1.1                          A bill for an act 
  1.2             relating to education; kindergarten through grade 12; 
  1.3             providing for general education; special programs; 
  1.4             lifework development; education organization, 
  1.5             cooperation, and facilities; education excellence; 
  1.6             academic performance; education policy issues; 
  1.7             libraries; technology; state agencies; conforming and 
  1.8             technical amendments; appropriating money; amending 
  1.9             Minnesota Statutes 1996, sections 120.062, 
  1.10            subdivisions 7 and 9; 120.0621, subdivisions 5a, 5b, 
  1.11            6, and by adding a subdivision; 120.064, subdivisions 
  1.12            3, 4, 4a, 5, 8, 11, 20a, and by adding subdivisions; 
  1.13            120.101, subdivision 5c, and by adding a subdivision; 
  1.14            120.17, subdivision 3a; 120.181; 121.11, subdivision 
  1.15            7c, and by adding a subdivision; 121.1115, by adding 
  1.16            subdivisions; 121.15, by adding subdivisions; 121.155, 
  1.17            by adding a subdivision; 121.602, subdivisions 1, 2, 
  1.18            and 4; 121.611; 121.615, subdivisions 2, 3, 5, 6, 7, 
  1.19            8, 9, and 10; 121.703, subdivision 3; 121.904, 
  1.20            subdivision 4a; 123.34, by adding a subdivision; 
  1.21            123.3514, subdivisions 4, 4a, 4c, 4e, 6c, 8, and by 
  1.22            adding subdivisions; 123.39, subdivision 6; 123.935, 
  1.23            subdivision 7; 124.155, subdivision 1; 124.17, 
  1.24            subdivision 4, and by adding a subdivision; 124.193; 
  1.25            124.195, subdivisions 2, 7, 10, 11, and by adding a 
  1.26            subdivision; 124.225, subdivisions 1, 3a, 7b, 7d, 7f, 
  1.27            8a, 10, 13, 14, 15, and 17; 124.226, subdivisions 4, 
  1.28            9, and 10; 124.2445; 124.2455; 124.248, subdivisions 1 
  1.29            and 3; 124.2613, subdivisions 3 and 6; 124.2727, 
  1.30            subdivisions 6a, 6c, and 6d; 124.273, subdivisions 1d, 
  1.31            1e, 1f, and 5; 124.312, subdivisions 4 and 5; 124.313; 
  1.32            124.314, subdivisions 1 and 2; 124.3201, subdivisions 
  1.33            1, 2, 3, and 4; 124.321, subdivision 1; 124.323, 
  1.34            subdivisions 1 and 2; 124.42, subdivision 4; 124.431, 
  1.35            subdivisions 2 and 11; 124.45; 124.481; 124.573, 
  1.36            subdivision 2f; 124.574, subdivisions 1, 2d, 2f, 5, 6, 
  1.37            and 9; 124.646, subdivision 1; 124.83, subdivisions 1 
  1.38            and 2; 124.86, subdivision 2, and by adding a 
  1.39            subdivision; 124.91, subdivisions 1 and 5; 124.912, 
  1.40            subdivisions 1, 2, and 3; 124.916, subdivisions 1, 2, 
  1.41            and 3; 124.918, subdivision 6; 124.95, subdivision 2; 
  1.42            124.961; 124A.03, subdivision 1c; 124A.036, 
  1.43            subdivisions 5 and 6; 124A.04, subdivision 2; 124A.22, 
  1.44            subdivisions 1, 2, as amended, 3, 6, 6a, 10, 11, 13b, 
  1.45            and by adding a subdivision; 124A.225, subdivisions 1 
  1.46            and 4; 124A.23, subdivisions 1 and 3; 124A.26, 
  2.1             subdivision 1; 124A.28; 124C.45, subdivision 1a; 
  2.2             124C.46, subdivisions 1 and 2; 124C.498, subdivision 
  2.3             2; 125.05, subdivisions 1c and 2; 125.12, subdivision 
  2.4             14; 126.22, subdivision 2; 126.23, subdivision 1; 
  2.5             126.77, subdivision 1; 126.82; 127.27, subdivision 10; 
  2.6             127.282; 128C.02, subdivision 2; 128C.08, subdivision 
  2.7             5; 134.155, subdivisions 2 and 3; 134.34, subdivision 
  2.8             4; and 136A.233, by adding a subdivision; Laws 1991, 
  2.9             chapter 265, article 1, section 30, as amended; Laws 
  2.10            1992, chapter 499, article 7, section 31; Laws 1995, 
  2.11            First Special Session chapter 3, article 1, section 
  2.12            56; article 2, section 52; article 3, section 11, 
  2.13            subdivisions 1, 2, and 5; article 11, section 21, 
  2.14            subdivision 3; article 12, section 7, subdivision 1; 
  2.15            Laws 1996, chapter 412, article 4, section 34, 
  2.16            subdivision 4; and article 12, sections 8 and 11; 
  2.17            proposing coding for new law in Minnesota Statutes, 
  2.18            chapters 120; 121; 124; 126; and 127; repealing 
  2.19            Minnesota Statutes 1996, sections 121.904, subdivision 
  2.20            4d; 124.177; 124.225, subdivisions 13, 14, 15, 16, and 
  2.21            17; 124.226, subdivisions 1, 3, 3a, 6, and 10; 
  2.22            124.3201, subdivisions 2a and 2b; 124A.22, 
  2.23            subdivisions 2a, 13, and 13a; 124A.697; 124A.698; 
  2.24            124A.70; 124A.71; 124A.711; 124A.72; 124A.73; 126.113; 
  2.25            128B.10; 134.34, subdivision 4a; and 134.46; Laws 
  2.26            1993, chapter 146, article 5, section 20; Laws 1994, 
  2.27            chapter 647, article 7, section 18; and Laws 1995, 
  2.28            First Special Session chapter 3, article 12, section 8.
  2.29  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.30                             ARTICLE 1 
  2.31                         GENERAL EDUCATION 
  2.32     Section 1.  Minnesota Statutes 1996, section 120.062, 
  2.33  subdivision 9, is amended to read: 
  2.34     Subd. 9.  [TRANSPORTATION.] (a) If requested by the parent 
  2.35  of a pupil, the nonresident district shall provide 
  2.36  transportation within the district.  The state shall pay 
  2.37  transportation aid to the district according to section 124.225. 
  2.38     The resident district is not required to provide or pay for 
  2.39  transportation between the pupil's residence and the border of 
  2.40  the nonresident district.  A parent may be reimbursed by the 
  2.41  nonresident district for the costs of transportation from the 
  2.42  pupil's residence to the border of the nonresident district if 
  2.43  the pupil is from a family whose income is at or below the 
  2.44  poverty level, as determined by the federal government.  The 
  2.45  reimbursement may not exceed the pupil's actual cost of 
  2.46  transportation or 15 cents per mile traveled, whichever is 
  2.47  less.  Reimbursement may not be paid for more than 250 miles per 
  2.48  week.  
  2.49     At the time a nonresident district notifies a parent or 
  3.1   guardian that an application has been accepted under subdivision 
  3.2   5 or 6, the nonresident district must provide the parent or 
  3.3   guardian with the following information regarding the 
  3.4   transportation of nonresident pupils under this section: 123.39, 
  3.5   subdivision 6. 
  3.6      (1) a nonresident district may transport a pupil within the 
  3.7   pupil's resident district under this section only with the 
  3.8   approval of the resident district; and 
  3.9      (2) a parent or guardian of a pupil attending a nonresident 
  3.10  district under this section may appeal under section 123.39, 
  3.11  subdivision 6, the refusal of the resident district to allow the 
  3.12  nonresident district to transport the pupil within the resident 
  3.13  district. 
  3.14     (b) Notwithstanding paragraph (a) and section 124.225, 
  3.15  subdivision 8l, transportation provided by a nonresident 
  3.16  district between home and school for a pupil attending school 
  3.17  under this section is authorized for nonregular transportation 
  3.18  revenue under section 124.225, if the following criteria are met:
  3.19     (1) the school that the pupil was attending prior to 
  3.20  enrolling in the nonresident district under this section was 
  3.21  closed; 
  3.22     (2) the distance from the closed school to the next nearest 
  3.23  school in the district that the student could attend is at least 
  3.24  20 miles; 
  3.25     (3) the pupil's residence is at least 20 miles from any 
  3.26  school that the pupil could attend in the resident district; and 
  3.27     (4) the pupil's residence is closer to the school of 
  3.28  attendance in the nonresident district than to any school the 
  3.29  pupil could attend in the resident district. 
  3.30     Sec. 2.  Minnesota Statutes 1996, section 121.904, 
  3.31  subdivision 4a, is amended to read: 
  3.32     Subd. 4a.  [LEVY RECOGNITION.] (a) "School district tax 
  3.33  settlement revenue" means the current, delinquent, and 
  3.34  manufactured home property tax receipts collected by the county 
  3.35  and distributed to the school district, including distributions 
  3.36  made pursuant to section 279.37, subdivision 7, and excluding 
  4.1   the amount levied pursuant to section 124.914, subdivision 1. 
  4.2      (b) In June of each year, the school district shall 
  4.3   recognize as revenue, in the fund for which the levy was made, 
  4.4   the lesser of:  
  4.5      (1) the May, June, and July school district tax settlement 
  4.6   revenue received in that calendar year; or 
  4.7      (2) the sum of the state aids and credits enumerated in 
  4.8   section 124.155, subdivision 2, which are for the fiscal year 
  4.9   payable in that fiscal year plus an amount equal to the levy 
  4.10  recognized as revenue in June of the prior year plus 31 percent 
  4.11  for fiscal year 1996 and thereafter of the amount of the levy 
  4.12  certified in the prior calendar year according to section 
  4.13  124A.03, subdivision 2, plus or minus auditor's adjustments, not 
  4.14  including levy portions that are assumed by the state; or 
  4.15     (3) 18.1 percent for fiscal year 1996, the percent 
  4.16  determined under Laws 1996, chapter 461, section 3, for fiscal 
  4.17  year 1997 and that same percent thereafter of the amount of the 
  4.18  levy certified in the prior calendar year, plus or minus 
  4.19  auditor's adjustments, not including levy portions that are 
  4.20  assumed by the state, which remains after subtracting, by fund, 
  4.21  the amounts levied for the following purposes:  
  4.22     (i) reducing or eliminating projected deficits in the 
  4.23  reserved fund balance accounts for unemployment insurance and 
  4.24  bus purchases; 
  4.25     (ii) statutory operating debt pursuant to section 124.914, 
  4.26  subdivision 1; 
  4.27     (iii) retirement and severance pay pursuant to sections 
  4.28  122.531, subdivision 9, 124.2725, subdivision 15, 124.4945, 
  4.29  124.912, subdivision 1, and 124.916, subdivision 3, and Laws 
  4.30  1975, chapter 261, section 4; 
  4.31     (iv) amounts levied for bonds issued and interest thereon, 
  4.32  amounts levied for debt service loans and capital loans, amounts 
  4.33  levied for down payments under section 124.82, subdivision 3; 
  4.34  and 
  4.35     (v) amounts levied under section 124.755. 
  4.36     Notwithstanding the foregoing, the levy recognition 
  5.1   percentage for the referendum levy certified according to 
  5.2   section 124A.03, subdivision 2, is 31 percent. 
  5.3      (3)(i) 7.0 percent of the lesser of the amount of the 
  5.4   general education levy certified in the prior calendar year 
  5.5   according to section 124A.23, subdivision 2, or the difference 
  5.6   between the amount of the total general fund levy certified in 
  5.7   the prior calendar year and the sum of the amounts certified in 
  5.8   the prior calendar year according to sections 124A.03, 
  5.9   subdivision 2; 124.315, subdivisions 2, 3, and 4; 124.912, 
  5.10  subdivisions 2 and 3; 124.916, subdivisions 1, 2, and 3, 
  5.11  paragraphs (4), (5), and (6); and 124.918, subdivision 6; plus 
  5.12     (ii) 31 percent of the referendum levy certified in the 
  5.13  prior calendar year according to section 124A.03, subdivision 2; 
  5.14  plus 
  5.15     (iii) the entire amount of the levy certified in the prior 
  5.16  calendar year according to sections 124.315, subdivision 4; 
  5.17  124.912, subdivisions 1, paragraph (b), 2, and 3; 124.916, 
  5.18  subdivisions 1, 2, and 3, paragraphs (4), (5), and (6); and 
  5.19  124.918, subdivision 6. 
  5.20     (c) In July of each year, the school district shall 
  5.21  recognize as revenue that portion of the school district tax 
  5.22  settlement revenue received in that calendar year and not 
  5.23  recognized as revenue for the previous fiscal year pursuant to 
  5.24  clause (b).  
  5.25     (d) All other school district tax settlement revenue shall 
  5.26  be recognized as revenue in the fiscal year of the settlement. 
  5.27  Portions of the school district levy assumed by the state, 
  5.28  including prior year adjustments and the amount to fund the 
  5.29  school portion of the reimbursement made pursuant to section 
  5.30  273.425, shall be recognized as revenue in the fiscal year 
  5.31  beginning in the calendar year for which the levy is payable. 
  5.32     Sec. 3.  Minnesota Statutes 1996, section 123.3514, is 
  5.33  amended by adding a subdivision to read: 
  5.34     Subd. 3a.  [ALTERNATIVE PUPIL.] "Alternative pupil" means 
  5.35  an 11th or 12th grade student not enrolled in a public school 
  5.36  district, and includes students attending nonpublic schools and 
  6.1   students who are home schooled.  An alternative pupil is 
  6.2   considered a pupil for purposes of this section only.  An 
  6.3   alternative pupil must register with the commissioner of 
  6.4   children, families, and learning before participating in the 
  6.5   post-secondary enrollment options program.  The commissioner 
  6.6   shall prescribe the form and manner of the registration, in 
  6.7   consultation with the nonpublic education council under section 
  6.8   123.935, subdivision 7, and may request any necessary 
  6.9   information from the alternative pupil. 
  6.10     Sec. 4.  Minnesota Statutes 1996, section 123.3514, 
  6.11  subdivision 4, is amended to read: 
  6.12     Subd. 4.  [AUTHORIZATION; NOTIFICATION.] Notwithstanding 
  6.13  any other law to the contrary, an 11th or 12th grade pupil 
  6.14  enrolled in a public school or an American Indian-controlled 
  6.15  tribal contract or grant school eligible for aid under section 
  6.16  124.86, except a foreign exchange pupil enrolled in a district 
  6.17  under a cultural exchange program, may apply to an eligible 
  6.18  institution, as defined in subdivision 3, to enroll in 
  6.19  nonsectarian courses offered by that post-secondary 
  6.20  institution.  If an institution accepts a secondary pupil for 
  6.21  enrollment under this section, the institution shall send 
  6.22  written notice to the pupil, the pupil's school or school 
  6.23  district, and the commissioner of children, families, and 
  6.24  learning within ten days of acceptance.  The notice shall 
  6.25  indicate the course and hours of enrollment of that pupil.  If 
  6.26  the pupil enrolls in a course for post-secondary credit, the 
  6.27  institution shall notify the pupil about payment in the 
  6.28  customary manner used by the institution. 
  6.29     Sec. 5.  Minnesota Statutes 1996, section 123.3514, 
  6.30  subdivision 4a, is amended to read: 
  6.31     Subd. 4a.  [COUNSELING.] To the extent possible, the school 
  6.32  or school district shall provide counseling services to pupils 
  6.33  and their parents or guardian before the pupils enroll in 
  6.34  courses under this section to ensure that the pupils and their 
  6.35  parents or guardian are fully aware of the risks and possible 
  6.36  consequences of enrolling in post-secondary courses.  The school 
  7.1   or school district shall provide information on the program 
  7.2   including who may enroll, what institutions and courses are 
  7.3   eligible for participation, the decision-making process for 
  7.4   granting academic credits, financial arrangements for tuition, 
  7.5   books and materials, eligibility criteria for transportation 
  7.6   aid, available support services, the need to arrange an 
  7.7   appropriate schedule, consequences of failing or not completing 
  7.8   a course in which the pupil enrolls, the effect of enrolling in 
  7.9   this program on the pupil's ability to complete the required 
  7.10  high school graduation requirements, and the academic and social 
  7.11  responsibilities that must be assumed by the pupils and their 
  7.12  parents or guardian.  The person providing counseling shall 
  7.13  encourage pupils and their parents or guardian to also use 
  7.14  available counseling services at the post-secondary institutions 
  7.15  before the quarter or semester of enrollment to ensure that 
  7.16  anticipated plans are appropriate.  
  7.17     Prior to enrolling in a course, the pupil and the pupil's 
  7.18  parents or guardian must sign a form that must be provided by 
  7.19  the school or school district and may be obtained from a 
  7.20  post-secondary institution stating that they have received the 
  7.21  information specified in this subdivision and that they 
  7.22  understand the responsibilities that must be assumed in 
  7.23  enrolling in this program.  The department of children, 
  7.24  families, and learning shall, upon request, provide technical 
  7.25  assistance to a school or school district in developing 
  7.26  appropriate forms and counseling guidelines. 
  7.27     Sec. 6.  Minnesota Statutes 1996, section 123.3514, 
  7.28  subdivision 4e, is amended to read: 
  7.29     Subd. 4e.  [COURSES ACCORDING TO AGREEMENTS.] An eligible 
  7.30  pupil, according to subdivision 4, may enroll in a nonsectarian 
  7.31  course taught by a secondary teacher or a post-secondary faculty 
  7.32  member and offered at a secondary school, or another location, 
  7.33  according to an agreement between a public school board and the 
  7.34  governing body of an eligible public post-secondary system or an 
  7.35  eligible private post-secondary institution, as defined in 
  7.36  subdivision 3.  All provisions of this section shall apply to a 
  8.1   pupil, public school board, school district, and the governing 
  8.2   body of a post-secondary institution, except as otherwise 
  8.3   provided. 
  8.4      Sec. 7.  Minnesota Statutes 1996, section 123.3514, 
  8.5   subdivision 6c, is amended to read: 
  8.6      Subd. 6c.  [FINANCIAL ARRANGEMENTS FOR COURSES PROVIDED 
  8.7   ACCORDING TO AGREEMENTS.] (a) The agreement between a public 
  8.8   school board and the governing body of a public post-secondary 
  8.9   system or private post-secondary institution shall set forth the 
  8.10  payment amounts and arrangements, if any, from the public school 
  8.11  board to the post-secondary institution.  No payments shall be 
  8.12  made by the department of children, families, and learning 
  8.13  according to subdivision 6 or 6b.  For the purpose of computing 
  8.14  state aids for a school district, a pupil enrolled according to 
  8.15  subdivision 4e shall be counted in the average daily membership 
  8.16  of the school district as though the pupil were enrolled in a 
  8.17  secondary course that is not offered in connection with an 
  8.18  agreement.  Nothing in this subdivision shall be construed to 
  8.19  prohibit a public post-secondary system or private 
  8.20  post-secondary institution from receiving additional state 
  8.21  funding that may be available under any other law.  
  8.22     (b) If a course is provided under subdivision 4e, offered 
  8.23  at a secondary school, and taught by a secondary teacher, the 
  8.24  post-secondary system or institution must not require a payment 
  8.25  from the school board that exceeds the cost to the 
  8.26  post-secondary institution that is directly attributable to 
  8.27  providing that course. 
  8.28     Sec. 8.  Minnesota Statutes 1996, section 123.3514, is 
  8.29  amended by adding a subdivision to read: 
  8.30     Subd. 6d.  [ALTERNATIVE PUPILS FINANCIAL ARRANGEMENTS.] For 
  8.31  an alternative pupil enrolled in a course or program under this 
  8.32  section, the department of children, families, and learning 
  8.33  shall make payments to the eligible institution according to 
  8.34  subdivision 6.  The department shall not make any payments to a 
  8.35  school district for alternative pupils. 
  8.36     Sec. 9.  Minnesota Statutes 1996, section 123.3514, is 
  9.1   amended by adding a subdivision to read: 
  9.2      Subd. 6e.  [TUITION AT NONPUBLIC SECONDARY INSTITUTION.] A 
  9.3   nonpublic secondary institution must proportionately adjust its 
  9.4   tuition to accurately reflect the time an alternative pupil 
  9.5   spends in a post-secondary enrollment course or program. 
  9.6      Sec. 10.  Minnesota Statutes 1996, section 123.39, 
  9.7   subdivision 6, is amended to read: 
  9.8      Subd. 6.  For the purposes of this subdivision, a 
  9.9   "nonresident pupil" is a pupil who resides in one district, 
  9.10  defined as the "resident district" and attends school in another 
  9.11  district, defined as the "nonresident district." 
  9.12     If requested, a nonresident district may shall transport a 
  9.13  nonresident pupil within its borders and may transport a 
  9.14  nonresident pupil within the pupil's resident district.  A 
  9.15  nonresident district may not transport a nonresident pupil on a 
  9.16  school district owned or contractor operated school bus within 
  9.17  the pupil's resident district without the approval of the 
  9.18  resident district under section 120.062. 
  9.19     The parent or guardian of a nonresident pupil attending a 
  9.20  nonresident district under section 120.062 may submit a written 
  9.21  request to the resident district asking that the resident 
  9.22  district allow the nonresident district to provide 
  9.23  transportation for the pupil within the pupil's resident 
  9.24  district.  The resident district must approve or disapprove the 
  9.25  request, in writing, within 30 days.  The parent or guardian may 
  9.26  appeal the refusal of the resident district to the commissioner 
  9.27  of children, families, and learning.  The commissioner must act 
  9.28  on the appeal within 30 days.  If a nonresident district decides 
  9.29  to transport a nonresident pupil within the pupil's resident 
  9.30  district, the nonresident district must notify the pupil's 
  9.31  resident district of its decision, in writing, prior to 
  9.32  providing transportation. 
  9.33     Sec. 11.  Minnesota Statutes 1996, section 123.935, 
  9.34  subdivision 7, is amended to read: 
  9.35     Subd. 7.  [NONPUBLIC EDUCATION COUNCIL.] (a) The 
  9.36  commissioner shall appoint a 15-member council on nonpublic 
 10.1   education.  The 15 members shall represent various areas of the 
 10.2   state, represent various methods of providing nonpublic 
 10.3   education, and shall be knowledgeable about nonpublic 
 10.4   education.  The compensation, removal of members, filling of 
 10.5   vacancies, and terms are governed by section 15.0575.  The 
 10.6   council shall not expire.  The council shall advise the 
 10.7   commissioner and the state board on issues affecting nonpublic 
 10.8   education and nonpublic schools.  The council may recognize 
 10.9   educational accrediting agencies, for the sole purpose of 
 10.10  sections 120.101, 120.102, and 120.103.  
 10.11     (b) A parent or guardian of a nonpublic school pupil or a 
 10.12  nonpublic school may file a complaint about services provided 
 10.13  under sections 123.931 to 123.937 with the nonpublic education 
 10.14  council.  The council may review the complaint and make a 
 10.15  recommendation for resolution to the commissioner. 
 10.16     (c) The council shall provide the families of nonpublic 
 10.17  school pupils in grades 10 and 11 and nonpublic secondary 
 10.18  schools with information about the post-secondary enrollment 
 10.19  options program under section 123.3514. 
 10.20     Sec. 12.  Minnesota Statutes 1996, section 124.155, 
 10.21  subdivision 1, is amended to read: 
 10.22     Subdivision 1.  [AMOUNT OF ADJUSTMENT.] Each year state 
 10.23  aids and credits enumerated in subdivision 2 payable to any 
 10.24  school district for that fiscal year shall be adjusted, in the 
 10.25  order listed, by an amount equal to (1) the amount the district 
 10.26  recognized as revenue for the prior fiscal year pursuant to 
 10.27  section 121.904, subdivision 4a, clause (b), minus (2) the 
 10.28  amount the district recognizes as revenue for the current fiscal 
 10.29  year pursuant to section 121.904, subdivision 4a, clause (b).  
 10.30  For the purposes of making the aid adjustment under this 
 10.31  subdivision, the amount the district recognizes as revenue for 
 10.32  either the prior fiscal year or the current fiscal year pursuant 
 10.33  to section 121.904, subdivision 4a, clause (b), shall not 
 10.34  include any amount levied pursuant to sections 124.226, 
 10.35  subdivision 9, 124.912, subdivisions 2 and 3, or a successor 
 10.36  provision only for those districts affected, 124.916, 
 11.1   subdivisions 1 and, 2, and 3, paragraphs 4, 5, and 6, 124.918, 
 11.2   subdivision 6, and 124A.03, subdivision 2; and Laws 1992, 
 11.3   chapter 499, articles 1, section 20, and 6, section 36.  Payment 
 11.4   from the permanent school fund shall not be adjusted pursuant to 
 11.5   this section.  The school district shall be notified of the 
 11.6   amount of the adjustment made to each payment pursuant to this 
 11.7   section. 
 11.8      Sec. 13.  Minnesota Statutes 1996, section 124.17, 
 11.9   subdivision 4, is amended to read: 
 11.10     Subd. 4.  [LEARNING YEAR PUPIL UNITS.] (a) When a pupil is 
 11.11  enrolled in a learning year program according to section 
 11.12  121.585, an area learning center according to sections 124C.45 
 11.13  and 124C.46, or an alternative program approved by the 
 11.14  commissioner, for more than 1,020 hours in a school year for a 
 11.15  secondary student and for, more than 935 hours in a school year 
 11.16  for an elementary student, or more than 425 hours in a school 
 11.17  year for a kindergarten student without a disability, that pupil 
 11.18  may be counted as more than one pupil in average daily 
 11.19  membership.  The amount in excess of one pupil must be 
 11.20  determined by the ratio of the number of hours of instruction 
 11.21  provided to that pupil in excess of:  (i) the greater of 1,020 
 11.22  hours or the number of hours required for a full-time secondary 
 11.23  pupil in the district to 1,020 for a secondary pupil and of; 
 11.24  (ii) the greater of 935 hours or the number of hours required 
 11.25  for a full-time elementary pupil in the district to 935 for an 
 11.26  elementary pupil in grades 1 through 6; and (iii) the greater of 
 11.27  425 hours or the number of hours required for a full-time 
 11.28  kindergarten student in the district for a kindergarten student 
 11.29  without a disability.  Hours that occur after the close of the 
 11.30  instructional year in June shall be attributable to the 
 11.31  following fiscal year. 
 11.32     (b)(i) To receive general education revenue for a pupil in 
 11.33  an alternative program that has an independent study component, 
 11.34  a school district must meet the requirements in this paragraph.  
 11.35  The school district must develop with the pupil a continual 
 11.36  learning plan for the pupil.  A district must allow a minor 
 12.1   pupil's parent or guardian to participate in developing the 
 12.2   plan, if the parent or guardian wants to participate.  The plan 
 12.3   must identify the learning experiences and expected outcomes 
 12.4   needed for satisfactory credit for the year and for graduation.  
 12.5   The plan must be updated each year. 
 12.6      (ii) General education revenue for a pupil in an approved 
 12.7   alternative program without an independent study component must 
 12.8   be prorated for a pupil participating for less than a full year, 
 12.9   or its equivalent. 
 12.10     (iii) General education revenue for a pupil in an approved 
 12.11  alternative program that has an independent study component must 
 12.12  be paid for each hour of teacher contact time and each hour of 
 12.13  independent study time completed toward a credit necessary for 
 12.14  graduation.  Average daily membership for a pupil shall equal 
 12.15  the number of hours of teacher contact time and independent 
 12.16  study time divided by 1,020. 
 12.17     (iv) For an alternative program having an independent study 
 12.18  component, the commissioner shall require a description of the 
 12.19  courses in the program, the kinds of independent study involved, 
 12.20  the expected learning outcomes of the courses, and the means of 
 12.21  measuring student performance against the expected outcomes. 
 12.22     Sec. 14.  Minnesota Statutes 1996, section 124.195, 
 12.23  subdivision 2, is amended to read: 
 12.24     Subd. 2.  [DEFINITIONS.] (a) The term "other district 
 12.25  receipts" means payments by county treasurers pursuant to 
 12.26  section 276.10, apportionments from the school endowment fund 
 12.27  pursuant to section 124.09, apportionments by the county auditor 
 12.28  pursuant to section 124.10, subdivision 2, and payments to 
 12.29  school districts by the commissioner of revenue pursuant to 
 12.30  chapter 298.  
 12.31     (b) The term "cumulative amount guaranteed" means the sum 
 12.32  of the following: 
 12.33     (1) one-third of the final adjustment payment according to 
 12.34  subdivision 6; plus 
 12.35     (2) the product of 
 12.36     (i) the cumulative disbursement percentage shown in 
 13.1   subdivision 3; times 
 13.2      (ii) the sum of 
 13.3      85 90 percent of the estimated aid and credit entitlements 
 13.4   paid according to subdivision 10; plus 
 13.5      100 percent of the entitlements paid according to 
 13.6   subdivisions 8 and 9; plus 
 13.7      the other district receipts; plus 
 13.8      the final adjustment payment according to subdivision 6.  
 13.9      (c) The term "payment date" means the date on which state 
 13.10  payments to school districts are made by the electronic funds 
 13.11  transfer method.  If a payment date falls on a Saturday, a 
 13.12  Sunday, or a weekday which is a legal holiday, the payment shall 
 13.13  be made on the immediately following business day.  The 
 13.14  commissioner of children, families, and learning may make 
 13.15  payments on dates other than those listed in subdivision 3, but 
 13.16  only for portions of payments from any preceding payment dates 
 13.17  which could not be processed by the electronic funds transfer 
 13.18  method due to documented extenuating circumstances. 
 13.19     Sec. 15.  Minnesota Statutes 1996, section 124.195, 
 13.20  subdivision 7, is amended to read: 
 13.21     Subd. 7.  [PAYMENTS TO SCHOOL NONOPERATING FUNDS.] Each 
 13.22  fiscal year state general fund payments for a district 
 13.23  nonoperating fund shall be made at 85 90 percent of the 
 13.24  estimated entitlement during the fiscal year of the entitlement, 
 13.25  unless a higher rate has been established according to section 
 13.26  121.904, subdivision 4d.  This amount shall be paid in 12 equal 
 13.27  monthly installments.  The amount of the actual entitlement, 
 13.28  after adjustment for actual data, minus the payments made during 
 13.29  the fiscal year of the entitlement shall be paid prior to 
 13.30  October 31 of the following school year.  The commissioner may 
 13.31  make advance payments of homestead and agricultural credit aid 
 13.32  for a district's debt service fund earlier than would occur 
 13.33  under the preceding schedule if the district submits evidence 
 13.34  showing a serious cash flow problem in the fund.  The 
 13.35  commissioner may make earlier payments during the year and, if 
 13.36  necessary, increase the percent of the entitlement paid to 
 14.1   reduce the cash flow problem. 
 14.2      Sec. 16.  Minnesota Statutes 1996, section 124.195, 
 14.3   subdivision 10, is amended to read: 
 14.4      Subd. 10.  [AID PAYMENT PERCENTAGE.] Except as provided in 
 14.5   subdivisions 8, 9, and 11, each fiscal year, all education aids 
 14.6   and credits in this chapter and chapters 121, 123, 124A, 124B, 
 14.7   125, 126, 134, and section 273.1392, shall be paid at 90 percent 
 14.8   for districts operating a program under section 121.585 for 
 14.9   grades 1 to 12 for all students in the district and 85 percent 
 14.10  for other districts of the estimated entitlement during the 
 14.11  fiscal year of the entitlement, unless a higher rate has been 
 14.12  established according to section 121.904, subdivision 4d.  
 14.13  Districts operating a program under section 121.585 for grades 1 
 14.14  to 12 for all students in the district shall receive 85 percent 
 14.15  of the estimated entitlement plus an additional amount of 
 14.16  general education aid equal to five percent of the estimated 
 14.17  entitlement.  For all districts,.  The final adjustment payment, 
 14.18  according to subdivision 6, shall be the amount of the actual 
 14.19  entitlement, after adjustment for actual data, minus the 
 14.20  payments made during the fiscal year of the entitlement. 
 14.21     Sec. 17.  Minnesota Statutes 1996, section 124.195, 
 14.22  subdivision 11, is amended to read: 
 14.23     Subd. 11.  [NONPUBLIC AIDS.] The state shall pay aid 
 14.24  according to sections 123.931 to 123.947 for pupils attending 
 14.25  nonpublic schools as follows: 
 14.26     (1) an advance payment by November 30 equal to 85 90 
 14.27  percent of the estimated entitlement for the current fiscal 
 14.28  year; and 
 14.29     (2) a final payment by October 31 of the following fiscal 
 14.30  year, adjusted for actual data.  
 14.31     If a payment advance to meet cash flow needs is requested 
 14.32  by a district and approved by the commissioner, the state shall 
 14.33  pay basic nonpublic pupil transportation aid according to 
 14.34  section 124.225 attributable to pupils attending nonpublic 
 14.35  schools by October 31. 
 14.36     Sec. 18.  Minnesota Statutes 1996, section 124.225, 
 15.1   subdivision 1, is amended to read: 
 15.2      Subdivision 1.  [DEFINITIONS.] For purposes of this 
 15.3   section, the terms defined in this subdivision have the meanings 
 15.4   given to them. 
 15.5      (a) "FTE" means a full-time equivalent pupil whose 
 15.6   transportation is authorized for aid purposes by section 124.223 
 15.7   or levy. 
 15.8      (b) "Authorized cost for regular transportation "Actual 
 15.9   expenditure in the regular and excess transportation categories" 
 15.10  means the sum of: 
 15.11     (1) all expenditures for transportation in the regular 
 15.12  category, as defined in paragraph (c), clause (1), for which aid 
 15.13  is authorized in section 124.223 and the excess category, as 
 15.14  defined in paragraph (c), clause (3), plus 
 15.15     (2) an amount equal to one year's depreciation on the 
 15.16  district's school bus fleet and mobile units computed on a 
 15.17  straight line basis at the rate of 15 percent per year for 
 15.18  districts operating a program under section 121.585 for grades 1 
 15.19  to 12 for all students in the district and 12-1/2 percent per 
 15.20  year for other districts of the cost of the fleet, plus 
 15.21     (3) an amount equal to one year's depreciation on district 
 15.22  school buses reconditioned by the department of corrections 
 15.23  computed on a straight line basis at the rate of 33-1/3 percent 
 15.24  per year of the cost to the district of the reconditioning, plus 
 15.25     (4) an amount equal to one year's depreciation on the 
 15.26  district's type three school buses, as defined in section 
 15.27  169.01, subdivision 6, clause (5), which must be used a majority 
 15.28  of the time for the purposes in sections 124.223 and 124.226, 
 15.29  subdivisions 5, 8, and 9, and were purchased after July 1, 1982, 
 15.30  for authorized transportation of pupils, computed on a straight 
 15.31  line basis at the rate of 20 percent per year of the cost of the 
 15.32  type three school buses an amount equal to 15 percent per year 
 15.33  of the original cost of each school bus or mobile unit owned by 
 15.34  the district and used a majority of the time for pupil 
 15.35  transportation purposes until the school bus or mobile unit is 
 15.36  eight years old. 
 16.1      (c) "Transportation category" means a category of 
 16.2   transportation service provided to pupils as follows:  
 16.3      (1) Regular transportation is transportation services 
 16.4   provided during the regular school year under section 124.223, 
 16.5   subdivisions 1 and 2, excluding the following transportation 
 16.6   services provided under section 124.223, subdivision 1:  
 16.7   transportation between schools; transportation to and from 
 16.8   service-learning programs; noon transportation to and from 
 16.9   school for kindergarten pupils attending half-day sessions; 
 16.10  transportation of pupils to and from schools located outside 
 16.11  their normal attendance areas under the provisions of a plan for 
 16.12  desegregation mandated by the state board of education or under 
 16.13  court order; and transportation of elementary pupils to and from 
 16.14  school within a mobility zone.: 
 16.15     (i) transportation to and from school during the regular 
 16.16  school year for resident elementary pupils residing one mile or 
 16.17  more from the public or nonpublic school they attend, and 
 16.18  resident secondary pupils residing two miles or more from the 
 16.19  public or nonpublic school they attend, excluding desegregation 
 16.20  transportation and noon kindergarten transportation; but with 
 16.21  respect to transportation of pupils to and from nonpublic 
 16.22  schools, only to the extent permitted by sections 123.76 to 
 16.23  123.79; 
 16.24     (ii) transportation of resident pupils to and from language 
 16.25  immersion programs; 
 16.26     (iii) transportation of a pupil who is a custodial parent 
 16.27  and that pupil's child between the pupil's home and the child 
 16.28  care provider and between the provider and the school, if the 
 16.29  home and provider are within the attendance area of the school; 
 16.30  and 
 16.31     (iv) transportation to and from or board and lodging in 
 16.32  another district, of resident pupils of a district without a 
 16.33  secondary school. 
 16.34     For the purposes of this paragraph, a district may 
 16.35  designate a licensed day care facility, respite care facility, 
 16.36  the residence of a relative, or the residence of a person chosen 
 17.1   by the pupil's parent or guardian as the home of a pupil for 
 17.2   part or all of the day, if requested by the pupil's parent or 
 17.3   guardian, and if that facility or residence is within the 
 17.4   attendance area of the school the pupil attends. 
 17.5      (2) Nonregular transportation is: 
 17.6      (i) transportation services provided under section 124.223, 
 17.7   subdivision 1, that are excluded from the regular 
 17.8   category between schools a resident pupil attends for 
 17.9   instructional classes or to and from a service learning program 
 17.10  under section 124.223, subdivision 1, paragraph (a); 
 17.11     (ii) transportation of an elementary pupil within a 
 17.12  mobility zone under section 124.223, subdivision 1, paragraphs 
 17.13  (c), (d), and (e); and 
 17.14     (iii) transportation services provided under section 
 17.15  124.223, subdivisions 3, 4, 5, 6, 7, 8, 9, and 10 excluding 
 17.16  transportation services for pupils with disabilities. 
 17.17     (3) Excess transportation is transportation to and from 
 17.18  school during the regular school year for secondary pupils 
 17.19  residing at least one mile but less than two miles from the 
 17.20  public school they could attend or from the nonpublic school 
 17.21  actually attended they attend, and transportation to and from 
 17.22  school for pupils residing less than one mile from school who 
 17.23  are transported because of extraordinary traffic, drug, or crime 
 17.24  hazards. 
 17.25     (4) Desegregation transportation is transportation within 
 17.26  and outside of the district during the regular school year of 
 17.27  pupils to and from schools located outside their normal 
 17.28  attendance areas under a plan for desegregation mandated by the 
 17.29  state board or under court order.  
 17.30     (5) Handicapped transportation is transportation provided 
 17.31  under section 124.223, subdivision 4, for pupils with a 
 17.32  disability between home or a respite care facility and school or 
 17.33  other buildings where special instruction required by sections 
 17.34  120.17 and 120.1701 is provided "Transportation services for 
 17.35  pupils with disabilities" is: 
 17.36     (i) transportation of pupils with disabilities who cannot 
 18.1   be transported on a regular school bus between home or a respite 
 18.2   care facility and school; 
 18.3      (ii) necessary transportation of pupils with disabilities 
 18.4   from home or from school to other buildings, including centers 
 18.5   such as developmental achievement centers, hospitals, and 
 18.6   treatment centers where special instruction or services required 
 18.7   by sections 120.17 and 120.1701 are provided, within or outside 
 18.8   the district where services are provided; 
 18.9      (iii) necessary transportation for resident pupils with 
 18.10  disabilities required by sections 120.17, subdivision 4a, and 
 18.11  120.1701; 
 18.12     (iv) board and lodging for pupils with disabilities in a 
 18.13  district maintaining special classes; 
 18.14     (v) transportation from one educational facility to another 
 18.15  within the district for resident pupils enrolled on a 
 18.16  shared-time basis in educational programs, and necessary 
 18.17  transportation required by sections 120.17, subdivision 9, and 
 18.18  120.1701, for resident pupils with disabilities who are provided 
 18.19  special instruction and services on a shared-time basis; 
 18.20     (vi) transportation for resident pupils with disabilities 
 18.21  to and from board and lodging facilities when the pupil is 
 18.22  boarded and lodged for educational purposes; and 
 18.23     (vii) services described in clauses (i) to (vi), when 
 18.24  provided for pupils with disabilities in conjunction with a 
 18.25  summer instructional program that relates to the pupil's 
 18.26  individual education plan or in conjunction with a learning year 
 18.27  program established under section 121.585. 
 18.28     (d) "Mobile unit" means a vehicle or trailer designed to 
 18.29  provide facilities for educational programs and services, 
 18.30  including diagnostic testing, guidance and counseling services, 
 18.31  and health services.  A mobile unit located off nonpublic school 
 18.32  premises is a neutral site as defined in section 123.932, 
 18.33  subdivision 9. 
 18.34     (e) "Current year" means the school year for which aid will 
 18.35  be paid.  
 18.36     (f) "Base year" means the second school year preceding the 
 19.1   school year for which aid will be paid.  
 19.2      (g) "Base cost" means the ratio of: 
 19.3      (1) the sum of the authorized cost actual expenditures in 
 19.4   the base year for regular transportation as defined in paragraph 
 19.5   (b) (c) plus the actual cost expenditures in the base year for 
 19.6   excess transportation as defined in paragraph (c); 
 19.7      (2) to the sum of the number of weighted FTE's in the 
 19.8   regular and excess categories in the base year. 
 19.9      (h) "Pupil weighting factor" for the excess transportation 
 19.10  category for a school district means the lesser of one, or the 
 19.11  result of the following computation: 
 19.12     (1) Divide the square mile area of the school district by 
 19.13  the number of FTE's in the regular and excess categories in the 
 19.14  base year. 
 19.15     (2) Raise the result in clause (1) to the one-fifth power. 
 19.16     (3) Divide four-tenths by the result in clause (2). 
 19.17     The pupil weighting factor for the regular transportation 
 19.18  category is one.  
 19.19     (i) "Weighted FTE's"  means the number of FTE's in each 
 19.20  transportation category multiplied by the pupil weighting factor 
 19.21  for that category. 
 19.22     (j) "Sparsity index" for a school district means the 
 19.23  greater of .005 or the ratio of the square mile area of the 
 19.24  school district to the sum of the number of weighted FTE's by 
 19.25  the district in the regular and excess categories in the base 
 19.26  year. 
 19.27     (k) "Density index" for a school district means the greater 
 19.28  of one or the result obtained by subtracting the product of the 
 19.29  district's sparsity index times 20 from two. 
 19.30     (l) "Contract transportation index" for a school district 
 19.31  means the greater of one or the result of the following 
 19.32  computation: 
 19.33     (1) Multiply the district's sparsity index by 20. 
 19.34     (2) Select the lesser of one or the result in clause (1). 
 19.35     (3) Multiply the district's percentage of regular FTE's in 
 19.36  the current year using vehicles that are not owned by the school 
 20.1   district by the result in clause (2). 
 20.2      (m) "Adjusted predicted base cost" means the predicted base 
 20.3   cost as computed in subdivision 3a as adjusted under subdivision 
 20.4   7a. 
 20.5      (n) (m) "Regular transportation allowance" means the 
 20.6   adjusted predicted base cost, inflated and adjusted under 
 20.7   subdivision 7b. 
 20.8      Sec. 19.  Minnesota Statutes 1996, section 124.225, 
 20.9   subdivision 3a, is amended to read: 
 20.10     Subd. 3a.  [PREDICTED BASE COST.] A district's predicted 
 20.11  base cost equals the result of the following computation:  
 20.12     (a) Multiply the transportation formula allowance by the 
 20.13  district's sparsity index raised to the one-fourth .22 power.  
 20.14  The transportation formula allowance is $477 $530 for the 
 20.15  1993-1994 1996-1997 base year.  
 20.16     (b) Multiply the result in paragraph (a) by the district's 
 20.17  density index raised to the 1/2 one-fourth power.  
 20.18     (c) Multiply the result in paragraph (b) by the district's 
 20.19  contract transportation index raised to the 1/20 power. 
 20.20     Sec. 20.  Minnesota Statutes 1996, section 124.225, 
 20.21  subdivision 7b, is amended to read: 
 20.22     Subd. 7b.  [INFLATION FACTORS.] (a) The adjusted predicted 
 20.23  base cost determined for a district under subdivision 7a for the 
 20.24  base year must be increased by zero percent to determine the 
 20.25  district's regular transportation allowance for the 1995-1996 
 20.26  current school year. 
 20.27     (b) Notwithstanding paragraph (a), the regular 
 20.28  transportation allowance for a district for the 1995-1996 
 20.29  current school year cannot be less than the district's minimum 
 20.30  regular transportation allowance according to Minnesota Statutes 
 20.31  1990, section 124.225, subdivision 1, paragraph (t). 
 20.32     Sec. 21.  Minnesota Statutes 1996, section 124.225, 
 20.33  subdivision 7d, is amended to read: 
 20.34     Subd. 7d.  [TRANSPORTATION REVENUE.] Transportation revenue 
 20.35  for each district equals the sum of the district's regular 
 20.36  transportation revenue and the district's nonregular 
 21.1   transportation revenue. 
 21.2      (a) The regular transportation revenue for each district 
 21.3   equals the district's regular transportation allowance according 
 21.4   to subdivision 7b times the sum of the number of FTE's by the 
 21.5   district in the regular, and desegregation, and handicapped 
 21.6   categories in the current school year. 
 21.7      (b) For the 1995-1996 school year, The nonregular 
 21.8   transportation revenue for each district equals the lesser of 
 21.9   the district's actual cost in the current school year for 
 21.10  nonregular transportation services or the product of the 
 21.11  district's actual cost in the base year for nonregular 
 21.12  transportation services as defined for the current year in 
 21.13  subdivision 1, paragraph (c), times the ratio of the district's 
 21.14  average daily membership for the current year to the district's 
 21.15  average daily membership for the base year according to section 
 21.16  124.17, subdivision 2, times the nonregular transportation 
 21.17  inflation factor for the current year, minus the amount of 
 21.18  regular transportation revenue attributable to FTE's in the 
 21.19  desegregation and handicapped categories in the current school 
 21.20  year, plus the excess nonregular transportation revenue for the 
 21.21  current year according to subdivision 7e.  The nonregular 
 21.22  transportation inflation factor is 1.0 for the 1995-1996 
 21.23  1998-1999 and later school year years.  
 21.24     Sec. 22.  Minnesota Statutes 1996, section 124.225, 
 21.25  subdivision 7f, is amended to read: 
 21.26     Subd. 7f.  [RESERVED REVENUE FOR TRANSPORTATION SAFETY.] A 
 21.27  district shall reserve an amount equal to the greater of $500 
 21.28  or $1.50 $3.50 times the number of fund balance pupil units, for 
 21.29  that school year to provide student transportation safety 
 21.30  programs under section 123.799.  This revenue may only be used 
 21.31  if the district complies with the reporting requirements of 
 21.32  section 123.7991, 123.805, 169.452, 169.4582, or 171.321, 
 21.33  subdivision 5. 
 21.34     Sec. 23.  Minnesota Statutes 1996, section 124.225, 
 21.35  subdivision 8a, is amended to read: 
 21.36     Subd. 8a.  [TRANSPORTATION AID.] (a) A district's 
 22.1   transportation aid equals the product of: 
 22.2      (1) the difference between the transportation revenue and 
 22.3   the sum of: 
 22.4      (i) the maximum basic transportation levy for that school 
 22.5   year under section 124.226, subdivision 1, plus 
 22.6      (ii) the maximum nonregular transportation levy for that 
 22.7   school year under section 124.226, subdivision 4, plus 
 22.8      (iii) the contracted services aid reduction under 
 22.9   subdivision 8k, 
 22.10     (2) times the ratio of the sum of the actual amounts levied 
 22.11  under section 124.226, subdivisions 1 and 4, to the sum of the 
 22.12  permitted maximum levies under section 124.226, subdivisions 1 
 22.13  and 4. 
 22.14     (b) If the total appropriation for transportation aid for 
 22.15  any fiscal year is insufficient to pay all districts the full 
 22.16  amount of aid earned, the department of children, families, and 
 22.17  learning shall reduce each district's aid in proportion to the 
 22.18  number of resident pupils in average daily membership in the 
 22.19  district to the state total average daily membership, and shall 
 22.20  reduce the transportation levy of off-formula districts in the 
 22.21  same proportion. 
 22.22     Sec. 24.  Minnesota Statutes 1996, section 124.225, 
 22.23  subdivision 10, is amended to read: 
 22.24     Subd. 10.  [DEPRECIATION.] (a) Any school district that 
 22.25  owns school buses or mobile units shall may transfer annually 
 22.26  from the undesignated fund balance account in its transportation 
 22.27  general fund to the reserved fund balance account for bus 
 22.28  purchases in its transportation general fund at least an amount 
 22.29  equal to not to exceed 15 percent per year for districts 
 22.30  operating a program under section 121.585 for grades 1 to 12 for 
 22.31  all students in the district and 12-1/2 percent per year for 
 22.32  other districts of the original cost of each type one or type 
 22.33  two school bus or mobile unit until the original cost of each 
 22.34  type one or type two school bus or mobile unit is fully 
 22.35  amortized, plus 20 percent of the original cost of each type 
 22.36  three bus included in the district's authorized cost under the 
 23.1   provisions of subdivision 1, paragraph (b), clause (4), until 
 23.2   the original cost of each type three bus is fully amortized, 
 23.3   plus 33-1/3 percent of the cost to the district as of July 1 of 
 23.4   each year for school bus reconditioning done by the department 
 23.5   of corrections until the cost of the reconditioning is fully 
 23.6   amortized; provided, if the district's transportation aid or 
 23.7   levy is reduced pursuant to subdivision 8a because the 
 23.8   appropriation for that year is insufficient, this amount shall 
 23.9   be reduced in proportion to the reduction pursuant to 
 23.10  subdivision 8a as a percentage of the district's transportation 
 23.11  revenue under subdivision 7d eight years old.  
 23.12     (b) When a district finds that the transfers authorized 
 23.13  under paragraph (a) are insufficient to eliminate a projected 
 23.14  deficit in the reserved fund balance account for bus purchases, 
 23.15  it may apply to the commissioner for permission to make an 
 23.16  additional transfer.  The commissioner must approve, modify, or 
 23.17  deny the request within 60 days.  The commissioner must not 
 23.18  authorize a transfer under this paragraph in an amount greater 
 23.19  than the amount of the projected deficit in the reserved fund 
 23.20  balance account for bus purchases. 
 23.21     Sec. 25.  Minnesota Statutes 1996, section 124.225, 
 23.22  subdivision 13, is amended to read: 
 23.23     Subd. 13.  [TARGETED NEEDS TRANSPORTATION REVENUE.] A 
 23.24  district's targeted needs transportation revenue for the 
 23.25  1996-1997 and later 1997-1998 school years equals the sum of the 
 23.26  special programs transportation revenue according to subdivision 
 23.27  14, the integration transportation revenue according to 
 23.28  subdivision 15, and the nonpublic pupil transportation revenue 
 23.29  aid according to subdivision 16. 
 23.30     Sec. 26.  Minnesota Statutes 1996, section 124.225, 
 23.31  subdivision 14, is amended to read: 
 23.32     Subd. 14.  [SPECIAL PROGRAMS TRANSPORTATION REVENUE.] A 
 23.33  district's special programs transportation revenue for the 
 23.34  1996-1997 and later 1997-1998 school years equals the sum of: 
 23.35     (a) the district's actual cost in the base year for 
 23.36  transportation services for children with disabilities under 
 24.1   section 124.223, subdivisions 4, 5, 7, and 8 subdivision 1, 
 24.2   paragraph (c), clause (5), times the ratio of the district's 
 24.3   average daily membership for the current school year to the 
 24.4   district's average daily membership for the base year; plus 
 24.5      (b) the greater of zero or 80 percent of the difference 
 24.6   between: 
 24.7      (1) the district's actual cost in the current year for 
 24.8   transportation services for children with disabilities under 
 24.9   section 124.223, subdivisions 4, 5, 7, and 8 subdivision 1, 
 24.10  paragraph (c), clause (5); and 
 24.11     (2) the amount computed in paragraph (a). 
 24.12     Sec. 27.  Minnesota Statutes 1996, section 124.225, 
 24.13  subdivision 15, is amended to read: 
 24.14     Subd. 15.  [INTEGRATION TRANSPORTATION REVENUE.] A 
 24.15  district's integration transportation revenue for the 1996-1997 
 24.16  and later 1997-1998 school years equals the following amounts: 
 24.17     (a) for independent school district No. 709, Duluth, $4 
 24.18  times the actual pupil units for the school year; 
 24.19     (b) for independent school district No. 625, St. Paul, $73 
 24.20  times the actual pupil units for the school year; and 
 24.21     (c) for special school district No. 1, Minneapolis, $158 
 24.22  times the actual pupil units for the school year. 
 24.23     Sec. 28.  Minnesota Statutes 1996, section 124.225, 
 24.24  subdivision 17, is amended to read: 
 24.25     Subd. 17.  [TARGETED NEEDS TRANSPORTATION AID.] (a) For 
 24.26  fiscal years 1997 and 1998, a district's targeted needs 
 24.27  transportation aid is the difference between its targeted needs 
 24.28  transportation revenue under subdivision 13 and its targeted 
 24.29  needs transportation levy under section 124.226, subdivision 10. 
 24.30     (b) If a district does not levy the entire amount 
 24.31  permitted, aid must be reduced in proportion to the actual 
 24.32  amount levied. 
 24.33     Sec. 29.  Minnesota Statutes 1996, section 124.226, 
 24.34  subdivision 4, is amended to read: 
 24.35     Subd. 4.  [NONREGULAR TRANSPORTATION.] A school district 
 24.36  may also make a levy for unreimbursed nonregular transportation 
 25.1   costs pursuant to this subdivision.  
 25.2      For the 1995-1996 school year, The amount of the levy shall 
 25.3   be the result of the following computation: 
 25.4      (1) multiply 
 25.5      (i) the amount of the district's nonregular transportation 
 25.6   revenue under section 124.225, subdivision 7d, that is more than 
 25.7   the product of $65 times the district's average daily 
 25.8   membership, by 
 25.9      (ii) 50 percent; 
 25.10     (2) subtract the result in clause (1) from the district's 
 25.11  total nonregular transportation revenue; 
 25.12     (3) multiply the result in clause (2) by the lesser of one 
 25.13  or the ratio of 
 25.14     (i) the quotient derived by dividing the adjusted net tax 
 25.15  capacity of the district for the year before the year the levy 
 25.16  is certified by the average daily membership in the district for 
 25.17  the school year to which the levy is attributable, to 
 25.18     (ii) $8,000. 
 25.19     Sec. 30.  Minnesota Statutes 1996, section 124.226, 
 25.20  subdivision 9, is amended to read: 
 25.21     Subd. 9.  [LATE ACTIVITY BUSES.] (a) For taxes payable in 
 25.22  1996, A school district may levy an amount equal to the lesser 
 25.23  of: 
 25.24     (1) the actual cost of late transportation home from 
 25.25  school, between schools within a district, or between schools in 
 25.26  one or more districts that have an agreement under sections 
 25.27  122.241 to 122.248, 122.535, 122.541, or 124.494, for pupils 
 25.28  involved in after school activities for the that school year 
 25.29  beginning in the year the levy is certified; or 
 25.30     (2) two percent of the sum of the district's regular 
 25.31  transportation revenue and the district's nonregular 
 25.32  transportation revenue for that school year according to section 
 25.33  124.225, subdivision 7d. 
 25.34     (b) A district that levies under this section must provide 
 25.35  late transportation from school for students participating in 
 25.36  any academic-related activities provided by the district if 
 26.1   transportation is provided for students participating in 
 26.2   athletic activities. 
 26.3      (c) Notwithstanding section 121.904, 50 percent of the levy 
 26.4   certified for taxes payable in 1994, and for each year 
 26.5   thereafter the entire amount of this levy, shall be recognized 
 26.6   as revenue for the fiscal year in which the levy is certified. 
 26.7      Sec. 31.  Minnesota Statutes 1996, section 124.226, 
 26.8   subdivision 10, is amended to read: 
 26.9      Subd. 10.  [TARGETED NEEDS TRANSPORTATION LEVY.] A school 
 26.10  district may make a levy for targeted needs transportation costs 
 26.11  according to this subdivision.  The amount of the levy shall be 
 26.12  the result of the following computation: 
 26.13     (1) For fiscal year years 1997 and later 1998, targeted 
 26.14  needs transportation levy equalization revenue equals 28 percent 
 26.15  of the sum of the district's special programs transportation 
 26.16  revenue under section 124.225, subdivision 14, and the 
 26.17  district's integration transportation revenue under section 
 26.18  124.225, subdivision 15. 
 26.19     (2) The targeted needs transportation levy equals the 
 26.20  result in clause (1) times the lesser of one or the ratio of (i) 
 26.21  the quotient derived by dividing the adjusted net tax capacity 
 26.22  of the district for the year before the year the levy is 
 26.23  certified by the actual pupil units in the district for the 
 26.24  school year to which the levy is attributable, to (ii) $3,540. 
 26.25     Sec. 32.  Minnesota Statutes 1996, section 124.912, 
 26.26  subdivision 1, is amended to read: 
 26.27     Subdivision 1.  [STATUTORY OBLIGATIONS.] (a) A school 
 26.28  district may levy: 
 26.29     (1) the amount authorized for liabilities of dissolved 
 26.30  districts pursuant to section 122.45; 
 26.31     (2) the amounts necessary to pay the district's obligations 
 26.32  under section 268.06, subdivision 25; and the amounts necessary 
 26.33  to pay for job placement services offered to employees who may 
 26.34  become eligible for benefits pursuant to section 268.08 for the 
 26.35  fiscal year the levy is certified; 
 26.36     (3) the amounts necessary to pay the district's obligations 
 27.1   under section 127.05; 
 27.2      (4) the amounts authorized by section 122.531; 
 27.3      (5) the amounts necessary to pay the district's obligations 
 27.4   under section 122.533; and 
 27.5      (6) for severance pay required by sections 120.08, 
 27.6   subdivision 3, and 122.535, subdivision 6. 
 27.7      (b) Each year, a member district of an education district 
 27.8   that levies under this subdivision must transfer the amount of 
 27.9   revenue certified under paragraph (b) to the education district 
 27.10  board according to this subdivision.  By June 20 and November 30 
 27.11  of each year, an amount must be transferred equal to: 
 27.12     (1) 50 percent times 
 27.13     (2) the amount certified in paragraph (b) minus homestead 
 27.14  and agricultural credit aid allocated for that levy according to 
 27.15  section 273.1398, subdivision 6. 
 27.16     Sec. 33.  Minnesota Statutes 1996, section 124.912, 
 27.17  subdivision 2, is amended to read: 
 27.18     Subd. 2.  [DESEGREGATION.] Each year, special school 
 27.19  district No. 1, Minneapolis, may levy an amount not to exceed 
 27.20  $197 times its actual pupil units for that fiscal year; 
 27.21  independent school district No. 625, St. Paul, may levy an 
 27.22  amount not to exceed $197 times its actual pupil units for that 
 27.23  fiscal year; and independent school district No. 709, Duluth, 
 27.24  may levy an amount not to exceed the sum of $660,000 and the 
 27.25  amount raised by a tax rate of 2.0 percent times the adjusted 
 27.26  net tax capacity of the district.  Notwithstanding section 
 27.27  121.904, the entire amount of this levy shall be recognized as 
 27.28  revenue for the fiscal year in which the levy is certified.  
 27.29  This levy shall not be considered in computing the aid reduction 
 27.30  under section 124.155. 
 27.31     Sec. 34.  Minnesota Statutes 1996, section 124.912, 
 27.32  subdivision 3, is amended to read: 
 27.33     Subd. 3.  [RULE COMPLIANCE.] Each year a district that is 
 27.34  required to implement a plan according to the requirements of 
 27.35  Minnesota Rules, parts 3535.0200 to 3535.2200, may levy an 
 27.36  amount not to exceed a net tax rate of 2.0 percent times the 
 28.1   adjusted net tax capacity of the district for taxes payable in 
 28.2   1991 and thereafter.  A district that levies according to 
 28.3   subdivision 2 may not levy according to this subdivision.  
 28.4   Notwithstanding section 121.904, the entire amount of this levy 
 28.5   shall be recognized as revenue for the fiscal year in which the 
 28.6   levy is certified.  This levy shall not be considered in 
 28.7   computing the aid reduction under section 124.155.  
 28.8      Sec. 35.  Minnesota Statutes 1996, section 124.916, 
 28.9   subdivision 1, is amended to read: 
 28.10     Subdivision 1.  [HEALTH INSURANCE.] (a) A school district 
 28.11  may levy the amount necessary to make employer contributions for 
 28.12  insurance for retired employees under this 
 28.13  subdivision.  Notwithstanding section 121.904, 50 percent of the 
 28.14  amount levied shall be recognized as revenue for the fiscal year 
 28.15  in which the levy is certified.  This levy shall not be 
 28.16  considered in computing the aid reduction under section 124.155. 
 28.17     (b) The school board of a joint vocational technical 
 28.18  district formed under sections 136C.60 to 136C.69 and the school 
 28.19  board of a school district may provide employer-paid hospital, 
 28.20  medical, and dental benefits to a person who: 
 28.21     (1) is eligible for employer-paid insurance under 
 28.22  collective bargaining agreements or personnel plans in effect on 
 28.23  June 30, 1992; 
 28.24     (2) has at least 25 years of service credit in the public 
 28.25  pension plan of which the person is a member on the day before 
 28.26  retirement or, in the case of a teacher, has a total of at least 
 28.27  25 years of service credit in the teachers retirement 
 28.28  association, a first-class city teacher retirement fund, or any 
 28.29  combination of these; 
 28.30     (3) upon retirement is immediately eligible for a 
 28.31  retirement annuity; 
 28.32     (4) is at least 55 and not yet 65 years of age; and 
 28.33     (5) retires on or after May 15, 1992, and before July 21, 
 28.34  1992. 
 28.35     A school board paying insurance under this subdivision may 
 28.36  not exclude any eligible employees. 
 29.1      (c) An employee who is eligible both for the health 
 29.2   insurance benefit under this subdivision and for an early 
 29.3   retirement incentive under a collective bargaining agreement or 
 29.4   personnel plan established by the employer must select either 
 29.5   the early retirement incentive provided under the collective 
 29.6   bargaining agreement personnel plan or the incentive provided 
 29.7   under this subdivision, but may not receive both.  For purposes 
 29.8   of this subdivision, a person retires when the person terminates 
 29.9   active employment and applies for retirement benefits.  The 
 29.10  retired employee is eligible for single and dependent coverages 
 29.11  and employer payments to which the person was entitled 
 29.12  immediately before retirement, subject to any changes in 
 29.13  coverage and employer and employee payments through collective 
 29.14  bargaining or personnel plans, for employees in positions 
 29.15  equivalent to the position from which the employee retired.  The 
 29.16  retired employee is not eligible for employer-paid life 
 29.17  insurance.  Eligibility ceases when the retired employee attains 
 29.18  the age of 65, or when the employee chooses not to receive the 
 29.19  retirement benefits for which the employee has applied, or when 
 29.20  the employee is eligible for employer-paid health insurance from 
 29.21  a new employer.  Coverages must be coordinated with relevant 
 29.22  health insurance benefits provided through the federally 
 29.23  sponsored Medicare program.  
 29.24     (d) Unilateral implementation of this section by a public 
 29.25  employer is not an unfair labor practice for purposes of chapter 
 29.26  179A.  The authority provided in this subdivision for an 
 29.27  employer to pay health insurance costs for certain retired 
 29.28  employees is not subject to the limits in section 179A.20, 
 29.29  subdivision 2a. 
 29.30     (e) If a school district levies according to this 
 29.31  subdivision, it may not also levy according to section 122.531, 
 29.32  subdivision 9, for eligible employees. 
 29.33     Sec. 36.  Minnesota Statutes 1996, section 124.916, 
 29.34  subdivision 2, is amended to read: 
 29.35     Subd. 2.  [RETIRED EMPLOYEE HEALTH BENEFITS.] For taxes 
 29.36  payable in 1996, 1997, 1998, and 1999 only, a school district 
 30.1   may levy an amount up to the amount the district is required by 
 30.2   the collective bargaining agreement in effect on March 30, 1992, 
 30.3   to pay for health insurance or unreimbursed medical expenses for 
 30.4   licensed and nonlicensed employees who have terminated services 
 30.5   in the employing district and withdrawn from active teaching 
 30.6   service or other active service, as applicable, before July 1, 
 30.7   1992.  The total amount of the levy each year may not exceed 
 30.8   $300,000.  
 30.9      Notwithstanding section 121.904, 50 percent of the proceeds 
 30.10  of this levy shall be recognized in the fiscal year in which it 
 30.11  is certified. 
 30.12     Sec. 37.  Minnesota Statutes 1996, section 124.916, 
 30.13  subdivision 3, is amended to read: 
 30.14     Subd. 3.  [RETIREMENT LEVIES.] (1) In addition to the 
 30.15  excess levy authorized in 1976 any district within a city of the 
 30.16  first class which was authorized in 1975 to make a retirement 
 30.17  levy under Minnesota Statutes 1974, section 275.127 and chapter 
 30.18  422A may levy an amount per pupil unit which is equal to the 
 30.19  amount levied in 1975 payable 1976, under Minnesota Statutes 
 30.20  1974, section 275.127 and chapter 422A, divided by the number of 
 30.21  pupil units in the district in 1976-1977. 
 30.22     (2) In 1979 and each year thereafter, any district which 
 30.23  qualified in 1976 for an extra levy under paragraph (1) shall be 
 30.24  allowed to levy the same amount as levied for retirement in 1978 
 30.25  under this clause reduced each year by ten percent of the 
 30.26  difference between the amount levied for retirement in 1971 
 30.27  under Minnesota Statutes 1971, sections 275.127 and 422.01 to 
 30.28  422.54 and the amount levied for retirement in 1975 under 
 30.29  Minnesota Statutes 1974, section 275.127 and chapter 422A. 
 30.30     (3) In 1991 and each year thereafter, a district to which 
 30.31  this subdivision applies may levy an additional amount required 
 30.32  for contributions to the Minneapolis employees retirement fund 
 30.33  as a result of the maximum dollar amount limitation on state 
 30.34  contributions to the fund imposed under section 422A.101, 
 30.35  subdivision 3.  The additional levy shall not exceed the most 
 30.36  recent amount certified by the board of the Minneapolis 
 31.1   employees retirement fund as the district's share of the 
 31.2   contribution requirement in excess of the maximum state 
 31.3   contribution under section 422A.101, subdivision 3.  
 31.4      (4) For taxes payable in 1994 and thereafter, special 
 31.5   school district No. 1, Minneapolis, and independent school 
 31.6   district No. 625, St. Paul, may levy for the increase in the 
 31.7   employer retirement fund contributions, under Laws 1992, chapter 
 31.8   598, article 5, section 1.  Notwithstanding section 121.904, the 
 31.9   entire amount of this levy may be recognized as revenue for the 
 31.10  fiscal year in which the levy is certified.  This levy shall not 
 31.11  be considered in computing the aid reduction under section 
 31.12  124.155. 
 31.13     (5) If the employer retirement fund contributions under 
 31.14  section 354A.12, subdivision 2a, are increased for fiscal year 
 31.15  1994 or later fiscal years, special school district No. 1, 
 31.16  Minneapolis, and independent school district No. 625, St. Paul, 
 31.17  may levy in payable 1994 or later an amount equal to the amount 
 31.18  derived by applying the net increase in the employer retirement 
 31.19  fund contribution rate of the respective teacher retirement fund 
 31.20  association between fiscal year 1993 and the fiscal year 
 31.21  beginning in the year after the levy is certified to the total 
 31.22  covered payroll of the applicable teacher retirement fund 
 31.23  association.  Notwithstanding section 121.904, the entire amount 
 31.24  of this levy may be recognized as revenue for the fiscal year in 
 31.25  which the levy is certified.  This levy shall not be considered 
 31.26  in computing the aid reduction under section 124.155.  If an 
 31.27  applicable school district levies under this paragraph, they may 
 31.28  not levy under paragraph (4). 
 31.29     (6) In addition to the levy authorized under paragraph (5), 
 31.30  special school district No. 1, Minneapolis, may also levy 
 31.31  payable in 1997 or later an amount equal to the contributions 
 31.32  under section 423A.02, subdivision 3, and may also levy in 
 31.33  payable 1994 or later an amount equal to the state aid 
 31.34  contribution under section 354A.12, subdivision 3b.  Independent 
 31.35  school district No. 625, St. Paul, may levy payable in 1997 or 
 31.36  later an amount equal to the supplemental contributions under 
 32.1   section 423A.02, subdivision 3.  Notwithstanding section 
 32.2   121.904, the entire amount of these levies may be recognized as 
 32.3   revenue for the fiscal year in which the levy is certified.  
 32.4   These levies shall not be considered in computing the aid 
 32.5   reduction under section 124.155. 
 32.6      Sec. 38.  Minnesota Statutes 1996, section 124.918, 
 32.7   subdivision 6, is amended to read: 
 32.8      Subd. 6.  [ADJUSTMENTS FOR LAW CHANGES.] Whenever a change 
 32.9   enacted in law changes the levy authority for a school district 
 32.10  or an intermediate school district for a fiscal year after the 
 32.11  levy for that fiscal year has been certified by the district 
 32.12  under section 275.07, the department of children, families, and 
 32.13  learning shall adjust the next levy certified by the district by 
 32.14  the amount of the change in levy authority for that fiscal year 
 32.15  resulting from the change.  Notwithstanding section 121.904, the 
 32.16  entire amount for fiscal year 1992 and 50 percent for fiscal 
 32.17  years thereafter of the levy adjustment must be recognized as 
 32.18  revenue in the fiscal year the levy is certified, if sufficient 
 32.19  levy resources are available under generally accepted accounting 
 32.20  principles in the district fund where the adjustment is to 
 32.21  occur.  School districts that do not have sufficient levy 
 32.22  resources available in the fund where the adjustment is to occur 
 32.23  shall recognize in the fiscal year the levy is certified an 
 32.24  amount equal to the levy resources available.  The remaining 
 32.25  adjustment amount shall be recognized as revenue in the fiscal 
 32.26  year after the levy is certified. 
 32.27     Sec. 39.  Minnesota Statutes 1996, section 124A.03, 
 32.28  subdivision 1c, is amended to read: 
 32.29     Subd. 1c.  [REFERENDUM ALLOWANCE LIMIT.] Notwithstanding 
 32.30  subdivision 1b, a district's referendum allowance must not 
 32.31  exceed the greater of:  
 32.32     (1) the district's referendum allowance for fiscal year 
 32.33  1994; or 
 32.34     (2) 25 percent of the formula allowance minus $300 for 
 32.35  fiscal year 1997 and later; or 
 32.36     (3) for a newly reorganized district created after July 1, 
 33.1   1994, the sum of the referendum revenue authority for the 
 33.2   reorganizing districts for the fiscal year preceding the 
 33.3   reorganization, divided by the sum of the actual pupil units of 
 33.4   the reorganizing districts for the fiscal year preceding the 
 33.5   reorganization. 
 33.6      Sec. 40.  Minnesota Statutes 1996, section 124A.036, 
 33.7   subdivision 5, is amended to read: 
 33.8      Subd. 5.  [ALTERNATIVE ATTENDANCE PROGRAMS.] The general 
 33.9   education aid for districts must be adjusted for each pupil 
 33.10  attending a nonresident district under sections 120.062, 
 33.11  120.075, 120.0751, 120.0752, 124C.45 to 124C.48, and 126.22.  
 33.12  The adjustments must be made according to this subdivision. 
 33.13     (a) General education aid paid to a resident district must 
 33.14  be reduced by an amount equal to the sum of: 
 33.15     (1) the general education revenue exclusive of compensatory 
 33.16  basic skills revenue; and 
 33.17     (2) the referendum equalization revenue approved or renewed 
 33.18  after July 1, 1997, attributable to the pupil in the resident 
 33.19  district. 
 33.20     (b) General education aid paid to a district serving a 
 33.21  pupil in programs listed in this subdivision shall be increased 
 33.22  by an amount equal to the sum of: 
 33.23     (1) the general education revenue exclusive of compensatory 
 33.24  basic skills revenue; and 
 33.25     (2) the referendum equalization revenue approved or renewed 
 33.26  after July 1, 1997, attributable to the pupil in the nonresident 
 33.27  district.  
 33.28     (c) If the amount of the reduction to be made from the 
 33.29  general education aid of the resident district is greater than 
 33.30  the amount of general education aid otherwise due the district, 
 33.31  the excess reduction must be made from other state aids due the 
 33.32  district. 
 33.33     (d) The district of residence shall pay tuition to a 
 33.34  district or an area learning center, operated according to 
 33.35  paragraph (e), providing special instruction and services to a 
 33.36  pupil with a disability, as defined in section 120.03, or a 
 34.1   pupil, as defined in section 120.181, who is enrolled in a 
 34.2   program listed in this subdivision.  The tuition shall be equal 
 34.3   to (1) the actual cost of providing special instruction and 
 34.4   services to the pupil, including a proportionate amount for debt 
 34.5   service and for capital expenditure facilities and equipment, 
 34.6   and debt service but not including any amount for 
 34.7   transportation, minus (2) the amount of general education aid, 
 34.8   the amount of capital expenditure facilities aid and capital 
 34.9   expenditure equipment aid received under section 124.245, 
 34.10  subdivision 6, and special education aid, attributable to that 
 34.11  pupil, that is received by the district providing special 
 34.12  instruction and services. 
 34.13     (e) An area learning center operated by a service 
 34.14  cooperative, intermediate district, education district, or a 
 34.15  joint powers cooperative may elect through the action of the 
 34.16  constituent boards to charge tuition for pupils rather than to 
 34.17  calculate general education aid adjustments under paragraph (a), 
 34.18  (b), or (c).  The tuition must be equal to the greater of the 
 34.19  average general education revenue per pupil unit attributable to 
 34.20  the pupil, or the actual cost of providing the instruction, 
 34.21  excluding transportation costs, if the pupil meets the 
 34.22  requirements of section 120.03 or 120.181. 
 34.23     Sec. 41.  Minnesota Statutes 1996, section 124A.036, 
 34.24  subdivision 6, is amended to read: 
 34.25     Subd. 6.  [CHARTER SCHOOLS.] (a) The general education aid 
 34.26  for districts must be adjusted for each pupil attending a 
 34.27  charter school under section 120.064.  The adjustments must be 
 34.28  made according to this subdivision. 
 34.29     (b) General education aid paid to a resident district must 
 34.30  be reduced by an amount equal to the sum of: 
 34.31     (1) the general education revenue exclusive of compensatory 
 34.32  basic skills revenue; and 
 34.33     (2) the referendum equalization revenue approved or renewed 
 34.34  after July 1, 1997. 
 34.35     (c) General education aid paid to a district in which a 
 34.36  charter school not providing transportation according to section 
 35.1   120.064, subdivision 15, is located shall be increased by an 
 35.2   amount equal to the product of:  (1) the sum of $170, plus the 
 35.3   transportation sparsity allowance for the district, plus the 
 35.4   transportation transition allowance for the district; times (2) 
 35.5   the pupil units attributable to the pupil.  
 35.6      (d) If the amount of the reduction to be made from the 
 35.7   general education aid of the resident district is greater than 
 35.8   the amount of general education aid otherwise due the district, 
 35.9   the excess reduction must be made from other state aids due the 
 35.10  district. 
 35.11     Sec. 42.  Minnesota Statutes 1996, section 124A.04, 
 35.12  subdivision 2, is amended to read: 
 35.13     Subd. 2.  [1993 1999 AND LATER.] The training and 
 35.14  experience index for fiscal year 1999 and later must be 
 35.15  constructed in the following manner:  
 35.16     (a) The department shall construct a matrix that classifies 
 35.17  teachers by the extent of training received in accredited 
 35.18  institutions of higher education and by the years of experience 
 35.19  that districts take into account in determining teacher salaries.
 35.20     (b) The average salary for each cell of the matrix must be 
 35.21  computed as follows using data from the second year of the 
 35.22  previous biennium fiscal year 1997:  
 35.23     (1) For each school district, multiply the salary paid to 
 35.24  full-time equivalent teachers with that combination of training 
 35.25  and experience according to the district's teacher salary 
 35.26  schedule by the number of actual pupil units in that district.  
 35.27     (2) Add the amounts computed in clause (1) for all 
 35.28  districts in the state and divide the resulting sum by the total 
 35.29  number of actual pupil units in all districts in the state that 
 35.30  employ teachers.  
 35.31     (c) For each cell in the matrix, compute the ratio of the 
 35.32  average salary in that cell to the average salary for all 
 35.33  teachers in the state during fiscal year 1997.  
 35.34     (d) The index for each district that employs teachers 
 35.35  equals the sum of:  (i) for teachers employed in that district 
 35.36  during fiscal year 1997 and the current fiscal year, the ratios 
 36.1   for each teacher computed using data for fiscal year 1997; and 
 36.2   (ii) for teachers employed in that district during the current 
 36.3   fiscal year but not during fiscal year 1997, the ratio for 
 36.4   teachers who are in their first year of teaching and who have no 
 36.5   additional credits or degrees above a bachelor's degree divided 
 36.6   by the number of teachers in that district.  The index for a 
 36.7   district that employs no teachers is zero. 
 36.8      Sec. 43.  Minnesota Statutes 1996, section 124A.22, 
 36.9   subdivision 1, is amended to read: 
 36.10     Subdivision 1.  [GENERAL EDUCATION REVENUE.] (a) For fiscal 
 36.11  year 1996, the general education revenue for each district 
 36.12  equals the sum of the district's basic revenue, compensatory 
 36.13  education revenue, training and experience revenue, secondary 
 36.14  sparsity revenue, elementary sparsity revenue, and supplemental 
 36.15  revenue. 
 36.16     (b) For fiscal year years 1997 and thereafter 1998, the 
 36.17  general education revenue for each district equals the sum of 
 36.18  the district's basic revenue, compensatory education revenue, 
 36.19  secondary sparsity revenue, elementary sparsity revenue, 
 36.20  transportation sparsity revenue, total operating capital 
 36.21  revenue, transition revenue, and supplemental revenue. 
 36.22     (b) For fiscal year 1999 and thereafter, the general 
 36.23  education revenue for each district equals the sum of the 
 36.24  district's basic revenue, basic skills revenue, training and 
 36.25  experience revenue, secondary sparsity revenue, elementary 
 36.26  sparsity revenue, total operating capital revenue, transition 
 36.27  revenue, and supplemental revenue. 
 36.28     Sec. 44.  Minnesota Statutes 1996, section 124A.22, 
 36.29  subdivision 2, as amended by Laws 1997, chapter 1, section 4, is 
 36.30  amended to read: 
 36.31     Subd. 2.  [BASIC REVENUE.] The basic revenue for each 
 36.32  district equals the formula allowance times the actual pupil 
 36.33  units for the school year.  The formula allowance for fiscal 
 36.34  year 1995 is $3,150.  The formula allowance for fiscal year 1996 
 36.35  is $3,205.  The formula allowance for fiscal year 1997 and 
 36.36  subsequent fiscal years is $3,505.  The formula allowance for 
 37.1   fiscal year 1998 is $3,580 and the formula allowance for fiscal 
 37.2   year 1999 and subsequent fiscal years is $3,355. 
 37.3      Sec. 45.  Minnesota Statutes 1996, section 124A.22, 
 37.4   subdivision 3, is amended to read: 
 37.5      Subd. 3.  [FISCAL YEAR 1998 COMPENSATORY EDUCATION 
 37.6   REVENUE.] The compensatory education revenue for each 
 37.7   district for fiscal year 1998 equals the formula allowance less 
 37.8   $300 times the AFDC pupil units computed according to section 
 37.9   124.17, subdivision 1d. 
 37.10     Sec. 46.  Minnesota Statutes 1996, section 124A.22, is 
 37.11  amended by adding a subdivision to read: 
 37.12     Subd. 3a.  [BASIC SKILLS REVENUE.] For fiscal year 1999 and 
 37.13  thereafter, a school district's basic skills revenue equals the 
 37.14  sum of: 
 37.15     (1) the formula allowance times the MFIP-S adjustment 
 37.16  factor times the AFDC pupil units computed according to section 
 37.17  124.17, subdivision 1d; plus 
 37.18     (2) the limited English proficiency revenue according to 
 37.19  section 124.273, subdivision 1g; plus 
 37.20     (3) $175 times the limited English proficiency pupil units 
 37.21  according to section 124.17, subdivision 6; plus 
 37.22     (4) the lesser of:  (i) $22 times the number of fund 
 37.23  balance pupil units in kindergarten to grade 8; or (ii) the 
 37.24  amount of district money provided to match basic skills revenue 
 37.25  for the purposes described in section 124A.28. 
 37.26     The MFIP-S adjustment factor equals .877 for fiscal year 
 37.27  2000 and .862 for fiscal year 2001. 
 37.28     Sec. 47.  Minnesota Statutes 1996, section 124A.22, 
 37.29  subdivision 6, is amended to read: 
 37.30     Subd. 6.  [SECONDARY SPARSITY REVENUE.] (a) A district's 
 37.31  secondary sparsity revenue for a school year equals the sum of 
 37.32  the results of the following calculation for each qualifying 
 37.33  high school in the district: 
 37.34     (1) the formula allowance for the school year less $300, 
 37.35  multiplied by 
 37.36     (2) the secondary average daily membership of the high 
 38.1   school, multiplied by 
 38.2      (3) the quotient obtained by dividing 400 minus the 
 38.3   secondary average daily membership by 400 plus the secondary 
 38.4   daily membership, multiplied by 
 38.5      (4) the lesser of 1.5 or the quotient obtained by dividing 
 38.6   the isolation index minus 23 by ten. 
 38.7      (b) A newly formed school district that is the result of 
 38.8   districts combining under the cooperation and combination 
 38.9   program or consolidating under section 122.23 shall receive 
 38.10  secondary sparsity revenue equal to the greater of:  (1) the 
 38.11  amount calculated under paragraph (a) for the combined district; 
 38.12  or (2) the sum of the amounts of secondary sparsity revenue the 
 38.13  former school districts had in the year prior to consolidation, 
 38.14  increased for any subsequent changes in the secondary sparsity 
 38.15  formula. 
 38.16     Sec. 48.  Minnesota Statutes 1996, section 124A.22, 
 38.17  subdivision 6a, is amended to read: 
 38.18     Subd. 6a.  [ELEMENTARY SPARSITY REVENUE.] A district's 
 38.19  elementary sparsity revenue equals the sum of the following 
 38.20  amounts for each qualifying elementary school in the district:  
 38.21     (1) the formula allowance for the year less $300, 
 38.22  multiplied by 
 38.23     (2) the elementary average daily membership of the school, 
 38.24  multiplied by 
 38.25     (3) the quotient obtained by dividing 140 minus the 
 38.26  elementary average daily membership by 140 plus the average 
 38.27  daily membership. 
 38.28     Sec. 49.  Minnesota Statutes 1996, section 124A.22, 
 38.29  subdivision 13b, is amended to read: 
 38.30     Subd. 13b.  [TRANSITION ALLOWANCE.] (a) A district's 
 38.31  transportation transition allowance for fiscal year 1997 equals 
 38.32  the result of the following computation: 
 38.33     (1) if the result in subdivision 13a, paragraph (a), clause 
 38.34  (iii), for fiscal year 1997 is less than the fiscal year 1996 
 38.35  base allowance, the transportation transition allowance equals 
 38.36  the fiscal year 1996 base allowance minus the result in 
 39.1   subdivision 13a, paragraph (a), clause (iii). 
 39.2      (2) if the result in subdivision 13a, paragraph (b), for 
 39.3   fiscal year 1997 is greater than the fiscal year 1996 base 
 39.4   allowance and less than 110 percent of the fiscal year 1996 base 
 39.5   allowance, the transportation transition allowance equals zero. 
 39.6      (3) if the result in subdivision 13a, paragraph (b), for 
 39.7   fiscal year 1997 is greater than 110 percent of the fiscal year 
 39.8   1996 base allowance, the transportation transition allowance 
 39.9   equals 110 percent of the fiscal year 1996 base allowance minus 
 39.10  the result in subdivision 13a, paragraph (a), clause (iii). 
 39.11     (b) A district's transportation transition allowance for 
 39.12  fiscal year 1998 equals the result of the following: 
 39.13     (1) if the result in subdivision 13a, paragraph (a), clause 
 39.14  (iii), for fiscal year 1998 is less than the fiscal year 1996 
 39.15  base allowance, the transportation transition allowance equals 
 39.16  the fiscal year 1996 base allowance minus the result in 
 39.17  subdivision 13a, paragraph (a), clause (iii); or 
 39.18     (2) if the result in subdivision 13a, paragraph (a), clause 
 39.19  (iii), for fiscal year 1998 is greater than or equal to the 
 39.20  fiscal year 1996 base allowance, the transportation transition 
 39.21  allowance equals zero. 
 39.22     (c) For fiscal years 1997 and 1998, a district's training 
 39.23  and experience transition allowance is equal to the training and 
 39.24  experience revenue the district would have received under 
 39.25  Minnesota Statutes 1994, section 124A.22, subdivision 4, divided 
 39.26  by the actual pupil units for fiscal year 1997 minus $130.  For 
 39.27  fiscal year 1999 and later, a district's training and experience 
 39.28  transition allowance equals zero.  
 39.29     If the training and experience transition allowance is less 
 39.30  than zero, the reduction shall be determined according to the 
 39.31  following schedule: 
 39.32     (i) (1) for fiscal year 1997, the reduction is equal to .9 
 39.33  times the amount initially determined; 
 39.34     (ii) (2) for fiscal year 1998, the reduction is equal to 
 39.35  .75 times the amount initially determined; and 
 39.36     (iii) for fiscal year 1999, the reduction is equal to .50 
 40.1   times the amount initially determined; 
 40.2      (iv) for fiscal year 2000, the reduction is equal to .25 
 40.3   times the amount initially determined; and 
 40.4      (v) for fiscal year 2001 and thereafter, the transition 
 40.5   allowance shall not be less than zero 
 40.6      (3) a district's transition cooperation allowance equals 
 40.7   the greater of:  (i) zero; or (ii) the difference between 
 40.8   $25,000 and the product of $67 times the district's actual pupil 
 40.9   units for the 1997-1998 school year all divided by the 
 40.10  district's actual pupil units for the 1997-1998 school year.  
 40.11     (d) (b) A district's transition allowance for fiscal year 
 40.12  1997 1999 and thereafter is equal to the sum of its 
 40.13  transportation transition allowance and its training and 
 40.14  experience its transition cooperation allowance. 
 40.15     Sec. 50.  Minnesota Statutes 1996, section 124A.225, 
 40.16  subdivision 4, is amended to read: 
 40.17     Subd. 4.  [REVENUE USE.] (a) Revenue must be used according 
 40.18  to either paragraph (b), (c), or (d). 
 40.19     (b) Revenue shall be used to reduce and maintain the 
 40.20  district's instructor to learner ratios in kindergarten through 
 40.21  grade 6 to a level of 1 to 17 on average. The district must 
 40.22  prioritize the use of the revenue to attain this level initially 
 40.23  in kindergarten and grade 1 and then through the subsequent 
 40.24  grades as revenue is available.  Once the ratios in kindergarten 
 40.25  and grade 1 have been reduced to a level of 1 to 17 on average, 
 40.26  the district is allowed to use the revenue to reduce 
 40.27  instructor-learner ratios in other elementary grades if the 
 40.28  district determines priority must be given to those elementary 
 40.29  pupils. 
 40.30     (c) Notwithstanding paragraph (b), for fiscal year 1995, a 
 40.31  district with exceptional need as defined in subdivision 6, 
 40.32  paragraph (a), may use the revenue to reduce and maintain the 
 40.33  district's instructor-to-learner ratios in kindergarten through 
 40.34  grade 6 to a level that is at least 2.0 less than the district's 
 40.35  adopted staffing ratio, if the remaining learning and 
 40.36  development revenue is used to continue or initiate staffing 
 41.1   patterns that meet the needs of a diverse student population.  
 41.2   Programs to meet the needs of a diverse student population may 
 41.3   include programs for at-risk pupils and learning enrichment 
 41.4   programs. 
 41.5      (d) For fiscal year 1995 only, in any school building that 
 41.6   meets the characteristics of exceptional need as defined in 
 41.7   subdivision 6, paragraph (b), a district may use the revenue to 
 41.8   employ education assistants or aides supervised by a learner's 
 41.9   regular instructor to assist learners in those school buildings. 
 41.10     (e) The revenue may be used to prepare and use an 
 41.11  individualized learning plan for each learner.  A district must 
 41.12  not increase the district wide instructor-learner ratios in 
 41.13  other grades as a result of reducing instructor-learner ratios 
 41.14  in kindergarten through grade 6.  Revenue may not be used to 
 41.15  provide instructor preparation time or to provide the district's 
 41.16  share of revenue required under section 124.311.  A school 
 41.17  district may use a portion of the revenue reserved under this 
 41.18  section to employ up to the same number of full-time equivalent 
 41.19  education assistants or aides as the district employed during 
 41.20  the 1992-1993 school year under Minnesota Statutes 1992, section 
 41.21  124.331, subdivision 2. 
 41.22     Sec. 51.  Minnesota Statutes 1996, section 124A.23, 
 41.23  subdivision 1, is amended to read: 
 41.24     Subdivision 1.  [GENERAL EDUCATION TAX RATE.] The 
 41.25  commissioner shall establish the general education tax rate by 
 41.26  July 1 of each year for levies payable in the following year.  
 41.27  The general education tax capacity rate shall be a rate, rounded 
 41.28  up to the nearest tenth of a percent, that, when applied to the 
 41.29  adjusted net tax capacity for all districts, raises the amount 
 41.30  specified in this subdivision.  The general education tax rate 
 41.31  shall be the rate that raises $1,054,000,000 for fiscal year 
 41.32  1996 and $1,359,000,000 for fiscal year 1997 and 1998, 
 41.33  $1,368,000,000 for fiscal year 1999, and $1,408,000,000 for 
 41.34  fiscal year 2000, and later fiscal years.  The general education 
 41.35  tax rate may not be changed due to changes or, corrections made 
 41.36  to a district's adjusted net tax capacity after the tax rate has 
 42.1   been established. 
 42.2      Sec. 52.  Minnesota Statutes 1996, section 124A.23, 
 42.3   subdivision 3, is amended to read: 
 42.4      Subd. 3.  [GENERAL EDUCATION LEVY; DISTRICTS OFF THE 
 42.5   FORMULA.] If the amount of the general education levy for a 
 42.6   district exceeds the district's general education revenue, 
 42.7   excluding training and experience transition revenue and 
 42.8   supplemental revenue, the amount of the general education levy 
 42.9   shall be limited to the following: 
 42.10     (1) the district's general education revenue, excluding 
 42.11  training and experience transition revenue and supplemental 
 42.12  revenue; plus 
 42.13     (2) the amount of the aid reduction for the same school 
 42.14  year according to section 124A.24; minus 
 42.15     (3) payments made for the same school year according to 
 42.16  section 124A.035, subdivision 4. 
 42.17     For purposes of statutory cross-reference, a levy made 
 42.18  according to this subdivision shall be construed to be the levy 
 42.19  made according to subdivision 2. 
 42.20     Sec. 53.  Minnesota Statutes 1996, section 124A.26, 
 42.21  subdivision 1, is amended to read: 
 42.22     Subdivision 1.  [REVENUE REDUCTION.] A district's general 
 42.23  education revenue for a school year shall be reduced if the 
 42.24  estimated net unappropriated operating fund balance as of June 
 42.25  30 in the prior school year exceeds 25 percent of the formula 
 42.26  allowance for the current fiscal year times the fund balance 
 42.27  pupil units in the prior year.  For purposes of this subdivision 
 42.28  and section 124.243, subdivision 2, fund balance pupil units 
 42.29  means the number of resident pupil units in average daily 
 42.30  membership, including shared time pupils, according to section 
 42.31  124A.02, subdivision 20, plus 
 42.32     (1) pupils attending the district for which general 
 42.33  education aid adjustments are made according to section 
 42.34  124A.036, subdivision 5; minus 
 42.35     (2) the sum of the resident pupils attending other 
 42.36  districts for which general education aid adjustments are made 
 43.1   according to section 124A.036, subdivision 5, plus pupils for 
 43.2   whom payment is made according to section 126.22, subdivision 8, 
 43.3   or 126.23.  The amount of the reduction shall equal the lesser 
 43.4   of: 
 43.5      (1) the amount of the excess, or 
 43.6      (2) $250 times the actual pupil units for the school year. 
 43.7      The final adjustment payments made under section 124.195, 
 43.8   subdivision 6, must be adjusted to reflect actual net operating 
 43.9   fund balances as of June 30 of the prior school year. 
 43.10     Sec. 54.  Minnesota Statutes 1996, section 124A.28, is 
 43.11  amended to read: 
 43.12     124A.28 [COMPENSATORY EDUCATION BASIC SKILLS REVENUE.] 
 43.13     Subdivision 1.  [USE OF THE REVENUE.] The compensatory 
 43.14  education basic skills revenue under section 124A.22, 
 43.15  subdivision 3 3a, must be used to meet the educational needs of 
 43.16  pupils whose educational achievement progress toward meeting 
 43.17  state or local content or performance standards is below the 
 43.18  level that is appropriate for pupils learners of their age.  
 43.19  These needs may be met by providing the Any of the following may 
 43.20  be provided to meet these learners' needs: 
 43.21     (1) direct instructional services under the assurance of 
 43.22  mastery program according to section 124.311 124.3111; 
 43.23     (2) remedial instruction in reading, language arts, and 
 43.24  mathematics, other content areas, or study skills to improve the 
 43.25  achievement level of these pupils learners; 
 43.26     (3) additional teachers and teacher aides to provide more 
 43.27  individualized instruction to these pupils learners through 
 43.28  individual tutoring, lower instructor-to-learner ratios, or team 
 43.29  teaching; 
 43.30     (4) summer programs that enable these pupils to improve 
 43.31  their achievement or that reemphasize material taught during the 
 43.32  regular school year; 
 43.33     (5) in-service education comprehensive and ongoing staff 
 43.34  development consistent with district and site plans according to 
 43.35  section 126.70, for teachers, teacher aides, principals, and 
 43.36  other personnel to improve their ability to recognize identify 
 44.1   the needs of these pupils learners and provide 
 44.2   appropriate responses to the pupils' needs remediation, 
 44.3   intervention, accommodations, or modifications; 
 44.4      (6) for instructional material for these pupils including:  
 44.5   textbooks, workbooks, periodicals, pamphlets, photographs, 
 44.6   reproductions, filmstrips, prepared slides, prerecorded video 
 44.7   programs, sound recordings, desk charts, games, study prints and 
 44.8   pictures, desk maps, models, learning kits, blocks and cubes, 
 44.9   flashcards, instructional computer software programs, pencils, 
 44.10  pens, crayons, notebooks, duplicating fluids, and 
 44.11  papers materials and technology appropriate for meeting the 
 44.12  individual needs of these learners; 
 44.13     (7) programs to reduce truancy, encourage completion of 
 44.14  high school, enhance self-concept, provide health services, 
 44.15  provide nutrition services, provide a safe and secure learning 
 44.16  environment, provide coordination for pupils receiving services 
 44.17  from other governmental agencies, provide psychological services 
 44.18  to determine the level of social, emotional, cognitive, and 
 44.19  intellectual development, and provide counseling services, 
 44.20  guidance services, and social work services; 
 44.21     (8) bilingual programs, bicultural programs, and programs 
 44.22  for pupils learners of limited English proficiency; 
 44.23     (9) all day kindergarten; 
 44.24     (10) extended school day and extended school year programs; 
 44.25  and 
 44.26     (11) substantial parent involvement in developing and 
 44.27  implementing remedial education or intervention plans for a 
 44.28  learner, including learning contracts between the school, the 
 44.29  learner, and the parent that establish achievement goals and 
 44.30  responsibilities of the learner and the learner's parent or 
 44.31  guardian; and 
 44.32     (12) other methods to increase achievement, as needed.  
 44.33     Subd. 1a.  [BUILDING ALLOCATION.] A district must consider 
 44.34  the concentration of children from low-income families, children 
 44.35  with limited English proficiency, and children whose progress 
 44.36  toward meeting state or local content or performance standards 
 45.1   is below the level that is appropriate for learners of their age 
 45.2   in each school building in the district when allocating 
 45.3   compensatory basic skills revenue. 
 45.4      Subd. 2.  [SEPARATE ACCOUNTS.] Each district that 
 45.5   receives compensatory education basic skills revenue shall 
 45.6   maintain separate accounts to identify expenditures for salaries 
 45.7   and programs related to this revenue. 
 45.8      Subd. 3.  [ANNUAL EXPENDITURE REPORT.] Each year a district 
 45.9   that receives compensatory education basic skills revenue shall 
 45.10  submit a report identifying the expenditures it incurred in 
 45.11  providing compensatory education to the pupils described in to 
 45.12  meet the needs of eligible learners under subdivision 1.  The 
 45.13  report must conform to uniform financial and reporting standards 
 45.14  established for this purpose. 
 45.15     Sec. 55.  Laws 1991, chapter 265, article 1, section 30, as 
 45.16  amended by Laws 1993, chapter 224, article 8, section 19, is 
 45.17  amended to read: 
 45.18     Sec. 30.  [BADGER SCHOOL DISTRICT FUND BALANCE.] 
 45.19     If independent school district No. 676, Badger, receives 
 45.20  payment of delinquent property taxes from one taxpayer and the 
 45.21  payment is more than five percent of the total property taxes 
 45.22  paid in the fiscal year in which the payment is received, 
 45.23  general education revenue for the district shall not be reduced 
 45.24  according to Minnesota Statutes, section 124A.26, subdivision 1, 
 45.25  for an excess fund balance attributed to the payment for the 
 45.26  following five ten fiscal years. 
 45.27     Sec. 56.  Laws 1992, chapter 499, article 7, section 31, is 
 45.28  amended to read: 
 45.29     Sec. 31.  [REPEALER.] 
 45.30     Minnesota Statutes 1990, sections 124A.02, subdivision 24; 
 45.31  124A.23, subdivisions 2 and 3; 124A.26, subdivisions 2 and 3; 
 45.32  124A.27; 124A.28; and 124A.29, subdivision 2; and Minnesota 
 45.33  Statutes 1991 Supplement, sections 124A.02, subdivisions 16 and 
 45.34  23; 124A.03, subdivisions 1b, 1c, 1d, 1e, 1f, 1g, 1h, and 1i; 
 45.35  124A.04; 124A.22, subdivisions 2, 3, 4, 4a, 4b, 8, and 9; 
 45.36  124A.23, subdivisions 1, 4, and 5; 124A.24; 124A.26, subdivision 
 46.1   1; and 124A.29, subdivision 1, are repealed effective June 30, 
 46.2   1999; Laws 1991, chapter 265, article 7, section 35, is repealed.
 46.3      Sec. 57.  Laws 1995, First Special Session chapter 3, 
 46.4   article 1, section 56, is amended to read: 
 46.5      Sec. 56.  [SUPPLEMENTAL REVENUE REDUCTION.] 
 46.6      For fiscal years 1996 and 1997, If a district's ratio of 
 46.7   1992 adjusted net tax capacity divided by 1994-1995 actual pupil 
 46.8   units to $9,025 is less than or equal to .25, then the 
 46.9   difference under Minnesota Statutes, section 124A.22, 
 46.10  subdivision 9, clause (2), is equal to $25 for purposes of 
 46.11  computing the district's supplemental revenue under Minnesota 
 46.12  Statutes, section 124A.22, subdivision 8.  For purposes of 
 46.13  computing the referendum allowance reduction under Minnesota 
 46.14  Statutes, section 124A.03, subdivision 3b, the supplemental 
 46.15  revenue reduction shall be computed according to Minnesota 
 46.16  Statutes, section 124A.22, subdivision 9. 
 46.17     Sec. 58.  Laws 1995, First Special Session chapter 3, 
 46.18  article 2, section 52, is amended to read: 
 46.19     Sec. 52.  [TRANSPORTATION AIDS AND LEVIES; SUSPENSION.] 
 46.20     Minnesota Statutes 1994, sections 124.225, subdivisions 1, 
 46.21  3a, 7a, 7b, 7d, 7e, 8a, and 8k, 8m, and 10; and 124.226, 
 46.22  subdivisions 1, 2, 3a, 4, 5, 6, 7, and 8, do not apply to aids 
 46.23  payable in fiscal years 1997 and 1998 or to levies made in 1995 
 46.24  and 1996 for taxes payable in 1996 and 1997. 
 46.25     Sec. 59.  [PILOT PROJECT.] 
 46.26     Subdivision 1.  [FOUR-PERIOD DAY CURRICULUM PROJECT.] The 
 46.27  senior high site councils in the independent school district No. 
 46.28  833, south Washington county, shall develop and implement a 
 46.29  model four-period day curriculum during the 1997-1998 and 
 46.30  1998-1999 school years.  The site councils shall seek input from 
 46.31  parents, teachers, and students in the design and implementation 
 46.32  of the four-period day model.  If one or more site councils 
 46.33  determine a four-period day model is not desirable, the site 
 46.34  council shall report its recommendations back to the board and 
 46.35  need not proceed with the development and implementation of the 
 46.36  model. 
 47.1      Subd. 2.  [MONITORING AND REPORT.] The south Washington 
 47.2   county school board shall develop a system for monitoring and 
 47.3   evaluating the development and implementation of the four-period 
 47.4   day models at its high schools.  The board shall monitor and 
 47.5   evaluate:  (1) the process used by the site council to discuss, 
 47.6   develop, and implement a four-period day; and (2) the academic 
 47.7   outcomes of students after the four-period day has been fully 
 47.8   implemented.  To evaluate the academic outcomes of students, the 
 47.9   district shall compare the academic achievement of its high 
 47.10  school students with the achievement of students in similar 
 47.11  school districts using a six-period day model.  The board shall 
 47.12  report the results of its evaluation to the commissioner of 
 47.13  children, families, and learning on August 30, 1998, and August 
 47.14  30, 1999.  The reports shall include a detailed description of 
 47.15  the site-based, decision-making model that was used to develop 
 47.16  and implement the four-period day and the steps that were taken 
 47.17  to successfully implement and evaluate the model. 
 47.18     Subd. 3.  [CLASS SIZE MITIGATION PILOT 
 47.19  PROJECT.] Independent school district No. 833, South Washington 
 47.20  County, shall complete a class size mitigation pilot project to 
 47.21  explore options for improving learning outcomes in elementary 
 47.22  and junior high classrooms with 30 or more students.  The 
 47.23  options for mitigating the adverse impacts of large class sizes 
 47.24  shall be developed and implemented using a site-based management 
 47.25  decision-making process.  The district shall report the results 
 47.26  of its pilot project to the commissioner of children, families, 
 47.27  and learning by August 30, 1998. 
 47.28     Sec. 60.  [RESTORATION OF REVENUE LOST TO FUND BALANCE 
 47.29  REDUCTION; MADELIA.] 
 47.30     Subdivision 1.  [AID ADJUSTMENT.] Notwithstanding Minnesota 
 47.31  Statutes, section 124A.26, subdivision 3, general education aid 
 47.32  for independent school district No. 837, Madelia, shall not be 
 47.33  reduced for fiscal year 1997. 
 47.34     Subd. 2.  [LEVY ADJUSTMENT.] Independent school district No.
 47.35  837, Madelia, may make a positive levy adjustment for taxes 
 47.36  payable in 1998 equal to the amount of the general education 
 48.1   levy reduction required under Minnesota Statutes, section 
 48.2   124A.26, subdivision 2, attributed to fiscal year 1997. 
 48.3      Sec. 61.  [RESTORATION OF REVENUE LOST TO FUND BALANCE 
 48.4   REDUCTION; HERMAN-NORCROSS.] 
 48.5      Subdivision 1.  [AID ADJUSTMENT.] Notwithstanding Minnesota 
 48.6   Statutes, section 124A.26, subdivision 3, general education aid 
 48.7   for independent school district No. 264, Herman-Norcross, shall 
 48.8   not be reduced for fiscal year 1997. 
 48.9      Subd. 2.  [LEVY ADJUSTMENT.] Independent school district No.
 48.10  264, Herman-Norcross, may make a positive levy adjustment for 
 48.11  taxes payable in 1998 equal to the amount of the general 
 48.12  education levy reduction required under Minnesota Statutes, 
 48.13  section 124A.26, subdivision 2, attributed to fiscal year 1997. 
 48.14     Sec. 62.  [LEVY ADJUSTMENT ATTRIBUTABLE TO THE REPEAL OF 
 48.15  THE K-12 APPROPRIATIONS CAPS.] 
 48.16     Notwithstanding Minnesota Statutes, section 124.918, 
 48.17  subdivision 6, a school district may spread any positive 
 48.18  referendum levy adjustments for fiscal year 1998 resulting from 
 48.19  the enactment of Laws 1997, chapter 1, over a three-year period 
 48.20  beginning with taxes payable in 1998. 
 48.21     Sec. 63.  [BUS PURCHASE LEVY.] 
 48.22     For 1997 taxes payable in 1998, a school district may levy 
 48.23  the amount necessary to eliminate the deficit in the reserved 
 48.24  fund balance account for bus purchases in its transportation 
 48.25  fund as of June 30, 1996. 
 48.26     Sec. 64.  [SHIFT SIMPLIFICATION APPROPRIATION.] 
 48.27     $18,700,000 is appropriated in fiscal year 1997 from the 
 48.28  general fund to the commissioner of children, families, and 
 48.29  learning for additional general education aid for the 
 48.30  simplification of the property tax revenue recognition shift 
 48.31  according to this article. 
 48.32     Sec. 65.  [TRANSPORTATION GRANTS TO ACCOMMODATE LATER 
 48.33  SCHOOL START TIMES.] 
 48.34     Subdivision 1.  [ESTABLISHMENT.] A grant program for fiscal 
 48.35  year 1998 is established to provide adjustments in 
 48.36  transportation funding to school districts establishing school 
 49.1   start times after 8:00 a.m.  The purpose of the program is to 
 49.2   explore the school district options for supporting family 
 49.3   schedules, reducing teenagers' sleep deprivation and increasing 
 49.4   their learning alertness, keeping children safe from 
 49.5   unstructured time alone in the afternoon, and limiting 
 49.6   opportunities for children to engage in at-risk behavior. 
 49.7      Subd. 2.  [ELIGIBILITY.] An applicant for a grant must be a 
 49.8   school district with an administrative office located in the 
 49.9   seven-county metropolitan area.  To be eligible for a grant, a 
 49.10  school district must not require a secondary school enrolling 
 49.11  students in any portion of grades 7 through 12 within the 
 49.12  district to begin the school day before 8:00 a.m. 
 49.13     Subd. 3.  [APPLICATION PROCESS.] To obtain a grant for 
 49.14  adjustments in transportation funding to accommodate an 8:00 
 49.15  a.m. or later school start time, a district must submit an 
 49.16  application to the commissioner of children, families, and 
 49.17  learning in the form and manner the commissioner prescribes.  
 49.18  The application must indicate the district's school start time 
 49.19  and describe how the district anticipates adjusting its 
 49.20  transportation schedules to accommodate that start time.  The 
 49.21  commissioner may require an applicant to provide additional 
 49.22  information. 
 49.23     Subd. 4.  [GRANT AWARDS; PROCEEDS.] The commissioner may 
 49.24  award up to ten grants of up to $50,000 per grant.  The 
 49.25  commissioner shall base the amount of the grant on the number of 
 49.26  children and families expected to be affected by the later 
 49.27  school start time.  Grant recipients shall use the money for 
 49.28  transportation adjustments to accommodate the later school start 
 49.29  time. 
 49.30     Subd. 5.  [EVALUATION.] The commissioner shall evaluate the 
 49.31  impact of the program on the grant recipients and recommend to 
 49.32  the education committees of the legislature by February 15, 
 49.33  1999, whether to extend the program. 
 49.34     Sec. 66.  [PERMANENT SCHOOL FUND PORTFOLIO RESTRUCTURING.] 
 49.35     The state board of investment is encouraged to shift the 
 49.36  portfolio of permanent school fund investments so that the 
 50.1   portfolio is more evenly balanced between equities and bonds. 
 50.2      Sec. 67.  [PRIVATE ALTERNATIVE SCHOOL EVALUATION.] 
 50.3      The state board of education shall evaluate the performance 
 50.4   of private alternative schools authorized according to Minnesota 
 50.5   Statutes, section 126.22. 
 50.6      The state board may request any necessary information from 
 50.7   the private alternative school or the contracting school 
 50.8   district.  The state board may provide assistance to a school 
 50.9   district in evaluating a private alternative school that has 
 50.10  been contracted with by a school board.  The board must report 
 50.11  annually to the education committees of the legislature on the 
 50.12  results of its evaluations. 
 50.13     Sec. 68.  [LEP CONCENTRATION AID; FISCAL YEAR 1998.] 
 50.14     For fiscal year 1998 only, a school district's compensatory 
 50.15  revenue under Minnesota Statutes, section 124A.22, subdivision 
 50.16  3, is increased by LEP concentration aid.  Fiscal year 1998 LEP 
 50.17  concentration aid equals $175 times the district's LEP pupil 
 50.18  units determined according to article 2, section 3. 
 50.19     Sec. 69.  [CONVERSION TO MFIP-S.] 
 50.20     The commissioner of children, families, and learning shall 
 50.21  recommend to the education committees of the legislature, by 
 50.22  February 1, 1998, an appropriate adjustment to the AFDC pupil 
 50.23  count to compensate for the differing distribution of basic 
 50.24  skills revenue because of the replacement of the AFDC program 
 50.25  with MFIP-S. 
 50.26     Sec. 70.  [APPROPRIATIONS.] 
 50.27     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 50.28  LEARNING.] The sums indicated in this section are appropriated 
 50.29  from the general fund to the department of children, families, 
 50.30  and learning for the fiscal years designated.  
 50.31     Subd. 2.  [GENERAL AND SUPPLEMENTAL EDUCATION AID.] For 
 50.32  general and supplemental education aid:  
 50.33       $2,522,599,000     .....     1998
 50.34       $2,496,758,000     .....     1999
 50.35     The 1998 appropriation includes $227,451,000 for 1997 and 
 50.36  $2,295,148,000 for 1998.  
 51.1      The 1999 appropriation includes $255,016,000 for 1998 and 
 51.2   $2,241,742,000 for 1999.  
 51.3      Of the 1998 appropriation, the first $113,800,000 is from 
 51.4   the education aids reserve of the general fund. 
 51.5      Subd. 3.  [TRANSPORTATION AID.] For transportation aid 
 51.6   according to Minnesota Statutes, section 124.225: 
 51.7        $172,141,000   .....     1999
 51.8   The appropriation is based on an aid entitlement of $191,267,000.
 51.9      Subd. 4.  [TRANSPORTATION SAFETY.] For student 
 51.10  transportation safety aid according to Minnesota Statutes, 
 51.11  section 124.225, subdivision 8m: 
 51.12       $3,430,000     .....     1998 
 51.13       $3,458,000     .....     1999
 51.14     The 1998 appropriation includes $129,000 for 1997 and 
 51.15  $3,301,000 for 1998.  
 51.16     The 1999 appropriation includes $144,000 for 1997 and 
 51.17  $3,314,000 for 1998. 
 51.18     Up to $2,000,000 each year is for school districts for 
 51.19  school bus safety projects including, but not limited to:  (1) 
 51.20  costs associated with purchasing and retrofitting school buses 
 51.21  with seatbelts; (2) adult bus monitors; (3) video cameras; (4) 
 51.22  crossing arms; or (5) strobe lights. 
 51.23     Subd. 5.  [TRANSPORTATION AID FOR ENROLLMENT OPTIONS.] For 
 51.24  transportation of pupils attending post-secondary institutions 
 51.25  according to Minnesota Statutes, section 123.3514, or for 
 51.26  transportation of pupils attending nonresident districts 
 51.27  according to Minnesota Statutes, section 120.062: 
 51.28       $102,000       .....     1998
 51.29       $102,000       .....     1999
 51.30     Any balance in the first year does not cancel but is 
 51.31  available in the second year. 
 51.32     Subd. 6.  [WIDE AREA TRANSPORTATION SERVICE PILOT PROJECT.] 
 51.33  To expand the wide area transportation service project: 
 51.34       $100,000       .....     1998 
 51.35       $ 50,000       .....     1999 
 51.36     The purpose is to expand the project for the computerized 
 52.1   mapping and scheduling programs for school districts to jointly 
 52.2   provide transportation services for low-incidence programs in 
 52.3   the metropolitan area.  These services include, but are not 
 52.4   limited to, transportation for special education, nonpublic 
 52.5   pupils, results-oriented charter schools, enrollment options 
 52.6   programs, area learning center programs, and desegregation 
 52.7   programs.  The department shall work with representatives of the 
 52.8   affected programs, transportation managers from both 
 52.9   metropolitan and rural districts, and the metropolitan council.  
 52.10  The department shall contract for services as appropriate.  The 
 52.11  project shall consider the relationship of education 
 52.12  transportation with transportation services provided by 
 52.13  noneducation agencies.  
 52.14     Any balance in the first year does not cancel but is 
 52.15  available in the second year. 
 52.16     Subd. 7.  [INTERDISTRICT DESEGREGATION OR INTEGRATION 
 52.17  TRANSPORTATION GRANTS.] For interdistrict desegregation or 
 52.18  integration transportation grants under Minnesota Statutes, 
 52.19  section 124.227: 
 52.20       $800,000       .....     1998
 52.21       $970,000       .....     1999
 52.22     Any balance in the first year does not cancel but is 
 52.23  available in the second year. 
 52.24     Subd. 8.  [TARGETED NEEDS TRANSPORTATION AID.] For aid 
 52.25  payments for targeted needs transportation aid under Minnesota 
 52.26  Statutes, section 124.225, subdivision 13: 
 52.27       $76,195,000    .....     1998
 52.28       $ 7,671,000    .....     1999
 52.29     The 1998 appropriation includes $7,148,000 for 1997 and 
 52.30  $69,047,000 for 1998. 
 52.31     The 1999 appropriation includes $7,671,000 for 1998 and $0 
 52.32  for 1999. 
 52.33     Subd. 9.  [COMPUTERIZED TRANSPORTATION ROUTING.] For a 
 52.34  grant to the Minnesota river valley special education 
 52.35  cooperative, joint powers district No. 993, to establish and 
 52.36  implement a computerized transportation routing system for 
 53.1   special education students:  
 53.2        $70,000        .....     1998 
 53.3      This appropriation is available until June 30, 1998. 
 53.4      Subd. 10.  [HEALTH AND SAFETY AID.] For health and safety 
 53.5   aid according to Minnesota Statutes, section 124.83, subdivision 
 53.6   5: 
 53.7        $14,091,000    .....     1998 
 53.8        $14,179,000    .....     1999 
 53.9      The 1998 appropriation includes $1,132,000 for 1997 and 
 53.10  $12,959,000 for 1998.  
 53.11     The 1999 appropriation includes $1,440,000 for 1998 and 
 53.12  $12,739,000 for 1999.  
 53.13     Subd. 11.  [DEBT SERVICE AID.] For debt service aid 
 53.14  according to Minnesota Statutes, section 124.95, subdivision 5: 
 53.15       $35,679,000     .....     1998
 53.16       $37,986,000     .....     1999
 53.17     The 1998 appropriation includes $3,313,000 for 1997 and 
 53.18  $32,366,000 for 1998. 
 53.19     The 1999 appropriation includes $3,597,000 for 1998 and 
 53.20  $34,389,000 for 1999. 
 53.21     Subd. 12.  [MODEL FOUR-PERIOD DAY GRANT.] For a grant to 
 53.22  independent school district No. 833, south Washington county, 
 53.23  for the development and implementation of a model four-period 
 53.24  day curriculum using a site-based, decision-making model: 
 53.25       $200,000       .....     1998 
 53.26     Up to $100,000 of the grant funds may be used for all costs 
 53.27  associated with the development and implementation of the model, 
 53.28  including, but not limited to, staff development, curriculum 
 53.29  development, textbooks, equipment and supplies, and salaries and 
 53.30  benefits of the additional teachers necessary to fully staff the 
 53.31  expanded number of class sections.  No funds shall be dispersed 
 53.32  by the commissioner unless at least one site council proceeds to 
 53.33  fully develop and implement a model four-period day curriculum. 
 53.34     Up to $100,000 of the grant funds may be used for the class 
 53.35  size mitigation pilot project. 
 53.36     This appropriation is available until June 30, 1999. 
 54.1      Subd. 13.  [SCHOOL START TIME GRANTS.] For grants to 
 54.2   provide adjustments in transportation funding to school 
 54.3   districts establishing school start times after 8:00 a.m. 
 54.4        $500,000       .....     1998
 54.5      This appropriation is available until June 30, 1999. 
 54.6      Sec. 71.  [REPEALER.] 
 54.7      (a) Minnesota Statutes 1996, sections 121.904, subdivision 
 54.8   4d; 124A.697; 124A.698; 124A.70; 124A.71; 124A.711; 124A.72; and 
 54.9   124A.73, are repealed. 
 54.10     (b) Minnesota Statutes 1996, sections 124.225, subdivisions 
 54.11  13, 14, 15, 16, and 17; 124.226, subdivisions 1, 3, 3a, 6, and 
 54.12  10; and 124A.22, subdivisions 13 and 13a, are repealed effective 
 54.13  for revenue for fiscal year 1999. 
 54.14     Sec. 72.  [EFFECTIVE DATE.] 
 54.15     (a) Sections 2, 12, 14 to 16, 24, 33 to 38, 55, 58, 60, 61, 
 54.16  and 64 are effective the day following final enactment. 
 54.17     (b) Sections 47, 49, and 54 are effective for fiscal year 
 54.18  1999. 
 54.19                             ARTICLE 2 
 54.20                          SPECIAL PROGRAMS 
 54.21     Section 1.  Minnesota Statutes 1996, section 120.181, is 
 54.22  amended to read: 
 54.23     120.181 [PLACEMENT OF CHILDREN WITHOUT DISABILITIES; 
 54.24  EDUCATION AND TRANSPORTATION.] 
 54.25     The responsibility for providing instruction and 
 54.26  transportation for a pupil without a disability who has a 
 54.27  short-term or temporary physical or emotional illness or 
 54.28  disability, as determined by the standards of the state board, 
 54.29  and who is temporarily placed for care and treatment for that 
 54.30  illness or disability, shall be determined as provided in this 
 54.31  section.  
 54.32     (a) The school district of residence of the pupil shall be 
 54.33  the district in which the pupil's parent or guardian resides, or 
 54.34  when neither the pupil's parent or guardian resides within the 
 54.35  state and tuition has been denied, the district designated by 
 54.36  the commissioner of children, families, and learning if neither 
 55.1   parent nor guardian is living within the state.  
 55.2      (b) Prior to the placement of a pupil for care and 
 55.3   treatment, the district of residence shall be notified and 
 55.4   provided an opportunity to participate in the placement 
 55.5   decision.  When an immediate emergency placement is necessary 
 55.6   and time does not permit resident district participation in the 
 55.7   placement decision, the district in which the pupil is 
 55.8   temporarily placed, if different from the district of residence, 
 55.9   shall notify the district of residence of the emergency 
 55.10  placement within 15 days of the placement.  
 55.11     (c) When a pupil without a disability is temporarily placed 
 55.12  for care and treatment in a day program and the pupil continues 
 55.13  to live within the district of residence during the care and 
 55.14  treatment, the district of residence shall provide instruction 
 55.15  and necessary transportation for the pupil.  The district may 
 55.16  provide the instruction at a school within the district of 
 55.17  residence, at the pupil's residence, or in the case of a 
 55.18  placement outside of the resident district, in the district in 
 55.19  which the day treatment program is located by paying tuition to 
 55.20  that district.  The district of placement may contract with a 
 55.21  facility to provide instruction by teachers licensed by the 
 55.22  state board of teaching.  
 55.23     (d) When a pupil without a disability is temporarily placed 
 55.24  in a residential program for care and treatment, the district in 
 55.25  which the pupil is placed shall provide instruction for the 
 55.26  pupil and necessary transportation while the pupil is receiving 
 55.27  instruction, and in the case of a placement outside of the 
 55.28  district of residence, the nonresident district shall bill the 
 55.29  district of residence for the actual cost of providing the 
 55.30  instruction for the regular school year and for summer school, 
 55.31  excluding transportation costs.  When a pupil without a 
 55.32  disability is temporarily placed in a residential program 
 55.33  outside the district of residence, the administrator of the 
 55.34  court placing the pupil shall send timely written notice of the 
 55.35  placement to the district of residence.  The district of 
 55.36  placement may contract with a residential facility to provide 
 56.1   instruction by teachers licensed by the state board of teaching. 
 56.2      (e) The district of residence shall include the pupil in 
 56.3   its residence count of pupil units and pay tuition as provided 
 56.4   in section 124.18 to the district providing the instruction.  
 56.5   Transportation costs shall be paid by the district providing the 
 56.6   transportation and the state shall pay transportation aid to 
 56.7   that district.  For purposes of computing state transportation 
 56.8   aid, pupils governed by this subdivision shall be included in 
 56.9   the disabled transportation category.  
 56.10     Sec. 2.  Minnesota Statutes 1996, section 124.17, 
 56.11  subdivision 4, is amended to read: 
 56.12     Subd. 4.  [LEARNING YEAR PUPIL UNITS.] (a) When a pupil is 
 56.13  enrolled in a learning year program according to under section 
 56.14  121.585, an area learning center according to under sections 
 56.15  124C.45 and 124C.46, or an alternative program approved by the 
 56.16  commissioner, for more than 1,020 hours in a school year for a 
 56.17  secondary student and for more than 935 hours in a school year 
 56.18  for an elementary student, that pupil may be counted as more 
 56.19  than one pupil in average daily membership.  The amount in 
 56.20  excess of one pupil must be determined by the ratio of the 
 56.21  number of hours of instruction provided to that pupil in excess 
 56.22  of 1,020 hours to 1,020 for a secondary pupil and of 935 hours 
 56.23  to 935 for an elementary pupil.  Hours that occur after the 
 56.24  close of the instructional year in June shall be attributable to 
 56.25  the following fiscal year. 
 56.26     (b)(i) To receive general education revenue for a pupil in 
 56.27  an alternative program that has an independent study component, 
 56.28  a school district must meet the requirements in this paragraph.  
 56.29  The school district must develop with the pupil a continual 
 56.30  learning plan for the pupil.  A district must allow a minor 
 56.31  pupil's parent or guardian to participate in developing the 
 56.32  plan, if the parent or guardian wants to participate.  The plan 
 56.33  must identify the learning experiences and expected outcomes 
 56.34  needed for satisfactory credit for the year and for graduation.  
 56.35  The plan must be updated each year.  Each school district that 
 56.36  has a state-approved public alternative program must reserve 
 57.1   revenue in an amount equal to at least 90 percent of the 
 57.2   district's per pupil general education revenue times the number 
 57.3   of pupils attending a state-approved public alternative 
 57.4   program.  The amount of reserved revenue available under this 
 57.5   subdivision may only be spent for program costs associated with 
 57.6   the state-approved public alternative program. 
 57.7      (ii) General education revenue for a pupil in an approved 
 57.8   alternative program without an independent study component must 
 57.9   be prorated for a pupil participating for less than a full year, 
 57.10  or its equivalent.  Each school district that has a 
 57.11  state-approved public alternative program must reserve revenue 
 57.12  in an amount equal to at least 90 percent of the district's per 
 57.13  pupil general education revenue times the number of pupils 
 57.14  attending a state-approved public alternative program.  The 
 57.15  amount of reserved revenue available under this subdivision may 
 57.16  only be spent for program costs associated with the 
 57.17  state-approved public alternative program.  
 57.18     (iii) General education revenue for a pupil in an approved 
 57.19  alternative program that has an independent study component must 
 57.20  be paid for each hour of teacher contact time and each hour of 
 57.21  independent study time completed toward a credit or graduation 
 57.22  standards necessary for graduation.  Average daily membership 
 57.23  for a pupil shall equal the number of hours of teacher contact 
 57.24  time and independent study time divided by 1,020. 
 57.25     (iv) For an alternative program having an independent study 
 57.26  component, the commissioner shall require a description of the 
 57.27  courses in the program, the kinds of independent study involved, 
 57.28  the expected learning outcomes of the courses, and the means of 
 57.29  measuring student performance against the expected outcomes. 
 57.30     Sec. 3.  Minnesota Statutes 1996, section 124.17, is 
 57.31  amended by adding a subdivision to read: 
 57.32     Subd. 6.  [LEP PUPIL UNITS.] (a) Limited English 
 57.33  proficiency pupil units for fiscal year 1998 and thereafter 
 57.34  shall be determined according to this subdivision. 
 57.35     (b) The limited English proficiency concentration 
 57.36  percentage for a district equals the product of 100 times the 
 58.1   ratio of: 
 58.2      (1) the number of pupils of limited English proficiency 
 58.3   residing in the district during the current fiscal year; to 
 58.4      (2) the number of pupils in average daily membership 
 58.5   residing in the district. 
 58.6      (c) The limited English proficiency pupil units for each 
 58.7   pupil enrolled in a program for pupils of limited English 
 58.8   proficiency in accordance with sections 126.261 to 126.269 
 58.9   equals the lesser of one or the quotient obtained by dividing 
 58.10  the limited English proficiency concentration percentage for the 
 58.11  pupil's district of residence by 11.5. 
 58.12     (d) Limited English proficiency pupil units shall be 
 58.13  counted by the district of enrollment. 
 58.14     Sec. 4.  Minnesota Statutes 1996, section 124.248, 
 58.15  subdivision 3, is amended to read: 
 58.16     Subd. 3.  [SPECIAL EDUCATION AND LIMITED ENGLISH 
 58.17  PROFICIENCY AID.] Except as provided in subdivision 1a, 
 58.18  paragraph (b), special education aid shall be paid to a charter 
 58.19  school according to sections 124.3201 and 124.3202, as though it 
 58.20  were a school district.  The charter school may charge tuition 
 58.21  to the district of residence as provided in section 120.17, 
 58.22  subdivision 4.  Limited English proficiency programs aid shall 
 58.23  be paid to a charter school according to section 124.273 as 
 58.24  though it were a school district.  The charter school shall 
 58.25  allocate its special education levy equalization revenue to the 
 58.26  resident districts of the pupils attending the charter school.  
 58.27  The districts of residence shall levy as though they were 
 58.28  participating in a cooperative, as provided in section 124.321, 
 58.29  subdivision 3. 
 58.30     Sec. 5.  Minnesota Statutes 1996, section 124.2613, 
 58.31  subdivision 3, is amended to read: 
 58.32     Subd. 3.  [QUALIFYING SCHOOL SITE.] (a) The commissioner 
 58.33  shall rank all school sites with kindergarten programs that do 
 58.34  not exclusively serve students under section 120.17.  The 
 58.35  ranking must be from highest to lowest based on the site's free 
 58.36  and reduced lunch count as a percent of the fall enrollment 
 59.1   using the preceding October 1 enrollment data.  Once a school 
 59.2   site is calculated to be eligible, it remains eligible for the 
 59.3   duration of the pilot program.  For each school site, the 
 59.4   percentage used to calculate the ranking must be the greater of 
 59.5   (1) the percent of the fall kindergarten enrollment receiving 
 59.6   free and reduced lunch, or (2) the percent of the total fall 
 59.7   enrollment receiving free and reduced lunch.  The list of ranked 
 59.8   sites must be separated into the following geographic areas:  
 59.9   Minneapolis district, St. Paul district, suburban Twin Cities 
 59.10  districts in the seven-county metropolitan area, and school 
 59.11  districts in greater Minnesota. 
 59.12     (b) The commissioner shall establish a process and 
 59.13  timelines to qualify school sites for the next school year.  
 59.14  School sites must be qualified in each geographic area from the 
 59.15  list of ranked sites until the estimated revenue available for 
 59.16  this program has been allocated.  The total estimated revenue of 
 59.17  $3,500,000 must be distributed to qualified school sites in each 
 59.18  geographic area as follows:  25 percent for Minneapolis sites, 
 59.19  25 percent for St. Paul sites, 25 percent for suburban Twin 
 59.20  Cities sites, and 25 percent for greater Minnesota. 
 59.21     Sec. 6.  Minnesota Statutes 1996, section 124.2613, 
 59.22  subdivision 6, is amended to read: 
 59.23     Subd. 6.  [PREPAREDNESS REVENUE.] (a) A qualifying school 
 59.24  district is eligible for first-grade preparedness revenue equal 
 59.25  to the basic formula allowance for that year times the number of 
 59.26  pupil units calculated according to paragraph (b) in each 
 59.27  qualifying school site.  If the first-grade preparedness revenue 
 59.28  is insufficient to fully fund the formula amounts, the 
 59.29  commissioner shall prorate the revenue provided to each 
 59.30  qualifying school site. 
 59.31     (b) A pupil enrolled in a half-day first-grade preparedness 
 59.32  program under this section is counted as .53 pupil units.  A 
 59.33  pupil enrolled in a full-day first-grade preparedness program 
 59.34  under this section is counted as a kindergarten pupil under 
 59.35  section 124.17, subdivision 1, plus an additional .53 pupil 
 59.36  units. 
 60.1      (c) This revenue must supplement and not replace 
 60.2   compensatory revenue that the district uses for the same or 
 60.3   similar purposes under chapter 124A. 
 60.4      (d) A pupil enrolled in the first grade preparedness 
 60.5   program at a qualifying school site is eligible for 
 60.6   transportation under section 123.39, subdivision 1.  
 60.7      (e) For fiscal year 1998, first grade preparedness revenue 
 60.8   paid to a charter school for which a school district is 
 60.9   providing transportation according to section 120.064, 
 60.10  subdivision 15, shall be decreased by an amount equal to the 
 60.11  product of $170 times the pupil units calculated according to 
 60.12  paragraph (b).  This amount shall be paid to the school district 
 60.13  for transportation costs.  
 60.14     Sec. 7.  Minnesota Statutes 1996, section 124.273, 
 60.15  subdivision 1d, is amended to read: 
 60.16     Subd. 1d.  [LEP BASE REVENUE.] (a) The limited English 
 60.17  proficiency programs base revenue equals the sum of the 
 60.18  following amounts, computed using base year data:  
 60.19     (1) 68 percent of the salary of one full-time equivalent 
 60.20  teacher for each 40 pupils of limited English proficiency 
 60.21  enrolled, or 68 percent of the salary of one-half of a full-time 
 60.22  teacher in a district with 20 or fewer pupils of limited English 
 60.23  proficiency enrolled; and 
 60.24     (2) for supplies and equipment purchased or rented for use 
 60.25  in the instruction of pupils of limited English proficiency an 
 60.26  amount equal to 47 percent of the sum actually spent by the 
 60.27  district but not to exceed an average of $47 in any one school 
 60.28  year for each pupil of limited English proficiency receiving 
 60.29  instruction. 
 60.30     (b) For the purposes of this subdivision, a teacher 
 60.31  includes nonlicensed personnel who provide direct instruction to 
 60.32  students of limited English proficiency under the supervision of 
 60.33  a licensed teacher. 
 60.34     (c) If requested by a school district operating a limited 
 60.35  English proficiency program during the base year for less than 
 60.36  the full school year, the commissioner may adjust the base 
 61.1   revenue to reflect the expenditures that would have occurred 
 61.2   during the base year had the program been operated for the full 
 61.3   school year. 
 61.4      Sec. 8.  Minnesota Statutes 1996, section 124.273, 
 61.5   subdivision 1e, is amended to read: 
 61.6      Subd. 1e.  [AID.] A district's limited English proficiency 
 61.7   aid for fiscal year 1996 and later 1998 equals the aid 
 61.8   percentage factor under section 124.3201, subdivision 1, times 
 61.9   the district's limited English proficiency revenue. 
 61.10     Sec. 9.  Minnesota Statutes 1996, section 124.273, 
 61.11  subdivision 1f, is amended to read: 
 61.12     Subd. 1f.  [STATE TOTAL LEP REVENUE.] (a) The state total 
 61.13  limited English proficiency programs revenue for fiscal 
 61.14  year 1996 1998 equals $12,202,000 $14,629,000.  The state total 
 61.15  limited English proficiency programs revenue for fiscal 
 61.16  year 1997 1999 equals $13,299,000 $16,092,000.  
 61.17     (b) The state total limited English proficiency programs 
 61.18  revenue for later fiscal years equals: 
 61.19     (1) the state total limited English proficiency programs 
 61.20  revenue for the preceding fiscal year; times 
 61.21     (2) the program growth factor under section 124.3201, 
 61.22  subdivision 1; times 
 61.23     (3) the ratio of the state total number of pupils with 
 61.24  limited English proficiency for the current fiscal year to the 
 61.25  state total number of pupils with limited English proficiency 
 61.26  for the preceding fiscal year. 
 61.27     Sec. 10.  Minnesota Statutes 1996, section 124.273, 
 61.28  subdivision 5, is amended to read: 
 61.29     Subd. 5.  [NOTIFICATION; AID PAYMENTS REVENUE.] The 
 61.30  department must promptly inform each applicant district of the 
 61.31  amount of aid revenue it will receive pursuant to this section. 
 61.32     Sec. 11.  [124.3111] [ASSURANCE OF MASTERY PROGRAMS.] 
 61.33     Subdivision 1.  [ELIGIBLE DISTRICTS.] A district with a 
 61.34  local process to review curriculum and instruction may provide 
 61.35  an assurance of mastery program to eligible pupils. 
 61.36     Subd. 2.  [ELIGIBLE PUPILS.] A pupil is eligible to receive 
 62.1   services through an assurance of mastery program if the pupil 
 62.2   has not demonstrated progress toward mastering the required 
 62.3   graduation standards, after receiving instruction that was 
 62.4   designed to enable the pupil to make progress toward mastering 
 62.5   the required graduation standards in a regular classroom 
 62.6   setting.  To determine pupil eligibility, a district must use a 
 62.7   process adopted by the school board to review curriculum and 
 62.8   instruction, for the subjects and at the grade level at which 
 62.9   the district uses the revenue. 
 62.10     Subd. 3.  [ELIGIBLE SERVICES.] (a) Assurance of mastery 
 62.11  programs may provide direct instructional services to an 
 62.12  eligible pupil, or a group of eligible pupils, under the 
 62.13  following conditions in paragraphs (b) to (d). 
 62.14     (b) Instruction may be provided at one or more grade levels 
 62.15  from kindergarten to grade 8 and for students in grades 9 
 62.16  through 12 who have failed the basic skills tests.  If an 
 62.17  assessment of pupils' needs within a district demonstrates that 
 62.18  the eligible pupils in grades kindergarten to grade 8 are being 
 62.19  appropriately served, a district may serve eligible pupils in 
 62.20  grades 9 to 12. 
 62.21     (c) Instruction must be provided under the supervision of 
 62.22  the eligible pupil's regular classroom teacher.  Instruction may 
 62.23  be provided by the eligible pupil's classroom teacher, by 
 62.24  another teacher, by a team of teachers, or by an education 
 62.25  assistant or aide.  A special education teacher may provide 
 62.26  instruction, but instruction that is provided under this section 
 62.27  is not eligible for aid under section 124.3201. 
 62.28     (d) The instruction that is provided must differ from the 
 62.29  initial instruction the pupil received in the regular classroom 
 62.30  setting.  The instruction may differ by presenting different 
 62.31  curriculum than was initially presented in the regular classroom 
 62.32  or by presenting the same curriculum: 
 62.33     (1) at a different rate or in a different sequence than it 
 62.34  was initially presented; 
 62.35     (2) using different teaching methods or techniques than 
 62.36  were used initially; or 
 63.1      (3) using different instructional materials than were used 
 63.2   initially. 
 63.3      Sec. 12.  Minnesota Statutes 1996, section 124.312, 
 63.4   subdivision 4, is amended to read: 
 63.5      Subd. 4.  [INTEGRATION REVENUE.] For fiscal year years 
 63.6   1996, 1997, and later fiscal years 1998, integration revenue 
 63.7   equals the sum of integration aid and integration levy under 
 63.8   section 124.912, subdivision 2. 
 63.9      Sec. 13.  Minnesota Statutes 1996, section 124.312, 
 63.10  subdivision 5, is amended to read: 
 63.11     Subd. 5.  [INTEGRATION AID.] For fiscal year years 1996, 
 63.12  1997, and later fiscal years 1998, integration aid equals the 
 63.13  following amounts: 
 63.14     (1) for independent school district No. 709, Duluth, 
 63.15  $1,385,000; 
 63.16     (2) for independent school district No. 625, St. Paul, 
 63.17  $8,090,700; and 
 63.18     (3) for special school district No. 1, Minneapolis, 
 63.19  $9,368,300. 
 63.20     Sec. 14.  Minnesota Statutes 1996, section 124.313, is 
 63.21  amended to read: 
 63.22     124.313 [TARGETED NEEDS REVENUE.] 
 63.23     For fiscal year years 1996, 1997, and thereafter 1998, a 
 63.24  school district's targeted needs revenue equals the sum of: 
 63.25     (1) assurance of mastery revenue according to section 
 63.26  124.311; plus 
 63.27     (2) the district's limited English proficiency revenue 
 63.28  computed according to section 124.273, subdivision 1d; plus 
 63.29     (3) integration revenue computed according to section 
 63.30  124.312, subdivision 4. 
 63.31     Sec. 15.  Minnesota Statutes 1996, section 124.314, 
 63.32  subdivision 1, is amended to read: 
 63.33     Subdivision 1.  [AID.] For fiscal year years 1996, 1997, 
 63.34  and thereafter 1998, a school district's targeted needs aid 
 63.35  equals the sum of its assurance of mastery aid according to 
 63.36  section 124.311, its limited English proficiency aid according 
 64.1   to section 124.273, subdivision 1e, and its integration aid 
 64.2   according to section 124.312, subdivision 5. 
 64.3      Sec. 16.  Minnesota Statutes 1996, section 124.314, 
 64.4   subdivision 2, is amended to read: 
 64.5      Subd. 2.  [LEVY.] For fiscal year years 1996, 1997, and 
 64.6   thereafter 1998, a school district's targeted needs levy equals 
 64.7   the sum of its integration levy under section 124.912, 
 64.8   subdivision 2, and that portion of its special education levy 
 64.9   attributed to the limited English proficiency program. 
 64.10     Sec. 17.  [124.315] [INTEGRATION REVENUE.] 
 64.11     Subdivision 1.  [USE OF THE REVENUE.] Integration revenue 
 64.12  under this section must be used for programs established under a 
 64.13  desegregation plan mandated by the state board or under court 
 64.14  order, to increase learning opportunities and reduce the 
 64.15  learning gap between learners living in high concentrations of 
 64.16  poverty and their peers. 
 64.17     Subd. 2.  [SEPARATE ACCOUNT.] Integration revenue shall be 
 64.18  maintained in a separate account to identify expenditures for 
 64.19  salaries and programs related to this revenue. 
 64.20     Subd. 3.  [INTEGRATION REVENUE.] For fiscal year 1999 and 
 64.21  later fiscal years, integration revenue equals the following 
 64.22  amounts: 
 64.23     (1) for independent school district No. 709, Duluth, $193 
 64.24  times the actual pupil units for the school year; 
 64.25     (2) for independent school district No. 625, St. Paul, $427 
 64.26  times the actual pupil units for the school year; 
 64.27     (3) for special school district No. 1, Minneapolis, $523 
 64.28  times the actual pupil units for the school year; and 
 64.29     (4) for a district not listed in clause (1), (2), or (3) 
 64.30  that is required to implement a plan according to the 
 64.31  requirements of Minnesota Rules, parts 3535.0200 to 3535.2200, 
 64.32  the lesser of the actual cost of implementing the plan during 
 64.33  the fiscal year or $93 times the actual pupil units for the 
 64.34  school year. 
 64.35     Subd. 4.  [INTEGRATION LEVY.] A district may levy an amount 
 64.36  equal to 46 percent of the district's integration revenue as 
 65.1   defined in subdivision 3. 
 65.2      Subd. 5.  [INTEGRATION AID.] A district's integration aid 
 65.3   equals 54 percent of the district's integration revenue as 
 65.4   defined in subdivision 3. 
 65.5      Subd. 6.  [ALTERNATIVE ATTENDANCE PROGRAMS.] (a) The 
 65.6   integration aid under subdivision 5 must be adjusted for each 
 65.7   pupil attending a nonresident district under sections 120.062, 
 65.8   120.075, 120.0751, 120.0752, and 124C.45 to 124C.48 if the 
 65.9   enrollment of the pupil in the nonresident district contributes 
 65.10  to desegregation or integration purposes.  The adjustments must 
 65.11  be made according to this subdivision.  
 65.12     (b) Aid paid to the district of the pupil's residence must 
 65.13  be reduced by an amount equal to the revenue per actual pupil 
 65.14  unit of the resident district times the number of actual pupil 
 65.15  units attributable to the pupil for the time the pupil is 
 65.16  enrolled in a nonresident district. 
 65.17     (c) Aid paid to a district serving nonresidents must be 
 65.18  increased by an amount equal to the aid reduction to the 
 65.19  resident district under paragraphs (b) and (d).  
 65.20     (d) If the amount of the reduction to be made from the aid 
 65.21  of a district is greater than the amount of aid otherwise due 
 65.22  the district, the excess reduction must be made from other state 
 65.23  aids due the district. 
 65.24     Sec. 18.  Minnesota Statutes 1996, section 124.3201, 
 65.25  subdivision 1, is amended to read: 
 65.26     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
 65.27  section and sections 124.3202 and 124.321, the definitions in 
 65.28  this subdivision apply. 
 65.29     (a) "Base year" for fiscal year 1996 and fiscal year 1997 
 65.30  means the 1994 summer program and the 1994-1995 school year.  
 65.31  Base year for 1998 and later fiscal years means the second 
 65.32  fiscal year preceding the fiscal year for which aid will be paid.
 65.33     (b) "Basic revenue" has the meaning given it in section 
 65.34  124A.22, subdivision 2.  For the purposes of computing basic 
 65.35  revenue pursuant to this section, each child with a disability 
 65.36  shall be counted as prescribed in section 124.17, subdivision 1. 
 66.1      (c) "Essential personnel" means teachers, related services, 
 66.2   and support services staff providing direct services to students.
 66.3      (d) "Average daily membership" has the meaning given it in 
 66.4   section 124.17. 
 66.5      (e) "Program growth factor" means 1.00 for fiscal year 1998 
 66.6   2000 and later. 
 66.7      (f) "Aid percentage factor" means 60 percent for fiscal 
 66.8   year 1996, 70 percent for fiscal year 1997, 80 percent for 
 66.9   fiscal year 1998, 90 percent for fiscal year 1999, and 100 
 66.10  percent for fiscal years 2000 and later. 
 66.11     (g) "Levy percentage factor" means 100 minus the aid 
 66.12  percentage factor for that year. 
 66.13     Sec. 19.  Minnesota Statutes 1996, section 124.3201, 
 66.14  subdivision 2, is amended to read: 
 66.15     Subd. 2.  [SPECIAL EDUCATION BASE REVENUE.] (a) The special 
 66.16  education base revenue equals the sum of the following amounts 
 66.17  computed using base year data: 
 66.18     (1) 68 percent of the salary of each essential person 
 66.19  employed in the district's program for children with a 
 66.20  disability during the regular school year, whether the person is 
 66.21  employed by one or more districts; 
 66.22     (2) for the Minnesota state academy for the deaf or the 
 66.23  Minnesota state academy for the blind, 68 percent of the salary 
 66.24  of each instructional aide assigned to a child attending the 
 66.25  academy, if that aide is required by the child's individual 
 66.26  education plan; 
 66.27     (3) for special instruction and services provided to any 
 66.28  pupil by contracting with public, private, or voluntary agencies 
 66.29  other than school districts, in place of special instruction and 
 66.30  services provided by the district, 52 percent of the difference 
 66.31  between the amount of the contract and the basic revenue of the 
 66.32  district for that pupil for the fraction of the school day the 
 66.33  pupil receives services under the contract; 
 66.34     (4) for special instruction and services provided to any 
 66.35  pupil by contracting for services with public, private, or 
 66.36  voluntary agencies other than school districts, that are 
 67.1   supplementary to a full educational program provided by the 
 67.2   school district, 52 percent of the amount of the contract for 
 67.3   that pupil; 
 67.4      (5) for supplies and equipment purchased or rented for use 
 67.5   in the instruction of children with a disability an amount equal 
 67.6   to 47 percent of the sum actually expended by the district but 
 67.7   not to exceed an average of $47 in any one school year for each 
 67.8   child with a disability receiving instruction; and 
 67.9      (6) for fiscal years 1997 and later, special education base 
 67.10  revenue shall include amounts under clauses (1) to (5) for 
 67.11  special education summer programs provided during the base year 
 67.12  for that fiscal year; and 
 67.13     (7) for fiscal years 1999 and later, the cost of providing 
 67.14  transportation services for children with disabilities under 
 67.15  section 124.225, subdivision 1, paragraph (b), clause (5).  
 67.16     (b) If requested by a school district operating a special 
 67.17  education program during the base year for less than the full 
 67.18  school year, the commissioner may adjust the base revenue to 
 67.19  reflect the expenditures that would have occurred during the 
 67.20  base year had the program been operated for the full school year.
 67.21     Sec. 20.  Minnesota Statutes 1996, section 124.3201, 
 67.22  subdivision 3, is amended to read: 
 67.23     Subd. 3.  [ADJUSTED SPECIAL EDUCATION BASE REVENUE.] For 
 67.24  fiscal year 1996 1997 and later, a district's adjusted special 
 67.25  education base revenue equals the district's special education 
 67.26  base revenue times the ratio of the district's average daily 
 67.27  membership for the current school year to the district's average 
 67.28  daily membership for the base year; plus the district's special 
 67.29  education tuition revenue under subdivision 2a and special 
 67.30  education court placement revenue under subdivision 2b. 
 67.31     Sec. 21.  Minnesota Statutes 1996, section 124.3201, 
 67.32  subdivision 4, is amended to read: 
 67.33     Subd. 4.  [STATE TOTAL SPECIAL EDUCATION REVENUE.] The 
 67.34  state total special education revenue for fiscal year 1996 1998 
 67.35  equals $327,846,000 $358,542,000.  The state total special 
 67.36  education revenue for fiscal year 1997 1999 equals 
 68.1   $347,810,000 $435,322,000.  The state total special education 
 68.2   revenue for later fiscal years equals:  
 68.3      (1) the state total special education revenue for the 
 68.4   preceding fiscal year; times 
 68.5      (2) the program growth factor; times 
 68.6      (3) the ratio of the state total average daily membership 
 68.7   for the current fiscal year to the state total average daily 
 68.8   membership for the preceding fiscal year. 
 68.9      Sec. 22.  Minnesota Statutes 1996, section 124.321, 
 68.10  subdivision 1, is amended to read: 
 68.11     Subdivision 1.  [LEVY EQUALIZATION REVENUE.] (a) For fiscal 
 68.12  years 1996 and later year 1999, special education levy 
 68.13  equalization revenue for a school district, excluding an 
 68.14  intermediate school district, equals the sum of the following 
 68.15  amounts: 
 68.16     (1) the levy percentage factor for that year times the 
 68.17  district's special education revenue under section 124.3201; 
 68.18  plus 
 68.19     (2) the levy percentage factor for that year times the 
 68.20  district's special education summer program revenue under 
 68.21  section 124.3202; plus 
 68.22     (3) the levy percentage factor for that year times the 
 68.23  district's special education excess cost revenue under section 
 68.24  124.323; plus 
 68.25     (4) the levy percentage factor for that year times the 
 68.26  district's secondary vocational education for children with a 
 68.27  disability revenue under section 124.574; plus 
 68.28     (5) the levy percentage factor for that year times the 
 68.29  district's limited English proficiency programs revenue under 
 68.30  section 124.273. 
 68.31     Sec. 23.  Minnesota Statutes 1996, section 124.323, 
 68.32  subdivision 1, is amended to read: 
 68.33     Subdivision 1.  [DEFINITIONS.] In this section, the 
 68.34  definitions in this subdivision apply. 
 68.35     (a) "Unreimbursed special education cost" means the sum of 
 68.36  the following: 
 69.1      (1) expenditures for teachers' salaries, contracted 
 69.2   services, supplies, and equipment, and transportation services 
 69.3   eligible for revenue under sections 124.3201 and 124.3202; plus 
 69.4      (2) expenditures for tuition bills received under section 
 69.5   120.17 for services eligible for revenue under sections 
 69.6   124.3201, subdivision 2, and 124.3202, subdivision 1; minus 
 69.7      (3) revenue for teachers' salaries, contracted services, 
 69.8   supplies, and equipment under sections 124.3201 and 124.3202; 
 69.9   minus 
 69.10     (4) tuition receipts under section 120.17 for services 
 69.11  eligible for revenue under sections 124.3201, subdivision 2, and 
 69.12  124.3202, subdivision 1. 
 69.13     (b) "General revenue," for fiscal year 1996, means the sum 
 69.14  of the general education revenue according to section 124A.22, 
 69.15  subdivision 1, as adjusted according to section 124A.036, 
 69.16  subdivision 5, plus the total referendum revenue according to 
 69.17  section 124A.03, subdivision 1e.  For fiscal years 1997 and 
 69.18  later, "general revenue" means the sum of the general education 
 69.19  revenue according to section 124A.22, subdivision 1, as adjusted 
 69.20  according to section 124A.036, subdivision 5, plus the total 
 69.21  referendum revenue minus transportation sparsity revenue minus 
 69.22  total operating capital revenue. 
 69.23     Sec. 24.  Minnesota Statutes 1996, section 124.323, 
 69.24  subdivision 2, is amended to read: 
 69.25     Subd. 2.  [EXCESS COST REVENUE.] For 1996 1997 and later 
 69.26  fiscal years, a district's special education excess cost revenue 
 69.27  equals 70 the greatest of: 
 69.28     (a) 70 percent of the difference between (1) the district's 
 69.29  unreimbursed special education cost and (2) six percent for 
 69.30  fiscal year 1996 and 5.7 percent for fiscal year 1997 and later 
 69.31  years of the district's general revenue; 
 69.32     (b) 70 percent of the difference between (1) the increase 
 69.33  in the district's unreimbursed special education cost between 
 69.34  the base year as defined in section 124.3201, subdivision 1, and 
 69.35  the current year and (2) 1.6 percent of the district's general 
 69.36  revenue; or 
 70.1      (c) zero. 
 70.2      Sec. 25.  Minnesota Statutes 1996, section 124.481, is 
 70.3   amended to read: 
 70.4      124.481 [INDIAN POST-SECONDARY PREPARATION GRANTS.] 
 70.5      The state board of education, with the advice of the 
 70.6   Minnesota Indian scholarship committee, may make grants to 
 70.7   school districts or tribal grant or contract schools to support 
 70.8   post-secondary preparation for secondary pupils who are of 
 70.9   one-fourth or more Indian ancestry and who, in the opinion of 
 70.10  the superintendent, have the capabilities to benefit from higher 
 70.11  education.  Distribution of the grants must be in accordance 
 70.12  with a plan prepared by the state board, with the advice of the 
 70.13  Minnesota Indian scholarship committee, that describes the 
 70.14  objectives and methods of implementing the grant program, 
 70.15  including the manner in which grants will be distributed in 
 70.16  proportion to the geographical distribution of the Indian 
 70.17  population of the state. 
 70.18     Sec. 26.  Minnesota Statutes 1996, section 124.574, 
 70.19  subdivision 2d, is amended to read: 
 70.20     Subd. 2d.  [BASE REVENUE.] (a) The secondary vocational 
 70.21  school-to-work program-disabled program base revenue equals the 
 70.22  sum of the following amounts computed using base year data: 
 70.23     (1) 68 percent of the salary of each essential licensed 
 70.24  person who provides direct instructional services to students 
 70.25  employed during that fiscal year for services rendered in that 
 70.26  district's secondary vocational education programs 
 70.27  school-to-work program for children with a disability; 
 70.28     (2) 47 percent of the costs of necessary equipment for 
 70.29  secondary vocational education programs school-to-work programs 
 70.30  for children with a disability; 
 70.31     (3) 47 percent of the costs of necessary travel between 
 70.32  instructional sites by secondary vocational education 
 70.33  school-to-work program teachers of children with a disability 
 70.34  but not including travel to and from local, regional, district, 
 70.35  state, or national vocational student organization meetings; 
 70.36     (4) 47 percent of the costs of necessary supplies for 
 71.1   secondary vocational education programs school-to-work programs 
 71.2   for children with a disability but not to exceed an average of 
 71.3   $47 in any one school year for each child with a disability 
 71.4   receiving these services; 
 71.5      (5) for secondary vocational education programs 
 71.6   school-to-work programs for children with disabilities provided 
 71.7   by a contract approved by the commissioner with public, private, 
 71.8   or voluntary agencies other than a Minnesota school district or 
 71.9   cooperative center, in place of programs provided by the 
 71.10  district, 52 percent of the difference between the amount of the 
 71.11  contract and the basic revenue of the district for that pupil 
 71.12  for the fraction of the school day the pupil receives services 
 71.13  under the contract; 
 71.14     (6) for secondary vocational education programs 
 71.15  school-to-work programs for children with disabilities provided 
 71.16  by a contract approved by the commissioner with public, private, 
 71.17  or voluntary agencies other than a Minnesota school district or 
 71.18  cooperative center, that are supplementary to a full educational 
 71.19  program provided by the school district, 52 percent of the 
 71.20  amount of the contract; and 
 71.21     (7) for a contract approved by the commissioner with 
 71.22  another Minnesota school district or cooperative center for 
 71.23  vocational evaluation services for children with a disability 
 71.24  for children that are not yet enrolled in grade 12, 52 percent 
 71.25  of the amount of the contract. 
 71.26     (b) If requested by a school district for school-to-work 
 71.27  programs during the base year for less than the full school 
 71.28  year, the commissioner may adjust the base revenue to reflect 
 71.29  the expenditures that would have occurred during the base year 
 71.30  had the program been operated for the full year. 
 71.31     Sec. 27.  Minnesota Statutes 1996, section 124.574, 
 71.32  subdivision 2f, is amended to read: 
 71.33     Subd. 2f.  [STATE TOTAL SECONDARY VOCATIONAL-DISABLED 
 71.34  SCHOOL-TO-WORK PROGRAM-DISABLED REVENUE.] The state total 
 71.35  secondary vocational-disabled school-to-work program-disabled 
 71.36  revenue for fiscal year 1996 1998 equals $8,520,000 $8,924,000.  
 72.1   The state total secondary vocational-disabled school-to-work 
 72.2   program-disabled revenue for fiscal year 1997 1999 equals 
 72.3   $8,830,000 $8,976,000.  The state total secondary 
 72.4   vocational-disabled school-to-work program-disabled revenue for 
 72.5   later fiscal years equals:  
 72.6      (1) the state total secondary vocational-disabled 
 72.7   school-to-work program-disabled revenue for the preceding fiscal 
 72.8   year; times 
 72.9      (2) the program growth factor; times 
 72.10     (3) the ratio of the state total average daily membership 
 72.11  for the current fiscal year to the state total average daily 
 72.12  membership for the preceding fiscal year. 
 72.13     Sec. 28.  Minnesota Statutes 1996, section 124.86, 
 72.14  subdivision 2, is amended to read: 
 72.15     Subd. 2.  [REVENUE AMOUNT.] An American Indian-controlled 
 72.16  tribal contract or grant school that is located on a reservation 
 72.17  within the state and that complies with the requirements in 
 72.18  subdivision 1 is eligible to receive tribal contract or grant 
 72.19  school aid.  The amount of aid is derived by: 
 72.20     (1) multiplying the formula allowance under section 
 72.21  124A.22, subdivision 2, times the difference between (a) the 
 72.22  actual pupil units as defined in section 124A.02, subdivision 
 72.23  15, in average daily membership, excluding section 124.17, 
 72.24  subdivision 2f, and (b) the number of pupils for the current 
 72.25  school year, weighted according to section 124.17, subdivision 
 72.26  1, receiving benefits under section 123.933 or 123.935 or for 
 72.27  which the school is receiving reimbursement under section 
 72.28  126.23; 
 72.29     (2) adding to the result in clause (1) an amount equal to 
 72.30  the product of the formula allowance under section 124A.22, 
 72.31  subdivision 2, times the tribal contract AFDC pupil units; 
 72.32     (3) subtracting from the result in clause (1) (2) the 
 72.33  amount of money allotted to the school by the federal government 
 72.34  through Indian School Equalization Program of the Bureau of 
 72.35  Indian Affairs, according to Code of Federal Regulations, title 
 72.36  25, part 39, subparts A to E, for the basic program as defined 
 73.1   by section 39.11, paragraph (b), for the base rate as applied to 
 73.2   kindergarten through twelfth grade, excluding small school 
 73.3   adjustments and additional weighting, but not money allotted 
 73.4   through subparts F to L for contingency funds, school board 
 73.5   training, student training, interim maintenance and minor 
 73.6   repair, interim administration cost, prekindergarten, and 
 73.7   operation and maintenance, and the amount of money that is 
 73.8   received according to section 126.23; 
 73.9      (3) (4) dividing the result in clause (2) (3) by the sum 
 73.10  of the actual pupil units in average daily membership, excluding 
 73.11  section 124.17, subdivision 2f, plus the tribal contract AFDC 
 73.12  pupil units; and 
 73.13     (4) (5) multiplying the sum of the actual pupil units, 
 73.14  including section 124.17, subdivision 2f, in average daily 
 73.15  membership plus the tribal contract AFDC pupil units by the 
 73.16  lesser of $1,500 or the sum of the result in clause (3) plus 
 73.17  $300 (4). 
 73.18     Sec. 29.  Minnesota Statutes 1996, section 124.86, is 
 73.19  amended by adding a subdivision to read: 
 73.20     Subd. 5.  [TRIBAL CONTRACT PUPIL UNITS.] Pupil units for 
 73.21  pupils enrolled in tribal contract schools shall be used only 
 73.22  for the purpose of computing tribal contract aid according to 
 73.23  this section. 
 73.24     Sec. 30.  Minnesota Statutes 1996, section 124C.45, 
 73.25  subdivision 1a, is amended to read: 
 73.26     Subd. 1a.  [RESERVE REVENUE.] Each school district that is 
 73.27  a member of an area learning center must reserve revenue in an 
 73.28  amount equal to at least 90 percent of the basic general 
 73.29  education revenue generated by each student attending an area 
 73.30  learning center program under this section.  The amount of 
 73.31  reserved revenue under this subdivision may only be spent on 
 73.32  program costs associated with the area learning center. 
 73.33     Sec. 31.  Minnesota Statutes 1996, section 126.23, 
 73.34  subdivision 1, is amended to read: 
 73.35     Subdivision 1.  [AID.] If a pupil enrolls in an alternative 
 73.36  program, eligible under section 126.22, subdivision 3, paragraph 
 74.1   (d), or subdivision 3a, operated by a private organization that 
 74.2   has contracted with a school district to provide educational 
 74.3   services for eligible pupils under section 126.22, subdivision 
 74.4   2, the district contracting with the private organization must 
 74.5   reimburse the provider an amount equal to at least 90 percent of 
 74.6   the basic average general education revenue per pupil of the 
 74.7   district for each pupil attending the program full time.  For a 
 74.8   pupil attending the program part time, basic general education 
 74.9   revenue paid to the program shall be reduced proportionately, 
 74.10  according to the amount of time the pupil attends the program, 
 74.11  and basic general education revenue paid to the district shall 
 74.12  be reduced accordingly.  Pupils for whom a district provides 
 74.13  reimbursement may not be counted by the district for any purpose 
 74.14  other than computation of basic general education revenue, 
 74.15  according to section 124A.22, subdivision 2.  If payment is made 
 74.16  to a district or program for a pupil under this section, the 
 74.17  department of children, families, and learning shall not make a 
 74.18  payment for the same pupil under section 126.22, subdivision 8. 
 74.19     Sec. 32.  Minnesota Statutes 1996, section 126.82, is 
 74.20  amended to read: 
 74.21     126.82 [STATE MULTICULTURAL EDUCATION ADVISORY COMMITTEE.] 
 74.22     (a) The commissioner shall appoint a state multicultural 
 74.23  education advisory committee to advise the department and the 
 74.24  state board on multicultural education.  The committee must have 
 74.25  12 members and be composed of representatives from among the 
 74.26  following groups and community organizations:  African-American, 
 74.27  Asian-Pacific, Hispanic, and American Indian. 
 74.28     (b) The state committee shall provide information and 
 74.29  recommendations on: 
 74.30     (1) department procedures for reviewing and approving 
 74.31  district plans and disseminating information on multicultural 
 74.32  education; 
 74.33     (2) department procedures for improving inclusive education 
 74.34  plans, curriculum and instruction improvement plans, and 
 74.35  performance-based assessments; 
 74.36     (3) developing learner outcomes which are multicultural; 
 75.1   and 
 75.2      (4) other recommendations that will further inclusive, 
 75.3   multicultural education. 
 75.4      (c) The committee shall also participate in determining the 
 75.5   criteria for and awarding the grants established under Laws 
 75.6   1993, chapter 224, article 8, section 22, subdivision 8. 
 75.7      Sec. 33.  Laws 1995, First Special Session chapter 3, 
 75.8   article 3, section 11, subdivision 1, is amended to read: 
 75.9      Subdivision 1.  [PURPOSE.] A pilot program is established 
 75.10  to support general education classroom teachers who teach 
 75.11  children with specific learning disabilities.  The goals of the 
 75.12  pilot program are to: 
 75.13     (1) increase participation of these children in 
 75.14  noncategorical programming designed to encourage their maximum 
 75.15  potential and maintain their self-esteem; 
 75.16     (2) demonstrate results in measurable educational outcomes; 
 75.17     (3) provide alternatives to special education that focus on 
 75.18  children's educational progress and results, respond to the 
 75.19  individual child, are efficient and cost-effective, and ensure 
 75.20  the rights of eligible children and their families to due 
 75.21  process; 
 75.22     (4) increase general education's ability to educate in a 
 75.23  manner that decreases the need for pull-out programs for 
 75.24  students with specific learning disabilities; and 
 75.25     (5) implement alternative approaches to conflict 
 75.26  resolution; and 
 75.27     (6) provide assistive technology to make individualized 
 75.28  student accommodations. 
 75.29     Sec. 34.  Laws 1995, First Special Session chapter 3, 
 75.30  article 3, section 11, subdivision 2, is amended to read: 
 75.31     Subd. 2.  [DEFINITIONS.] For the purposes of this section 
 75.32  the terms defined in this subdivision have the meanings given 
 75.33  them. 
 75.34     (a) "Accommodation" means any technique that alters the 
 75.35  educational setting to enable the child to reach the child's 
 75.36  maximum potential and to demonstrate more accurately the child's 
 76.1   knowledge and educational progress.  Accommodations may include, 
 76.2   but are not limited to:  preferential seating, paraphrasing of 
 76.3   information, instructions, practice activities and directions 
 76.4   provided in a manner consistent with the child's learning style, 
 76.5   opportunity for increased response time, more frequent 
 76.6   opportunity for review, extended time to complete assignments 
 76.7   and tests, larger print for assignments or tests, special study 
 76.8   sheets, extended or untimed tests, oral testing and answering, 
 76.9   and use of assistive technology within and outside the 
 76.10  educational environment. 
 76.11     (b) "Assistive technology device" means any item, piece of 
 76.12  equipment, or product system, whether acquired commercially off 
 76.13  the shelf, modified, or customized, that is used to increase, 
 76.14  maintain, or improve functional capabilities is as defined in 
 76.15  Minnesota Statutes, section 120.187. 
 76.16     (c) "Competency" means a documented and demonstrated 
 76.17  attitude, skill, or knowledge base resulting in an ability of 
 76.18  general education personnel to provide accommodations, 
 76.19  modifications, and personalized instruction, according to the 
 76.20  eligible child's individual learning styles, within general 
 76.21  education environments. 
 76.22     (d) "Consistently available" means that education personnel 
 76.23  who demonstrate competency are site-based and designated as a 
 76.24  resource for the development and use of accommodations, 
 76.25  modifications, and personalized instruction in general education.
 76.26     (e) "Eligible children" means those children who have 
 76.27  specific learning disabilities or conditions related to these 
 76.28  disabilities according to recognized professional standards and 
 76.29  documented by appropriately licensed personnel. 
 76.30     (f) "Learner plan" means a concise written plan that is 
 76.31  based on the eligible child's documented specific learning 
 76.32  disabilities and needs; includes the eligible child's strengths 
 76.33  that may compensate for those differences and needs; provides 
 76.34  the child, the child's parent, and all general education 
 76.35  personnel responsible for direct instruction with information 
 76.36  that results in clear understanding and subsequent use of 
 77.1   accommodations, modifications, and personalized instruction; and 
 77.2   includes methods of evaluating the child's progress that are 
 77.3   consistent with learning differences, needs, strengths, 
 77.4   modifications, and accommodations, and are at intervals 
 77.5   identical to the student population of the school in which the 
 77.6   child participating in Options Plus is enrolled. 
 77.7      (g) "Modification" means any technique that alters the 
 77.8   school work required, makes it different from the school work 
 77.9   required or other students in the same course, and encourages 
 77.10  the eligible child to reach the child's maximum potential and 
 77.11  facilitate educational success.  Modifications may include, but 
 77.12  are not limited to:  copies of teacher notes and lesson plans, 
 77.13  assisted note taking, reduced or altered assignments, increased 
 77.14  assignments in areas of strength, alternative test formats, 
 77.15  modified testing, peer assistance, cooperative learning, and 
 77.16  modified grading such as documentation of progress and results. 
 77.17     (h) "Parent" means a parent, guardian, or person acting as 
 77.18  a parent of a child. 
 77.19     (i) "Personalized instruction" means direct instruction 
 77.20  designed with knowledge of the child's learning style, 
 77.21  strengths, and differences, to assist the child to gain in skill 
 77.22  areas, so the child demonstrates progress toward and outcomes 
 77.23  necessary to become a successful citizen. 
 77.24     Sec. 35.  Laws 1995, First Special Session chapter 3, 
 77.25  article 3, section 11, subdivision 5, is amended to read: 
 77.26     Subd. 5.  [USE OF FUNDS.] Options Plus pilot program grants 
 77.27  shall be used to supplement staff development funding under 
 77.28  Minnesota Statutes, section 124A.29, to train general education 
 77.29  classroom teachers to meet the needs of children with specific 
 77.30  learning disabilities and provide assistive technology devices 
 77.31  in a general education setting.  The training shall result in 
 77.32  each participating teacher achieving the following competencies: 
 77.33     (1) understanding and communicating to the parents of the 
 77.34  child the options available for instruction; 
 77.35     (2) the ability to assess the learning environment and 
 77.36  provide the necessary accommodations, modifications, and 
 78.1   personalized instruction necessary to meet the needs of the 
 78.2   child; and 
 78.3      (3) the ability to work collaboratively and in teams with 
 78.4   other teachers and support and related services staff; and 
 78.5      (4) the ability to teach children to use the assistive 
 78.6   technology devices. 
 78.7      Sec. 36.  [OSSEO LEVY.] 
 78.8      For levies payable in 1998 only, independent school 
 78.9   district No. 279, Osseo, may levy a tax in an amount not to 
 78.10  exceed $800,000.  The proceeds of this levy must be used to 
 78.11  provide instructional services for at-risk children. 
 78.12     Sec. 37.  [APPROPRIATIONS.] 
 78.13     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 78.14  LEARNING.] The sums indicated in this section are appropriated 
 78.15  from the general fund to the department of children, families, 
 78.16  and learning for the fiscal years designated.  
 78.17     Subd. 2.  [AMERICAN INDIAN LANGUAGE AND CULTURE PROGRAMS.] 
 78.18  For grants to American Indian language and culture education 
 78.19  programs according to Minnesota Statutes, section 126.54, 
 78.20  subdivision 1: 
 78.21       $591,000     .....     1998
 78.22       $591,000     .....     1999
 78.23     The 1998 appropriation includes $59,000 for 1997 and 
 78.24  $532,000 for 1998.  
 78.25     The 1999 appropriation includes $59,000 for 1998 and 
 78.26  $532,000 for 1999.  
 78.27     Any balance in the first year does not cancel but is 
 78.28  available in the second year. 
 78.29     Subd. 3.  [AMERICAN INDIAN EDUCATION.] (a) For certain 
 78.30  American Indian education programs in school districts: 
 78.31       $175,000       .....     1998
 78.32       $175,000       .....     1999
 78.33     The 1998 appropriation includes $17,000 for 1997 and 
 78.34  $158,000 for 1998.  
 78.35     The 1999 appropriation includes $17,000 for 1998 and 
 78.36  $158,000 for 1999.  
 79.1      (b) These appropriations are available for expenditure with 
 79.2   the approval of the commissioner of the department of children, 
 79.3   families, and learning. 
 79.4      (c) The commissioner must not approve the payment of any 
 79.5   amount to a school district or school under this subdivision 
 79.6   unless that school district or school is in compliance with all 
 79.7   applicable laws of this state. 
 79.8      (d) Up to the following amounts may be distributed to the 
 79.9   following schools and school districts for each fiscal year:  
 79.10  $54,800, Pine Point School; $9,800 to independent school 
 79.11  district No. 166, Cook county; $14,900 to independent school 
 79.12  district No. 432, Mahnomen; $14,200 to independent school 
 79.13  district No. 435, Waubun; $42,200 to independent school district 
 79.14  No. 707, Nett Lake; and $39,100 to independent school district 
 79.15  No. 38, Red Lake.  These amounts must be spent only for the 
 79.16  benefit of American Indian pupils and to meet established state 
 79.17  educational standards or statewide requirements. 
 79.18     (e) Before a district or school can receive money under 
 79.19  this subdivision, the district or school must submit, to the 
 79.20  commissioner, evidence that it has complied with the uniform 
 79.21  financial accounting and reporting standards act, Minnesota 
 79.22  Statutes, sections 121.904 to 121.917. 
 79.23     Subd. 4.  [AMERICAN INDIAN POST-SECONDARY PREPARATION 
 79.24  GRANTS.] For American Indian post-secondary preparation grants 
 79.25  according to Minnesota Statutes, section 124.481: 
 79.26       $857,000     .....     1998
 79.27       $857,000     .....     1999
 79.28     Any balance in the first year does not cancel but is 
 79.29  available in the second year. 
 79.30     Subd. 5.  [AMERICAN INDIAN SCHOLARSHIPS.] For American 
 79.31  Indian scholarships according to Minnesota Statutes, section 
 79.32  124.48: 
 79.33       $1,600,000     .....     1998 
 79.34       $1,600,000     .....     1999 
 79.35     Any balance in the first year does not cancel but is 
 79.36  available in the second year. 
 80.1      Subd. 6.  [INDIAN TEACHER PREPARATION GRANTS.] (a) For 
 80.2   joint grants to assist Indian people to become teachers: 
 80.3        $190,000     .....     1998 
 80.4        $190,000     .....     1999 
 80.5      (b) Up to $70,000 each year is for a joint grant to the 
 80.6   University of Minnesota at Duluth and the Duluth school district.
 80.7      (c) Up to $40,000 each year is for a joint grant to each of 
 80.8   the following: 
 80.9      (1) Bemidji state university and the Red Lake school 
 80.10  district; 
 80.11     (2) Moorhead state university and a school district located 
 80.12  within the White Earth reservation; and 
 80.13     (3) Augsburg college, independent school district No. 625, 
 80.14  St. Paul, and the Minneapolis school district. 
 80.15     (d) Money not used for students at one location may be 
 80.16  transferred for use at another location. 
 80.17     (e) Any balance in the first year does not cancel but is 
 80.18  available in the second year. 
 80.19     Subd. 7.  [TRIBAL CONTRACT SCHOOLS.] For tribal contract 
 80.20  school aid according to Minnesota Statutes, section 124.86: 
 80.21       $2,243,000     .....     1998
 80.22       $2,689,000     .....     1999
 80.23     The 1998 appropriation includes $91,000 for 1997 and 
 80.24  $2,152,000 for 1998. 
 80.25     The 1999 appropriation includes $238,000 for 1998 and 
 80.26  $2,451,000 for 1999. 
 80.27     Subd. 8.  [EARLY CHILDHOOD PROGRAMS AT TRIBAL SCHOOLS.] For 
 80.28  early childhood family education programs at tribal contract 
 80.29  schools: 
 80.30       $68,000     .....     1998 
 80.31       $68,000     .....     1999 
 80.32     Subd. 9.  [AMERICAN SIGN LANGUAGE; TEACHER EDUCATION 
 80.33  HEARING.] To assist school districts in educating teachers in 
 80.34  American sign language: 
 80.35       $13,000     .....     1998
 80.36       $12,000     .....     1999
 81.1      Any balance in the first year does not cancel but is 
 81.2   available in the second year. 
 81.3      Subd. 10.  [MEXICAN ORIGIN EDUCATION GRANTS.] For grants 
 81.4   for a Mexican origin education pilot grant program: 
 81.5        $50,000     .....     1998
 81.6        $25,000     .....     1999
 81.7      Any balance in the first year does not cancel but is 
 81.8   available in the second year. 
 81.9      Subd. 11.  [LAY ADVOCATES.] To pay or reimburse lay 
 81.10  advocates for their time and expense as provided in Minnesota 
 81.11  Statutes, section 120.17: 
 81.12       $10,000     .....     1998
 81.13     This appropriation is available until June 30, 1999. 
 81.14     Subd. 12.  [OPTIONS PLUS PILOT GRANTS.] For grants to 
 81.15  school districts for options plus pilot programs: 
 81.16       $150,000    .....     1998 
 81.17     Each grant shall not exceed $50,000. 
 81.18     This appropriation is available until June 30, 1999.  
 81.19     Subd. 13.  [MAGNET SCHOOL GRANTS.] For magnet school and 
 81.20  program grants: 
 81.21       $2,000,000     .....     1998 
 81.22       $2,000,000     .....     1999 
 81.23     These amounts must be used for planning and developing 
 81.24  magnet schools and magnet programs. 
 81.25     Subd. 14.  [INTEGRATION PROGRAMS.] For grants according to: 
 81.26  minority fellowship grants according to Laws 1994, chapter 647, 
 81.27  article 8, section 29; minority teacher incentives according to 
 81.28  Minnesota Statutes, section 124.278; teachers of color grants 
 81.29  according to Minnesota Statutes, section 125.623; and cultural 
 81.30  exchange grants according to Minnesota Statutes, section 126.43: 
 81.31       $1,000,000     .....     1998
 81.32       $1,000,000     .....     1999
 81.33     Any balance in the first year does not cancel but is 
 81.34  available in the second year. 
 81.35     In awarding teacher of color grants, priority must be given 
 81.36  to districts that have students who are currently in the process 
 82.1   of completing their academic program. 
 82.2      Subd. 15.  [SPECIAL EDUCATION AID.] For special education 
 82.3   aid according to Minnesota Statutes, section 124.32: 
 82.4        $282,508,000     .....     1998 
 82.5        $381,302,000     .....     1999 
 82.6      The 1998 appropriation includes $24,346,000 for 1997 and 
 82.7   $258,162,000 for 1998.  
 82.8      The 1999 appropriation includes $28,684,000 for 1998 and 
 82.9   $352,618,000 for 1999.  
 82.10     Subd. 16.  [AID FOR CHILDREN WITH A DISABILITY.] For aid 
 82.11  according to Minnesota Statutes, section 124.32, subdivision 6, 
 82.12  for children with a disability placed in residential facilities 
 82.13  within the district boundaries for whom no district of residence 
 82.14  can be determined: 
 82.15       $586,000     .....     1998 
 82.16       $684,000     .....     1999 
 82.17     If the appropriation for either year is insufficient, the 
 82.18  appropriation for the other year is available.  Any balance in 
 82.19  the first year does not cancel but is available in the second 
 82.20  year. 
 82.21     Subd. 17.  [TRAVEL FOR HOME-BASED SERVICES.] For aid for 
 82.22  teacher travel for home-based services according to Minnesota 
 82.23  Statutes, section 124.32, subdivision 2b: 
 82.24       $107,000     .....     1998 
 82.25       $111,000     .....     1999 
 82.26     The 1998 appropriation includes $8,000 for 1997 and $99,000 
 82.27  for 1998.  
 82.28     The 1999 appropriation includes $10,000 for 1998 and 
 82.29  $101,000 for 1999.  
 82.30     Subd. 18.  [SPECIAL EDUCATION EXCESS COST AID.] For excess 
 82.31  cost aid: 
 82.32       $28,045,000     .....     1998 
 82.33       $47,654,000     .....     1999 
 82.34     The 1998 appropriation includes $1,242,000 for 1997 and 
 82.35  $26,803,000 for 1998.  
 82.36     The 1999 appropriation includes $2,978,000 for 1998 and 
 83.1   $44,676,000 for 1999. 
 83.2      Subd. 19.  [TARGETED NEEDS AID.] For targeted needs aid: 
 83.3        $44,064,000     .....     1998 
 83.4        $ 2,547,000     .....     1999 
 83.5      (a) Of the 1998 amount, $930,000 is for 1997 limited 
 83.6   English proficiency aid and $10,533,000 is for 1998 limited 
 83.7   English proficiency aid.  Of the 1998 amount, $1,364,000 is for 
 83.8   1997 assurance of mastery aid and $12,393,000 is for 1998 
 83.9   assurance of mastery aid.  Of the 1998 amount, $18,844,000 is 
 83.10  for 1998 integration aid. 
 83.11     (b) Of the 1999 amount, $1,170,000 is for 1998 limited 
 83.12  English proficiency aid and $0 is for 1999 limited English 
 83.13  proficiency aid.  Of the 1999 amount, $1,377,000 is for 1998 
 83.14  assurance of mastery aid and $0 is for 1999 assurance of mastery 
 83.15  aid.  
 83.16     (c) As a condition of receiving a grant, each district must 
 83.17  continue to report its costs according to the uniform financial 
 83.18  accounting and reporting system.  As a further condition of 
 83.19  receiving a grant, each district must submit a report to the 
 83.20  chairs of the education committees of the legislature about the 
 83.21  actual expenditures it made for integration using the grant 
 83.22  money including achievement results.  These grants may be used 
 83.23  to transport students attending a nonresident district under 
 83.24  Minnesota Statutes, section 120.062, to the border of the 
 83.25  resident district.  A district may allocate a part of the grant 
 83.26  to the transportation fund for this purpose. 
 83.27     Subd. 20.  [SCHOOL-TO-WORK PROGRAMS; STUDENTS WITH 
 83.28  DISABILITIES.] For aid for school-to-work programs for pupils 
 83.29  with disabilities according to Minnesota Statutes, section 
 83.30  124.574: 
 83.31       $7,044,000     .....     1998 
 83.32       $7,985,000     .....     1999 
 83.33     The 1998 appropriation includes $618,000 for 1997 and 
 83.34  $6,426,000 for 1998.  
 83.35     The 1999 appropriation includes $713,000 for 1998 and 
 83.36  $7,272,000 for 1999.  
 84.1      Subd. 21.  [SPECIAL PROGRAMS EQUALIZATION AID.] For special 
 84.2   education levy equalization aid according to Minnesota Statutes, 
 84.3   section 124.321: 
 84.4        $11,195,000     .....     1998
 84.5        $ 5,780,000     .....     1999
 84.6      The 1998 appropriation includes $1,783,000 for 1997 and 
 84.7   $9,412,000 for 1998.  
 84.8      The 1999 appropriation includes $1,045,000 for 1998 and 
 84.9   $4,735,000 for 1999. 
 84.10     Subd. 22.  [INTEGRATION AID.] For integration aid: 
 84.11       $26,124,000       .....     1999 
 84.12     This appropriation is based on an entitlement of 
 84.13  $29,026,000 
 84.14     Subd. 23.  [CENTRAL MINNESOTA AREA LEARNING CENTER.] For a 
 84.15  grant to two or more of the following school districts, 
 84.16  independent school district Nos. 47, Sauk Rapids; 51, Foley; 
 84.17  738, Holdingford; 739, Kimball; 742, St. Cloud; 748, Sartell; 
 84.18  and 750, Cold Spring, that form a joint powers agreement under 
 84.19  Minnesota Statutes, section 471.59, to establish the central 
 84.20  Minnesota area learning center: 
 84.21       $130,000     .....     1998 
 84.22     This appropriation is available until June 30, 1999. 
 84.23     Subd. 24.  [LOW-INCOME CONCENTRATION GRANTS.] For 
 84.24  low-income concentration grants under Laws 1994, chapter 647, 
 84.25  article 8, section 43: 
 84.26       $1,838,000       .....     1998 
 84.27       $1,838,000       .....     1999 
 84.28     Each grant shall be for no more than $52,500. 
 84.29     Subd. 25.  [NETT LAKE.] For grants to independent school 
 84.30  district No. 707, Nett Lake: 
 84.31       $79,000     .....     1998 
 84.32       $60,000     .....     1999 
 84.33     $19,000 in 1998 is for a grant to independent school 
 84.34  district No. 707, Nett Lake, to reimburse the district for 
 84.35  property and boiler insurance premiums paid in fiscal year 1996. 
 84.36     $30,000 in 1998 and $30,000 in 1999 are for grants to 
 85.1   independent school district No. 707, Nett Lake, to pay property 
 85.2   insurance and boiler insurance premiums, and insurance premiums 
 85.3   under Minnesota Statutes, section 466.06. 
 85.4      $30,000 in 1998 and $30,000 in 1999 are for grants to 
 85.5   independent school district No. 707, Nett Lake, for the payment 
 85.6   of obligations of the school district for unemployment 
 85.7   compensation.  The appropriation must be paid to the appropriate 
 85.8   state agency for such purposes in the name of the school 
 85.9   district. 
 85.10     Subd. 26.  [NETT LAKE MEDIA SPECIALIST.] For a grant to 
 85.11  independent school district No. 707, Nett Lake, for a media 
 85.12  specialist for preschool through grade 6: 
 85.13          $35,000     .....     1998 
 85.14     Subd. 27.  [FIRST GRADE PREPAREDNESS.] For grants for the 
 85.15  first grade preparedness program under Minnesota Statutes, 
 85.16  section 124.2613, and for school sites that have provided a 
 85.17  full-day kindergarten option for kindergarten students enrolled 
 85.18  in fiscal years 1996 and 1997: 
 85.19       $3,900,000     .....     1998 
 85.20       $3,900,000     .....     1999 
 85.21     To be a qualified site, licensed teachers must have taught 
 85.22  the optional full-day kindergarten classes.  A district that 
 85.23  charged a fee for students participating in an optional full-day 
 85.24  program is eligible to receive the grant to provide full-day 
 85.25  kindergarten for all students as required by Minnesota Statutes, 
 85.26  section 124.2613, subdivision 4.  Districts with eligible sites 
 85.27  must apply to the commissioner of children, families, and 
 85.28  learning for a grant. 
 85.29     This appropriation is in addition to appropriations for the 
 85.30  program under this act and Laws 1996, chapter 412, article 1, 
 85.31  section 34, subdivision 2, and must be used to expand the number 
 85.32  of sites providing first grade preparedness.  The commissioner 
 85.33  shall make grants to eligible sites within the limits of the 
 85.34  appropriation. 
 85.35     Sec. 38.  [REPEALER.] 
 85.36     Minnesota Statutes 1996, sections 124.3201, subdivisions 2a 
 86.1   and 2b; and 128B.10, are repealed. 
 86.2      Sec. 39.  [EFFECTIVE DATE.] 
 86.3      (a) Sections 2, 30, and 31 are effective for the 1997-1998 
 86.4   school year and thereafter. 
 86.5      (b) Sections 4 and 22 are effective for revenue for fiscal 
 86.6   year 1999.  
 86.7      (c) Section 5 is effective the day following final 
 86.8   enactment. 
 86.9      (d) Sections 6, 20, 24, and 38 are effective retroactively 
 86.10  to July 1, 1996. 
 86.11                             ARTICLE 3
 86.12                        LIFEWORK DEVELOPMENT
 86.13     Section 1.  Minnesota Statutes 1996, section 121.11, is 
 86.14  amended by adding a subdivision to read: 
 86.15     Subd. 7e.  [GRADUATION EDUCATION DEVELOPMENT TESTS 
 86.16  RULES.] The state board may amend rules to reflect changes in 
 86.17  the national minimum standard score for passing the Graduation 
 86.18  Education Development (GED) tests. 
 86.19     Sec. 2.  [121.498] [MINNESOTA CAREER INFORMATION SYSTEM.] 
 86.20     (a) The department of children, families, and learning, 
 86.21  through the Minnesota career information system (MCIS), may 
 86.22  provide career information to, including, but not limited to, 
 86.23  school districts and other educational organizations, employment 
 86.24  and training services, human service agencies, libraries, and 
 86.25  families.  The department shall collect fees necessary to 
 86.26  recover all expenditures related to the operation of the 
 86.27  Minnesota career information system. 
 86.28     (b) Grants and other legislative funds may be accepted and 
 86.29  used for the improvement or operation of the Minnesota career 
 86.30  information system.  All receipts shall be deposited in a 
 86.31  special account in the special revenue fund that shall be 
 86.32  carried over at the end of each fiscal year.  The money in the 
 86.33  account, along with any interest earned, is appropriated to the 
 86.34  commissioner of children, families, and learning for the 
 86.35  Minnesota career information system and must be for the sole use 
 86.36  and benefit of the system.  The department shall recognize that 
 87.1   the Minnesota career information system operates under a 
 87.2   self-supporting directive, and accordingly, must provide 
 87.3   sufficient administrative latitude within the confines of law to 
 87.4   enable the system to operate effectively. 
 87.5      Sec. 3.  Minnesota Statutes 1996, section 121.615, 
 87.6   subdivision 2, is amended to read: 
 87.7      Subd. 2.  [CREATION OF FOUNDATION.] There is created the 
 87.8   Minnesota school-to-work student organization foundation.  The 
 87.9   purpose of the foundation shall be to promote vocational student 
 87.10  organizations and applied leadership opportunities in Minnesota 
 87.11  public and nonpublic schools through public-private 
 87.12  partnerships.  The foundation shall be a nonprofit 
 87.13  organization.  The board of directors of the foundation and 
 87.14  activities of the foundation are under the direction of 
 87.15  the department of children, families, and learning state board 
 87.16  of education.  
 87.17     Sec. 4.  Minnesota Statutes 1996, section 121.615, 
 87.18  subdivision 3, is amended to read: 
 87.19     Subd. 3.  [BOARD OF DIRECTORS.] The board of directors of 
 87.20  the school-to-work student organization foundation shall consist 
 87.21  of: 
 87.22     (1) chairs or designees from the board of directors of FFA 
 87.23  (formerly Future Farmers of America), Future Leaders of 
 87.24  America/Future Homemakers of America, post-secondary agriculture 
 87.25  students, home economics related occupations, Health Occupations 
 87.26  Student Association, Distributive Education Clubs of America, 
 87.27  Delta Upsilon Chi, Secondary Vocational Industrial Clubs of 
 87.28  America, Post-secondary Vocational Industrial Clubs of America, 
 87.29  Secondary Business Professionals of America, and Post-secondary 
 87.30  Business Professionals of America; 
 87.31     (2) four members from business and industry appointed by 
 87.32  the governor; and 
 87.33     (3) five students representing diverse vocational areas, 
 87.34  three of whom are appointed by the commissioner of the 
 87.35  department of children, families, and learning and two of whom 
 87.36  are appointed by the chancellor of the Minnesota state colleges 
 88.1   and universities with the advice of the executive councils of 
 88.2   each vocational education student organization. 
 88.3      (1) seven members appointed by the board of directors of 
 88.4   the school-to-work student organizations and chosen so that each 
 88.5   represents one of the following career areas:  agriculture, 
 88.6   family and consumer sciences, service occupations, health 
 88.7   occupations, marketing, business, and technical/industrial; 
 88.8      (2) seven members from business, industry, and labor 
 88.9   appointed by the governor to staggered terms and chosen so that 
 88.10  each represents one of the following career areas:  agriculture, 
 88.11  family and consumer sciences, service occupations, health 
 88.12  occupations, marketing, business, and technical/industrial; 
 88.13     (3) five students or alumni of school-to-work student 
 88.14  organizations representing diverse career areas, three from 
 88.15  secondary student organizations, and two from post-secondary 
 88.16  student organizations.  The students or alumni shall be 
 88.17  appointed by the criteria and process agreed upon by the 
 88.18  executive directors of the student-to-work organizations; and 
 88.19     (4) four members from education appointed by the governor 
 88.20  to staggered terms and chosen so that each represents one of the 
 88.21  following groups:  school district level administrators, 
 88.22  secondary school administrators, middle school administrators, 
 88.23  and post-secondary administrators. 
 88.24     Executive directors of vocational education student 
 88.25  organizations are ex officio, nonvoting members of the board. 
 88.26     Sec. 5.  Minnesota Statutes 1996, section 121.615, 
 88.27  subdivision 5, is amended to read: 
 88.28     Subd. 5.  [POWERS AND DUTIES.] The foundation may: 
 88.29     (1) identify and plan common goals and priorities for the 
 88.30  various school-to-work student organizations in Minnesota; 
 88.31     (2) publish brochures or booklets relating to the purposes 
 88.32  of the foundation and collect reasonable fees for the 
 88.33  publications; 
 88.34     (3) seek and receive public and private money, grants, and 
 88.35  in-kind services and goods from nonstate sources for the 
 88.36  purposes of the foundation, without complying with section 7.09, 
 89.1   subdivision 1; 
 89.2      (4) contract with consultants on behalf of the 
 89.3   school-to-work student organizations; and 
 89.4      (5) plan, implement, and expend money for awards and other 
 89.5   forms of recognition for school-to-work student activities 
 89.6   programs; and 
 89.7      (6) identifying an appropriate name for the foundation. 
 89.8      Sec. 6.  Minnesota Statutes 1996, section 121.615, 
 89.9   subdivision 6, is amended to read: 
 89.10     Subd. 6.  [CONTRACTS.] The foundation board of directors 
 89.11  shall review and approve foundation personnel and programming 
 89.12  contracts each contract of the board.  Each contract of the 
 89.13  foundation board shall be subject to the same review and 
 89.14  approval procedures as a contract of the state board of 
 89.15  education. 
 89.16     Sec. 7.  Minnesota Statutes 1996, section 121.615, 
 89.17  subdivision 7, is amended to read: 
 89.18     Subd. 7.  [FOUNDATION STAFF.] The commissioner of the 
 89.19  department of children, families, and learning state board of 
 89.20  education shall appoint the executive director of the foundation 
 89.21  from three candidates nominated and submitted by the foundation 
 89.22  board of directors and, as necessary, other staff who shall 
 89.23  perform duties and have responsibilities solely related to the 
 89.24  foundation.  The employees appointed are not state employees 
 89.25  under chapter 43A, but are covered under section 3.736.  The 
 89.26  employees may participate in the state health and state 
 89.27  insurance plans for employees in unclassified service.  The 
 89.28  employees shall be supervised by the executive director. 
 89.29     The commissioner shall appoint from the office of lifework 
 89.30  development a liaison to the foundation board. 
 89.31     Sec. 8.  Minnesota Statutes 1996, section 121.615, 
 89.32  subdivision 8, is amended to read: 
 89.33     Subd. 8.  [PUBLIC FUNDING.] The commissioner of the 
 89.34  department of children, families, and learning state shall 
 89.35  identify and secure appropriate sources of state and federal 
 89.36  funding from various state agencies, including, but not limited 
 90.1   to, Minnesota state colleges and universities, for the operation 
 90.2   and development of basic staffing of the foundation and 
 90.3   individual student school-to-work student organizations. 
 90.4      Sec. 9.  Minnesota Statutes 1996, section 121.615, 
 90.5   subdivision 9, is amended to read: 
 90.6      Subd. 9.  [PRIVATE FUNDING.] The foundation shall seek 
 90.7   private resources to supplement the allocated state and 
 90.8   federal available public money.  Individuals, businesses, and 
 90.9   other organizations may contribute to the foundation in any 
 90.10  manner specified by the board of directors.  All money received 
 90.11  shall be administered by the board of directors. 
 90.12     Sec. 10.  Minnesota Statutes 1996, section 121.615, 
 90.13  subdivision 10, is amended to read: 
 90.14     Subd. 10.  [REPORT.] The board of directors of the 
 90.15  foundation shall submit an annual report and assessment to the 
 90.16  office of lifework development and on the progress of its 
 90.17  activities to the state board of education and to the board of 
 90.18  trustees of the Minnesota state colleges and universities.  The 
 90.19  annual report shall contain a financial report for the preceding 
 90.20  year.  The foundation shall submit a biennium report to the 
 90.21  legislature before February 15, in the odd-numbered year. 
 90.22     Sec. 11.  [121.618] [LIFEWORK LEARNING.] 
 90.23     Subdivision 1.  [FUNCTIONS.] Lifework learning sites must: 
 90.24     (1) provide teaching and learning opportunities that 
 90.25  demonstrate and model state-of-the-art practice in lifework 
 90.26  education; 
 90.27     (2) offer professional development opportunities that train 
 90.28  school personnel and other partners about state-of-the-art 
 90.29  practices in lifework education; 
 90.30     (3) perform research and development by conducting needs 
 90.31  assessment, and developing, field-testing, and evaluating 
 90.32  current practice and advance state-of-the-art practice in 
 90.33  lifework education; and 
 90.34     (4) serve as a clearinghouse for selecting and 
 90.35  disseminating materials and information about state-of-the-art 
 90.36  practice in lifework education throughout the state. 
 91.1      Subd. 2.  [CRITERIA.] The department must develop a process 
 91.2   for selecting learning sites, one of which must be located in 
 91.3   the seven county metropolitan area and one of which must be 
 91.4   located in greater Minnesota.  The commissioner shall select 
 91.5   learning center sites that: 
 91.6      (1) are committed to the site's purpose and focus; 
 91.7      (2) are able and willing to work with partners in 
 91.8   supporting and housing a lifework learning site; 
 91.9      (3) are ready and competent to realize the site's duties; 
 91.10  and 
 91.11     (4) will colocate with other educational, commercial, or 
 91.12  community enterprises. 
 91.13     Subd. 3.  [DUTIES.] The lifework learning site must: 
 91.14     (1) develop and model state-of-the-art practice of lifework 
 91.15  learning; 
 91.16     (2) train school and nonschool staff to implement 
 91.17  state-of-the-art practice of lifework learning; 
 91.18     (3) continuously improve state-of-the-art practice of 
 91.19  lifework education at lifework learning sites and throughout 
 91.20  Minnesota; and 
 91.21     (4) provide information about the state-of-the-art practice 
 91.22  in lifework learning and how to implement it.  
 91.23     Subd. 4.  [FUNDING.] A lifework learning site is eligible 
 91.24  for funding under the laboratory school grant program. 
 91.25     Sec. 12.  Minnesota Statutes 1996, section 121.703, 
 91.26  subdivision 3, is amended to read: 
 91.27     Subd. 3.  [DUTIES.] (a) The commission shall: 
 91.28     (1) develop, with the assistance of the governor, the 
 91.29  commissioner of children, families, and learning, and affected 
 91.30  state agencies, a comprehensive state plan to provide services 
 91.31  under sections 121.701 to 121.710 and federal law; 
 91.32     (2) actively pursue public and private funding sources for 
 91.33  services, including funding available under federal law; 
 91.34     (3) coordinate volunteer service-learning programs within 
 91.35  the state; 
 91.36     (4) develop, in cooperation with the workforce development 
 92.1   council and the commissioner of children, families, and 
 92.2   learning, volunteer service-learning programs, including 
 92.3   curriculum, materials, and methods of instruction; 
 92.4      (5) work collaboratively with the workforce development 
 92.5   council, the commissioner of children, families, and learning, 
 92.6   schools, public and private agencies, for-profit and nonprofit 
 92.7   employers, and labor unions to identify mentoring and 
 92.8   service-learning opportunities, solicit and recruit participants 
 92.9   for these programs, and disseminate information on the programs; 
 92.10     (6) administer the youth works grant program under sections 
 92.11  121.704 to 121.709, with assistance from the commissioner of 
 92.12  children, families, and learning and the executive director of 
 92.13  the higher education services office, including soliciting and 
 92.14  approving grant applications from eligible organizations, and 
 92.15  administering individual postservice benefits; 
 92.16     (7) establish an evaluation plan for programs developed and 
 92.17  services provided under sections 121.701 to 121.710; 
 92.18     (8) report to the governor, commissioner of children, 
 92.19  families, and learning, and legislature; 
 92.20     (9) provide oversight and support for school, campus, and 
 92.21  community-based service programs; and 
 92.22     (10) administer the federal AmeriCorps program. 
 92.23     (b) Nothing in sections 121.701 to 121.710 precludes an 
 92.24  organization from independently seeking public or private 
 92.25  funding to accomplish purposes similar to those described in 
 92.26  paragraph (a). 
 92.27     (c) The commissioner of children, families, and learning 
 92.28  shall consult with commission members before the commissioner 
 92.29  selects the executive director for the commission, who shall 
 92.30  serve in the unclassified service. 
 92.31     Sec. 13.  Minnesota Statutes 1996, section 124.193, is 
 92.32  amended to read: 
 92.33     124.193 [PROHIBITED AID AND LEVIES.] 
 92.34     Subdivision 1.  [GENERAL PROHIBITION.] Unless specifically 
 92.35  permitted in the provision authorizing an aid or a levy, 
 92.36  cooperative units of government defined in section 123.35, 
 93.1   subdivision 19b, paragraph (d), are prohibited from making a 
 93.2   property tax levy or qualifying for or receiving any form of 
 93.3   state aid except that a cooperative unit may apply for and 
 93.4   receive a grant on behalf of its members as provided in 
 93.5   subdivisions 2 and 3. 
 93.6      Subd. 2.  [GRANTS.] A cooperative unit may apply for and 
 93.7   receive a grant on behalf of its members. 
 93.8      Subd. 3.  [ALLOCATION FROM MEMBERS.] By July 1 of each 
 93.9   year, a school district may, by board resolution, allocate to 
 93.10  cooperative units of which it is a member an amount not to 
 93.11  exceed the lesser of (a) the district's general education aid 
 93.12  for the fiscal year beginning July 1, according to sections 
 93.13  124A.036, subdivision 5, and 124A.23, subdivision 4, or (b) an 
 93.14  amount equal to $67 times the fund balance pupil units for the 
 93.15  fiscal year beginning July 1.  By July 15 of each year, the 
 93.16  school district must report to the commissioner the amount 
 93.17  allocated.  The amount allocated to cooperative units shall be 
 93.18  paid to cooperative units according to section 124.195, 
 93.19  subdivision 15.  Amounts allocated to cooperative units under 
 93.20  this subdivision shall be recognized and reported as revenues 
 93.21  and expenditures on the school district's books of account under 
 93.22  sections 121.904 and 121.906. 
 93.23     Sec. 14.  Minnesota Statutes 1996, section 124.195, is 
 93.24  amended by adding a subdivision to read: 
 93.25     Subd. 15.  [PAYMENTS TO COOPERATIVES.] Notwithstanding 
 93.26  subdivision 3, 90 percent of the amounts allocated to 
 93.27  cooperative units under section 124.193, subdivision 3, shall be 
 93.28  paid in equal installments on August 30, December 30, and March 
 93.29  30, with a ten percent final adjustment payment on October 30 of 
 93.30  the next fiscal year. 
 93.31     Sec. 15.  Minnesota Statutes 1996, section 124.573, 
 93.32  subdivision 2f, is amended to read: 
 93.33     Subd. 2f.  [AID GUARANTEE.] Notwithstanding subdivision 2b, 
 93.34  the secondary vocational education aid for a school district is 
 93.35  not less than the lesser of: 
 93.36     (a) 95 percent of the secondary vocational education aid 
 94.1   the district received for the previous fiscal year; or 
 94.2      (b) 40 percent of the approved expenditures for secondary 
 94.3   vocational programs included in subdivision 2b, paragraph (b); 
 94.4   or 
 94.5      (c) notwithstanding paragraphs (a) and (b), a school 
 94.6   district's aid shall not be less than 25 percent of the lesser 
 94.7   of (1) $200,000, or (2) the approved expenditure included in 
 94.8   subdivision 2b, paragraph (b). 
 94.9      Sec. 16.  Minnesota Statutes 1996, section 124.574, 
 94.10  subdivision 1, is amended to read: 
 94.11     Subdivision 1.  The purpose of this section is to provide a 
 94.12  method to fund programs for secondary vocational education 
 94.13  school-to-work programs for children with a disability.  As used 
 94.14  in this section, the term "children with a disability" shall 
 94.15  have the meaning ascribed to it in section 120.03. 
 94.16     Sec. 17.  Minnesota Statutes 1996, section 124.574, 
 94.17  subdivision 5, is amended to read: 
 94.18     Subd. 5.  The aid provided pursuant to this section shall 
 94.19  be paid only for services rendered as designated in subdivision 
 94.20  2 or for the costs designated in subdivision 3 which are 
 94.21  incurred in secondary vocational education programs 
 94.22  school-to-work programs for children with a disability which are 
 94.23  approved by the commissioner of children, families, and learning 
 94.24  and operated in accordance with rules promulgated by the state 
 94.25  board.  These rules shall be subject to the restrictions 
 94.26  provided in section 124.573, subdivision 3.  The procedure for 
 94.27  application for approval of these programs shall be as provided 
 94.28  in section 124.32, subdivisions 7 and 10, and the application 
 94.29  review process shall be conducted by the vocational education 
 94.30  section of the state office of lifework development in the 
 94.31  department. 
 94.32     Sec. 18.  Minnesota Statutes 1996, section 124.574, 
 94.33  subdivision 6, is amended to read: 
 94.34     Subd. 6.  All aid pursuant to this section shall be paid to 
 94.35  the district or cooperative center providing the services.  All 
 94.36  aid received by a district or center from any source for 
 95.1   secondary vocational education school-to-work programs for 
 95.2   children with a disability shall be utilized solely for that 
 95.3   purpose. 
 95.4      Sec. 19.  Minnesota Statutes 1996, section 124.574, 
 95.5   subdivision 9, is amended to read: 
 95.6      Subd. 9.  [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 
 95.7   INTERMEDIATE DISTRICTS.] For purposes of this section and 
 95.8   section 124.321, a cooperative center or an intermediate 
 95.9   district shall allocate its approved expenditures for secondary 
 95.10  vocational programs school-to-work programs for children with a 
 95.11  disability among participating school districts.  Aid for 
 95.12  secondary vocational programs school-to-work programs for 
 95.13  children with a disability for services provided by a 
 95.14  cooperative or intermediate district shall be paid to the 
 95.15  participating school districts. 
 95.16     Sec. 20.  Minnesota Statutes 1996, section 124C.46, 
 95.17  subdivision 1, is amended to read: 
 95.18     Subdivision 1.  [PROGRAM FOCUS.] The programs and services 
 95.19  of a center must focus on academic and learning skills, applied 
 95.20  learning opportunities, trade and vocational skills, work-based 
 95.21  learning opportunities, work experience, youth service to the 
 95.22  community, and transition services.  The center shall coordinate 
 95.23  the use of other available educational services, social 
 95.24  services, health services, and post-secondary institutions in 
 95.25  the community and services area.  
 95.26     Sec. 21.  [126.685] [LIFEWORK DEVELOPMENT PLAN.] 
 95.27     A school district may require students in grades seven 
 95.28  through 12 to develop and maintain a record of all of the 
 95.29  students' lifework development activities.  This record would 
 95.30  include, but is not limited to, the students' goals, skills, 
 95.31  abilities, and interests, as well as information on formal 
 95.32  service learning, out-of-school learning experiences, and 
 95.33  career-related experiences, such as job shadowing, career 
 95.34  mentoring, internships, apprenticeships, entrepreneurship, and 
 95.35  other work-based learning activities.  This ongoing record would 
 95.36  assist the students in choosing their school-based courses and 
 96.1   assist them in the research and exploration of career options.  
 96.2   Each school year, the record would be reviewed by the student, 
 96.3   the student's parent or guardian, and qualified school personnel 
 96.4   to ensure that the record is updated and reflects the student's 
 96.5   changing life goals and aspirations.  The record would serve as 
 96.6   the basis of a lifework plan that would be developed before 
 96.7   graduation.  The plan would outline the skills the students need 
 96.8   to develop in order to attain their career aspirations.  The 
 96.9   plan would also outline future education and training options 
 96.10  necessary to achieve their lifework goals. 
 96.11     Sec. 22.  Minnesota Statutes 1996, section 136A.233, is 
 96.12  amended by adding a subdivision to read: 
 96.13     Subd. 4.  [COOPERATION WITH LOCAL SCHOOLS.] Each campus 
 96.14  using the state work study program is encouraged to cooperate 
 96.15  with its local public elementary and secondary schools to place 
 96.16  college work study students in activities in the schools, such 
 96.17  as tutoring, that assist students in kindergarten through grade 
 96.18  12 in meeting graduation standards.  College students shall work 
 96.19  under direct supervision; therefore, school hiring authorities 
 96.20  are not required to request criminal background checks on these 
 96.21  students under section 120.1045. 
 96.22     Sec. 23.  [PILOT PROGRAM.] 
 96.23     A high school student entrepreneurship program is 
 96.24  established within independent school district No. 175, 
 96.25  Westbrook, to increase entrepreneurship education in secondary 
 96.26  schools.  Independent school district No. 175, Westbrook, shall 
 96.27  operate a student-run business within Westbrook Walnut Grove 
 96.28  high school, during the period of time a grant is available for 
 96.29  that purpose. 
 96.30     Sec. 24.  [DAWSON-BOYD ADULT FARM MANAGEMENT LEVY.] 
 96.31     In addition to other levies, independent school district 
 96.32  No. 378, Dawson-Boyd, may levy an amount up to $132,000 for the 
 96.33  unreimbursed costs of an adult farm management program.  This 
 96.34  amount may be levied over a period of three years. 
 96.35     Sec. 25.  [SMALL SCHOOL VIABILITY PROJECT.] 
 96.36     Subdivision 1.  [PILOT PROJECT.] A small school viability 
 97.1   pilot project is created.  The purpose of the small school 
 97.2   viability project is to serve as a small school model for the 
 97.3   state of Minnesota demonstrating the capability of a small 
 97.4   school district to provide a curriculum and teaching methodology 
 97.5   allowing students to reach high levels of performance on the 
 97.6   state graduation standards. 
 97.7      Subd. 2.  [ACTIVITIES.] The school board of independent 
 97.8   school district No. 330, Heron Lake-Okabena, must develop its 
 97.9   small school viability project including its academic framework, 
 97.10  goals, and delivery system in consultation with community 
 97.11  members, teachers, and parents. 
 97.12     Subd. 3.  [REPORT.] The school district shall conduct an 
 97.13  ongoing study of the pilot program.  The study shall evaluate 
 97.14  program outcomes and student performance.  The study shall 
 97.15  compare outcomes and student performance to other similarly 
 97.16  situated school districts and measure changes in outcomes and 
 97.17  student performance within the school over time.  The school 
 97.18  district shall annually report its results to the legislature by 
 97.19  February 15 of each year.  A final report must be issued by 
 97.20  February 15, 2002. 
 97.21     Sec. 26.  [APPROPRIATIONS.] 
 97.22     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 97.23  LEARNING.] The sums indicated in this section are appropriated 
 97.24  from the general fund to the department of children, families, 
 97.25  and learning for the fiscal years designated.  
 97.26     Subd. 2.  [SECONDARY VOCATIONAL EDUCATION AID.] For 
 97.27  secondary vocational education aid according to Minnesota 
 97.28  Statutes, section 124.573: 
 97.29       $13,217,000     .....     1998 
 97.30       $13,355,000     .....     1999 
 97.31     The 1998 appropriation includes $1,180,000 for 1997 and 
 97.32  $12,037,000 for 1998.  
 97.33     The 1999 appropriation includes $1,337,000 for 1998 and 
 97.34  $12,018,000 for 1999.  
 97.35     Subd. 3.  [YOUTHWORKS PROGRAM.] For funding youthworks 
 97.36  programs according to Minnesota Statutes, sections 121.701 to 
 98.1   121.710: 
 98.2        $1,900,000     .....     1998 
 98.3        $1,900,000     .....     1999 
 98.4      The commissioner may allocate up to $50,000 of the 
 98.5   appropriation for the cost of administering the program. 
 98.6      A grantee organization may provide health and child care 
 98.7   coverage to the dependents of each participant enrolled in a 
 98.8   full-time youth works program to the extent such coverage is not 
 98.9   otherwise available. 
 98.10     Any balance in the first year does not cancel but is 
 98.11  available in the second year. 
 98.12     Subd. 4.  [ENTREPRENEURSHIP PILOT PROGRAM.] For the high 
 98.13  school student entrepreneurship program in independent school 
 98.14  district No. 175, Westbrook: 
 98.15       $75,000        .....     1998 
 98.16     This appropriation may be used for start-up expenses, 
 98.17  including, but not limited to, salaries, travel, seminars, 
 98.18  equipment purchases, contractual expenses, and other expenses 
 98.19  related to the start up of the student-run business. 
 98.20     This appropriation is available until June 30, 1999. 
 98.21     Subd. 5.  [EDUCATION AND EMPLOYMENT TRANSITIONS PROGRAM 
 98.22  GRANTS.] For education and employment transitions program: 
 98.23       $4,000,000      .....      1998 
 98.24       $4,000,000      .....      1999 
 98.25     (a) $500,000 each year is for development of MnCEPs, an 
 98.26  Internet-based education and employment information system.  
 98.27  These are one-time funds. 
 98.28     (b) $1,250,000 each year is for a rebate program for 
 98.29  employers who offer internships and other work experiences to 
 98.30  learners.  An employer rebate shall be awarded to an employer 
 98.31  with 250 or fewer employees.  An employer shall receive a rebate 
 98.32  of $500 for each paid youth internship and each paid education 
 98.33  internship, and $3,000 for each paid youth apprenticeship.  The 
 98.34  commissioner shall determine the application and payment process 
 98.35  and the amount of the rebate.  
 98.36     (c) $400,000 each year is for youth apprenticeship program 
 99.1   grants. 
 99.2      (d) $100,000 each year is for youth entrepreneurship grants 
 99.3   under Minnesota Statutes, section 121.72. 
 99.4      (e) $100,000 each year is for youth employer grants under 
 99.5   Laws 1995, First Special Session chapter 3, article 4, section 
 99.6   28. 
 99.7      (f) $150,000 each year is for parent and community 
 99.8   awareness training. 
 99.9      (g) $1,500,000 each year is for lifework development and 
 99.10  implementation activities and state-level activities, including 
 99.11  the governor's workforce development council. 
 99.12     Any balance in the first year does not cancel but is 
 99.13  available in the second year. 
 99.14     Subd. 6.  [MINNESOTA SCHOOL-TO-WORK STUDENT ORGANIZATION 
 99.15  FOUNDATION.] For the Minnesota school-to-work student 
 99.16  organization foundation under Minnesota Statutes, section 
 99.17  121.615: 
 99.18       $500,000       .....     1998 
 99.19       $500,000       .....     1999 
 99.20     Subd. 7.  [SOUTHWEST STAR CONCEPT SCHOOL.] For a grant to 
 99.21  independent school district No. 330, Heron Lake-Okabena, to 
 99.22  establish the Southwest Star Concept School: 
 99.23       $193,000       .....     1998 
 99.24     Of this amount, up to $150,000 is for equipment needs; up 
 99.25  to $8,100 is for activities beyond the classroom walls; and up 
 99.26  to $17,000 is for professional planning assistance.  Any 
 99.27  remaining funds may be used for monitoring, evaluating, and 
 99.28  reporting activities related to the case study prepared in 
 99.29  section 25.  
 99.30     This appropriation is available until June 30, 1999. 
 99.31     Subd. 8.  [WORKSTUDY STUDENT COMPENSATION.] For enabling 
 99.32  school districts to pay the employer's share of work study 
 99.33  students compensation under Minnesota Statutes, section 
 99.34  136A.233, subdivision 3: 
 99.35       $50,000        .....     1998 
 99.36       $50,000        .....     1999 
100.1      Money shall be available to districts upon request until 
100.2   the appropriation is exhausted.  The commissioner may establish 
100.3   an application procedure for allocating the money to districts. 
100.4      Subd. 9.  [JOB SHADOWING AT CAMP RIPLEY.] For a grant to 
100.5   the Mid-State Education District No. 6979, for a job shadowing 
100.6   program and internships: 
100.7        $150,000       .....     1998 
100.8        $150,000       .....     1999 
100.9      The programs shall be conducted in conjunction with the 
100.10  department of military affairs' programs based at Camp Ripley.  
100.11  The goals of the program are to: 
100.12     (1) provide "real-world" occupational experiences; 
100.13     (2) demonstrate integration of academic and vocational 
100.14  education in a worksite setting; 
100.15     (3) provide a more complete continuum of integrated 
100.16  experiences in order to meet Minnesota's graduation standards; 
100.17     (4) further develop the school-to-work career partnership; 
100.18  and 
100.19     (5) provide mentoring services from both the school-based 
100.20  and worksite perspectives. 
100.21     Sec. 27.  [REPEALER.] 
100.22     Laws 1993, chapter 146, article 5, section 20, is repealed. 
100.23  Minnesota Statutes 1996, section 126.113, is repealed. 
100.24     Sec. 28.  [EFFECTIVE DATES.] 
100.25     (a) Section 1 is effective the day following final 
100.26  enactment. 
100.27     (b) Sections 13 and 14 are effective July 1, 1997, for 
100.28  revenue for fiscal years 1998 and later. 
100.29     (c) Section 15 is effective for revenue for fiscal year 
100.30  1998. 
100.31                             ARTICLE 4 
100.32        EDUCATION ORGANIZATION, COOPERATION, AND FACILITIES
100.33     Section 1.  Minnesota Statutes 1996, section 120.0621, 
100.34  subdivision 5a, is amended to read: 
100.35     Subd. 5a.  [TUITION PAYMENTS.] In each odd-numbered year, 
100.36  before March 1, the state board of education commissioner shall 
101.1   agree to rates of tuition for Minnesota elementary and secondary 
101.2   pupils attending in other states for the next two fiscal 
101.3   years when the other state agrees to negotiate tuition rates.  
101.4   The board commissioner shall negotiate equal, reciprocal rates 
101.5   with the designated authority in each state for pupils who 
101.6   reside in an adjoining state and enroll in a Minnesota school 
101.7   district.  The rates must be at least equal to the tuition 
101.8   specified in section 120.08, subdivision 1.  If the other state 
101.9   does not agree to negotiate a general tuition rate, a Minnesota 
101.10  school district shall negotiate a tuition rate with the school 
101.11  district in the other state that sends a pupil to or receives a 
101.12  pupil from the Minnesota school district.  The tuition rate for 
101.13  a pupil with a disability must be equal to the actual cost of 
101.14  instruction and services provided.  The resident district of a 
101.15  Minnesota pupil attending in another state under this section 
101.16  must pay the amount of tuition agreed upon in this section to 
101.17  the district of attendance, prorated on the basis of the 
101.18  proportion of the school year attended. 
101.19     Sec. 2.  Minnesota Statutes 1996, section 120.0621, 
101.20  subdivision 5b, is amended to read: 
101.21     Subd. 5b.  [TRANSPORTATION OF STUDENTS.] (a) The agreement 
101.22  under subdivision 5a with each state must specify that the 
101.23  attending district in each state transport a pupil from the 
101.24  district boundary to the school of attendance.  
101.25     (b) Notwithstanding paragraph (a), the districts of 
101.26  residence and attendance may agree that either district may 
101.27  provide transportation from a pupil's home or agreed upon 
101.28  location to school.  Transportation aid for Minnesota students 
101.29  eligible for aid shall be paid only for transportation within 
101.30  the resident district. 
101.31     Sec. 3.  Minnesota Statutes 1996, section 120.0621, 
101.32  subdivision 6, is amended to read: 
101.33     Subd. 6.  [EFFECTIVE IF RECIPROCAL.] This section is 
101.34  effective with respect to South Dakota upon enactment of 
101.35  provisions by South Dakota that the commissioner determines are 
101.36  essentially similar to the provisions for Minnesota pupils in 
102.1   this section.  After July 1, 1993, this section is effective 
102.2   with respect to any other bordering state upon enactment of 
102.3   provisions by the bordering state that the commissioner 
102.4   determines are essentially similar to the provisions for 
102.5   Minnesota pupils in this section. 
102.6      Sec. 4.  Minnesota Statutes 1996, section 120.0621, is 
102.7   amended by adding a subdivision to read: 
102.8      Subd. 7.  [APPEAL TO THE COMMISSIONER.] If a Minnesota 
102.9   school district cannot agree with an adjoining state on a 
102.10  tuition rate for a Minnesota student attending school in that 
102.11  state and that state has met the requirements in subdivision 6, 
102.12  then the student's parent or guardian may request that the 
102.13  commissioner agree on a tuition rate for the student.  The 
102.14  Minnesota school district must pay the amount of tuition the 
102.15  commissioner agrees upon. 
102.16     Sec. 5.  Minnesota Statutes 1996, section 121.15, is 
102.17  amended by adding a subdivision to read: 
102.18     Subd. 1a.  [INDOOR AIR QUALITY RESOURCES; COMMISSIONER'S 
102.19  ROLE.] As part of the consultation under subdivision 1, the 
102.20  commissioner shall provide each school district with information 
102.21  concerning indoor air quality. 
102.22     Sec. 6.  Minnesota Statutes 1996, section 121.15, is 
102.23  amended by adding a subdivision to read: 
102.24     Subd. 7a.  [INDOOR AIR QUALITY.] A school board seeking a 
102.25  review and comment under this section must submit information 
102.26  demonstrating to the commissioner's satisfaction that: 
102.27     (1) indoor air quality issues have been considered; and 
102.28     (2) the architects and engineers designing the facility 
102.29  will have professional liability insurance. 
102.30     Sec. 7.  [121.1501] [SCHOOL FACILITY COMMISSIONING.] 
102.31     Subdivision 1.  [APPLICATION.] This section applies to the 
102.32  installation or retrofitting of heating, ventilation, and air 
102.33  conditioning systems for which review and comment of the project 
102.34  under section 121.15 has been requested after July 1, 1997. 
102.35     Subd. 2.  [SYSTEM INSPECTOR.] For purposes of this section, 
102.36  system inspector means: 
103.1      (1) a Minnesota-licensed engineer; or 
103.2      (2) properly qualified testing and balancing agency or 
103.3   individual. 
103.4      Subd. 3.  [CERTIFICATION.] Prior to occupying or 
103.5   reoccupying a school facility affected by this section, a school 
103.6   board or its designee shall submit a document prepared by a 
103.7   system inspector to the building official or to the 
103.8   commissioner, verifying that the facility's heating, 
103.9   ventilation, and air conditioning system has been installed and 
103.10  operates according to design specifications. 
103.11     Subd. 4.  [OCCUPANCY.] If the document submitted by the 
103.12  school board to the building official or the commissioner does 
103.13  not demonstrate to that official's satisfaction that the 
103.14  heating, ventilation, and air conditioning system has been 
103.15  installed correctly or that the system is not operating at a 
103.16  level to meet design specifications, the official or 
103.17  commissioner may allow up to one year of occupancy while the 
103.18  heating, ventilation, and air conditioning system is improved to 
103.19  a level that is considered satisfactory by the system inspector. 
103.20     Sec. 8.  Minnesota Statutes 1996, section 121.155, is 
103.21  amended by adding a subdivision to read: 
103.22     Subd. 3.  [EXEMPTION.] Programs operated in facilities 
103.23  constructed under this section are exempt from the limitations 
103.24  under section 123.35, subdivision 19a. 
103.25     Sec. 9.  Minnesota Statutes 1996, section 124.2727, 
103.26  subdivision 6a, is amended to read: 
103.27     Subd. 6a.  [FISCAL YEAR 1998 DISTRICT COOPERATION REVENUE.] 
103.28  A district's cooperation revenue for fiscal year 1998 is equal 
103.29  to the greater of $67 times the actual pupil units or $25,000. 
103.30     Sec. 10.  Minnesota Statutes 1996, section 124.2727, 
103.31  subdivision 6c, is amended to read: 
103.32     Subd. 6c.  [FISCAL YEAR 1998 DISTRICT COOPERATION AID.] A 
103.33  district's cooperation aid for fiscal year 1998 is the 
103.34  difference between its district cooperation revenue and its 
103.35  district cooperation levy.  If a district does not levy the 
103.36  entire amount permitted, aid must be reduced in proportion to 
104.1   the actual amount levied. 
104.2      Sec. 11.  Minnesota Statutes 1996, section 124.2727, 
104.3   subdivision 6d, is amended to read: 
104.4      Subd. 6d.  [REVENUE USES.] (a) A district must place its 
104.5   district cooperation revenue in a reserved account and may only 
104.6   use the revenue to purchase goods and services from entities 
104.7   formed for cooperative purposes or to otherwise provide 
104.8   educational services in a cooperative manner. 
104.9      (b) A district that was a member of an intermediate school 
104.10  district organized pursuant to chapter 136D on July 1, 1994, 
104.11  must place its district cooperation revenue in a reserved 
104.12  account and must allocate a portion of the reserved revenue for 
104.13  instructional services from entities formed for cooperative 
104.14  services for special education programs and secondary vocational 
104.15  programs.  The allocated amount is equal to the levy made 
104.16  according to section 124.2727, subdivision 6, for taxes payable 
104.17  in 1994 divided by the actual pupil units in the intermediate 
104.18  school district for fiscal year 1995 times the number of actual 
104.19  pupil units in the school district in 1995.  The district must 
104.20  use 5/11 of the revenue for special education and 6/11 of the 
104.21  revenue for secondary vocational education.  The district must 
104.22  demonstrate that the revenue is being used to provide the full 
104.23  range of special education and secondary vocational programs and 
104.24  services available to each child served by the intermediate.  
104.25  The secondary vocational programs and service must meet the 
104.26  requirements established in an articulation agreement developed 
104.27  between the state board of education and the board of trustees 
104.28  of the Minnesota state colleges and universities. 
104.29     (c) A district that was not a member of an intermediate 
104.30  district organized under chapter 136D on July 1, 1994, must 
104.31  spend at least $9 per pupil unit of its district cooperation 
104.32  revenue on secondary vocational programs. 
104.33     Sec. 12.  Minnesota Statutes 1996, section 124.2445, is 
104.34  amended to read: 
104.35     124.2445 [PURCHASE OF CERTAIN EQUIPMENT.] 
104.36     The board of a school district may issue general obligation 
105.1   certificates of indebtedness or capital notes subject to the 
105.2   school district debt limits to purchase vehicles, computers, 
105.3   telephone systems, cable equipment, photocopy and office 
105.4   equipment, technological equipment for instruction, and other 
105.5   capital equipment having an expected useful life at least as 
105.6   long as the terms of the certificates or notes.  The 
105.7   certificates or notes must be payable in not more than five 
105.8   years and must be issued on the terms and in the manner 
105.9   determined by the board.  The certificates or notes may be 
105.10  issued by resolution and without the requirement for an 
105.11  election.  The certificates or notes are general obligation 
105.12  bonds for purposes of section 124.755.  A tax levy must be made 
105.13  for the payment of the principal and interest on the 
105.14  certificates or notes, in accordance with section 475.61, as in 
105.15  the case of bonds.  The sum of the tax levies under this section 
105.16  and section 124.2455 for each year must not exceed the amount of 
105.17  the district's total operating capital revenue for the year the 
105.18  initial debt service levies are certified.  The district's 
105.19  general education levy for each year must be reduced by the sum 
105.20  of (1) the amount of the tax levies for debt service certified 
105.21  for each year for payment of the principal and interest on the 
105.22  certificates or notes as required by section 475.61., and (2) 
105.23  any excess amount in the debt redemption fund used to retire 
105.24  certificates or notes issued after February 1, 1997.  A district 
105.25  using an excess amount in the debt redemption fund to retire the 
105.26  certificates or notes shall report the amount used for this 
105.27  purpose to the commissioner by July 15 of the following fiscal 
105.28  year.  A district having an outstanding capital loan under 
105.29  section 124.431 or an outstanding debt service loan under 
105.30  section 124.42 must not use an excess amount in the debt 
105.31  redemption fund to retire the certificates or notes. 
105.32     Sec. 13.  Minnesota Statutes 1996, section 124.2455, is 
105.33  amended to read: 
105.34     124.2455 [BONDS FOR CERTAIN CAPITAL FACILITIES.] 
105.35     (a) In addition to other bonding authority, with approval 
105.36  of the commissioner, a school district may issue general 
106.1   obligation bonds for certain capital projects under this 
106.2   section.  The bonds must be used only to make capital 
106.3   improvements including: 
106.4      (1) under section 124A.22, subdivision 11, total operating 
106.5   capital revenue uses specified in clauses (4), (6), (7), (8), 
106.6   (9), and (10); 
106.7      (2) the cost of energy modifications; 
106.8      (3) improving handicap accessibility to school buildings; 
106.9   and 
106.10     (4) bringing school buildings into compliance with life and 
106.11  safety codes and fire codes.  
106.12     (b) Before a district issues bonds under this subdivision, 
106.13  it must publish notice of the intended projects, the amount of 
106.14  the bond issue, and the total amount of district indebtedness.  
106.15     (c) A bond issue tentatively authorized by the board under 
106.16  this subdivision becomes finally authorized unless a petition 
106.17  signed by more than 15 percent of the registered voters of the 
106.18  school district is filed with the school board within 30 days of 
106.19  the board's adoption of a resolution stating the board's 
106.20  intention to issue bonds.  The percentage is to be determined 
106.21  with reference to the number of registered voters in the school 
106.22  district on the last day before the petition is filed with the 
106.23  school board.  The petition must call for a referendum on the 
106.24  question of whether to issue the bonds for the projects under 
106.25  this section.  The approval of 50 percent plus one of those 
106.26  voting on the question is required to pass a referendum 
106.27  authorized by this section. 
106.28     (d) The bonds must be paid off within ten years of 
106.29  issuance.  The bonds must be issued in compliance with chapter 
106.30  475, except as otherwise provided in this section.  A tax levy 
106.31  must be made for the payment of principal and interest on the 
106.32  bonds in accordance with section 475.61.  The sum of the tax 
106.33  levies under this section and section 124.2455 for each year 
106.34  must not exceed the amount of the district's total operating 
106.35  capital revenue for the year the initial debt service levies are 
106.36  certified.  The district's general education levy for each year 
107.1   must be reduced by the sum of (1) the amount of the tax levies 
107.2   for debt service certified for each year for payment of the 
107.3   principal and interest on the bonds., and (2) any excess amount 
107.4   in the debt redemption fund used to retire bonds issued after 
107.5   February 1, 1997.  A district using an excess amount in the debt 
107.6   redemption fund to retire the bonds shall report the amount used 
107.7   for this purpose to the commissioner by July 15 of the following 
107.8   fiscal year.  A district having an outstanding capital loan 
107.9   under section 124.431 or an outstanding debt service loan under 
107.10  section 124.42 must not use an excess amount in the debt 
107.11  redemption fund to retire the bonds. 
107.12     (e) Notwithstanding paragraph (d), bonds issued by a 
107.13  district within the first five years following voter approval of 
107.14  a combination according to section 122.243, subdivision 2, must 
107.15  be paid off within 20 years of issuance.  All the other 
107.16  provisions and limitation of paragraph (d) apply. 
107.17     Sec. 14.  Minnesota Statutes 1996, section 124.42, 
107.18  subdivision 4, is amended to read: 
107.19     Subd. 4.  Each district receiving a debt service loan shall 
107.20  levy for debt service in that year and each year thereafter, 
107.21  until all its debts to the fund are paid, (a) the amount of its 
107.22  maximum effort debt service levy, or (b) the amount of its 
107.23  required debt service levy less the amount of any debt service 
107.24  loan in that year, whichever is greater.  Whenever the maximum 
107.25  effort debt service levy is greater the district shall remit to 
107.26  the commissioner, within ten days after its receipt of the last 
107.27  regular tax distribution in the year in which it is collected, 
107.28  that portion of the maximum effort debt service tax collections, 
107.29  including penalties and interest, which exceeds the required 
107.30  debt service levy.  The district shall remit payments to the 
107.31  commissioner according to section 124.45.  On or before 
107.32  September 1 30 in each year the commissioner shall notify the 
107.33  county auditor of each county containing taxable property 
107.34  situated within the school district of the amount of the maximum 
107.35  effort debt service levy of the district for that year, and said 
107.36  county auditor or auditors shall extend upon the tax rolls an ad 
108.1   valorem tax upon all taxable property within the district in the 
108.2   aggregate amount so certified.  
108.3      Sec. 15.  Minnesota Statutes 1996, section 124.431, 
108.4   subdivision 2, is amended to read: 
108.5      Subd. 2.  [DISTRICT REQUEST FOR REVIEW AND COMMENT.] A 
108.6   school district or a joint powers district that intends to apply 
108.7   for a capital loan must submit a proposal to the commissioner 
108.8   for review and comment according to section 121.15 on or before 
108.9   July 1 of an odd-numbered year.  The commissioner must prepare a 
108.10  review and comment on the proposed facility, regardless of the 
108.11  amount of the capital expenditure required to construct the 
108.12  facility.  In addition to the information provided under section 
108.13  121.15, subdivision 7, the commissioner shall require that 
108.14  predesign packages comparable to those required under section 
108.15  16B.335 be prepared by the applicant school district.  The 
108.16  predesign packages must be sufficient to define the scope, cost, 
108.17  and schedule of the project and must demonstrate that the 
108.18  project has been analyzed according to appropriate space needs 
108.19  standards and also consider the following criteria in 
108.20  determining whether to make a positive review and comment.  
108.21     (a) To grant a positive review and comment the commissioner 
108.22  must determine that all of the following conditions are met: 
108.23     (1) the facilities are needed for pupils for whom no 
108.24  adequate facilities exist or will exist; 
108.25     (2) the district will serve, on average, at least 80 pupils 
108.26  per grade or is eligible for elementary or secondary sparsity 
108.27  revenue; 
108.28     (3) no form of cooperation with another district would 
108.29  provide the necessary facilities; 
108.30     (4) the facilities are comparable in size and quality to 
108.31  facilities recently constructed in other districts that have 
108.32  similar enrollments; 
108.33     (5) the facilities are comparable in size and quality to 
108.34  facilities recently constructed in other districts that are 
108.35  financed without a capital loan; 
108.36     (6) the district is projected to maintain or increase its 
109.1   average daily membership over the next five years or is eligible 
109.2   for elementary or secondary sparsity revenue; 
109.3      (7) the current facility poses a threat to the life, 
109.4   health, and safety of pupils, and cannot reasonably be brought 
109.5   into compliance with fire, health, or life safety codes; 
109.6      (8) the district has made a good faith effort, as evidenced 
109.7   by its maintenance expenditures, to adequately maintain the 
109.8   existing facility during the previous ten years and to comply 
109.9   with fire, health, and life safety codes and state and federal 
109.10  requirements for handicapped accessibility; 
109.11     (9) the district has made a good faith effort to encourage 
109.12  integration of social service programs within the new facility; 
109.13  and 
109.14     (10) evaluations by school boards of adjacent districts 
109.15  have been received. 
109.16     (b) The commissioner may grant a negative review and 
109.17  comment if: 
109.18     (1) the state demographer has examined the population of 
109.19  the communities to be served by the facility and determined that 
109.20  the communities have not grown during the previous five years; 
109.21     (2) the state demographer determines that the economic and 
109.22  population bases of the communities to be served by the facility 
109.23  are not likely to grow or to remain at a level sufficient, 
109.24  during the next ten years, to ensure use of the entire facility; 
109.25     (3) the need for facilities could be met within the 
109.26  district or adjacent districts at a comparable cost by leasing, 
109.27  repairing, remodeling, or sharing existing facilities or by 
109.28  using temporary facilities; 
109.29     (4) the district plans do not include cooperation and 
109.30  collaboration with health and human services agencies and other 
109.31  political subdivisions; or 
109.32     (5) if the application is for new construction, an existing 
109.33  facility that would meet the district's needs could be purchased 
109.34  at a comparable cost from any other source within the area. 
109.35     Sec. 16.  Minnesota Statutes 1996, section 124.431, 
109.36  subdivision 11, is amended to read: 
110.1      Subd. 11.  [CONTRACT.] (a) Each capital loan must be 
110.2   evidenced by a contract between the school district and the 
110.3   state acting through the commissioner.  The contract must 
110.4   obligate the state to reimburse the district, from the maximum 
110.5   effort school loan fund, for eligible capital expenses for 
110.6   construction of the facility for which the loan is granted, an 
110.7   amount computed as provided in subdivision 8.  The commissioner 
110.8   must receive from the school district a certified resolution of 
110.9   the school board estimating the costs of construction and 
110.10  reciting that contracts for construction of the facilities for 
110.11  which the loan is granted have been awarded and that bonds of 
110.12  the district have been issued and sold in the amount necessary 
110.13  to pay all estimated costs of construction in excess of the 
110.14  amount of the loan.  The contract must obligate the district to 
110.15  repay the loan out of the excesses of its maximum effort debt 
110.16  service levy over its required debt service levy, including 
110.17  interest at a rate equal to the weighted average annual rate 
110.18  payable on Minnesota state school loan bonds issued for the 
110.19  project and disbursed to the districts on a reimbursement basis, 
110.20  but in no event less than 3-1/2 percent per year on the 
110.21  principal amount from time to time unpaid. 
110.22     (b) The district shall each year, as long as it is indebted 
110.23  to the state, levy for debt service (a) (i) the amount of its 
110.24  maximum effort debt service levy or (b) (ii) the amount of its 
110.25  required debt service levy, whichever is greater, except as the 
110.26  required debt service levy may be reduced by a loan under 
110.27  section 124.42.  On November 20 of each year each district 
110.28  having an outstanding capital loan shall compute the excess 
110.29  amount in the debt redemption fund.  The commissioner shall 
110.30  prescribe the form and calculation to be used in computing the 
110.31  excess amount.  A completed copy of this form shall be sent to 
110.32  the commissioner before December 1 of each year.  The 
110.33  commissioner may recompute the excess amount and shall promptly 
110.34  notify the district of the recomputed amount.  On December 15 of 
110.35  each year, the district shall remit to the commissioner an 
110.36  amount equal to the excess amount in the debt redemption fund.  
111.1   When the maximum effort debt service levy is greater, the 
111.2   district shall remit to the commissioner within ten days after 
111.3   its receipt of the last regular tax distribution in each year, 
111.4   that part of the debt service tax collections, including 
111.5   penalties and interest that exceeded the required debt service 
111.6   levy.  The district shall remit payments to the commissioner 
111.7   according to section 124.45. 
111.8      (c) The commissioner shall supervise the collection of 
111.9   outstanding accounts due the fund and may, by notice to the 
111.10  proper county auditor, require the maximum levy to be made as 
111.11  required in this subdivision.  Interest on capital loans must be 
111.12  paid on December 15 of the year after the year the loan is 
111.13  granted and annually in later years.  On or before September 1 
111.14  30 in each year the commissioner shall notify the county auditor 
111.15  of each county containing taxable property situated within the 
111.16  school district of the amount of the maximum effort debt service 
111.17  levy of the district for that year.  The county auditor or 
111.18  auditors shall extend upon the tax rolls an ad valorem tax upon 
111.19  all taxable property within the district in the aggregate amount 
111.20  so certified. 
111.21     Sec. 17.  Minnesota Statutes 1996, section 124.45, is 
111.22  amended to read: 
111.23     124.45 [PAYMENT AND APPLICATIONS OF PAYMENT.] 
111.24     Subdivision 1.  [PAYMENT.] (a) On November 20 of each year, 
111.25  each district having an outstanding capital loan or debt service 
111.26  loan shall compute the excess amount in the debt redemption 
111.27  fund.  The commissioner shall prescribe the form and calculation 
111.28  to be used in computing the excess amount.  A completed copy of 
111.29  this form shall be sent to the commissioner before December 1 of 
111.30  each year.  The commissioner may recompute the excess amount and 
111.31  shall promptly notify the district of the recomputed amount. 
111.32     (b) On December 15 of each year, the district shall remit 
111.33  to the commissioner an amount equal to the greater of: 
111.34     (i) the excess amount in the debt redemption fund; or 
111.35     (ii) the amount by which the maximum effort debt service 
111.36  levy exceeds the required debt service levy for that calendar 
112.1   year. 
112.2   Any late payments shall be assessed an interest charge using the 
112.3   interest rates specified for the debt service notes and capital 
112.4   loan contracts. 
112.5      (c) If a payment required under the maximum effort school 
112.6   aid law is not made within 30 days, the commissioner may reduce 
112.7   any subsequent payments due the district under chapters 124 and 
112.8   124A by the amount due, after providing written notice to the 
112.9   district. 
112.10     Subd. 2.  [APPLICATION OF PAYMENTS.] The commissioner shall 
112.11  apply payments received from collections of maximum effort debt 
112.12  service levies in excess of required debt service levies of a 
112.13  district on its debt service notes and capital loan 
112.14  contracts under the maximum effort school aid law and aids 
112.15  withheld according to subdivision 1, paragraph (b), as follows:  
112.16  First, to payment of interest accrued on its notes, if any; 
112.17  second, to interest on its contracts, if any; third, toward 
112.18  principal of its notes, if any; and last, toward principal of 
112.19  its contracts, if any.  While more than one note or more than 
112.20  one contract is held, priority of payment of interest shall be 
112.21  given to the one of earliest date, and after interest accrued on 
112.22  all notes is paid, similar priority shall be given in the 
112.23  application of any remaining amount to the payment of 
112.24  principal.  In any year when the receipts from a district are 
112.25  not sufficient to pay the interest accrued on any of its notes 
112.26  or contracts, the deficiency shall be added to the principal, 
112.27  and the commissioner shall notify the district and each county 
112.28  auditor concerned of the new amount of principal of the note or 
112.29  contract.  
112.30     Sec. 18.  [124.825] [HISTORIC BUILDING REVENUE.] 
112.31     Subdivision 1.  [ELIGIBILITY.] A district that maintains a 
112.32  school building listed on the National Register of Historic 
112.33  Places is eligible for historic building revenue. 
112.34     Subd. 2.  [REVENUE.] A district's historic building revenue 
112.35  is equal to $100 times the number of actual pupil units served 
112.36  in the school building. 
113.1      Subd. 3.  [LEVY.] To obtain historic building revenue, a 
113.2   district may levy an amount, not to exceed the district's 
113.3   revenue, equal to the district's revenue authority for that year 
113.4   times the lesser of one or the ratio of the adjusted net tax 
113.5   capacity divided by its actual pupil units for that school year 
113.6   to the equalizing factor. 
113.7      Subd. 4.  [AID.] A district's historic building aid is 
113.8   equal to the difference between the district's revenue minus the 
113.9   levy.  If a district does not levy the entire amount permitted, 
113.10  the district's aid must be reduced in proportion to the amount 
113.11  levied. 
113.12     Sec. 19.  Minnesota Statutes 1996, section 124.83, 
113.13  subdivision 1, is amended to read: 
113.14     Subdivision 1.  [HEALTH AND SAFETY PROGRAM.] To receive 
113.15  health and safety revenue for any fiscal year a district must 
113.16  submit to the commissioner of children, families, and learning 
113.17  an application for aid and levy by the date determined by the 
113.18  commissioner.  The application may be for hazardous substance 
113.19  removal, fire and life safety code repairs, labor and industry 
113.20  regulated facility and equipment violations, and health, safety, 
113.21  and environmental management, including indoor air quality 
113.22  management.  The application must include a health and safety 
113.23  program adopted by the school district board.  The program must 
113.24  include the estimated cost, per building, of the program by 
113.25  fiscal year. 
113.26     Sec. 20.  Minnesota Statutes 1996, section 124.83, 
113.27  subdivision 2, is amended to read: 
113.28     Subd. 2.  [CONTENTS OF PROGRAM.] A district must adopt a 
113.29  health and safety program.  The program must include plans, 
113.30  where applicable, for hazardous substance removal, fire and life 
113.31  safety code repairs, regulated facility and equipment 
113.32  violations, and health, safety, and environmental management, 
113.33  including indoor air quality management.  
113.34     (a) A hazardous substance plan must contain provisions for 
113.35  the removal or encapsulation of asbestos from school buildings 
113.36  or property, asbestos-related repairs, cleanup and disposal of 
114.1   polychlorinated biphenyls found in school buildings or property, 
114.2   and cleanup, removal, disposal, and repairs related to storing 
114.3   heating fuel or transportation fuels such as alcohol, gasoline, 
114.4   fuel, oil, and special fuel, as defined in section 296.01.  If a 
114.5   district has already developed a plan for the removal or 
114.6   encapsulation of asbestos as required by the federal Asbestos 
114.7   Hazard Emergency Response Act of 1986, the district may use a 
114.8   summary of that plan, which includes a description and schedule 
114.9   of response actions, for purposes of this section.  The plan 
114.10  must also contain provisions to make modifications to existing 
114.11  facilities and equipment necessary to limit personal exposure to 
114.12  hazardous substances, as regulated by the federal Occupational 
114.13  Safety and Health Administration under Code of Federal 
114.14  Regulations, title 29, part 1910, subpart Z; or is determined by 
114.15  the commissioner to present a significant risk to district staff 
114.16  or student health and safety as a result of foreseeable use, 
114.17  handling, accidental spill, exposure, or contamination. 
114.18     (b) A fire and life safety plan must contain a description 
114.19  of the current fire and life safety code violations, a plan for 
114.20  the removal or repair of the fire and life safety hazard, and a 
114.21  description of safety preparation and awareness procedures to be 
114.22  followed until the hazard is fully corrected. 
114.23     (c) A facilities and equipment violation plan must contain 
114.24  provisions to correct health and safety hazards as provided in 
114.25  department of labor and industry standards pursuant to section 
114.26  182.655.  
114.27     (d) A health, safety, and environmental management plan 
114.28  must contain a description of training, record keeping, hazard 
114.29  assessment, and program management as defined in section 124.829.
114.30     (e) A plan to test for and mitigate radon produced hazards. 
114.31     (f) A plan to monitor and improve indoor air quality. 
114.32     Sec. 21.  Minnesota Statutes 1996, section 124.91, 
114.33  subdivision 1, is amended to read: 
114.34     Subdivision 1.  [TO LEASE BUILDING OR LAND.] (a) When a 
114.35  district finds it economically advantageous to rent or lease a 
114.36  building or land for any instructional purposes or for school 
115.1   storage or furniture repair, and it determines that 
115.2   the operating capital expenditure facilities revenues revenue 
115.3   authorized under sections 124.243 and section 124A.22, 
115.4   subdivision 10, are insufficient for this purpose, it may apply 
115.5   to the commissioner for permission to make an additional capital 
115.6   expenditure levy for this purpose.  An application for 
115.7   permission to levy under this subdivision must contain financial 
115.8   justification for the proposed levy, the terms and conditions of 
115.9   the proposed lease, and a description of the space to be leased 
115.10  and its proposed use.  
115.11     (b) The criteria for approval of applications to levy under 
115.12  this subdivision must include:  the reasonableness of the price, 
115.13  the appropriateness of the space to the proposed activity, the 
115.14  feasibility of transporting pupils to the leased building or 
115.15  land, conformity of the lease to the laws and rules of the state 
115.16  of Minnesota, and the appropriateness of the proposed lease to 
115.17  the space needs and the financial condition of the district.  
115.18  The commissioner must not authorize a levy under this 
115.19  subdivision in an amount greater than the cost to the district 
115.20  of renting or leasing a building or land for approved purposes.  
115.21  The proceeds of this levy must not be used for custodial or 
115.22  other maintenance services.  A district may not levy under this 
115.23  subdivision for the purpose of leasing or renting a 
115.24  district-owned building to itself. 
115.25     (c) For agreements finalized after July 1, 1997, a district 
115.26  may not levy under this subdivision for the purpose of:  (i) 
115.27  leasing a building or land with an option to purchase under 
115.28  section 465.71; or (ii) leasing a building or land used 
115.29  primarily for purposes other than special or alternative 
115.30  education instruction from a cooperative unit of government, as 
115.31  defined in section 123.35, subdivision 19b, paragraph (d), that 
115.32  the cooperative unit is leasing with an option to purchase under 
115.33  section 465.71, if the commissioner determines that the payment 
115.34  required for the purchase at the end of the term of the lease is 
115.35  less than the projected market value of the property. 
115.36     Sec. 22.  Minnesota Statutes 1996, section 124.95, 
116.1   subdivision 2, is amended to read: 
116.2      Subd. 2.  [ELIGIBILITY.] (a) The following portions of a 
116.3   district's debt service levy qualify for debt service 
116.4   equalization: 
116.5      (1) debt service for repayment of principal and interest on 
116.6   bonds issued before July 2, 1992; 
116.7      (2) debt service for bonds refinanced after July 1, 1992, 
116.8   if the bond schedule has been approved by the commissioner and, 
116.9   if necessary, adjusted to reflect a 20-year maturity schedule; 
116.10  and 
116.11     (3) debt service for bonds issued after July 1, 1992, for 
116.12  construction projects that have received a positive review and 
116.13  comment according to section 121.15, if the commissioner has 
116.14  determined that the district has met the criteria under section 
116.15  124.431, subdivision 2, and if the bond schedule has been 
116.16  approved by the commissioner and, if necessary, adjusted to 
116.17  reflect a 20-year maturity schedule.  
116.18     (b) The criterion in section 124.431, subdivision 2, 
116.19  paragraph (a), clause (2), shall be considered to have been met 
116.20  if the district in the fiscal year in which the bonds are 
116.21  authorized at an election conducted under chapter 475: 
116.22     (i) serves an average of at least 66 pupils per grade in 
116.23  the grades to be served by the facility; or 
116.24     (ii) is eligible for elementary or secondary sparsity 
116.25  revenue. 
116.26     (c) The criterion described in section 124.431, subdivision 
116.27  2, paragraph (a), clause (9), does not apply to bonds authorized 
116.28  by elections held before July 1, 1992. 
116.29     (d) The criterion in section 124.431, subdivision 2, 
116.30  paragraph (a), clause (2), shall also be considered to have been 
116.31  met if the construction project under review serves students in 
116.32  elementary school grades.  Only the debt service levy for that 
116.33  portion of the facility serving students in elementary school 
116.34  grades, as determined by the commissioner, shall be eligible for 
116.35  debt service equalization under this paragraph. 
116.36     (e) For the purpose of this subdivision the department 
117.1   shall determine the eligibility for sparsity at the location of 
117.2   the new facility, or the site of the new facility closest to the 
117.3   nearest operating school if there is more than one new facility. 
117.4      (f) For the purpose of this subdivision, the department 
117.5   shall evaluate each project, and if the district does not 
117.6   qualify for sparsity aid, and if the new facility will serve 
117.7   fewer than 66 pupils per grade on average, then the commissioner 
117.8   may qualify the project for debt service equalization aid if 
117.9   unique circumstances are found to exist by the commissioner. 
117.10     Sec. 23.  Minnesota Statutes 1996, section 124.961, is 
117.11  amended to read: 
117.12     124.961 [DEBT SERVICE APPROPRIATION.] 
117.13     (a) $30,054,000 $35,679,000 in fiscal year 
117.14  1996 1998, $28,162,000 $37,986,000 in fiscal year 1997 1999, 
117.15  and $33,948,000 $38,211,000 in fiscal year 1998 2000 and each 
117.16  year thereafter is appropriated from the general fund to the 
117.17  commissioner of children, families, and learning for payment of 
117.18  debt service equalization aid under section 124.95.  The 1998 
117.19  2000 appropriation includes $4,970,000 $3,821,000 for 1997 
117.20  1999 and $28,978,000 $34,390,000 for 1998 2000. 
117.21     (b) The appropriations in paragraph (a) must be reduced by 
117.22  the amount of any money specifically appropriated for the same 
117.23  purpose in any year from any state fund. 
117.24     Sec. 24.  Minnesota Statutes 1996, section 124A.22, 
117.25  subdivision 10, is amended to read: 
117.26     Subd. 10.  [TOTAL OPERATING CAPITAL REVENUE.] (a) For 
117.27  fiscal year 1997 and thereafter, total operating capital revenue 
117.28  for a district equals the amount determined under paragraph (b), 
117.29  (c), (d), (e), or (f), plus $68 times the actual pupil units for 
117.30  the school year.  The revenue must be placed in a reserved 
117.31  account in the general fund and may only be used according to 
117.32  subdivision 11. 
117.33     (b) For fiscal years 1996 and later, capital revenue for a 
117.34  district equals $100 times the district's maintenance cost index 
117.35  times its actual pupil units for the school year. 
117.36     (c) For 1996 and later fiscal years, the previous formula 
118.1   revenue for a district equals $128 times its actual pupil units 
118.2   for fiscal year 1995. 
118.3      (d) Notwithstanding paragraph (b), for fiscal year 1996, 
118.4   the revenue for each district equals 25 percent of the amount 
118.5   determined in paragraph (b) plus 75 percent of the previous 
118.6   formula revenue. 
118.7      (e) Notwithstanding paragraph (b), for fiscal year 1997, 
118.8   the revenue for each district equals 50 percent of the amount 
118.9   determined in paragraph (b) plus 50 percent of the previous 
118.10  formula revenue. 
118.11     (f) Notwithstanding paragraph (b), for fiscal year 1998, 
118.12  the revenue for each district equals 75 percent of the amount 
118.13  determined in paragraph (b) plus 25 percent of the previous 
118.14  formula revenue. 
118.15     (g) The revenue for a district that operates a program 
118.16  under section 121.585, is increased by an amount equal 
118.17  to $15 $30 times the number of actual pupil units at the site 
118.18  where the program is implemented.  This revenue shall be used 
118.19  for air conditioning and other capital needs related to the 
118.20  program. 
118.21     Sec. 25.  Minnesota Statutes 1996, section 124A.22, 
118.22  subdivision 11, is amended to read: 
118.23     Subd. 11.  [USES OF TOTAL OPERATING CAPITAL REVENUE.] Total 
118.24  operating capital revenue may be used only for the following 
118.25  purposes: 
118.26     (1) to acquire land for school purposes; 
118.27     (2) to acquire or construct buildings for school purposes, 
118.28  up to $400,000; 
118.29     (3) to rent or lease buildings, including the costs of 
118.30  building repair or improvement that are part of a lease 
118.31  agreement; 
118.32     (4) to improve and repair school sites and buildings, and 
118.33  equip or reequip school buildings with permanent attached 
118.34  fixtures; 
118.35     (5) for a surplus school building that is used 
118.36  substantially for a public nonschool purpose; 
119.1      (6) to eliminate barriers or increase access to school 
119.2   buildings by individuals with a disability; 
119.3      (7) to bring school buildings into compliance with the 
119.4   uniform fire code adopted according to chapter 299F; 
119.5      (8) to remove asbestos from school buildings, encapsulate 
119.6   asbestos, or make asbestos-related repairs; 
119.7      (9) to clean up and dispose of polychlorinated biphenyls 
119.8   found in school buildings; 
119.9      (10) to clean up, remove, dispose of, and make repairs 
119.10  related to storing heating fuel or transportation fuels such as 
119.11  alcohol, gasoline, fuel oil, and special fuel, as defined in 
119.12  section 296.01; 
119.13     (11) for energy audits for school buildings and to modify 
119.14  buildings if the audit indicates the cost of the modification 
119.15  can be recovered within ten years; 
119.16     (12) to improve buildings that are leased according to 
119.17  section 123.36, subdivision 10; 
119.18     (13) to pay special assessments levied against school 
119.19  property but not to pay assessments for service charges; 
119.20     (14) to pay principal and interest on state loans for 
119.21  energy conservation according to section 216C.37 or loans made 
119.22  under the northeast Minnesota economic protection trust fund act 
119.23  according to sections 298.292 to 298.298; 
119.24     (15) to purchase or lease interactive telecommunications 
119.25  equipment; 
119.26     (16) by school board resolution, to transfer money into the 
119.27  debt redemption fund to:  (i) pay the amounts needed to meet, 
119.28  when due, principal and interest payments on certain obligations 
119.29  issued according to chapter 475; or (ii) pay principal and 
119.30  interest on debt service loans or capital loans according to 
119.31  section 124.44; 
119.32     (17) to pay capital expenditure equipment-related 
119.33  assessments of any entity formed under a cooperative agreement 
119.34  between two or more districts; 
119.35     (18) to purchase or lease computers and related materials, 
119.36  copying machines, telecommunications equipment, and other 
120.1   noninstructional equipment; 
120.2      (19) to purchase or lease assistive technology or equipment 
120.3   for instructional programs; 
120.4      (20) to purchase textbooks; 
120.5      (21) to purchase new and replacement library books; 
120.6      (22) to purchase vehicles; 
120.7      (23) to purchase or lease telecommunications equipment, 
120.8   computers, and related equipment for integrated information 
120.9   management systems for: 
120.10     (i) managing and reporting learner outcome information for 
120.11  all students under a results-oriented graduation rule; 
120.12     (ii) managing student assessment, services, and achievement 
120.13  information required for students with individual education 
120.14  plans; and 
120.15     (iii) other classroom information management needs; and 
120.16     (24) to pay personnel costs directly related to the 
120.17  acquisition, operation, and maintenance of telecommunications 
120.18  systems, computers, related equipment, and network and 
120.19  applications software. 
120.20     Sec. 26.  [INDOOR AIR QUALITY ADVISORY COMMITTEE.] 
120.21     Subdivision 1.  [ESTABLISHMENT.] An indoor air quality 
120.22  advisory committee shall be established by the commissioner of 
120.23  the department of children, families, and learning. 
120.24     Subd. 2.  [MEMBERSHIP.] The advisory committee shall 
120.25  consist of no more than 15 members appointed by the 
120.26  commissioner.  Up to ten members shall be appointed from the 
120.27  public, including teachers, parents, and other persons.  At 
120.28  least three of the public members shall possess expertise 
120.29  regarding indoor air quality.  One member shall be appointed 
120.30  from the medical profession.  One member shall be appointed from 
120.31  each of the following educational organizations:  (1) Minnesota 
120.32  school boards association; (2) Minnesota rural education 
120.33  association; (3) schools for equity in education; and (4) 
120.34  association of metropolitan school districts.  Each of these 
120.35  educational organizations shall propose one member for 
120.36  appointment.  The commissioner shall consider regional 
121.1   representation in appointing members. 
121.2      Subd. 3.  [EXPIRATION.] The indoor air quality advisory 
121.3   committee expires July 1, 1998. 
121.4      Sec. 27.  [DUTIES OF THE DEPARTMENT OF CHILDREN, FAMILIES, 
121.5   AND LEARNING.] 
121.6      Subdivision 1.  [DUTIES.] The department of children, 
121.7   families, and learning will, in collaboration with the 
121.8   departments of health and administration, school districts, and 
121.9   other public agencies, develop the following: 
121.10     (1) an indoor air quality maintenance manual; 
121.11     (2) a planning and construction manual to ensure indoor air 
121.12  quality; and 
121.13     (3) a public information plan for students, parents, staff, 
121.14  and other members of the public. 
121.15  The above products will contain the following elements: 
121.16     (1) process standards for school districts and the 
121.17  department of children, families, and learning to follow when 
121.18  addressing indoor air quality concerns; 
121.19     (2) informational materials for a model school district 
121.20  indoor air quality program; 
121.21     (3) training needs for school district employees; 
121.22     (4) procedures for school districts when disseminating 
121.23  indoor air quality information and test results to parents, 
121.24  teachers, and others; 
121.25     (5) indoor air quality considerations under the review and 
121.26  comment process for school buildings, specific evaluations of 
121.27  proposed construction standards and materials, to be included in 
121.28  the review and comment standards; 
121.29     (6) building systems maintenance and housekeeping practices 
121.30  required to ensure adequate indoor air quality; 
121.31     (7) architectural, engineering, maintenance engineering, 
121.32  and other design practices to positively affect indoor air 
121.33  quality; 
121.34     (8) regional and state resources available to assist 
121.35  districts with information and training needs of school staff, 
121.36  parents, and community; 
122.1      (9) regional and state resources available to assist 
122.2   districts with medical evaluation relative to indoor air quality 
122.3   complaints; and 
122.4      (10) recommended steps a district should take to attain a 
122.5   satisfactory level of indoor air quality. 
122.6      Subd. 2.  [MANUAL; REPORT.] The indoor air quality resource 
122.7   manual shall be made available for distribution and training 
122.8   February 1, 1998, and a report regarding the status of indoor 
122.9   air quality in Minnesota schools shall be made to the 1998 
122.10  legislature. 
122.11     Sec. 28.  [REVENUE USE APPROVAL.] 
122.12     The use of revenue for construction in independent school 
122.13  district No. 561, Goodridge, authorized in Laws 1995, First 
122.14  Special Session chapter 3, article 8, section 23, and in 
122.15  independent school district No. 600, Fisher, authorized in Laws 
122.16  1995, First Special Session chapter 3, article 8, section 22, 
122.17  subdivision 21, is approved.  The department shall not make any 
122.18  levy or aid adjustments related to these projects.  
122.19     Sec. 29.  [INTERDISTRICT COOPERATION FOR SCHOOL DISTRICT 
122.20  NO. 638, SANBORN.] 
122.21     Notwithstanding Minnesota Statutes, section 122.541, 
122.22  subdivision 1, or other law to the contrary, independent school 
122.23  district No. 638, Sanborn, may participate in an interdistrict 
122.24  cooperation agreement with independent school district No. 178, 
122.25  Storden-Jeffers, and independent school district No. 633, 
122.26  Lamberton, although independent school district No. 638, 
122.27  Sanborn, does not operate a school with at least three grades.  
122.28  Resident pupils of independent school district No. 638, Sanborn, 
122.29  may be educated in either of the other two cooperating districts.
122.30     Sec. 30.  [CHISAGO LAKES AREA SCHOOLS, BONDED DEBT.] 
122.31     Independent school district No. 2144, Chisago Lakes Area, 
122.32  may modify its plan adopted according to Minnesota Statutes, 
122.33  section 122.242, subdivision 9, clause (1), so that independent 
122.34  school district No. 2144 assumes all of the remaining debt 
122.35  service as of the effective date of this section for bonds that 
122.36  were outstanding at the time of the combination of independent 
123.1   school districts No. 141, Chisago Lakes and No. 140, Taylors 
123.2   Falls, and the tax levy for that debt service is spread on all 
123.3   the property in independent school district No. 2144, Chisago 
123.4   Lakes Area. 
123.5      Sec. 31.  [TEACHER RETIREMENT DATE.] 
123.6      Notwithstanding Minnesota Statutes, section 354.44, 
123.7   subdivision 4, teachers retiring in June 1997 from the high 
123.8   school in independent school district No. 701, Hibbing, shall 
123.9   have May 30, 1997, as their date of retirement for the purpose 
123.10  of receiving retirement benefits. 
123.11     Sec. 32.  [DEBT SERVICE EQUALIZATION AID.] 
123.12     Notwithstanding Minnesota Statutes, section 124.95, 
123.13  subdivision 2, for the purpose of determining eligibility for 
123.14  debt service equalization aid for independent school district 
123.15  No. 2835, Janesville-Waldorf-Pemberton, the department of 
123.16  children, families, and learning must include pupils presently 
123.17  attending nonpublic schools to determine the average number of 
123.18  pupils served per grade in the proposed facility. 
123.19     Sec. 33.  [INDEPENDENT SCHOOL DISTRICT NO. 270, HOPKINS; 
123.20  EXEMPTION.] 
123.21     Minnesota Statutes, section 123.35, subdivision 19a, does 
123.22  not apply to independent school district No. 270, Hopkins, for 
123.23  the Lindbergh Center, located at 2400 Lindbergh Drive, 
123.24  Minnetonka, Minnesota. 
123.25     Sec. 34.  [APPROPRIATIONS.] 
123.26     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
123.27  LEARNING.] The sums indicated in this section are appropriated 
123.28  from the general fund to the department of children, families, 
123.29  and learning for the fiscal years designated.  
123.30     Subd. 2.  [SPECIAL CONSOLIDATION AID.] For special 
123.31  consolidation aid under Minnesota Statutes, section 124.2728: 
123.32       $3,000     .....     1998
123.33     The 1998 appropriation includes $3,000 for 1997 and $0 for 
123.34  1998. 
123.35     Subd. 3.  [CONSOLIDATION TRANSITION AID.] For districts 
123.36  consolidating under Minnesota Statutes, section 124.2726: 
124.1        $1,254,000     .....     1998
124.2        $1,151,000     .....     1999
124.3      The 1998 appropriation includes $67,000 for 1997 and 
124.4   $1,187,000 for 1998. 
124.5      The 1999 appropriation includes $131,000 for 1998 and 
124.6   $1,020,000 for 1999. 
124.7      Any balance in the first year does not cancel but is 
124.8   available in the second year. 
124.9      Subd. 4.  [COOPERATION AND COMBINATION AID.] For aid for 
124.10  districts that cooperate and combine according to Minnesota 
124.11  Statutes, section 124.2725: 
124.12       $562,000     .....     1998 
124.13       $ 42,000     .....     1999 
124.14     The 1998 appropriation includes $178,000 for 1997 and 
124.15  $384,000 for 1998.  
124.16     The 1999 appropriation includes $42,000 for 1998 and $0 for 
124.17  1999.  
124.18     Any balance in the first year does not cancel but is 
124.19  available in the second year. 
124.20     Subd. 5.  [DISTRICT COOPERATION REVENUE.] For district 
124.21  cooperation revenue aid: 
124.22       $9,766,000     .....     1998
124.23       $  954,000     .....     1999
124.24     The 1998 appropriation includes $1,172,000 for 1997 and 
124.25  $8,594,000 for 1998. 
124.26     The 1999 appropriation includes $954,000 for 1998 and $0 
124.27  for 1999. 
124.28     Subd. 6.  [INTERAGENCY COLLABORATION GRANTS.] For 
124.29  interagency collaboration grants to plan and implement 
124.30  collaborative programs between school districts, cities, 
124.31  counties, and other local units of government in the governance, 
124.32  administration, and operations of those local public entities: 
124.33       $500,000       .....     1998 
124.34     Grants of up to $100,000 shall be awarded to plan and 
124.35  implement systems of joint governance, management, and delivery 
124.36  of programs and services which result in more effective and 
125.1   efficient services for children, families, and adults.  Programs 
125.2   and services include, but are not limited to: 
125.3      (1) long-range planning among local governing boards; 
125.4      (2) transportation and vehicle maintenance; 
125.5      (3) buildings and grounds management; 
125.6      (4) food and nutrition services; 
125.7      (5) business affairs; 
125.8      (6) technology support; and 
125.9      (7) library services. 
125.10     The department of children, families, and learning shall 
125.11  give preference to local units of government that have 
125.12  previously demonstrated success in family collaboratives or 
125.13  other collaborative efforts. 
125.14     Any balance available in the first year does not cancel but 
125.15  is available in the second year. 
125.16     Subd. 7.  [HIBBING GRANT.] For a grant to independent 
125.17  school district No. 701, Hibbing, for expenses not covered by 
125.18  insurance for a fire loss at Hibbing high school: 
125.19       $250,000     .....     1998 
125.20     Independent school district No. 701, Hibbing, shall 
125.21  reimburse the state general fund for any expenses covered by 
125.22  this appropriation that are recovered as a result of a lawsuit 
125.23  related to the fire loss at Hibbing high school. 
125.24     Subd. 8.  [HISTORIC BUILDING AID.] For historic building 
125.25  aid under section 124.825: 
125.26       $173,000     .....     1998 
125.27       $173,000     .....     1999 
125.28     Subd. 9.  [PLANNING GRANT; ISLE.] For a facilities planning 
125.29  grant to independent school district No. 473, Isle:  
125.30       $50,000     .....     1998  
125.31     This appropriation is available until June 30, 1999. 
125.32     Subd. 10.  [ENVIRONMENTAL SPECIALIST.] For an environmental 
125.33  specialist at the department of children, families, and learning:
125.34       $50,000     .....     1998 
125.35       $50,000     .....     1999 
125.36     Sec. 35.  [EFFECTIVE DATES.] 
126.1      (a) Sections 1; 3; 12; 13; 28; 29; 31; and 34, subdivision 
126.2   7, are effective the day following final enactment. 
126.3      (b) Section 18 is effective for revenue for fiscal year 
126.4   1999 and thereafter. 
126.5      (c) Section 22 is effective for bonds authorized under 
126.6   Minnesota Statutes, chapter 475, in fiscal year 1997 and 
126.7   thereafter.  
126.8      (d) Section 30 is effective the day following compliance by 
126.9   the school board of independent school district No. 2144, 
126.10  Chisago Lakes Area, with Minnesota Statutes, section 645.021. 
126.11     (e) Section 32 is effective for bonds authorized by voters 
126.12  under Minnesota Statutes, chapter 475, during calendar year 1997 
126.13  or 1998 only. 
126.14                             ARTICLE 5
126.15                        EDUCATION EXCELLENCE
126.16     Section 1.  Minnesota Statutes 1996, section 120.064, 
126.17  subdivision 3, is amended to read: 
126.18     Subd. 3.  [SPONSOR.] A school board, community college, 
126.19  state university, technical college, the state board of 
126.20  education, or the University of Minnesota may sponsor one or 
126.21  more charter schools. 
126.22     No more than a total of 40 charter schools may be 
126.23  authorized not more than three of which may be sponsored by 
126.24  public post-secondary institutions.  The state board of 
126.25  education shall advise potential sponsors when the maximum 
126.26  number of charter schools has been authorized. 
126.27     Sec. 2.  Minnesota Statutes 1996, section 120.064, 
126.28  subdivision 4, is amended to read: 
126.29     Subd. 4.  [FORMATION OF SCHOOL.] (a) A sponsor may 
126.30  authorize any of the following types of applicants to operate a 
126.31  charter school: 
126.32     (1) one or more licensed teachers under section 125.05, 
126.33  subdivision 1, to operate a charter school subject to approval 
126.34  by the state board of education.; or 
126.35     (2) an individual, parent or group of parents, or a 
126.36  nonprofit organization governed by chapter 317A or operating as 
127.1   a tax exempt organization for educational purposes only under 
127.2   chapter 501(c)(3) of the Internal Revenue Code. 
127.3      (b) When the sponsor is not the state board of education, 
127.4   the authorization is subject to the approval of the state board. 
127.5      (c) When an applicant under paragraph (a), clause (2), 
127.6   seeks sponsorship directly from an entity other than a school 
127.7   board under subdivision 3, the applicant must submit for review 
127.8   and comment a copy of its proposal for sponsorship to the school 
127.9   board of the district of the proposed location of the charter 
127.10  school.  The application may proceed simultaneously with the 
127.11  board's review and comment. 
127.12     (d) If an applicant has sought sponsorship from a school 
127.13  board or a post-secondary institution and the school board or 
127.14  post-secondary institution elects not to sponsor a the charter 
127.15  school, the applicant may appeal the school board's decision of 
127.16  the school board or post-secondary institution to the state 
127.17  board of education if two members of the school board voted to 
127.18  sponsor the school.  If the state board authorizes the school, 
127.19  the state board shall sponsor the school according to this 
127.20  section.  The school shall be organized and operated as a 
127.21  cooperative under chapter 308A or nonprofit corporation under 
127.22  chapter 317A.  
127.23     (b) (e) Before the operators may form and operate as a 
127.24  school, the a sponsor, other than the state board, must file an 
127.25  affidavit with the state board of education stating its intent 
127.26  to authorize a charter school.  The affidavit must state the 
127.27  terms and conditions under which the sponsor would authorize a 
127.28  charter school.  The state board must approve or disapprove the 
127.29  sponsor's proposed authorization within 60 days of receipt of 
127.30  the affidavit.  Failure to obtain state board approval precludes 
127.31  a sponsor from authorizing the charter school that was the 
127.32  subject of the affidavit.  
127.33     (c) (f) The operators authorized to organize and operate a 
127.34  school shall hold an election for members of the school's board 
127.35  of directors in a timely manner after the school is operating.  
127.36  Any staff members who are employed at the school, including 
128.1   teachers providing instruction under a contract with a 
128.2   cooperative, and all parents of children enrolled in the school 
128.3   may participate in the election.  Licensed teachers employed at 
128.4   the school, including teachers providing instruction under a 
128.5   contract with a cooperative, must be a majority of the members 
128.6   of the board of directors., except when an alternative 
128.7   governance arrangement is approved by the state board.  When an 
128.8   individual, parent or group of parents, or nonprofit 
128.9   organization that contracts for its instructional programs 
128.10  operate a school, teachers are not required to be a majority of 
128.11  the members of the board of directors.  A provisional board may 
128.12  operate before the election of the school's board of directors.  
128.13  Board of director meetings must comply with section 471.705. 
128.14     (d) (g) The granting or renewal of a charter by a 
128.15  sponsoring entity shall not be conditioned upon the bargaining 
128.16  unit status of the employees of the school. 
128.17     Sec. 3.  Minnesota Statutes 1996, section 120.064, 
128.18  subdivision 4a, is amended to read: 
128.19     Subd. 4a.  [CONVERSION OF EXISTING SCHOOLS.] A school board 
128.20  may convert one or more of its existing schools to charter 
128.21  schools under this section if 90 percent a majority of the 
128.22  full-time teachers at the school sign a petition seeking 
128.23  conversion.  The conversion must occur at the beginning of an 
128.24  academic year. 
128.25     Sec. 4.  Minnesota Statutes 1996, section 120.064, 
128.26  subdivision 5, is amended to read: 
128.27     Subd. 5.  [CONTRACT.] The sponsor's authorization for a 
128.28  charter school shall be in the form of a written contract signed 
128.29  by the sponsor and the board of directors of the charter 
128.30  school.  The contract is binding on both parties during its 
128.31  entire term except if the parties to the contract mutually agree 
128.32  to modify or terminate or the contract is terminated under 
128.33  subdivision 21.  The contract for a charter school shall be in 
128.34  writing and contain at least the following: 
128.35     (1) a description of a program that carries out one or more 
128.36  of the purposes in subdivision 1; 
129.1      (2) specific outcomes pupils are to achieve under 
129.2   subdivision 10; 
129.3      (3) admission policies and procedures; 
129.4      (4) management and administration of the school; 
129.5      (5) requirements and procedures for program and financial 
129.6   audits; 
129.7      (6) how the school will comply with subdivisions 8, 13, 15, 
129.8   and 21; 
129.9      (7) assumption of liability by the charter school; 
129.10     (8) types and amounts of insurance coverage to be obtained 
129.11  by the charter school; and 
129.12     (9) the term of the contract, which may be up to shall be 
129.13  three school years. 
129.14     Sec. 5.  Minnesota Statutes 1996, section 120.064, 
129.15  subdivision 8, is amended to read: 
129.16     Subd. 8.  [REQUIREMENTS.] (a) A charter school shall meet 
129.17  all applicable state and local health and safety requirements. 
129.18     (b) The A school must sponsored by a school district may be 
129.19  located in the sponsoring any district, unless another the 
129.20  school board agrees to locate a charter school sponsored by 
129.21  another district in its boundaries of the district of the 
129.22  proposed location disapproves and has not adopted a resolution 
129.23  under section 120.062, subdivision 3.  If such a school board 
129.24  denies a request to locate within its boundaries a charter 
129.25  school sponsored by another district school board, the 
129.26  sponsoring district school board may appeal to the state board 
129.27  of education.  If the state board authorizes the school, the 
129.28  state board shall sponsor the school.  A school sponsored by a 
129.29  post-secondary institution may be located at any place the 
129.30  institution considers convenient.  Before agreeing to sponsor a 
129.31  charter school, a post-secondary institution that sponsors a 
129.32  charter school shall notify the school district of its intent to 
129.33  locate a charter school in that district. 
129.34     (c) A charter school must be nonsectarian in its programs, 
129.35  admission policies, employment practices, and all other 
129.36  operations.  A sponsor may not authorize a charter school or 
130.1   program that is affiliated with a nonpublic sectarian school or 
130.2   a religious institution. 
130.3      (d) Charter schools shall not be used as a method of 
130.4   providing education or generating revenue for students who are 
130.5   being home schooled. 
130.6      (e) The primary focus of a charter school must be to 
130.7   provide a comprehensive program of instruction for at least one 
130.8   grade or age group from five through 18 years of age.  
130.9   Instruction may be provided to people younger than five years 
130.10  and older than 18 years of age. 
130.11     (f) A charter school may not charge tuition. 
130.12     (g) A charter school is subject to and shall comply with 
130.13  chapter 363 and section 126.21. 
130.14     (h) A charter school is subject to and shall comply with 
130.15  the pupil fair dismissal act, sections 127.26 to 127.39, and the 
130.16  Minnesota public school fee law, sections 120.71 to 120.76. 
130.17     (i) A charter school is subject to the same financial 
130.18  audits, audit procedures, and audit requirements as a school 
130.19  district.  The audit must be consistent with the requirements of 
130.20  sections 121.904 to 121.917, except to the extent deviations are 
130.21  necessary because of the program at the school.  The department 
130.22  of children, families, and learning, state auditor, or 
130.23  legislative auditor may conduct financial, program, or 
130.24  compliance audits. 
130.25     (j) A charter school is a school district for the purposes 
130.26  of tort liability under chapter 466. 
130.27     (k) A charter school is subject to the graduation rule 
130.28  requirements under section 121.11, subdivision 7c, and system 
130.29  accountability and public reporting requirements under section 
130.30  121.1115. 
130.31     Sec. 6.  Minnesota Statutes 1996, section 120.064, 
130.32  subdivision 11, is amended to read: 
130.33     Subd. 11.  [EMPLOYMENT AND OTHER OPERATING MATTERS.] (a) A 
130.34  charter school shall employ or contract with necessary teachers, 
130.35  as defined by section 125.03, subdivision 1, who hold valid 
130.36  licenses to perform the particular service for which they are 
131.1   employed in the school.  The school may employ necessary 
131.2   employees who are not required to hold teaching licenses to 
131.3   perform duties other than teaching and may contract for other 
131.4   services.  The school may discharge teachers and nonlicensed 
131.5   employees. 
131.6      (b) A charter school may enter into a contract for teaching 
131.7   or administrative services related to instruction only with: 
131.8      (1) an individual teacher for the teaching services of that 
131.9   teacher; 
131.10     (2) an individual administrator for the administrative 
131.11  services of that administrator; or 
131.12     (3) a nonprofit entity not controlled by or under common 
131.13  control with a related organization as defined in section 
131.14  317A.011, subdivision 18, that is other than a nonprofit 
131.15  corporation. 
131.16     (c) The board of directors also shall decide matters 
131.17  related to the operation of the school, including budgeting, 
131.18  curriculum and operating procedures. 
131.19     Sec. 7.  Minnesota Statutes 1996, section 120.064, is 
131.20  amended by adding a subdivision to read: 
131.21     Subd. 14a.  [REVIEW AND COMMENT.] The department shall 
131.22  review and comment on the evaluation, by the chartering school 
131.23  district, of the performance of a charter school before the 
131.24  charter school's contract is renewed.  The information from the 
131.25  review and comment shall be reported to the state board of 
131.26  education in a timely manner. 
131.27     Sec. 8.  Minnesota Statutes 1996, section 120.064, 
131.28  subdivision 20a, is amended to read: 
131.29     Subd. 20a.  [TEACHERS TEACHER AND OTHER EMPLOYEE 
131.30  RETIREMENT.] (a) Teachers in a charter school shall be public 
131.31  school teachers for the purposes of chapters 354 and 354a. 
131.32     (b) Except for teachers under paragraph (a), employees in a 
131.33  charter school shall be public employees for the purposes of 
131.34  chapter 353. 
131.35     Sec. 9.  Minnesota Statutes 1996, section 120.064, is 
131.36  amended by adding a subdivision to read: 
132.1      Subd. 21a.  [DISPOSITION OF ASSETS AND LIABILITIES UPON 
132.2   DISSOLUTION.] When a charter school, whether organized as a 
132.3   nonprofit under chapter 317A or a cooperative under chapter 
132.4   308A, is dissolved, the school shall comply with the dissolution 
132.5   procedures under chapter 501B and either chapter 317A or chapter 
132.6   308A. 
132.7      Sec. 10.  Minnesota Statutes 1996, section 121.11, 
132.8   subdivision 7c, is amended to read: 
132.9      Subd. 7c.  [RESULTS-ORIENTED GRADUATION RULE.] (a) The 
132.10  legislature is committed to establishing a rigorous, 
132.11  results-oriented graduation rule for Minnesota's public school 
132.12  students.  To that end, the state board shall use its rulemaking 
132.13  authority under subdivision 7b to adopt a statewide, 
132.14  results-oriented graduation rule to be implemented starting with 
132.15  students beginning ninth grade in the 1996-1997 school year.  
132.16  The board shall not prescribe in rule or otherwise the delivery 
132.17  system, form of instruction, or a single statewide form of 
132.18  assessment that local sites must use to meet the requirements 
132.19  contained in this rule. 
132.20     (b) To successfully accomplish paragraph (a), the state 
132.21  board shall set in rule high academic standards for all 
132.22  students.  The standards must contain the foundational skills in 
132.23  the three core curricular areas of reading, writing, and 
132.24  mathematics while meeting requirements for high school 
132.25  graduation.  The standards must also provide an opportunity for 
132.26  students to excel by meeting higher academic standards through a 
132.27  profile of learning that uses curricular requirements to allow 
132.28  students to expand their knowledge and skills beyond the 
132.29  foundational skills.  All state board actions regarding the rule 
132.30  must be premised on the following:  
132.31     (1) the rule is intended to raise academic expectations for 
132.32  students, teachers, and schools; 
132.33     (2) any state action regarding the rule must evidence 
132.34  consideration of school district autonomy; and 
132.35     (3) the department of children, families, and learning, 
132.36  with the assistance of school districts, must make available 
133.1   information about all state initiatives related to the rule to 
133.2   students and parents, teachers, and the general public in a 
133.3   timely format that is appropriate, comprehensive, and readily 
133.4   understandable. 
133.5      (c) For purposes of adopting the rule, the state board, in 
133.6   consultation with the department, recognized psychometric 
133.7   experts in assessment, and other interested and knowledgeable 
133.8   educators, using the most current version of professional 
133.9   standards for educational testing, shall evaluate the 
133.10  alternative approaches to assessment.  
133.11     (d) The content of the graduation rule must differentiate 
133.12  between minimum competencies reflected in the basic requirements 
133.13  assessment and rigorous profile of learning standards.  When 
133.14  fully implemented, the requirements for high school graduation 
133.15  in Minnesota must include both basic requirements and the 
133.16  required profile of learning.  The profile of learning must 
133.17  measure student performance using performance-based assessments 
133.18  compiled over time that integrate higher academic standards, 
133.19  higher order thinking skills, and application of knowledge from 
133.20  a variety of content areas.  The profile of learning shall 
133.21  include a broad range of academic experience and accomplishment 
133.22  necessary to achieve the goal of preparing students to function 
133.23  effectively as purposeful thinkers, effective communicators, 
133.24  self-directed learners, productive group participants, and 
133.25  responsible citizens. 
133.26     (e) The state board shall periodically review and report on 
133.27  the assessment process and student achievement with the 
133.28  expectation of raising the standards and expanding high school 
133.29  graduation requirements, and may use its rulemaking authority to 
133.30  amend an existing graduation rule by adding, modifying, or 
133.31  deleting a measure to accommodate a changed educational policy 
133.32  or circumstance.  The state board shall provide the chairs of 
133.33  the education committees in the house and senate with a copy of 
133.34  any proposed amendment to an existing graduation rule at least 
133.35  ten business days before the amended rule is formally adopted. 
133.36     (f) The state board shall report in writing to the 
134.1   legislature annually by January 15 on its progress in developing 
134.2   and implementing the graduation requirements according to the 
134.3   requirements of this subdivision and section 123.97 until such 
134.4   time as all the graduation requirements are implemented. 
134.5      Sec. 11.  Minnesota Statutes 1996, section 121.1115, is 
134.6   amended by adding a subdivision to read: 
134.7      Subd. 1a.  [EDUCATIONAL ACCOUNTABILITY; PURPOSE.] (a) An 
134.8   independent office of educational accountability is established 
134.9   to address the needs for educational accountability, credible 
134.10  information on the condition of prekindergarten to grade 12 
134.11  education in Minnesota, cost-effectiveness, and long-term 
134.12  continuity, and to separate accountability and public reporting 
134.13  from monitoring and administrative oversight.  The office shall 
134.14  consider and periodically report to the legislature, at least on 
134.15  a biennial basis, on the needs of students and the condition of 
134.16  education in Minnesota. 
134.17     (b) In realizing its purpose under paragraph (a), the 
134.18  office of educational accountability shall advise the 
134.19  legislature on the degree to which the statewide educational 
134.20  accountability and reporting system includes a comprehensive, 
134.21  performance-based assessment framework that makes schools 
134.22  accountable for students achieving the goals described in the 
134.23  state's high school graduation rule.  The office shall consider 
134.24  whether the statewide system of educational accountability 
134.25  provides useful comparative and contextual data on students, 
134.26  schools, districts, and the state, and whether it includes: 
134.27     (1) public reporting on the condition of the educational 
134.28  system using multiple indicators that are essential to 
134.29  describing and understanding the needs of children and youth and 
134.30  apply to all students; 
134.31     (2) a core set of educational indicators that are 
134.32  comparable and capable of being aggregated across school 
134.33  districts and across time on a statewide basis; 
134.34     (3) public reporting on the condition of the educational 
134.35  system that supports the direction of state educational policy; 
134.36     (4) a public reporting system that is flexible, permits the 
135.1   adding, modifying, and deleting of measures as policies and 
135.2   circumstances change; 
135.3      (5) a public reporting system that aligns conceptually and 
135.4   in practice with the information needs of local school 
135.5   districts, and contains measures that local communities and 
135.6   schools can influence; 
135.7      (6) reports of performance information that assure all 
135.8   students' privacy and confidentiality; 
135.9      (7) student performance indicators that contain clearly 
135.10  articulated standards of student performance and have broad 
135.11  community support; 
135.12     (8) reports of educational performance that reflect current 
135.13  results and trends over time; 
135.14     (9) a reporting system that reduces and consolidates the 
135.15  existing reporting burden on school districts by better using 
135.16  existing information and building on current data reporting 
135.17  systems at the state and district levels; and 
135.18     (10) a reporting system that is managed in a nonpartisan 
135.19  and highly competent manner to ensure the public's use and 
135.20  confidence and minimizes the reporting burden on school 
135.21  districts.  To the extent the statewide educational 
135.22  accountability and reporting system does not include a 
135.23  comprehensive, performance-based assessment framework that makes 
135.24  schools accountable for students achieving the goals described 
135.25  in the state's high school graduation rule, or does not provide 
135.26  useful comparative and contextual data on students, schools, 
135.27  districts, and the state, the office shall recommend to the 
135.28  legislature ways to improve the accountability and reporting 
135.29  system. 
135.30     (c) When the office reviews the statewide educational 
135.31  accountability and reporting system, it shall also: 
135.32     (1) consider the objectivity and neutrality of the state's 
135.33  educational accountability system; 
135.34     (2) develop strong relationships with other policy actors 
135.35  and with leaders outside government; 
135.36     (3) recommend a uniform, statewide policy applicable to all 
136.1   schools and school districts regarding the participation or 
136.2   exclusion of students with special needs or limited English 
136.3   proficiency on statewide assessments; and 
136.4      (4) consider the impact of a high stakes testing program on 
136.5   school curriculum and student learning. 
136.6      (d) A technical quality review advisory panel is 
136.7   established to assist the office of educational accountability 
136.8   in clearly articulating the criteria for judging the statewide 
136.9   education accountability and reporting system.  Among other 
136.10  things, the criteria shall measure the extent to which the 
136.11  system: 
136.12     (1) creates intended and unintended consequences; 
136.13     (2) is fairly administered; 
136.14     (3) evaluates the desired and appropriate complex 
136.15  intellectual processes; 
136.16     (4) is relevant and meaningful to teachers, students, and 
136.17  parents; 
136.18     (5) evaluates skills that are transferable; 
136.19     (6) is cost-efficient; and 
136.20     (7) is comprehensive in its coverage of content. 
136.21     Panel members shall include psychometricians and other 
136.22  experts in the field of student assessment, an elementary school 
136.23  teacher employed in a state public school, a secondary school 
136.24  teacher employed in a state public school, a curriculum and 
136.25  instruction director employed in a state public school, and a 
136.26  local school administrator.  Panel members are appointed by and 
136.27  serve at the pleasure of the speaker of the house, the house 
136.28  minority leader, the majority leader of the senate, and the 
136.29  senate minority leader.  Panel members shall receive 
136.30  compensation according to section 15.059, subdivision 3. 
136.31     (e) The office of educational accountability shall report 
136.32  at least biennially by November 1 preceding the first year of 
136.33  the state's biennial legislative session to the legislature on 
136.34  the status of the statewide system of educational accountability.
136.35     Sec. 12.  Minnesota Statutes 1996, section 121.1115, is 
136.36  amended by adding a subdivision to read: 
137.1      Subd. 1b.  [STATEWIDE TESTING POLICY.] (a) The commissioner 
137.2   shall include the following components in the statewide 
137.3   educational accountability and public reporting system: 
137.4      (1) a statewide testing system that is consistent with the 
137.5   provisions of section 121.11, subdivision 7c, as amended by Laws 
137.6   1997, chapter 1, section 1; and 
137.7      (2) in order to identify successful and at-risk schools, an 
137.8   evaluation of school site and school district performance levels 
137.9   during the 1997-1998 school year and thereafter using an 
137.10  established performance baseline developed from students' test 
137.11  scores that reflects students' unweighted, mean test scores in 
137.12  each tested subject, and identifies demographic factors that 
137.13  strongly correlate with student performance listed in 
137.14  subdivision 2. 
137.15     (b) The commissioner shall integrate into the statewide 
137.16  educational accountability and public reporting system a method 
137.17  for rewarding a school that achieves a specified gain over its 
137.18  threshold level for school improvement and for assisting a 
137.19  school that fails to achieve a specified gain or fails to reach 
137.20  its threshold level for school improvement.  The commissioner 
137.21  shall integrate the distinguished teachers program under section 
137.22  121.1116 into any school improvement plan. 
137.23     Sec. 13.  [121.1116] [DISTINGUISHED TEACHERS PROGRAM.] 
137.24     The commissioner shall develop a distinguished teachers 
137.25  program to assist schools in improving performance and 
137.26  increasing accountability consistent with the requirements of 
137.27  section 121.1115, subdivision 1b.  Outstanding and highly 
137.28  skilled licensed teachers who deserve recognition for their 
137.29  excellent teaching and who are willing to fulfill the purposes 
137.30  of the program shall be designated a "distinguished teacher." 
137.31     Sec. 14.  Minnesota Statutes 1996, section 121.611, is 
137.32  amended to read: 
137.33     121.611 [NONLICENSED COMMUNITY EXPERTS; VARIANCE.] 
137.34     Subdivision 1.  [AUTHORIZATION.] Notwithstanding any law or 
137.35  state board of education rule to the contrary, the board of 
137.36  teaching may allow school districts or charter schools to hire 
138.1   nonlicensed community experts to teach in the public schools or 
138.2   charter schools on a limited basis according to this section. 
138.3      Subd. 2.  [APPLICATIONS; CRITERIA.] The school district or 
138.4   charter school shall apply to the board of teaching for approval 
138.5   to hire nonlicensed teaching personnel from the community.  In 
138.6   approving or disapproving the district's application for each 
138.7   community expert, the board shall consider: 
138.8      (1) the qualifications of the community person whom the 
138.9   district or charter school proposes to employ; 
138.10     (2) the reasons for the district's need for a variance from 
138.11  the teacher licensure requirements; 
138.12     (3) the district's efforts to obtain licensed teachers, who 
138.13  are acceptable to the school board, for the particular course or 
138.14  subject area or the charter school's efforts to obtain licensed 
138.15  teachers for the particular course or subject area; 
138.16     (4) the amount of teaching time for which the community 
138.17  expert would be hired; 
138.18     (5) the extent to which the district or charter school is 
138.19  utilizing other nonlicensed community experts under this 
138.20  section; 
138.21     (6) the nature of the community expert's proposed teaching 
138.22  responsibility; and 
138.23     (7) the proposed level of compensation to the community 
138.24  expert. 
138.25     Subd. 3.  [APPROVAL OF PLAN.] The board of teaching shall 
138.26  approve or disapprove an application within 60 days of receiving 
138.27  it from a school district or charter school. 
138.28     Sec. 15.  Minnesota Statutes 1996, section 124.248, 
138.29  subdivision 1, is amended to read: 
138.30     Subdivision 1.  [GENERAL EDUCATION AND REFERENDUM REVENUE.] 
138.31  (a) General education revenue and referendum revenue shall be 
138.32  paid to a charter school as though it were a school district.  
138.33     (b) The general education revenue for each pupil unit is 
138.34  the state average general education revenue per pupil unit minus 
138.35  $170, calculated without compensatory revenue, transportation 
138.36  sparsity revenue, and the transportation portion of the 
139.1   transition revenue adjustment, plus compensatory, limited 
139.2   English proficiency and assurance of mastery revenue as though 
139.3   the school were a school district.  
139.4      (c) The referendum revenue for each pupil unit is the 
139.5   referendum equalization revenue per pupil unit in the resident 
139.6   district according to section 124A.03, subdivision 1f, if 
139.7   approved or renewed after July 1, 1997. 
139.8      Sec. 16.  Minnesota Statutes 1996, section 125.05, 
139.9   subdivision 1c, is amended to read: 
139.10     Subd. 1c.  [SUPERVISORY AND COACH QUALIFICATIONS; CODE OF 
139.11  ETHICS.] The state board of education shall issue licenses under 
139.12  its jurisdiction to persons the state board finds to be 
139.13  qualified and competent for their respective positions under the 
139.14  rules it adopts.  The state board of education must develop, by 
139.15  rule, a code of ethics for supervisory and coaching personnel 
139.16  covering standards of professional practices, including areas of 
139.17  ethical conduct and professional performance and methods of 
139.18  enforcement. The state board of education shall consult with the 
139.19  affected personnel when developing a code of ethics. 
139.20     Sec. 17.  Minnesota Statutes 1996, section 125.05, 
139.21  subdivision 2, is amended to read: 
139.22     Subd. 2.  [EXPIRATION AND RENEWAL.] (a) Each license issued 
139.23  the department of children, families, and learning issues 
139.24  through the its licensing section of the department of children, 
139.25  families, and learning must bear the date of issue.  Licenses 
139.26  must expire and be renewed in accordance with according to the 
139.27  respective rules adopted by the board of teaching or the state 
139.28  board of education adopts.  Requirements for renewal of renewing 
139.29  a license must include production of showing satisfactory 
139.30  evidence of successful teaching experience for at least one 
139.31  school year during the period covered by the license in grades 
139.32  or subjects for which the license is valid or completion of 
139.33  completing such additional preparation as the board of 
139.34  teaching shall prescribe prescribes.  The state board of 
139.35  education shall establish requirements for renewal of renewing 
139.36  the licenses of supervisory personnel must be established by the 
140.1   state board of education.  
140.2      (b) The board of teaching may offer alternative continuing 
140.3   relicensure options for teachers who are accepted into and 
140.4   complete the national board for professional teaching standards 
140.5   certification process, and offer additional continuing 
140.6   relicensure options for teachers who earn national board for 
140.7   professional teaching standards certification.  Continuing 
140.8   relicensure requirements for teachers who do not maintain 
140.9   national board for professional teaching standards certification 
140.10  are those the board prescribes.  
140.11     (c) The board of teaching may consider making technology 
140.12  instruction or technology proficiency a requirement for 
140.13  continuing education and relicensure under its teacher licensing 
140.14  rules.  
140.15     Sec. 18.  Minnesota Statutes 1996, section 128C.08, 
140.16  subdivision 5, is amended to read: 
140.17     Subd. 5.  [HEAD VARSITY COACH; CODE OF ETHICS.] (a) A head 
140.18  varsity coach may be excluded under this section only by the 
140.19  school board employing the coach. 
140.20     (b) The board of directors of the Minnesota state high 
140.21  school league or a school board may exclude from any high school 
140.22  league activity any coach the school board employs who violates 
140.23  the code of ethics for coaching personnel under section 125.05, 
140.24  subdivision 1c. 
140.25     Sec. 19.  Laws 1995, First Special Session chapter 3, 
140.26  article 11, section 21, subdivision 3, is amended to read: 
140.27     Subd. 3.  [CHARTER SCHOOL EVALUATION.] For the state board 
140.28  of education to evaluate the performance of charter schools 
140.29  authorized according to Minnesota Statutes, section 120.064: 
140.30       $75,000     .....     1996 
140.31     The state board must review and comment on the evaluation, 
140.32  by the chartering school district, of the performance of a 
140.33  charter school before that charter school's contract is 
140.34  renewed.  The state board may provide assistance to a school 
140.35  district in evaluating a charter school that has been chartered 
140.36  by that school board.  The board must report annually to the 
141.1   education committees of the legislature on the results of its 
141.2   evaluations.  This amount is available until June 30, 1997. 
141.3      Sec. 20.  Laws 1996, chapter 412, article 4, section 34, 
141.4   subdivision 4, is amended to read: 
141.5      Subd. 4.  [COMMUNITY-BASED CHARTER SCHOOL GRANT.] For a 
141.6   grant for community-based charter schools or other schools 
141.7   located in independent school district No. 625, St. Paul: 
141.8        $300,000     .....     1997 
141.9      The commissioner may establish criteria and any reporting 
141.10  or match requirements for the grant under this section. 
141.11     Sec. 21.  [RECOMMENDATIONS FOR SUPERVISORY AND COACHING 
141.12  PERSONNEL CODE OF ETHICS.] 
141.13     Subdivision 1.  [ADVISORY GROUP.] The state board of 
141.14  education shall convene by July 1, 1997, an advisory group to 
141.15  recommend to the state board the standards of professional 
141.16  practices for supervisory and coaching personnel, including 
141.17  provisions affecting ethical conduct, professional performance, 
141.18  and enforcement methods, consistent with the requirements in 
141.19  Minnesota Statutes, section 125.05, subdivision 1c, directing 
141.20  the state board to adopt in rule a code of ethics for 
141.21  supervisory and coaching personnel.  The state board shall 
141.22  appoint the following seven members to the advisory group: two 
141.23  elementary school principals; two secondary school principals; 
141.24  one school superintendent; one other representative of 
141.25  supervisory personnel; and one athletic coach.  Once convened, 
141.26  the task force members shall select a task force member to 
141.27  preside over subsequent task force meetings.  The department of 
141.28  children, families, and learning may provide staff support for 
141.29  advisory group activities at the request of the advisory group. 
141.30     Subd. 2.  [ADVISORY GROUP RECOMMENDATIONS.] The advisory 
141.31  group shall present timely recommendations concerning 
141.32  appropriate standards of professional practices for supervisory 
141.33  and coaching personnel to the state board.  The state board 
141.34  shall consider the advisory group recommendations when 
141.35  formulating its rule establishing a code of ethics for 
141.36  supervisory and coaching personnel. 
142.1      Subd. 3.  [EXPIRATION.] The advisory group shall expire 
142.2   after presenting its recommendations to the state board, or on 
142.3   February 1, 1998, whichever occurs first. 
142.4      Sec. 22.  [EXEMPTION.] 
142.5      Any contract entered into during the 1996-1997 school year 
142.6   authorizing a charter school under Minnesota Statutes 1996, 
142.7   section 120.064, subdivision 5, is exempt from the amended 
142.8   requirements of Minnesota Statutes 1996, section 120.064, 
142.9   subdivision 11, only as long as the sponsor of the charter 
142.10  school finds and can adequately demonstrate to the state board 
142.11  of education that the charter school continues without 
142.12  interruption to satisfactorily meet all its performance 
142.13  outcomes.  If either the charter school sponsor or the state 
142.14  board of education determines that a charter school under this 
142.15  section is not satisfactorily meeting one or more of its 
142.16  performance outcomes, the amended requirements of Minnesota 
142.17  Statutes 1996, section 120.064, subdivision 11, apply to that 
142.18  charter school when the determination is made. 
142.19     Sec. 23.  [GRANT PROGRAM TO PROMOTE PROFESSIONAL TEACHING 
142.20  STANDARDS.] 
142.21     Subdivision 1.  [ESTABLISHMENT.] A grant program to promote 
142.22  professional teaching standards through the national board for 
142.23  professional teaching standards for fiscal year 1998 is 
142.24  established to provide eligible teachers with the opportunity to 
142.25  receive national board for professional teaching standards 
142.26  certification and to reward teachers who have already received 
142.27  this certification. 
142.28     Subd. 2.  [ELIGIBILITY.] An applicant for a grant must be a 
142.29  licensed kindergarten through grade 12 school teacher employed 
142.30  in a state school.  To be eligible for a grant, the teacher must 
142.31  have been employed as a teacher for a minimum of five school 
142.32  years and demonstrate either that the national board for 
142.33  professional teaching standards has accepted the teacher as a 
142.34  candidate for board certification or that the teacher already 
142.35  has received board certification. 
142.36     Subd. 3.  [APPLICATION PROCESS.] To obtain a grant to 
143.1   participate in the national board for professional teaching 
143.2   standards certification process or to receive a reward for 
143.3   already completing the board certification process, a teacher 
143.4   must submit an application to the commissioner of children, 
143.5   families, and learning in the form and manner the commissioner 
143.6   establishes.  The applicant must demonstrate either that the 
143.7   national board for professional teaching standards has accepted 
143.8   the teacher as a candidate for board certification or that the 
143.9   teacher already has received board certification.  The 
143.10  commissioner shall consult with the state board of teaching when 
143.11  reviewing the applications. 
143.12     Subd. 4.  [GRANT AWARDS; PROCEEDS.] (a) The commissioner 
143.13  may award grants of $1,500 each to eligible teachers accepted as 
143.14  candidates for national board for professional teaching 
143.15  standards certification.  Grant recipients shall use the grant 
143.16  to participate in the certification process.  Within 24 months 
143.17  of receiving certification, a grant recipient must 
143.18  satisfactorily complete one year of teaching service in a state 
143.19  public school or repay the state the amount of the grant, except 
143.20  if the commissioner determines that death or disability prevents 
143.21  the grant recipient from providing the one year of teaching 
143.22  service. 
143.23     (b) The commissioner may award grants to eligible teachers 
143.24  who have already completed the national board for professional 
143.25  teaching standards certification process to reward their 
143.26  effort.  The amount of each grant shall not exceed $1,500 and 
143.27  the commissioner shall establish criteria to determine the 
143.28  actual amount of each grant.  Grant recipients shall use the 
143.29  grant proceeds for educational purposes, including purchasing 
143.30  instructional materials, equipment, or supplies and realizing 
143.31  professional development opportunities.  
143.32     Sec. 24.  [LABORATORY SCHOOL GRANTS.] 
143.33     Subdivision 1.  [ESTABLISHMENT.] The commissioner of 
143.34  children, families, and learning shall make grants to 
143.35  post-secondary institutions to establish at least three 
143.36  laboratory schools that cooperate with interested school 
144.1   districts to develop innovative teaching techniques that enhance 
144.2   students' learning experiences.  A laboratory school must be 
144.3   nonsectarian in its programs, admissions policies, employment 
144.4   practices, and all other operations.  Two laboratory school 
144.5   sites shall focus on improving education for work, family, and 
144.6   community roles and responsibilities in high schools throughout 
144.7   Minnesota.  One laboratory school for improving lifework 
144.8   learning must be located in the seven-county metropolitan area 
144.9   and one laboratory school for improving lifework learning must 
144.10  be located in greater Minnesota. 
144.11     Subd. 2.  [GRANT APPLICATION.] A public or private 
144.12  post-secondary institution located in the state may submit an 
144.13  application for a grant.  Each grant application must include: 
144.14     (1) the location of the laboratory school determined in 
144.15  collaboration with a school district, or proposed as a charter 
144.16  school; 
144.17     (2) a five-year fiscal plan demonstrating that the school 
144.18  shall operate with no additional state revenue except revenue 
144.19  received under Minnesota Statutes, chapters 124 and 124A, and 
144.20  the grant money awarded under this section; and 
144.21     (3) for an applicant seeking a grant to improve lifework 
144.22  learning, a description of how the applicant will use 
144.23  information technologies and participate in partnerships with 
144.24  kindergarten through grade 12 schools and post-secondary 
144.25  institutions, business and industry, labor, agriculture, 
144.26  government, and community-based organizations. 
144.27     The commissioner of children, families, and learning, in 
144.28  consultation with interested post-secondary institutions, shall 
144.29  establish guidelines and an application process for the grants. 
144.30     Subd. 3.  [GRANT MONEY.] The grant money may be used for: 
144.31     (1) transporting students; 
144.32     (2) technology; 
144.33     (3) equipment; 
144.34     (4) teacher mentorships; 
144.35     (5) building remodeling, renovation, or repair; 
144.36     (6) disseminating innovative and effective teaching 
145.1   techniques; 
145.2      (7) education research to develop teaching methods, 
145.3   assessments, and curriculum design; 
145.4      (8) developing creative opportunities for parental 
145.5   involvement; 
145.6      (9) furthering school integration efforts; and 
145.7      (10) other inventive teaching and learning practices 
145.8   designed to implement the high school graduation standards under 
145.9   Minnesota Statutes, section 121.11, subdivision 7c.  
145.10     Sec. 25.  [YEAR-ROUND SCHOOL/EXTENDED WEEK OR DAY PILOT 
145.11  PROGRAM.] 
145.12     (a) Consistent with the terms for receiving program grants 
145.13  under Laws 1995, First Special Session chapter 3, article 7, 
145.14  section 4, as amended by Laws 1996, chapter 412, article 7, 
145.15  section 13, independent school district No. 624, White Bear 
145.16  Lake, is eligible to receive additional grant funding for its 
145.17  year-round school/extended week or day pilot program.  
145.18     (b) The commissioner of children, families, and learning, 
145.19  with the assistance of independent school district No. 624, 
145.20  shall evaluate the efficacy of the district's program and submit 
145.21  a report to the education committees of the legislature by 
145.22  February 1, 2000.  The commissioner shall include in the report 
145.23  sufficient information to permit other school districts to 
145.24  readily replicate the program if the commissioner determines 
145.25  that the program is successful. 
145.26     Sec. 26.  [GIFTED AND TALENTED GRANTS.] 
145.27     Subdivision 1.  [ESTABLISHMENT.] Gifted and talented grants 
145.28  are established to provide access to an appropriate program for 
145.29  students identified as gifted or talented.  A school district or 
145.30  any group of school districts must use the grants to establish a 
145.31  process for identifying gifted and talented students, offer 
145.32  access to challenging learning experiences for students in 
145.33  kindergarten through grade 12, and provide for staff development 
145.34  in meeting the learning needs of gifted and talented students. 
145.35     Subd. 2.  [ELIGIBILITY; CRITERIA.] An applicant for a 
145.36  gifted and talented grant must be a school district or any group 
146.1   of school districts.  The commissioner of children, families, 
146.2   and learning, a representative of the alliance of the Minnesota 
146.3   educators of the gifted and talented, a representative of the 
146.4   Minnesota council of the gifted and talented, and a 
146.5   representative of the challenge task force shall establish the 
146.6   criteria for awarding grants for appropriate programs. 
146.7      Subd. 3.  [APPLICATION.] A school district or any group of 
146.8   school districts must submit an application to the commissioner 
146.9   of children, families, and learning in the form and manner the 
146.10  commissioner establishes. 
146.11     Subd. 4.  [GRANT AWARDS.] A school district or any group of 
146.12  districts may receive a grant in the amount of $25 per pupil per 
146.13  year.  The grant recipient must match one local dollar for every 
146.14  state dollar received.  The local match may include in kind 
146.15  contributions. 
146.16     Sec. 27.  [COMMISSIONER OF CHILDREN, FAMILIES, AND 
146.17  LEARNING.] 
146.18     The commissioner of children, families, and learning shall 
146.19  designate a staff member as a resource person for gifted and 
146.20  talented programs to provide assistance to parents and school 
146.21  districts.  The commissioner shall pay all costs for that staff 
146.22  member out of existing department appropriations. 
146.23     Sec. 28.  [APPROPRIATIONS.] 
146.24     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
146.25  LEARNING.] The sums indicated in this section are appropriated 
146.26  from the general fund to the department of children, families, 
146.27  and learning for the fiscal years designated. 
146.28     Subd. 2.  [STATEWIDE TESTING.] For implementing statewide 
146.29  testing and establishing a performance baseline under section 14:
146.30       $2,500,000     .....     1998 
146.31       $2,500,000     .....     1999 
146.32     The commissioner shall contract with an institution of 
146.33  higher education to establish an independent office of 
146.34  educational accountability. 
146.35     Any balance in the first year does not cancel but is 
146.36  available in the second year. 
147.1      Subd. 3.  [LABORATORY SCHOOL GRANTS.] For laboratory school 
147.2   grants under section 24: 
147.3        $ 5,000,000    .....     1998
147.4      Any balance in the first year does not cancel but is 
147.5   available in the second year. 
147.6      Subd. 4.  [ADVANCED PLACEMENT AND INTERNATIONAL 
147.7   BACCALAUREATE PROGRAMS.] For the state advanced placement and 
147.8   international baccalaureate programs, including public school 
147.9   teacher summer training programs, follow-up teacher support 
147.10  workshops, examination fee subsidies, and student scholarships: 
147.11       $1,875,000     .....     1998 
147.12       $1,875,000     .....     1999 
147.13     $400,000 each year is for teachers to attend subject matter 
147.14  summer training programs and follow-up support workshops 
147.15  approved by the advanced placement or international 
147.16  baccalaureate programs.  The commissioner shall determine the 
147.17  payment process and the amount of the subsidy. 
147.18     Notwithstanding Minnesota Statutes, section 126.239, 
147.19  subdivision 3, $1,175,000 each year is for the commissioner to 
147.20  pay all examination fees for all students sitting for an 
147.21  advanced placement examination, international baccalaureate 
147.22  examination, or both.  If this amount is not adequate, the 
147.23  commissioner may pay less than the full examination fee. 
147.24     $300,000 each year is for payments resulting from students' 
147.25  qualifying scores.  A school that offers an advanced placement 
147.26  or international baccalaureate course shall receive an award for 
147.27  each student in that teacher's course who receives a qualifying 
147.28  score on the advanced placement or international baccalaureate 
147.29  examination that covers the subject matter of the course.  The 
147.30  instructors who prepare students for advanced placement and 
147.31  international baccalaureate exams in those schools receiving 
147.32  awards under this subdivision shall use the awards to enhance 
147.33  the advanced placement or international baccalaureate program.  
147.34  In this section, "qualifying score" means 3 or better on an 
147.35  advanced placement examination and 4 or better on an 
147.36  international baccalaureate examination.  Teacher stipend 
148.1   amounts shall be $50 for each student who scores a 5 on an 
148.2   advanced placement examination or 7 on an international 
148.3   baccalaureate examination, $40 for each student who scores a 4 
148.4   on an advanced placement examination or a 5 or 6 on an 
148.5   international baccalaureate examination, and $25 for each 
148.6   student who scores a 3 on an advanced placement examination or a 
148.7   4 on an international baccalaureate examination.  The 
148.8   commissioner shall determine the payment process and the amount 
148.9   of the award to the school. 
148.10     A performance award to a school under this subdivision 
148.11  shall not be a mandatory subject of bargaining under Minnesota 
148.12  Statutes, chapter 179A, or any other law and shall not be a term 
148.13  or condition of employment.  The amount of any award shall be 
148.14  final and shall not be subject to review by an arbitrator 
148.15  through any grievance or other process or by a court through any 
148.16  appeal process.  
148.17     Any balance in the first year does not cancel but is 
148.18  available in the second year. 
148.19     Subd. 5.  [TEACHER EDUCATION IMPROVEMENT.] For board of 
148.20  teaching responsibilities relating to teacher licensure 
148.21  restructuring and implementation of the teaching residency 
148.22  program: 
148.23       $450,000       .....     1998
148.24       $450,000       .....     1999 
148.25     $200,000 of this biennial appropriation is available to the 
148.26  board of teaching for further developing the results-oriented 
148.27  teacher licensure system, for pilot site grants and other 
148.28  methods of implementing the teacher residency program, and for 
148.29  programs relating to teacher mentoring.  
148.30     $300,000 of this biennial appropriation is for grants to 
148.31  promote professional teaching standards under section 23.  Of 
148.32  this amount, $100,000 may be used by the commissioner to pay for 
148.33  four half-time state coordinators that recruit and assist 
148.34  teacher candidates.  The state coordinators shall be licensed 
148.35  kindergarten through grade 12 public school teachers. 
148.36     Any balance in the first year does not cancel but is 
149.1   available in the second year. 
149.2      Subd. 6.  [ST. PAUL COMMUNITY-BASED SCHOOL PROGRAM.] For a 
149.3   grant to independent school district, No. 625, St. Paul, for 
149.4   establishing and operating a community-based school program: 
149.5        $3,000,000     .....     1998 
149.6        $3,000,000     .....     1999
149.7      The purpose of the program is to improve student 
149.8   achievement and to provide an integrated set of academic, 
149.9   health, social, and recreational support services year-round, 
149.10  and for an extended day to children, families, and the community.
149.11     Independent school district No. 625 shall collaborate with 
149.12  the city of St. Paul; Ramsey county; the commissioner of 
149.13  children, families, and learning; and a nonprofit operating 
149.14  foundation located in St. Paul to establish and operate the 
149.15  program.  Before implementing the program, the district must 
149.16  submit the following to the commissioner: 
149.17     (1) the name and address of the school or schools to be 
149.18  community-based schools; 
149.19     (2) the grade levels and number of students to be served; 
149.20     (3) general demographic characteristics of the area and 
149.21  students to be served; 
149.22     (4) the education curriculum and other programs to be 
149.23  offered; 
149.24     (5) the goals of the school and the means to measure 
149.25  student achievement; 
149.26     (6) a budget and operating plan, at least including the 
149.27  governing structure and commitments by the city, county, and 
149.28  foundation to the program; and 
149.29     (7) documentation of community support. 
149.30     This money may also be used to remodel, renovate, and 
149.31  repair buildings used for a community-based school program.  
149.32  This appropriation is available until June 30, 1999. 
149.33     $4,000,000 of the appropriation in each fiscal year shall 
149.34  not be included in the base for fiscal year 2000. 
149.35     The commissioner may establish any reporting or match 
149.36  requirements for the grant under this section. 
150.1      Subd. 7.  [SCIENCE-MATHEMATICS GRANT.] For continuation of 
150.2   systemic change in science and mathematics education programs: 
150.3        $1,332,000     .....     1998 
150.4        $1,332,000     .....     1999
150.5      $40,000 of the appropriation in 1998 and $40,000 in 1999 is 
150.6   for the south central Minnesota talented youth program. 
150.7      Any balance in the first year does not cancel but is 
150.8   available in the second year. 
150.9      Subd. 8.  [MINNESOTA HOMEWORK HELPLINE.] For the southeast 
150.10  service cooperative to operate the Minnesota homework helpline: 
150.11       $175,000       .....     1998 
150.12       $175,000       .....     1999 
150.13     Subd. 9.  [WHITE BEAR LAKE EXTENDED YEAR, WEEK OR DAY PILOT 
150.14  PROGRAM.] For independent school district No. 624, White Bear 
150.15  Lake, for an additional year-round school/extended week or day 
150.16  pilot program grant under section 25: 
150.17       $100,000       .....     1998 
150.18     The appropriation is available until June 30, 1999. 
150.19     Subd. 10.  [GIFTED AND TALENTED GRANTS.] For grants for 
150.20  gifted and talented programs according to section 26: 
150.21       $2,500,000     .....     1998
150.22       $2,500,000     .....     1999
150.23     Any balance in the first year does not cancel but is 
150.24  available in the second year. 
150.25     Subd. 11.  [METRO HOMEWORK HOTLINE.] For Metro Hotline for 
150.26  Homework programs to assist students with homework by telephone 
150.27  or other interactive technology: 
150.28       $125,000       .....     1998 
150.29       $125,000       .....     1999 
150.30     Subd. 12. [URBAN EDUCATOR PROGRAM.] For a collaborative 
150.31  urban educator program: 
150.32       $200,000       .....     1998 
150.33     This appropriation is available until June 30, 1999. 
150.34     Sec. 29.  [REPEALERS.] 
150.35     Minnesota Statutes 1996, section 124A.22, subdivision 2a; 
150.36  and Laws 1994, chapter 647, article 7, section 18, are repealed. 
151.1      Sec. 30.  [EFFECTIVE DATES.] 
151.2      (a) Section 15 is effective for revenue for fiscal year 
151.3   1999.  
151.4      (b) Sections 19 to 22 are effective the day following final 
151.5   enactment. 
151.6                              ARTICLE 6
151.7                         ACADEMIC PERFORMANCE
151.8      Section 1.  Minnesota Statutes 1996, section 120.101, is 
151.9   amended by adding a subdivision to read: 
151.10     Subd. 5d.  [WITHDRAWAL FROM SCHOOL.] Notwithstanding 
151.11  subdivision 5 of this section, a student between the ages of 16 
151.12  and 18 years old who seeks to withdraw from school is not 
151.13  subject to compulsory instruction requirements under this 
151.14  section if: 
151.15     (1) school personnel meet with the student and the 
151.16  student's parent or guardian to discuss the educational 
151.17  opportunities available to the student at the school site and 
151.18  other available educational opportunities, including at least 
151.19  alternative secondary programs, area learning centers, charter 
151.20  schools, post-secondary enrollment options, and enrollment in 
151.21  another district; and 
151.22     (2) the student and the student's parent or guardian elect 
151.23  not to participate in an educational course or program at the 
151.24  school site or elsewhere and instead have the student withdraw 
151.25  from school, the student and the student's parent or guardian 
151.26  sign a statement confirming the student's election to withdraw 
151.27  from school. 
151.28     Sec. 2.  [120.1015] [LENGTH OF SCHOOL YEAR; DAYS OF 
151.29  INSTRUCTION.] 
151.30     A school board's annual school calendar shall include at 
151.31  least three additional days of student instruction beyond the 
151.32  number of days of student instruction the board formally adopted 
151.33  as its school calendar at the beginning of the 1996-1997 school 
151.34  year.  Notwithstanding any law to the contrary, a school 
151.35  district may adjust its 1997-98 school calendar to accommodate 
151.36  this section. 
152.1      Sec. 3.  Minnesota Statutes 1996, section 121.602, 
152.2   subdivision 1, is amended to read: 
152.3      Subdivision 1.  [PROGRAM OUTCOMES.] The outcomes of the 
152.4   educational effectiveness program are to: 
152.5      (1) increase meaningful parental involvement in site-based 
152.6   decision making; 
152.7      (2) improve results-oriented instructional educational 
152.8   processes; 
152.9      (3) create flexible school-based organizational structures; 
152.10  and 
152.11     (4) improve student achievement. 
152.12     Sec. 4.  Minnesota Statutes 1996, section 121.602, 
152.13  subdivision 2, is amended to read: 
152.14     Subd. 2.  [ADVISORY TASK FORCE; PROGRAM IMPLEMENTATION.] 
152.15  The commissioner of children, families, and learning shall 
152.16  develop and maintain a program of educational effectiveness and 
152.17  results-oriented instruction education.  The commissioner may 
152.18  appoint an advisory task force to assist the department of 
152.19  children, families, and learning in developing an implementation 
152.20  program for providing staff development to school district staff 
152.21  in educational effectiveness.  The program shall be based on 
152.22  established principles of instructional design and the essential 
152.23  elements of effective instruction as determined by educational 
152.24  research.  The program shall take into account the diverse needs 
152.25  of the school districts due to such factors as district size and 
152.26  location. 
152.27     Sec. 5.  Minnesota Statutes 1996, section 121.602, 
152.28  subdivision 4, is amended to read: 
152.29     Subd. 4.  [EDUCATIONAL EFFECTIVENESS STAFF DEVELOPMENT.] 
152.30  The department of children, families, and learning shall provide 
152.31  assistance to the school districts in implementing an 
152.32  educational effectiveness program.  In selecting an agency to 
152.33  provide assistance to the school districts, the department shall 
152.34  consider such factors as support of the proposal by the 
152.35  participating school districts and the extent to which the 
152.36  proposal provides for participation by school district staff.  
153.1   The department shall evaluate the performance of the service 
153.2   providers.  The staff development shall be facilitated by 
153.3   building level decision-making teams.  The staff development 
153.4   shall include clarification of individual school missions, 
153.5   goals, expectations, enhancement of collaborative planning and 
153.6   collegial relationships among the building staff, improvement of 
153.7   curriculum, assessment, instructional and organizational skills, 
153.8   improvement of financial and management skills, and planning of 
153.9   other staff development programs. 
153.10     Sec. 6.  Minnesota Statutes 1996, section 123.34, is 
153.11  amended by adding a subdivision to read: 
153.12     Subd. 9b.  [SUPERINTENDENT PERFORMANCE CONTRACTS.] The 
153.13  board of a district with more than 5,000 full-time enrolled 
153.14  students may enter into an employment contract with a 
153.15  superintendent containing performance results the superintendent 
153.16  must achieve.  The performance results shall include student 
153.17  achievement, and may also include curriculum improvement, 
153.18  quality of instruction, student attendance, family involvement, 
153.19  community involvement, school district management, or any other 
153.20  performance result desired by the board. 
153.21     Notwithstanding section 43A.17, subdivision 9, if the 
153.22  superintendent achieves the required performance results, the 
153.23  board may fix the superintendent's compensation exceeding 95 
153.24  percent of the salary of the governor as set under section 
153.25  15A.082.  The board must establish a review and evaluation 
153.26  procedure to measure achievement of the performance results. 
153.27     Sec. 7.  [124.305] [ENHANCED STUDENT PERFORMANCE THROUGH A 
153.28  LENGTHENED SCHOOL YEAR.] 
153.29     Subdivision 1.  [ESTABLISHMENT.] A funding source is 
153.30  established to provide additional instructional time to students 
153.31  who may be at risk of underperforming on the state's basic 
153.32  skills test.  School districts must use funding to extend the 
153.33  school year by three weeks.  School districts may extend the 
153.34  school year through extended week, extended day, or extended 
153.35  hour school programs.  To the extent possible, school sites must 
153.36  target programming to students most at risk of underperforming 
154.1   on the state's graduation standards. 
154.2      Subd. 2.  [PUPIL ATTENDANCE.] A school district shall 
154.3   require students to attend an extended school year program if 
154.4   the student: 
154.5      (1) failed a Minnesota basic skills test; or 
154.6      (2) is at risk of failing a Minnesota basic skills test as 
154.7   determined by educators at the school site. 
154.8      A school site may make the extended school year program 
154.9   available to other students. 
154.10     Subd. 3.  [BASIC HOURS OF INSTRUCTION.] "Basic hours of 
154.11  instruction" means the number of hours of instruction that a 
154.12  school district provides for that grade level in the school 
154.13  district during the second previous school year. 
154.14     Subd. 4.  [REVENUE.] Extended instructional time revenue 
154.15  equals the product of: 
154.16     (1) $187; and 
154.17     (2) the number of pupils eligible for free lunch as 
154.18  determined by the count for the previous fall. 
154.19     Extended instructional time revenue is provided through 
154.20  state aid. 
154.21     Subd. 5.  [RESERVE.] If a site determines that the revenue 
154.22  available under subdivision 4 is insufficient to fund the 
154.23  required offerings for students who failed or are at risk of 
154.24  failing a Minnesota basic skills test, the site may apply to the 
154.25  commissioner for additional extended instructional time state 
154.26  aid.  The commissioner shall establish criteria for allocating 
154.27  additional extended instructional time state aid. 
154.28     Subd. 6.  [SITES.] A school district must allocate extended 
154.29  school year to school sites in proportion to the number of free 
154.30  lunch students attending the site.  A school site may operate 
154.31  its own extended year program or jointly operate a program with 
154.32  other school sites. 
154.33     Subd. 7.  [REVENUE USES.] A school site must use extended 
154.34  school year revenue to fund costs associated with providing 
154.35  programs designed to help students reach the levels of 
154.36  proficiency required by the state graduation rule.  The programs 
155.1   may be offered through a longer school day or week during the 
155.2   regular school year or through a summer school program. 
155.3      Subd. 8.  [GIFTED AND TALENTED REVENUE USES.] A site that 
155.4   determines that its students are meeting graduation requirements 
155.5   may use any remaining extended school year revenue to provide 
155.6   gifted and talented programming during the extended school year. 
155.7      Subd. 9.  [ADDITIONAL ELIGIBILITY.] A student eligible for 
155.8   extended school year revenue under this section is also eligible 
155.9   to participate in the graduation incentives program under 
155.10  section 126.22. 
155.11     Sec. 8.  Minnesota Statutes 1996, section 124.646, 
155.12  subdivision 1, is amended to read: 
155.13     Subdivision 1.  [SCHOOL LUNCH AID COMPUTATION.] Each school 
155.14  year, school districts participating in the national school 
155.15  lunch program shall be paid by the state in the amount of 
155.16  6.5 7.5 cents for each full paid, reduced, and free student 
155.17  lunch served to students in the district.  
155.18     Sec. 9.  [124.6475] [SUMMER FOOD SERVICE REPLACEMENT AID.] 
155.19     States funds are available to compensate 
155.20  department-approved summer food program sponsors for reduced 
155.21  federal operating reimbursement rates under Public Law Number 
155.22  104-193, the federal summer food service program.  A sponsor is 
155.23  eligible for summer food service replacement aid equal to the 
155.24  sum of the following amounts: 
155.25     (1) for breakfast service, subtract the current year 
155.26  maximum reimbursement rate from the 1996 maximum reimbursement 
155.27  rate and multiply the result by the number of breakfasts the 
155.28  district served during the current school year; 
155.29     (2) for lunch or supper service, subtract the current year 
155.30  maximum reimbursement rate from the 1996 maximum reimbursement 
155.31  rate and multiply the result by the number of lunches and 
155.32  suppers the district served during the current school year; and 
155.33     (3) for supplement service, subtract the current year 
155.34  maximum reimbursement rate from the 1996 maximum reimbursement 
155.35  rate and multiply the result by the number of supplement meals 
155.36  the district served during the current school year. 
156.1      Sec. 10.  Minnesota Statutes 1996, section 124C.46, 
156.2   subdivision 2, is amended to read: 
156.3      Subd. 2.  [PEOPLE TO BE SERVED.] A center shall provide 
156.4   programs for secondary pupils and adults, giving priority to 
156.5   serving persons between 16 and 21 years of age.  Secondary 
156.6   pupils to be served are those who are chemically dependent, not 
156.7   likely to graduate from high school, need assistance in 
156.8   vocational and basic skills, can benefit from employment 
156.9   experiences, and need assistance in transition from school to 
156.10  employment.  Adults to be served are dislocated homemakers and 
156.11  workers and others who need basic educational and social 
156.12  services.  In addition to offering programs, the center shall 
156.13  coordinate the use of other available educational services, 
156.14  social services, and post-secondary institutions in the 
156.15  community.  The A center may also provide programs, including 
156.16  work-based, service-learning, and applied learning opportunities 
156.17  developed in collaboration with a local education and employment 
156.18  transitions partnership, and services for elementary and 
156.19  secondary pupils who are not attending the center to assist them 
156.20  in completing high being successful in school.  Pupils eligible 
156.21  to be served are those age five to adults 21 and older who 
156.22  qualify under the graduation incentives program in section 
156.23  126.22, subdivision 2.  
156.24     Sec. 11.  Minnesota Statutes 1996, section 126.22, 
156.25  subdivision 2, is amended to read: 
156.26     Subd. 2.  [ELIGIBLE PUPILS.] The following pupils are 
156.27  eligible to participate in the education options graduation 
156.28  incentives program:  
156.29     (a) any pupil under the age of 21 who:  
156.30     (1) performs substantially below the performance level for 
156.31  pupils of the same age in a locally determined achievement test; 
156.32  or 
156.33     (2) is at least one year behind in satisfactorily 
156.34  completing coursework or obtaining credits for graduation; or 
156.35     (3) is pregnant or is a parent; or 
156.36     (4) has been assessed as chemically dependent; or 
157.1      (5) has been excluded or expelled according to sections 
157.2   127.26 to 127.39; or 
157.3      (6) has been referred by a school district for enrollment 
157.4   in an eligible program or a program pursuant to section 126.23; 
157.5   or 
157.6      (7) is a victim of physical or sexual abuse; or 
157.7      (8) has experienced mental health problems; or 
157.8      (9) has experienced homelessness sometime within six months 
157.9   before requesting a transfer to an eligible program; or 
157.10     (10) speaks English as a second language or has limited 
157.11  English proficiency; or 
157.12     (11) is eligible to receive extended school year revenue 
157.13  under section 124.305; or 
157.14     (12) has withdrawn from school or has been chronically 
157.15  truant; or 
157.16     (b) any person who is at least 21 years of age and who:  
157.17     (1) has received fewer than 14 years of public or nonpublic 
157.18  education, beginning at age 5; 
157.19     (2) has not completed the requirements for a high school 
157.20  diploma; and 
157.21     (3) at the time of application, (i) is eligible for 
157.22  reemployment insurance benefits or has exhausted the benefits, 
157.23  (ii) is eligible for, or is receiving income maintenance and 
157.24  support services, as defined in section 268.0111, subdivision 5, 
157.25  or (iii) is eligible for services under the displaced homemaker 
157.26  program, state wage-subsidy program, or any programs under the 
157.27  federal Jobs Training Partnership Act or its successor. 
157.28     Sec. 12.  [TARGETED BREAKFAST GRANTS.] 
157.29     Subdivision 1.  [ESTABLISHMENT.] A grant program for fiscal 
157.30  year 1998 is established to further explore the policy of 
157.31  providing nutritious breakfasts to public elementary school 
157.32  children, without regard to whether the children are eligible to 
157.33  receive free or reduced price meals, so that they can learn 
157.34  effectively. 
157.35     Subd. 2.  [ELIGIBILITY.] An applicant for a grant must be 
157.36  an elementary school that participates in the federal school 
158.1   breakfast and lunch programs.  For a school to receive a grant, 
158.2   at least 33 percent of the lunches the school served to children 
158.3   during the preceding school year must have been provided free or 
158.4   at a reduced price. 
158.5      Subd. 3.  [APPLICATION PROCESS.] To obtain a grant to 
158.6   receive reimbursement for providing breakfasts to all children, 
158.7   whether or not the children are from low-income families and 
158.8   eligible to receive free or reduced price meals, a public 
158.9   elementary school must submit an application to the commissioner 
158.10  of children, families, and learning in the form and manner the 
158.11  commissioner prescribes.  The application must describe how the 
158.12  applicant will encourage all children in the school to 
158.13  participate in the breakfast program.  The applicant also must 
158.14  demonstrate to the commissioner that the applicant will receive 
158.15  a $1 local match of funding or in-kind contributions for every 
158.16  $3 of state funding the applicant receives.  The commissioner 
158.17  may require additional information from the applicant. 
158.18     Subd. 4.  [GRANT AWARDS.] The commissioner shall award 
158.19  grants to the four grant recipients under Laws 1994, chapter 
158.20  647, article 8, section 35, and then on a first-come, 
158.21  first-served basis to all other schools that meet the 
158.22  requirements of subdivisions 2 and 3 until funding under this 
158.23  section is expended.  The commissioner shall determine the 
158.24  amount of the grant using average statewide statistics and 
158.25  individual school statistics adjusted for other state and 
158.26  federal reimbursements.  Grant recipients must use the proceeds 
158.27  to provide breakfasts to school children every day school is in 
158.28  session. 
158.29     Sec. 13.  [APPROPRIATIONS.] 
158.30     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
158.31  LEARNING.] The sums indicated in this section are appropriated 
158.32  from the general fund to the department of children, families, 
158.33  and learning for the fiscal years designated.  
158.34     Subd. 2.  [ABATEMENT AID.] For abatement aid according to 
158.35  Minnesota Statutes, section 124.214:  
158.36       $13,661,000    .....     1998 
159.1        $13,612,000    .....     1999 
159.2      The 1998 appropriation includes $684,000 for 1997 and 
159.3   $12,977,000 for 1998.  
159.4      The 1999 appropriation includes $1,441,000 for 1998 and 
159.5   $12,171,000 for 1999.  
159.6      Subd. 3.  [NONPUBLIC PUPIL AID.] For nonpublic pupil 
159.7   education aid according to Minnesota Statutes, sections 123.79 
159.8   and 123.931 to 123.947: 
159.9        $9,430,000     .....      1998 
159.10       $9,688,000     .....      1999 
159.11     The 1998 appropriation includes $900,000 for 1997 and 
159.12  $8,530,000 for 1998. 
159.13     The 1999 appropriation includes $947,000 for 1998 and 
159.14  $8,741,000 for 1999. 
159.15     Subd. 4.  [SCHOOL LUNCH AND FOOD STORAGE AID.] (a) For 
159.16  school lunch aid according to Minnesota Statutes, section 
159.17  124.646, and Code of Federal Regulations, title 7, section 
159.18  210.17, and for food storage and transportation costs for United 
159.19  States Department of Agriculture donated commodities; and for a 
159.20  temporary transfer to the commodity processing revolving fund to 
159.21  provide cash flow to permit schools and other recipients of 
159.22  donated commodities to take advantage of volume processing rates 
159.23  and for school milk aid according to Minnesota Statutes, section 
159.24  124.648:  
159.25       $8,754,000     .....     1998 
159.26       $8,754,000     .....     1999 
159.27     (b) Any unexpended balance remaining from the 
159.28  appropriations in this subdivision shall be prorated among 
159.29  participating schools based on the number of free, reduced, and 
159.30  fully paid federally reimbursable student lunches served during 
159.31  that school year.  
159.32     (c) If the appropriation amount attributable to either year 
159.33  is insufficient, the rate of payment for each fully paid student 
159.34  lunch shall be reduced and the aid for that year shall be 
159.35  prorated among participating schools so as not to exceed the 
159.36  total authorized appropriation for that year.  
160.1      (d) Any temporary transfer processed in accordance with 
160.2   this subdivision to the commodity processing fund will be 
160.3   returned by June 30 in each year so that school lunch aid and 
160.4   food storage costs can be fully paid as scheduled.  
160.5      (e) Not more than $800,000 of the amount appropriated each 
160.6   year may be used for school milk aid. 
160.7      (f) The commissioner may reduce other future aid and grant 
160.8   payments to school districts and other organizations for the 
160.9   costs of processing and storage of commodities used by the 
160.10  school district or organization. 
160.11     Subd. 5.  [SUMMER FOOD SERVICE.] For summer food service: 
160.12       $15,000        .....     1998
160.13       $15,000        .....     1999
160.14     Subd. 6.  [SCHOOL BREAKFAST.] To operate the school 
160.15  breakfast program according to Minnesota Statutes, sections 
160.16  124.6469 and 124.6472: 
160.17       $456,000       .....     1998
160.18       $456,000       .....     1999
160.19     If the appropriation amount attributable to either year is 
160.20  insufficient, the rate of payment for each fully paid student 
160.21  breakfast shall be reduced and the aid for that year shall be 
160.22  prorated among participating schools so as not to exceed the 
160.23  total authorized appropriation for that year.  Any unexpected 
160.24  balance remaining shall be used to subsidize the payments made 
160.25  for school lunch aid per Minnesota Statutes, section 124.646.  
160.26     Up to one percent of the program funding can be used by the 
160.27  department of children, families, and learning for technical and 
160.28  administrative assistance. 
160.29     Subd. 7.  [PSEO REPLACEMENT AID.] For PSEO replacement aid: 
160.30       $12,000        .....     1998 
160.31     The 1998 appropriation includes $12,000 for 1997 and $-0- 
160.32  for 1998. 
160.33     Subd. 8.  [EXTENDED INSTRUCTIONAL TIME REVENUE.] For the 
160.34  purpose of funding the extended hours program under Minnesota 
160.35  Statutes, section 124.305: 
160.36       $25,800,000    .....     1998 
161.1        $25,800,000    .....     1999 
161.2      Any balance in the first year does not cancel but is 
161.3   available in the second year.  Of each year's appropriation, up 
161.4   to $2,000,000 in fiscal year 1998 and up to $1,000,000 in fiscal 
161.5   year 1999 is available for allocation under Minnesota Statutes, 
161.6   section 124.305, subdivision 5. 
161.7      Subd. 9.  [SCHOOL BREAKFAST OUTREACH.] To initiate school 
161.8   breakfast programs under Minnesota Statutes, section 124.6469, 
161.9   at school sites not currently providing a school breakfast 
161.10  program or at schools that initiated a school breakfast program 
161.11  during the 1996-1997 school year: 
161.12       $15,000        .....     1998 
161.13       $15,000        .....     1999 
161.14     Subd. 10.  [SUMMER FOOD SERVICE REPLACEMENT AID.] For 
161.15  summer food service replacement aid under Minnesota Statutes, 
161.16  section 124.6475: 
161.17       $150,000       .....     1998 
161.18       $150,000       .....     1999 
161.19     Subd. 11.  [TARGETED BREAKFAST GRANTS.] For targeted 
161.20  breakfast grants under section 12: 
161.21       $500,000       .....     1998 
161.22       $500,000       .....     1999 
161.23     Subd. 12.  [FAMILY CONNECTIONS AID.] For family connections 
161.24  aid according to Minnesota Statutes, section 124.276: 
161.25       $125,000       .....     1998
161.26       $125,000       .....     1999
161.27     Any balance in the first year does not cancel but is 
161.28  available in the second year. 
161.29     Sec. 14.  [REPEALER.] 
161.30     Minnesota Statutes 1996, section 124.177, is repealed. 
161.31                             ARTICLE 7
161.32                      EDUCATION POLICY ISSUES
161.33     Section 1.  Minnesota Statutes 1996, section 120.062, 
161.34  subdivision 7, is amended to read: 
161.35     Subd. 7.  [BASIS FOR DECISIONS.] The school board must 
161.36  adopt, by resolution, specific standards for acceptance 
162.1   accepting and rejection of rejecting applications.  Standards 
162.2   may include the capacity of a program, class, grade level, or 
162.3   school building or disciplinary proceeding during the current or 
162.4   two preceding calendar years if the proceeding resulted in 
162.5   expelling a secondary student who willfully engaged in dangerous 
162.6   or violent behavior or the secondary school student was 
162.7   convicted of or adjudicated for committing a felony.  Standards 
162.8   may not include previous academic achievement, athletic or other 
162.9   extracurricular ability, disabling conditions, or proficiency in 
162.10  the English language, or previous disciplinary proceedings.  
162.11     Sec. 2.  Minnesota Statutes 1996, section 120.101, 
162.12  subdivision 5c, is amended to read: 
162.13     Subd. 5c.  [EDUCATION RECORDS.] (a) A school district from 
162.14  which a student is transferring must transmit the student's 
162.15  educational records, within ten business days of a request, to 
162.16  the school district in which the student is enrolling.  School 
162.17  districts must make reasonable efforts to determine the school 
162.18  district in which a transferring student is next enrolling in 
162.19  order to comply with this subdivision. 
162.20     (b) A school district that transmits a student's 
162.21  educational records to another school district or other 
162.22  educational entity to which the student is transferring must 
162.23  include in the transmitted records information about 
162.24  disciplinary action taken as a result of any incident in which 
162.25  the student possessed or used a dangerous weapon. 
162.26     Sec. 3.  Minnesota Statutes 1996, section 120.17, 
162.27  subdivision 3a, is amended to read: 
162.28     Subd. 3a.  [SCHOOL DISTRICT OBLIGATIONS.] Every district 
162.29  shall ensure that: 
162.30     (1) all students with disabilities are provided the special 
162.31  instruction and services which are appropriate to their needs.  
162.32  Where the individual education plan team has determined 
162.33  appropriate goals and objectives based on the student's needs, 
162.34  including the extent to which the student can be included in the 
162.35  least restrictive environment, and where there are essentially 
162.36  equivalent and effective instruction, related services, or 
163.1   assistive technology devices available to meet the student's 
163.2   needs, cost to the school district may be among the factors 
163.3   considered by the team in choosing how to provide the 
163.4   appropriate services, instruction, or devices that are to be 
163.5   made part of the student's individual education plan.  The 
163.6   student's needs and the special education instruction and 
163.7   services to be provided shall be agreed upon through the 
163.8   development of an individual education plan.  When proceeding 
163.9   with the initial formal assessment of a student and determining 
163.10  the least restrictive environment in which to initially place 
163.11  the student, the individual education plan team shall consider 
163.12  the student's ability to engage in conduct consistent with the 
163.13  school's student discipline policy to the extent the policy is 
163.14  consistent with the content of the student's individual 
163.15  education plan.  The plan shall address the student's need to 
163.16  develop skills to live and work as independently as possible 
163.17  within the community.  By grade 9 or age 14, the plan shall 
163.18  address the student's needs for transition from secondary 
163.19  services to post-secondary education and training, employment, 
163.20  community participation, recreation, and leisure and home 
163.21  living.  The plan must include a statement of the needed 
163.22  transition services, including a statement of the interagency 
163.23  responsibilities or linkages or both before secondary services 
163.24  are concluded; 
163.25     (2) children with a disability under age five and their 
163.26  families are provided special instruction and services 
163.27  appropriate to the child's level of functioning and needs; 
163.28     (3) children with a disability and their parents or 
163.29  guardians are guaranteed procedural safeguards and the right to 
163.30  participate in decisions involving identification, assessment 
163.31  including assistive technology assessment, and educational 
163.32  placement of children with a disability; 
163.33     (4) to the maximum extent appropriate, children with a 
163.34  disability, including those in public or private institutions or 
163.35  other care facilities, are educated with children who are not 
163.36  disabled, and that special classes, separate schooling, or other 
164.1   removal of children with a disability from the regular 
164.2   educational environment occurs only when and to the extent that 
164.3   the nature or severity of the disability is such that education 
164.4   in regular classes with the use of supplementary services cannot 
164.5   be achieved satisfactorily; 
164.6      (5) in accordance with recognized professional standards, 
164.7   testing and evaluation materials, and procedures utilized for 
164.8   the purposes of classification and placement of children with a 
164.9   disability are selected and administered so as not to be 
164.10  racially or culturally discriminatory; and 
164.11     (6) the rights of the child are protected when the parents 
164.12  or guardians are not known or not available, or the child is a 
164.13  ward of the state. 
164.14     Sec. 4.  Minnesota Statutes 1996, section 123.3514, 
164.15  subdivision 4c, is amended to read: 
164.16     Subd. 4c.  [LIMIT ON PARTICIPATION.] A pupil who first 
164.17  enrolls in grade 11 may not enroll in post-secondary courses 
164.18  under this section for secondary credit for more than the 
164.19  equivalent of two academic years.  A pupil who first enrolls in 
164.20  grade 12 may not enroll in post-secondary courses under this 
164.21  section for secondary credit for more than the equivalent of one 
164.22  academic year.  If a pupil in grade 11 or 12 first enrolls in a 
164.23  post-secondary course for secondary credit during the school 
164.24  year, the time of participation shall be reduced 
164.25  proportionately.  If a pupil is in a learning year or other 
164.26  year-round program and begins each grade in the summer session, 
164.27  summer sessions shall not be counted against the time of 
164.28  participation.  A pupil who has graduated from high school 
164.29  cannot participate in a program under this section.  A pupil who 
164.30  has completed course requirements for graduation but who has not 
164.31  received a diploma may participate in the program under this 
164.32  section. 
164.33     Sec. 5.  Minnesota Statutes 1996, section 123.3514, 
164.34  subdivision 8, is amended to read: 
164.35     Subd. 8.  [TRANSPORTATION.] A parent or guardian of a pupil 
164.36  enrolled in a course for secondary credit may apply to the 
165.1   pupil's district of residence for reimbursement for transporting 
165.2   the pupil between the secondary school in which the pupil is 
165.3   enrolled or the pupil's home and the post-secondary institution 
165.4   that the pupil attends.  The commissioner shall establish 
165.5   guidelines for providing state aid to Districts to shall 
165.6   reimburse the parent or guardian for the necessary 
165.7   transportation costs, which shall be based on financial 
165.8   need when the family's or guardian's income is at or below the 
165.9   poverty level, as determined by the federal government.  The 
165.10  reimbursement may not exceed shall be the pupil's actual cost of 
165.11  transportation or 15 cents per mile traveled, whichever is 
165.12  less.  Reimbursement may not be paid for more than 250 miles per 
165.13  week.  However, if the nearest post-secondary institution is 
165.14  more than 25 miles from the pupil's resident secondary school, 
165.15  the weekly reimbursement may not exceed the reimbursement rate 
165.16  per mile times the actual distance between the secondary school 
165.17  or the pupil's home and the nearest post-secondary institution 
165.18  times ten.  The state shall pay aid to the district according to 
165.19  the guidelines established under this subdivision.  Chapter 14 
165.20  does not apply to the guidelines. 
165.21     Sec. 6.  Minnesota Statutes 1996, section 124C.498, 
165.22  subdivision 2, is amended to read: 
165.23     Subd. 2.  [APPROVAL AUTHORITY; APPLICATION FORMS.] To the 
165.24  extent money is available, the commissioner of children, 
165.25  families, and learning may approve projects from applications 
165.26  submitted under this section.  The grant money must be used only 
165.27  to design, acquire, construct, remodel, improve, furnish, or 
165.28  equip the building or site of a magnet school facility according 
165.29  to contracts entered into within 15 24 months after the date on 
165.30  which a grant is awarded. 
165.31     Sec. 7.  Minnesota Statutes 1996, section 125.12, 
165.32  subdivision 14, is amended to read: 
165.33     Subd. 14.  [RECORDS RELATING TO INDIVIDUAL TEACHER; ACCESS; 
165.34  EXPUNGEMENT.] All evaluations and files generated within a 
165.35  school district relating to each individual teacher shall be 
165.36  available to each individual teacher upon written request.  
166.1   Effective January 1, 1976, all evaluations and files, wherever 
166.2   generated, relating to each individual teacher shall be 
166.3   available to each individual teacher upon written request.  The 
166.4   teacher shall have the right to reproduce any of the contents of 
166.5   the files at the teacher's expense and to submit for inclusion 
166.6   in the file written information in response to any material 
166.7   contained therein. 
166.8      A school district may destroy the files as provided by law 
166.9   and shall expunge from the teacher's file any material found to 
166.10  be false or substantially inaccurate through the grievance 
166.11  procedure required pursuant to section 179A.20, subdivision 4; 
166.12  provided, the grievance procedure promulgated by the director of 
166.13  the bureau of mediation services, pursuant to section 179A.04, 
166.14  subdivision 3, clause (h), shall apply to those principals and 
166.15  supervisory employees not included in an appropriate unit as 
166.16  defined in section 179A.03.  Expungement proceedings shall be 
166.17  commenced within the time period provided in the collective 
166.18  bargaining agreement for the commencement of a grievance.  If no 
166.19  time period is provided in the bargaining agreement, the 
166.20  expungement proceedings shall commence within 15 days after the 
166.21  teacher has knowledge of the inclusion in the teacher's file of 
166.22  the material the teacher seeks to have expunged.  
166.23     Sec. 8.  Minnesota Statutes 1996, section 126.77, 
166.24  subdivision 1, is amended to read: 
166.25     Subdivision 1.  [VIOLENCE PREVENTION CURRICULUM.] (a) The 
166.26  commissioner of children, families, and learning, in 
166.27  consultation with the commissioners of health and human 
166.28  services, state minority councils, battered women's programs, 
166.29  sexual assault centers, representatives of religious 
166.30  communities, and the assistant commissioner of the office of 
166.31  drug policy and violence prevention, shall assist districts on 
166.32  request in developing or implementing a violence prevention 
166.33  program for students in kindergarten to grade 12 that can be 
166.34  integrated into existing curriculum.  The purpose of the program 
166.35  is to help students learn how to resolve conflicts within their 
166.36  families and communities in nonviolent, effective ways.  
167.1      (b) Each district is encouraged to integrate into its 
167.2   existing curriculum a program for violence prevention that 
167.3   includes at least: 
167.4      (1) a comprehensive, accurate, and age appropriate 
167.5   curriculum on violence prevention, nonviolent conflict 
167.6   resolution, and sexual, racial, and cultural harassment, and 
167.7   student hazing that promotes equality, respect, understanding, 
167.8   effective communication, individual responsibility, thoughtful 
167.9   decision making, positive conflict resolution, useful coping 
167.10  skills, critical thinking, listening and watching skills, and 
167.11  personal safety; 
167.12     (2) planning materials, guidelines, and other accurate 
167.13  information on preventing physical and emotional violence, 
167.14  identifying and reducing the incidence of sexual, racial, and 
167.15  cultural harassment, and reducing child abuse and neglect; 
167.16     (3) a special parent education component of early childhood 
167.17  family education programs to prevent child abuse and neglect and 
167.18  to promote positive parenting skills, giving priority to 
167.19  services and outreach programs for at-risk families; 
167.20     (4) involvement of parents and other community members, 
167.21  including the clergy, business representatives, civic leaders, 
167.22  local elected officials, law enforcement officials, and the 
167.23  county attorney; 
167.24     (5) collaboration with local community services, agencies, 
167.25  and organizations that assist in violence intervention or 
167.26  prevention, including family-based services, crisis services, 
167.27  life management skills services, case coordination services, 
167.28  mental health services, and early intervention services; 
167.29     (6) collaboration among districts and SCs; 
167.30     (7) targeting early adolescents for prevention efforts, 
167.31  especially early adolescents whose personal circumstances may 
167.32  lead to violent or harassing behavior; 
167.33     (8) opportunities for teachers to receive in-service 
167.34  training or attend other programs on strategies or curriculum 
167.35  designed to assist students in intervening in or preventing 
167.36  violence in school and at home; and 
168.1      (9) administrative policies that reflect, and a staff that 
168.2   models, nonviolent behaviors that do not display or condone 
168.3   sexual, racial, or cultural harassment or student hazing. 
168.4      (c) The department may provide assistance at a neutral site 
168.5   to a nonpublic school participating in a district's program. 
168.6      Sec. 9.  [126.801] [SCHOOL USE POLICY FOR COMPUTERS.] 
168.7      Subdivision 1.  [MODEL POLICY.] The commissioner of 
168.8   children, families, and learning shall develop and distribute a 
168.9   model policy for school districts concerning appropriate usage 
168.10  of the Internet with recommended protocols for staff and 
168.11  students to follow in order to maximize the educational benefits 
168.12  of on-line services. 
168.13     Subd. 2.  [PROTECTIVE SOFTWARE.] The commissioner of 
168.14  children, families, and learning shall research, evaluate, and 
168.15  make recommendations to school districts on computer software 
168.16  products that are proven to filter, block, or otherwise prevent 
168.17  the use of school computers for the transmission of any comment, 
168.18  request, suggestion, proposal, image, or other communication 
168.19  which is: 
168.20     (1) obscene, indecent, or sexually explicit; or 
168.21     (2) intended to promote or incite violence against other 
168.22  living persons. 
168.23     Subd. 3.  [SCHOOL DISTRICTS.] Within one year of the 
168.24  commissioner completing the requirements of subdivisions 1 and 
168.25  2, each school district must adopt a policy on Internet usage. 
168.26     Sec. 10.  Minnesota Statutes 1996, section 127.27, 
168.27  subdivision 10, is amended to read: 
168.28     Subd. 10.  [SUSPENSION.] "Suspension" means an action taken 
168.29  by the school administration, under rules promulgated by the 
168.30  school board, prohibiting a pupil from attending school for a 
168.31  period of no more than ten school days.  If a suspension is 
168.32  longer than five days, the suspending administrator must provide 
168.33  the superintendent with a reason for the longer suspension.  
168.34  This definition does not apply to dismissal from school for one 
168.35  school day or less.  Each suspension action shall include a 
168.36  readmission plan.  The readmission plan shall include, where 
169.1   appropriate, a provision for implementing alternative programs 
169.2   to be implemented educational services upon readmission.  
169.3   Suspension may not be consecutively imposed The school 
169.4   administration may not impose consecutive suspensions against 
169.5   the same pupil for the same course of conduct, or incident of 
169.6   misconduct, except where the pupil will create an immediate and 
169.7   substantial danger to self or to surrounding persons or 
169.8   property, or where the district is in the process of initiating 
169.9   an expulsion, in which case the school administration may extend 
169.10  the suspension up to 15 days.  In no event shall suspension 
169.11  exceed 15 school days, provided that an In the case of a pupil 
169.12  with a disability, a suspension may not exceed ten school days.  
169.13  The school administration shall implement alternative program 
169.14  shall be implemented educational services to the extent that 
169.15  suspension exceeds five days.  A separate administrative 
169.16  conference is required for each period of suspension. 
169.17     Sec. 11.  Minnesota Statutes 1996, section 127.282, is 
169.18  amended to read: 
169.19     127.282 [EXPULSION FOR POSSESSION OF FIREARM.] 
169.20     (a) Notwithstanding the time limitation in section 127.27, 
169.21  subdivision 5, a school board must expel for a period of at 
169.22  least one calendar year a pupil who is determined to have 
169.23  brought a firearm to school except the board may modify this 
169.24  expulsion requirement for a pupil on a case-by-case basis.  For 
169.25  the purposes of this section, firearm is as defined in United 
169.26  States Code, title 18, section 921. 
169.27     (b) Notwithstanding chapter 13, a student's expulsion or 
169.28  withdrawal or transfer from a school after an expulsion action 
169.29  is initiated against the student for a weapons violation under 
169.30  paragraph (a) may be disclosed by the school district initiating 
169.31  the expulsion proceeding.  Unless the information is otherwise 
169.32  public, the disclosure may be made only to another school 
169.33  district in connection with the possible admission of the 
169.34  student to the other district. 
169.35     Sec. 12.  [127.4105] [INFORMATION ON TEACHER LIABILITY.] 
169.36     A school board shall, at the beginning of each school year, 
170.1   disseminate to all teachers employed in the district a written 
170.2   statement informing the teachers of the school district's 
170.3   insurance coverage for the teachers' criminal and civil 
170.4   liability for disciplining a student and the extent of the 
170.5   liability of the district's liability insurer, and the extent of 
170.6   district tort liability provisions under chapter 466 for torts 
170.7   that teachers might commit while acting within the scope of 
170.8   their employment. 
170.9      Sec. 13.  [127.465] [HAZING POLICY.] 
170.10     Subdivision 1.  [DEFINITIONS.] (a) "Hazing" means 
170.11  committing an act against a student, or coercing a student into 
170.12  committing an act, that creates a substantial risk of harm to a 
170.13  person in order for the student to be initiated into or 
170.14  affiliated with a student organization. 
170.15     (b) "Student organization" means a group, club, or 
170.16  organization having students as its primary members or 
170.17  participants. 
170.18     Subd. 2.  [MODEL POLICY.] The commissioner of children, 
170.19  families, and learning shall maintain and make available to 
170.20  school boards a model policy on student hazing that addresses 
170.21  the requirements of subdivision 3.  
170.22     Subd. 3.  [SCHOOL BOARD POLICY.] Each school board shall 
170.23  adopt a written policy governing student hazing.  The policy 
170.24  must apply to student behavior that occurs on or off school 
170.25  property and during and after school hours.  The policy must 
170.26  include reporting procedures and disciplinary consequences for 
170.27  violating the policy.  Disciplinary consequences must be 
170.28  sufficiently severe to deter violations and appropriately 
170.29  discipline prohibited behavior.  Disciplinary consequences must 
170.30  conform with sections 127.27 to 127.39.  Each school must 
170.31  include the policy in the student handbook on school policies. 
170.32     Sec. 14.  Minnesota Statutes 1996, section 128C.02, 
170.33  subdivision 2, is amended to read: 
170.34     Subd. 2.  [SEXUAL HARASSMENT AND VIOLENCE; HAZING.] The 
170.35  board of the league shall adopt a policy, rules, penalties, and 
170.36  recommendations addressing sexual harassment and sexual violence 
171.1   and hazing toward and by participants in league activities. 
171.2      Sec. 15.  [CONSULTATION.] 
171.3      The commissioner of children, families, and learning shall 
171.4   consult with the Minnesota school board association in preparing 
171.5   the model hazing policy under section 127.465. 
171.6      Sec. 16.  [RECOMMENDATIONS FOR ALTERNATIVE SCHOOL YEAR 
171.7   CALENDARS.] 
171.8      Subdivision 1.  [WORKING GROUP RECOMMENDATIONS.] The 
171.9   commissioner of children, families, and learning shall convene a 
171.10  working group to consider alternative school year calendars, 
171.11  including at least 45-15 plans, four-quarter plans, quinmester 
171.12  plans, extended learning year plans, flexible all-year plans, 
171.13  and four-day week plans, and recommend to the legislature those 
171.14  alternative school year calendars that best allow school 
171.15  districts to meet the educational needs of their students.  The 
171.16  working group must include one representative from each of the 
171.17  following organizations:  the Minnesota school boards 
171.18  association; the Minnesota education association; the Minnesota 
171.19  federation of teachers; the Minnesota association of school 
171.20  administrators; the Minnesota association of secondary school 
171.21  principals; the Minnesota elementary school principals' 
171.22  association; the Minnesota association for pupil transportation; 
171.23  the Minnesota association for supervision and curriculum; the 
171.24  Minnesota congress of parents, teachers, and students; the 
171.25  Minnesota state high school league; the Minnesota business 
171.26  partnership; and the Minnesota restaurant, hotel, and resort 
171.27  associations.  By February 1, 1998, the commissioner shall 
171.28  submit the group's recommendations concerning the alternative 
171.29  school year calendars that best allow school districts to meet 
171.30  the educational needs of their students to the chairs of the 
171.31  education committees of the legislature. 
171.32     Subd. 2.  [ISSUE TO RESOLVE.] In recommending to the 
171.33  legislature the alternative school year calendars that best 
171.34  allow school districts to meet the educational needs of their 
171.35  students, the working group must at least consider: 
171.36     (1) how buildings and other facilities can be optimally 
172.1   used during an entire year; 
172.2      (2) what the optimal learning year schedule is of 
172.3   elementary and secondary disabled students and staff in schools 
172.4   and residential facilities; 
172.5      (3) how a district divides its students among its 
172.6   facilities to accommodate an alternative school year calendar; 
172.7      (4) how a district accommodates an alternative school year 
172.8   calendar in the context of the public employment labor relations 
172.9   act; 
172.10     (5) what parent involvement is required in establishing an 
172.11  alternative school year calendar; 
172.12     (6) how school staff is assigned in a district with fewer 
172.13  than all facilities adopting an alternative school year 
172.14  calendar; 
172.15     (7) how teachers' contracting rights are affected by an 
172.16  alternative school year calendar; 
172.17     (8) what educational standards and requirements apply to a 
172.18  district operating an alternative school year calendar; 
172.19     (9) what adjustments of attendance and apportionments of 
172.20  state aid are required; and 
172.21     (10) how concerns of the Minnesota restaurant, hotel, and 
172.22  resort associations can be addressed in an alternative school 
172.23  year calendar. 
172.24     Sec. 17.  [GRANTS TO IMPLEMENT CONSTRUCTIVE SCHOOL 
172.25  DISCIPLINE POLICIES.] 
172.26     Subdivision 1.  [POLICY.] The legislature acknowledges the 
172.27  importance of teaching students in a regular classroom setting 
172.28  where possible.  Students in an educational setting should 
172.29  expect to behave in a manner that is appropriate for learning.  
172.30  When students misbehave, school discipline policies should 
172.31  penalize students' misbehavior, with the ultimate goal of 
172.32  returning students to their regular classrooms.  Schools should 
172.33  involve parents in collaborative efforts to alter students' 
172.34  classroom misbehavior.  Schools and parents should find ways to 
172.35  ensure that students' misbehavior does not become chronic, 
172.36  necessitating long-term intervention and the need for special 
173.1   services. 
173.2      Subd. 2.  [ESTABLISHMENT.] A grant program for fiscal year 
173.3   1998 is established to develop, implement, and evaluate school 
173.4   discipline policies, consistent with the Pupil Fair Dismissal 
173.5   Act under Minnesota Statutes, sections 127.26 to 127.39 and 
173.6   sections 127.40 to 127.48.  Discipline policies, developed under 
173.7   this section, should be designed to enable students to 
173.8   successfully return to the regular classroom setting after being 
173.9   disciplined for misbehavior.  Discipline policies should focus 
173.10  on early intervention strategies that limit the need to provide 
173.11  regular education students with additional special programs or 
173.12  services. 
173.13     Subd. 3.  [ELIGIBILITY.] An applicant for a grant must be a 
173.14  school site, a school district, a charter school, or a provider 
173.15  of an alternative education program.  To be eligible for a 
173.16  grant, the grant applicant must meet all of the following 
173.17  criteria: 
173.18     (1) develop a plan to establish a school site mediation 
173.19  board under Minnesota Statutes, sections 127.411 to 127.42, to 
173.20  mediate issues relating to district or school site codes of 
173.21  conduct that apply to students; 
173.22     (2) include in the code of conduct a plan to remove from 
173.23  the regular classroom setting those students who violate the 
173.24  code; 
173.25     (3) provide students who violate the code with an 
173.26  alternative education setting within the school or program site; 
173.27  and 
173.28     (4) make the alternative education setting a constructive 
173.29  experience by using instructional materials tied to educational 
173.30  standards, placing students in an alternative setting outside 
173.31  the normal school day, involving parents in effecting 
173.32  discipline, or developing intervention techniques such as time 
173.33  outs, among other alternatives. 
173.34     Subd. 4.  [APPLICATION PROCESS.] To obtain a grant to 
173.35  implement constructive school discipline policies, a grant 
173.36  applicant must submit an application to the commissioner of 
174.1   children, families, and learning in the form and manner the 
174.2   commissioner establishes.  The application must describe how the 
174.3   applicant will meet the eligibility criteria under subdivision 
174.4   3.  The commissioner may require the applicant to provide 
174.5   additional information. 
174.6      Subd. 5.  [GRANT AWARDS.] The commissioner may award up to 
174.7   five grants of up to $50,000.  Grant recipients must be located 
174.8   throughout the state and have diverse experiences with student 
174.9   disciplinary matters.  The amount of the grant shall be based on 
174.10  the number of students the grant recipient anticipates will be 
174.11  disciplined and on the alternative education settings the grant 
174.12  recipient proposes to use.  Grant recipients must use the grant 
174.13  proceeds to accomplish the purposes of this section. 
174.14     Subd. 6.  [EVALUATION.] The commissioner shall evaluate the 
174.15  grant sites and selected control sites to determine the impact 
174.16  of the constructive discipline policy grant program on measures 
174.17  of student behavior and performance, including at least, student 
174.18  achievement and attendance, and the impact of the program on the 
174.19  school site, the student body, the classroom, and the school 
174.20  faculty.  The evaluation must also address the financial impact 
174.21  of the program on the district and the school site.  Upon 
174.22  implementing a student code of conduct consistent with this 
174.23  section, the grant recipient must cooperate in evaluating the 
174.24  impact of code policies.  As a part of the evaluation process, 
174.25  the grant recipient must document student and parent response to 
174.26  code policies over at least a three-year period.  The 
174.27  commissioner shall compile for the education committees of the 
174.28  legislature a progress report by February 1, 1999, and a final 
174.29  report by February 1, 2001, on the effectiveness and impact of 
174.30  discipline policies. 
174.31     Sec. 18.  [PARTNERS FOR QUALITY SCHOOL IMPROVEMENT PILOT 
174.32  TRAINING PROGRAM.] 
174.33     Subdivision 1.  [ESTABLISHMENT.] The school improvement 
174.34  training and performance pilot program is established to 
174.35  accelerate school quality and performance improvement 
174.36  initiatives that lead to improved student achievement in both 
175.1   high-performing and under-performing schools. 
175.2      Subd. 2.  [ELIGIBILITY.] A school district is eligible to 
175.3   apply for a grant to establish one or more school improvement 
175.4   training and performance sites.  The application and selection 
175.5   process must be developed and implemented by the Minnesota 
175.6   academic excellence foundation and reviewed by the commissioner 
175.7   of children, families, and learning.  Priority for participation 
175.8   must be given to school districts in which: 
175.9      (1) the district has received an educational performance 
175.10  improvement grant under Laws 1994, chapter 647, article 7, 
175.11  section 18, and has demonstrated improvement in student learning 
175.12  as a result of the grant; 
175.13     (2) one school or the district has completed training in a 
175.14  statewide quality improvement initiative; 
175.15     (3) the district has demonstrated accountability by 
175.16  developing and communicating an agenda to increase student 
175.17  learning; 
175.18     (4) there are significant numbers of students with critical 
175.19  learning needs and gaps in learning between these students and 
175.20  other groups of students; and 
175.21     (5) site-based management is being implemented. 
175.22     Subd. 3.  [PROGRAM SERVICES.] The Minnesota academic 
175.23  excellence foundation must provide training and technical 
175.24  assistance to selected districts to: 
175.25     (1) create plans for the district-wide deployment of 
175.26  quality improvement training to all staff; 
175.27     (2) create a means for identifying and providing remedial, 
175.28  interventive, or preventive assistance to schools in the 
175.29  district, based upon the schools' performances against state and 
175.30  local goals and standards; 
175.31     (3) accelerate school performance and student learning in 
175.32  high-performing and under-performing schools; and 
175.33     (4) train quality program trainers at each site. 
175.34     Subd. 4.  [SCHOOL DISTRICT PARTICIPANTS.] Selected 
175.35  districts must enter into a contract to achieve increases in 
175.36  student learning, staff development and performance, and 
176.1   administrative support services to schools within the district.  
176.2   Additionally, each selected district must: 
176.3      (1) plan and deploy quality improvement and other training 
176.4   to all staff in the district; 
176.5      (2) establish quality and performance goals and measure 
176.6   results and report the achieved results at the selected school 
176.7   sites; and 
176.8      (3) assist in duplicating successful programs in other 
176.9   districts by providing training to other school districts for a 
176.10  period of up to four years, in collaboration with the Minnesota 
176.11  academic excellence foundation. 
176.12     Subd. 5.  [REPORT.] The Minnesota academic excellence 
176.13  foundation must report to the commissioner of children, 
176.14  families, and learning on the progress of the project and 
176.15  annually on the results of the project. 
176.16     Sec. 19.  [GRANT PROGRAM FOR VIOLENCE PREVENTION THROUGH 
176.17  THE DEVELOPMENT OF PLAYS, WORKSHOPS, AND EDUCATIONAL RESOURCES.] 
176.18     Subdivision 1.  [GRANT PROGRAM.] The commissioner shall 
176.19  administer a grant program to fund statewide programs to create 
176.20  and develop theatrical plays, workshops, and educational 
176.21  resources based on peer education models that promote increased 
176.22  awareness and prevention of sexual abuse, interpersonal 
176.23  violence, emotional violence, and sexual harassment.  Programs 
176.24  eligible for grants must use a combination of theater 
176.25  professionals and prevention specialists in the delivery of the 
176.26  service and use a peer education model that uses researched and 
176.27  proven content in training youth to perform in the plays and 
176.28  workshops.  Programs must provide the source material, the 
176.29  training program, develop the educational materials, and provide 
176.30  technical assistance. 
176.31     Subd. 2.  [GRANT PROCEDURE.] Programs may apply for a grant 
176.32  by submitting an application to the commissioner.  The 
176.33  commissioner may distribute grants to one or more programs 
176.34  meeting the criteria described in subdivision 1. 
176.35     Sec. 20.  [CLASS SIZE PROJECT.] 
176.36     A class size project is established in independent school 
177.1   district No. 12, Centennial.  The purpose of this project is to 
177.2   establish that significantly lower class size and 
177.3   instructor-to-learner ratios in a suburban community will result 
177.4   in measurable achievements for students, staff, and parents. 
177.5      Sec. 21.  [INSTRUCTIONAL DAY CLARIFICATION.] 
177.6      (a) This section applies to any school district employee 
177.7   who was scheduled to work on January 16, 1997, did not work on 
177.8   that day, and did not receive compensation for that day. 
177.9      (b) Notwithstanding any law to the contrary, a school 
177.10  district must either:  (1) allow any school district employee 
177.11  under paragraph (a) the opportunity to work on another day that 
177.12  the school district designates and must compensate the employee 
177.13  working on the designated day at the employee's normal rate of 
177.14  pay; or (2) compensate any school district employee under 
177.15  paragraph (a) for that day at the employee's normal rate of pay. 
177.16     Sec. 22.  [BEFORE LABOR DAY SCHOOL START.] 
177.17     Subdivision 1.  [LAKE PARK; AUDUBON.] Notwithstanding 
177.18  Minnesota Statutes, section 126.12, subdivision 1, for the 
177.19  1997-1998 school year, independent school district Nos. 24, Lake 
177.20  Park, and 21, Audubon, may begin the elementary and secondary 
177.21  school year on August 25, 1997, in order for independent school 
177.22  district No. 24, Lake Park, to accommodate its building 
177.23  renovation schedule at the end of that school year. 
177.24     Subd. 2.  [NEW PRAGUE.] Notwithstanding Minnesota Statutes, 
177.25  section 126.12, subdivision 1, independent school district No. 
177.26  721, New Prague, may begin the 1997-1998 school year prior to 
177.27  Labor Day only by the number of days necessary to accommodate 
177.28  the district building and remodeling project. 
177.29     Subd. 3.  [WAYZATA.] Notwithstanding Minnesota Statutes, 
177.30  section 126.12, subdivision 1, independent school district No. 
177.31  284, Wayzata, may begin the 1997-1998 school year prior to Labor 
177.32  Day only by the number of days necessary to accommodate the 
177.33  transition into the new senior high school building. 
177.34     Subd. 4.  [ISLE.] Notwithstanding Minnesota Statutes, 
177.35  section 126.12, subdivision 1, for the 1997-1998 school year, 
177.36  independent school district No. 473, Isle, may begin the 
178.1   elementary and secondary school year on August 18, 1997, in 
178.2   order for the school district to complete its conversion of an 
178.3   existing elementary school to a K-12 facility before the 
178.4   beginning of the 1998-1999 school year. 
178.5      Subd. 5.  [COLUMBIA HEIGHTS.] Notwithstanding Minnesota 
178.6   Statutes, section 126.12, subdivision 1, independent school 
178.7   district No. 13, Columbia Heights, may begin the school year 
178.8   before Labor Day only by the number of days necessary to 
178.9   accommodate the district building construction and remodeling 
178.10  project. 
178.11     Sec. 23.  [FUND TRANSFERS.] 
178.12     Subdivision 1.  [HILL CITY.] (a) Notwithstanding Minnesota 
178.13  Statutes, section 121.912 or 121.9121, before June 30, 1997, 
178.14  independent school district No. 2, Hill City, may permanently 
178.15  transfer up to $55,000 from its general fund to its debt 
178.16  redemption fund for the purpose of repaying the principal and 
178.17  any interest owed on its outstanding debt service loans.  Any 
178.18  amount transferred but not used to repay the debt service loans 
178.19  must be applied to the district's outstanding capital loan 
178.20  balance. 
178.21     (b) The commissioner of children, families, and learning 
178.22  shall recompute the general education fund balance reduction for 
178.23  fiscal year 1997 for independent school district No. 2, Hill 
178.24  City.  For purposes of this reduction, the commissioner shall 
178.25  lower the district's net unappropriated operating balance as of 
178.26  June 30, 1996, by the amount that is transferred from the 
178.27  general fund to the debt redemption fund under paragraph (a). 
178.28     General education aid for fiscal year 1997 for independent 
178.29  school district No. 2, Hill City, must be adjusted according to 
178.30  this subdivision. 
178.31     The general education levy attributable to fiscal year 1997 
178.32  for independent school district No. 2, Hill City, must be 
178.33  adjusted according to this subdivision. 
178.34     Subd. 2.  [FERGUS FALLS.] Notwithstanding Minnesota 
178.35  Statutes, sections 121.912, 121.9121, and 475.61, subdivision 4, 
178.36  on June 30, 1997, independent school district No. 544, Fergus 
179.1   Falls, may permanently transfer up to $202,000 from its debt 
179.2   redemption fund to its building construction fund without making 
179.3   a levy reduction. 
179.4      Subd. 3.  [FOSSTON.] Notwithstanding Minnesota Statutes, 
179.5   sections 121.912, 121.9121, and 475.61, subdivision 4, on or 
179.6   before June 30, 1997, independent school district No. 601, 
179.7   Fosston, may permanently transfer up to $105,000 from the debt 
179.8   redemption fund to its building construction fund without making 
179.9   a levy reduction. 
179.10     Subd. 4.  [MEDFORD.] Notwithstanding Minnesota Statutes, 
179.11  sections 121.912 and 121.9121, independent school district No. 
179.12  763, Medford, may permanently transfer up to a total of $200,000 
179.13  by June 30, 1998, from reserve accounts in the general fund to 
179.14  the unreserved general fund.  The transfers may be made from 
179.15  either the bus purchase account or from the reserve for 
179.16  operating capital account.  Transfers from the bus purchase 
179.17  account may be made without making a levy reduction. 
179.18     Subd. 5.  [BELGRADE-BROOTEN-ELROSA.] Notwithstanding 
179.19  Minnesota Statutes, sections 121.912 and 121.9121, on June 30, 
179.20  1997, independent school district No. 2364, 
179.21  Belgrade-Brooten-Elrosa, may permanently transfer up to $250,000 
179.22  from the bus purchase account to its general fund. 
179.23     Sec. 24.  [TEACHER CONTRACTS; ARBITRATION.] 
179.24     Notwithstanding any law to the contrary, if the school 
179.25  board and the exclusive representative of teachers employed by 
179.26  independent school district No. 821, Menagha, have not agreed on 
179.27  an employment contract by July 1, 1997, and have not agreed to 
179.28  submit the matter to interest arbitration, the parties must 
179.29  submit the matter to the commissioner of mediation services.  
179.30  Each party must submit to the commissioner of mediation services 
179.31  its final position on all issues.  The arbitrator must consider 
179.32  the financial condition of the school district and select the 
179.33  total package of one side or the other in its entirety. 
179.34     Sec. 25.  [APPROPRIATIONS.] 
179.35     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES AND 
179.36  LEARNING.] The sums indicated in this section are appropriated 
180.1   from the general fund to the department of children, families, 
180.2   and learning for the fiscal years designated. 
180.3      Subd. 2.  [PARTNERS FOR QUALITY SCHOOL IMPROVEMENT.] For 
180.4   the school improvement pilot training program: 
180.5        $750,000       .....     1998 
180.6      Up to $30,000 may be used by the Minnesota academic 
180.7   excellence foundation to deliver training, coaching, technical 
180.8   assistance, and other services to selected districts.  Contracts 
180.9   shall be awarded to at least six districts, two each to rural, 
180.10  suburban, and urban school districts.  Any portion of the 
180.11  appropriation not expended in the first year shall not cancel 
180.12  but shall be available until June 30, 1999. 
180.13     Subd. 3.  [PREVENTING VIOLENCE THROUGH PLAYS AND 
180.14  WORKSHOPS.] For administering the grant program for preventing 
180.15  violence through developing plays, workshops, and educational 
180.16  resources: 
180.17       $75,000        .....     1998 
180.18       $75,000        .....     1999 
180.19     Subd. 4.  [CLASS SIZE PROJECT.] For a grant to independent 
180.20  school district No. 12, Centennial, for the class size project: 
180.21       $180,000       .....     1998 
180.22     This appropriation is available until June 30, 1999. 
180.23     Subd. 5.  [MODEL SCHOOL FOR CHRONIC TRUANTS.] For the model 
180.24  school for chronic truants located in the law enforcement center 
180.25  in Mankato: 
180.26       $40,000        .....     1998 
180.27       $40,000        .....     1999 
180.28     Subd. 6.  [AQUILA COMMUNITY TOGETHER PROJECT.] For a grant 
180.29  to independent school district No. 283, St. Louis Park, for the 
180.30  Aquila community together project: 
180.31       $30,000        .....     1998 
180.32       $30,000        .....     1999 
180.33     This appropriation must be matched from nonstate sources.  
180.34  This appropriation is available until June 30, 1999. 
180.35     Subd. 7.  [MINNESOTA INTERNATIONAL CENTER.] For the 
180.36  Minnesota International Center to encourage and foster contacts 
181.1   between Minnesota school children, their teachers, and people 
181.2   from other nations through international classroom connection: 
181.3        $40,000        .....     1998 
181.4        $40,000        .....     1999 
181.5      Subd. 8.  [COMMUNITY HEALTH CENTER.] For independent school 
181.6   district No. 99, Esko, to develop and operate a community health 
181.7   and physical fitness center offering district residents programs 
181.8   in community health and fitness, athletic training services, and 
181.9   physical therapy: 
181.10       $30,000        .....     1998 
181.11     This appropriation is contingent upon the school district 
181.12  obtaining a $30,000 in-kind contribution of physical fitness 
181.13  equipment from a private nonprofit source that is made 
181.14  permanently available to the community health and physical 
181.15  fitness center. 
181.16     Subd. 9.  [PROJECT PROTECT.] For a grant to the Grant 
181.17  Hussey Foundation for implementing of Project Protect: 
181.18       $50,000        .....     1998 
181.19     This appropriation is available until June 30, 1999. 
181.20     Subd. 10.  [CONSTRUCTIVE SCHOOL DISCIPLINE POLICIES.] For 
181.21  grants to develop, implement, and evaluate school discipline 
181.22  policies: 
181.23       $250,000       .....     1998 
181.24     Grant recipients may expend grant proceeds over a 
181.25  three-year period.  Of this amount, $13,500 is for performing an 
181.26  evaluation. 
181.27     Sec. 26.  [EFFECTIVE DATES.] 
181.28     (a) Section 13 is effective January 1, 1998. 
181.29     (b) Sections 16 and 21 to 23 are effective the day 
181.30  following final enactment. 
181.31                             ARTICLE 8
181.32                             LIBRARIES
181.33     Section 1.  Minnesota Statutes 1996, section 134.155, 
181.34  subdivision 2, is amended to read: 
181.35     Subd. 2.  [GRANTS.] The commissioner of children, families, 
181.36  and learning, in consultation with the multicultural advisory 
182.1   committee established in section 126.82, shall award grants for 
182.2   professional development programs to recruit and educate people 
182.3   of color in the field of library science or information 
182.4   management.  Grant applicants must be a public library 
182.5   jurisdiction with a growing minority population working in 
182.6   collaboration with an accredited institution of higher education 
182.7   with a library education program in the state of Minnesota. 
182.8      Sec. 2.  Minnesota Statutes 1996, section 134.155, 
182.9   subdivision 3, is amended to read: 
182.10     Subd. 3.  [PROGRAM REQUIREMENTS.] (a) A grant recipient 
182.11  shall recruit people of color to be library staff in public 
182.12  libraries and provide support in linking program participants 
182.13  with jobs in the recipient's library jurisdiction. 
182.14     (b) A grant recipient shall establish an advisory council 
182.15  composed of representatives of communities of color. 
182.16     (c) A grant recipient, with the assistance of the advisory 
182.17  council, may recruit high school students, undergraduate 
182.18  students or other persons; support them through the higher 
182.19  education application and admission process; advise them while 
182.20  enrolled; and link them with support resources in the college or 
182.21  university and the community.  
182.22     (d) A grant recipient shall award stipends to people of 
182.23  color enrolled in a library education program to help cover the 
182.24  costs of tuition, student fees, supplies, and books.  Stipend 
182.25  awards must be based upon a student's financial need and 
182.26  students must apply for any additional financial aid for which 
182.27  they are eligible to supplement this program.  No more than ten 
182.28  percent of the grant may be used for costs of administering the 
182.29  program.  Students must agree to work in the grantee library 
182.30  jurisdiction for at least two years after graduation if the 
182.31  student acquires a master's degree and at least three years 
182.32  after graduation if the student acquires both a bachelor's and a 
182.33  master's degree while participating in the program.  If no 
182.34  full-time position is available in the library jurisdiction, the 
182.35  student may fulfill the work requirement in another Minnesota 
182.36  public library.  
183.1      (e) The commissioner of children, families, and learning 
183.2   shall consider the following criteria in awarding grants:  
183.3      (1) whether the program is likely to increase the 
183.4   recruitment and retention of persons of color in librarianship; 
183.5      (2) whether grant recipients will establish or have a 
183.6   mentoring program for persons of color; and 
183.7      (3) whether grant recipients will provide a library 
183.8   internship for persons of color while participating in this 
183.9   program.  
183.10     Sec. 3.  Minnesota Statutes 1996, section 134.34, 
183.11  subdivision 4, is amended to read: 
183.12     Subd. 4.  A regional library basic system support grant 
183.13  shall not be made to a regional public library system for a 
183.14  participating city or county which decreases the dollar amount 
183.15  provided for support for operating purposes of public library 
183.16  service below the amount provided by it for the second preceding 
183.17  year.  This subdivision shall not apply to participating cities 
183.18  or counties where the adjusted net tax capacity of that city or 
183.19  county has decreased, if the dollar amount of the reduction in 
183.20  support is not greater than the dollar amount by which support 
183.21  would be decreased if the reduction in support were made in 
183.22  direct proportion to the decrease in adjusted net tax capacity. 
183.23     Sec. 4.  [LIBRARY PILOT PROJECT.] 
183.24     Subdivision 1.  [ESTABLISHMENT.] Notwithstanding law to the 
183.25  contrary and subject to approvals in subdivision 2, a public 
183.26  library may operate as a pilot project jointly with the school 
183.27  library at Nashwauk-Keewatin high school, located in the city of 
183.28  Nashwauk.  The public library is established to serve persons 
183.29  within the boundaries of independent school district No. 319, 
183.30  except the city of Keewatin. 
183.31     Subd. 2.  [APPROVALS.] Operation of the public library is 
183.32  contingent upon a resolution approved by the governing bodies of 
183.33  cities, towns, and unorganized townships within the geographical 
183.34  boundaries of independent school district No. 319, except for 
183.35  the city of Keewatin.  For the purposes of this subdivision, the 
183.36  Itasca county board is designated as the governing body for the 
184.1   unorganized townships. 
184.2      Subd. 3.  [BOARD; APPOINTMENTS.] The resolution in 
184.3   subdivision 2 shall provide for a library board of five members 
184.4   as follows:  two members appointed by the school board of 
184.5   independent school district No. 319, one member appointed by 
184.6   each town board located within independent school district No. 
184.7   319 boundaries, one member appointed by the council of the city 
184.8   of Nashwauk, and one member appointed by the Itasca county board 
184.9   to represent the unorganized towns within the school district 
184.10  territory. 
184.11     Subd. 4.  [BOARD TERMS; COMPENSATION.] The library board 
184.12  members shall serve for the term of the pilot program.  An 
184.13  appointing authority may remove for misconduct or neglect any 
184.14  member it has appointed to the board and may replace that member 
184.15  by appointment.  Board members shall receive no compensation for 
184.16  their services but may be reimbursed for actual and necessary 
184.17  travel expenses incurred in the discharge of library board 
184.18  duties and activities. 
184.19     Subd. 5.  [FUNDING.] For taxes payable in 1998 and 1999 
184.20  only, the library board may levy a tax in an amount up to 
184.21  $25,000 annually on property located within the boundaries of 
184.22  independent school district No. 319, except the city of 
184.23  Keewatin.  The Itasca county auditor shall collect the tax and 
184.24  distribute it to the library board.  The money may be used for 
184.25  library staff and for the purchase of library materials, 
184.26  including computer software.  The levy must also fund the amount 
184.27  necessary to receive bookmobile services from the Arrowhead 
184.28  regional library system.  For taxes payable in 1998 and 1999 
184.29  only, the county may not levy under Minnesota Statutes, section 
184.30  134.07, for the areas described in this section. 
184.31     Subd. 6.  [BUILDING.] The school district shall provide the 
184.32  physical space and costs associated with operating the library 
184.33  including, but not limited to, heat, light, telephone service, 
184.34  and maintenance. 
184.35     Subd. 7.  [ORGANIZATION.] Immediately after appointment, 
184.36  the library board shall organize by electing one of its number 
185.1   as president and one as secretary, and it may appoint other 
185.2   officers it finds necessary. 
185.3      Subd. 8.  [DUTIES.] The library board shall adopt bylaws 
185.4   and regulations for the library and for the conduct of its 
185.5   business as may be expedient and conformable to law.  It shall 
185.6   have exclusive control of the expenditure of all money collected 
185.7   for it.  The library board shall appoint a qualified library 
185.8   director and other staff, establish the compensation of 
185.9   employees, and remove any of them for cause.  The library board 
185.10  may contract with the school board, the regional library board, 
185.11  or the city in which the library is located to provide 
185.12  personnel, fiscal, or administrative services.  The contract 
185.13  shall state the personnel, fiscal, and administrative services 
185.14  and payments to be provided by each party. 
185.15     Subd. 9.  [CRITERIA.] The library shall meet all 
185.16  requirements in statutes and rules applicable to public 
185.17  libraries and school media centers.  A media supervisor licensed 
185.18  by the board of teaching may be the director of the library.  
185.19  Public parking, restrooms, drinking water, and other necessities 
185.20  shall be easily accessible to library patrons. 
185.21     Subd. 10.  [REPORT.] The library board shall report to the 
185.22  department of children, families, and learning by February 1, 
185.23  1999, about the costs of providing the library service and the 
185.24  number of patrons served. 
185.25     Subd. 11.  [EXPIRATION.] This section expires January 31, 
185.26  2000. 
185.27     Sec. 5.  [APPROPRIATIONS.] 
185.28     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
185.29  LEARNING.] The sums indicated in this section are appropriated 
185.30  from the general fund to the department of children, families, 
185.31  and learning for the fiscal years designated.  
185.32     Subd. 2.  [BASIC SUPPORT GRANTS.] For basic support grants 
185.33  according to Minnesota Statutes, sections 134.32 to 134.35: 
185.34       $10,069,000     .....     1998 
185.35       $10,319,000     .....     1999 
185.36     The 1998 appropriation includes $781,000 for 1997 and 
186.1   $9,288,000 for 1998.  
186.2      The 1999 appropriation includes $1,032,000 for 1998 and 
186.3   $9,287,000 for 1999.  
186.4      Subd. 3.  [LIBRARIANS OF COLOR.] For the librarians of 
186.5   color program according to Minnesota Statutes, section 134.155: 
186.6        $55,000     .....     1998
186.7        $55,000     .....     1999
186.8      Any balance in the first year does not cancel but is 
186.9   available in the second year. 
186.10     Subd. 4.  [CHILDREN'S LIBRARY SERVICES GRANTS.] For grants 
186.11  for collaborative programs to strengthen library services to 
186.12  children, young people, and their families: 
186.13       $100,000     .....     1998
186.14       $100,000     .....     1999
186.15     Any balance in the first year does not cancel but is 
186.16  available in the second year. 
186.17     Subd. 5.  [MULTICOUNTY, MULTITYPE LIBRARY SYSTEMS.] For 
186.18  grants according to Minnesota Statutes, sections 134.353 and 
186.19  134.354, to multicounty, multitype library systems: 
186.20       $865,000     .....     1998 
186.21       $903,000     .....     1999 
186.22     The 1998 appropriation includes $52,000 for 1997 and 
186.23  $813,000 for 1998.  
186.24     The 1999 appropriation includes $90,000 for 1998 and 
186.25  $813,000 for 1999. 
186.26     Sec. 6.  [REPEALER.] 
186.27     Minnesota Statutes 1996, section 134.34, subdivision 4a, is 
186.28  repealed. 
186.29     Sec. 7.  [EFFECTIVE DATE.] 
186.30     Section 4 is effective in the territory located within 
186.31  independent school district No. 319, except Keewatin, the day 
186.32  after compliance with Minnesota Statutes, section 645.021, 
186.33  subdivision 3, by the last of all the governing bodies for the 
186.34  cities, towns, and unorganized townships.  For the unorganized 
186.35  townships, the governing body is the Itasca county board. 
186.36                             ARTICLE 9
187.1                              TECHNOLOGY
187.2      Section 1.  Minnesota Statutes 1996, section 124.91, 
187.3   subdivision 5, is amended to read: 
187.4      Subd. 5.  [INTERACTIVE TELEVISION.] (a) A school district 
187.5   with its central administrative office located within economic 
187.6   development region one, two, three, four, five, six, seven, 
187.7   eight, nine, and ten may apply to the commissioner of children, 
187.8   families, and learning for ITV revenue up to the greater of .5 
187.9   percent of the adjusted net tax capacity of the district or 
187.10  $25,000 for.  Eligible interactive television expenditures 
187.11  include the construction, maintenance, and lease costs of an 
187.12  interactive television system for instructional purposes.  An 
187.13  eligible school district that has completed the construction of 
187.14  its interactive television system may also purchase computer 
187.15  hardware and software used primarily for instructional purposes 
187.16  and access to the Internet provided that its total expenditures 
187.17  for interactive television maintenance and lease costs and for 
187.18  computer hardware and software under this subdivision do not 
187.19  exceed its interactive television revenue for fiscal year 1998.  
187.20  The approval by the commissioner of children, families, and 
187.21  learning and the application procedures set forth in subdivision 
187.22  1 shall apply to the revenue in this subdivision.  In granting 
187.23  the approval, the commissioner must consider whether the 
187.24  district is maximizing efficiency through peak use and off-peak 
187.25  use pricing structures. 
187.26     (b) To obtain ITV revenue, a district may levy an amount 
187.27  not to exceed the district's ITV revenue times the lesser of one 
187.28  or the ratio of: 
187.29     (1) the quotient derived by dividing the adjusted net tax 
187.30  capacity of the district for the year before the year the levy 
187.31  is certified by the actual pupil units in the district for the 
187.32  year to which the levy is attributable; to 
187.33     (2) 100 percent of the equalizing factor as defined in 
187.34  section 124A.02, subdivision 8, for the year to which the levy 
187.35  is attributable. 
187.36     (c) A district's ITV aid is the difference between its ITV 
188.1   revenue and the ITV levy. 
188.2      (d) The revenue in the first year after reorganization for 
188.3   a district that has reorganized under section 122.22, 122.23, or 
188.4   122.241 to 122.247 shall be the greater of: 
188.5      (1) the revenue computed for the reorganized district under 
188.6   paragraph (a), or 
188.7      (2)(i) for two districts that reorganized, 75 percent of 
188.8   the revenue computed as if the districts involved in the 
188.9   reorganization were separate, or 
188.10     (ii) for three or more districts that reorganized, 50 
188.11  percent of the revenue computed as if the districts involved in 
188.12  the reorganization were separate. 
188.13     (e) The revenue in paragraph (d) is increased by the 
188.14  difference between the initial revenue and ITV lease costs for 
188.15  leases that had been entered into by the preexisting districts 
188.16  on the effective date of the consolidation or combination and 
188.17  with a term not exceeding ten years.  This increased revenue is 
188.18  only available for the remaining term of the lease.  However, in 
188.19  no case shall the revenue exceed the amount available had the 
188.20  preexisting districts received revenue separately. 
188.21     Sec. 2.  [124.98] [TECHNOLOGY PLAN.] 
188.22     A district must submit a technology plan to the 
188.23  commissioner of children, families, and learning.  The 
188.24  technology plan must include school building detail and provide 
188.25  the following:  
188.26     (1) a description of the computer knowledge and skills that 
188.27  will be taught to all pupils; 
188.28     (2) an explanation of how the school will make technology 
188.29  integral to curriculum, instruction, and assessment, helping 
188.30  teachers to individualize the learning process and integrate and 
188.31  administer the graduation standards; 
188.32     (3) a description of the academic content and skills that 
188.33  will be taught using electronic technology; 
188.34     (4) an inventory of existing hardware, software, and 
188.35  connectivity; 
188.36     (5) a list of the hardware and software investment plans; 
189.1      (6) a description of the role of private businesses, 
189.2   post-secondary education institutions, parents, the community, 
189.3   and other interested parties in developing and supporting the 
189.4   plan; 
189.5      (7) an explanation of how the school will work 
189.6   collaboratively with the private sector libraries and other 
189.7   public agencies and institutions of higher education to design, 
189.8   develop, and distribute interactive multimedia instructional 
189.9   materials over local- and wide-area networks, including the 
189.10  learning network and the Internet; 
189.11     (8) an inventory of staff technology skills; 
189.12     (9) objectives and plans for ongoing staff training to 
189.13  increase and integrate the use of technology into the classroom; 
189.14     (10) a plan for the accessibility needs of special 
189.15  students; and 
189.16     (11) plans for ongoing system support and development. 
189.17     The commissioner shall review the technology plan and 
189.18  determine that it complies with the goal of statewide 
189.19  interoperability of technology investments.  A district must 
189.20  post its technology plan on the Internet so that it is 
189.21  accessible to other school districts. 
189.22     Sec. 3.  Laws 1995, First Special Session chapter 3, 
189.23  article 12, section 7, subdivision 1, is amended to read: 
189.24     Subdivision 1.  [STATE COUNCIL MEMBERSHIP.] The membership 
189.25  of the Minnesota education telecommunications council 
189.26  established in Laws 1993, First Special Session chapter 2, is 
189.27  expanded to include representatives of elementary and secondary 
189.28  education.  The membership shall consist of three 
189.29  representatives from the University of Minnesota; three 
189.30  representatives of the board of trustees for Minnesota state 
189.31  colleges and universities; one representative of the higher 
189.32  education services offices; one representative appointed by the 
189.33  private college council; eight representatives selected by the 
189.34  commissioner of education children, families, and learning, at 
189.35  least one of which must come from each of the six higher 
189.36  education telecommunication regions; a representative from the 
190.1   information policy office; one member two members each from the 
190.2   senate and the house of representatives selected by the 
190.3   subcommittee on committees of the committee on rules and 
190.4   administration of the senate and the speaker of the house, one 
190.5   member from each body must be a member of the minority party; 
190.6   and three representatives of libraries, one representing 
190.7   regional public libraries, one representing multitype libraries, 
190.8   and one representing community libraries, selected by the 
190.9   governor.  The council shall: 
190.10     (1) develop a statewide vision and plans for the use of 
190.11  distance learning technologies and provide leadership in 
190.12  implementing the use of such technologies; 
190.13     (2) recommend to the commissioner and the legislature by 
190.14  December 15, 1996, a plan for long-term governance and a 
190.15  proposed structure for statewide and regional 
190.16  telecommunications; 
190.17     (3) recommend educational policy relating to 
190.18  telecommunications; 
190.19     (4) determine priorities for use; 
190.20     (5) oversee coordination of networks for post-secondary 
190.21  campuses, K-12 education, and regional and community libraries; 
190.22     (6) review application for telecommunications access grants 
190.23  under Minnesota Statutes, section 124C.74 and recommend to the 
190.24  department grants for funding; and 
190.25     (7) determine priorities for grant funding proposals; 
190.26     (8) establish technical standards for all Minnesota schools 
190.27  and libraries to ensure interoperability of hardware, software, 
190.28  and telecommunications which shall be compatible with national 
190.29  and international standards and which allow an open architecture 
190.30  of computer systems and technology systems to be considered and 
190.31  facilitate the communication of information and data among 
190.32  public sector agencies and jurisdictions, private sector 
190.33  organizations, and the general public; and 
190.34     (9) develop technical standards for the operation and 
190.35  maintenance of all Minnesota interactive television cooperatives.
190.36     The council shall consult with representatives of the 
191.1   telecommunication industry in implementing this section.  
191.2      Sec. 4.  Laws 1996, chapter 412, article 12, section 8, is 
191.3   amended to read: 
191.4      Sec. 8.  [TECHNOLOGY; TECHNICAL ASSISTANCE.] 
191.5      The commissioner of the department of children, families, 
191.6   and learning shall work with interested and involved 
191.7   organizations including, but not limited to, representatives of 
191.8   school districts, service cooperatives, TIES, education 
191.9   districts, higher education institutions, public libraries, and 
191.10  other government agencies to develop a technology planning guide 
191.11  for school districts.  The department must distribute the guides 
191.12  to school districts and hold regional meetings to discuss the 
191.13  planning process.  In making technology-related funding 
191.14  decisions, the commissioner may consider a school district's 
191.15  technology plan in making technology-related funding 
191.16  decisions and the degree to which it meets the technical 
191.17  standards established by the Minnesota education 
191.18  telecommunication council under Laws 1995, First Special Session 
191.19  chapter 3, article 12, section 7.  
191.20     Sec. 5.  Laws 1996, chapter 412, article 12, section 11, is 
191.21  amended to read:  
191.22     Sec. 11.  [COOPERATIVE PURCHASING.] 
191.23     The department of children, families, and learning shall 
191.24  work with the department of administration to make available to 
191.25  public libraries, public and nonpublic schools, political 
191.26  subdivisions and state agencies, state level contracts from 
191.27  multiple sources, including manufacturers and software 
191.28  publishers, for the purchase or lease of instructional and 
191.29  administrative software, computers, video, and network hardware. 
191.30  Notwithstanding section 471.345, public and nonpublic schools, 
191.31  public libraries, and political subdivisions may participate 
191.32  in the contracts a negotiated or a sealed bid contract legally 
191.33  entered into by the state of Minnesota, if it meets their 
191.34  technology purchasing needs. 
191.35     Sec. 6.  [TECHNOLOGY GRANT AWARD.] 
191.36     The commissioner shall award a one-time technology grant to 
192.1   school districts for any purpose that is consistent with the 
192.2   district's technology plan under section 2.  The commissioner 
192.3   may establish criteria for awarding grants under this section.  
192.4   A school district is eligible for a grant that is equal to the 
192.5   greater of: 
192.6      (1) $30 per fund balance pupil unit; or 
192.7      (2) the lesser of $25,000 or $80 per fund balance pupil 
192.8   unit. 
192.9      Sec. 7.  [COMPETITIVE TECHNOLOGY INVESTMENT GRANTS.] 
192.10     By August 15, 1997, the department shall establish 
192.11  guidelines and an application process to make technology grants 
192.12  to districts that show demonstrated need in their technology 
192.13  plan.  Districts must use the money to provide technology 
192.14  investments at school sites, adult basic education sites, or at 
192.15  the residential academies consistent with the district's 
192.16  technology plan under section 2. 
192.17     Eligible applicants must, at a minimum, describe how the 
192.18  proposed project is consistent with the district's technology 
192.19  plan, identify the specific needs that the project will address, 
192.20  define the project's expected outcomes, and provide the source, 
192.21  type, and amounts of all matching funds.  To be eligible for a 
192.22  technology investment grant, a school district must:  
192.23     (1) have each dollar of grant money matched by at least $1 
192.24  of school district money, nonstate or nonschool district money, 
192.25  or in-kind contributions; and 
192.26     (2) maintain any ongoing costs of support for the 
192.27  technology project after the initial funding under the grant 
192.28  program.  Districts may count toward their match any eligible 
192.29  expenditures made from July 1, 1996. 
192.30     Sec. 8.  [LEARNING RESOURCE NETWORK.] 
192.31     The commissioner shall contract with multiple vendors to 
192.32  develop a learning resource network that expands the electronic 
192.33  curriculum library under Laws 1996, chapter 412, article 12, 
192.34  section 15, subdivision 4, paragraph (a), and to support the 
192.35  statewide implementation of the graduation standards. 
192.36     The learning resource network must be made available to 
193.1   public schools over the learning network established through 
193.2   telecommunication access grants under Minnesota Statutes, 
193.3   section 124C.74.  Products and services available on the 
193.4   learning resource network must be integrated and provide methods 
193.5   to align curriculum with the graduation standards, and to assist 
193.6   teachers in curriculum delivery and integration, student 
193.7   assessment, and classroom recordkeeping.  The commissioner shall 
193.8   also identify ways to make the learning resource network 
193.9   available to students and parents to enhance the learning 
193.10  experience.  
193.11     The commissioner shall consult with representatives from 
193.12  the public and private sector in the development, use, and 
193.13  operation of the learning resource network.  The commissioner, 
193.14  as part of the learning network, shall compile a list of vendors 
193.15  of software that can be used to support implementation of the 
193.16  graduation standards.  The commissioner shall also identify 
193.17  district-initiated projects and facilitate collaboration between 
193.18  districts to develop and adapt electronic teaching and 
193.19  administering tools. 
193.20     Sec. 9.  [GRANTS TO ANALYZE THE NUTRITIONAL COMPONENTS OF 
193.21  SCHOOL MEALS.] 
193.22     A grant program for fiscal year 1998 is established to 
193.23  allow school districts to purchase a computer, monitor, printer, 
193.24  or software to analyze the nutritional components of school 
193.25  meals, ensure districts' compliance with federal dietary 
193.26  guidelines applicable to school meals, and improve districts' 
193.27  management of meal costs, meal program tracking, and government 
193.28  reporting of meals served.  To obtain a grant, a district must 
193.29  submit an application to the commissioner of children, families, 
193.30  and learning in the form and manner the commissioner 
193.31  prescribes.  The applicant, in the application, must describe: 
193.32     (1) the computer hardware and software the applicant 
193.33  requires to comply with the terms of the grant program; 
193.34     (2) how the applicant will analyze the nutritional 
193.35  components of school meals; 
193.36     (3) how the applicant will use the analysis to ensure its 
194.1   compliance with federal dietary guidelines applicable to school 
194.2   meals; 
194.3      (4) how the applicant will improve its management of meal 
194.4   costs, meal program tracking, and government reporting of meals; 
194.5   and 
194.6      (5) the source of a $1 local match of funding or in-kind 
194.7   contributions the applicant will receive for every $2 of state 
194.8   funding the applicant receives. 
194.9      The commissioner shall determine the amount of each grant 
194.10  based upon the demonstrated needs of the applicant up to a 
194.11  maximum of $2,000 per grant.  The commissioner shall award 
194.12  grants on a first-come, first-served basis to all school 
194.13  districts that meet the requirements of this section until 
194.14  funding under this section is expended. 
194.15     Sec. 10.  [OPEN ENROLLMENT TECHNOLOGY PROJECT.] 
194.16     The commissioner of children, families, and learning shall 
194.17  establish an open enrollment year-round project which 
194.18  demonstrates the use of technology as the primary instructional 
194.19  delivery system for elementary and secondary students.  The 
194.20  purposes of this program include: 
194.21     (1) to allow for open enrollment of students via 
194.22  technology; 
194.23     (2) to utilize on-line education resources as an 
194.24  alternative to the traditional classroom setting; 
194.25     (3) to provide alternative instructional tools for home 
194.26  school families; 
194.27     (4) to implement a variety of electronic curriculum 
194.28  packages which support distance learning; 
194.29     (5) to support a performance-based system of achievement; 
194.30     (6) to use individual education learning plans to prescribe 
194.31  learning activities and track student performance in an open 
194.32  enrollment setting; 
194.33     (7) to evaluate technology as a distance education tool, 
194.34  disseminate information on the project, and report on the 
194.35  effectiveness of technology as a means of open enrollment; and 
194.36     (8) to advance opportunities for year-round learning. 
195.1      Sec. 11.  [LIBRARY SITE TECHNOLOGY GRANTS.] 
195.2      Subdivision 1.  [ESTABLISHMENT; PURPOSE.] A matching grant 
195.3   program is established to fund library site technology grants.  
195.4   The grants are available to public or school library sites or to 
195.5   a partnership of library sites.  Recipients shall use grant 
195.6   proceeds for technology projects that are consistent with 
195.7   technology plans and the LDS/MINITEX Joint Standards and 
195.8   Guidelines for Automated Library Systems.  The grants shall fund 
195.9   projects to expand and integrate technology into library 
195.10  operations and increase public access to technology by: 
195.11     (1) converting school media center bibliographic records 
195.12  into a standard format; 
195.13     (2) loading school library site media records into 
195.14  regional, public, or multicounty, multitype library systems or 
195.15  other appropriate library networks; 
195.16     (3) upgrading and increasing database development; and 
195.17     (4) improving public library staff use of networked library 
195.18  resources at library sites throughout the regional multitype 
195.19  cooperatives. 
195.20     Subd. 2.  [APPLICATION; ELIGIBILITY.] The commissioner 
195.21  shall establish a process and application forms for library 
195.22  sites to apply for grant funds.  Libraries must describe how 
195.23  they will cooperate with schools.  An applicant must submit a 
195.24  technology plan with the application.  Eligible applicants must, 
195.25  at a minimum, describe how the proposed project is consistent 
195.26  with the technology plan; describe how it ensures 
195.27  interoperability of hardware, software, and telecommunication; 
195.28  identify the specific site needs that the project will address; 
195.29  define the project's expected outcomes; and provide the source, 
195.30  type, and amounts of all matching funds.  To be eligible for a 
195.31  site-based technology learning grant, a library site must: 
195.32     (1) be a multicounty, multitype library system as defined 
195.33  in Minnesota Statutes, section 134.001, subdivision 6; members 
195.34  of a multicounty, multitype library system receiving public 
195.35  funds, including public libraries as defined in Minnesota 
195.36  Statutes, section 134.001, subdivision 2; regional public 
196.1   library systems, as defined in Minnesota Statutes, section 
196.2   134.001, subdivision 4; a school library; or a partnership of 
196.3   public and school libraries; 
196.4      (2) have each dollar of grant money matched by at least $1 
196.5   of library site money, including in-kind contributions; 
196.6      (3) agree to disseminate and share information about its 
196.7   project; 
196.8      (4) provide a benefit to the greater community; and 
196.9      (5) maintain any ongoing costs of support for the 
196.10  technology project after the initial funding under the grant 
196.11  program. 
196.12     Subd. 3.  [GRANT AWARD.] The commissioner shall establish 
196.13  criteria for awarding grants under this section.  All grant 
196.14  awards shall be made directly to the multicounty, multitype 
196.15  library systems or to a partnership of libraries that belong to 
196.16  a multitype system.  The commissioner shall consult with 
196.17  representatives from the library planning task force and the 
196.18  Minnesota education telecommunications council in establishing 
196.19  criteria for the library site technology grants. 
196.20     Sec. 12.  [DATABASE ACCESS PROGRAM FOR PUBLIC LIBRARIES AND 
196.21  SCHOOL MEDIA CENTERS.] 
196.22     Subdivision 1.  [ESTABLISHMENT.] The commissioner shall 
196.23  establish a program to provide statewide licenses to commercial 
196.24  electronic databases of periodicals, encyclopedias, and 
196.25  associated reference materials for school media centers and 
196.26  public libraries.  The commissioner shall solicit proposals for 
196.27  access licenses to such databases from commercial vendors and 
196.28  responses to those proposals shall be evaluated by staff of the 
196.29  office of library development and service, Minitex staff, and a 
196.30  representative panel of school media specialists and public 
196.31  librarians. 
196.32     Subd. 2.  [ELIGIBILITY.] Access to the selected databases 
196.33  shall be made available to any school media center that is a 
196.34  member of a multicounty, multitype library system as defined in 
196.35  Minnesota Statutes, section 134.001, subdivision 6, or any 
196.36  public library system as defined in Minnesota Statutes, section 
197.1   134.001, subdivision 2 or 4.  Any user of those libraries with 
197.2   appropriate authentication may have access to the databases from 
197.3   a remote site. 
197.4      Sec. 13.  [LEARNING ACADEMY; COMPUTER INCENTIVE PROGRAM.] 
197.5      In order to promote the use of technology and its 
197.6   integration into all classroom activities including 
197.7   implementation of the graduation standards, integration of 
197.8   curriculum, and recordkeeping, the commissioner of children, 
197.9   families, and learning shall establish a process to develop 
197.10  standards and certify training for an incentive program to 
197.11  provide computers for teachers.  A district that chooses to 
197.12  participate in the incentive program must share in the cost of 
197.13  providing computers to eligible teachers.  A participating 
197.14  district shall provide a computer to teachers who complete the 
197.15  requirements under this section.  The teacher may choose any 
197.16  computer up to a maximum value established by the department. 
197.17     The district shall own computers purchased under the 
197.18  learning academy.  The computer may be used by the teacher 
197.19  during school and nonschool hours.  The commissioner, in 
197.20  consultation with the office of technology and representatives 
197.21  of education and the private sector, shall establish the 
197.22  requirement for participation including training standards, 
197.23  training protocols and courses, and minimum competency or number 
197.24  of hours of training.  After consulting with districts on the 
197.25  types and numbers of computers and standard software to be 
197.26  installed on the computers, the commissioner, in cooperation 
197.27  with the department of administration and the office of 
197.28  technology, shall negotiate with vendors to purchase computers 
197.29  for eligible teachers.  The cost should reflect the state's 
197.30  quantity purchases. 
197.31     Sec. 14.  [RETOOLING INSTRUCTION FOR PUBLIC LIBRARY STAFF.] 
197.32     Subdivision 1.  [RETOOLING INSTRUCTION PROGRAM.] In order 
197.33  to ensure that citizens throughout Minnesota have effective 
197.34  access to resources now available through technological 
197.35  innovations, including the Internet, massive databases in 
197.36  electronic format, and high-speed data communication systems, 
198.1   the commissioner of children, families, and learning shall 
198.2   facilitate the design and implementation of a program to upgrade 
198.3   the skills of public library staff throughout the state.  Not 
198.4   later than June 30, 1999, the commissioner shall complete at 
198.5   least five major elements in a program to upgrade public library 
198.6   staff skills and capabilities.  The commissioner may conduct or 
198.7   contract for:  
198.8      (1) the preparation and development of a curriculum for 
198.9   public library staff skill building; 
198.10     (2) a pilot project to determine the benefits and 
198.11  instructional costs for public library staff skill building; 
198.12     (3) the teaching of courses or workshops for existing 
198.13  public library staff; 
198.14     (4) implementation of a reliable system for tracking course 
198.15  and workshop attendance, including provisions for appropriate 
198.16  certification of attendees, and for making recognition of staff 
198.17  achievements portable from one public library system to another; 
198.18  and 
198.19     (5) a pilot project to evaluate cost-effective alternative 
198.20  distant learning technologies and methodologies. 
198.21     Subd. 2.  [REPORT AND RECOMMENDATIONS.] The commissioner of 
198.22  children, families, and learning shall conduct or contract for a 
198.23  report to the legislature, to be delivered not later than 
198.24  February 15, 2000, concerning the costs and accomplishments of 
198.25  the project under subdivision 1 and providing recommendations 
198.26  for additional measures to provide excellent information 
198.27  services to the citizens of Minnesota. 
198.28     Sec. 15.  [REFURBISHED COMPUTER PROGRAM.] 
198.29     The commissioner of children, families, and learning shall 
198.30  establish a program to refurbish donated computers to increase 
198.31  the number of multimedia computers in Minnesota schools.  In 
198.32  establishing the program, the commissioner shall work with the 
198.33  commissioners of administration and corrections and the office 
198.34  of technology.  The program must be implemented in conjunction 
198.35  with the education technology improvement clearinghouses under 
198.36  Laws 1996, chapter 412, article 12, section 1, and in 
199.1   partnership with business, nonprofit organizations, and 
199.2   institutions of higher education.  The program must: 
199.3      (1) establish the number of multimedia computers to be 
199.4   refurbished by July 1, 2000; 
199.5      (2) establish partnerships with nonprofit or business 
199.6   organizations to solicit donations; 
199.7      (3) develop an agreement with the commissioner of 
199.8   corrections to facilitate computers in Minnesota correctional 
199.9   institutions with procedures to minimize security risks; 
199.10     (4) promote the program to school districts; and 
199.11     (5) develop plans to equitably distribute computers to 
199.12  districts and ensure proper recycling of unsuitable equipment. 
199.13     Sec. 16.  [APPROPRIATIONS.] 
199.14     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
199.15  LEARNING.] The sums indicated in this section are appropriated, 
199.16  unless otherwise indicated, from the general fund to the 
199.17  department of children, families, and learning for the fiscal 
199.18  years designated. 
199.19     Subd. 2.  [TELECOMMUNICATION ACCESS GRANTS.] For one-time 
199.20  grants to school districts and regional public library systems 
199.21  to establish connections according to Minnesota Statutes, 
199.22  section 124C.74:  
199.23       $ 9,000,000     .....     1998 
199.24       $10,000,000     .....     1999 
199.25     Any balance in the first year does not cancel but is 
199.26  available in the second year. 
199.27     Before a district can receive a grant under this 
199.28  subdivision in fiscal year 1999, the district must submit, to 
199.29  the commissioner, evidence that it has pursued all possible 
199.30  funding options, including ITV revenue under Minnesota Statutes, 
199.31  section 124.91, subdivision 5.  Notwithstanding Minnesota 
199.32  Statutes, section 124.91, subdivision 5, ITV revenue may also be 
199.33  used for the purposes of the telecommunication access grants 
199.34  under Minnesota Statutes, section 124C.74.  $9,000,000 of this 
199.35  amount shall not be included as part of the base for fiscal year 
199.36  2000-2001. 
200.1      Subd. 3.  [LEARNING ACADEMY.] For learning academies under 
200.2   section 13: 
200.3        $2,000,000     .....     1998 
200.4      This appropriation is available until expended. 
200.5      The commissioner shall use these funds to share in the 
200.6   costs of the computer incentives under section 13. 
200.7      Subd. 4.  [LEARNING RESOURCE NETWORK.] For the learning 
200.8   resource network in section 8: 
200.9        $200,000       .....     1998
200.10     This appropriation is available until June 30, 1999.  These 
200.11  funds are a one-time appropriation. 
200.12     The commissioner shall be responsible for the initial cost 
200.13  of establishing the learning resource network.  A school site 
200.14  choosing to be part of the network shall be responsible for the 
200.15  ongoing costs. 
200.16     Subd. 5.  [TECHNOLOGY GRANT AWARD.] For a grant award to 
200.17  districts under section 6: 
200.18       $30,000,000    .....     1998 
200.19     This appropriation is available until June 30, 1999.  These 
200.20  funds are a one-time appropriation. 
200.21     Subd. 6.  [SCHOOL MEALS.] For technology grants to analyze 
200.22  the nutritional components of school meals under section 9: 
200.23       $200,000       .....     1998 
200.24     Subd. 7.  [OPEN ENROLLMENT TECHNOLOGY PROJECT.] For the 
200.25  open enrollment project under section 10: 
200.26       $100,000       .....     1998 
200.27       $100,000       .....     1999 
200.28     Any balance in the first year does not cancel but is 
200.29  available for the second year.  This appropriation is for a 
200.30  grant to a learning site.  The site shall be chosen by the 
200.31  commissioner of children, families, and learning and must be one 
200.32  of the rural sites funded by the year-round school/extended week 
200.33  or day pilot program created under Laws 1995, First Special 
200.34  Session chapter 3, article 7, section 4, as amended by Laws 
200.35  1996, chapter 412, article 7, section 13. 
200.36     Subd. 8.  [LIBRARY TECHNOLOGY SITE GRANT PROGRAM.] For 
201.1   one-time library site grants under section 11: 
201.2        $2,000,000     .....     1998 
201.3      This appropriation is available until June 30, 1999. 
201.4      Subd. 9.  [TECHNOLOGY ENHANCEMENT; RESIDENTIAL ACADEMIES.] 
201.5   For technology improvements at the Minnesota state academies: 
201.6        $500,000       .....     1998 
201.7        $500,000       .....     1999 
201.8      The appropriation is for implementing the Minnesota state 
201.9   academies' technology plan including completion of a local area 
201.10  network; installation of ten technology laboratories, classroom 
201.11  work stations, and additional hardware and software; purchases 
201.12  of large screen monitors, speech synthesizers, screen reader 
201.13  software, and braille display; and technology support and 
201.14  maintenance to assist the academies in fulfilling their 
201.15  educational mission. 
201.16     Any amount remaining after the first year does not cancel 
201.17  but is available in the second year. 
201.18     Subd. 10.  [RETOOLING.] For retooling instruction for 
201.19  public library staff and reporting requirements under section 14:
201.20       $100,000       .....     1998 
201.21     Subd. 11.  [REGIONAL MANAGEMENT INFORMATION CENTERS.] The 
201.22  sum indicated in this subdivision is appropriated from the 
201.23  general fund to the office of technology for the fiscal year 
201.24  designated.  For grants to regional management information 
201.25  centers under Minnesota Statutes, section 121.935, for the 
201.26  transition period in their technology uses and consolidation of 
201.27  processing needs: 
201.28       $978,000       .....     1998 
201.29     This appropriation is available until June 30, 1999. 
201.30     Subd. 12.  [UNREIMBURSED TELECOMMUNICATIONS COSTS.] For a 
201.31  grant to the northeast Minnesota telecommunications access grant 
201.32  governance board: 
201.33       $124,000       .....     1998 
201.34     The grant is to fund interconnectivity costs incurred by 
201.35  school districts and libraries that were not included in the 
201.36  telecommunication access grant awarded to the region. 
202.1      Subd. 13.  [INTERACTIVE TELEVISION (ITV) AID.] For 
202.2   interactive television (ITV) aid under Minnesota Statutes, 
202.3   section 124.91, subdivision 5: 
202.4        $4,030,000     .....     1998 
202.5        $5,942,000     .....     1999 
202.6      The 1998 appropriation includes $384,000 for 1997 and 
202.7   $3,646,000 for 1998. 
202.8      The 1999 appropriation includes $405,000 for 1998 and 
202.9   $5,537,000 for 1999. 
202.10     Subd. 14.  [TECHNOLOGY INVESTMENT GRANTS.] For grants to 
202.11  school districts for the purposes of section 7: 
202.12       $20,000,000    .....     1998 
202.13     Of this amount, up to $6,000,000 is for the multimedia 
202.14  computer refurbishment program under section 15. 
202.15     The commissioner may use all or part of this appropriation 
202.16  for an agreement with the commissioner of corrections to 
202.17  establish refurbishment centers at one or more correctional 
202.18  institutions. 
202.19     This appropriation is available until expended.  These 
202.20  funds are a one-time appropriation. 
202.21     Subd. 15.  [RED ROCK CENTRAL REMOTE LEARNER GRANT.] For a 
202.22  grant to independent school district Nos. 178, Storden-Jeffers; 
202.23  633, Lamberton; and 638, Sanborn, to establish a high school 
202.24  program for remote access for learners to the districts' 
202.25  educational network of data and training, commercial access for 
202.26  youth entrepreneurship, and commercial access for school-to-work 
202.27  programs: 
202.28       $75,000        .....     1998 
202.29     This appropriation may be used for start-up and operation 
202.30  costs. 
202.31     Subd. 16.  [DATABASE ACCESS.] For the purposes of section 
202.32  13: 
202.33       $1,000,000     .....     1998
202.34     This appropriation is available until June 30, 1999.  These 
202.35  funds are a one-time appropriation. 
202.36     Sec. 17.  [REPEALER.] 
203.1      Minnesota Statutes 1996, section 134.46, is repealed.  Laws 
203.2   1995, First Special Session chapter 3, article 12, section 8, is 
203.3   repealed. 
203.4                              ARTICLE 10
203.5                            STATE AGENCIES
203.6      Section 1.  [APPROPRIATIONS; DEPARTMENT OF CHILDREN, 
203.7   FAMILIES, AND LEARNING.] 
203.8      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
203.9   LEARNING.] The sums indicated in this section are appropriated 
203.10  from the general fund to the department of children, families, 
203.11  and learning for the fiscal years designated. 
203.12     Subd. 2.  [DEPARTMENT.] For the department of children, 
203.13  families, and learning: 
203.14       $24,389,000       .....      1998
203.15       $24,007,000       .....      1999
203.16     (a) Any balance in the first year does not cancel but is 
203.17  available in the second year. 
203.18     (b) $21,000 each year is from the trunk highway fund. 
203.19     (c) $622,000 in 1998 and $627,000 in 1999 is for the 
203.20  academic excellence foundation. 
203.21     Up to $50,000 each year is contingent upon the match of $1 
203.22  in the previous year from private sources consisting of either 
203.23  direct monetary contributions or in-kind contributions of 
203.24  related goods or services, for each $1 of the appropriation.  
203.25  The commissioner of children, families, and learning must 
203.26  certify receipt of the money or documentation for the private 
203.27  matching funds or in-kind contributions.  The unencumbered 
203.28  balance from the amount actually appropriated from the 
203.29  contingent amount in 1998 does not cancel but is available in 
203.30  1999.  The amount carried forward must not be used to establish 
203.31  a larger annual base appropriation for later fiscal years. 
203.32     (d) $207,000 in 1998 and $210,000 in 1999 is for the state 
203.33  board of education. 
203.34     (e) $230,000 in 1998 and $234,000 in 1999 is for the board 
203.35  of teaching. 
203.36     (f) $775,000 each year is for educational effectiveness 
204.1   programs according to Minnesota Statutes, sections 121.602 and 
204.2   121.608. 
204.3      (g) $60,000 each year is for contracting with the state 
204.4   fire marshal to provide the services required according to 
204.5   Minnesota Statutes, section 121.1502. 
204.6      (h) $400,000 each year is for health and safety management 
204.7   assistance contracts under Minnesota Statutes, section 124.83. 
204.8      (i) The expenditures of federal grants and aids as shown in 
204.9   the biennial budget document and its supplements are approved 
204.10  and appropriated and shall be spent as indicated. 
204.11     (j) The commissioner shall maintain no more than five total 
204.12  complement in the categories of commissioner, deputy 
204.13  commissioner, assistant commissioner, assistant to the 
204.14  commissioner, and executive assistant. 
204.15     The department of children, families, and learning may 
204.16  establish full-time, part-time, or seasonal positions as 
204.17  necessary to carry out assigned responsibilities and missions.  
204.18  Actual employment levels are limited by the availability of 
204.19  state funds appropriated for salaries, benefits, and agency 
204.20  operations or funds available from other sources for such 
204.21  purposes. 
204.22     (k) The department of children, families, and learning 
204.23  shall develop a performance report on the quality of its 
204.24  programs and services.  The report must be consistent with the 
204.25  process specified in Minnesota Statutes, sections 15.90 to 
204.26  15.92.  The goals, objectives, and measures of this report must 
204.27  be developed in cooperation with the chairs of the finance 
204.28  divisions of the education committees of the house of 
204.29  representatives and senate, the department of finance, and the 
204.30  office of legislative auditor.  The report must include data to 
204.31  indicate the progress of the department in meeting its goals and 
204.32  objectives. 
204.33     The department of children, families, and learning must 
204.34  present a biennial report on the quality and performance of key 
204.35  education programs in Minnesota's public early childhood, 
204.36  elementary, middle, and secondary education programs.  To the 
205.1   extent possible, the plan must be consistent with Minnesota 
205.2   Statutes, sections 15.90 to 15.92.  The department must consult 
205.3   with the chairs of the finance divisions of the education 
205.4   committees of the house of representatives and senate, the 
205.5   department of finance, and the office of legislative auditor in 
205.6   developing this plan. 
205.7      (l) $188,000 each year is appropriated from the special 
205.8   revenue fund for the graduation rule.  The department 
205.9   appropriation is to be used to fund continued assessment and 
205.10  standards development and piloting; to broaden public 
205.11  understanding through communication; to continue development of 
205.12  learning benchmarks; for ongoing statewide assessment efforts; 
205.13  to develop system performance standards; and to provide 
205.14  technical assistance to schools throughout the state.  The 
205.15  appropriation from the special revenue fund is to be used for 
205.16  appropriate development efforts in health-related standards and 
205.17  assessments.  The commissioner may transfer any portion of this 
205.18  appropriation not needed for the purpose of this paragraph to 
205.19  the Minnesota highway safety center at St. Cloud University.  
205.20  Any amount of this appropriation does not cancel and shall be 
205.21  carried forward to the following fiscal year.  Notwithstanding 
205.22  any law to the contrary, the commissioner may contract for 
205.23  national expertise and related services in each of these 
205.24  development areas.  Notwithstanding Minnesota Statutes, section 
205.25  15.53, subdivision 2, the commissioner of children, families, 
205.26  and learning may contract with a school district for a period no 
205.27  longer than five consecutive years for the services of an 
205.28  educator to work in the development, implementation, or both, of 
205.29  the graduation rule.  The commissioner may contract for services 
205.30  and expertise as necessary for development and implementation of 
205.31  the graduation standards.  Notwithstanding any law to the 
205.32  contrary, the contracts are not subject to the contract 
205.33  certification procedures of the commissioner of administration 
205.34  or of Minnesota Statutes, chapter 16B, and are not subject to or 
205.35  included in any spending limitations on contracts. 
205.36     (m) $50,000 is to ensure compliance with state and federal 
206.1   laws prohibiting discrimination because of race, religion, or 
206.2   sex.  The department shall use the appropriation to provide 
206.3   state-level leadership on equal education opportunities which 
206.4   promote elimination of discriminatory practices in the areas of 
206.5   race, religion, and sex in public schools and public educational 
206.6   agencies under its general supervision and on activities 
206.7   including, at least, compliance monitoring and voluntary 
206.8   compliance when local school district deficiencies are found. 
206.9      (n) $500,000 each year is for department support of 
206.10  technology initiatives and growing data and information 
206.11  processing needs. 
206.12     Sec. 2.  [APPROPRIATIONS; LOLA AND RUDY PERPICH MINNESOTA 
206.13  CENTER FOR ARTS EDUCATION.] 
206.14     The sums indicated in this section are appropriated from 
206.15  the general fund to the center for arts education for the fiscal 
206.16  years designated: 
206.17       $5,541,000     .....     1998
206.18       $6,054,000     .....     1999
206.19     Of the fiscal year 1998 appropriation, $154,000 is to fund 
206.20  artist and arts organization participation in the education 
206.21  residency and education technology projects, $75,000 is for 
206.22  school support for the residency project, and $121,000 is for 
206.23  further development of the partners:  arts and school for 
206.24  students (PASS) program, including pilots.  Of the fiscal year 
206.25  1999 appropriation, $154,000 is to fund artist and arts 
206.26  organizations participation in the education residency project, 
206.27  $75,000 is for school support for the residency project, and 
206.28  $121,000 is to fund the PASS program, including additional 
206.29  pilots.  The guidelines for the education residency project and 
206.30  the PASS program shall be developed and defined by the center 
206.31  for arts education in cooperation with the Minnesota arts 
206.32  board.  The Minnesota arts board shall participate in the review 
206.33  and allocation process.  The center for arts education and the 
206.34  Minnesota arts board shall cooperate to fund these projects. 
206.35     The center for arts education may establish full-time, 
206.36  part-time, or seasonal positions as necessary to carry out 
207.1   assigned responsibilities and missions.  Actual employment 
207.2   levels are limited by the availability of state funds 
207.3   appropriated for salaries, benefits, and agency operations or 
207.4   funds available from other sources for such purposes.  
207.5      Any balance in the first year does not cancel but is 
207.6   available in the second year. 
207.7      Sec. 3.  [APPROPRIATIONS; FARIBAULT ACADEMIES.] 
207.8      The sums indicated in this section are appropriated from 
207.9   the general fund to the department of children, families, and 
207.10  learning for the Faribault academies for the fiscal years 
207.11  designated:  
207.12       $8,910,000     .....     1998
207.13       $8,908,000     .....     1999 
207.14     Any balance in the first year does not cancel but is 
207.15  available in the second year. 
207.16     The state board of education may establish full-time, 
207.17  part-time, or seasonal positions as necessary to carry out 
207.18  assigned responsibilities and missions of the Faribault 
207.19  academies.  Actual employment levels are limited by the 
207.20  availability of state funds appropriated for salaries, benefits, 
207.21  and agency operations or funds available from other sources for 
207.22  such purposes. 
207.23     In the next biennial budget, the academies must assess 
207.24  their progress in meeting the established performance measures 
207.25  for the Faribault academies and inform the legislature on the 
207.26  content of that assessment.  The information must include an 
207.27  assessment of its progress by consumers and employees. 
207.28                             ARTICLE 11
207.29                TECHNICAL AND CONFORMING AMENDMENTS
207.30     Section 1.  Minnesota Statutes 1996, section 124A.225, 
207.31  subdivision 1, is amended to read: 
207.32     Subdivision 1.  [REVENUE.] Of a district's general 
207.33  education revenue an amount equal to the sum of the number of 
207.34  elementary fund balance pupils in average daily membership 
207.35  defined in section 124.17, subdivision 1h 1f, and one-half of 
207.36  the number of kindergarten fund balance pupils in average daily 
208.1   membership as defined in section 124.17, subdivision 1h 1f, 
208.2   times .06 for fiscal year 1995 and thereafter times the formula 
208.3   allowance must be reserved according to this section.