual written rehabilitation plan.  The 
 57.9   purchase may be made not more than three months prior to the 
 57.10  child exiting the school district. 
 57.11     Subd. 2.  [LIABILITY FOR USED EQUIPMENT.] The department of 
 57.12  economic security and the department of children, families, and 
 57.13  learning shall not be liable for any nonconformities in the 
 57.14  equipment after it is purchased by the rehabilitation services 
 57.15  division of the department of economic security, or for injuries 
 57.16  arising out of the use of the assistive technology device.  This 
 57.17  section does not foreclose the child's right to bring suit 
 57.18  against the manufacturer, assistive device lessor, or assistive 
 57.19  device dealer for nonconformities in or injuries arising out of 
 57.20  the use of the assistive technology device. 
 57.21     Subd. 3.  [THIRD-PARTY PAYOR.] Nothing contained in this 
 57.22  section shall be construed as decreasing the obligation of an 
 57.23  insurance company or other third-party payor to provide coverage 
 57.24  for assistive technology. 
 57.25     Sec. 9.  [120.190] [PURCHASE AGREEMENT; PRICE FORMULA.] 
 57.26     The commissioner shall develop guidelines for the sale of 
 57.27  used assistive technology including a purchase agreement, a 
 57.28  formula for establishing the sale price, and other terms and 
 57.29  conditions of the sale. 
 57.30     Sec. 10.  Minnesota Statutes 1994, section 121.8355, 
 57.31  subdivision 1, is amended to read: 
 57.32     Subdivision 1.  [ESTABLISHMENT.] (a) In order to qualify as 
 57.33  a family services collaborative, a minimum of one school 
 57.34  district, one county, and one public health entity must agree in 
 57.35  writing to provide coordinated family services and commit 
 57.36  resources to an integrated fund.  Collaboratives are expected to 
 58.1   have broad community representation, which may include other 
 58.2   local providers, including additional school districts, 
 58.3   counties, and public health entities, other municipalities, 
 58.4   public libraries, existing culturally specific community 
 58.5   organizations, tribal entities, local health organizations, 
 58.6   private and nonprofit service providers, child care providers, 
 58.7   local foundations, community-based service groups, businesses, 
 58.8   local transit authorities or other transportation providers, 
 58.9   community action agencies under section 268.53, senior citizen 
 58.10  volunteer organizations, parent organizations, parents, and 
 58.11  sectarian organizations that provide nonsectarian services. 
 58.12     (b) Community-based collaboratives composed of 
 58.13  representatives of schools, local businesses, local units of 
 58.14  government, parents, students, clergy, health and social 
 58.15  services providers, youth service organizations, and existing 
 58.16  culturally specific community organizations may plan and develop 
 58.17  services for children and youth.  A community-based 
 58.18  collaborative must agree to collaborate with county, school 
 58.19  district, and public health entities.  Their services may 
 58.20  include opportunities for children or youth to improve child 
 58.21  health and development, reduce barriers to adequate school 
 58.22  performance, improve family functioning, provide community 
 58.23  service, enhance self esteem, and develop general employment 
 58.24  skills.  
 58.25     (c) Members of the governing bodies of political 
 58.26  subdivisions involved in the establishment of a family services 
 58.27  collaborative shall select representatives of the 
 58.28  nongovernmental entities listed in paragraph (a) to serve on a 
 58.29  joint board established under section 471.59, subdivision 11.  
 58.30  The governing body members shall determine the number of 
 58.31  representatives of the nongovernmental entities. 
 58.32     Sec. 11.  Minnesota Statutes 1994, section 121.8355, is 
 58.33  amended by adding a subdivision to read: 
 58.34     Subd. 2a.  [DUTIES OF CERTAIN COORDINATING BODIES.] By 
 58.35  mutual agreement of the collaborative and a coordinating body 
 58.36  listed in this subdivision, a family services collaborative may 
 59.1   assume the duties of a community transition interagency 
 59.2   committee established under section 120.17, subdivision 16; an 
 59.3   interagency early intervention committee established under 
 59.4   section 120.1701, subdivision 5; a local advisory council 
 59.5   established under section 245.4875, subdivision 5; or a local 
 59.6   coordinating council established under section 245.4875, 
 59.7   subdivision 6. 
 59.8      Sec. 12.  Minnesota Statutes 1994, section 123.35, is 
 59.9   amended by adding a subdivision to read: 
 59.10     Subd. 9b.  [SERVICES FOR INDIAN STUDENTS.] School districts 
 59.11  may enter into agreements with Indian tribal governments for 
 59.12  purposes of providing educational services for Indian students.  
 59.13  Such agreements may allow for the use of any resources available 
 59.14  to either party. 
 59.15     Sec. 13.  Minnesota Statutes 1995 Supplement, section 
 59.16  124.273, subdivision 1c, is amended to read: 
 59.17     Subd. 1c.  [ADJUSTED LEP BASE REVENUE.] (a) A district's 
 59.18  adjusted limited English proficiency programs base revenue for 
 59.19  fiscal year 1996 and later equals the product of: 
 59.20     (1) the district's base revenue for limited English 
 59.21  proficiency programs under this section and section 124.321, 
 59.22  times 
 59.23     (2) the ratio of: 
 59.24     (i) the greater of 20 or the number of pupils of limited 
 59.25  English proficiency enrolled in the district during the current 
 59.26  fiscal year to 
 59.27     (ii) the greater of 20 or the number of pupils of limited 
 59.28  English proficiency enrolled in the district during fiscal the 
 59.29  base year 1995. 
 59.30     (b) For the purposes of this section, the base year for 
 59.31  fiscal year 1996 is fiscal year 1995.  The base year for later 
 59.32  fiscal years is the second fiscal year preceding the fiscal year 
 59.33  for which aid shall be paid.  The current year is the fiscal 
 59.34  year for which aid shall be paid. 
 59.35     (c) For the purposes of this section, a teacher includes 
 59.36  nonlicensed personnel who provide direct instruction to students 
 60.1   of limited English proficiency under the supervision of a 
 60.2   licensed teacher. 
 60.3      Sec. 14.  Minnesota Statutes 1995 Supplement, section 
 60.4   124.273, subdivision 1d, is amended to read: 
 60.5      Subd. 1d.  [LEP BASE REVENUE.] (a) The limited English 
 60.6   proficiency programs base revenue equals the sum of the 
 60.7   following amounts, computed using fiscal base year 1995 data:  
 60.8      (1) 68 percent of the salaries paid limited English 
 60.9   proficiency program teachers salary of one full-time equivalent 
 60.10  teacher for each 40 pupils of limited English proficiency 
 60.11  enrolled, or 68 percent of the salary of one-half of a full-time 
 60.12  teacher in a district with 20 or fewer pupils of limited English 
 60.13  proficiency enrolled; and 
 60.14     (2) for supplies and equipment purchased or rented for use 
 60.15  in the instruction of pupils of limited English proficiency an 
 60.16  amount equal to 47 percent of the sum actually spent by the 
 60.17  district but not to exceed an average of $47 in any one school 
 60.18  year for each pupil of limited English proficiency receiving 
 60.19  instruction. 
 60.20     (b) For the purposes of this subdivision, a teacher 
 60.21  includes nonlicensed personnel who provide direct instruction to 
 60.22  students of limited English proficiency under the supervision of 
 60.23  a licensed teacher. 
 60.24     Sec. 15.  Minnesota Statutes 1994, section 124.273, is 
 60.25  amended by adding a subdivision to read: 
 60.26     Subd. 1f.  [STATE TOTAL LEP REVENUE.] (a) The state total 
 60.27  limited English proficiency programs revenue for fiscal year 
 60.28  1996 equals $12,290,000.  The state total limited English 
 60.29  proficiency programs revenue for fiscal year 1997 equals 
 60.30  $13,674,000.  
 60.31     (b) The state total limited English proficiency programs 
 60.32  revenue for later fiscal years equals: 
 60.33     (1) the state total limited English proficiency programs 
 60.34  revenue for the preceding fiscal year; times 
 60.35     (2) the program growth factor under section 124.3201, 
 60.36  subdivision 1; times 
 61.1      (3) the ratio of the state total number of pupils with 
 61.2   limited English proficiency for the current fiscal year to the 
 61.3   state total number of pupils with limited English proficiency 
 61.4   for the preceding fiscal year. 
 61.5      Sec. 16.  Minnesota Statutes 1994, section 124.273, is 
 61.6   amended by adding a subdivision to read: 
 61.7      Subd 1g.  [SCHOOL DISTRICT LEP REVENUE.] (a) A school 
 61.8   district's limited English proficiency programs revenue for 
 61.9   fiscal year 1996 and later equals the state total limited 
 61.10  English proficiency programs revenue, minus the amount 
 61.11  determined under paragraph (b), times the ratio of the 
 61.12  district's adjusted limited English proficiency programs base 
 61.13  revenue to the state total adjusted limited English proficiency 
 61.14  programs base revenue. 
 61.15     (b) Notwithstanding paragraph (a), if the limited English 
 61.16  proficiency programs base revenue for a district equals zero, 
 61.17  the limited English proficiency programs revenue equals the sum 
 61.18  of the following amounts, computed using current year data: 
 61.19     (1) 68 percent of the salary of one full-time equivalent 
 61.20  teacher for each 40 pupils of limited English proficiency 
 61.21  enrolled, or 68 percent of the salary of one-half of a full-time 
 61.22  teacher in a district with 20 or fewer pupils of limited English 
 61.23  proficiency enrolled; and 
 61.24     (2) for supplies and equipment purchased or rented for use 
 61.25  in the instruction of pupils of limited English proficiency an 
 61.26  amount equal to 47 percent of the sum actually spent by the 
 61.27  district but not to exceed an average of $47 in any one school 
 61.28  year for each pupil of limited English proficiency receiving 
 61.29  instruction. 
 61.30     Sec. 17.  Minnesota Statutes 1994, section 124.311, 
 61.31  subdivision 1, is amended to read: 
 61.32     Subdivision 1.  [INSTRUCTION IN REGULAR CLASSROOM.] A 
 61.33  school district may receive assurance of mastery revenue to 
 61.34  provide direct instructional services to eligible pupils in the 
 61.35  pupils' regular classroom.  
 61.36     Sec. 18.  Minnesota Statutes 1994, section 124.311, 
 62.1   subdivision 4, is amended to read: 
 62.2      Subd. 4.  [ELIGIBLE SERVICES.] Assurance of mastery revenue 
 62.3   must be used to provide direct instructional services to an 
 62.4   eligible pupil, or group of eligible pupils, under the following 
 62.5   conditions:  
 62.6      (a) Instruction may be provided at one or more grade levels 
 62.7   from kindergarten through grade 8.  If an assessment of pupils' 
 62.8   needs within a district demonstrates that the eligible pupils in 
 62.9   grades kindergarten through 8 are being appropriately served, a 
 62.10  district may serve eligible pupils in grades 9 through 12. 
 62.11     (b) Instruction must be provided in the usual and customary 
 62.12  classroom of the eligible pupil.  
 62.13     (c) Instruction must be provided under the supervision of 
 62.14  the eligible pupil's regular classroom teacher.  Instruction may 
 62.15  be provided by the eligible pupil's classroom teacher, by 
 62.16  another teacher, by a team of teachers, or by an education 
 62.17  assistant or aide.  A special education teacher may provide 
 62.18  instruction, but instruction that is provided under this section 
 62.19  is not eligible for aid under section 124.32.  
 62.20     (d) (c) The instruction that is provided must differ from 
 62.21  the initial instruction the pupil received in the regular 
 62.22  classroom setting.  The instruction may differ by presenting 
 62.23  different curriculum than was initially presented in the regular 
 62.24  classroom, or by presenting the same curriculum:  
 62.25     (1) at a different rate or in a different sequence than it 
 62.26  was initially presented; 
 62.27     (2) using different teaching methods or techniques than 
 62.28  were used initially; or 
 62.29     (3) using different instructional materials than were used 
 62.30  initially. 
 62.31     Sec. 19.  Minnesota Statutes 1994, section 124.311, 
 62.32  subdivision 5, is amended to read: 
 62.33     Subd. 5.  [REVENUE AMOUNT.] Assurance of mastery revenue is 
 62.34  the sum of state and district money.  The sum may equal up to 
 62.35  $45 for fiscal year 1991 and thereafter times the number 
 62.36  of actual fund balance pupil units in kindergarten through grade 
 63.1   8 in the district.  The district shall determine the amount of 
 63.2   money it will provide and the state shall provide an equal 
 63.3   amount of money. 
 63.4      Sec. 20.  Minnesota Statutes 1995 Supplement, section 
 63.5   124.314, subdivision 2, is amended to read: 
 63.6      Subd. 2.  [LEVY.] For fiscal year 1997 1996 and thereafter, 
 63.7   a school district's targeted needs levy equals the sum of its 
 63.8   integration levy under section 124.912, subdivision 2, and that 
 63.9   portion of its special education levy attributed to the limited 
 63.10  English proficiency program. 
 63.11     Sec. 21.  Minnesota Statutes 1995 Supplement, section 
 63.12  124.3201, subdivision 1, is amended to read: 
 63.13     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
 63.14  section and sections 124.3202 and 124.321, the definitions in 
 63.15  this subdivision apply. 
 63.16     (a) "Base year" for fiscal year 1996 and fiscal year 1997 
 63.17  means fiscal year 1995 the 1994 summer program and the 1994-1995 
 63.18  school year.  Base year for later fiscal years means the second 
 63.19  fiscal year preceding the fiscal year for which aid will be paid.
 63.20     (b) "Basic revenue" has the meaning given it in section 
 63.21  124A.22, subdivision 2.  For the purposes of computing basic 
 63.22  revenue pursuant to this section, each child with a disability 
 63.23  shall be counted as prescribed in section 124.17, subdivision 1. 
 63.24     (c) "Essential personnel" means teachers, related services, 
 63.25  and support services staff providing direct services to students.
 63.26     (d) "Average daily membership" has the meaning given it in 
 63.27  section 124.17. 
 63.28     (e) "Program growth factor" means 1.00 for fiscal year 1998 
 63.29  and later. 
 63.30     (f) "Aid percentage factor" means 60 percent for fiscal 
 63.31  year 1996, 70 percent for fiscal year 1997, 80 percent for 
 63.32  fiscal year 1998, 90 percent for fiscal year 1999, and 100 
 63.33  percent for fiscal years 2000 and later. 
 63.34     (g) "Levy percentage factor" means 100 minus the aid 
 63.35  percentage factor for that year. 
 63.36     Sec. 22.  Minnesota Statutes 1995 Supplement, section 
 64.1   124.3201, subdivision 2, is amended to read: 
 64.2      Subd. 2.  [SPECIAL EDUCATION BASE REVENUE.] The special 
 64.3   education base revenue equals the sum of the following amounts 
 64.4   computed using base year data: 
 64.5      (1) 68 percent of the salary of each essential person 
 64.6   employed in the district's program for children with a 
 64.7   disability during the regular school year, whether the person is 
 64.8   employed by one or more districts; 
 64.9      (2) for the Minnesota state academy for the deaf or the 
 64.10  Minnesota state academy for the blind, 68 percent of the salary 
 64.11  of each instructional aide assigned to a child attending the 
 64.12  academy, if that aide is required by the child's individual 
 64.13  education plan; 
 64.14     (3) for special instruction and services provided to any 
 64.15  pupil by contracting with public, private, or voluntary agencies 
 64.16  other than school districts, in place of special instruction and 
 64.17  services provided by the district, 52 percent of the difference 
 64.18  between the amount of the contract and the basic revenue of the 
 64.19  district for that pupil for the fraction of the school day the 
 64.20  pupil receives services under the contract; 
 64.21     (4) for special instruction and services provided to any 
 64.22  pupil by contracting for services with public, private, or 
 64.23  voluntary agencies other than school districts, that are 
 64.24  supplementary to a full educational program provided by the 
 64.25  school district, 52 percent of the amount of the contract for 
 64.26  that pupil; 
 64.27     (5) for supplies and equipment purchased or rented for use 
 64.28  in the instruction of children with a disability an amount equal 
 64.29  to 47 percent of the sum actually expended by the district but 
 64.30  not to exceed an average of $47 in any one school year for each 
 64.31  child with a disability receiving instruction; and 
 64.32     (6) for fiscal years 1997 and later, special education base 
 64.33  revenue shall include amounts under clauses (1) to (5) for 
 64.34  special education summer programs provided during the base year 
 64.35  for that fiscal year. 
 64.36     Sec. 23.  Minnesota Statutes 1995 Supplement, section 
 65.1   124.3201, is amended by adding a subdivision to read: 
 65.2      Subd. 2a.  [SPECIAL EDUCATION TUITION REVENUE.] For fiscal 
 65.3   year 1996 and later, a district's special education tuition 
 65.4   revenue is equal to 50 percent of the difference between tuition 
 65.5   costs in the base year and actual tuition costs for pupils whose 
 65.6   individual education plans require placement in another district 
 65.7   under section 120.17. 
 65.8      Sec. 24.  Minnesota Statutes 1995 Supplement, section 
 65.9   124.3201, subdivision 3, is amended to read: 
 65.10     Subd. 3.  [ADJUSTED SPECIAL EDUCATION BASE REVENUE.] For 
 65.11  fiscal year 1996 and later, a district's adjusted special 
 65.12  education base revenue equals the district's special education 
 65.13  base revenue times the ratio of the district's average daily 
 65.14  membership for the current school year to the district's average 
 65.15  daily membership for the base year; plus the district's special 
 65.16  education tuition revenue under subdivision 2a. 
 65.17     Sec. 25.  Minnesota Statutes 1995 Supplement, section 
 65.18  124.3202, is amended to read: 
 65.19     124.3202 [SPECIAL EDUCATION SUMMER PROGRAM REVENUE.] 
 65.20     Subdivision 1.  [SUMMER PROGRAM BASE REVENUE.] The summer 
 65.21  program base revenue for fiscal year 1996 and fiscal year 1997 
 65.22  equals the sum of the following amounts computed using base year 
 65.23  data: 
 65.24     (1) 68 percent of the summer program salary of each 
 65.25  essential person employed in the district's program for children 
 65.26  with a disability, whether the person is employed by one or more 
 65.27  districts; 
 65.28     (2) for the Minnesota state academy for the deaf or the 
 65.29  Minnesota state academy for the blind, 68 percent of the summer 
 65.30  program salary of each instructional aide assigned to a child 
 65.31  attending the academy, if that aide is required by the child's 
 65.32  individual education plan; 
 65.33     (3) for special instruction and services provided to any 
 65.34  pupil by contracting with public, private, or voluntary agencies 
 65.35  other than school districts, in place of special instruction and 
 65.36  services provided by the district, 52 percent of the difference 
 66.1   between the amount of the contract for the summer program and 
 66.2   the basic revenue of the district for that pupil for the 
 66.3   fraction of the school day the pupil receives services under the 
 66.4   contract; and 
 66.5      (4) for special instruction and services provided to any 
 66.6   pupil by contracting for services with public, private, or 
 66.7   voluntary agencies other than school districts, that are 
 66.8   supplementary to a full educational program provided by the 
 66.9   school district, 52 percent of the amount of the summer program 
 66.10  contract for that pupil. 
 66.11     Subd. 2.  [ADJUSTED SUMMER PROGRAM BASE REVENUE.] For 
 66.12  fiscal year 1996 and later fiscal year 1997, a district's 
 66.13  adjusted summer program base revenue equals the district's 
 66.14  summer program base revenue times the ratio of the district's 
 66.15  average daily membership for the current school year to the 
 66.16  district's average daily membership for the base year. 
 66.17     Subd. 3.  [STATE TOTAL SUMMER PROGRAM REVENUE.] The state 
 66.18  total summer program revenue for fiscal year 1996 equals 
 66.19  $7,152,000.  The state total summer program revenue for fiscal 
 66.20  year 1997 equals $3,728,500.  Fiscal year 1996 summer program 
 66.21  revenue is for 1995 summer programs.  Fiscal year 1997 summer 
 66.22  program revenue is for 1996 summer programs provided in fiscal 
 66.23  year 1996. 
 66.24     Subd. 4.  [SCHOOL DISTRICT SUMMER PROGRAM REVENUE.] A 
 66.25  school district's summer program revenue for fiscal year 
 66.26  1996 and fiscal year 1997 equals the state total summer program 
 66.27  revenue times the ratio of the district's adjusted summer 
 66.28  program base revenue to the state total adjusted summer program 
 66.29  base revenue. 
 66.30     Subd. 5.  [SPECIAL EDUCATION SUMMER PROGRAM AID.] A school 
 66.31  district's special education summer program aid for fiscal year 
 66.32  1996 and fiscal year 1997 equals the district's summer program 
 66.33  revenue times the aid percentage factor for that year. 
 66.34     Subd. 6.  [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 
 66.35  INTERMEDIATES.] For the purposes of this section and section 
 66.36  124.321, a special education cooperative or an intermediate 
 67.1   district shall allocate its approved expenditures for special 
 67.2   education programs among participating school districts.  
 67.3   Special education summer program aid for services provided by a 
 67.4   cooperative or intermediate district shall be paid to the 
 67.5   participating school districts. 
 67.6      Sec. 26.  Minnesota Statutes 1995 Supplement, section 
 67.7   124.323, subdivision 1, is amended to read: 
 67.8      Subdivision 1.  [DEFINITIONS.] In this section, the 
 67.9   definitions in this subdivision apply. 
 67.10     (a) "Unreimbursed special education cost" means the sum of 
 67.11  the following: 
 67.12     (1) expenditures for teachers' salaries, contracted 
 67.13  services, supplies, and equipment eligible for revenue under 
 67.14  sections 124.3201, and 124.3202, and 124.321; plus 
 67.15     (2) expenditures for tuition bills received under section 
 67.16  120.17 for services eligible for revenue under sections 
 67.17  124.3201, subdivision 2, and 124.3202, subdivision 1; minus 
 67.18     (3) revenue for teachers' salaries, contracted services, 
 67.19  supplies, and equipment under sections 124.3201, and 124.3202, 
 67.20  and 124.321; minus 
 67.21     (4) tuition receipts under section 120.17 for services 
 67.22  eligible for revenue under sections 124.3201, subdivision 2, and 
 67.23  124.3202, subdivision 1. 
 67.24     (b) "General revenue," for fiscal year 1996, means the sum 
 67.25  of the general education revenue according to section 124A.22, 
 67.26  subdivision 1, as adjusted according to section 124A.036, 
 67.27  subdivision 5, plus the total referendum revenue according to 
 67.28  section 124A.03, subdivision 1e.  For fiscal years 1997 and 
 67.29  later, "general revenue" means the sum of the general education 
 67.30  revenue according to section 124A.22, subdivision 1, as adjusted 
 67.31  according to section 124A.036, subdivision 5, plus the total 
 67.32  referendum revenue minus transportation sparsity revenue minus 
 67.33  total operating capital revenue. 
 67.34     Sec. 27.  Minnesota Statutes 1995 Supplement, section 
 67.35  124.323, subdivision 2, is amended to read: 
 67.36     Subd. 2.  [EXCESS COST REVENUE.] For 1996 and later fiscal 
 68.1   years, a district's special education excess cost revenue equals 
 68.2   the product of: 
 68.3      (1) 70 percent of the difference between (i) (1) the 
 68.4   district's unreimbursed special education cost per actual pupil 
 68.5   unit and (ii) (2) six percent for fiscal year 1996 and 5.7 
 68.6   percent for fiscal year 1997 and later years of the district's 
 68.7   general revenue per actual pupil unit, times 
 68.8      (2) the district's actual pupil units for that year. 
 68.9      Sec. 28.  Minnesota Statutes 1995 Supplement, section 
 68.10  124.574, subdivision 2f, is amended to read: 
 68.11     Subd. 2f.  [STATE TOTAL SECONDARY VOCATIONAL-DISABLED 
 68.12  REVENUE.] The state total secondary vocational-disabled revenue 
 68.13  for fiscal year 1996 equals $7,645,000 $8,697,000.  The state 
 68.14  total secondary vocational-disabled revenue for fiscal year 1997 
 68.15  equals $7,960,000 $9,017,000.  The state total secondary 
 68.16  vocational-disabled revenue for later fiscal years equals:  
 68.17     (1) the state total secondary vocational-disabled revenue 
 68.18  for the preceding fiscal year; times 
 68.19     (2) the program growth factor; times 
 68.20     (3) the ratio of the state total average daily membership 
 68.21  for the current fiscal year to the state total average daily 
 68.22  membership for the preceding fiscal year. 
 68.23     Sec. 29.  Minnesota Statutes 1995 Supplement, section 
 68.24  124.574, subdivision 2g, is amended to read: 
 68.25     Subd. 2g.  [SCHOOL DISTRICT SECONDARY VOCATIONAL-DISABLED 
 68.26  REVENUE.] (a) A school district's secondary vocational-disabled 
 68.27  revenue for fiscal year 1996 and later equals the state total 
 68.28  secondary vocational-disabled revenue, minus the amount 
 68.29  determined under paragraph (b), times the ratio of the 
 68.30  district's adjusted secondary vocational-disabled base revenue 
 68.31  to the state total adjusted secondary vocational-disabled base 
 68.32  revenue. 
 68.33     (b) Notwithstanding paragraph (a), if the secondary 
 68.34  vocational-disabled base revenue for a district equals zero and 
 68.35  no district residents were enrolled in secondary 
 68.36  vocational-disabled programs during the base year, the secondary 
 69.1   vocational-disabled revenue equals the amount computed according 
 69.2   to subdivision 2d using current year data. 
 69.3      Sec. 30.  Minnesota Statutes 1994, section 124.86, 
 69.4   subdivision 1, is amended to read: 
 69.5      Subdivision 1.  [AUTHORIZATION.] Each year each American 
 69.6   Indian-controlled tribal contract or grant school authorized by 
 69.7   the United States Code, title 25, section 450f, that is located 
 69.8   on a reservation within the state is eligible to receive tribal 
 69.9   contract or grant school aid subject to the requirements in this 
 69.10  subdivision. 
 69.11     (a) The school must plan, conduct, and administer an 
 69.12  education program that complies with the requirements of either 
 69.13  this chapter and chapters 120, 121, 122, 123, 124A, 124C, 125, 
 69.14  126, 129, and 268A or Code of Federal Regulations, title 25, 
 69.15  sections 31.0 to 45.80. 
 69.16     (b) The school must comply with all other state statutes 
 69.17  governing independent school districts or their equivalent in 
 69.18  the Code of Federal Regulations, title 25.  
 69.19     (c) The state tribal contract or grant school aid must be 
 69.20  used to supplement, and not to replace, the money for American 
 69.21  Indian education programs provided by the federal government. 
 69.22     Sec. 31.  Minnesota Statutes 1994, section 124.86, 
 69.23  subdivision 2, is amended to read: 
 69.24     Subd. 2.  [REVENUE AMOUNT.] An American Indian-controlled 
 69.25  tribal contract or grant school that is located on a reservation 
 69.26  within the state and that complies with the requirements in 
 69.27  subdivision 1 is eligible to receive tribal contract or grant 
 69.28  school aid.  The amount of aid is derived by: 
 69.29     (1) multiplying the formula allowance under section 
 69.30  124A.22, subdivision 2, times (a) the difference between (a) (i) 
 69.31  the actual pupil units as defined in section 124A.02, 
 69.32  subdivision 15, in average daily membership, excluding section 
 69.33  124.17, subdivision 2f, and (b) (ii) the number of pupils for 
 69.34  the current school year, weighted according to section 124.17, 
 69.35  subdivision 1, receiving benefits under section 123.933 or 
 69.36  123.935 or for which the school is receiving reimbursement under 
 70.1   section 126.23 plus (b) tribal contract AFDC pupil units; 
 70.2      (2) subtracting from the result in clause (1) the amount of 
 70.3   money allotted to the school by the federal government through 
 70.4   the Indian School Equalization Program of the Bureau of Indian 
 70.5   Affairs, according to Code of Federal Regulations, title 25, 
 70.6   part 39, subparts A to E, for the basic program as defined by 
 70.7   section 39.11, paragraph (b), for the base rate as applied to 
 70.8   kindergarten through twelfth grade, excluding small school 
 70.9   adjustments and additional weighting, but not money allotted 
 70.10  through subparts F to L for contingency funds, school board 
 70.11  training, student training, interim maintenance and minor 
 70.12  repair, interim administration cost, prekindergarten, and 
 70.13  operation and maintenance, and the amount of money that is 
 70.14  received according to section 126.23; 
 70.15     (3) dividing the result in clause (2) by the actual pupil 
 70.16  units in average daily membership, excluding section 124.17, 
 70.17  subdivision 2f clause (1); and 
 70.18     (4) multiplying the actual pupil units, including section 
 70.19  124.17, subdivision 2f, in average daily membership plus tribal 
 70.20  contract AFDC pupil units by the lesser of $1,500 or the result 
 70.21  in clause (3). 
 70.22     Sec. 32.  Minnesota Statutes 1994, section 124.86, is 
 70.23  amended by adding a subdivision to read: 
 70.24     Subd. 5.  [TRIBAL CONTRACT AFDC PUPIL UNITS.] For purposes 
 70.25  of this section, tribal contract AFDC pupil units means AFDC 
 70.26  pupil units as defined under section 124A.02, subdivision 16, 
 70.27  times the ratio of the formula allowance as defined under 
 70.28  section 124A.22, subdivision 2, minus $300 to the formula 
 70.29  allowance. 
 70.30     Sec. 33.  Minnesota Statutes 1994, section 124.86, is 
 70.31  amended by adding a subdivision to read: 
 70.32     Subd. 6.  [AFDC COUNT.] In computing the tribal contract 
 70.33  AFDC pupil units for fiscal years 1997, 1998, 1999, the number 
 70.34  of pupils enrolled from families receiving aid to families with 
 70.35  dependent children shall be those counted on October 1 of the 
 70.36  current school year.  The average daily membership used shall be 
 71.1   from the current school year. 
 71.2      Sec. 34.  Minnesota Statutes 1994, section 126.531, 
 71.3   subdivision 3, is amended to read: 
 71.4      Subd. 3.  Each committee shall be reimbursed for expenses 
 71.5   according to section 15.059, subdivision 6.  The state board 
 71.6   shall determine the membership terms and the duration of each 
 71.7   committee, which expire no later than June 30, 1997. 
 71.8      Sec. 35.  Minnesota Statutes 1995 Supplement, section 
 71.9   325G.203, subdivision 11, is amended to read: 
 71.10     Subd. 11.  [NONCONFORMITY.] "Nonconformity" means a 
 71.11  specific condition or generic defect or malfunction, or a defect 
 71.12  or condition that substantially impairs the use, value, or 
 71.13  safety of an assistive device, but does not include a condition 
 71.14  or defect that is the result of abuse or unauthorized 
 71.15  modification or alteration of the assistive device by the 
 71.16  consumer.  
 71.17     For those assistive devices regulated under section 
 71.18  153A.19, "nonconformity" does not include a condition of the 
 71.19  device that is the result of normal use which could be resolved 
 71.20  through fitting adjustments, cleaning, or proper care. 
 71.21     Sec. 36.  Minnesota Statutes 1994, section 466.01, 
 71.22  subdivision 1, is amended to read: 
 71.23     Subdivision 1.  [MUNICIPALITY.] For the purposes of 
 71.24  sections 466.01 to 466.15, "municipality" means any city, 
 71.25  whether organized under home rule charter or otherwise, any 
 71.26  county, town, public authority, public corporation, special 
 71.27  district, school district, however organized, county 
 71.28  agricultural society organized pursuant to chapter 38, joint 
 71.29  powers board or organization created under section 471.59 or 
 71.30  other statute, public library, regional public library system, 
 71.31  multicounty multitype library system, family services 
 71.32  collaborative established under section 121.8355, other 
 71.33  political subdivision, or community action agency. 
 71.34     Sec. 37.  Minnesota Statutes 1994, section 471.59, 
 71.35  subdivision 11, is amended to read: 
 71.36     Subd. 11.  [JOINT POWERS BOARD.] (a) Two or more 
 72.1   governmental units, through action of their governing bodies, by 
 72.2   adoption of a joint powers agreement that complies with the 
 72.3   provisions of subdivisions 1 to 5, may establish a joint board 
 72.4   to issue bonds or obligations pursuant to under any law by which 
 72.5   any of the governmental units establishing the joint board may 
 72.6   independently issue bonds or obligations and may use the 
 72.7   proceeds of the bonds or obligations to carry out the purposes 
 72.8   of the law under which the bonds or obligations are issued.  A 
 72.9   joint board created pursuant to established under this section 
 72.10  may issue obligations and other forms of indebtedness 
 72.11  only pursuant to in accordance with express authority granted by 
 72.12  the action of the governing bodies of the governmental 
 72.13  units which that established the joint board.  Except as 
 72.14  provided in paragraph (b), the joint board established pursuant 
 72.15  to under this subdivision shall must be composed solely of 
 72.16  members of the governing bodies of the governmental unit which 
 72.17  that established the joint board, and the.  A joint 
 72.18  board established under this subdivision may not pledge the full 
 72.19  faith and credit or taxing power of any of the governmental 
 72.20  units which that established the joint board.  The obligations 
 72.21  or other forms of indebtedness shall must be obligations of the 
 72.22  joint board issued on behalf of the governmental units creating 
 72.23  the joint board.  The obligations or other forms of indebtedness 
 72.24  shall must be issued in the same manner and subject to the same 
 72.25  conditions and limitations which that would apply if the 
 72.26  obligations were issued or indebtedness incurred by one of the 
 72.27  governmental units which that established the joint board, 
 72.28  provided that any reference to a governmental unit in the 
 72.29  statute, law, or charter provision authorizing the issuance of 
 72.30  the bonds or the incurring of the indebtedness shall be is 
 72.31  considered a reference to the joint board. 
 72.32     (b) Notwithstanding paragraph (a), two or more governmental 
 72.33  units may establish a joint board to establish and govern a 
 72.34  family services collaborative under section 121.8355.  The 
 72.35  membership of a board established under this paragraph, in 
 72.36  addition to members of the governing bodies of the participating 
 73.1   units, must include the representation required by section 
 73.2   121.8355, subdivision 1, paragraph (a), selected in accordance 
 73.3   with section 121.8355, subdivision 1, paragraph (c). 
 73.4      Sec. 38.  Laws 1995, First Special Session chapter 3, 
 73.5   article 15, section 26, subdivision 7, is amended to read: 
 73.6      Subd. 7.  [TARGETED NEEDS AID.] For targeted needs aid: 
 73.7        $37,682,000    .....     1996 
 73.8        $39,591,000 
 73.9        $41,597,000    .....     1997 
 73.10       $41,614,000 
 73.11     (a) Of the 1996 amount, $945,000 is for 1995 LEP aid and 
 73.12  $4,359,000 $6,268,000 is for 1996 LEP aid.  Of the 1996 amount, 
 73.13  $1,979,000 is for 1995 AOM aid and $11,555,000 is for 1996 AOM 
 73.14  aid.  Of the 1996 amount, $18,844,000 is for 1996 integration 
 73.15  aid. 
 73.16     (b) Of the 1997 amount, $1,089,000 $1,106,000 is for 1996 
 73.17  LEP aid and $7,913,000 is for 1997 LEP aid.  Of the 1997 amount, 
 73.18  $2,039,000 is for 1996 AOM aid and $11,712,000 is for 1997 AOM 
 73.19  aid.  Of the 1997 amount, $18,844,000 is for 1997 integration 
 73.20  aid. 
 73.21     (c) As a condition of receiving a grant, each district must 
 73.22  continue to report its costs according to the uniform financial 
 73.23  accounting and reporting system.  As a further condition of 
 73.24  receiving a grant, each district must submit a report to the 
 73.25  chairs of the education committees of the legislature about the 
 73.26  actual expenditures it made for integration using the grant 
 73.27  money including achievement results.  These grants may be used 
 73.28  to transport students attending a nonresident district under 
 73.29  Minnesota Statutes, section 120.062, to the border of the 
 73.30  resident district.  A district may allocate a part of the grant 
 73.31  to the transportation fund for this purpose. 
 73.32     Sec. 39.  Laws 1995, First Special Session chapter 3, 
 73.33  article 15, section 26, subdivision 8, is amended to read: 
 73.34     Subd. 8.  [SECONDARY VOCATIONAL; STUDENTS WITH 
 73.35  DISABILITIES.] For aid for secondary vocational education for 
 73.36  pupils with disabilities according to Minnesota Statutes, 
 73.37  section 124.574: 
 74.1        $4,489,000 $5,026,000    .....     1996 
 74.2        $5,424,000 $6,147,000    .....     1997 
 74.3      The 1996 appropriation includes $590,000 for 1995 and 
 74.4   $3,899,000 $4,436,000 for 1996.  
 74.5      The 1997 appropriation includes $688,000 $782,000 for 1996 
 74.6   and $4,736,000 $5,365,000 for 1997.  
 74.7      Sec. 40.  [OSSEO LEVY.] 
 74.8      For levies payable in 1997 only, independent school 
 74.9   district No. 279, Osseo, may levy a tax in an amount not to 
 74.10  exceed $800,000.  The proceeds of this levy must be used to 
 74.11  provide instructional services for at-risk children. 
 74.12     Sec. 41.  [APPROPRIATIONS.] 
 74.13     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 74.14  LEARNING.] The sums indicated in this section are appropriated 
 74.15  from the general fund to the department of children, family, and 
 74.16  learning for the fiscal year designated. 
 74.17     Subd. 2.  [TRIBAL CONTRACT AFDC PUPIL UNITS.] For revenue 
 74.18  for tribal contract AFDC pupil units under section 31 and 
 74.19  section 32: 
 74.20       $1,634,000    ......     1997 
 74.21     The appropriation is 85 percent of the entitlement for 
 74.22  fiscal year 1997. 
 74.23     Sec. 42.  [EFFECTIVE DATE.] 
 74.24     Sections 13 to 16, 26 and 29 are effective July 1, 1995. 
 74.25     Sections 23 and 24 are effective for fiscal year 1996. 
 74.26                             ARTICLE 4 
 74.27                         COMMUNITY PROGRAMS 
 74.28     Section 1.  [121.615] [MINNESOTA SCHOOL-TO-WORK STUDENT 
 74.29  ORGANIZATION.] 
 74.30     Subdivision 1.  [CITATION.] This section may be cited as 
 74.31  the "Minnesota school-to-work student organization act." 
 74.32     Subd. 2.  [CREATION OF FOUNDATION.] There is created the 
 74.33  Minnesota school-to-work student organization foundation.  The 
 74.34  purpose of the foundation shall be to promote vocational student 
 74.35  organizations and applied leadership opportunities in Minnesota 
 74.36  public schools through public-private partnerships.  The 
 75.1   foundation shall be a nonprofit organization.  The board of 
 75.2   directors of the foundation and activities of the foundation are 
 75.3   under the direction of the department of children, families, and 
 75.4   learning. 
 75.5      Subd. 3.  [BOARD OF DIRECTORS.] The board of directors of 
 75.6   the school-to-work student organization foundation shall consist 
 75.7   of: 
 75.8      (1) chairs or designees from the board of directors of FFA 
 75.9   (formerly Future Farmers of America), Future Leaders of 
 75.10  America/Future Homemakers of America, post-secondary agriculture 
 75.11  students, home economics related occupations, Health Occupations 
 75.12  Student Association, Distributive Education Clubs of America, 
 75.13  Delta Upsilon Chi, Secondary Vocational Industrial Clubs of 
 75.14  America, Post-secondary Vocational Industrial Clubs of America, 
 75.15  Secondary Business Professionals of America, and Post-secondary 
 75.16  Business Professionals of America; 
 75.17     (2) four members from business and industry appointed by 
 75.18  the governor; and 
 75.19     (3) five students representing diverse vocational areas, 
 75.20  three of whom are appointed by the commissioner of the 
 75.21  department of children, families, and learning and two of whom 
 75.22  are appointed by the chancellor of the Minnesota state colleges 
 75.23  and universities with the advice of the executive councils of 
 75.24  each vocational education student organization. 
 75.25     Executive directors of vocational education student 
 75.26  organizations are ex officio, nonvoting members of the board. 
 75.27     Subd. 4.  [FOUNDATION PROGRAMS.] The foundation shall 
 75.28  advance applied leadership and intracurricular vocational 
 75.29  learning experiences for students.  These may include, but are 
 75.30  not limited to: 
 75.31     (1) recognition programs and awards for students 
 75.32  demonstrating excellence in applied leadership; 
 75.33     (2) summer programs for student leadership, career 
 75.34  development, applied academics, and mentorship programs with 
 75.35  business and industry; 
 75.36     (3) recognition programs for teachers, administrators, and 
 76.1   others who make outstanding contributions to school-to-work 
 76.2   programs; 
 76.3      (4) outreach programs to increase the involvement of urban 
 76.4   and suburban students; 
 76.5      (5) organized challenges requiring cooperation and 
 76.6   competition for secondary and post-secondary students; 
 76.7      (6) assistance and training to community teams to increase 
 76.8   career awareness and empowerment of youth as community leaders; 
 76.9   and 
 76.10     (7) assessment and activities in order to plan for and 
 76.11  implement continuous improvement.  
 76.12     To the extent possible, the foundation shall make these 
 76.13  programs available to students in all parts of the state. 
 76.14     Subd. 5.  [POWERS AND DUTIES.] The foundation may: 
 76.15     (1) identify and plan common goals and priorities for the 
 76.16  various school-to-work student organizations in Minnesota; 
 76.17     (2) publish brochures or booklets relating to the purposes 
 76.18  of the foundation and collect reasonable fees for the 
 76.19  publications; 
 76.20     (3) seek and receive public and private money, grants, and 
 76.21  in-kind services and goods from nonstate sources for the 
 76.22  purposes of the foundation; 
 76.23     (4) contract with consultants on behalf of the 
 76.24  school-to-work student organizations; and 
 76.25     (5) plan, implement, and expend money for awards and other 
 76.26  forms of recognition for school-to-work student activities. 
 76.27     Subd. 6.  [CONTRACTS.] The foundation board of directors 
 76.28  shall review and approve foundation personnel and programming 
 76.29  contracts. 
 76.30     Subd. 7.  [FOUNDATION STAFF.] The commissioner of the 
 76.31  department of children, families, and learning shall appoint the 
 76.32  executive director of the foundation and, as necessary, other 
 76.33  staff who shall perform duties and have responsibilities solely 
 76.34  related to the foundation.  The employees appointed are not 
 76.35  state employees under chapter 43A, but are covered under section 
 76.36  3.736.  The employees may participate in the state health and 
 77.1   state insurance plans for employees in unclassified service.  
 77.2      The commissioner shall appoint from the office of lifework 
 77.3   development a liaison to the foundation board. 
 77.4      Subd. 8.  [PUBLIC FUNDING.] The commissioner of the 
 77.5   department of children, families, and learning shall identify 
 77.6   and secure appropriate sources of state and federal funding from 
 77.7   various state agencies, including, but not limited to, Minnesota 
 77.8   state colleges and universities, for the operation and 
 77.9   development of school-to-work student organizations. 
 77.10     Subd. 9.  [PRIVATE FUNDING.] The foundation shall seek 
 77.11  private resources to supplement the allocated state and federal 
 77.12  money.  Individuals, businesses, and other organizations may 
 77.13  contribute to the foundation in any manner specified by the 
 77.14  board of directors. 
 77.15     Subd. 10.  [REPORT.] The foundation shall submit an annual 
 77.16  report and assessment to the office of lifework development and 
 77.17  to the board of trustees of the Minnesota state colleges and 
 77.18  universities. 
 77.19     Subd. 11.  [APPROPRIATION.] There is annually appropriated 
 77.20  to the foundation all the amounts received by the foundation 
 77.21  pursuant to this section. 
 77.22     Subd. 12.  [STUDENT ORGANIZATIONS.] Individual boards of 
 77.23  vocational education student organizations shall continue their 
 77.24  operations in accordance with section 126.151 and applicable 
 77.25  federal law. 
 77.26     Sec. 2.  Minnesota Statutes 1994, section 121.8355, 
 77.27  subdivision 1, is amended to read: 
 77.28     Subdivision 1.  [ESTABLISHMENT.] (a) In order to qualify as 
 77.29  a family services collaborative, a minimum of one school 
 77.30  district, one county, and one public health entity, and one 
 77.31  community action entity must agree in writing to provide 
 77.32  coordinated family services and commit resources to an 
 77.33  integrated fund.  Collaboratives are expected to have broad 
 77.34  community representation, which may include other local 
 77.35  providers, including additional school districts, counties, and 
 77.36  public health entities, other municipalities, public libraries, 
 78.1   existing culturally specific community organizations, local 
 78.2   health organizations, private and nonprofit service providers, 
 78.3   child care providers, local foundations, community-based service 
 78.4   groups, businesses, local transit authorities or other 
 78.5   transportation providers, community action agencies under 
 78.6   section 268.53, senior citizen volunteer organizations, and 
 78.7   sectarian organizations that provide nonsectarian services. 
 78.8      (b) Community-based collaboratives composed of 
 78.9   representatives of schools, local businesses, local units of 
 78.10  government, parents, students, clergy, health and social 
 78.11  services providers, youth service organizations, and existing 
 78.12  culturally specific community organizations may plan and develop 
 78.13  services for children and youth.  A community-based 
 78.14  collaborative must agree to collaborate with county, school 
 78.15  district, community action and public health entities.  Their 
 78.16  services may include opportunities for children or youth to 
 78.17  improve child health and development, reduce barriers to 
 78.18  adequate school performance, improve family functioning, provide 
 78.19  community service, enhance self esteem, and develop general 
 78.20  employment skills. 
 78.21     Sec. 3.  Minnesota Statutes 1994, section 124.2711, 
 78.22  subdivision 6, is amended to read: 
 78.23     Subd. 6.  [RESERVE ACCOUNT.] Early childhood family 
 78.24  education revenue, which includes aids, levies, fees, grants, 
 78.25  and all other revenues received by the school district for early 
 78.26  childhood family education programs, must be maintained in a 
 78.27  reserve account within the community service fund.  
 78.28     Sec. 4.  Minnesota Statutes 1994, section 124.2713, 
 78.29  subdivision 10, is amended to read: 
 78.30     Subd. 10.  [RESERVE ACCOUNT.] Community education revenue, 
 78.31  which includes aids, levies, fees, grants, and all other 
 78.32  revenues received by the school district for community education 
 78.33  programs, must be maintained in a reserve account within the 
 78.34  community service fund. 
 78.35     Sec. 5.  Minnesota Statutes 1994, section 124.276, is 
 78.36  amended to read: 
 79.1      124.276 [CAREER TEACHER FAMILY CONNECTIONS AID.] 
 79.2      Subdivision 1.  [ELIGIBILITY.] A school district that has a 
 79.3   career teacher family connections program, according to sections 
 79.4   125.70 to 125.705, for one or more of its teachers is eligible 
 79.5   for aid to extend the teaching contract of a career family 
 79.6   connections teacher.  
 79.7      Subd. 2.  [STATE SHARE OF EXTENDED CONTRACT.] The state 
 79.8   shall pay two-thirds of the portion of the teaching contract, 
 79.9   excluding fringe benefits, that is in addition to the standard 
 79.10  teaching contract of the district.  The district shall pay the 
 79.11  remaining portion.  
 79.12     Subd. 3.  [COMMISSIONER APPROVAL.] The commissioner may 
 79.13  approve plans and applications for districts throughout the 
 79.14  state for career teacher family connections aid.  Application 
 79.15  procedures and deadlines shall be established by the 
 79.16  commissioner.  
 79.17     Subd. 4.  [USE OF AID.] Career teacher family connections 
 79.18  aid may be used only to implement a career teacher family 
 79.19  connections program.  
 79.20     Sec. 6.  Minnesota Statutes 1994, section 124A.291, is 
 79.21  amended to read: 
 79.22     124A.291 [RESERVED REVENUE FOR CERTAIN TEACHER PROGRAM.] 
 79.23     A district that has a career teacher family connections 
 79.24  program or a mentor-teacher program may reserve part of the 
 79.25  basic revenue under section 124A.22, subdivision 2, for the 
 79.26  district's share, of the portion of the teaching contract that 
 79.27  is in addition to the standard teaching contract of the district.
 79.28     Sec. 7.  Minnesota Statutes 1994, section 124C.45, is 
 79.29  amended by adding a subdivision to read: 
 79.30     Subd. 1a.  [RESERVE REVENUE.] Each school district that is 
 79.31  a member of an area learning center must reserve revenue in an 
 79.32  amount equal to at least 90 percent of the basic and district 
 79.33  average compensatory revenue generated for that district by each 
 79.34  student attending an area learning center program under this 
 79.35  section.  The amount of reserved revenue under this subdivision 
 79.36  may only be spent on program costs associated with the area 
 80.1   learning center. 
 80.2      Sec. 8.  Minnesota Statutes 1994, section 125.70, is 
 80.3   amended to read: 
 80.4      125.70 [CITATION.] 
 80.5      Sections 125.701 to 125.705 may be cited as the "Minnesota 
 80.6   career teacher family connections act."  
 80.7      Sec. 9.  Minnesota Statutes 1994, section 125.701, is 
 80.8   amended to read: 
 80.9      125.701 [PURPOSE OF THE CAREER TEACHER FAMILY CONNECTIONS 
 80.10  ACT.] 
 80.11     The legislature recognizes the unique and lifelong learning 
 80.12  and development process of all human beings.  The legislature is 
 80.13  committed to the goal of maximizing the individual growth 
 80.14  potential of all learners.  The purposes of the career teacher 
 80.15  family connections act are:  
 80.16     (1) to offer career teacher family connections programs 
 80.17  which emphasize learning and development based on learner 
 80.18  outcomes; 
 80.19     (2) to recognize and utilize the unique skills that 
 80.20  teachers, students, family, and the community have in both the 
 80.21  teaching process and the learning and development process; and 
 80.22     (3) to provide an opportunity for maximum use of teachers, 
 80.23  principals, and counselors.  
 80.24     Sec. 10.  Minnesota Statutes 1994, section 125.703, is 
 80.25  amended to read: 
 80.26     125.703 [ADVISORY COUNCIL.] 
 80.27     The school board of a district providing a career teacher 
 80.28  family connections program shall appoint an advisory council.  
 80.29  Council members shall be selected from the school attendance 
 80.30  area in which programs are provided.  Members of the council may 
 80.31  include students, teachers, principals, administrators and 
 80.32  community members.  A majority of the members shall be parents 
 80.33  with children participating in the local program.  The local 
 80.34  advisory council shall advise the school board in the 
 80.35  development, coordination, supervision, and review of the career 
 80.36  teacher program.  The council shall meet at least two times each 
 81.1   year with any established community education advisory council 
 81.2   in the district.  Members of the council may be members of the 
 81.3   community education advisory council.  The council shall report 
 81.4   to the school board. 
 81.5      Sec. 11.  Minnesota Statutes 1994, section 125.704, is 
 81.6   amended to read: 
 81.7      125.704 [CAREER TEACHER FAMILY CONNECTIONS PROGRAM 
 81.8   COMPONENTS.] 
 81.9      Subdivision 1.  [MANDATORY COMPONENTS.] A career 
 81.10  teacher family connections program shall include:  
 81.11     (1) participation by a designated individual as a career 
 81.12  teacher, principal-teacher, or counselor teacher; 
 81.13     (2) an emphasis on each individual child's unique learning 
 81.14  and development needs; 
 81.15     (3) procedures to give the career teacher a major 
 81.16  responsibility for leadership of the instructional and 
 81.17  noninstructional activities of each child beginning with early 
 81.18  childhood family education; 
 81.19     (4) procedures to involve parents in the learning and 
 81.20  development experiences of their children; 
 81.21     (5) procedures to implement outcome based education by 
 81.22  focusing on the needs of the learner; 
 81.23     (6) procedures to coordinate and integrate the 
 81.24  instructional program with all community education programs; 
 81.25     (7) procedures to concentrate career teacher programs at 
 81.26  sites that provide early childhood family education and 
 81.27  subsequent learning and development programs; and 
 81.28     (8) procedures for the district to fund the program.  
 81.29     Subd. 2.  [OPTIONAL COMPONENTS.] A career teacher family 
 81.30  connections program may include:  
 81.31     (1) efforts to improve curricula strategies, instructional 
 81.32  strategies, and use of materials that respond to the individual 
 81.33  educational needs and learning styles of each pupil in order to 
 81.34  enable each pupil to make continuous progress and to learn at a 
 81.35  rate appropriate to that pupil's abilities; 
 81.36     (2) efforts to develop student abilities in basic skills; 
 82.1   applied learning skills; and, when appropriate, arts; 
 82.2   humanities; physical, natural, and social sciences; 
 82.3   multicultural education; physical, emotional, and mental health; 
 82.4   consumer economics; and career education; 
 82.5      (3) use of community resources and communications media to 
 82.6   pursue learning and development opportunities for pupils; 
 82.7      (4) staff development for teachers and other school 
 82.8   personnel; 
 82.9      (5) improvements to the learning and development 
 82.10  environment, including use of the community in general, to 
 82.11  enhance the learning and development process; 
 82.12     (6) cooperative efforts with other agencies involved with 
 82.13  human services or child development and development of 
 82.14  alternative community based learning and development 
 82.15  experiences; 
 82.16     (7) post-secondary education components for pupils who are 
 82.17  able to accelerate or programs for pupils with special abilities 
 82.18  and interests who are given advanced learning and development 
 82.19  opportunities within existing programs; 
 82.20     (8) use of volunteers in the learning and development 
 82.21  program; 
 82.22     (9) flexible attendance schedules for pupils; 
 82.23     (10) adult education component; 
 82.24     (11) coordination with early childhood family education and 
 82.25  community education programs; 
 82.26     (12) variable student/faculty ratios for special education 
 82.27  students to provide for special programming; 
 82.28     (13) inclusion of nonpublic pupils as part of the ratio in 
 82.29  the career teacher, principal-teacher, and counselor teacher 
 82.30  component; 
 82.31     (14) application of educational research findings; 
 82.32     (15) summer learning and development experiences for 
 82.33  students as recommended by the career teacher, 
 82.34  principal-teacher, and counselor teacher; 
 82.35     (16) use of education assistants, teacher aides, or 
 82.36  paraprofessionals as part of the career teacher program; 
 83.1      (17) establishment of alternative criteria for high school 
 83.2   graduation; and 
 83.3      (18) variable age and learning size groupings of students. 
 83.4      Sec. 12.  Minnesota Statutes 1994, section 125.705, 
 83.5   subdivision 1, is amended to read: 
 83.6      Subdivision 1.  [STATUS.] A career teacher family 
 83.7   connections program may include a career teacher, 
 83.8   principal-teacher, and counselor teacher component.  The career 
 83.9   teacher, principal-teacher, and counselor teacher shall not be 
 83.10  the exclusive teacher for students assigned to them but shall 
 83.11  serve as a primary teacher and perform the function of 
 83.12  developing and implementing a student's overall learning and 
 83.13  development program.  The career teacher, principal-teacher, and 
 83.14  counselor teacher may be responsible for regular assignments as 
 83.15  well as learning and development programs for other assigned 
 83.16  students.  
 83.17     Sec. 13.  Minnesota Statutes 1994, section 126.22, 
 83.18  subdivision 1, is amended to read: 
 83.19     Subdivision 1.  [PURPOSE.] The legislature finds that it is 
 83.20  critical for persons to obtain at least a high school education 
 83.21  to function in today's society to provide options for children 
 83.22  to succeed in school.  Therefore, the purpose of this section is 
 83.23  to provide incentives for and encourage all Minnesota students 
 83.24  who have experienced or are experiencing difficulty in the 
 83.25  traditional education system to enroll in alternative programs 
 83.26  in order to complete their high school education. 
 83.27     Sec. 14.  Minnesota Statutes 1995 Supplement, section 
 83.28  126.22, subdivision 2, is amended to read: 
 83.29     Subd. 2.  [ELIGIBLE PUPILS.] The following pupils are 
 83.30  eligible to participate in the high school graduation incentives 
 83.31  education options program:  
 83.32     (a) any pupil who is between the ages of 12 and under the 
 83.33  age of 21, or who is an elementary pupil, and in either case, 
 83.34  who:  
 83.35     (1) is at least two grade levels performs substantially 
 83.36  below the performance level for pupils of the same age in a 
 84.1   locally determined achievement test; or 
 84.2      (2) is at least one year behind in satisfactorily 
 84.3   completing coursework or obtaining credits for graduation; or 
 84.4      (3) is pregnant or is a parent; or 
 84.5      (4) has been assessed as chemically dependent; or 
 84.6      (5) has been excluded or expelled according to sections 
 84.7   127.26 to 127.39; or 
 84.8      (6) has been referred by a school district for enrollment 
 84.9   in an eligible program or a program pursuant to section 126.23; 
 84.10  or 
 84.11     (7) is a victim of physical or sexual abuse; or 
 84.12     (8) has experienced mental health problems; or 
 84.13     (9) has experienced homelessness sometime within six months 
 84.14  before requesting a transfer to an eligible program; or 
 84.15     (10) speaks English as a second language or has limited 
 84.16  English proficiency; or 
 84.17     (b) any person who is at least 21 years of age and who:  
 84.18     (1) has received fewer than 14 years of public or nonpublic 
 84.19  education, beginning at age 5; 
 84.20     (2) has not completed the requirements for a high school 
 84.21  diploma; and 
 84.22     (3) at the time of application, (i) is eligible for 
 84.23  reemployment insurance benefits or has exhausted the benefits, 
 84.24  (ii) is eligible for, or is receiving income maintenance and 
 84.25  support services, as defined in section 268.0111, subdivision 5, 
 84.26  or (iii) is eligible for services under the displaced homemaker 
 84.27  program, state wage-subsidy program, or any programs under the 
 84.28  federal Jobs Training Partnership Act or its successor. 
 84.29     Sec. 15.  Minnesota Statutes 1995 Supplement, section 
 84.30  126.22, subdivision 3, is amended to read: 
 84.31     Subd. 3.  [ELIGIBLE PROGRAMS.] (a) A pupil who is eligible 
 84.32  according to subdivision 2 may enroll in area learning centers 
 84.33  under sections 124C.45 to 124C.48, or according to section 
 84.34  121.11, subdivision 12. 
 84.35     (b) A pupil who is eligible according to subdivision 2 and 
 84.36  who is between the ages of 16 and 21 may enroll in 
 85.1   post-secondary courses under section 123.3514. 
 85.2      (c) A pupil who is eligible under subdivision 2, may enroll 
 85.3   in any public elementary or secondary education program.  
 85.4   However, a person who is eligible according to subdivision 2, 
 85.5   clause (b), or a student who has been expelled in the current 
 85.6   school year for initiating and being willfully engaged in 
 85.7   violent behavior, may enroll only if the school board has 
 85.8   adopted a resolution approving the enrollment. 
 85.9      (d) A pupil who is eligible under subdivision 2, may enroll 
 85.10  part time, if 16 years of age or older, or full time in any 
 85.11  nonprofit, nonpublic, nonsectarian school that has contracted 
 85.12  with the serving school district to provide educational services.
 85.13     (e) A pupil who is between the ages of 16 and 21 may enroll 
 85.14  in any adult basic education programs approved under section 
 85.15  124.26 and operated under the community education program 
 85.16  contained in section 121.88. 
 85.17     Sec. 16.  Minnesota Statutes 1995 Supplement, section 
 85.18  126.22, subdivision 8, is amended to read: 
 85.19     Subd. 8.  [ENROLLMENT VERIFICATION.] (a) For a pupil 
 85.20  attending an eligible program full time under subdivision 3, 
 85.21  paragraph (d), the department of children, families, and 
 85.22  learning shall pay 88 90 percent of the basic and district 
 85.23  average compensatory revenue of the district to the eligible 
 85.24  program and 12 ten percent of the basic and district average 
 85.25  compensatory revenue to the resident district within 30 days 
 85.26  after the eligible program verifies enrollment using the form 
 85.27  provided by the department.  For a pupil attending an eligible 
 85.28  program part time, basic revenue shall be reduced 
 85.29  proportionately, according to the amount of time the pupil 
 85.30  attends the program, and the payments to the eligible program 
 85.31  and the resident district shall be reduced accordingly.  A pupil 
 85.32  for whom payment is made according to this section may not be 
 85.33  counted by any district for any purpose other than computation 
 85.34  of basic computing basic and district average compensatory 
 85.35  revenue, according to section 124A.22, subdivision 2.  If 
 85.36  payment is made for a pupil under this subdivision, a school 
 86.1   district shall not reimburse a program under section 126.23 for 
 86.2   the same pupil. 
 86.3      (b) The department of children, families, and learning 
 86.4   shall pay up to 100 percent of the basic and district average 
 86.5   compensatory revenue to the eligible program if there is an 
 86.6   agreement to that effect between the school district and the 
 86.7   eligible program. 
 86.8      Sec. 17.  Minnesota Statutes 1995 Supplement, section 
 86.9   126.23, is amended to read: 
 86.10     126.23 [AID FOR PRIVATE CONTRACTED ALTERNATIVE PROGRAMS.] 
 86.11     Subdivision 1.  If a pupil enrolls in an alternative 
 86.12  program, eligible under section 126.22, subdivision 3, paragraph 
 86.13  (d), or subdivision 3a, operated by a private organization that 
 86.14  has contracted with a school district to provide educational 
 86.15  services for eligible pupils under section 126.22, subdivision 
 86.16  2, the district contracting with the private organization must 
 86.17  reimburse the provider an amount equal to at least 88 90 percent 
 86.18  of the basic and compensatory revenue of the district for each 
 86.19  pupil attending the program full time.  For a pupil attending 
 86.20  the program part time, basic and compensatory revenue paid to 
 86.21  the program shall be reduced proportionately, according to the 
 86.22  amount of time the pupil attends the program, and basic and 
 86.23  compensatory revenue paid to the district shall be reduced 
 86.24  accordingly.  Pupils for whom a district provides reimbursement 
 86.25  may not be counted by the district for any purpose other 
 86.26  than computation of basic basic and compensatory revenue, 
 86.27  according to section 124A.22, subdivision 2.  If payment is made 
 86.28  to a district or program for a pupil under this section, the 
 86.29  department of children, families, and learning shall not make a 
 86.30  payment for the same pupil under section 126.22, subdivision 8. 
 86.31     Subd. 2.  [RESERVE ACCOUNT.] During the term of the 
 86.32  contract to provide educational services under subdivision 1, 
 86.33  all state aid under subdivision 1 accrues to the account 
 86.34  assigned to the alternative program site and is reserved for 
 86.35  that site. 
 86.36     Sec. 18.  Minnesota Statutes 1995 Supplement, section 
 87.1   128B.03, subdivision 3a, is amended to read: 
 87.2      Subd. 3a.  [STATE REVENUES.] The state shall pay to the 
 87.3   council for the support of the school all aids, revenues, and 
 87.4   grants available to a school district as though the school were 
 87.5   a school district.  The aids, revenues, and grants include, but 
 87.6   are not limited to, the following: 
 87.7      (1) general education revenue, as defined in section 
 87.8   124A.22, subdivision 1, including at least compensatory revenue; 
 87.9      (2) transportation revenue; 
 87.10     (3) capital expenditure facilities revenue; 
 87.11     (4) capital expenditure equipment revenue; 
 87.12     (5) special education revenue; 
 87.13     (6) limited English proficiency aid; 
 87.14     (7) career teacher family connections aid; 
 87.15     (8) assurance of mastery revenue; 
 87.16     (9) school lunch revenue; 
 87.17     (10) school milk revenue; 
 87.18     (11) health and safety revenue; 
 87.19     (12) Indian language and culture grants; 
 87.20     (13) arts planning grants; and 
 87.21     (14) all other aids, revenues, or grants available to a 
 87.22  school district. 
 87.23     If there are eligibility requirements for an aid, revenue, 
 87.24  or grant, the requirements shall be met in order to obtain the 
 87.25  aid, revenue, or grant, except that a requirement to levy shall 
 87.26  be waived.  To compute the amount of aid, revenue, or grant 
 87.27  requiring a levy, the amount of the levy shall be zero. 
 87.28     If a school district obtains revenue from the proceeds of a 
 87.29  levy, the council shall be deemed to have levied and the state 
 87.30  shall pay aid equal to the amount that would have been levied.  
 87.31  The amount shall be approved by the commissioner of children, 
 87.32  families, and learning. 
 87.33     The proceeds of any aid, grant, or revenue shall be used 
 87.34  only as provided in the applicable statute. 
 87.35     Sec. 19.  Laws 1995, First Special Session chapter 3, 
 87.36  article 4, section 29, subdivision 10, is amended to read: 
 88.1      Subd. 10.  [FAMILY COLLABORATIVES.] For family 
 88.2   collaboratives: 
 88.3        $6,000,000      .....     1996
 88.4        $6,000,000      .....     1997
 88.5      Of the appropriation, $150,000 each year is for grants 
 88.6   targeted to assist in providing collaborative children's library 
 88.7   service programs.  To be eligible, a family collaborative grant 
 88.8   recipient must collaborate with at least one public library and 
 88.9   one children's or family organization.  The public library must 
 88.10  involve the regional public library system and multitype library 
 88.11  system to which it belongs in the planning and provide for an 
 88.12  evaluation of the program. 
 88.13     No more than 2.5 percent of the appropriation is available 
 88.14  to the state to administer and evaluate the grant program. 
 88.15     Any balance in the first year does not cancel but is 
 88.16  available in the second year.  These sums are available until 
 88.17  June 30, 1998. 
 88.18     Sec. 20.  Laws 1995, First Special Session chapter 3, 
 88.19  article 8, section 25, subdivision 18, is amended to read: 
 88.20     Subd. 18.  [CAREER TEACHER FAMILY CONNECTIONS AID.] For 
 88.21  career teacher family connections aid according to Minnesota 
 88.22  Statutes, section 124.276: 
 88.23       $125,000     .....     1996 
 88.24       $125,000     .....     1997 
 88.25       $225,000
 88.26     Any balance in the first year does not cancel but is 
 88.27  available in the second year. 
 88.28     Notwithstanding Minnesota Statutes, section 124.276, 
 88.29  subdivision 2, the aid may be used for the increased district 
 88.30  contribution to the teachers' retirement association and to FICA 
 88.31  resulting from the portion of the teaching contract that is in 
 88.32  addition to the standard teaching contract of the district. 
 88.33     Sec. 21.  [ADULT BASIC EDUCATION STUDY.] 
 88.34     The legislature finds that increased adult literacy and 
 88.35  access to educational opportunities are necessary for 
 88.36  undereducated adults to more fully participate in their families 
 89.1   and to become self-sufficient contributors to their communities 
 89.2   and the Minnesota economy.  There is a growing recognition that 
 89.3   basic education provides the opportunity for adults to learn the 
 89.4   skills necessary for fuller participation.  To examine the 
 89.5   current and future needs for adult basic education and the 
 89.6   resources necessary to meet these identified needs, the adult 
 89.7   basic education team of the department of children, families, 
 89.8   and learning shall conduct or contract for a study of adult 
 89.9   basic education.  The study, at a minimum, must include the 
 89.10  following: 
 89.11     (1) an examination of the adult basic education formula 
 89.12  under section 124.26; 
 89.13     (2) the percentage of full adult basic education formula 
 89.14  funding that is prorated and the impact of proration on 
 89.15  programming and service delivery; 
 89.16     (3) the hold harmless provision based on an adult basic 
 89.17  education project's 1991-1992 state aid, and the impact on 
 89.18  program delivery; 
 89.19     (4) the distribution of funds under the adult basic 
 89.20  education formula and how closely it matches the need for adult 
 89.21  basic education throughout the state; 
 89.22     (5) an inventory of federal, state and local projects and 
 89.23  programs with skills and education programming for adults; and 
 89.24     (6) an examination of the changing role for adult basic 
 89.25  education with potential changes in income maintenance programs 
 89.26  and other aspects of welfare reform. 
 89.27     The commissioner shall report the findings of the study to 
 89.28  the chairs of the education committees of the legislature by 
 89.29  December 1, 1996.  The report must contain recommendations for 
 89.30  funding of adult basic education and for consolidation or 
 89.31  coordination of adult education programming. 
 89.32     Sec. 22.  [SPECIAL COMMUNITY SERVICE LEVY.] 
 89.33     In addition to other levies it is authorized to make each 
 89.34  year, independent school district No. 2190, Yellow Medicine 
 89.35  East, may levy on the property in the former school district No. 
 89.36  892, Clarkfield, for the costs of operating the district-owned 
 90.1   swimming pool in Clarkfield.  The proceeds of this levy must be 
 90.2   deposited in the district's community service fund.  The levy 
 90.3   may not exceed the net actual cost operation of the pool in the 
 90.4   previous year.  Net actual costs are defined as operating costs 
 90.5   less operating revenues. 
 90.6      Sec. 23.  [APPROPRIATIONS.] 
 90.7      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 90.8   LEARNING.] The sums indicated in this section are appropriated 
 90.9   from the general fund to the department of children, families, 
 90.10  and learning for the fiscal year designated. 
 90.11     Subd. 2.  [AID FOR CONTRACTED ALTERNATIVE PROGRAMS.] For 
 90.12  aid for contracted alternative programs under sections 16 and 17:
 90.13       $1,000,000     .....     1997 
 90.14     The appropriation is 85 percent of the entitlement for 
 90.15  fiscal year 1997. 
 90.16     Sec. 24.  [EFFECTIVE DATE.] 
 90.17     Sections 15, 16, and 17, are effective June 30, 1996.  
 90.18  Section 21 is effective the day following final enactment. 
 90.19                             ARTICLE 5
 90.20                             FACILITIES 
 90.21     Section 1.  Minnesota Statutes 1994, section 124.239, 
 90.22  subdivision 5, is amended to read: 
 90.23     Subd. 5.  [LEVY REVENUE AUTHORIZED.] A district, after 
 90.24  local board approval, may levy is eligible for revenue for costs 
 90.25  related to an approved facility plan as follows:  
 90.26     (a) if the district has indicated to the commissioner that 
 90.27  bonds will be issued, the district may levy for the principal 
 90.28  and interest payments on outstanding bonds issued according to 
 90.29  subdivision 3; or 
 90.30     (b) if the district has indicated to the commissioner that 
 90.31  the plan will be funded through the levy according to 
 90.32  subdivision 5a, the district may levy receive revenue according 
 90.33  to the schedule approved in the plan. 
 90.34     Sec. 2.  Minnesota Statutes 1994, section 124.239, is 
 90.35  amended by adding a subdivision to read: 
 90.36     Subd. 5a.  [LEVY.] A district's alternative facilities levy 
 91.1   is equal to the district's alternative facilities revenue 
 91.2   authorized under subdivision 5 multiplied by the lesser of one, 
 91.3   or the ratio of: 
 91.4      (1) the quotient derived by dividing the adjusted net tax 
 91.5   capacity of the district for the year preceding the year is 
 91.6   levied certified by the actual pupil units in the district for 
 91.7   the school year to which the levy is attributable; to 
 91.8      (2) $4,707.50. 
 91.9      Sec. 3.  Minnesota Statutes 1994, section 124.239, is 
 91.10  amended by adding a subdivision to read: 
 91.11     Subd. 5b.  [AID.] A district's alternative facilities 
 91.12  equalization aid is equal to the difference between the 
 91.13  district's alternative facilities revenue and its alternative 
 91.14  facilities levy.  If the district does not levy the entire 
 91.15  amount permitted, the aid is reduced in proportion to the actual 
 91.16  amount levied. 
 91.17     Sec. 4.  Minnesota Statutes 1995 Supplement, section 
 91.18  124.243, subdivision 2, is amended to read: 
 91.19     Subd. 2.  [CAPITAL EXPENDITURE FACILITIES REVENUE.] (a) 
 91.20  Capital expenditure facilities previous formula revenue for a 
 91.21  district equals $128 times its actual pupil units for the school 
 91.22  year. 
 91.23     (b) For fiscal years 1996, capital expenditure facilities 
 91.24  revenue for a district equals $100 times the district's 
 91.25  maintenance cost index times its actual pupil units for the 
 91.26  school year. 
 91.27     (c) Notwithstanding paragraph (b), for fiscal year 1996, 
 91.28  the revenue for each district equals 25 percent of the amount 
 91.29  determined in paragraph (b) plus 75 percent of the previous 
 91.30  formula revenue. 
 91.31     (d) Notwithstanding paragraph (b), for fiscal year 1997, 
 91.32  the revenue for each district equals 50 percent of the amount 
 91.33  determined in paragraph (b) plus 50 percent of the previous 
 91.34  formula revenue. 
 91.35     (e) Notwithstanding paragraph (b), for fiscal year 1998, 
 91.36  the revenue for each district equals 75 percent of the amount 
 92.1   determined in paragraph (b) plus 25 percent of the previous 
 92.2   formula revenue. 
 92.3      (f) The revenue in paragraph (b) for a district that 
 92.4   operates a program under section 121.585, is increased by an 
 92.5   amount equal to $15 times the number of actual pupil units at 
 92.6   the site where the program is implemented. 
 92.7      Sec. 5.  Minnesota Statutes 1995 Supplement, section 
 92.8   124.2445, is amended to read: 
 92.9      124.2445 [PURCHASE OF CERTAIN EQUIPMENT.] 
 92.10     The board of a school district may issue certificates of 
 92.11  indebtedness or capital notes subject to the school district 
 92.12  debt limits to purchase vehicles other than school buses, 
 92.13  computers, telephone systems, cable equipment, photocopy and 
 92.14  office equipment, technological equipment for instruction, and 
 92.15  other capital equipment having an expected useful life at least 
 92.16  as long as the terms of the certificates or notes.  The 
 92.17  certificates or notes must be payable in not more than five 
 92.18  years and must be issued on the terms and in the manner 
 92.19  determined by the board.  The certificates or notes may be 
 92.20  issued by resolution and without the requirement for an 
 92.21  election.  The certificates or notes are general obligation 
 92.22  bonds for purposes of section 124.755.  A tax levy must be made 
 92.23  for the payment of the principal and interest on the 
 92.24  certificates or notes, in accordance with section 475.61, as in 
 92.25  the case of bonds.  That The sum of the tax levy levies under 
 92.26  this section and section 124.2455, for each year must not exceed 
 92.27  the amount of the district's total operating capital revenue for 
 92.28  the year the initial debt service levies are certified.  The 
 92.29  district's general education levy for each year must be reduced 
 92.30  by the amount of the tax levies for debt service certified for 
 92.31  each year for payment of the principal and interest on the 
 92.32  certificates or notes as required by section 475.61.  
 92.33     Sec. 6.  Minnesota Statutes 1995 Supplement, section 
 92.34  124.2455, is amended to read: 
 92.35     124.2455 [BONDS FOR CERTAIN CAPITAL FACILITIES.] 
 92.36     (a) In addition to other bonding authority, with approval 
 93.1   of the commissioner, a school district may issue general 
 93.2   obligation bonds for certain capital projects under this 
 93.3   section.  The bonds must be used only to make capital 
 93.4   improvements including: 
 93.5      (1) under section 124.243, subdivision 6, capital 
 93.6   expenditure facilities 124A.22, subdivision 11, total operating 
 93.7   capital revenue uses specified in clauses (4), (6), (7), (8), 
 93.8   (9), and (10); 
 93.9      (2) the cost of energy modifications; 
 93.10     (3) improving handicap accessibility to school buildings; 
 93.11  and 
 93.12     (4) bringing school buildings into compliance with life and 
 93.13  safety codes and fire codes.  
 93.14     (b) Before a district issues bonds under this subdivision, 
 93.15  it must publish notice of the intended projects, the amount of 
 93.16  the bond issue, and the total amount of district indebtedness.  
 93.17     (c) A bond issue tentatively authorized by the board under 
 93.18  this subdivision becomes finally authorized unless a petition 
 93.19  signed by more than 15 percent of the registered voters of the 
 93.20  school district is filed with the school board within 30 days of 
 93.21  the board's adoption of a resolution stating the board's 
 93.22  intention to issue bonds.  The percentage is to be determined 
 93.23  with reference to the number of registered voters in the school 
 93.24  district on the last day before the petition is filed with the 
 93.25  school board.  The petition must call for a referendum on the 
 93.26  question of whether to issue the bonds for the projects under 
 93.27  this section.  The approval of 50 percent plus one of those 
 93.28  voting on the question is required to pass a referendum 
 93.29  authorized by this section. 
 93.30     (d) The bonds may be issued in a principal amount, that 
 93.31  when combined with interest thereon, will be paid off with not 
 93.32  more than 50 percent of current and anticipated revenue for 
 93.33  capital facilities under this section or a successor section for 
 93.34  the current year plus projected revenue not greater than that of 
 93.35  the current year for the next ten years.  Once finally 
 93.36  authorized, the district must set aside the lesser of the amount 
 94.1   necessary to make the principal and interest payments or 50 
 94.2   percent of the current year's revenue for capital facilities 
 94.3   under this section or a successor section each year in a 
 94.4   separate account until all principal and interest on the bonds 
 94.5   is paid.  The district must annually transfer this amount from 
 94.6   its capital fund to the debt redemption fund.  The bonds must be 
 94.7   paid off within ten years of issuance.  The bonds must be issued 
 94.8   in compliance with chapter 475, except as otherwise provided in 
 94.9   this section.  A tax levy must be made for the payment of 
 94.10  principal and interest on the bonds in accordance with section 
 94.11  475.61.  The sum of the tax levies under this section and 
 94.12  section 124.2455, for each year must not exceed the amount of 
 94.13  the district's total operating capital revenue for the year the 
 94.14  initial debt service levies are certified.  The district's 
 94.15  general education levy for each year must be reduced by the 
 94.16  amount of the tax levies for debt service certified for each 
 94.17  year for payment of the principal and interest on the bonds.  
 94.18     (e) Notwithstanding paragraph (d), bonds issued by a 
 94.19  district within the first five years following voter approval of 
 94.20  a combination according to section 122.243, subdivision 2, bonds 
 94.21  may be issued in a principal amount, that when combined with 
 94.22  interest thereon, will be paid off with not more than 50 percent 
 94.23  of current and anticipated revenue for capital facilities under 
 94.24  this section or a successive section for the current year plus 
 94.25  projected revenue not greater than that of the current year for 
 94.26  the next 20 years must be paid off within 20 years of issuance.  
 94.27  All the other provisions and limitation of paragraph (d) apply. 
 94.28     Sec. 7.  Minnesota Statutes 1994, section 124.91, 
 94.29  subdivision 1, is amended to read: 
 94.30     Subdivision 1.  [TO LEASE BUILDING OR LAND.] When a 
 94.31  district finds it economically advantageous to rent or lease a 
 94.32  building or land for any instructional purposes or for school 
 94.33  storage or furniture repair, and it determines that the capital 
 94.34  expenditure facilities revenues authorized under section 
 94.35  sections 124.243 and 124A.22, subdivision 10, are insufficient 
 94.36  for this purpose, it may apply to the commissioner for 
 95.1   permission to make an additional capital expenditure levy for 
 95.2   this purpose.  An application for permission to levy under this 
 95.3   subdivision must contain financial justification for the 
 95.4   proposed levy, the terms and conditions of the proposed lease, 
 95.5   and a description of the space to be leased and its proposed 
 95.6   use.  The criteria for approval of applications to levy under 
 95.7   this subdivision must include:  the reasonableness of the price, 
 95.8   the appropriateness of the space to the proposed activity, the 
 95.9   feasibility of transporting pupils to the leased building or 
 95.10  land, conformity of the lease to the laws and rules of the state 
 95.11  of Minnesota, and the appropriateness of the proposed lease to 
 95.12  the space needs and the financial condition of the district.  
 95.13  The commissioner must not authorize a levy under this 
 95.14  subdivision in an amount greater than the cost to the district 
 95.15  of renting or leasing a building or land for approved purposes.  
 95.16  The proceeds of this levy must not be used for custodial or 
 95.17  other maintenance services.  A district may not levy under this 
 95.18  subdivision for the purpose of leasing or renting a 
 95.19  district-owned building to itself. 
 95.20     Sec. 8.  Minnesota Statutes 1994, section 124.91, is 
 95.21  amended by adding a subdivision to read: 
 95.22     Subd. 7.  [LEASE PURCHASE, INSTALLMENT BUYS.] (a) Upon 
 95.23  application to, and approval by, the commissioner in accordance 
 95.24  with the procedures and limits in subdivision 1, a district, as 
 95.25  defined in this subdivision, may: 
 95.26     (1) purchase real or personal property under an installment 
 95.27  contract or may lease real or personal property with an option 
 95.28  to purchase under a lease purchase agreement, by which 
 95.29  installment contract or lease purchase agreement title is kept 
 95.30  by the seller or vendor or assigned to a third party as security 
 95.31  for the purchase price, including interest, if any; and 
 95.32     (2) annually levy the amounts necessary to pay the 
 95.33  district's obligations under the installment contract or lease 
 95.34  purchase agreement. 
 95.35     (b) The obligation created by the installment contract or 
 95.36  the lease purchase agreement must not be included in the 
 96.1   calculation of net debt for purposes of section 475.53, and does 
 96.2   not constitute debt under other law.  An election is not 
 96.3   required in connection with the execution of the installment 
 96.4   contract or the lease purchase agreement. 
 96.5      (c) The proceeds of the levy authorized by this subdivision 
 96.6   must not be used to acquire a facility to be primarily used for 
 96.7   athletic or school administration purposes. 
 96.8      (d) For the purposes of this subdivision, "district" means: 
 96.9      (1) a school district required to have a comprehensive plan 
 96.10  for the elimination of segregation whose plan has been 
 96.11  determined by the commissioner to be in compliance with the 
 96.12  state board of education rules relating to equality of 
 96.13  educational opportunity and school desegregation; or 
 96.14     (2) a school district that participates in a joint program 
 96.15  for interdistrict desegregation with a district defined in 
 96.16  clause (1) if the facility acquired under this subdivision is to 
 96.17  be primarily used for the joint program. 
 96.18     (e) Notwithstanding subdivision 1, the prohibition against 
 96.19  a levy by a district to lease or rent a district-owned building 
 96.20  to itself does not apply to levies otherwise authorized by this 
 96.21  subdivision. 
 96.22     (f) For the purposes of this subdivision, any references in 
 96.23  subdivision 1 to building or land shall include personal 
 96.24  property. 
 96.25     Sec. 9.  Minnesota Statutes 1994, section 128D.11, 
 96.26  subdivision 3, is amended to read: 
 96.27     Subd. 3.  [NO ELECTION.] Subject to the provisions of 
 96.28  subdivisions 7 to 10, the school district may also by a 
 96.29  two-thirds majority vote of all the members of its board of 
 96.30  education and without any election by the voters of the 
 96.31  district, issue and sell in each calendar year general 
 96.32  obligation bonds of the district in an amount not to 
 96.33  exceed one-half of one five and one-tenth per cent of the net 
 96.34  tax capacity of the taxable property in the district (plus, for 
 96.35  calendar years 1990 to 1996 2003, an amount not to exceed 
 96.36  $7,500,000; with an additional provision that any amount of 
 97.1   bonds so authorized for sale in a specific year and not sold can 
 97.2   be carried forward and sold in the year immediately following); 
 97.3   provided, however, that the board shall submit the list of 
 97.4   projects and undertakings to be financed by a proposed issue to 
 97.5   the city planning commission as provided in subdivision 10, 
 97.6   paragraph (b).  
 97.7      Sec. 10.  Minnesota Statutes 1994, section 128D.11, 
 97.8   subdivision 5, is amended to read: 
 97.9      Subd. 5.  [USE OF PROCEEDS.] The proceeds of the sale of 
 97.10  the bonds shall be used only for the rehabilitating, remodeling, 
 97.11  expanding, and equipping of existing school buildings and for 
 97.12  the acquisition of sites, construction, and equipping of new 
 97.13  school buildings, and for acquisition and betterment purposes, 
 97.14  and no part of the proceeds shall be used for maintenance. 
 97.15     Sec. 11.  Minnesota Statutes 1994, section 128D.11, 
 97.16  subdivision 8, is amended to read: 
 97.17     Subd. 8.  [NET DEBT LIMIT.] The school district shall not 
 97.18  be subject to a net debt in excess of ten 102 percent of the net 
 97.19  tax capacity of all taxable property therein. 
 97.20     Sec. 12.  Laws 1995, First Special Session chapter 3, 
 97.21  article 5, section 20, subdivision 5, is amended to read: 
 97.22     Subd. 5.  [DEBT SERVICE AID.] For debt service aid 
 97.23  according to Minnesota Statutes, section 124.95, subdivision 5: 
 97.24       $30,054,000     .....     1996
 97.25       $27,370,000 $28,228,000     .....     1997
 97.26     The 1996 appropriation includes $30,054,000 for 1996. 
 97.27     The 1997 appropriation includes $27,370,000 $28,228,000 for 
 97.28  1997.  This appropriation is 85 percent of the aid entitlement 
 97.29  for 1997. 
 97.30     Sec. 13.  Laws 1995, First Special Session chapter 3, 
 97.31  article 5, section 20, subdivision 6, is amended to read: 
 97.32     Subd. 6.  [PLANNING GRANT.] For a grant to independent 
 97.33  school district Nos. 325, Lakefield; 328, Sioux Valley; 330, 
 97.34  Heron Lake-Okabena; 513, Brewster; and 516, Round Lake acting as 
 97.35  a joint powers agreement: 
 97.36       $40,000     .....     1996 
 98.1      The grant is to cover costs associated with planning for 
 98.2   facility needs for a combined district.  The facilities must 
 98.3   provide for the location of a significant number of 
 98.4   noneducational student and community service programs within the 
 98.5   facility.  The joint powers group must consult with independent 
 98.6   school district Nos. 324, Jackson; 177, Windom; and 518, 
 98.7   Worthington, and include facility needs and availability in 
 98.8   those districts in the group's planning. 
 98.9      This appropriation is available until June 30, 1997. 
 98.10     Sec. 14.  Laws 1995, First Special Session chapter 3, 
 98.11  article 5, section 20, subdivision 7, is amended to read: 
 98.12     Subd. 7.  [PRESTON-FOUNTAIN; HARMONY DISTRICT.] For a grant 
 98.13  to the new school district comprised of independent school 
 98.14  district No. 233, Preston-Fountain, and independent school 
 98.15  district No. 228, Harmony: 
 98.16          $70,000     .....     1996 
 98.17          $70,000     .....     1997 
 98.18     This grant These grants must be placed in the district's 
 98.19  debt redemption fund.  The department must reduce the new 
 98.20  district debt service levy levies by this amount these amounts. 
 98.21     Debt service equalization aid shall not be reduced as a 
 98.22  result of the grant. 
 98.23     Sec. 15.  [APPROVAL FOR DEBT SERVICE EQUALIZATION AID:  
 98.24  ROYALTON.] 
 98.25     Notwithstanding Minnesota Statutes, section 124.95, 
 98.26  subdivision 2, debt service levy attributable to bonds 
 98.27  authorized at an election conducted in 1995 by independent 
 98.28  school district No. 485, Royalton, qualifies for debt service 
 98.29  equalization aid.  
 98.30     Sec. 16.  [HEALTH AND SAFETY REVENUE; HIBBING.] 
 98.31     Notwithstanding Minnesota Statutes, section 124.83, 
 98.32  subdivision 6, independent school district No. 701, Hibbing, 
 98.33  that has a high school building on the National Historic 
 98.34  Register, may use health and safety revenue for the construction 
 98.35  of a stair tower with classroom space but only to the extent the 
 98.36  revenue is substituted for other expenditures required under 
 99.1   orders from the fire marshal. 
 99.2      Sec. 17.  [NORTH BRANCH LEASE LEVY.] 
 99.3      Notwithstanding the instructional purposes limitation of 
 99.4   Minnesota Statutes, section 124.91, subdivision 1, independent 
 99.5   school district No. 138, North Branch, may apply to the 
 99.6   commissioner of children, families, and learning to make an 
 99.7   additional capital levy under Minnesota Statutes, section 
 99.8   124.91, subdivision 1, to rent or lease a building or land for 
 99.9   administrative purposes.  The levy may not exceed the amount 
 99.10  necessary to obtain space similar in size and quality to the 
 99.11  office space vacated for instructional purposes. 
 99.12     Sec. 18.  [SCHOOL DISTRICTS; BONDS.] 
 99.13     Subdivision 1.  [AUTHORIZATION.] Independent school 
 99.14  district No. 316, Greenway-Coleraine, may issue bonds in an 
 99.15  aggregate principal amount not exceeding $500,000; and 
 99.16  independent school district No. 696, Ely, may issue bonds in an 
 99.17  aggregate amount not exceeding $1,000,000; and independent 
 99.18  school district No. 701, Hibbing, may issue bonds in an 
 99.19  aggregate principal amount not exceeding $2,200,000; and 
 99.20  independent school district No. 706, Virginia, may issue bonds 
 99.21  in an aggregate principal amount not exceeding $6,000,000; and 
 99.22  independent school district No. 2142, St. Louis county, may 
 99.23  issue bonds in an aggregate principal amount not exceeding 
 99.24  $3,000,000; and independent school district No. 2154, 
 99.25  Eveleth-Gilbert, may issue bonds in an aggregate principal 
 99.26  amount not exceeding $3,600,000; and independent school district 
 99.27  No. 2711, Mesabi East, may issue bonds in an aggregate principal 
 99.28  amount not exceeding $800,000 in addition to any bonds already 
 99.29  issued or authorized, to provide funds to design, construct, 
 99.30  equip, furnish, remodel, rehabilitate, and acquire land for 
 99.31  school facilities and buildings, or abate, remove, and dispose 
 99.32  of asbestos, polychlorinated biphenyls or petroleum as defined 
 99.33  in Minnesota Statutes, section 115C.02, and make repairs related 
 99.34  to the abatement, removal, or disposal of these substances.  
 99.35  They may spend the proceeds of the bond sale for those purposes 
 99.36  and any architect, engineer, and legal fees incidental to those