1.1                          A bill for an act 
  1.2             relating to education; recodifying and making 
  1.3             technical amendments to kindergarten through grade 12 
  1.4             education statutes; amending Minnesota Statutes 1996, 
  1.5             sections 120.02, subdivisions 1, 13, 14, 15, and 18; 
  1.6             120.06, subdivisions 1 and 2a; 120.062, subdivisions 
  1.7             4, 5, and 8a; 120.0621, as amended; 120.064, 
  1.8             subdivisions 4, 4a, 5, 7, 9, 11, 12, 13, 14, 15, 17, 
  1.9             19, 20, 21, 22, and 24; 120.075, subdivisions 1, 2, 
  1.10            3a, and 4; 120.0751, subdivisions 1, 2, 3, 4, and 5; 
  1.11            120.0752, subdivisions 1, 2, and 3; 120.08; 120.101, 
  1.12            subdivisions 5a, 7, 8, 9, and 10; 120.102, 
  1.13            subdivisions 1, 3, and 4; 120.103, subdivisions 3, 4, 
  1.14            5, and 6; 120.11; 120.14; 120.17, subdivisions 1, 1b, 
  1.15            2, 3, 3a, 3b, 3d, 4, 4a, 5, 5a, 6, 7, 7a, 8a, 9, 10, 
  1.16            16, 18, and 19; 120.1701, subdivisions 2, 4, 5, 6, 7, 
  1.17            8, 8a, 9, 10, 11, 12, 15, 17, 19, 20, 21, and 22; 
  1.18            120.172, subdivision 2; 120.173, subdivisions 1, 3, 4, 
  1.19            and 6; 120.1811; 120.182; 120.183; 120.185; 120.188; 
  1.20            120.189; 120.190; 120.59; 120.60; 120.61; 120.62; 
  1.21            120.63; 120.64; 120.66; 120.73, subdivisions 1, 2a, 
  1.22            2b, 3, and 4; 120.74; 120.75; 120.76; 120.80; 
  1.23            121.1115, subdivisions 1 and 2; 121.155; 121.201; 
  1.24            121.203, subdivision 1; 121.207, subdivisions 2 and 3; 
  1.25            121.585, subdivisions 2, 6, and 7; 121.615, 
  1.26            subdivision 11; 121.704; 121.705, subdivision 2; 
  1.27            121.706; 121.707, subdivisions 3, 4, 5, 6, and 7; 
  1.28            121.708; 121.710, subdivisions 2 and 3; 121.831, 
  1.29            subdivisions 6, 7, 8, 9, 10, 11, and 12; 121.835, 
  1.30            subdivisions 4, 5, 7, and 8; 121.8355, subdivisions 2, 
  1.31            3, 5, and 6; 121.88, subdivisions 2, 3, 4, 6, 7, and 
  1.32            9; 121.882, subdivisions 1, 2b, 3, 7, 7a, 8, and 9; 
  1.33            121.885, subdivisions 1 and 4; 121.904, subdivisions 
  1.34            1, 2, 3, 4c, and 13; 121.906; 121.908; 121.911; 
  1.35            121.912, subdivisions 1a, 1b, 2, 3, 5, and 6; 
  1.36            121.9121, subdivisions 2 and 4; 121.914, subdivisions 
  1.37            2, 3, 4, 5, 6, 7, and 8; 121.917; 122.01; 122.02; 
  1.38            122.03; 122.21; 122.22, subdivisions 1, 4, 5, 6, 7a, 
  1.39            9, 13, 14, 18, 20, and 21; 122.23, subdivisions 2, 2b, 
  1.40            3, 6, 7, 8, 9, 10, 11, 12, 13, 14, 16, 16c, 18, 18a, 
  1.41            and 20; 122.241; 122.242, subdivisions 1, 3, 8, and 9; 
  1.42            122.243; 122.245, subdivision 2; 122.246; 122.247, 
  1.43            subdivisions 2 and 2a; 122.248; 122.25, subdivisions 2 
  1.44            and 3; 122.32; 122.34; 122.355; 122.41; 122.43; 
  1.45            122.44; 122.45, subdivisions 2 and 3a; 122.46; 122.47; 
  1.46            122.48; 122.531, subdivisions 2c, 5a, and 9; 122.5311, 
  2.1             subdivision 1; 122.532, subdivisions 2, 3a, and 4; 
  2.2             122.535, subdivisions 2, 3, 4, 5, and 6; 122.541, 
  2.3             subdivisions 1, 2, 4, 5, 6, and 7; 122.895; 122.91, 
  2.4             subdivisions 2, 2a, 3a, 4, and 6; 122.93, subdivisions 
  2.5             3 and 8; 122.95, subdivisions 1, 1a, 2, and 4; 123.11, 
  2.6             subdivisions 1, 2, 3, 4, and 7; 123.12; 123.13; 
  2.7             123.15; 123.33, subdivisions 1, 2, 2a, 3, 4, 6, 7, 11, 
  2.8             and 11a; 123.335; 123.34, subdivisions 1, 2, 7, 8, 9, 
  2.9             9a, and 10; 123.35, subdivisions 1, 2, 4, 5, 8a, 9b, 
  2.10            12, 13, 15, 19a, 19b, 20, and 21; 123.351, 
  2.11            subdivisions 1, 3, 4, 5, 8, and 8a; 123.3513; 
  2.12            123.3514, subdivisions 3, 4b, 4d, 5, 6, 6b, 7a, and 
  2.13            7b; 123.36, subdivisions 1, 5, 10, 11, 13, and 14; 
  2.14            123.37, subdivisions 1, 1a, and 1b; 123.38, 
  2.15            subdivisions 1, 2, 2a, 2b, and 3; 123.39, subdivisions 
  2.16            1, 2, 8, 8a, 8b, 8c, 8d, 8e, 9a, 11, 12, 13, 14, 15, 
  2.17            and 16; 123.40, subdivisions 1, 2, and 8; 123.41; 
  2.18            123.582, subdivision 2; 123.63; 123.64; 123.66; 
  2.19            123.681; 123.70, subdivisions 2, 4, and 8; 123.702, 
  2.20            subdivisions 1, 1b, 2, 3, 4, 4a, 5, 6, and 7; 123.704; 
  2.21            123.7045; 123.71; 123.72; 123.75, subdivisions 2, 3, 
  2.22            and 5; 123.751, subdivisions 1, 2, and 3; 123.76; 
  2.23            123.78, subdivisions 1a and 2; 123.79, subdivision 1; 
  2.24            123.799, as amended; 123.7991, subdivision 3; 123.801; 
  2.25            123.805; 123.932, subdivision 1b; 123.933; 123.935, 
  2.26            subdivisions 1, 2, 4, 5, and 6; 123.936; 123.9361; 
  2.27            123.9362; 123.947; 124.06; 124.07, subdivision 2; 
  2.28            124.078; 124.08; 124.09; 124.10, subdivisions 1 and 2; 
  2.29            124.12; 124.14, subdivisions 2, 3, 3a, 4, 6, 7, and 8; 
  2.30            124.15, subdivisions 2, 2a, 3, 4, 5, 6, and 8; 124.17, 
  2.31            subdivisions 2, 2a, and 2b; 124.175; 124.19, 
  2.32            subdivision 5; 124.195, subdivisions 1, 3, 3a, 3b, 4, 
  2.33            5, 6, and 14; 124.196; 124.2131, subdivisions 1, 2, 
  2.34            3a, 5, 6, 7, 8, 9, and 11; 124.214; 124.225, 
  2.35            subdivisions 7f, 8l, 8m, and 9; 124.227; 124.239, 
  2.36            subdivision 3; 124.242; 124.248, subdivisions 1 and 
  2.37            1a; 124.255; 124.26, subdivision 1c; 124.2601, 
  2.38            subdivision 7; 124.2605; 124.2615, subdivision 4; 
  2.39            124.2711, as amended; 124.2712; 124.2713, subdivision 
  2.40            7; 124.2715, subdivision 3; 124.2716, subdivisions 1 
  2.41            and 2; 124.2726, subdivisions 1, 2, and 4; 124.2727, 
  2.42            subdivision 9; 124.273, subdivisions 3, 4, 6, and 7; 
  2.43            124.276, subdivisions 1 and 3; 124.278, subdivision 3; 
  2.44            124.311, subdivision 1; 124.32; 124.3201, subdivisions 
  2.45            5, 6, and 7; 124.322, subdivision 1; 124.35; 124.37; 
  2.46            124.38, subdivisions 1, 4a, and 7; 124.381; 124.39; 
  2.47            124.40; 124.41, subdivision 3; 124.42, as amended; 
  2.48            124.431, subdivisions 4, 5, 6, 10, 12, 13, and 14; 
  2.49            124.44; 124.46, as amended; 124.48, as amended; 
  2.50            124.492; 124.493, subdivision 1; 124.494, subdivisions 
  2.51            1, 2, 2a, 3, 5, and 7; 124.4945; 124.511; 124.573, 
  2.52            subdivisions 2, 2b, 2e, 2f, 3, 3a, and 5a; 124.625; 
  2.53            124.63; 124.646; 124.6462; 124.6469, subdivision 3; 
  2.54            124.647; 124.6471; 124.6472; 124.648, as amended; 
  2.55            124.71, subdivision 1; 124.72; 124.73; 124.74; 124.75; 
  2.56            124.755, subdivisions 2, 3, 4, 5, 6, 7, 8, and 9; 
  2.57            124.82, subdivisions 1 and 3; 124.83, subdivision 8; 
  2.58            124.84, subdivisions 1 and 2; 124.85, subdivisions 2, 
  2.59            2a, 2b, 2c, 5, 6, and 7; 124.86, subdivisions 1, 3, 
  2.60            and 4; 124.90; 124.91, subdivisions 4 and 6; 124.912, 
  2.61            subdivisions 7 and 9; 124.914; 124.916, as amended; 
  2.62            124.918, subdivisions 2, 3, and 7; 124.95, subdivision 
  2.63            1; 124.97; 124A.02, subdivisions 1, 3a, 20, 21, 22, 
  2.64            23, and 24; 124A.029, subdivisions 1, 3, and 4; 
  2.65            124A.03, subdivisions 2, 2a, and 3c; 124A.0311, 
  2.66            subdivisions 2, 3, and 4; 124A.032; 124A.034; 
  2.67            124A.035; 124A.036, as amended; 124A.04, as amended; 
  2.68            124A.22, subdivisions 2a, 5, 8, and 12; 124A.225, 
  2.69            subdivisions 4 and 5; 124A.29; 124A.30; 124C.07; 
  2.70            124C.08, subdivisions 2 and 3; 124C.09; 124C.12, 
  2.71            subdivision 2; 124C.45, subdivision 1; 124C.49; 
  3.1             124C.498, as amended; 124C.60, subdivision 2; 124C.72, 
  3.2             subdivision 2; 124C.73, subdivision 3; 125.03, 
  3.3             subdivisions 1 and 6; 125.04; 125.05, subdivisions 1, 
  3.4             1a, 6, and 8; 125.06; 125.09; 125.11; 125.12, 
  3.5             subdivisions 1a, 2, 2a, 3, 3b, 4, 6, 6a, 6b, 7, 8, 9, 
  3.6             9a, 10, 11, and 13; 125.121, subdivisions 1 and 2; 
  3.7             125.135; 125.138, subdivisions 1, 3, 4, and 5; 125.16; 
  3.8             125.17, subdivisions 2, 2b, 3, 3b, 4, 5, 6, 7, 8, 9, 
  3.9             10, 10a, 11, and 12; 125.18; 125.181; 125.183, 
  3.10            subdivisions 1, 4, and 5; 125.184; 125.185, 
  3.11            subdivisions 1, 2, 4, 5, and 7; 125.187; 125.188, 
  3.12            subdivisions 1, 3, and 5; 125.1885, subdivision 5; 
  3.13            125.189; 125.1895, subdivision 4; 125.211, subdivision 
  3.14            2; 125.230, subdivisions 4, 6, and 7; 125.231, 
  3.15            subdivision 3; 125.53; 125.54; 125.60, subdivisions 2, 
  3.16            3, 4, 6a, and 8; 125.611, subdivisions 1 and 13; 
  3.17            125.62, subdivisions 2, 3, and 7; 125.623, subdivision 
  3.18            3; 125.702; 125.703; 125.704, subdivision 1; 125.705, 
  3.19            subdivisions 1, 3, 4, and 5; 125.80; 126.05; 126.12; 
  3.20            126.13; 126.14; 126.15, subdivisions 2 and 3; 
  3.21            126.1995; 126.21, subdivisions 3 and 5; 126.22, 
  3.22            subdivisions 5 and 6; 126.235; 126.239, subdivision 1; 
  3.23            126.262, subdivisions 3 and 6; 126.264; 126.265; 
  3.24            126.266, subdivision 1; 126.267; 126.36, subdivisions 
  3.25            1, 5, and 7; 126.43, subdivisions 1 and 2; 126.48, 
  3.26            subdivisions 1, 2, 3, 4, and 5; 126.49, subdivisions 
  3.27            1, 5, 6, and 8; 126.50; 126.501; 126.51, subdivisions 
  3.28            1a and 2; 126.52, subdivisions 5 and 8; 126.531, 
  3.29            subdivision 1; 126.54, subdivisions 1, 2, 3, 4, 5, and 
  3.30            6; 126.56, subdivision 6; 126.69, subdivision 1; 
  3.31            126.70, subdivisions 1 and 2a; 126.72, subdivisions 3 
  3.32            and 6; 126.78, subdivision 4; 126.84, subdivisions 1, 
  3.33            3, 4, and 5; 126A.01; 126B.01, subdivisions 2 and 4; 
  3.34            126B.10; 127.02; 127.03; 127.04; 127.17, subdivisions 
  3.35            1, 3, and 4; 127.19; 127.20; 127.40, subdivision 4; 
  3.36            127.41; 127.411; 127.412; 127.413; 127.42; 127.44; 
  3.37            127.45, subdivision 2; 127.455; 127.46; 127.47, 
  3.38            subdivision 2; 127.48; 129C.10, subdivisions 3a, 3b, 
  3.39            4, and 6; and 129C.15; Minnesota Statutes 1997 
  3.40            Supplement, sections 120.05; 120.062, subdivisions 3, 
  3.41            6, and 7; 120.064, subdivisions 8, 10, 14a, and 20a; 
  3.42            120.101, subdivisions 5 and 5c; 120.1015; 120.1701, 
  3.43            subdivision 3; 120.181; 121.615, subdivisions 2, 3, 9, 
  3.44            and 10; 121.831, subdivision 3; 121.88, subdivision 
  3.45            10; 121.882, subdivision 2; 121.904, subdivision 4a; 
  3.46            121.912, subdivision 1; 123.35, subdivision 8; 
  3.47            123.3514, subdivisions 4, 4a, 4e, 6c, and 8; 123.7991, 
  3.48            subdivision 2; 124.155, subdivisions 1 and 2; 124.17, 
  3.49            subdivisions 1 and 4; 124.195, subdivisions 2, 7, and 
  3.50            10; 124.2445; 124.2455; 124.248, subdivisions 3 and 4; 
  3.51            124.26, subdivision 2; 124.2601, subdivision 6; 
  3.52            124.2615, subdivision 2; 124.2713, subdivision 8; 
  3.53            124.321, subdivisions 1 and 2; 124.322, subdivision 
  3.54            1a; 124.323, subdivision 1; 124.41, subdivision 2; 
  3.55            124.431, subdivisions 2 and 11; 124.45, subdivision 2; 
  3.56            124.481; 124.574, subdivision 9; 124.83, subdivision 
  3.57            1; 124.86, subdivision 2; 124.91, subdivision 5; 
  3.58            124.912, subdivisions 1 and 6; 124.918, subdivisions 
  3.59            1, 6, and 8; 124A.22, subdivisions 6, 11, and 13; 
  3.60            124A.23, subdivisions 1, 2, and 3; 124A.28, 
  3.61            subdivision 3; 124C.45, subdivision 1a; 125.05, 
  3.62            subdivision 1c; 125.12, subdivision 14; 126.22, 
  3.63            subdivisions 2, 3a, and 8; 126.23, subdivision 1; 
  3.64            126.51, subdivision 1; 126.531, subdivision 3; 126.72, 
  3.65            subdivision 2; 126.77, subdivision 1; and 129C.10, 
  3.66            subdivision 3; proposing coding for new law as 
  3.67            Minnesota Statutes, chapters 120B; and 120C; repealing 
  3.68            Minnesota Statutes 1996, sections 120.90; 122.532, 
  3.69            subdivision 1; 122.541, subdivision 3; 123.35, 
  3.70            subdivision 10; 124.01; 124.19, subdivision 4; 
  3.71            124.2725, subdivisions 1, 2, 3, 4, 5, 6, 7, 9, 10, 12, 
  4.1             13, 14, and 16; 124.312, as amended; 124.38, 
  4.2             subdivision 9; 124.472; 124.473; 124.474; 124.476; 
  4.3             124.477; 124.478; 124.479; 124.71, subdivision 2; 
  4.4             124A.02, subdivisions 15 and 16; 124A.029, subdivision 
  4.5             2; 124A.03, subdivision 3b; 124A.22, subdivision 13f; 
  4.6             124A.225, subdivision 6; 124A.31; 124C.55; 124C.56; 
  4.7             124C.57; 124C.58; 125.10; 126.84, subdivision 6; 
  4.8             127.01; and 127.17, subdivision 2; Minnesota Statutes 
  4.9             1997 Supplement, sections 124.2725, subdivision 11; 
  4.10            124.313; 124.314; and 124A.26. 
  4.11  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  4.12                             ARTICLE 1 
  4.13                            CHAPTER 120A 
  4.14                    ENROLLMENT; ATTENDANCE; FEES 
  4.15     Section 1.  Minnesota Statutes 1996, section 120.02, 
  4.16  subdivision 1, is amended to read: 
  4.17     Subdivision 1.  [SCOPE.] For the purposes of this chapter 
  4.18  the words, phrases and terms defined in this section shall have 
  4.19  the meanings respectively ascribed to given them. 
  4.20     Sec. 2.  Minnesota Statutes 1996, section 120.02, 
  4.21  subdivision 13, is amended to read: 
  4.22     Subd. 13.  [COMMON DISTRICT.] A "Common district" is 
  4.23  means any school district validly created and existing as a 
  4.24  common school district or joint common school district as of 
  4.25  July 1, 1957, or pursuant to the terms of the education code. 
  4.26     Sec. 3.  Minnesota Statutes 1996, section 120.02, 
  4.27  subdivision 14, is amended to read: 
  4.28     Subd. 14.  [INDEPENDENT DISTRICT.] An "Independent district 
  4.29  "  is means any school district validly created and existing as 
  4.30  an independent, consolidated, joint independent, county or a ten 
  4.31  or more township district as of July 1, 1957, or pursuant to the 
  4.32  education code. 
  4.33     Sec. 4.  Minnesota Statutes 1996, section 120.02, 
  4.34  subdivision 15, is amended to read: 
  4.35     Subd. 15.  [SPECIAL DISTRICT.] A "Special district" is 
  4.36  means a district established by a charter granted by the 
  4.37  legislature or by a home rule charter including any 
  4.38  district which is designated a special independent school 
  4.39  district by the legislature. 
  4.40     Sec. 5.  Minnesota Statutes 1996, section 120.02, 
  5.1   subdivision 18, is amended to read: 
  5.2      Subd. 18.  [SCHOOL DISTRICT TAX.] "School district tax" is 
  5.3   means the tax levied and collected to provide the amount of 
  5.4   money voted or levied by the district or the board for school 
  5.5   purposes. 
  5.6      Sec. 6.  Minnesota Statutes 1997 Supplement, section 
  5.7   120.05, is amended to read: 
  5.8      120.05 [PUBLIC SCHOOLS.] 
  5.9      Subd. 2.  [DEFINITIONS ELEMENTARY SCHOOL.] (1) "Elementary 
  5.10  school" means any school with building, equipment, courses of 
  5.11  study, class schedules, enrollment of pupils ordinarily in 
  5.12  prekindergarten through grade 6 or any portion thereof, and 
  5.13  staff meeting the standards established by the state board of 
  5.14  education. 
  5.15     The state board of education shall not close a school or 
  5.16  deny any state aids to a district for its elementary schools 
  5.17  because of enrollment limitations classified in accordance with 
  5.18  the provisions of clause (1). 
  5.19     (2) Subd. 3.  [MIDDLE SCHOOL.] "Middle school" means any 
  5.20  school other than a secondary school giving an approved course 
  5.21  of study in a minimum of three consecutive grades above 4th but 
  5.22  below 10th with building, equipment, courses of study, class 
  5.23  schedules, enrollment, and staff meeting the standards 
  5.24  established by the state board of education. 
  5.25     (3) Subd. 4.  [SECONDARY SCHOOL.] "Secondary school" means 
  5.26  any school with building, equipment, courses of study, class 
  5.27  schedules, enrollment of pupils ordinarily in grades 7 through 
  5.28  12 or any portion thereof, and staff meeting the standards 
  5.29  established by the state board of education. 
  5.30     (4) Subd. 5.  [VOCATIONAL CENTER SCHOOL.] A "Vocational 
  5.31  center school" is one means any school serving a group of 
  5.32  secondary schools with approved areas of secondary vocational 
  5.33  training and offering vocational secondary and adult programs 
  5.34  necessary to meet local needs and meeting standards established 
  5.35  by the state board of education. 
  5.36     Sec. 7.  Minnesota Statutes 1996, section 120.06, 
  6.1   subdivision 1, is amended to read: 
  6.2      Subdivision 1.  [AGE LIMITATIONS; PUPILS.] All schools 
  6.3   supported in whole or in part by state funds are public schools. 
  6.4   Admission to a public school is free to any person who resides 
  6.5   within the district which that operates the school, who is under 
  6.6   21 years of age, and who satisfies the minimum age requirements 
  6.7   imposed by this section.  Notwithstanding the provisions of any 
  6.8   law to the contrary, the conduct of all students under 21 years 
  6.9   of age attending a public secondary school shall be is governed 
  6.10  by a single set of reasonable rules and regulations promulgated 
  6.11  by the school board.  No person shall be admitted to any public 
  6.12  school (1) as a kindergarten pupil, unless the pupil is at least 
  6.13  five years of age on September 1 of the calendar year in which 
  6.14  the school year for which the pupil seeks admission commences; 
  6.15  or (2) as a 1st grade student, unless the pupil is at least six 
  6.16  years of age on September 1 of the calendar year in which the 
  6.17  school year for which the pupil seeks admission commences or has 
  6.18  completed kindergarten; except that any school board may 
  6.19  establish a policy for admission of selected pupils at an 
  6.20  earlier age. 
  6.21     Sec. 8.  Minnesota Statutes 1996, section 120.06, 
  6.22  subdivision 2a, is amended to read: 
  6.23     Subd. 2a.  [EDUCATION OF HOMELESS.] Notwithstanding 
  6.24  subdivision 1, a school district must not deny free admission to 
  6.25  a homeless person of school age solely because the school 
  6.26  district cannot determine that the person is a resident of 
  6.27  the school district. 
  6.28     Sec. 9.  Minnesota Statutes 1997 Supplement, section 
  6.29  120.062, subdivision 3, is amended to read: 
  6.30     Subd. 3.  [LIMITED ENROLLMENT OF NONRESIDENT PUPILS.] (a) A 
  6.31  school board may, by resolution, limit the enrollment of 
  6.32  nonresident pupils in its schools or programs according to this 
  6.33  section to a number not less than the lesser of: 
  6.34     (1) one percent of the total enrollment at each grade level 
  6.35  in the district; or 
  6.36     (2) the number of district residents at that grade level 
  7.1   enrolled in a nonresident district according to this section.  
  7.2      (b) A district that limits enrollment of nonresident pupils 
  7.3   under paragraph (a) shall report to the commissioner by July 15 
  7.4   on the number of nonresident pupils denied admission due to the 
  7.5   limitations on the enrollment of nonresident pupils. 
  7.6      Sec. 10.  Minnesota Statutes 1996, section 120.062, 
  7.7   subdivision 4, is amended to read: 
  7.8      Subd. 4.  [PUPIL APPLICATION PROCEDURES.] In order that a 
  7.9   pupil may attend a school or program in a nonresident district, 
  7.10  the pupil's parent or guardian must submit an application to the 
  7.11  nonresident district.  Before submitting an application, the 
  7.12  pupil and the pupil's parent or guardian must explore with a 
  7.13  school guidance counselor, or other appropriate staff member 
  7.14  employed by the district the pupil is currently attending, the 
  7.15  pupil's academic or other reason for applying to enroll in a 
  7.16  nonresident district.  The pupil's application must identify the 
  7.17  reason for enrolling in the nonresident district.  The parent or 
  7.18  guardian of a pupil must submit an application by January 15 for 
  7.19  initial enrollment beginning the following school year.  The 
  7.20  application shall must be on a form provided by the department 
  7.21  of children, families, and learning.  A particular school or 
  7.22  program may be requested by the parent.  Once enrolled in a 
  7.23  nonresident district, the pupil may remain enrolled and is not 
  7.24  required to submit annual or periodic applications.  To return 
  7.25  to the resident district or to transfer to a different 
  7.26  nonresident district, the parent or guardian of the pupil must 
  7.27  provide notice to the resident district or apply to a different 
  7.28  nonresident district by January 15 for enrollment beginning the 
  7.29  following school year. 
  7.30     Sec. 11.  Minnesota Statutes 1996, section 120.062, 
  7.31  subdivision 5, is amended to read: 
  7.32     Subd. 5.  [DESEGREGATION DISTRICT TRANSFERS.] (a) This 
  7.33  subdivision applies to a transfer into or out of a district that 
  7.34  has a desegregation plan approved by the commissioner of 
  7.35  children, families, and learning.  
  7.36     (b) An application to transfer may be submitted at any time 
  8.1   for enrollment beginning at any time. 
  8.2      (c) The parent or guardian of a pupil who is a resident of 
  8.3   a district that has a desegregation plan must submit an 
  8.4   application to the resident district.  If the district accepts 
  8.5   the application, it must forward the application to the 
  8.6   nonresident district. 
  8.7      (d) The parent or guardian of a pupil who applies for 
  8.8   enrollment in a nonresident district that has a desegregation 
  8.9   plan must submit an application to the nonresident district.  
  8.10     (e) Each district must accept or reject an application it 
  8.11  receives and notify the parent or guardian in writing within 30 
  8.12  calendar days of receiving the application.  A notification of 
  8.13  acceptance must include the date enrollment can begin. 
  8.14     (f) If an application is rejected, the district must state 
  8.15  the reason for rejection in the notification.  If a district 
  8.16  that has a desegregation plan rejects an application for a 
  8.17  reason related to the desegregation plan, the district must 
  8.18  state with specificity how acceptance of the application would 
  8.19  result in noncompliance with state board rules with respect to 
  8.20  the school or program for which application was made.  
  8.21     (g) If an application is accepted, the parent or guardian 
  8.22  must notify the nonresident district in writing within 15 
  8.23  calendar days of receiving the acceptance whether the pupil 
  8.24  intends to enroll in the nonresident district.  Notice of 
  8.25  intention to enroll obligates the pupil to enroll in the 
  8.26  nonresident district, unless the school boards of the resident 
  8.27  and nonresident districts agree otherwise.  If a parent or 
  8.28  guardian does not notify the nonresident district, the pupil may 
  8.29  not enroll in that nonresident district at that time, unless the 
  8.30  school boards of the resident and nonresident district agree 
  8.31  otherwise. 
  8.32     (h) Within 15 calendar days of receiving the notice from 
  8.33  the parent or guardian, the nonresident district shall notify 
  8.34  the resident district in writing of the pupil's intention to 
  8.35  enroll in the nonresident district.  
  8.36     (i) A pupil enrolled in a nonresident district under this 
  9.1   subdivision is not required to make annual or periodic 
  9.2   application for enrollment but may remain enrolled in the same 
  9.3   district.  A pupil may transfer to the resident district at any 
  9.4   time.  
  9.5      (j) A pupil enrolled in a nonresident district and applying 
  9.6   to transfer into or out of a district that has a desegregation 
  9.7   plan must follow the procedures of this subdivision.  For the 
  9.8   purposes of this type of transfer, "resident district" means the 
  9.9   nonresident district in which the pupil is enrolled at the time 
  9.10  of application.  
  9.11     (k) A district that has a desegregation plan approved by 
  9.12  the state board of education must accept or reject each 
  9.13  individual application in a manner that will enable compliance 
  9.14  with its desegregation plan. 
  9.15     Sec. 12.  Minnesota Statutes 1997 Supplement, section 
  9.16  120.062, subdivision 6, is amended to read: 
  9.17     Subd. 6.  [NONRESIDENT DISTRICT PROCEDURES.] A district 
  9.18  shall notify the parent or guardian in writing by February 15 
  9.19  whether the application has been accepted or rejected.  If an 
  9.20  application is rejected, the district must state in the 
  9.21  notification the reason for rejection.  The parent or guardian 
  9.22  shall must notify the nonresident district by March 1 whether 
  9.23  the pupil intends to enroll in the nonresident district.  Notice 
  9.24  of intent to enroll in the nonresident district obligates the 
  9.25  pupil to attend the nonresident district during the following 
  9.26  school year, unless the school boards of the resident and the 
  9.27  nonresident districts agree in writing to allow the pupil to 
  9.28  transfer back to the resident district, or the pupil's parents 
  9.29  or guardians change residence to another district.  If a parent 
  9.30  or guardian does not notify the nonresident district, the pupil 
  9.31  may not enroll in that nonresident district during the following 
  9.32  school year, unless the school boards of the resident and 
  9.33  nonresident district agree otherwise.  The nonresident district 
  9.34  shall must notify the resident district by March 15 of the 
  9.35  pupil's intent to enroll in the nonresident district.  The same 
  9.36  procedures apply to a pupil who applies to transfer from one 
 10.1   participating nonresident district to another participating 
 10.2   nonresident district. 
 10.3      Sec. 13.  Minnesota Statutes 1997 Supplement, section 
 10.4   120.062, subdivision 7, is amended to read: 
 10.5      Subd. 7.  [BASIS FOR DECISIONS.] The school board must 
 10.6   adopt, by resolution, specific standards for acceptance and 
 10.7   rejection of applications.  Standards may include the capacity 
 10.8   of a program, class, or school building.  The school board may 
 10.9   not reject applications for enrollment in a particular grade 
 10.10  level if the nonresident enrollment at that grade level does not 
 10.11  exceed the limit set by the board under subdivision 3.  
 10.12  Standards may not include previous academic achievement, 
 10.13  athletic or other extracurricular ability, disabling conditions, 
 10.14  proficiency in the English language, previous disciplinary 
 10.15  proceedings, or the student's district of residence. 
 10.16     Sec. 14.  Minnesota Statutes 1996, section 120.062, 
 10.17  subdivision 8a, is amended to read: 
 10.18     Subd. 8a.  [EXCEPTIONS TO DEADLINES.] Notwithstanding 
 10.19  subdivision 4, the following pupil application procedures apply: 
 10.20     (a) Upon agreement of the resident and nonresident school 
 10.21  districts, a pupil may submit an application to a nonresident 
 10.22  district after January 15 for enrollment beginning the following 
 10.23  school year.  
 10.24     (b) If, as a result of entering into, modifying, or 
 10.25  terminating an agreement between school boards, a pupil is 
 10.26  assigned after December 1 to a different school for enrollment 
 10.27  beginning at any time, the pupil, the pupil's siblings, or any 
 10.28  other pupil residing in the pupil's residence may submit an 
 10.29  application to a nonresident district at any time before July 1 
 10.30  for enrollment beginning the following school year. 
 10.31     (c) A pupil who becomes a resident of a school district 
 10.32  after December 1 may submit an application to a nonresident 
 10.33  district on January 15 or any time after that date for 
 10.34  enrollment beginning any time before the following December 1. 
 10.35     (d) If the commissioner of children, families, and learning 
 10.36  and the commissioner of human rights determine that the 
 11.1   policies, procedures, or practices of a school district are in 
 11.2   violation of Title VI of the Civil Rights Act of 1964 (Public 
 11.3   Law Number 88-352) or chapter 363, any pupil in the district may 
 11.4   submit an application to a nonresident district at any time for 
 11.5   enrollment beginning at any time. 
 11.6      For exceptions under this subdivision, the applicant, the 
 11.7   applicant's parent or guardian, the district of residence, and 
 11.8   the district of attendance must observe, in a prompt and 
 11.9   efficient manner, the application and notice procedures in 
 11.10  subdivisions 4 and 6, except that the application and notice 
 11.11  deadlines do not apply. 
 11.12     Sec. 15.  Minnesota Statutes 1996, section 120.0621, as 
 11.13  amended by Laws 1997, First Special Session chapter 4, article 
 11.14  4, sections 1, 2, and 3, is amended to read: 
 11.15     120.0621 [ENROLLMENT OPTIONS PROGRAMS IN BORDER STATES.] 
 11.16     Subdivision 1.  [OPTIONS FOR ENROLLMENT IN ADJOINING 
 11.17  STATES.] Minnesota pupils and pupils residing in adjoining 
 11.18  states may enroll in school districts in the other state 
 11.19  according to: 
 11.20     (1) section 120.08, subdivision 2; or 
 11.21     (2) this section. 
 11.22     Subd. 2.  [PUPILS IN MINNESOTA.] A Minnesota resident pupil 
 11.23  may enroll in a school district in an adjoining state if the 
 11.24  district to be attended borders Minnesota.  
 11.25     Subd. 3.  [PUPILS IN BORDERING STATES.] A non-Minnesota 
 11.26  pupil who resides in an adjoining state in a school district 
 11.27  that borders Minnesota may enroll in a Minnesota school district 
 11.28  if either the school board of the district in which the pupil 
 11.29  resides or state in which the pupil resides pays tuition to the 
 11.30  school district in which the pupil is enrolled. 
 11.31     Subd. 3a.  [CANADIAN PUPILS.] A pupil who resides in Canada 
 11.32  may enroll in a Minnesota school district if the province in 
 11.33  which the pupil resides pays tuition to the school district in 
 11.34  which the pupil is enrolled.  A pupil may enroll either full 
 11.35  time or part time for all instructional programs and shall be 
 11.36  considered eligible for all other purposes for all other 
 12.1   programs offered by the district.  The tuition must be an amount 
 12.2   that is at least comparable to the tuition specified in section 
 12.3   120.08, subdivision 1.  A school district may accept funds from 
 12.4   any international agency for these programs. 
 12.5      Subd. 4.  [PROCEDURAL REQUIREMENTS.] Except as otherwise 
 12.6   provided in this section, the rights and duties set forth in 
 12.7   section 120.062 apply to Minnesota pupils, parents, and school 
 12.8   districts if a pupil enrolls in a nonresident district according 
 12.9   to this section.  
 12.10     Subd. 5a.  [TUITION PAYMENTS.] In each odd-numbered year, 
 12.11  before March 1, the commissioner shall must agree to rates of 
 12.12  tuition for Minnesota elementary and secondary pupils attending 
 12.13  in other states for the next two fiscal years when the other 
 12.14  state agrees to negotiate tuition rates.  The commissioner shall 
 12.15  must negotiate equal, reciprocal rates with the designated 
 12.16  authority in each state for pupils who reside in an adjoining 
 12.17  state and enroll in a Minnesota school district.  The rates must 
 12.18  be at least equal to the tuition specified in section 120.08, 
 12.19  subdivision 1.  If the other state does not agree to negotiate a 
 12.20  general tuition rate, a Minnesota school district may negotiate 
 12.21  a tuition rate with the school district in the other state that 
 12.22  sends a pupil to or receives a pupil from the Minnesota school 
 12.23  district.  The tuition rate for a pupil with a disability must 
 12.24  be equal to the actual cost of instruction and services 
 12.25  provided.  The resident district of a Minnesota pupil attending 
 12.26  in another state under this section must pay the amount of 
 12.27  tuition agreed upon in this section to the district of 
 12.28  attendance, prorated on the basis of the proportion of the 
 12.29  school year attended. 
 12.30     Subd. 5b.  [TRANSPORTATION OF STUDENTS.] (a) The agreement 
 12.31  under subdivision 5a with each state must specify that the 
 12.32  attending district in each state transport a pupil from the 
 12.33  district boundary to the school of attendance.  
 12.34     (b) Notwithstanding paragraph (a), the districts of 
 12.35  residence and attendance may agree that either district may 
 12.36  provide transportation from a pupil's home or agreed upon 
 13.1   location to school.  Transportation aid for Minnesota students 
 13.2   eligible for aid shall must be paid only for transportation 
 13.3   within the resident district. 
 13.4      Subd. 6.  [EFFECTIVE IF RECIPROCAL.] This section is 
 13.5   effective with respect to South Dakota upon enactment of 
 13.6   provisions by South Dakota that the commissioner determines are 
 13.7   essentially similar to the provisions for Minnesota pupils in 
 13.8   this section.  After July 1, 1993, This section is effective 
 13.9   with respect to any other bordering state upon enactment of 
 13.10  provisions by the bordering state that the commissioner 
 13.11  determines are essentially similar to the provisions for 
 13.12  Minnesota pupils in this section. 
 13.13     Subd. 7.  [APPEAL TO THE COMMISSIONER.] If a Minnesota 
 13.14  school district cannot agree with an adjoining state on a 
 13.15  tuition rate for a Minnesota student attending school in that 
 13.16  state and that state has met the requirements in subdivision 6, 
 13.17  then the student's parent or guardian may request that the 
 13.18  commissioner agree on a tuition rate for the student.  The 
 13.19  Minnesota school district must pay the amount of tuition the 
 13.20  commissioner agrees upon.  
 13.21     Sec. 16.  Minnesota Statutes 1996, section 120.075, 
 13.22  subdivision 1, is amended to read: 
 13.23     Subdivision 1.  [PREVIOUS ENROLLMENT.] Any pupil who, 
 13.24  pursuant to the provisions of Minnesota Statutes 1976, section 
 13.25  120.065, or Minnesota Statutes, 1977 Supplement, section 123.39, 
 13.26  subdivision 5a, was enrolled on either January 1, 1978, or April 
 13.27  5, 1978, in a school district of which the pupil was not a 
 13.28  resident may continue in enrollment in that district.  
 13.29     Sec. 17.  Minnesota Statutes 1996, section 120.075, 
 13.30  subdivision 2, is amended to read: 
 13.31     Subd. 2.  [UNDER SCHOOL AGE.] Any child who was under 
 13.32  school age on either January 1, 1978, or April 5, 1978, but who 
 13.33  otherwise would have qualified pursuant to the provisions of 
 13.34  Minnesota Statutes 1976, section 120.065, or Minnesota Statutes, 
 13.35  1977 Supplement, section 123.39, subdivision 5a, for enrollment 
 13.36  in a school district of which the child was not a resident may 
 14.1   enroll in that district.  
 14.2      Sec. 18.  Minnesota Statutes 1996, section 120.075, 
 14.3   subdivision 3a, is amended to read: 
 14.4      Subd. 3a.  [ADOPTED CHILD.] Any child who was born on or 
 14.5   before January 1, 1978 but who was adopted after January 1, 1978 
 14.6   and whose adoptive parent on January 1, 1978 owned property 
 14.7   residence upon which would have qualified the child for 
 14.8   enrollment pursuant to Minnesota Statutes 1976, section 120.065, 
 14.9   in a school district of which the child was not a resident may 
 14.10  enroll in that district.  Any child who was born on or before 
 14.11  January 1, 1978 but who was adopted after January 1, 1978 and 
 14.12  whose adoptive parent on January 1, 1978 owned or was a tenant 
 14.13  upon property so as to qualify a child for enrollment pursuant 
 14.14  to Minnesota Statutes, 1977 Supplement, section 123.39, 
 14.15  subdivision 5a, in a school district of which the child was not 
 14.16  a resident may enroll in that district. 
 14.17     Sec. 19.  Minnesota Statutes 1996, section 120.075, 
 14.18  subdivision 4, is amended to read: 
 14.19     Subd. 4.  [SIBLING OF QUALIFIED PUPIL.] Subdivisions 1, 1a, 
 14.20  2, 3 and 3a shall also apply to any brother or sister of a 
 14.21  qualified pupil who is related to that pupil by blood, adoption, 
 14.22  or marriage and to any foster child of that pupil's parents.  
 14.23  The enrollment of any pupil pursuant to subdivision 1, 2, 3 or 
 14.24  3a and of a brother or sister of that pupil or of a foster child 
 14.25  of that pupil's parents pursuant to this subdivision shall must 
 14.26  remain subject to the provisions of Minnesota Statutes 1976, 
 14.27  section 120.065 and Minnesota Statutes, 1977 Supplement, section 
 14.28  123.39, subdivision 5a, as they read on January 1, 1978. 
 14.29     Sec. 20.  Minnesota Statutes 1996, section 120.0751, 
 14.30  subdivision 1, is amended to read: 
 14.31     Subdivision 1.  [COMMISSIONER MAY PERMIT ENROLLMENT.] The 
 14.32  commissioner may permit a pupil to enroll in a school district 
 14.33  of which the pupil is not a resident under this section.  
 14.34     Sec. 21.  Minnesota Statutes 1996, section 120.0751, 
 14.35  subdivision 2, is amended to read: 
 14.36     Subd. 2.  [APPLICATION TO THE COMMISSIONER.] The pupil or 
 15.1   the pupil's parent or guardian shall must make application to 
 15.2   the commissioner, explaining the particular circumstances which 
 15.3   that make the nonresident district the appropriate district of 
 15.4   attendance for the pupil.  The application must be signed by the 
 15.5   pupil's parent or guardian and the superintendent of the 
 15.6   nonresident district.  
 15.7      Sec. 22.  Minnesota Statutes 1996, section 120.0751, 
 15.8   subdivision 3, is amended to read: 
 15.9      Subd. 3.  [CRITERIA FOR APPROVAL.] In approving or 
 15.10  disapproving the application the commissioner shall must 
 15.11  consider the following:  
 15.12     (a) (1) if the circumstances of the pupil are similar or 
 15.13  analogous to the exceptions permitted by section 120.075, 
 15.14  whether attending school in the district of residence creates a 
 15.15  particular hardship for the pupil; or 
 15.16     (b) (2) if the pupil has been continuously enrolled for at 
 15.17  least two years in a district of which the pupil was not a 
 15.18  resident because of an error made in good faith about the actual 
 15.19  district of residence, whether attending school in the district 
 15.20  of residence creates a particular hardship for the pupil.  If 
 15.21  the commissioner finds that a good faith error was made and that 
 15.22  attending school in the district of residence would create a 
 15.23  particular hardship for the siblings of that pupil or foster 
 15.24  children of that pupil's parents, the commissioner may 
 15.25  separately approve an application for any or all of the siblings 
 15.26  of the pupil who are related by blood, adoption, or marriage and 
 15.27  for foster children of the pupil's parents.  
 15.28     Sec. 23.  Minnesota Statutes 1996, section 120.0751, 
 15.29  subdivision 4, is amended to read: 
 15.30     Subd. 4.  [DECISION DEADLINE.] The commissioner shall must 
 15.31  render its decision in each case within 60 days of receiving the 
 15.32  application in subdivision 2.  
 15.33     Sec. 24.  Minnesota Statutes 1996, section 120.0751, 
 15.34  subdivision 5, is amended to read: 
 15.35     Subd. 5.  [FORMS.] The commissioner shall must provide the 
 15.36  forms required by subdivision 2 and shall must adopt the 
 16.1   procedures necessary to implement this section. 
 16.2      Sec. 25.  Minnesota Statutes 1996, section 120.0752, 
 16.3   subdivision 1, is amended to read: 
 16.4      Subdivision 1.  [ENROLLMENT EXCEPTION.] A pupil may enroll 
 16.5   in a school district of which the pupil is not a resident under 
 16.6   this section.  
 16.7      Sec. 26.  Minnesota Statutes 1996, section 120.0752, 
 16.8   subdivision 2, is amended to read: 
 16.9      Subd. 2.  [BOARD APPROVAL.] The pupil's parent or guardian 
 16.10  must receive the approval of the school board of the nonresident 
 16.11  district and the school board of the resident district.  The 
 16.12  nonresident school board shall notify the resident school board 
 16.13  of the approval. 
 16.14     Sec. 27.  Minnesota Statutes 1996, section 120.0752, 
 16.15  subdivision 3, is amended to read: 
 16.16     Subd. 3.  [11TH AND 12TH GRADE STUDENTS.] Notwithstanding 
 16.17  subdivision 2, an 11th or 12th grade pupil who has been enrolled 
 16.18  in a district and whose parent or guardian moves to another 
 16.19  district, may continue to enroll in the nonresident district 
 16.20  upon the approval of the school board of the nonresident 
 16.21  district.  The approval of the school board of the pupil's 
 16.22  resident district is not required.  
 16.23     Sec. 28.  Minnesota Statutes 1996, section 120.08, is 
 16.24  amended to read: 
 16.25     120.08 [ATTENDANCE; SCHOOL IN ANOTHER STATE; SEVERANCE 
 16.26  PAY.] 
 16.27     Subdivision 1.  [ATTENDANCE IN ANOTHER STATE.] Any person 
 16.28  under 21 years of age residing in any district not maintaining a 
 16.29  secondary school who has successfully completed the elementary 
 16.30  school may, with the consent of the board of such district, 
 16.31  attend any secondary school of a district in an adjoining state 
 16.32  willing to admit the person, which if the secondary school is 
 16.33  nearer to the place of residence than any duly established 
 16.34  secondary school in Minnesota, the distances being measured by 
 16.35  the usual traveled routes.  Any tuition charged by the district 
 16.36  so attended shall must be paid to the district attended by the 
 17.1   district in which the person resides.  This tuition shall must 
 17.2   not be more than (a) such the district charges nonresident 
 17.3   pupils of that state, (b) the average maintenance cost exclusive 
 17.4   of transportation per pupil unit in average daily membership in 
 17.5   the school attended, nor (c) the tuition rate provided for in 
 17.6   section 124.18, subdivision 2.  
 17.7      Any pupil attending a secondary school in an adjoining 
 17.8   state for whom tuition is paid from district funds is entitled 
 17.9   to transportation services in accordance with Minnesota Statutes.
 17.10     Subd. 2.  [TUITION.] A school board of a district 
 17.11  maintaining a secondary school may by a majority vote provide 
 17.12  for the instruction of any resident pupil attending an 
 17.13  elementary school, a middle school, or a secondary school in 
 17.14  a school district in an adjoining state.  Any charge for tuition 
 17.15  or transportation, by the district in the adjoining state, shall 
 17.16  must be paid by the resident district.  The pupil shall must be 
 17.17  considered a pupil of the resident district for the purposes of 
 17.18  state aid. 
 17.19     Subd. 3.  [SEVERANCE PAY.] A district shall must pay 
 17.20  severance pay to a teacher who is placed on unrequested leave of 
 17.21  absence by the district as a result of an agreement under this 
 17.22  section.  A teacher is eligible under this subdivision if the 
 17.23  teacher: 
 17.24     (1) is a teacher, as defined in section 125.12, subdivision 
 17.25  1, but not a superintendent; 
 17.26     (2) has a continuing contract with the district according 
 17.27  to section 125.12, subdivision 4. 
 17.28     The amount of severance pay shall must be equal to the 
 17.29  teacher's salary for the school year during which the teacher 
 17.30  was placed on unrequested leave of absence minus the gross 
 17.31  amount the teacher was paid during the 12 months following the 
 17.32  teacher's termination of salary, by an entity whose teachers by 
 17.33  statute or rule must possess a valid Minnesota teaching license, 
 17.34  and minus the amount a teacher receives as severance or other 
 17.35  similar pay according to a contract with the district or 
 17.36  district policy.  These entities include, but are not limited 
 18.1   to, the school district that placed the teacher on unrequested 
 18.2   leave of absence, another school district in Minnesota, an 
 18.3   education district, an intermediate school district, a SC, a 
 18.4   board formed under section 471.59, a state residential academy, 
 18.5   the Lola and Rudy Perpich Minnesota center for arts education, a 
 18.6   vocational center, or a special education cooperative.  These 
 18.7   entities do not include a school district in another state, a 
 18.8   Minnesota public post-secondary institution, or a state agency.  
 18.9   Only amounts earned by the teacher as a substitute teacher or in 
 18.10  a position requiring a valid Minnesota teaching license shall be 
 18.11  subtracted.  A teacher may decline any offer of employment as a 
 18.12  teacher without loss of rights to severance pay. 
 18.13     To determine the amount of severance pay that is due for 
 18.14  the first six months following termination of the teacher's 
 18.15  salary, the district may require the teacher to provide 
 18.16  documented evidence of the teacher's employers and gross 
 18.17  earnings during that period.  The district shall must pay the 
 18.18  teacher the amount of severance pay it determines to be due from 
 18.19  the proceeds of the levy for this purpose.  To determine the 
 18.20  amount of severance pay that is due for the second six months of 
 18.21  the 12 months following the termination of the teacher's salary, 
 18.22  the district may require the teacher to provide documented 
 18.23  evidence of the teacher's employers and gross earnings during 
 18.24  that period.  The district shall must pay the teacher the amount 
 18.25  of severance pay it determines to be due from the proceeds of 
 18.26  the levy for this purpose. 
 18.27     A teacher who receives severance pay under this subdivision 
 18.28  waives all further reinstatement rights under section 125.12, 
 18.29  subdivision 6a or 6b.  If the teacher receives severance pay, 
 18.30  the teacher shall must not receive credit for any years of 
 18.31  service in the district paying severance pay prior to the year 
 18.32  in which the teacher becomes eligible to receive severance pay.  
 18.33     The severance pay is subject to section 465.72.  The 
 18.34  district may levy annually according to section 124.912, 
 18.35  subdivision 1, for the severance pay. 
 18.36     Sec. 29.  Minnesota Statutes 1997 Supplement, section 
 19.1   120.101, subdivision 5, is amended to read: 
 19.2      Subd. 5.  [AGES AND TERMS.] Every child between seven and 
 19.3   16 years of age shall must receive instruction.  Every child 
 19.4   under the age of seven who is enrolled in a half-day 
 19.5   kindergarten, or a full-day kindergarten program on alternate 
 19.6   days, or other kindergarten programs shall receive instruction.  
 19.7   Except as provided in subdivision 5a, a parent may withdraw a 
 19.8   child under the age of seven from enrollment at any time.  
 19.9      Sec. 30.  Minnesota Statutes 1996, section 120.101, 
 19.10  subdivision 5a, is amended to read: 
 19.11     Subd. 5a.  [CHILDREN UNDER SEVEN.] Once a pupil under the 
 19.12  age of seven is enrolled in kindergarten or a higher grade in a 
 19.13  public school, the pupil is subject to the compulsory attendance 
 19.14  provisions of this chapter and section 127.20, unless the school 
 19.15  board of the district in which the pupil is enrolled has a 
 19.16  policy that exempts children under seven from this subdivision. 
 19.17     In a school district in which children under seven are 
 19.18  subject to compulsory attendance under this subdivision, 
 19.19  paragraphs (a) to (c) apply. 
 19.20     (a) A parent or guardian may withdraw the pupil from 
 19.21  enrollment in the school for good cause by notifying the school 
 19.22  district.  Good cause includes, but is not limited to, 
 19.23  enrollment of the pupil in another school, as defined in 
 19.24  subdivision 4, or the immaturity of the child. 
 19.25     (b) When the pupil enrolls, the enrolling official must 
 19.26  provide the parent or guardian who enrolls the pupil with a 
 19.27  written explanation of the provisions of this subdivision. 
 19.28     (c) A pupil under the age of seven who is withdrawn from 
 19.29  enrollment in the public school under paragraph (a) is no longer 
 19.30  subject to the compulsory attendance provisions of this chapter. 
 19.31     In a school district that had adopted a policy to exempt 
 19.32  children under seven from this subdivision, the school 
 19.33  district's chief attendance officer must keep the truancy 
 19.34  enforcement authorities supplied with a copy of the school 
 19.35  board's current policy certified by the clerk of the school 
 19.36  board.  
 20.1      Sec. 31.  Minnesota Statutes 1997 Supplement, section 
 20.2   120.101, subdivision 5c, is amended to read: 
 20.3      Subd. 5c.  [EDUCATION RECORDS.] (a) A school district from 
 20.4   which a student is transferring must transmit the student's 
 20.5   educational records, within ten business days of a request, to 
 20.6   the school district in which the student is enrolling.  School 
 20.7   districts must make reasonable efforts to determine the school 
 20.8   district in which a transferring student is next enrolling in 
 20.9   order to comply with this subdivision. 
 20.10     (b) A school district that transmits a student's 
 20.11  educational records to another school district or other 
 20.12  educational entity to which the student is transferring must 
 20.13  include in the transmitted records information about 
 20.14  disciplinary action taken as a result of any incident in which 
 20.15  the student possessed or used a dangerous weapon. 
 20.16     Sec. 32.  Minnesota Statutes 1996, section 120.101, 
 20.17  subdivision 7, is amended to read: 
 20.18     Subd. 7.  [REQUIREMENTS FOR INSTRUCTORS.] A person who is 
 20.19  providing instruction to a child must meet at least one of the 
 20.20  following requirements:  
 20.21     (1) hold a valid Minnesota teaching license in the field 
 20.22  and for the grade level taught; 
 20.23     (2) be directly supervised by a person holding a valid 
 20.24  Minnesota teaching license; 
 20.25     (3) successfully complete a teacher competency examination; 
 20.26     (4) provide instruction in a school that is accredited by 
 20.27  an accrediting agency, recognized according to section 123.935, 
 20.28  subdivision 7, or recognized by the state board of education; 
 20.29     (5) hold a baccalaureate degree; or 
 20.30     (6) be the parent of a child who is assessed according to 
 20.31  the procedures in subdivision 8.  
 20.32     Any person providing instruction in a public school must 
 20.33  meet the requirements of clause (1). 
 20.34     Sec. 33.  Minnesota Statutes 1996, section 120.101, 
 20.35  subdivision 8, is amended to read: 
 20.36     Subd. 8.  [ASSESSMENT OF PERFORMANCE.] (a) Each year the 
 21.1   performance of every child who is not enrolled in a public 
 21.2   school must be assessed using a nationally norm-referenced 
 21.3   standardized achievement examination.  The superintendent of the 
 21.4   district in which the child receives instruction and the person 
 21.5   in charge of the child's instruction must agree about the 
 21.6   specific examination to be used and the administration and 
 21.7   location of the examination.  
 21.8      (b) To the extent the examination in paragraph (a) does not 
 21.9   provide assessment in all of the subject areas in subdivision 6, 
 21.10  the parent must assess the child's performance in the applicable 
 21.11  subject area.  This requirement applies only to a parent who 
 21.12  provides instruction and does not meet the requirements of 
 21.13  subdivision 7, clause (1), (2), or (3).  
 21.14     (c) If the results of the assessments in paragraphs (a) and 
 21.15  (b) indicate that the child's performance on the total battery 
 21.16  score is at or below the 30th percentile or one grade level 
 21.17  below the performance level for children of the same age, the 
 21.18  parent shall must obtain additional evaluation of the child's 
 21.19  abilities and performance for the purpose of determining whether 
 21.20  the child has learning problems.  
 21.21     (d) A child receiving instruction from a nonpublic school, 
 21.22  person, or institution that is accredited by an accrediting 
 21.23  agency, recognized according to section 123.935, subdivision 7, 
 21.24  or recognized by the state board of education, is exempt from 
 21.25  the requirements of this subdivision.  
 21.26     Sec. 34.  Minnesota Statutes 1996, section 120.101, 
 21.27  subdivision 9, is amended to read: 
 21.28     Subd. 9.  [LEGITIMATE EXEMPTIONS.] A parent, guardian, or 
 21.29  other person having control of a child may apply to a school 
 21.30  district to have the child excused from attendance for the whole 
 21.31  or any part of the time school is in session during any school 
 21.32  year.  Application may be made to any member of the board, a 
 21.33  truant officer, a principal, or the superintendent.  The school 
 21.34  board of the district in which the child resides may approve the 
 21.35  application upon the following being demonstrated to the 
 21.36  satisfaction of that board: 
 22.1      (1) That the child's bodily or mental condition is such as 
 22.2   to prevent attendance at school or application to study for the 
 22.3   period required; or 
 22.4      (2) That for the school years 1988-1989 through 1999-2000 
 22.5   the child has already completed the studies ordinarily required 
 22.6   in the 10th grade and that for the school years beginning with 
 22.7   the 2000-2001 school year the child has already completed the 
 22.8   studies ordinarily required to graduate from high school; or 
 22.9      (3) That it is the wish of the parent, guardian, or other 
 22.10  person having control of the child, that the child attend for a 
 22.11  period or periods not exceeding in the aggregate three hours in 
 22.12  any week, a school for religious instruction conducted and 
 22.13  maintained by some church, or association of churches, or any 
 22.14  Sunday school association incorporated under the laws of this 
 22.15  state, or any auxiliary thereof.  This school for religious 
 22.16  instruction shall must be conducted and maintained in a place 
 22.17  other than a public school building, and in no event it must 
 22.18  not, in whole or in part, shall be conducted and maintained at 
 22.19  public expense.  However, a child may be absent from school on 
 22.20  such days as the child attends upon instruction according to the 
 22.21  ordinances of some church. 
 22.22     Sec. 35.  Minnesota Statutes 1996, section 120.101, 
 22.23  subdivision 10, is amended to read: 
 22.24     Subd. 10.  [ISSUING AND REPORTING EXCUSES.] The clerk or 
 22.25  any authorized officer of the school board shall must issue and 
 22.26  keep a record of such excuses, under such rules as the board may 
 22.27  from time to time establish. 
 22.28     Sec. 36.  Minnesota Statutes 1997 Supplement, section 
 22.29  120.1015, is amended to read: 
 22.30     120.1015 [LENGTH OF SCHOOL YEAR; DAYS OF INSTRUCTION.] 
 22.31     A school board's annual school calendar shall must include 
 22.32  at least three additional days of student instruction beyond the 
 22.33  number of days of student instruction the board formally adopted 
 22.34  as its school calendar at the beginning of the 1996-1997 school 
 22.35  year. 
 22.36     Sec. 37.  Minnesota Statutes 1996, section 120.102, 
 23.1   subdivision 1, is amended to read: 
 23.2      Subdivision 1.  [REPORTS TO SUPERINTENDENT.] The person in 
 23.3   charge of providing instruction to a child shall must submit the 
 23.4   following information to the superintendent of the district in 
 23.5   which the child resides: 
 23.6      (1) by October 1 of each school year, the name, age, and 
 23.7   address of each child receiving instruction; 
 23.8      (2) the name of each instructor and evidence of compliance 
 23.9   with one of the requirements specified in section 120.101, 
 23.10  subdivision 7; 
 23.11     (3) an annual instructional calendar showing that 
 23.12  instruction will occur on at least the number of days required 
 23.13  under section 120.101, subdivision 5b; and 
 23.14     (4) for each child instructed by a parent who meets only 
 23.15  the requirement of section 120.101, subdivision 7, clause (6), a 
 23.16  quarterly report card on the achievement of the child in each 
 23.17  subject area required in section 120.101, subdivision 6. 
 23.18     Sec. 38.  Minnesota Statutes 1996, section 120.102, 
 23.19  subdivision 3, is amended to read: 
 23.20     Subd. 3.  [EXEMPTIONS.] A nonpublic school, person, or 
 23.21  other institution that is accredited by an accrediting agency, 
 23.22  recognized according to section 123.935, or recognized by the 
 23.23  state board of education, is exempt from the requirements in 
 23.24  subdivisions 1 and 2, except for the requirement in subdivision 
 23.25  1, clause (1). 
 23.26     Sec. 39.  Minnesota Statutes 1996, section 120.102, 
 23.27  subdivision 4, is amended to read: 
 23.28     Subd. 4.  [REPORTS TO THE STATE.] A superintendent shall 
 23.29  must make an annual report to the commissioner of children, 
 23.30  families, and learning.  The report must include the following 
 23.31  information: 
 23.32     (1) the number of children residing in the district 
 23.33  attending nonpublic schools or receiving instruction from 
 23.34  persons or institutions other than a public school; 
 23.35     (2) the number of children in clause (1) who are in 
 23.36  compliance with section 120.101 and this section; and 
 24.1      (3) the names, ages, and addresses of children whom the 
 24.2   superintendent has determined are not in compliance with section 
 24.3   120.101 and this section.  
 24.4      Sec. 40.  Minnesota Statutes 1996, section 120.103, 
 24.5   subdivision 3, is amended to read: 
 24.6      Subd. 3.  [NOTICE TO PARENTS.] The superintendent shall 
 24.7   must notify the parent, in writing, if a child is alleged to be 
 24.8   receiving instruction in violation of sections 120.101 and 
 24.9   120.102.  The written notification shall must include a list of 
 24.10  the specific alleged violations. 
 24.11     Sec. 41.  Minnesota Statutes 1996, section 120.103, 
 24.12  subdivision 4, is amended to read: 
 24.13     Subd. 4.  [FACT-FINDING AND MEDIATION.] If the specified 
 24.14  alleged violations of the compulsory attendance requirements are 
 24.15  not corrected within 15 days of receipt of the written 
 24.16  notification, the superintendent shall must request fact-finding 
 24.17  and mediation services from the commissioner of children, 
 24.18  families, and learning. 
 24.19     Sec. 42.  Minnesota Statutes 1996, section 120.103, 
 24.20  subdivision 5, is amended to read: 
 24.21     Subd. 5.  [NOTICE TO COUNTY ATTORNEY.] If the alleged 
 24.22  violations are not corrected through the fact-finding and 
 24.23  mediation process under subdivision 4, the superintendent shall 
 24.24  must notify the county attorney of the alleged violations.  The 
 24.25  superintendent shall must notify the parents, by certified mail, 
 24.26  of the superintendent's intent to notify the county attorney of 
 24.27  the alleged violations. 
 24.28     Sec. 43.  Minnesota Statutes 1996, section 120.103, 
 24.29  subdivision 6, is amended to read: 
 24.30     Subd. 6.  [CRIMINAL COMPLAINT; PROSECUTION.] The county 
 24.31  attorney in the county in which the alleged violations have 
 24.32  occurred has jurisdiction to conduct a prosecution for 
 24.33  violations of section 120.101, 120.102, or 120.103.  A criminal 
 24.34  complaint may be filed in any court in the county exercising 
 24.35  criminal jurisdiction and shall must name the persons neglecting 
 24.36  or refusing to comply with section 120.101, 120.102, or 120.103. 
 25.1   After the complaint has been filed, a warrant shall must be 
 25.2   issued and proceedings in trial shall must commence as provided 
 25.3   by law in misdemeanor cases.  
 25.4      Sec. 44.  Minnesota Statutes 1996, section 120.11, is 
 25.5   amended to read: 
 25.6      120.11 [SCHOOL BOARDS AND TEACHERS, DUTIES.] 
 25.7      It shall be is the duty of each board through its clerk or 
 25.8   other authorized agent or employee, to report the names of 
 25.9   children required to attend school, with excuses, if any, 
 25.10  granted in such the district, to the superintendent or 
 25.11  principals thereof of the district, within the first week of 
 25.12  school.  Subsequent excuses granted shall must be forthwith 
 25.13  reported in the same manner.  The clerk or principal shall must 
 25.14  provide the teachers in the several schools supervised, with the 
 25.15  necessary information for the respective grades of school, 
 25.16  relating to the list of pupils with excuses granted.  On receipt 
 25.17  of the list of such pupils of school age and the excuses granted 
 25.18  Within five days after receiving the report, the clerk or 
 25.19  principals shall must report the names of children not excused, 
 25.20  who are not attending school, with the names and addresses of 
 25.21  their parents, to the district superintendent within five days 
 25.22  after receiving the report.  
 25.23     Sec. 45.  Minnesota Statutes 1996, section 120.14, is 
 25.24  amended to read: 
 25.25     120.14 [ATTENDANCE OFFICERS.] 
 25.26     The board of any district may authorize the employment of 
 25.27  attendance officers, who shall must investigate truancy or 
 25.28  nonattendance at school, make complaints, serve notice and 
 25.29  process, and attend to the enforcement of all laws and district 
 25.30  rules regarding school attendance.  When any attendance officer 
 25.31  learns of any case of habitual truancy or continued 
 25.32  nonattendance of any child required to attend school the officer 
 25.33  shall must immediately notify the person having control of such 
 25.34  the child to forthwith send to and keep the child in school.  
 25.35  The attendance officer shall must also refer a habitual truant 
 25.36  child as defined in section 260.015, subdivision 19, and the 
 26.1   child's parent or legal guardian to appropriate services and 
 26.2   procedures under chapter 260A, if available within the school 
 26.3   district.  Attendance officers or other designated school 
 26.4   officials shall must ensure that the notice required by section 
 26.5   260A.03 for a child who is a continuing truant is sent.  The 
 26.6   officer shall must act under the general supervision of 
 26.7   the district superintendent. 
 26.8      Sec. 46.  Minnesota Statutes 1996, section 120.73, 
 26.9   subdivision 1, is amended to read: 
 26.10     Subdivision 1.  A school board is authorized to require 
 26.11  payment of fees in the following areas: 
 26.12     (a) in any program where the resultant product, in excess 
 26.13  of minimum requirements and at the pupil's option, becomes the 
 26.14  personal property of the pupil; 
 26.15     (b) admission fees or charges for extra curricular 
 26.16  activities, where attendance is optional; 
 26.17     (c) a security deposit for the return of materials, 
 26.18  supplies, or equipment; 
 26.19     (d) personal physical education and athletic equipment and 
 26.20  apparel, although any pupil may personally provide it if it 
 26.21  meets reasonable requirements and standards relating to health 
 26.22  and safety established by the school board; 
 26.23     (e) items of personal use or products which that a student 
 26.24  has an option to purchase such as student publications, class 
 26.25  rings, annuals, and graduation announcements; 
 26.26     (f) fees specifically permitted by any other statute, 
 26.27  including but not limited to section 171.04, subdivision 1, 
 26.28  clause (1); 
 26.29     (g) field trips considered supplementary to a district 
 26.30  educational program; 
 26.31     (h) any authorized voluntary student health and accident 
 26.32  benefit plan; 
 26.33     (i) for the use of musical instruments owned or rented by 
 26.34  the district, a reasonable rental fee not to exceed either the 
 26.35  rental cost to the district or the annual depreciation plus the 
 26.36  actual annual maintenance cost for each instrument; 
 27.1      (j) transportation of pupils to and from extra curricular 
 27.2   activities conducted at locations other than school, where 
 27.3   attendance is optional; 
 27.4      (k) transportation of pupils to and from school for which 
 27.5   aid for fiscal year 1996 is not authorized under Minnesota 
 27.6   Statutes 1994, section 124.223, subdivision 1, and for which 
 27.7   levy for fiscal year 1996 is not authorized under Minnesota 
 27.8   Statutes 1994, section 124.226, subdivision 5, if a district 
 27.9   charging fees for transportation of pupils establishes 
 27.10  guidelines for that transportation to ensure that no pupil is 
 27.11  denied transportation solely because of inability to pay; 
 27.12     (l) motorcycle classroom education courses conducted 
 27.13  outside of regular school hours; provided the charge shall must 
 27.14  not exceed the actual cost of these courses to the school 
 27.15  district; 
 27.16     (m) transportation to and from post-secondary institutions 
 27.17  for pupils enrolled under the post-secondary enrollment options 
 27.18  program under section 123.39, subdivision 16.  Fees collected 
 27.19  for this service must be reasonable and shall must be used to 
 27.20  reduce the cost of operating the route.  Families who qualify 
 27.21  for mileage reimbursement under section 123.3514, subdivision 8, 
 27.22  may use their state mileage reimbursement to pay this fee.  If 
 27.23  no fee is charged, districts shall must allocate costs based on 
 27.24  the number of pupils riding the route.  
 27.25     Sec. 47.  Minnesota Statutes 1996, section 120.73, 
 27.26  subdivision 2a, is amended to read: 
 27.27     Subd. 2a.  Students may be required to furnish their own 
 27.28  transportation to and from an instructional community-based 
 27.29  employment station which that is part of an approved 
 27.30  occupational experience secondary vocational program.  As an 
 27.31  alternative, a school board may require the payment of 
 27.32  reasonable fees for transportation to and from these 
 27.33  instructional community-based employment stations.  This 
 27.34  subdivision shall only be applied applies to students who 
 27.35  receive remuneration for their participation in these programs.  
 27.36     Sec. 48.  Minnesota Statutes 1996, section 120.73, 
 28.1   subdivision 2b, is amended to read: 
 28.2      Subd. 2b.  [SCHOOL UNIFORMS.] Notwithstanding section 
 28.3   120.74, a school board may require students to furnish or 
 28.4   purchase clothing that constitutes a school uniform if the board 
 28.5   has adopted a uniform requirement or program for the student's 
 28.6   school.  In adopting a uniform requirement, the board shall 
 28.7   promote student, staff, parent, and community involvement in the 
 28.8   program and account for the financial ability of students to 
 28.9   purchase uniforms.  
 28.10     Sec. 49.  Minnesota Statutes 1996, section 120.73, 
 28.11  subdivision 3, is amended to read: 
 28.12     Subd. 3.  Sections 120.71 to 120.76 shall may not preclude 
 28.13  the operation of a school store wherein where pupils may 
 28.14  purchase school supplies and materials.  
 28.15     Sec. 50.  Minnesota Statutes 1996, section 120.73, 
 28.16  subdivision 4, is amended to read: 
 28.17     Subd. 4.  A school board may waive any such deposit or fee 
 28.18  if any pupil or the pupil's parent or guardian is unable to pay 
 28.19  it. 
 28.20     Sec. 51.  Minnesota Statutes 1996, section 120.74, is 
 28.21  amended to read: 
 28.22     120.74 [PROHIBITED FEES.] 
 28.23     Subdivision 1.  (a) A school board is not authorized to 
 28.24  charge fees in the following areas: 
 28.25     (1) textbooks, workbooks, art materials, laboratory 
 28.26  supplies, towels; 
 28.27     (2) supplies necessary for participation in any 
 28.28  instructional course except as authorized in sections 120.73 and 
 28.29  120.75; 
 28.30     (3) field trips which that are required as a part of a 
 28.31  basic education program or course; 
 28.32     (4) graduation caps, gowns, any specific form of dress 
 28.33  necessary for any educational program, and diplomas; 
 28.34     (5) instructional costs for necessary school personnel 
 28.35  employed in any course or educational program required for 
 28.36  graduation; 
 29.1      (6) library books required to be utilized for any 
 29.2   educational course or program; 
 29.3      (7) admission fees, dues, or fees for any activity the 
 29.4   pupil is required to attend; 
 29.5      (8) any admission or examination cost for any required 
 29.6   educational course or program; 
 29.7      (9) locker rentals; 
 29.8      (10) transportation of pupils (i) for which state 
 29.9   transportation aid for fiscal year 1996 is authorized pursuant 
 29.10  to Minnesota Statutes 1994, section 124.223, or (ii) for which a 
 29.11  levy for fiscal year 1996 is authorized under Minnesota Statutes 
 29.12  1994, section 124.226, subdivision 5. 
 29.13     (b) Notwithstanding paragraph (a), clauses (1) and (6), a 
 29.14  school board may charge fees for textbooks, workbooks, and 
 29.15  library books, lost or destroyed by students.  The board must 
 29.16  annually notify parents or guardians and students about its 
 29.17  policy to charge a fee under this paragraph. 
 29.18     Subd. 2.  No pupil's rights or privileges, including the 
 29.19  receipt of grades or diplomas may be denied or abridged for 
 29.20  nonpayment of fees; but this provision shall does not prohibit a 
 29.21  school district from maintaining any action provided by law for 
 29.22  the collection of such fees authorized by sections 120.73 and 
 29.23  120.75. 
 29.24     Sec. 52.  Minnesota Statutes 1996, section 120.75, is 
 29.25  amended to read: 
 29.26     120.75 [HEARING.] 
 29.27     Subdivision 1.  [PUBLIC HEARING.] Prior to Before the 
 29.28  initiation of any fee not authorized or prohibited by sections 
 29.29  120.73 and 120.74, the local school board shall must hold a 
 29.30  public hearing within the district upon three weeks published 
 29.31  notice in the district's official newspaper, or such notice as 
 29.32  is otherwise required for a regular school board meeting given 
 29.33  three weeks prior to before the hearing on the proposed adoption 
 29.34  of the policy. 
 29.35     Sec. 53.  Minnesota Statutes 1996, section 120.76, is 
 29.36  amended to read: 
 30.1      120.76 [POST-SECONDARY INSTRUCTIONAL PROGRAMS.] 
 30.2      Sections 120.71 to 120.76 shall may not be construed to 
 30.3   prohibit a school board from charging reasonable fees for goods 
 30.4   and services provided in connection with any post-secondary 
 30.5   instructional program, including but not limited to vocational 
 30.6   technical, veteran farmer cooperative training, and community 
 30.7   education programs, and continuing education and evening school 
 30.8   programs other than those conducted pursuant to section 124.26.  
 30.9      Sec. 54.  Minnesota Statutes 1996, section 123.35, 
 30.10  subdivision 8a, is amended to read: 
 30.11     Subd. 8a.  [SECONDARY SCHOOL PROGRAMS.] The board may 
 30.12  permit a person who is over the age of 21 or who has graduated 
 30.13  from high school to enroll as a part-time student in a class or 
 30.14  program at a secondary school if there is space available.  In 
 30.15  determining if there is space available, full-time public school 
 30.16  students, shared-time students, and students returning to 
 30.17  complete a regular course of study shall be given priority over 
 30.18  part-time students seeking enrollment pursuant to this 
 30.19  subdivision.  The following are not prerequisites for enrollment:
 30.20     (a) (1) residency in the school district; 
 30.21     (b) (2) United States citizenship; or 
 30.22     (c) (3) for a person over the age of 21, a high school 
 30.23  diploma or equivalency certificate.  A person may enroll in a 
 30.24  class or program even if that person attends evening school, an 
 30.25  adult or continuing education, or a post-secondary educational 
 30.26  program or institution. 
 30.27     Sec. 55.  Minnesota Statutes 1996, section 127.19, is 
 30.28  amended to read: 
 30.29     127.19 [OFFICERS, TEACHERS; NEGLECT OF DUTY; PENALTY.] 
 30.30     Any school officer, truant officer, public or nonpublic 
 30.31  school teacher, principal, district superintendent, or person 
 30.32  providing instruction other than a parent refusing, willfully 
 30.33  failing, or neglecting to perform any duty imposed by sections 
 30.34  120.101 to 120.14 is guilty of a misdemeanor; and, upon 
 30.35  conviction,.  All persons found guilty shall be punished for 
 30.36  each offense by a fine of not more than $10 or by imprisonment 
 31.1   for not more than ten days.  All fines, when collected, shall be 
 31.2   paid into the county treasury for the benefit of the school 
 31.3   district in which the offense is committed. 
 31.4      Sec. 56.  Minnesota Statutes 1996, section 127.20, is 
 31.5   amended to read: 
 31.6      127.20 [VIOLATIONS; PENALTIES.] 
 31.7      Any person who fails or refuses to provide for instruction 
 31.8   of a child of whom the person has legal custody, and who is 
 31.9   required by section 120.101, subdivision 5, to receive 
 31.10  instruction, when notified so to do by a truant officer or other 
 31.11  official, or any person who induces or attempts to induce any 
 31.12  such child unlawfully to be absent from school, or who knowingly 
 31.13  harbors or employs, while school is in session, any child 
 31.14  unlawfully absent from school, shall be guilty of a 
 31.15  misdemeanor.  Any fines collected shall be paid into the county 
 31.16  treasury for the benefit of the school district in which the 
 31.17  offense is committed. 
 31.18     Sec. 57.  [REPEALER.] 
 31.19     Minnesota Statutes 1996, section 120.90, is repealed. 
 31.20     Sec. 58.  [INSTRUCTION TO REVISOR.] 
 31.21     The revisor of statutes shall renumber each section of 
 31.22  Minnesota Statutes listed in column A with the number listed in 
 31.23  column B.  The revisor shall also make necessary cross-reference 
 31.24  changes consistent with the renumbering. 
 31.25        Column A                        Column B 
 31.26       120.01                         120A.01
 31.27       120.011                        120A.02
 31.28       120.0112                       120A.03
 31.29       120.02, subd. 1                120A.04, subd. 1
 31.30               subd. 2                         subd. 4
 31.31               subd. 3                         subd. 8
 31.32               subd. 4                         subd. 3
 31.33               subd. 5                         subd. 6
 31.34               subd. 6                         subd. 16
 31.35               subd. 8                         subd. 7
 31.36               subd. 9                         subd. 2
 32.1                subd. 12                        subd. 15
 32.2                subd. 13                        subd. 5
 32.3                subd. 14                        subd. 10
 32.4                subd. 15                        subd. 14
 32.5                subd. 18                        subd. 12
 32.6        120.05, subd. 2                120A.04, subd. 9
 32.7                subd. 3                         subd. 11
 32.8                subd. 4                         subd. 13
 32.9                subd. 5                         subd. 17
 32.10       120.06, subd. 1                120A.10, subd. 1
 32.11               subd. 2a                        subd. 2
 32.12               subd. 3                         subd. 3
 32.13       123.35, subd. 8a               120A.11, subd. 1
 32.14               subd. 9                         subd. 2
 32.15       120.062, subd. 2               120A.12, subd. 1
 32.16                subd. 3                        subd. 2
 32.17                subd. 4                        subd. 3
 32.18                subd. 5                        subd. 4
 32.19                subd. 6                        subd. 5
 32.20                subd. 7                        subd. 6
 32.21                subd. 8a                       subd. 7
 32.22                subd. 9                        subd. 8
 32.23                subd. 10                       subd. 9
 32.24                subd. 11                       subd. 10
 32.25                subd. 12                       subd. 11
 32.26       120.0621, subd. 1              120A.13, subd. 1
 32.27                 subd. 2                       subd. 2
 32.28                 subd. 3                       subd. 3
 32.29                 subd. 3a                      subd. 4
 32.30                 subd. 4                       subd. 5
 32.31                 subd. 5a                      subd. 6
 32.32                 subd. 5b                      subd. 7
 32.33                 subd. 6                       subd. 8
 32.34                 subd. 7                       subd. 9
 32.35       120.08                         120A.14
 32.36       120.075, subd. 1               120A.15, subd. 1
 33.1                 subd. 1a                       subd. 2
 33.2                 subd. 2                        subd. 3
 33.3                 subd. 3                        subd. 4
 33.4                 subd. 3a                       subd. 5
 33.5                 subd. 4                        subd. 6
 33.6                 subd. 5                        subd. 7
 33.7        120.0751                       120A.16
 33.8        120.0752                       120A.17
 33.9        120.063                        120A.19
 33.10       120.101, subd. 1               120A.20, subd. 1
 33.11                subd. 2                        subd. 2
 33.12                subd. 3                        subd. 3
 33.13                subd. 4                        subd. 4
 33.14                subd. 5                        subd. 5
 33.15                subd. 5a                       subd. 6
 33.16                subd. 5c                       subd. 7
 33.17                subd. 5d                       subd. 8
 33.18                subd. 6                        subd. 9
 33.19                subd. 7                        subd. 10
 33.20                subd. 8                        subd. 11
 33.21                subd. 9                        subd. 12
 33.22                subd. 10                       subd. 13
 33.23       120.102                        120A.21
 33.24       120.103                        120A.22
 33.25       120.11                         120A.23
 33.26       120.14                         120A.24
 33.27       120.19                         120A.25
 33.28       120.20                         120A.26
 33.29       120.1015                       120A.28
 33.30       120.106                        120A.29
 33.31       120.73, subd. 1                120A.40, subd. 1
 33.32               subd. 2                         subd. 2
 33.33               subd. 2a                        subd. 3
 33.34               subd. 2b                        subd. 4
 33.35               subd. 3                         subd. 5
 33.36               subd. 4                         subd. 6
 34.1        120.74                         120A.41
 34.2        120.75                         120A.42
 34.3        120.76                         120A.43
 34.4        123.35, subd. 8b               120A.44
 34.5        121.11, subd. 14               120A.45
 34.6                              ARTICLE 2 
 34.7                             CHAPTER 120B 
 34.8                      EDUCATIONAL OPPORTUNITIES 
 34.9      Section 1.  [120B.01] [DEFINITIONS.] 
 34.10     For purposes of this chapter, the words defined in section 
 34.11  120.02 have the same meaning. 
 34.12     Sec. 2.  Minnesota Statutes 1996, section 120.064, 
 34.13  subdivision 4, is amended to read:  
 34.14     Subd. 4.  [FORMATION OF SCHOOL.] (a) A sponsor may 
 34.15  authorize one or more licensed teachers under section 125.05, 
 34.16  subdivision 1, to operate a charter school subject to approval 
 34.17  by the state board of education.  If a school board elects not 
 34.18  to sponsor a charter school, the applicant may appeal the school 
 34.19  board's decision to the state board of education if two members 
 34.20  of the school board voted to sponsor the school.  If the state 
 34.21  board authorizes the school, the state board shall must sponsor 
 34.22  the school according to this section.  The school shall must be 
 34.23  organized and operated as a cooperative under chapter 308A or 
 34.24  nonprofit corporation under chapter 317A.  
 34.25     (b) Before the operators may form and operate a school, the 
 34.26  sponsor must file an affidavit with the state board of education 
 34.27  stating its intent to authorize a charter school.  The affidavit 
 34.28  must state the terms and conditions under which the sponsor 
 34.29  would authorize a charter school.  The state board must approve 
 34.30  or disapprove the sponsor's proposed authorization within 60 
 34.31  days of receipt of the affidavit.  Failure to obtain state board 
 34.32  approval precludes a sponsor from authorizing the charter school 
 34.33  that was the subject of the affidavit.  
 34.34     (c) The operators authorized to organize and operate a 
 34.35  school shall must hold an election for members of the school's 
 34.36  board of directors in a timely manner after the school is 
 35.1   operating.  Any staff members who are employed at the school, 
 35.2   including teachers providing instruction under a contract with a 
 35.3   cooperative, and all parents of children enrolled in the school 
 35.4   may participate in the election.  Licensed teachers employed at 
 35.5   the school, including teachers providing instruction under a 
 35.6   contract with a cooperative, must be a majority of the members 
 35.7   of the board of directors.  A provisional board may operate 
 35.8   before the election of the school's board of directors.  Board 
 35.9   of director meetings must comply with section 471.705. 
 35.10     (d) The granting or renewal of a charter by a sponsoring 
 35.11  entity shall must not be conditioned upon the bargaining unit 
 35.12  status of the employees of the school.  
 35.13     Sec. 3.  Minnesota Statutes 1996, section 120.064, 
 35.14  subdivision 4a, is amended to read: 
 35.15     Subd. 4a.  [CONVERSION OF EXISTING SCHOOLS.] A school board 
 35.16  may convert one or more of its existing schools to charter 
 35.17  schools under this section if 90 percent of the full-time 
 35.18  teachers at the school sign a petition seeking conversion.  The 
 35.19  conversion must occur at the beginning of an academic year.  
 35.20     Sec. 4.  Minnesota Statutes 1996, section 120.064, 
 35.21  subdivision 5, is amended to read: 
 35.22     Subd. 5.  [CONTRACT.] The sponsor's authorization for a 
 35.23  charter school shall must be in the form of a written contract 
 35.24  signed by the sponsor and the board of directors of the charter 
 35.25  school.  The contract for a charter school shall must be in 
 35.26  writing and contain at least the following: 
 35.27     (1) a description of a program that carries out one or more 
 35.28  of the purposes in subdivision 1; 
 35.29     (2) specific outcomes pupils are to achieve under 
 35.30  subdivision 10; 
 35.31     (3) admission policies and procedures; 
 35.32     (4) management and administration of the school; 
 35.33     (5) requirements and procedures for program and financial 
 35.34  audits; 
 35.35     (6) how the school will comply with subdivisions 8, 13, 15, 
 35.36  and 21; 
 36.1      (7) assumption of liability by the charter school; 
 36.2      (8) types and amounts of insurance coverage to be obtained 
 36.3   by the charter school; and 
 36.4      (9) the term of the contract, which may be up to three 
 36.5   years.  
 36.6      Sec. 5.  Minnesota Statutes 1996, section 120.064, 
 36.7   subdivision 7, is amended to read: 
 36.8      Subd. 7.  [PUBLIC STATUS; EXEMPTION FROM STATUTES AND 
 36.9   RULES.] A charter school is a public school and is part of the 
 36.10  state's system of public education.  Except as provided in this 
 36.11  section, a charter school is exempt from all statutes and rules 
 36.12  applicable to a school, a school board, or a school district, 
 36.13  although it may elect to comply with one or more provisions of 
 36.14  statutes or rules.  
 36.15     Sec. 6.  Minnesota Statutes 1997 Supplement, section 
 36.16  120.064, subdivision 8, is amended to read: 
 36.17     Subd. 8.  [REQUIREMENTS.] (a) A charter school shall meet 
 36.18  all applicable state and local health and safety requirements. 
 36.19     (b) A school sponsored by a school board may be located in 
 36.20  any district, unless the school board of the district of the 
 36.21  proposed location disapproves by written resolution.  If such a 
 36.22  school board denies a request to locate within its boundaries a 
 36.23  charter school sponsored by another school board, the sponsoring 
 36.24  school board may appeal to the state board of education.  If the 
 36.25  state board authorizes the school, the state board shall must 
 36.26  sponsor the school.  
 36.27     (c) A charter school must be nonsectarian in its programs, 
 36.28  admission policies, employment practices, and all other 
 36.29  operations.  A sponsor may not authorize a charter school or 
 36.30  program that is affiliated with a nonpublic sectarian school or 
 36.31  a religious institution. 
 36.32     (d) Charter schools shall must not be used as a method of 
 36.33  providing education or generating revenue for students who are 
 36.34  being home-schooled. 
 36.35     (e) The primary focus of a charter school must be to 
 36.36  provide a comprehensive program of instruction for at least one 
 37.1   grade or age group from five through 18 years of age.  
 37.2   Instruction may be provided to people younger than five years 
 37.3   and older than 18 years of age. 
 37.4      (f) A charter school may not charge tuition. 
 37.5      (g) A charter school is subject to and shall must comply 
 37.6   with chapter 363 and section 126.21. 
 37.7      (h) A charter school is subject to and shall must comply 
 37.8   with The Pupil Fair Dismissal Act, sections 127.26 to 127.39, 
 37.9   and the Minnesota public school fee law, sections 120.71 to 
 37.10  120.76. 
 37.11     (i) A charter school is subject to the same financial 
 37.12  audits, audit procedures, and audit requirements as a school 
 37.13  district.  The audit must be consistent with the requirements of 
 37.14  sections 121.904 to 121.917, except to the extent deviations are 
 37.15  necessary because of the program at the school.  The department 
 37.16  of children, families, and learning, state auditor, or 
 37.17  legislative auditor may conduct financial, program, or 
 37.18  compliance audits. 
 37.19     (j) A charter school is a school district for the purposes 
 37.20  of tort liability under chapter 466.  
 37.21     Sec. 7.  Minnesota Statutes 1996, section 120.064, 
 37.22  subdivision 9, is amended to read: 
 37.23     Subd. 9.  [ADMISSION REQUIREMENTS.] A charter school may 
 37.24  limit admission to: 
 37.25     (1) pupils within an age group or grade level; 
 37.26     (2) people who are eligible to participate in the 
 37.27  graduation incentives program under section 126.22; or 
 37.28     (3) residents of a specific geographic area where the 
 37.29  percentage of the population of non-Caucasian people of that 
 37.30  area is greater than the percentage of the non-Caucasian 
 37.31  population in the congressional district in which the geographic 
 37.32  area is located, and as long as the school reflects the racial 
 37.33  and ethnic diversity of the specific area. 
 37.34     A charter school shall enroll an eligible pupil who submits 
 37.35  a timely application, unless the number of applications exceeds 
 37.36  the capacity of a program, class, grade level, or building.  In 
 38.1   this case, pupils shall must be accepted by lot. 
 38.2      A charter school may not limit admission to pupils on the 
 38.3   basis of intellectual ability, measures of achievement or 
 38.4   aptitude, or athletic ability.  
 38.5      Sec. 8.  Minnesota Statutes 1997 Supplement, section 
 38.6   120.064, subdivision 10, is amended to read: 
 38.7      Subd. 10.  [PUPIL PERFORMANCE.] A charter school must 
 38.8   design its programs to at least meet the outcomes adopted by the 
 38.9   state board of education for public school students.  In the 
 38.10  absence of state board requirements, the school must meet the 
 38.11  outcomes contained in the contract with the sponsor.  The 
 38.12  achievement levels of the outcomes contained in the contract may 
 38.13  exceed the achievement levels of any outcomes adopted by the 
 38.14  state board for public school students.  
 38.15     Sec. 9.  Minnesota Statutes 1996, section 120.064, 
 38.16  subdivision 11, is amended to read: 
 38.17     Subd. 11.  [EMPLOYMENT AND OTHER OPERATING MATTERS.] A 
 38.18  charter school shall must employ or contract with necessary 
 38.19  teachers, as defined by section 125.03, subdivision 1, who hold 
 38.20  valid licenses to perform the particular service for which they 
 38.21  are employed in the school.  The school may employ necessary 
 38.22  employees who are not required to hold teaching licenses to 
 38.23  perform duties other than teaching and may contract for other 
 38.24  services.  The school may discharge teachers and nonlicensed 
 38.25  employees. 
 38.26     The board of directors also shall decide matters related to 
 38.27  the operation of the school, including budgeting, curriculum and 
 38.28  operating procedures.  
 38.29     Sec. 10.  Minnesota Statutes 1996, section 120.064, 
 38.30  subdivision 12, is amended to read: 
 38.31     Subd. 12.  [PUPILS WITH A DISABILITY.] A charter school 
 38.32  must comply with sections 120.03 and 120.17 and rules relating 
 38.33  to the education of pupils with a disability as though it were a 
 38.34  school district.  
 38.35     Sec. 11.  Minnesota Statutes 1996, section 120.064, 
 38.36  subdivision 13, is amended to read:  
 39.1      Subd. 13.  [LENGTH OF SCHOOL YEAR.] A charter school shall 
 39.2   must provide instruction each year for at least the number of 
 39.3   days required by section 120.101, subdivision 5.  It may provide 
 39.4   instruction throughout the year according to sections 120.59 to 
 39.5   120.67 or 121.585.  
 39.6      Sec. 12.  Minnesota Statutes 1996, section 120.064, 
 39.7   subdivision 14, is amended to read: 
 39.8      Subd. 14.  [REPORTS.] A charter school must report at least 
 39.9   annually to its sponsor and the state board of education the 
 39.10  information required by the sponsor or the state board.  The 
 39.11  reports are public data under chapter 13.  
 39.12     Sec. 13.  Minnesota Statutes 1997 Supplement, section 
 39.13  120.064, subdivision 14a, is amended to read: 
 39.14     Subd. 14a.  [REVIEW AND COMMENT.] The department shall must 
 39.15  review and comment on the evaluation, by the chartering school 
 39.16  district, of the performance of a charter school before the 
 39.17  charter school's contract is renewed.  The information from the 
 39.18  review and comment shall be reported to the state board of 
 39.19  education in a timely manner.  Periodically, the state board 
 39.20  shall report trends or suggestions based on the evaluation of 
 39.21  charter school contracts to the education committees of the 
 39.22  state legislature.  
 39.23     Sec. 14.  Minnesota Statutes 1996, section 120.064, 
 39.24  subdivision 15, is amended to read: 
 39.25     Subd. 15.  [TRANSPORTATION.] (a) By July 1 of each year, a 
 39.26  charter school shall must notify the district in which the 
 39.27  school is located and the department of children, families, and 
 39.28  learning if it will provide transportation for pupils 
 39.29  enrolled at in the school for the fiscal year. 
 39.30     (b) If a charter school elects to provide transportation 
 39.31  for pupils, the transportation shall must be provided by the 
 39.32  charter school within the district in which the charter school 
 39.33  is located.  The state shall must pay transportation aid to the 
 39.34  charter school according to section 124.248, subdivision 1a. 
 39.35     For pupils who reside outside the district in which the 
 39.36  charter school is located, the charter school is not required to 
 40.1   provide or pay for transportation between the pupil's residence 
 40.2   and the border of the district in which the charter school is 
 40.3   located.  A parent may be reimbursed by the charter school for 
 40.4   costs of transportation from the pupil's residence to the border 
 40.5   of the district in which the charter school is located if the 
 40.6   pupil is from a family whose income is at or below the poverty 
 40.7   level, as determined by the federal government.  The 
 40.8   reimbursement may not exceed the pupil's actual cost of 
 40.9   transportation or 15 cents per mile traveled, whichever is 
 40.10  less.  Reimbursement may not be paid for more than 250 miles per 
 40.11  week.  
 40.12     At the time a pupil enrolls in a charter school, the 
 40.13  charter school shall must provide the parent or guardian with 
 40.14  information regarding the transportation.  
 40.15     (c) If a charter school does not elect to provide 
 40.16  transportation, transportation for pupils enrolled at the school 
 40.17  shall must be provided by the district in which the school is 
 40.18  located, according to sections 120.062, subdivision 9, and 
 40.19  123.39, subdivision 6, for a pupil residing in the same district 
 40.20  in which the charter school is located.  Transportation may be 
 40.21  provided by the district in which the school is located, 
 40.22  according to sections 120.062, subdivision 9, and 123.39, 
 40.23  subdivision 6, for a pupil residing in a different district.  
 40.24     Sec. 15.  Minnesota Statutes 1996, section 120.064, 
 40.25  subdivision 17, is amended to read: 
 40.26     Subd. 17.  [INITIAL COSTS.] A sponsor may authorize a 
 40.27  charter school before the applicant has secured its space, 
 40.28  equipment, facilities, and personnel if the applicant indicates 
 40.29  the authority is necessary for it to raise working capital.  A 
 40.30  sponsor may not authorize a school before the state board of 
 40.31  education has approved the authorization.  
 40.32     Sec. 16.  Minnesota Statutes 1996, section 120.064, 
 40.33  subdivision 19, is amended to read: 
 40.34     Subd. 19.  [LEAVE TO TEACH IN A CHARTER SCHOOL.] If a 
 40.35  teacher employed by a school district makes a written request 
 40.36  for an extended leave of absence to teach at a charter school, 
 41.1   the school district must grant the leave.  The school district 
 41.2   must grant a leave for any number of years requested by the 
 41.3   teacher, and must extend the leave at the teacher's request.  
 41.4   The school district may require that the request for a leave or 
 41.5   extension of leave be made up to 90 days before the teacher 
 41.6   would otherwise have to report for duty.  Except as otherwise 
 41.7   provided in this subdivision and except for section 125.60, 
 41.8   subdivision 6a, the leave is governed by section 125.60, 
 41.9   including, but not limited to, reinstatement, notice of 
 41.10  intention to return, seniority, salary, and insurance. 
 41.11     During a leave, the teacher may continue to aggregate 
 41.12  benefits and credits in the teachers' retirement association 
 41.13  account by paying both the employer and employee contributions 
 41.14  based upon the annual salary of the teacher for the last full 
 41.15  pay period before the leave began.  The retirement association 
 41.16  may impose reasonable requirements to efficiently administer 
 41.17  this subdivision.  
 41.18     Sec. 17.  Minnesota Statutes 1996, section 120.064, 
 41.19  subdivision 20, is amended to read: 
 41.20     Subd. 20.  [COLLECTIVE BARGAINING.] Employees of the board 
 41.21  of directors of a charter school may, if otherwise eligible, 
 41.22  organize under chapter 179A and comply with its provisions.  The 
 41.23  board of directors of a charter school is a public employer, for 
 41.24  the purposes of chapter 179A, upon formation of one or more 
 41.25  bargaining units at the school.  Bargaining units at the school 
 41.26  shall must be separate from any other units within the 
 41.27  sponsoring district, except that bargaining units may remain 
 41.28  part of the appropriate unit within the sponsoring district, if 
 41.29  the employees of the school, the board of directors of the 
 41.30  school, the exclusive representative of the appropriate unit in 
 41.31  the sponsoring district, and the board of the sponsoring 
 41.32  district agree to include the employees in the appropriate unit 
 41.33  of the sponsoring district.  
 41.34     Sec. 18.  Minnesota Statutes 1997 Supplement, section 
 41.35  120.064, subdivision 20a, is amended to read: 
 41.36     Subd. 20a.  [TEACHER AND OTHER EMPLOYEE RETIREMENT.] (a) 
 42.1   Teachers in a charter school shall must be public school 
 42.2   teachers for the purposes of chapters 354 and 354a. 
 42.3      (b) Except for teachers under paragraph (a), employees in a 
 42.4   charter school shall must be public employees for the purposes 
 42.5   of chapter 353.  
 42.6      Sec. 19.  Minnesota Statutes 1996, section 120.064, 
 42.7   subdivision 21, is amended to read: 
 42.8      Subd. 21.  [CAUSES FOR NONRENEWAL OR TERMINATION.] (a) The 
 42.9   duration of the contract with a sponsor shall must be for the 
 42.10  term contained in the contract according to subdivision 5.  The 
 42.11  sponsor may or may not renew a contract at the end of the term 
 42.12  for any ground listed in paragraph (b).  A sponsor may 
 42.13  unilaterally terminate a contract during the term of the 
 42.14  contract for any ground listed in paragraph (b).  At least 60 
 42.15  days before not renewing or terminating a contract, the sponsor 
 42.16  shall notify the board of directors of the charter school of the 
 42.17  proposed action in writing.  The notice shall state the grounds 
 42.18  for the proposed action in reasonable detail and that the 
 42.19  charter school's board of directors may request in writing an 
 42.20  informal hearing before the sponsor within 14 days of receiving 
 42.21  notice of nonrenewal or termination of the contract.  Failure by 
 42.22  the board of directors to make a written request for a hearing 
 42.23  within the 14-day period shall be treated as acquiescence to the 
 42.24  proposed action.  Upon receiving a timely written request for a 
 42.25  hearing, the sponsor shall give reasonable notice to the charter 
 42.26  school's board of directors of the hearing date.  The sponsor 
 42.27  shall conduct an informal hearing before taking final action.  
 42.28  The sponsor shall take final action to renew or not renew a 
 42.29  contract by the last day of classes in the school year.  If the 
 42.30  sponsor is a local school board, the school's board of directors 
 42.31  may appeal the sponsor's decision to the state board of 
 42.32  education.  
 42.33     (b) A contract may be terminated or not renewed upon any of 
 42.34  the following grounds: 
 42.35     (1) failure to meet the requirements for pupil performance 
 42.36  contained in the contract; 
 43.1      (2) failure to meet generally accepted standards of fiscal 
 43.2   management; 
 43.3      (3) for violations of law; or 
 43.4      (4) other good cause shown. 
 43.5      If a contract is terminated or not renewed, the school 
 43.6   shall must be dissolved according to the applicable provisions 
 43.7   of chapter 308A or 317A.  
 43.8      Sec. 20.  Minnesota Statutes 1996, section 120.064, 
 43.9   subdivision 22, is amended to read: 
 43.10     Subd. 22.  [PUPIL ENROLLMENT.] If a contract is not renewed 
 43.11  or is terminated according to subdivision 21, a pupil who 
 43.12  attended the school, siblings of the pupil, or another pupil who 
 43.13  resides in the same place as the pupil may enroll in the 
 43.14  resident district or may submit an application to a nonresident 
 43.15  district according to section 120.062 at any time.  Applications 
 43.16  and notices required by section 120.062 shall must be processed 
 43.17  and provided in a prompt manner.  The application and notice 
 43.18  deadlines in section 120.062 do not apply under these 
 43.19  circumstances.  
 43.20     Sec. 21.  Minnesota Statutes 1996, section 120.064, 
 43.21  subdivision 24, is amended to read: 
 43.22     Subd. 24.  [IMMUNITY.] The state board of education, 
 43.23  members of the state board, a sponsor, members of the board of a 
 43.24  sponsor in their official capacity, and employees of a sponsor 
 43.25  are immune from civil or criminal liability with respect to all 
 43.26  activities related to a charter school they approve or sponsor.  
 43.27  The board of directors shall obtain at least the amount of and 
 43.28  types of insurance required by the contract, according to 
 43.29  subdivision 5.  
 43.30     Sec. 22.  Minnesota Statutes 1996, section 120.17, 
 43.31  subdivision 1, is amended to read: 
 43.32     Subdivision 1.  [SPECIAL INSTRUCTION FOR CHILDREN WITH A 
 43.33  DISABILITY.] Every district shall must provide special 
 43.34  instruction and services, either within the district or in 
 43.35  another district, for children with a disability who are 
 43.36  residents of the district and who are disabled as set forth in 
 44.1   section 120.03.  Notwithstanding any age limits in laws to the 
 44.2   contrary, special instruction and services must be provided from 
 44.3   birth until September 1 after the child with a disability 
 44.4   becomes 22 years old but shall not extend beyond secondary 
 44.5   school or its equivalent, except as provided in section 126.22, 
 44.6   subdivision 2.  Local health, education, and social service 
 44.7   agencies shall must refer children under age five who are known 
 44.8   to need or suspected of needing special instruction and services 
 44.9   to the school district.  Districts with less than the minimum 
 44.10  number of eligible children with a disability as determined by 
 44.11  the state board shall must cooperate with other districts to 
 44.12  maintain a full range of programs for education and services for 
 44.13  children with a disability.  This subdivision does not alter the 
 44.14  compulsory attendance requirements of section 120.101.  
 44.15     Sec. 23.  Minnesota Statutes 1996, section 120.17, 
 44.16  subdivision 1b, is amended to read: 
 44.17     Subd. 1b.  [HIGH SCHOOL DIPLOMA.] Upon completion of 
 44.18  secondary school or the equivalent, a pupil with a disability 
 44.19  who satisfactorily attains the objectives in the pupil's 
 44.20  individual education plan shall must be granted a high school 
 44.21  diploma that is identical to the diploma granted to a pupil 
 44.22  without a disability.  
 44.23     Sec. 24.  Minnesota Statutes 1996, section 120.17, 
 44.24  subdivision 2, is amended to read: 
 44.25     Subd. 2.  [METHOD OF SPECIAL INSTRUCTION.] (a) Special 
 44.26  instruction and services for children with a disability must be 
 44.27  based on the assessment and individual education plan.  The 
 44.28  instruction and services may be provided by one or more of the 
 44.29  following methods: 
 44.30     (1) in connection with attending regular elementary and 
 44.31  secondary school classes; 
 44.32     (2) establishment of special classes; 
 44.33     (3) at the home or bedside of the child; 
 44.34     (4) in other districts; 
 44.35     (5) instruction and services by special education 
 44.36  cooperative centers established under this section, or in 
 45.1   another member district of the cooperative center to which the 
 45.2   resident district of the child with a disability belongs; 
 45.3      (6) in a state residential school or a school department of 
 45.4   a state institution approved by the commissioner; 
 45.5      (7) in other states; 
 45.6      (8) by contracting with public, private, or voluntary 
 45.7   agencies; 
 45.8      (9) for children under age five and their families, 
 45.9   programs and services established through collaborative efforts 
 45.10  with other agencies; 
 45.11     (10) for children under age five and their families, 
 45.12  programs in which children with a disability are served with 
 45.13  children without a disability; and 
 45.14     (11) any other method approved by the commissioner. 
 45.15     (b) Preference shall be given to providing special 
 45.16  instruction and services to children under age three and their 
 45.17  families in the residence of the child with the parent or 
 45.18  primary caregiver, or both, present. 
 45.19     (c) The primary responsibility for the education of a child 
 45.20  with a disability shall must remain with the district of the 
 45.21  child's residence regardless of which method of providing 
 45.22  special instruction and services is used.  If a district other 
 45.23  than a child's district of residence provides special 
 45.24  instruction and services to the child, then the district 
 45.25  providing the special instruction and services shall must notify 
 45.26  the child's district of residence before the child's individual 
 45.27  education plan is developed and shall must provide the district 
 45.28  of residence an opportunity to participate in the plan's 
 45.29  development.  The district of residence must inform the parents 
 45.30  of the child about the methods of instruction that are available.
 45.31     (d) Paragraphs (e) to (i) may be cited as the "Blind 
 45.32  Persons' Literacy Rights and Education Act." 
 45.33     (e) The following definitions apply to paragraphs (f) to 
 45.34  (i). 
 45.35     "Blind student" means an individual who is eligible for 
 45.36  special educational services and who: 
 46.1      (1) has a visual acuity of 20/200 or less in the better eye 
 46.2   with correcting lenses or has a limited field of vision such 
 46.3   that the widest diameter subtends an angular distance of no 
 46.4   greater than 20 degrees; or 
 46.5      (2) has a medically indicated expectation of visual 
 46.6   deterioration. 
 46.7      "Braille" means the system of reading and writing through 
 46.8   touch commonly known as standard English Braille.  
 46.9      "Individualized education plan" means a written statement 
 46.10  developed for a student eligible for special education and 
 46.11  services pursuant to this section and section 602(a)(20) of part 
 46.12  A of the Individuals with Disabilities Education Act, United 
 46.13  States Code, title 20, section 1401(a). 
 46.14     (f) In developing an individualized education plan for each 
 46.15  blind student the presumption must be that proficiency in 
 46.16  Braille reading and writing is essential for the student to 
 46.17  achieve satisfactory educational progress.  The assessment 
 46.18  required for each student must include a Braille skills 
 46.19  inventory, including a statement of strengths and deficits.  
 46.20  Braille instruction and use are not required by this paragraph 
 46.21  if, in the course of developing the student's individualized 
 46.22  education program, team members concur that the student's visual 
 46.23  impairment does not affect reading and writing performance 
 46.24  commensurate with ability.  This paragraph does not require the 
 46.25  exclusive use of Braille if other special education services are 
 46.26  appropriate to the student's educational needs.  The provision 
 46.27  of other appropriate services does not preclude Braille use or 
 46.28  instruction.  Instruction in Braille reading and writing shall 
 46.29  must be available for each blind student for whom the 
 46.30  multidisciplinary team has determined that reading and writing 
 46.31  is appropriate. 
 46.32     (g) Instruction in Braille reading and writing must be 
 46.33  sufficient to enable each blind student to communicate 
 46.34  effectively and efficiently with the same level of proficiency 
 46.35  expected of the student's peers of comparable ability and grade 
 46.36  level.  
 47.1      (h) The student's individualized education plan must 
 47.2   specify: 
 47.3      (1) the results obtained from the assessment required under 
 47.4   paragraph (f); 
 47.5      (2) how Braille will be implemented through integration 
 47.6   with other classroom activities; 
 47.7      (3) the date on which Braille instruction will begin; 
 47.8      (4) the length of the period of instruction and the 
 47.9   frequency and duration of each instructional session; 
 47.10     (5) the level of competency in Braille reading and writing 
 47.11  to be achieved by the end of the period and the objective 
 47.12  assessment measures to be used; and 
 47.13     (6) if a decision has been made under paragraph (f) that 
 47.14  Braille instruction or use is not required for the student:  
 47.15     (i) a statement that the decision was reached after a 
 47.16  review of pertinent literature describing the educational 
 47.17  benefits of Braille instruction and use; and 
 47.18     (ii) a specification of the evidence used to determine that 
 47.19  the student's ability to read and write effectively without 
 47.20  Braille is not impaired. 
 47.21     (i) Instruction in Braille reading and writing is a service 
 47.22  for the purpose of special education and services under this 
 47.23  section. 
 47.24     (j) Paragraphs (e) to (i) shall must not be construed to 
 47.25  supersede any rights of a parent or guardian of a child with a 
 47.26  disability under federal or state law. 
 47.27     Sec. 25.  Minnesota Statutes 1996, section 120.17, 
 47.28  subdivision 3, is amended to read: 
 47.29     Subd. 3.  [RULES OF THE STATE BOARD.] (a) The state board 
 47.30  shall promulgate must adopt rules relative to qualifications of 
 47.31  essential personnel, courses of study, methods of instruction, 
 47.32  pupil eligibility, size of classes, rooms, equipment, 
 47.33  supervision, parent consultation, and any other rules it deems 
 47.34  necessary for instruction of children with a disability.  These 
 47.35  rules shall must provide standards and procedures appropriate 
 47.36  for the implementation of and within the limitations of 
 48.1   subdivisions 3a and 3b.  These rules shall must also provide 
 48.2   standards for the discipline, control, management, and 
 48.3   protection of children with a disability.  The state board shall 
 48.4   must not adopt rules for pupils served in level 1, 2, or 3, as 
 48.5   defined in Minnesota Rules, part 3525.2340, establishing either 
 48.6   case loads or the maximum number of pupils that may be assigned 
 48.7   to special education teachers.  The state board, in consultation 
 48.8   with the departments of health and human services, shall must 
 48.9   adopt permanent rules for instruction and services for children 
 48.10  under age five and their families.  These rules are binding on 
 48.11  state and local education, health, and human services agencies.  
 48.12  The state board shall must adopt rules to determine eligibility 
 48.13  for special education services.  The rules shall must include 
 48.14  procedures and standards by which to grant variances for 
 48.15  experimental eligibility criteria.  The state board shall must, 
 48.16  according to section 14.05, subdivision 4, notify a district 
 48.17  applying for a variance from the rules within 45 calendar days 
 48.18  of receiving the request whether the request for the variance 
 48.19  has been granted or denied.  If a request is denied, the 
 48.20  board shall must specify the program standards used to evaluate 
 48.21  the request and the reasons for denying the request.  
 48.22     (b) The state's regulatory scheme should support schools by 
 48.23  assuring that all state special education rules adopted by the 
 48.24  state board of education result in one or more of the following 
 48.25  outcomes: 
 48.26     (1) increased time available to teachers for educating 
 48.27  students through direct and indirect instruction; 
 48.28     (2) consistent and uniform access to effective education 
 48.29  programs for students with disabilities throughout the state; 
 48.30     (3) reduced inequalities, conflict, and court actions 
 48.31  related to the delivery of special education instruction and 
 48.32  services for students with disabilities; 
 48.33     (4) clear expectations for service providers and for 
 48.34  students with disabilities; 
 48.35     (5) increased accountability for all individuals and 
 48.36  agencies that provide instruction and other services to students 
 49.1   with disabilities; 
 49.2      (6) greater focus for the state and local resources 
 49.3   dedicated to educating students with disabilities; and 
 49.4      (7) clearer standards for evaluating the effectiveness of 
 49.5   education and support services for students with disabilities.  
 49.6      Sec. 26.  Minnesota Statutes 1996, section 120.17, 
 49.7   subdivision 3a, is amended to read: 
 49.8      Subd. 3a.  [SCHOOL DISTRICT OBLIGATIONS.] Every district 
 49.9   shall must ensure that the following: 
 49.10     (1) all students with disabilities are provided the special 
 49.11  instruction and services which are appropriate to their needs.  
 49.12  Where the individual education plan team has determined 
 49.13  appropriate goals and objectives based on the student's needs, 
 49.14  including the extent to which the student can be included in the 
 49.15  least restrictive environment, and where there are essentially 
 49.16  equivalent and effective instruction, related services, or 
 49.17  assistive technology devices available to meet the student's 
 49.18  needs, cost to the school district may be among the factors 
 49.19  considered by the team in choosing how to provide the 
 49.20  appropriate services, instruction, or devices that are to be 
 49.21  made part of the student's individual education plan.  The 
 49.22  student's needs and the special education instruction and 
 49.23  services to be provided shall must be agreed upon through the 
 49.24  development of an individual education plan.  The plan shall 
 49.25  must address the student's need to develop skills to live and 
 49.26  work as independently as possible within the community.  By 
 49.27  grade 9 or age 14, the plan shall must address the student's 
 49.28  needs for transition from secondary services to post-secondary 
 49.29  education and training, employment, community participation, 
 49.30  recreation, and leisure and home living.  The plan must include 
 49.31  a statement of the needed transition services, including a 
 49.32  statement of the interagency responsibilities or linkages or 
 49.33  both before secondary services are concluded; 
 49.34     (2) children with a disability under age five and their 
 49.35  families are provided special instruction and services 
 49.36  appropriate to the child's level of functioning and needs; 
 50.1      (3) children with a disability and their parents or 
 50.2   guardians are guaranteed procedural safeguards and the right to 
 50.3   participate in decisions involving identification, assessment 
 50.4   including assistive technology assessment, and educational 
 50.5   placement of children with a disability; 
 50.6      (4) to the maximum extent appropriate, children with a 
 50.7   disability, including those in public or private institutions or 
 50.8   other care facilities, are educated with children who are not 
 50.9   disabled, and that special classes, separate schooling, or other 
 50.10  removal of children with a disability from the regular 
 50.11  educational environment occurs only when and to the extent that 
 50.12  the nature or severity of the disability is such that education 
 50.13  in regular classes with the use of supplementary services cannot 
 50.14  be achieved satisfactorily; 
 50.15     (5) in accordance with recognized professional standards, 
 50.16  testing and evaluation materials, and procedures utilized used 
 50.17  for the purposes of classification and placement of children 
 50.18  with a disability are selected and administered so as not to be 
 50.19  racially or culturally discriminatory; and 
 50.20     (6) the rights of the child are protected when the parents 
 50.21  or guardians are not known or not available, or the child is a 
 50.22  ward of the state.  
 50.23     Sec. 27.  Minnesota Statutes 1996, section 120.17, 
 50.24  subdivision 3b, is amended to read: 
 50.25     Subd. 3b.  [PROCEDURES FOR DECISIONS.] Every district shall 
 50.26  utilize must use at least the following procedures for decisions 
 50.27  involving identification, assessment, and educational placement 
 50.28  of children with a disability: 
 50.29     (a) Parents and guardians shall must receive prior written 
 50.30  notice of:  
 50.31     (1) any proposed formal educational assessment or proposed 
 50.32  denial of a formal educational assessment of their child; 
 50.33     (2) a proposed placement of their child in, transfer from 
 50.34  or to, or denial of placement in a special education program; or 
 50.35     (3) the proposed provision, addition, denial, or removal of 
 50.36  special education services for their child;. 
 51.1      (b) The district shall must not proceed with the initial 
 51.2   formal assessment of a child, the initial placement of a child 
 51.3   in a special education program, or the initial provision of 
 51.4   special education services for a child without the prior written 
 51.5   consent of the child's parent or guardian.  The refusal of a 
 51.6   parent or guardian to consent may be overridden by the decision 
 51.7   in a hearing held pursuant to clause paragraph (e) at the 
 51.8   district's initiative;. 
 51.9      (c) Parents and guardians shall must have an opportunity to 
 51.10  meet with appropriate district staff in at least one 
 51.11  conciliation conference, mediation, or other method of 
 51.12  alternative dispute resolution that the parties agree to, if 
 51.13  they object to any proposal of which they are notified pursuant 
 51.14  to clause paragraph (a).  The conciliation process or other form 
 51.15  of alternative dispute resolution shall must not be used to deny 
 51.16  or delay a parent or guardian's right to a due process hearing.  
 51.17  If the parent or guardian refuses efforts by the district to 
 51.18  conciliate the dispute with the school district, the requirement 
 51.19  of an opportunity for conciliation or other alternative dispute 
 51.20  resolution shall must be deemed to be satisfied.  
 51.21  Notwithstanding other law, in any proceeding following a 
 51.22  conciliation conference, the school district must not offer a 
 51.23  conciliation conference memorandum into evidence, except for any 
 51.24  portions that describe the district's final proposed offer of 
 51.25  service.  Otherwise, with respect to forms of dispute 
 51.26  resolution, mediation, or conciliation, Minnesota Rule of 
 51.27  Evidence 408 applies.  The department of children, families, and 
 51.28  learning may reimburse the districts or directly pay the costs 
 51.29  of lay advocates, not to exceed $150 per dispute, used in 
 51.30  conjunction with alternative dispute resolution. 
 51.31     (d) The commissioner shall must establish a mediation 
 51.32  process to assist parents, school districts, or other parties to 
 51.33  resolve disputes arising out of the identification, assessment, 
 51.34  or educational placement of children with a disability.  The 
 51.35  mediation process must be offered as an informal alternative to 
 51.36  the due process hearing provided under clause paragraph (e), but 
 52.1   must not be used to deny or postpone the opportunity of a parent 
 52.2   or guardian to obtain a due process hearing. 
 52.3      (e) Parents, guardians, and the district shall must have an 
 52.4   opportunity to obtain an impartial due process hearing initiated 
 52.5   and conducted by and in the school district responsible for 
 52.6   assuring that an appropriate program is provided in accordance 
 52.7   with state board rules, if the parent or guardian continues to 
 52.8   object to:  
 52.9      (1) a proposed formal educational assessment or proposed 
 52.10  denial of a formal educational assessment of their child; 
 52.11     (2) the proposed placement of their child in, or transfer 
 52.12  of their child to a special education program; 
 52.13     (3) the proposed denial of placement of their child in a 
 52.14  special education program or the transfer of their child from a 
 52.15  special education program; 
 52.16     (4) the proposed provision or addition of special education 
 52.17  services for their child; or 
 52.18     (5) the proposed denial or removal of special education 
 52.19  services for their child. 
 52.20     Within five business days after the request for a hearing, 
 52.21  or as directed by the hearing officer, the objecting party shall 
 52.22  must provide the other party with a brief written statement of 
 52.23  particulars of the objection, the reasons for the objection, and 
 52.24  the specific remedies sought.  The other party shall provide the 
 52.25  objecting party with a written response to the statement of 
 52.26  objections within five business days of receipt of the statement.
 52.27     The hearing shall must take place before an impartial 
 52.28  hearing officer mutually agreed to by the school board and the 
 52.29  parent or guardian.  Within four business days of the receipt of 
 52.30  the request for the hearing, if the parties have not agreed on 
 52.31  the hearing officer, the school board shall must request the 
 52.32  commissioner to appoint a hearing officer.  The school board 
 52.33  shall must include with the request the name of the person 
 52.34  requesting the hearing, the name of the student, the attorneys 
 52.35  involved, if any, and the date the hearing request was 
 52.36  received.  The hearing officer shall must not be a school board 
 53.1   member or employee of the school district where the child 
 53.2   resides or of the child's school district of residence, an 
 53.3   employee of any other public agency involved in the education or 
 53.4   care of the child, or any person with a personal or professional 
 53.5   interest which that would conflict with the person's objectivity 
 53.6   at the hearing.  A person who otherwise qualifies as a hearing 
 53.7   officer is not an employee of the district solely because the 
 53.8   person is paid by the district to serve as a hearing officer.  
 53.9   If the hearing officer requests an independent educational 
 53.10  assessment of a child, the cost of the assessment shall must be 
 53.11  at district expense.  The proceedings shall must be recorded and 
 53.12  preserved, at the expense of the school district, pending 
 53.13  ultimate disposition of the action. 
 53.14     (f) The decision of the hearing officer pursuant to clause 
 53.15  paragraph (e) shall be rendered not more than 45 calendar days 
 53.16  from the date of the receipt of the request for the hearing, 
 53.17  except that hearing officers are encouraged to accelerate the 
 53.18  timeline to 30 days for children birth through two whose needs 
 53.19  change rapidly and require quick resolution of complaints.  A 
 53.20  hearing officer may not grant specific extensions of time beyond 
 53.21  the 45-day period unless requested by either party for good 
 53.22  cause shown on the record.  The decision of the hearing 
 53.23  officer shall be is binding on all parties unless appealed to 
 53.24  the commissioner by the parent; guardian; school board of the 
 53.25  district where the child resides pursuant to clause 
 53.26  paragraph (g); and also in the case of children birth through 
 53.27  two, by the county board. 
 53.28     The local decision shall must: 
 53.29     (1) be in writing; 
 53.30     (2) state the controlling facts upon which the decision is 
 53.31  made in sufficient detail to apprise the parties and the hearing 
 53.32  review officer of the basis and reason for the decision; and 
 53.33     (3) be based on the standards set forth in subdivision 3a 
 53.34  and the rules of the state board. 
 53.35     (g) Any local decision issued pursuant to clauses 
 53.36  paragraphs (e) and (f) may be appealed to the commissioner 
 54.1   within 30 calendar days of receipt of that written decision, by 
 54.2   the parent, guardian, or the school board of the district 
 54.3   responsible for assuring that an appropriate program is provided 
 54.4   in accordance with state board rules.  The appealing party shall 
 54.5   must note the specific parts of the hearing decision being 
 54.6   appealed. 
 54.7      If the decision is appealed, a written transcript of the 
 54.8   hearing shall must be made by the school district and provided 
 54.9   by the district to the parties involved and the hearing review 
 54.10  officer within five calendar days of the filing of the appeal.  
 54.11  The hearing review officer shall must conduct an appellate 
 54.12  review and issue a final independent decision based on an 
 54.13  impartial review of the local decision and the entire record 
 54.14  within 30 calendar days after the filing of the appeal.  
 54.15  However, the hearing review officer shall must seek additional 
 54.16  evidence if necessary and may afford the parties an opportunity 
 54.17  for written or oral argument; provided.  Any hearing held to 
 54.18  seek additional evidence shall must be an impartial due process 
 54.19  hearing but shall be is deemed not to be a contested case 
 54.20  hearing for purposes of chapter 14.  The hearing review officer 
 54.21  may grant specific extensions of time beyond the 30-day period 
 54.22  at the request of any party for good cause shown on the record. 
 54.23     The final decision shall must: 
 54.24     (1) be in writing; 
 54.25     (2) include findings and conclusions; and 
 54.26     (3) be based upon the standards set forth in subdivision 3a 
 54.27  and in the rules of the state board. 
 54.28     (h) The decision of the hearing review officer shall be is 
 54.29  final unless appealed by the parent or guardian or school board 
 54.30  to the Minnesota court of appeals or federal district court as 
 54.31  provided by federal law.  State judicial review shall must be in 
 54.32  accordance with chapter 14.  
 54.33     (i) The commissioner of children, families, and learning 
 54.34  shall must select an individual who has the qualifications 
 54.35  enumerated in this paragraph to serve as the hearing review 
 54.36  officer: 
 55.1      (1) the individual must be knowledgeable and impartial; 
 55.2      (2) the individual must not have a personal interest in or 
 55.3   specific involvement with the student who is a party to the 
 55.4   hearing; 
 55.5      (3) the individual must not have been employed as an 
 55.6   administrator by the district that is a party to the hearing; 
 55.7      (4) the individual must not have been involved in the 
 55.8   selection of the administrators of the district that is a party 
 55.9   to the hearing; 
 55.10     (5) the individual must not have a personal, economic, or 
 55.11  professional interest in the outcome of the hearing other than 
 55.12  the proper administration of the federal and state laws, rules, 
 55.13  and policies; 
 55.14     (6) the individual must not have substantial involvement in 
 55.15  the development of a state or local policy or procedures that 
 55.16  are challenged in the appeal; 
 55.17     (7) the individual is not a current employee or board 
 55.18  member of a Minnesota public school district, education 
 55.19  district, intermediate unit or regional education agency, the 
 55.20  department of children, families, and learning, and the state 
 55.21  board of education; and 
 55.22     (8) the individual is not a current employee or board 
 55.23  member of a disability advocacy organization or group.  
 55.24     (j) In all appeals, the parent or guardian of the pupil 
 55.25  with a disability or the district that is a party to the hearing 
 55.26  may challenge the impartiality or competence of the proposed 
 55.27  hearing review officer by applying to the hearing review officer.
 55.28     (k) Pending the completion of proceedings pursuant to this 
 55.29  subdivision, unless the district and the parent or guardian of 
 55.30  the child agree otherwise, the child shall must remain in the 
 55.31  child's current educational placement and shall must not be 
 55.32  denied initial admission to school. 
 55.33     (l) The child's school district of residence, a resident 
 55.34  district, and providing district shall must receive notice of 
 55.35  and may be a party to any hearings or appeals under this 
 55.36  subdivision. 
 56.1      (m) A school district is not liable for harmless technical 
 56.2   violations of this subdivision or rules implementing this 
 56.3   subdivision if the school district can demonstrate on a 
 56.4   case-by-case basis that the violations did not harm the 
 56.5   student's educational progress or the parent or guardian's right 
 56.6   to notice, participation, or due process. 
 56.7      (n) Within ten calendar days after appointment, the hearing 
 56.8   officer shall must schedule and hold a prehearing conference.  
 56.9   At that conference, or later, the hearing officer may take any 
 56.10  appropriate action that a court might may take under Rule 16 of 
 56.11  Minnesota Rules of Civil Procedure including, but not limited 
 56.12  to, scheduling, jurisdiction, and listing witnesses including 
 56.13  expert witnesses. 
 56.14     (o) A hearing officer or hearing review officer appointed 
 56.15  under this subdivision shall be is deemed to be an employee of 
 56.16  the state under section 3.732 for the purposes of section 3.736 
 56.17  only. 
 56.18     (p) In order to be eligible for selection, hearing officers 
 56.19  and hearing review officers shall must participate in training 
 56.20  and follow procedures as designated by the commissioner. 
 56.21     (q) The hearing officer may admit all evidence which that 
 56.22  possesses probative value, including hearsay, if it is the type 
 56.23  of evidence on which reasonable, prudent persons are accustomed 
 56.24  to rely in the conduct of their serious affairs.  The hearing 
 56.25  officer shall must give effect to the rules of privilege 
 56.26  recognized by law.  Evidence which that is incompetent, 
 56.27  irrelevant, immaterial, or unduly repetitious shall be excluded. 
 56.28     Sec. 28.  Minnesota Statutes 1996, section 120.17, 
 56.29  subdivision 3d, is amended to read: 
 56.30     Subd. 3d.  [INTERAGENCY SERVICES.] If at the time of 
 56.31  initial referral for an educational assessment, or a 
 56.32  reassessment, the school district determines that a child with 
 56.33  disabilities who is age 3 through 21 may be eligible for 
 56.34  interagency services, the district may request that the county 
 56.35  of residence provide a representative to the initial assessment 
 56.36  or reassessment team meeting or the first individual education 
 57.1   plan team meeting following the assessment or reassessment.  The 
 57.2   district may request to have a county representative attend 
 57.3   other individual education plan team meetings when it is 
 57.4   necessary to facilitate coordination between district and county 
 57.5   provided services.  Upon request from a school district, the 
 57.6   resident county shall provide a representative to assist the 
 57.7   individual education plan team in determining the child's 
 57.8   eligibility for existing health, mental health, or other support 
 57.9   services administered or provided by the county.  The individual 
 57.10  education plan team and the county representative shall must 
 57.11  develop an interagency plan of care for an eligible child and 
 57.12  the child's family to coordinate services required under the 
 57.13  child's individual education plan with county services.  The 
 57.14  interagency plan of care shall must include appropriate family 
 57.15  information with the consent of the family, a description of how 
 57.16  services will be coordinated between the district and county, a 
 57.17  description of service coordinator responsibilities and 
 57.18  services, and a description of activities for obtaining 
 57.19  third-party payment for eligible services, including medical 
 57.20  assistance payments. 
 57.21     Sec. 29.  Minnesota Statutes 1996, section 120.17, 
 57.22  subdivision 4, is amended to read: 
 57.23     Subd. 4.  [SPECIAL INSTRUCTIONS FOR NONRESIDENT CHILDREN.] 
 57.24  When a school district provides instruction and services outside 
 57.25  the district of residence, board and lodging, and any tuition to 
 57.26  be paid, shall be paid by the district of residence.  The 
 57.27  tuition rate to be charged for any child with a disability shall 
 57.28  must be the actual cost of providing special instruction and 
 57.29  services to the child including a proportionate amount for 
 57.30  capital outlay and debt service but not including any amount for 
 57.31  transportation, minus the amount of special aid for children 
 57.32  with a disability received on behalf of that child.  If the 
 57.33  boards involved do not agree upon the tuition rate, either board 
 57.34  may apply to the commissioner to fix the rate.  The commissioner 
 57.35  shall must then set a date for a hearing, giving each board at 
 57.36  least ten days' notice, and after the hearing the 
 58.1   commissioner shall must make an order fixing the tuition rate, 
 58.2   which shall be is binding on both school districts. 
 58.3      When a district provides instruction and services in a day 
 58.4   program outside the district of residence, the district of 
 58.5   residence shall be is responsible for providing transportation.  
 58.6   When a district provides instruction and services requiring 
 58.7   board and lodging or placement in a residential program outside 
 58.8   the district of residence, the nonresident district in which the 
 58.9   child is placed shall be is responsible for providing 
 58.10  transportation.  Transportation costs shall be paid by the 
 58.11  district responsible for providing transportation and the state 
 58.12  shall pay transportation aid to that district.  
 58.13     For the purposes of this section, any school district may 
 58.14  enter into an agreement, upon mutually agreed upon terms and 
 58.15  conditions which are mutually agreed upon, to provide special 
 58.16  instruction and services for children with a disability.  In 
 58.17  that event, one of the participating units may employ and 
 58.18  contract with necessary qualified personnel to offer services in 
 58.19  the several districts.  Each participating unit shall must 
 58.20  reimburse the employing unit a proportionate amount of the 
 58.21  actual cost of providing the special instruction and services, 
 58.22  less the amount of state special education aid, which shall be 
 58.23  claimed in full by the employing district.  
 58.24     Sec. 30.  Minnesota Statutes 1996, section 120.17, 
 58.25  subdivision 4a, is amended to read: 
 58.26     Subd. 4a.  [ATTENDANCE IN ANOTHER DISTRICT.] No resident of 
 58.27  a district who is eligible for special instruction and services 
 58.28  pursuant to this section shall may be denied provision of this 
 58.29  instruction and service because of attending a public school in 
 58.30  another school district pursuant to section 123.39, subdivision 
 58.31  5, if the attendance is not subject to section 120.075, 
 58.32  120.0751, or 120.0752.  If the pupil attends a public school 
 58.33  located in a contiguous district and the district of attendance 
 58.34  does not provide special instruction and services, the district 
 58.35  of residence shall must provide necessary transportation for the 
 58.36  pupil between the boundary of the district of residence and the 
 59.1   educational facility where special instruction and services are 
 59.2   provided within the district of residence.  The district of 
 59.3   residence may provide necessary transportation for the pupil 
 59.4   between its boundary and the school attended in the contiguous 
 59.5   district, but shall must not pay the cost of transportation 
 59.6   provided outside the boundary of the district of residence.  
 59.7      Sec. 31.  Minnesota Statutes 1996, section 120.17, 
 59.8   subdivision 5, is amended to read: 
 59.9      Subd. 5.  [SCHOOL OF PARENTS' CHOICE.] Nothing in this 
 59.10  chapter shall must be construed as preventing parents of a child 
 59.11  with a disability from sending such the child to a school of 
 59.12  their choice, if they so elect, subject to admission standards 
 59.13  and policies adopted according to chapter 128A, and all other 
 59.14  provisions of chapters 120 to 129. 
 59.15     Sec. 32.  Minnesota Statutes 1996, section 120.17, 
 59.16  subdivision 5a, is amended to read:  
 59.17     Subd. 5a.  [SUMMER PROGRAMS.] A district may provide summer 
 59.18  programs for children with a disability living within the 
 59.19  district and nonresident children temporarily placed in the 
 59.20  district pursuant to subdivision 6 or 7.  Prior to March 31 or 
 59.21  30 days after the child with a disability is placed in the 
 59.22  district, whichever is later, the providing district shall give 
 59.23  notice to the district of residence of any nonresident children 
 59.24  temporarily placed in the district pursuant to subdivision 6 or 
 59.25  7, of its intention to provide these programs.  Notwithstanding 
 59.26  any contrary provisions in subdivisions 6 and 7, the school 
 59.27  district providing the special instruction and services shall 
 59.28  must apply for special education aid for the summer program.  
 59.29  The unreimbursed actual cost of providing the program for 
 59.30  nonresident children with a disability, including the cost of 
 59.31  board and lodging, may be billed to the district of the child's 
 59.32  residence and shall must be paid by the resident district.  
 59.33  Transportation costs shall must be paid by the district 
 59.34  responsible for providing transportation pursuant to subdivision 
 59.35  6 or 7 and transportation aid shall must be paid to that 
 59.36  district.  
 60.1      Sec. 33.  Minnesota Statutes 1996, section 120.17, 
 60.2   subdivision 6, is amended to read: 
 60.3      Subd. 6.  [PLACEMENT IN ANOTHER DISTRICT; RESPONSIBILITY.] 
 60.4   The responsibility for special instruction and services for a 
 60.5   child with a disability temporarily placed in another district 
 60.6   for care and treatment shall be determined in the following 
 60.7   manner: 
 60.8      (a) The school district of residence of a child shall be 
 60.9   the district in which the child's parent resides, if living, or 
 60.10  the child's guardian, or the district designated by the 
 60.11  commissioner of children, families, and learning if neither 
 60.12  parent nor guardian is living within the state. 
 60.13     (b) When a child is temporarily placed for care and 
 60.14  treatment in a day program located in another district and the 
 60.15  child continues to live within the district of residence during 
 60.16  the care and treatment, the district of residence is responsible 
 60.17  for providing transportation and an appropriate educational 
 60.18  program for the child.  The district may provide the educational 
 60.19  program at a school within the district of residence, at the 
 60.20  child's residence, or in the district in which the day treatment 
 60.21  center is located by paying tuition to that district. 
 60.22     (c) When a child is temporarily placed in a residential 
 60.23  program for care and treatment, the nonresident district in 
 60.24  which the child is placed is responsible for providing an 
 60.25  appropriate educational program for the child and necessary 
 60.26  transportation while the child is attending the educational 
 60.27  program; and shall must bill the district of the child's 
 60.28  residence for the actual cost of providing the program, as 
 60.29  outlined in subdivision 4, except that.  However, the board, 
 60.30  lodging, and treatment costs incurred in behalf of a child with 
 60.31  a disability placed outside of the school district of residence 
 60.32  by the commissioner of human services or the commissioner of 
 60.33  corrections or their agents, for reasons other than for making 
 60.34  provision providing for the child's special educational 
 60.35  needs shall must not become the responsibility of either the 
 60.36  district providing the instruction or the district of the 
 61.1   child's residence. 
 61.2      (d) The district of residence shall pay tuition and other 
 61.3   program costs, not including transportation costs, to the 
 61.4   district providing the instruction and services.  The district 
 61.5   of residence may claim general education aid for the child as 
 61.6   provided by law.  Transportation costs shall must be paid by the 
 61.7   district responsible for providing the transportation and the 
 61.8   state shall must pay transportation aid to that district.  
 61.9      Sec. 34.  Minnesota Statutes 1996, section 120.17, 
 61.10  subdivision 7, is amended to read: 
 61.11     Subd. 7.  [PLACEMENT IN STATE INSTITUTION; 
 61.12  RESPONSIBILITY.] (a) Responsibility for special instruction and 
 61.13  services for a child with a disability placed in a state 
 61.14  institution on a temporary basis shall must be determined in the 
 61.15  following manner: 
 61.16     (a) (1) the legal residence of such the child shall be 
 61.17  is the school district in which the child's parent resides, if 
 61.18  living, or the child's guardian.; and 
 61.19     (b) (2) when the educational needs of such the child can be 
 61.20  met through the institutional program, the costs for such the 
 61.21  instruction shall must be paid by the department to which the 
 61.22  institution is assigned.  
 61.23     (c) (b) When it is determined that such the child can 
 61.24  benefit from public school enrollment, provision for such the 
 61.25  instruction shall be made in the following manner: 
 61.26     (1) determination of eligibility for special instruction 
 61.27  and services shall must be made by the commissioner of children, 
 61.28  families, and learning and the commissioner of the department 
 61.29  responsible for the institution; 
 61.30     (2) the school district where the institution is located 
 61.31  shall be is responsible for providing transportation and an 
 61.32  appropriate educational program for the child and shall must 
 61.33  make a tuition charge to the child's district of residence for 
 61.34  the actual cost of providing the program; and 
 61.35     (3) the district of the child's residence shall pay the 
 61.36  tuition and other program costs excluding transportation costs 
 62.1   and may claim general education aid for the child.  
 62.2   Transportation costs shall must be paid by the district where 
 62.3   the institution is located and the state shall must pay 
 62.4   transportation aid to that district.  
 62.5      Sec. 35.  Minnesota Statutes 1996, section 120.17, 
 62.6   subdivision 7a, is amended to read: 
 62.7      Subd. 7a.  [ATTENDANCE AT SCHOOL FOR THE DISABLED.] 
 62.8   Responsibility for special instruction and services for a 
 62.9   visually disabled or hearing impaired child attending the 
 62.10  Minnesota state academy for the deaf or the Minnesota state 
 62.11  academy for the blind shall must be determined in the following 
 62.12  manner: 
 62.13     (a) The legal residence of the child shall be is the school 
 62.14  district in which the child's parent or guardian resides. 
 62.15     (b) When it is determined pursuant to section 128A.05, 
 62.16  subdivision 1 or 2, that the child is entitled to attend either 
 62.17  school, the state board shall must provide the appropriate 
 62.18  educational program for the child.  The state board shall must 
 62.19  make a tuition charge to the child's district of residence for 
 62.20  the cost of providing the program.  The amount of tuition 
 62.21  charged shall must not exceed the basic revenue of the district 
 62.22  for that child, for the amount of time the child is in the 
 62.23  program.  For purposes of this subdivision, "basic revenue" has 
 62.24  the meaning given it in section 124A.22, subdivision 2.  The 
 62.25  district of the child's residence shall must pay the tuition and 
 62.26  may claim general education aid for the child.  Tuition received 
 62.27  by the state board, except for tuition received under clause 
 62.28  paragraph (c), shall must be deposited in the state treasury as 
 62.29  provided in clause paragraph (g). 
 62.30     (c) In addition to the tuition charge allowed in clause 
 62.31  paragraph (b), the academies may charge the child's district of 
 62.32  residence for the academy's unreimbursed cost of providing an 
 62.33  instructional aide assigned to that child, if that aide is 
 62.34  required by the child's individual education plan.  Tuition 
 62.35  received under this clause paragraph must be used by the 
 62.36  academies to provide the required service. 
 63.1      (d) When it is determined that the child can benefit from 
 63.2   public school enrollment but that the child should also remain 
 63.3   in attendance at the applicable school, the school district 
 63.4   where the institution is located shall must provide an 
 63.5   appropriate educational program for the child and shall must 
 63.6   make a tuition charge to the state board for the actual cost of 
 63.7   providing the program, less any amount of aid received pursuant 
 63.8   to section 124.32.  The state board shall must pay the tuition 
 63.9   and other program costs including the unreimbursed 
 63.10  transportation costs.  Aids for children with a disability shall 
 63.11  must be paid to the district providing the special instruction 
 63.12  and services.  Special transportation shall must be provided by 
 63.13  the district providing the educational program and the 
 63.14  state shall must reimburse such that district within the limits 
 63.15  provided by law.  
 63.16     (e) Notwithstanding the provisions of clauses paragraphs (b)
 63.17  and (d), the state board may agree to make a tuition charge for 
 63.18  less than the amount specified in clause paragraph (b) for 
 63.19  pupils attending the applicable school who are residents of the 
 63.20  district where the institution is located and who do not board 
 63.21  at the institution, if that district agrees to make a tuition 
 63.22  charge to the state board for less than the amount specified 
 63.23  in clause paragraph (d) for providing appropriate educational 
 63.24  programs to pupils attending the applicable school. 
 63.25     (f) Notwithstanding the provisions of clauses paragraphs (b)
 63.26  and (d), the state board may agree to supply staff from the 
 63.27  Minnesota state academy for the deaf and the Minnesota state 
 63.28  academy for the blind to participate in the programs provided by 
 63.29  the district where the institutions are located when the 
 63.30  programs are provided to students in attendance at the state 
 63.31  schools.  
 63.32     (g) On May 1 of each year, the state board shall count the 
 63.33  actual number of Minnesota resident kindergarten and elementary 
 63.34  students and the actual number of Minnesota resident secondary 
 63.35  students enrolled and receiving education services at the 
 63.36  Minnesota state academy for the deaf and the Minnesota state 
 64.1   academy for the blind.  The state board shall deposit in the 
 64.2   state treasury an amount equal to all tuition received less:  
 64.3      (1) the total number of students on May 1 less 175, times 
 64.4   the ratio of the number of kindergarten and elementary students 
 64.5   to the total number of students on May 1, times the general 
 64.6   education formula allowance; plus 
 64.7      (2) the total number of students on May 1 less 175, times 
 64.8   the ratio of the number of secondary students on May 1 to the 
 64.9   total number of students on May 1, times 1.3, times the general 
 64.10  education formula allowance.  
 64.11     (h) The sum provided by the calculation in clause 
 64.12  paragraph (g), subclauses clauses (1) and (2), must be deposited 
 64.13  in the state treasury and credited to the general operation 
 64.14  account of the academy for the deaf and the academy for the 
 64.15  blind.  
 64.16     (i) There is annually appropriated to the department of 
 64.17  children, families, and learning for the Faribault academies the 
 64.18  tuition amounts received and credited to the general operation 
 64.19  account of the academies under this section.  A balance in an 
 64.20  appropriation under this paragraph does not cancel but is 
 64.21  available in successive fiscal years.  
 64.22     Sec. 36.  Minnesota Statutes 1996, section 120.17, 
 64.23  subdivision 8a, is amended to read: 
 64.24     Subd. 8a.  [RESIDENCE OF CHILD UNDER SPECIAL CONDITIONS.] 
 64.25  The legal residence of a child with a disability placed in a 
 64.26  foster facility for care and treatment when: 
 64.27     (1) parental rights have been terminated by court order; 
 64.28     (2) parent or guardian is not living within the state; 
 64.29     (3) no other school district residence can be established; 
 64.30  or 
 64.31     (4) parent or guardian having legal custody of the child is 
 64.32  an inmate of a Minnesota correctional facility or is a resident 
 64.33  of a halfway house under the supervision of the commissioner of 
 64.34  corrections; 
 64.35  shall be is the school district in which the child resides.  
 64.36  The school board of the district of residence shall must provide 
 65.1   the same educational program for such the child as it provides 
 65.2   for all resident children with a disability in the district.  
 65.3      Sec. 37.  Minnesota Statutes 1996, section 120.17, 
 65.4   subdivision 9, is amended to read: 
 65.5      Subd. 9.  [SPECIAL INSTRUCTION.] No resident of a district 
 65.6   who is eligible for special instruction and services pursuant to 
 65.7   this section shall may be denied provision of this instruction 
 65.8   and service on a shared time basis because of attendance at a 
 65.9   nonpublic school defined in section 123.932, subdivision 3.  If 
 65.10  a resident pupil with a disability attends a nonpublic school 
 65.11  located within the district of residence, the district shall 
 65.12  must provide necessary transportation for that pupil within the 
 65.13  district between the nonpublic school and the educational 
 65.14  facility where special instruction and services are provided on 
 65.15  a shared time basis.  If a resident pupil with a disability 
 65.16  attends a nonpublic school located in another district and if no 
 65.17  agreement exists pursuant to section 124A.034, subdivision 1 or 
 65.18  1a, for the provision of special instruction and services on a 
 65.19  shared time basis to that pupil by the district of attendance 
 65.20  and where the special instruction and services are provided 
 65.21  within the district of residence, the district of 
 65.22  residence shall must provide necessary transportation for that 
 65.23  pupil between the boundary of the district of residence and the 
 65.24  educational facility.  The district of residence may provide 
 65.25  necessary transportation for that pupil between its boundary and 
 65.26  the nonpublic school attended, but the nonpublic school shall 
 65.27  must pay the cost of transportation provided outside the 
 65.28  district boundary.  
 65.29     Sec. 38.  Minnesota Statutes 1996, section 120.17, 
 65.30  subdivision 10, is amended to read: 
 65.31     Subd. 10.  [NONRESIDENT EDUCATION; BILLING.] All tuition 
 65.32  billing for the education of nonresident children pursuant to 
 65.33  this section shall must be done on uniform forms prescribed by 
 65.34  the commissioner.  The billing shall contain an itemized 
 65.35  statement of costs which that are being charged to the district 
 65.36  of residence.  One copy of each such billing shall must be filed 
 66.1   with the commissioner.  
 66.2      Sec. 39.  Minnesota Statutes 1996, section 120.17, 
 66.3   subdivision 16, is amended to read: 
 66.4      Subd. 16.  [COMMUNITY TRANSITION INTERAGENCY COMMITTEE.] A 
 66.5   district, group of districts, or special education cooperative, 
 66.6   in cooperation with the county or counties in which the district 
 66.7   or cooperative is located, shall must establish a community 
 66.8   transition interagency committee for youth with disabilities, 
 66.9   beginning at grade 9 or age equivalent, and their families.  
 66.10  Members of the committee shall must consist of representatives 
 66.11  from special education;, vocational and regular education;, 
 66.12  community education;, post-secondary education and training 
 66.13  institutions;, adults with disabilities who have received 
 66.14  transition services if such persons are available;, parents of 
 66.15  youth with disabilities;, local business or industry;, 
 66.16  rehabilitation services;, county social services;, health 
 66.17  agencies;, and additional public or private adult service 
 66.18  providers as appropriate.  The committee shall must elect a 
 66.19  chair and shall must meet regularly.  The committee shall must: 
 66.20     (1) identify current services, programs, and funding 
 66.21  sources provided within the community for secondary and 
 66.22  post-secondary aged youth with disabilities and their families; 
 66.23     (2) facilitate the development of multiagency teams to 
 66.24  address present and future transition needs of individual 
 66.25  students on their individual education plans; 
 66.26     (3) develop a community plan to include mission, goals, and 
 66.27  objectives, and an implementation plan to assure that transition 
 66.28  needs of individuals with disabilities are met; 
 66.29     (4) recommend changes or improvements in the community 
 66.30  system of transition services; 
 66.31     (5) exchange agency information such as appropriate data, 
 66.32  effectiveness studies, special projects, exemplary programs, and 
 66.33  creative funding of programs; and 
 66.34     (6) following procedures determined by the commissioner, 
 66.35  prepare a yearly summary assessing the progress of transition 
 66.36  services in the community including follow-up of individuals 
 67.1   with disabilities who were provided transition services to 
 67.2   determine postschool outcomes.  The summary must be disseminated 
 67.3   to all adult services agencies involved in the planning and to 
 67.4   the commissioner of children, families, and learning by October 
 67.5   1 of each year.  
 67.6      Sec. 40.  Minnesota Statutes 1996, section 120.17, 
 67.7   subdivision 18, is amended to read: 
 67.8      Subd. 18.  [AGENCY ACCESS TO NONPUBLIC DATA.] The 
 67.9   commissioner of administration shall must prepare a form and 
 67.10  disseminate guidelines for state agencies, political 
 67.11  subdivisions, and other responsible authorities to use to enable 
 67.12  a responsible authority to allow another responsible authority 
 67.13  access to data about a child with a disability that is 
 67.14  classified as not public.  The form and guidelines must be 
 67.15  consistent with section 13.05, subdivision 9, and federal law, 
 67.16  and are not subject to the rulemaking requirements under chapter 
 67.17  14. 
 67.18     Sec. 41.  Minnesota Statutes 1996, section 120.17, 
 67.19  subdivision 19, is amended to read: 
 67.20     Subd. 19.  [PARENT ADVISORY COMMITTEES.] Provisions of 
 67.21  Minnesota Rules, part 3525.1100, regarding parent advisory 
 67.22  committees shall apply to local school boards or cooperative 
 67.23  boards carrying out the provisions of this section. 
 67.24     Sec. 42.  Minnesota Statutes 1996, section 120.1701, 
 67.25  subdivision 2, is amended to read: 
 67.26     Subd. 2.  [DEFINITIONS.] For the purposes of this section 
 67.27  the following terms have the meaning meanings given them.  
 67.28     (a) "Coordinate" means to provide ready access to a 
 67.29  community's services and resources to meet child and family 
 67.30  needs.  
 67.31     (b) "Core early intervention services" means services that 
 67.32  are available at no cost to children and families.  These 
 67.33  services include: 
 67.34     (1) identification and referral; 
 67.35     (2) screening; 
 67.36     (3) evaluation; 
 68.1      (4) assessment; 
 68.2      (5) service coordination; 
 68.3      (6) special education and related services provided under 
 68.4   section 120.17, subdivision 3a, and United States Code, title 
 68.5   20, section 1401; and 
 68.6      (7) protection of parent and child rights by means of 
 68.7   procedural safeguards. 
 68.8      (c) "County board" means a county board established under 
 68.9   chapter 375. 
 68.10     (d) "Early intervention record" means any personally 
 68.11  identifiable information about a child or the child's family 
 68.12  that is generated by the early intervention system, and that 
 68.13  pertains to evaluation and assessment, development of an 
 68.14  individualized family service plan, and the delivery of early 
 68.15  intervention services. 
 68.16     (e) "Early intervention services" means services provided 
 68.17  in conformity with an individualized family service plan that 
 68.18  are designed to meet the special developmental needs of a child 
 68.19  eligible under Code of Federal Regulations, title 34, part 303, 
 68.20  and the needs of the child's family related to enhancing the 
 68.21  child's development and that are selected in collaboration with 
 68.22  the parent.  These services include core early intervention 
 68.23  services and additional early intervention services listed in 
 68.24  subdivision 4 and services defined in Code of Federal 
 68.25  Regulations, title 34, section 303, et seq. 
 68.26     (f) "Early intervention system" means the total effort in 
 68.27  the state to meet the needs of eligible children and their 
 68.28  families, including, but not limited to: 
 68.29     (1) any public agency in the state that receives funds 
 68.30  under the Individuals with Disabilities Education Act, United 
 68.31  States Code, title 20, sections 1471 to 1485 (Part H, Public Law 
 68.32  Number 102-119); 
 68.33     (2) other state and local agencies administering programs 
 68.34  involved in the provision of early intervention services, 
 68.35  including, but not limited to: 
 68.36     (i) the Maternal and Child Health program under title V of 
 69.1   the Social Security Act, United States Code, title 42, sections 
 69.2   701 to 709; 
 69.3      (ii) the Individuals with Disabilities Education Act, 
 69.4   United States Code, title 20, sections 1411 to 1420 (Part B); 
 69.5      (iii) medical assistance under the Social Security Act, 
 69.6   United States Code, title 42, section 1396 et seq.; 
 69.7      (iv) the Developmental Disabilities Assistance and Bill of 
 69.8   Rights Act, United States Code, title 42, sections 6021 to 6030 
 69.9   (Part B); and 
 69.10     (v) the Head Start Act, United States Code, title 42, 
 69.11  sections 9831 to 9852; and 
 69.12     (3) services provided by private groups or third-party 
 69.13  payers in conformity with an individualized family service plan. 
 69.14     (g) "Eligibility for Part H" means eligibility for early 
 69.15  childhood special education under section 120.03 and Minnesota 
 69.16  Rules, part 3525.2335, subpart 1, items A and B. 
 69.17     (h) "Facilitate payment" means helping families access 
 69.18  necessary public or private assistance that provides payment for 
 69.19  services required to meet needs identified in a service plan, 
 69.20  individual education plan (IEP), individual service plan (ISP), 
 69.21  or individualized family service plan (IFSP), according to time 
 69.22  frames required by the plan.  This may also include activities 
 69.23  to collect fees for services provided on a sliding fee basis, 
 69.24  where permitted by state law. 
 69.25     (i) "Individualized family service plan" or "IFSP" means a 
 69.26  written plan for providing services to a child and the child's 
 69.27  family.  
 69.28     (j) "Interagency child find systems" means activities 
 69.29  developed on an interagency basis with the involvement of 
 69.30  interagency early intervention committees and other relevant 
 69.31  community groups to actively seek out, identify, and refer 
 69.32  infants and young children with, or at risk of, disabilities, 
 69.33  and their families. 
 69.34     (k) "Local primary agency" means the agency designated 
 69.35  jointly by the school and county board under subdivision 4. 
 69.36     (l) "Parent" means the biological parent with parental 
 70.1   rights, adoptive parent, legal guardian, or surrogate parent. 
 70.2      (m) "Part H state plan" means the annual state plan 
 70.3   application approved by the federal government under the 
 70.4   Individuals with Disabilities Education Act, United States Code, 
 70.5   title 20, section 1471 et seq. (Part H, Public Law Number 
 70.6   102-119). 
 70.7      (n) "Pay for" means using federal, state, local, and 
 70.8   private dollars available for early intervention services. 
 70.9      (o) "Respite" means short-term, temporary care provided to 
 70.10  a child with a disability due to the temporary absence or need 
 70.11  for relief of the family member or members or primary caregiver, 
 70.12  normally providing the care. 
 70.13     (p) "State lead agency" means the state agency receiving 
 70.14  federal funds under the Individuals with Disabilities Education 
 70.15  Act, United States Code, title 20, section 1471 et seq. (Part H, 
 70.16  Public Law Number 102-119). 
 70.17     (q) "Surrogate parent" means a person appointed by the 
 70.18  local education agency to assure that the rights of the child to 
 70.19  early intervention services are protected.  
 70.20     Sec. 43.  Minnesota Statutes 1997 Supplement, section 
 70.21  120.1701, subdivision 3, is amended to read: 
 70.22     Subd. 3.  [STATE INTERAGENCY COORDINATING COUNCIL.] An 
 70.23  interagency coordinating council of at least 17, but not more 
 70.24  than 25 members is established, in compliance with Public Law 
 70.25  Number 102-119, section 682.  The members shall must be 
 70.26  appointed by the governor.  Council members shall must elect the 
 70.27  council chair.  The representative of the commissioner of 
 70.28  children, families, and learning may not serve as the chair.  
 70.29  The council shall must be composed of at least five parents, 
 70.30  including persons of color, of children with disabilities under 
 70.31  age 12, including at least three parents of a child with a 
 70.32  disability under age seven, five representatives of public or 
 70.33  private providers of services for children with disabilities 
 70.34  under age five, including a special education director, county 
 70.35  social service director, and a community health services or 
 70.36  public health nursing administrator, one member of the senate, 
 71.1   one member of the house of representatives, one representative 
 71.2   of teacher preparation programs in early childhood-special 
 71.3   education or other preparation programs in early childhood 
 71.4   intervention, at least one representative of advocacy 
 71.5   organizations for children with disabilities under age five, one 
 71.6   physician who cares for young children with special health care 
 71.7   needs, one representative each from the commissioners of 
 71.8   commerce, children, families, and learning, health, human 
 71.9   services, and economic security, and a representative from 
 71.10  Indian health services or a tribal council.  Section 15.059, 
 71.11  subdivisions 2 to 5, apply to the council.  The council shall 
 71.12  must meet at least quarterly.  
 71.13     The council shall must address methods of implementing the 
 71.14  state policy of developing and implementing comprehensive, 
 71.15  coordinated, multidisciplinary interagency programs of early 
 71.16  intervention services for children with disabilities and their 
 71.17  families. 
 71.18     The duties of the council include recommending policies to 
 71.19  ensure a comprehensive and coordinated system of all state and 
 71.20  local agency services for children under age five with 
 71.21  disabilities and their families.  The policies must address how 
 71.22  to incorporate each agency's services into a unified state and 
 71.23  local system of multidisciplinary assessment practices, 
 71.24  individual intervention plans, comprehensive systems to find 
 71.25  children in need of services, methods to improve public 
 71.26  awareness, and assistance in determining the role of interagency 
 71.27  early intervention committees.  
 71.28     Each year By June 1, the council shall must recommend to 
 71.29  the governor and the commissioners of children, families, and 
 71.30  learning, health, human services, commerce, and economic 
 71.31  security policies for a comprehensive and coordinated system. 
 71.32     Notwithstanding any other law to the contrary, the state 
 71.33  interagency coordinating council shall expire expires on June 
 71.34  30, 2001.  
 71.35     Sec. 44.  Minnesota Statutes 1996, section 120.1701, 
 71.36  subdivision 4, is amended to read: 
 72.1      Subd. 4.  [RESPONSIBILITIES OF COUNTY BOARDS AND SCHOOL 
 72.2   BOARDS.] (a) It is the joint responsibility of county boards and 
 72.3   school boards to coordinate, provide, and pay for appropriate 
 72.4   services, and to facilitate payment for services from public and 
 72.5   private sources.  Appropriate services for children eligible 
 72.6   under section 120.03 must be determined in consultation with 
 72.7   parents, physicians, and other educational, medical, health, and 
 72.8   human services providers.  The services provided must be in 
 72.9   conformity with an IFSP for each eligible infant and toddler 
 72.10  from birth through age two and its family, or an individual 
 72.11  education plan (IEP) or individual service plan (ISP) for each 
 72.12  eligible child ages three through four.  
 72.13     (b) Appropriate services include family education and 
 72.14  counseling, home visits, occupational and physical therapy, 
 72.15  speech pathology, audiology, psychological services, special 
 72.16  instruction, nursing, respite, nutrition, assistive technology, 
 72.17  transportation and related costs, social work, vision services, 
 72.18  case management including service coordination under subdivision 
 72.19  8, medical services for diagnostic and evaluation purposes, 
 72.20  early identification, and screening, assessment, and health 
 72.21  services necessary to enable children with disabilities to 
 72.22  benefit from early intervention services. 
 72.23     (c) School and county boards shall coordinate early 
 72.24  intervention services.  In the absence of agreements established 
 72.25  according to subdivision 13, service responsibilities for 
 72.26  children birth through age two are as follows: 
 72.27     (1) school boards are required to must provide, pay for, 
 72.28  and facilitate payment for special education and related 
 72.29  services required under section 120.17, subdivision 2; 
 72.30     (2) county boards are required to must provide, pay for, 
 72.31  and facilitate payment for noneducational services of social 
 72.32  work, psychology, transportation and related costs, nursing, 
 72.33  respite, and nutrition services not required under clause (1). 
 72.34     (d) School and county boards may develop an interagency 
 72.35  agreement according to subdivision 13 to establish agency 
 72.36  responsibility that assures that early intervention services are 
 73.1   coordinated, provided, paid for, and that payment is facilitated 
 73.2   from public and private sources. 
 73.3      (e) County and school boards shall must jointly determine 
 73.4   the primary agency in this cooperative effort and must notify 
 73.5   the commissioner of the state lead agency of their decision.  
 73.6      Sec. 45.  Minnesota Statutes 1996, section 120.1701, 
 73.7   subdivision 5, is amended to read: 
 73.8      Subd. 5.  [INTERAGENCY EARLY INTERVENTION COMMITTEES.] (a) 
 73.9   A school district, group of districts, or special education 
 73.10  cooperative, in cooperation with the health and human service 
 73.11  agencies located in the county or counties in which the district 
 73.12  or cooperative is located, shall must establish an interagency 
 73.13  early intervention committee for children with disabilities 
 73.14  under age five and their families.  Committees shall must 
 73.15  include representatives of local and regional health, education, 
 73.16  and county human service agencies;, county boards;, school 
 73.17  boards;, early childhood family education programs;, parents of 
 73.18  young children with disabilities under age 12;, current service 
 73.19  providers;, and may also include representatives from other 
 73.20  private or public agencies.  The committee shall must elect a 
 73.21  chair from among its members and shall must meet at least 
 73.22  quarterly. 
 73.23     (b) The committee shall must develop and implement 
 73.24  interagency policies and procedures concerning the following 
 73.25  ongoing duties: 
 73.26     (1) develop public awareness systems designed to inform 
 73.27  potential recipient families of available programs and services; 
 73.28     (2) implement interagency child find systems designed to 
 73.29  actively seek out, identify, and refer infants and young 
 73.30  children with, or at risk of, disabilities and their families; 
 73.31     (3) establish and evaluate the identification, referral, 
 73.32  child and family assessment systems, procedural safeguard 
 73.33  process, and community learning systems to recommend, where 
 73.34  necessary, alterations and improvements; 
 73.35     (4) assure the development of individualized family service 
 73.36  plans for all eligible infants and toddlers with disabilities 
 74.1   from birth through age two, and their families, and individual 
 74.2   education plans and individual service plans when necessary to 
 74.3   appropriately serve children with disabilities, age three and 
 74.4   older, and their families and recommend assignment of financial 
 74.5   responsibilities to the appropriate agencies.  Agencies are 
 74.6   encouraged; 
 74.7      (5) encourage agencies to develop individual family service 
 74.8   plans for children with disabilities, age three and older; 
 74.9      (5) (6) implement a process for assuring that services 
 74.10  involve cooperating agencies at all steps leading to 
 74.11  individualized programs; 
 74.12     (6) (7) facilitate the development of a transitional plan 
 74.13  if a service provider is not recommended to continue to provide 
 74.14  services; 
 74.15     (7) (8) identify the current services and funding being 
 74.16  provided within the community for children with disabilities 
 74.17  under age five and their families; 
 74.18     (8) (9) develop a plan for the allocation and expenditure 
 74.19  of additional state and federal early intervention funds under 
 74.20  United States Code, title 20, section 1471 et seq.  (Part H, 
 74.21  Public Law Number 102-119) and United States Code, title 20, 
 74.22  section 631, et seq. (Chapter I, Public Law Number 89-313); and 
 74.23     (9) (10) develop a policy that is consistent with section 
 74.24  13.05, subdivision 9, and federal law to enable a member of an 
 74.25  interagency early intervention committee to allow another member 
 74.26  access to data classified as not public. 
 74.27     (c) The local committee shall also: 
 74.28     (1) participate in needs assessments and program planning 
 74.29  activities conducted by local social service, health and 
 74.30  education agencies for young children with disabilities and 
 74.31  their families; 
 74.32     (2) review and comment on the early intervention section of 
 74.33  the total special education system for the district, the county 
 74.34  social service plan, the section or sections of the community 
 74.35  health services plan that address needs of and service 
 74.36  activities targeted to children with special health care needs, 
 75.1   and the section of the maternal and child health special project 
 75.2   grants that address needs of and service activities targeted to 
 75.3   children with chronic illness and disabilities; and 
 75.4      (3) prepare a yearly summary on the progress of the 
 75.5   community in serving young children with disabilities, and their 
 75.6   families, including the expenditure of funds, the identification 
 75.7   of unmet service needs identified on the individual family 
 75.8   services plan and other individualized plans, and local, state, 
 75.9   and federal policies impeding the implementation of this section.
 75.10     (d) The summary must be organized following a format 
 75.11  prescribed by the commissioner of the state lead agency and must 
 75.12  be submitted to each of the local agencies and to the state 
 75.13  interagency coordinating council by October 1 of each year. 
 75.14     The departments of children, families, and learning, 
 75.15  health, and human services must provide assistance to the local 
 75.16  agencies in developing cooperative plans for providing services. 
 75.17     Sec. 46.  Minnesota Statutes 1996, section 120.1701, 
 75.18  subdivision 6, is amended to read: 
 75.19     Subd. 6.  [LOCAL PRIMARY AGENCY.] (a) The local primary 
 75.20  agency shall must: 
 75.21     (1) facilitate the development of annual fund requests that 
 75.22  identify arrangements with other local and regional agencies 
 75.23  providing services as part of the state's early childhood 
 75.24  intervention system and that result in service availability on a 
 75.25  year-round basis, as necessary; 
 75.26     (2) administer funds received through the annual fund 
 75.27  request; 
 75.28     (3) provide oversight for data collection efforts; 
 75.29     (4) facilitate completion of interagency early intervention 
 75.30  committee duties as indicated in subdivision 5; 
 75.31     (5) request mediation from the state lead agency, if 
 75.32  necessary; 
 75.33     (6) request assistance from the state lead agency when 
 75.34  disputes between agencies cannot be resolved within 20 calendar 
 75.35  days; and 
 75.36     (7) receive written requests from parents for matters that 
 76.1   may be resolved through due process hearings. 
 76.2      (b) When the local primary agency is not an education 
 76.3   agency, resources distributed under the early intervention fund 
 76.4   shall must be transferred from a local educational agency to a 
 76.5   noneducation agency using a state provided contract.  A local 
 76.6   primary agency may budget for indirect costs at an amount not to 
 76.7   exceed five percent of the amount allocated from the early 
 76.8   intervention fund. 
 76.9      Sec. 47.  Minnesota Statutes 1996, section 120.1701, 
 76.10  subdivision 7, is amended to read: 
 76.11     Subd. 7.  [INDIVIDUALIZED FAMILY SERVICE PLAN.] (a) A team 
 76.12  must participate in IFSP meetings to develop the individualized 
 76.13  family service plan IFSP.  The team shall include:  
 76.14     (1) a parent or parents of the child; 
 76.15     (2) other family members, as requested by the parent, if 
 76.16  feasible to do so; 
 76.17     (3) an advocate or person outside of the family, if the 
 76.18  parent requests that the person participate; 
 76.19     (4) the service coordinator who has been working with the 
 76.20  family since the initial referral, or who has been designated by 
 76.21  the public agency to be responsible for implementation of the 
 76.22  IFSP; and 
 76.23     (5) a person or persons involved in conducting evaluations 
 76.24  and assessments.  
 76.25     (b) The IFSP must include: 
 76.26     (1) information about the child's developmental status; 
 76.27     (2) family information, with the consent of the family; 
 76.28     (3) major outcomes expected to be achieved by the child and 
 76.29  the family, that include the criteria, procedures, and 
 76.30  timelines; 
 76.31     (4) specific early intervention services necessary to meet 
 76.32  the unique needs of the child and the family to achieve the 
 76.33  outcomes; 
 76.34     (5) payment arrangements, if any; 
 76.35     (6) medical and other services that the child needs, but 
 76.36  that are not required under the Individual with Disabilities 
 77.1   Education Act, United States Code, title 20, section 1471 et 
 77.2   seq. (Part H, Public Law Number 102-119) including funding 
 77.3   sources to be used in paying for those services and the steps 
 77.4   that will be taken to secure those services through public or 
 77.5   private sources; 
 77.6      (7) dates and duration of early intervention services; 
 77.7      (8) name of the service coordinator; 
 77.8      (9) steps to be taken to support a child's transition from 
 77.9   early intervention services to other appropriate services; and 
 77.10     (10) signature of the parent and authorized signatures of 
 77.11  the agencies responsible for providing, paying for, or 
 77.12  facilitating payment, or any combination of these, for early 
 77.13  intervention services.  
 77.14     Sec. 48.  Minnesota Statutes 1996, section 120.1701, 
 77.15  subdivision 8, is amended to read: 
 77.16     Subd. 8.  [SERVICE COORDINATION.] (a) The team developing 
 77.17  the individualized family service plan IFSP under subdivision 7 
 77.18  shall must select a service coordinator to carry out service 
 77.19  coordination activities on an interagency basis.  Service 
 77.20  coordination must actively promote a family's capacity and 
 77.21  competency to identify, obtain, coordinate, monitor, and 
 77.22  evaluate resources and services to meet the family's needs.  
 77.23  Service coordination activities include: 
 77.24     (1) coordinating the performance of evaluations and 
 77.25  assessments; 
 77.26     (2) facilitating and participating in the development, 
 77.27  review, and evaluation of individualized family service plans; 
 77.28     (3) assisting families in identifying available service 
 77.29  providers; 
 77.30     (4) coordinating and monitoring the delivery of available 
 77.31  services; 
 77.32     (5) informing families of the availability of advocacy 
 77.33  services; 
 77.34     (6) coordinating with medical, health, and other service 
 77.35  providers; 
 77.36     (7) facilitating the development of a transition plan at 
 78.1   least six months prior to before the time the child is no longer 
 78.2   eligible for early intervention services, if appropriate; 
 78.3      (8) managing the early intervention record and submitting 
 78.4   additional information to the local primary agency at the time 
 78.5   of periodic review and annual evaluations; and 
 78.6      (9) notifying a local primary agency when disputes between 
 78.7   agencies impact service delivery required by an individualized 
 78.8   family service plan IFSP. 
 78.9      (b) A service coordinator must be knowledgeable about 
 78.10  children and families receiving services under this section, 
 78.11  requirements of state and federal law, and services available in 
 78.12  the interagency early childhood intervention system.  
 78.13     Sec. 49.  Minnesota Statutes 1996, section 120.1701, 
 78.14  subdivision 8a, is amended to read: 
 78.15     Subd. 8a.  [EARLY INTERVENTION RESPITE.] The provision of 
 78.16  respite services for an eligible child and family shall must be 
 78.17  determined in the context of the IFSP development based on the 
 78.18  individual needs of the child and family and with consideration 
 78.19  given to the following criteria: 
 78.20     (1) severity of the child's disability and needs; 
 78.21     (2) potential risk of out-of-home placement for the child 
 78.22  if respite services are not provided; 
 78.23     (3) parental lack of access to informal support systems, 
 78.24  including, but not limited to, extended family, supportive 
 78.25  friends, and community supports; 
 78.26     (4) presence of factors known to increase family stress, 
 78.27  including, but not limited to, family size and presence of 
 78.28  another child or family member with a disability; 
 78.29     (5) the availability of other public services provided to 
 78.30  the family which that assist the parent or primary caretaker in 
 78.31  obtaining relief from caretaking responsibilities; and 
 78.32     (6) the perceived and expressed level of need for respite 
 78.33  services by the parent. 
 78.34     Counties are encouraged to make a variety of respite 
 78.35  service models available, which may include in or out-of-home 
 78.36  respite, family reimbursement programs, and parent-to-parent 
 79.1   respite projects.  
 79.2      Sec. 50.  Minnesota Statutes 1996, section 120.1701, 
 79.3   subdivision 9, is amended to read: 
 79.4      Subd. 9.  [EARLY INTERVENTION FLOW-THROUGH DOLLARS.] (a) 
 79.5   The state lead agency shall must administer the early 
 79.6   intervention account which that consists of federal 
 79.7   allocations.  The Part H state plan shall must state the amount 
 79.8   of federal resources in the early intervention account available 
 79.9   for use by local agencies.  The state lead agency shall must 
 79.10  distribute the funds to the local primary agency based on a 
 79.11  December 1 count of the prior year of Part H eligible children 
 79.12  for the following purposes:  
 79.13     (1) as provided in Code of Federal Regulations, title 34, 
 79.14  part 303.425, to arrange for payment for early intervention 
 79.15  services not elsewhere available, or to pay for services during 
 79.16  the pendency of a conflict procedure, including mediation, 
 79.17  complaints, due process hearings, and interagency disputes; and 
 79.18     (2) to support interagency child find system activities.  
 79.19     (b) The priority purpose for this fund is paragraph (a), 
 79.20  clause (1).  The local primary agency shall must reallocate 
 79.21  resources from the early intervention fund as necessary in order 
 79.22  to meet this priority. 
 79.23     (c) Nothing in this subdivision shall limit limits the 
 79.24  state lead agency's authority to allocate discretionary federal 
 79.25  funds for any purpose consistent with the Individuals with 
 79.26  Disabilities Education Act, United States Code, title 20, 
 79.27  sections 1471 to 1485 (Part H, Public Law Number 102-119) and 
 79.28  regulations adopted under United States Code, title 20, sections 
 79.29  1471 to 1485. 
 79.30     (d) Each county board must continue to spend for early 
 79.31  intervention services under subdivision 2, paragraph (e), an 
 79.32  amount equal to the total county expenditure during the period 
 79.33  from January 1, 1993, to December 31, 1993, for these same 
 79.34  services.  The commissioner of human services, in consultation 
 79.35  with the commissioner of health and the association of Minnesota 
 79.36  counties, shall must establish a process for determining base 
 80.1   year 1993 expenditures. 
 80.2      (e) County boards that have submitted base year 1993 
 80.3   expenditures as required under paragraph (d) are not required to 
 80.4   pay any increased cost over the base year 1993 for early 
 80.5   intervention services resulting from implementing the early 
 80.6   intervention system.  Increased costs to county boards may be 
 80.7   paid for with early intervention flow-through dollars. 
 80.8      (f) School boards are not required to pay for services 
 80.9   defined in subdivision 4, paragraph (c), clause (2). 
 80.10     Sec. 51.  Minnesota Statutes 1996, section 120.1701, 
 80.11  subdivision 10, is amended to read: 
 80.12     Subd. 10.  [PAYMENT FOR SERVICES.] Core early intervention 
 80.13  services shall must be provided at public expense with no cost 
 80.14  to parents.  Parents shall must be requested to assist in the 
 80.15  cost of additional early intervention services by using 
 80.16  third-party payment sources and applying for available 
 80.17  resources.  Payment structures permitted under state law shall 
 80.18  must be used to pay for additional early intervention services.  
 80.19  Parental financial responsibility shall must be clearly defined 
 80.20  in the individualized family service plan IFSP.  A parent's 
 80.21  inability to pay shall must not prohibit a child from receiving 
 80.22  needed early intervention services.  
 80.23     Sec. 52.  Minnesota Statutes 1996, section 120.1701, 
 80.24  subdivision 11, is amended to read: 
 80.25     Subd. 11.  [PAYOR OF LAST RESORT.] (a) For fiscal years 
 80.26  1995 and 1996, the state lead agency shall must establish a 
 80.27  reserve account from federal sources to pay for services in 
 80.28  dispute or to pay for early intervention services when local 
 80.29  agencies have exhausted all other public and private funds 
 80.30  available for Part H eligible children. 
 80.31     (b) The lead agency shall must report to the legislature by 
 80.32  January 1, 1996, regarding county board expenditures for early 
 80.33  intervention services and the continuing need and funding of the 
 80.34  reserve account.  
 80.35     Sec. 53.  Minnesota Statutes 1996, section 120.1701, 
 80.36  subdivision 12, is amended to read: 
 81.1      Subd. 12.  [MAINTENANCE OF EFFORT.] A county human services 
 81.2   agency or county board shall must continue to provide services 
 81.3   set forth in their county social service agency plan.  The 
 81.4   county human services agency or county board shall must serve 
 81.5   children with disabilities under age five, and their families, 
 81.6   or as specified in the individualized family service plan IFSP 
 81.7   for children with disabilities, birth through age two, or the 
 81.8   individual service plan of each child.  Special instruction and 
 81.9   related services for which a child with a disability is eligible 
 81.10  under this section are the responsibility of the local school 
 81.11  board.  It is the joint responsibility of county boards and 
 81.12  school boards to coordinate, provide, and pay for all 
 81.13  appropriate services required in subdivision 11b and to 
 81.14  facilitate payment for services from public and private sources. 
 81.15     Sec. 54.  Minnesota Statutes 1996, section 120.1701, 
 81.16  subdivision 15, is amended to read: 
 81.17     Subd. 15.  [BENEFITS COORDINATION.] The department of 
 81.18  health shall must provide technical assistance in a timely 
 81.19  manner to service coordinators, parents of children with 
 81.20  disabilities, and agencies in situations requiring the 
 81.21  coordination of health insurance benefits, or the identification 
 81.22  of third-party payor responsibilities to provide necessary 
 81.23  health benefits. 
 81.24     Sec. 55.  Minnesota Statutes 1996, section 120.1701, 
 81.25  subdivision 17, is amended to read: 
 81.26     Subd. 17.  [MEDIATION PROCEDURE.] The commissioner of the 
 81.27  state lead agency shall must use federal funds to provide 
 81.28  mediation for the activities in paragraphs (a) and (b). 
 81.29     (a) A parent may resolve a dispute regarding issues in 
 81.30  subdivision 16, paragraph (b), clause (5), through mediation. If 
 81.31  the parent chooses mediation, all public agencies involved in 
 81.32  the dispute shall must participate in the mediation process.  
 81.33  The parent and the public agencies must complete the mediation 
 81.34  process within 20 calendar days of the date the commissioner 
 81.35  receives a parent's written request for mediation.  The 
 81.36  mediation process may not be used to delay a parent's right to a 
 82.1   due process hearing.  The resolution of the mediation is not 
 82.2   binding on any party. 
 82.3      (b) The local primary agency may request mediation on 
 82.4   behalf of involved agencies when there are disputes between 
 82.5   agencies regarding responsibilities to coordinate, provide, pay 
 82.6   for, or facilitate payment for early intervention services.  
 82.7      Sec. 56.  Minnesota Statutes 1996, section 120.1701, 
 82.8   subdivision 19, is amended to read: 
 82.9      Subd. 19.  [INTERAGENCY DISPUTE PROCEDURE.] (a) A dispute 
 82.10  between a school board and a county board that is responsible 
 82.11  for implementing the provisions of subdivision 4 regarding early 
 82.12  identification, child and family assessment, service 
 82.13  coordination, and IFSP development and implementation shall must 
 82.14  be resolved according to this subdivision when the dispute 
 82.15  involves services provided to children and families eligible 
 82.16  under the Individuals with Disabilities Education Act, United 
 82.17  States Code, title 20, section 1471 et seq. (Part H, Public Law 
 82.18  Number 102-119). 
 82.19     (b) A dispute occurs when the school board and county board 
 82.20  are unable to agree as to who is responsible to coordinate, 
 82.21  provide, pay for, or facilitate payment for services from public 
 82.22  and private sources. 
 82.23     (c) Written and signed disputes shall must be filed with 
 82.24  the local primary agency. 
 82.25     (d) The local primary agency shall have attempted must 
 82.26  attempt to resolve the matter with the involved school board and 
 82.27  county board and may request mediation from the commissioner of 
 82.28  the state lead agency for this purpose. 
 82.29     (e) When interagency disputes have not been resolved within 
 82.30  30 calendar days, the local primary agency shall must request 
 82.31  the commissioner of the state lead agency to review the matter 
 82.32  with the commissioners of health and human services and make a 
 82.33  decision.  The commissioner shall must provide a consistent 
 82.34  process for reviewing those procedures.  The commissioners' 
 82.35  decision is binding subject to the right of an aggrieved party 
 82.36  to appeal to the state court of appeals. 
 83.1      (f) The local primary agency shall must ensure that 
 83.2   eligible children and their families receive early intervention 
 83.3   services during resolution of a dispute.  While a local dispute 
 83.4   is pending, the local primary agency shall must either assign 
 83.5   financial responsibility to an agency or pay for the service 
 83.6   from the early intervention account under subdivision 9.  If in 
 83.7   resolving the dispute, it is determined that the assignment of 
 83.8   financial responsibility was inappropriate, the responsibility 
 83.9   for payment must be reassigned to the appropriate agency and the 
 83.10  responsible agency shall must make arrangements for reimbursing 
 83.11  any expenditures incurred by the agency originally assigned 
 83.12  financial responsibility. 
 83.13     Sec. 57.  Minnesota Statutes 1996, section 120.1701, 
 83.14  subdivision 20, is amended to read:  
 83.15     Subd. 20.  [DUE PROCESS HEARINGS.] The procedures for due 
 83.16  process hearings and appeals shall must be the same as those in 
 83.17  section 120.17, subdivision 3b.  The responsibility for payment 
 83.18  of costs and conducting due process hearings and appeals shall 
 83.19  be allocated to the appropriate agency in accordance with 
 83.20  subdivisions 5, 13, and 16. 
 83.21     Sec. 58.  Minnesota Statutes 1996, section 120.1701, 
 83.22  subdivision 21, is amended to read:  
 83.23     Subd. 21.  [DATA COLLECTION.] By July 1, 1994, the 
 83.24  departments of children, families, and learning, health, and 
 83.25  human services shall must develop a plan to collect data about 
 83.26  which early intervention services are being provided to children 
 83.27  and families eligible under the Individuals with Disabilities 
 83.28  Education Act, United States Code, title 20, section 1471 et 
 83.29  seq. (Part H, Public Law Number 102-119) and sources of payment 
 83.30  for those services.  
 83.31     Sec. 59.  Minnesota Statutes 1996, section 120.1701, 
 83.32  subdivision 22, is amended to read: 
 83.33     Subd. 22.  [STATE INTERAGENCY AGREEMENT.] (a) The 
 83.34  commissioners of the departments of children, families, and 
 83.35  learning, health, and human services shall must enter into an 
 83.36  agreement to implement this section and Part H, Public Law 
 84.1   Number 102-119, and as required by Code of Federal Regulations, 
 84.2   title 34, section 303.523, to promote the development and 
 84.3   implementation of interagency, coordinated, multidisciplinary 
 84.4   state and local early childhood intervention service systems for 
 84.5   serving eligible young children with disabilities, birth through 
 84.6   age two, and their families.  The agreement must be reviewed 
 84.7   annually. 
 84.8      (b) The state interagency agreement shall must outline at a 
 84.9   minimum the conditions, procedures, purposes, and 
 84.10  responsibilities of the participating state and local agencies 
 84.11  for the following: 
 84.12     (1) membership, roles, and responsibilities of a state 
 84.13  interagency committee for the oversight of priorities and budget 
 84.14  allocations under Part H, Public Law Number 102-119, and other 
 84.15  state allocations for this program; 
 84.16     (2) child find; 
 84.17     (3) establishment of local interagency agreements; 
 84.18     (4) review by a state interagency committee of the 
 84.19  allocation of additional state and federal early intervention 
 84.20  funds by local agencies; 
 84.21     (5) fiscal responsibilities of the state and local 
 84.22  agencies; 
 84.23     (6) intraagency and interagency dispute resolution; 
 84.24     (7) payor of last resort; 
 84.25     (8) maintenance of effort; 
 84.26     (9) procedural safeguards, including mediation; 
 84.27     (10) complaint resolution; 
 84.28     (11) quality assurance; 
 84.29     (12) data collection; 
 84.30     (13) an annual summary to the state interagency 
 84.31  coordinating council regarding conflict resolution activities 
 84.32  including disputes, due process hearings, and complaints; and 
 84.33     (14) other components of the state and local early 
 84.34  intervention system consistent with Public Law Number 102-119. 
 84.35  Written materials must be developed for parents, IEIC's, and 
 84.36  local service providers that describe procedures developed under 
 85.1   this section as required by Code of Federal Regulations, title 
 85.2   34, section 303. 
 85.3      Sec. 60.  Minnesota Statutes 1996, section 120.172, 
 85.4   subdivision 2, is amended to read: 
 85.5      Subd. 2.  [STATE PLAN.] The state board of education shall 
 85.6   not adopt any provision in the state plan for special education 
 85.7   which that reduces the opportunities for parents and school 
 85.8   districts to resolve their differences through conciliation.  
 85.9      Sec. 61.  Minnesota Statutes 1996, section 120.173, 
 85.10  subdivision 1, is amended to read: 
 85.11     Subdivision 1.  [COMMISSIONER APPROVAL.] The commissioner 
 85.12  of children, families, and learning may approve applications 
 85.13  from school districts to provide prevention services as an 
 85.14  alternative to special education and other compensatory programs 
 85.15  during three school years.  A district with an approved program 
 85.16  may provide instruction and services in a regular education 
 85.17  classroom to eligible pupils.  Pupils eligible to participate in 
 85.18  the program are low-performing pupils who, based on documented 
 85.19  experience, the professional judgment of a classroom teacher, or 
 85.20  a team of licensed professionals, would eventually qualify for 
 85.21  special education instruction or related services under section 
 85.22  120.17 if the intervention services authorized by this section 
 85.23  were unavailable.  Pupils may be provided services during 
 85.24  extended school days and throughout the entire year.  
 85.25     Sec. 62.  Minnesota Statutes 1996, section 120.173, 
 85.26  subdivision 3, is amended to read: 
 85.27     Subd. 3.  [EVALUATION.] The application shall must also set 
 85.28  forth the review and evaluation procedures to be used by the 
 85.29  district addressing at least the following:  
 85.30     (1) the number of pupils with and without a disability 
 85.31  served; 
 85.32     (2) the impact of the program on the academic progress and 
 85.33  social adjustment of the pupils; 
 85.34     (3) the level of satisfaction teachers, parents, and pupils 
 85.35  have with the program; 
 85.36     (4) the effect of the program on the number of referrals 
 86.1   for special education, federal chapter 1, and other programs; 
 86.2      (5) the amount of time spent by teachers on procedural 
 86.3   activities; 
 86.4      (6) the increased amount of time the pupil is in a regular 
 86.5   education classroom; and 
 86.6      (7) cost implications.  
 86.7      Sec. 63.  Minnesota Statutes 1996, section 120.173, 
 86.8   subdivision 4, is amended to read: 
 86.9      Subd. 4.  [REVIEW FOR EXCESS EXPENDITURES.] The 
 86.10  commissioner shall must review each application to determine 
 86.11  whether the personnel, equipment, supplies, residential aid, and 
 86.12  summer school are necessary to meet the district's obligation to 
 86.13  provide special instruction and services to children with a 
 86.14  disability according to section 120.17.  The commissioner shall 
 86.15  may not approve revenue for any expenditures determined to be 
 86.16  unnecessary. 
 86.17     Sec. 64.  Minnesota Statutes 1996, section 120.173, 
 86.18  subdivision 6, is amended to read:  
 86.19     Subd. 6.  [PUPIL RIGHTS.] A pupil participating in the 
 86.20  program must be individually evaluated according to the pupil's 
 86.21  actual abilities and needs.  A pupil who is eligible for 
 86.22  services under section 120.17 is entitled to procedural 
 86.23  protections provided under Public Law Number 94-142 in any 
 86.24  matter that affects the identification, evaluation, placement, 
 86.25  or change in placement of a pupil.  The district must ensure the 
 86.26  protection of a pupil's civil rights, provide equal educational 
 86.27  opportunities, and prohibit discrimination.  Failure to comply 
 86.28  with this subdivision will at least cause a district to become 
 86.29  ineligible to participate in the program.  Notwithstanding rules 
 86.30  of the state board of education, a pupil's rights under this 
 86.31  section cannot be waived by the state board. 
 86.32     Sec. 65.  Minnesota Statutes 1997 Supplement, section 
 86.33  120.181, is amended to read: 
 86.34     120.181 [PLACEMENT OF CHILDREN WITHOUT DISABILITIES; 
 86.35  EDUCATION AND TRANSPORTATION.] 
 86.36     The responsibility for providing instruction and 
 87.1   transportation for a pupil without a disability who has a 
 87.2   short-term or temporary physical or emotional illness or 
 87.3   disability, as determined by the standards of the state board, 
 87.4   and who is temporarily placed for care and treatment for that 
 87.5   illness or disability, shall must be determined as provided in 
 87.6   this section.  
 87.7      (a) The school district of residence of the pupil shall be 
 87.8   is the district in which the pupil's parent or guardian resides, 
 87.9   or when the district designated by the commissioner if neither 
 87.10  the pupil's parent nor guardian resides is living within the 
 87.11  state and tuition has been denied, the district designated by 
 87.12  the commissioner of children, families, and learning.  
 87.13     (b) Prior to Before the placement of a pupil for care and 
 87.14  treatment, the district of residence shall must be notified and 
 87.15  provided an opportunity to participate in the placement 
 87.16  decision.  When an immediate emergency placement is necessary 
 87.17  and time does not permit resident district participation in the 
 87.18  placement decision, the district in which the pupil is 
 87.19  temporarily placed, if different from the district of residence, 
 87.20  shall must notify the district of residence of the emergency 
 87.21  placement within 15 days of the placement.  
 87.22     (c) When a pupil without a disability is temporarily placed 
 87.23  for care and treatment in a day program and the pupil continues 
 87.24  to live within the district of residence during the care and 
 87.25  treatment, the district of residence shall must provide 
 87.26  instruction and necessary transportation for the pupil.  The 
 87.27  district may provide the instruction at a school within the 
 87.28  district of residence, at the pupil's residence, or in the case 
 87.29  of a placement outside of the resident district, in the district 
 87.30  in which the day treatment program is located by paying tuition 
 87.31  to that district.  The district of placement may contract with a 
 87.32  facility to provide instruction by teachers licensed by the 
 87.33  state board of teaching.  
 87.34     (d) When a pupil without a disability is temporarily placed 
 87.35  in a residential program for care and treatment, the district in 
 87.36  which the pupil is placed shall must provide instruction for the 
 88.1   pupil and necessary transportation while the pupil is receiving 
 88.2   instruction, and in the case of a placement outside of the 
 88.3   district of residence, the nonresident district shall must bill 
 88.4   the district of residence for the actual cost of providing the 
 88.5   instruction for the regular school year and for summer school, 
 88.6   excluding transportation costs.  When a pupil without a 
 88.7   disability is temporarily placed in a residential program 
 88.8   outside the district of residence, the administrator of the 
 88.9   court placing the pupil shall must send timely written notice of 
 88.10  the placement to the district of residence.  The district of 
 88.11  placement may contract with a residential facility to provide 
 88.12  instruction by teachers licensed by the state board of teaching. 
 88.13     (e) The district of residence shall must include the pupil 
 88.14  in its residence count of pupil units and pay tuition as 
 88.15  provided in section 124.18 to the district providing the 
 88.16  instruction.  Transportation costs shall must be paid by the 
 88.17  district providing the transportation and the state shall must 
 88.18  pay transportation aid to that district.  For purposes of 
 88.19  computing state transportation aid, pupils governed by this 
 88.20  subdivision shall must be included in the disabled 
 88.21  transportation category.  
 88.22     Sec. 66.  Minnesota Statutes 1996, section 120.1811, is 
 88.23  amended to read: 
 88.24     120.1811 [RESIDENTIAL TREATMENT FACILITIES; EDUCATION.] 
 88.25     Subdivision 1.  [EDUCATIONAL SCREENING.] Secure and 
 88.26  nonsecure residential treatment facilities licensed by the 
 88.27  department of human services or the department of corrections 
 88.28  shall must screen each juvenile who is held in a facility for at 
 88.29  least 72 hours, excluding weekends or holidays, using an 
 88.30  educational screening tool identified by the department of 
 88.31  children, families, and learning, unless the facility determines 
 88.32  that the juvenile has a current individual education plan and 
 88.33  obtains a copy of it.  The department of children, families, and 
 88.34  learning shall must develop or identify an education screening 
 88.35  tool for use in residential facilities.  The tool must include a 
 88.36  life skills development component. 
 89.1      Subd. 2.  [RULEMAKING.] The state board of education may, 
 89.2   in consultation with the commissioners of corrections and human 
 89.3   services, make or amend rules relating to education programs in 
 89.4   residential treatment facilities, if necessary, to implement 
 89.5   this section. 
 89.6      Sec. 67.  Minnesota Statutes 1996, section 120.182, is 
 89.7   amended to read: 
 89.8      120.182 [SPECIAL EDUCATION DIRECTOR.] 
 89.9      The authority for the selection and employment of the 
 89.10  director of a special education cooperative established pursuant 
 89.11  to section 120.17 or 471.59 shall be is vested in the governing 
 89.12  board of the cooperative.  Notwithstanding the provisions of 
 89.13  section 125.12, subdivision 6a or 6b, no individual shall have a 
 89.14  right to employment as a director based on seniority or order of 
 89.15  employment by the cooperative.  
 89.16     Sec. 68.  Minnesota Statutes 1996, section 120.183, is 
 89.17  amended to read: 
 89.18     120.183 [INTERAGENCY OFFICE ON TRANSITION SERVICES.] 
 89.19     The commissioner of children, families, and learning shall 
 89.20  must establish an interagency office on transition services to:  
 89.21     (1) gather and coordinate data on transition services for 
 89.22  secondary age pupils with a disability; 
 89.23     (2) provide information, consultation, and technical 
 89.24  assistance to state and local agencies involved in the delivery 
 89.25  of services to pupils with a disability in transition from 
 89.26  secondary school programs to employment and post-secondary 
 89.27  training programs; 
 89.28     (3) assist agencies in establishing local interagency 
 89.29  agreements to assure the necessary services for efficient and 
 89.30  appropriate transition from school to work or post-secondary 
 89.31  training programs; and 
 89.32     (4) assist regions and local areas in planning interagency 
 89.33  in-service training to develop and improve transition services.  
 89.34     Sec. 69.  Minnesota Statutes 1996, section 120.185, is 
 89.35  amended to read: 
 89.36     120.185 [ACCOMMODATING STUDENTS WITH DISABILITIES.] 
 90.1      A school or school district shall must provide a student 
 90.2   who is an "individual with a disability" under Section 504 of 
 90.3   the Rehabilitation Act of 1973, United States Code, title 29, 
 90.4   section 794, or under the Americans with Disabilities Act, 
 90.5   Public Law Number 101-336, with reasonable accommodations or 
 90.6   modifications in programs.  
 90.7      Sec. 70.  Minnesota Statutes 1996, section 120.188, is 
 90.8   amended to read: 
 90.9      120.188 [PURCHASING GUIDELINES.] 
 90.10     Subdivision 1.  [RIGHTS OF SCHOOL DISTRICTS TO PURCHASE 
 90.11  SCHOOL-OWNED ASSISTIVE TECHNOLOGY.] (a) When a child with a 
 90.12  disability exits a school district and enters a new school 
 90.13  district, the child's new school district may purchase any 
 90.14  assistive technology devices that the child's former school 
 90.15  district has purchased on the child's behalf.  The child's new 
 90.16  school district must notify, in writing, the child's former 
 90.17  school district of the intent to purchase the device.  The 
 90.18  child's new school district must complete a purchase agreement 
 90.19  according to section 120.1701, subdivision 10.  The child's 
 90.20  former school district must respond, in writing, to the request 
 90.21  to purchase within 30 days.  
 90.22     (b) School Districts may decline to sell a device if they 
 90.23  can demonstrate the technology is a general use device or can be 
 90.24  modified for use by other students. 
 90.25     Subd. 2.  [LIABILITY FOR USED EQUIPMENT.] The child's 
 90.26  former school district shall is not be liable for any 
 90.27  nonconformities in the equipment after it is purchased by the 
 90.28  child's new school district, or for injuries arising out of the 
 90.29  use of the assistive technology device.  This section does not 
 90.30  foreclose the child's right to bring suit against the 
 90.31  manufacturer, assistive device lessor, or assistive device 
 90.32  dealer for nonconformities in or injuries arising out of the use 
 90.33  of the assistive technology device. 
 90.34     Subd. 3.  [THIRD-PARTY PAYORS.] Nothing contained in this 
 90.35  section shall may be construed as decreasing the obligation of 
 90.36  an insurance company or other third-party payor to provide 
 91.1   coverage for assistive technology. 
 91.2      Sec. 71.  Minnesota Statutes 1996, section 120.189, is 
 91.3   amended to read: 
 91.4      120.189 [INTERAGENCY AGREEMENT TO PURCHASE USED ASSISTIVE 
 91.5   TECHNOLOGY DEVICES.] 
 91.6      Subdivision 1.  [OPTION TO PURCHASE BY DEPARTMENT OF 
 91.7   ECONOMIC SECURITY.] (a) When a child with a disability 
 91.8   transitions into a work environment or enrolls in a 
 91.9   post-secondary course or program, the department of economic 
 91.10  security may purchase any assistive technology device that the 
 91.11  child's former school district purchased on the child's behalf. 
 91.12     (b) The department of economic security may purchase an 
 91.13  assistive technology device initially purchased by a school 
 91.14  district for a child who is currently a recipient of 
 91.15  rehabilitation services and who needs the identical assistive 
 91.16  technology device as stated on the recipient's individual 
 91.17  written rehabilitation plan.  The purchase may be made not more 
 91.18  than three months prior to before the child exiting exits the 
 91.19  school district. 
 91.20     Subd. 2.  [LIABILITY FOR USED EQUIPMENT.] The department of 
 91.21  economic security and the department of children, families, and 
 91.22  learning shall are not be liable for any nonconformities in the 
 91.23  equipment after it is purchased by the department of economic 
 91.24  security, or for injuries arising out of the use of the 
 91.25  assistive technology device.  This section does not foreclose 
 91.26  the child's right to bring suit against the manufacturer, 
 91.27  assistive device lessor, or assistive device dealer for 
 91.28  nonconformities in or injuries arising out of the use of the 
 91.29  assistive technology device. 
 91.30     Subd. 3.  [THIRD-PARTY PAYOR.] Nothing contained in this 
 91.31  section shall may be construed as decreasing the obligation of 
 91.32  an insurance company or other third-party payor to provide 
 91.33  coverage for assistive technology. 
 91.34     Sec. 72.  Minnesota Statutes 1996, section 120.190, is 
 91.35  amended to read: 
 91.36     120.190 [PURCHASE AGREEMENT; PRICE FORMULA.] 
 92.1      The commissioner shall must develop guidelines for the sale 
 92.2   of used assistive technology including a purchase agreement, a 
 92.3   formula for establishing the sale price, and other terms and 
 92.4   conditions of the sale. 
 92.5      Sec. 73.  Minnesota Statutes 1996, section 120.80, is 
 92.6   amended to read: 
 92.7      120.80 [EARLY GRADUATION.] 
 92.8      Subdivision 1.  Notwithstanding any law to the contrary, 
 92.9   any secondary school student who has completed all required 
 92.10  courses may, with the approval of the student, the student's 
 92.11  parent or guardian, and local school officials, graduate prior 
 92.12  to before the completion of the school year.  General education 
 92.13  revenue attributable to the student must be paid as though the 
 92.14  student was in attendance for the entire year. 
 92.15     Sec. 74.  Minnesota Statutes 1996, section 123.3513, is 
 92.16  amended to read: 
 92.17     123.3513 [ADVANCED ACADEMIC CREDIT.] 
 92.18     A school district shall must grant academic credit to a 
 92.19  pupil attending an accelerated or advanced academic course 
 92.20  offered by a higher education institution or a nonprofit public 
 92.21  agency other than the district, if the pupil successfully 
 92.22  completes the course attended and passes an examination approved 
 92.23  by the district.  If no comparable course is offered by the 
 92.24  district, the commissioner shall determine the number of credits 
 92.25  which shall be granted to a pupil who successfully completes and 
 92.26  passes the course.  If a comparable course is offered by the 
 92.27  district, the school board shall must grant a comparable number 
 92.28  of credits to the pupil.  If there is a dispute between the 
 92.29  district and the pupil regarding the number of credits granted 
 92.30  for a particular course, the pupil may appeal the school board's 
 92.31  decision to the commissioner.  The commissioner's decision 
 92.32  regarding the number of credits shall be final.  
 92.33     The credits granted to a pupil shall be counted toward the 
 92.34  graduation requirements and subject area requirements of the 
 92.35  school district.  Evidence of successful completion of each 
 92.36  class and credits granted shall be included in the pupil's 
 93.1   secondary school record.  
 93.2      Sec. 75.  Minnesota Statutes 1996, section 123.3514, 
 93.3   subdivision 3, is amended to read: 
 93.4      Subd. 3.  [DEFINITIONS.] For purposes of this section, an 
 93.5   the following terms have the meanings given to them. 
 93.6      (a) "Eligible institution" means a Minnesota public 
 93.7   post-secondary institution, a private, nonprofit two-year trade 
 93.8   and technical school granting associate degrees, an 
 93.9   opportunities industrialization center accredited by the North 
 93.10  Central Association of Colleges and Schools, or a private, 
 93.11  residential, two-year or four-year, liberal arts, 
 93.12  degree-granting college or university located in Minnesota.  
 93.13  "Course" means a course or program.  
 93.14     (b) "Course" means a course or program.  
 93.15     Sec. 76.  Minnesota Statutes 1997 Supplement, section 
 93.16  123.3514, subdivision 4, is amended to read: 
 93.17     Subd. 4.  [AUTHORIZATION; NOTIFICATION.] Notwithstanding 
 93.18  any other law to the contrary, an 11th or 12th grade pupil 
 93.19  enrolled in a school or an American Indian-controlled tribal 
 93.20  contract or grant school eligible for aid under section 124.86, 
 93.21  except a foreign exchange pupil enrolled in a district under a 
 93.22  cultural exchange program, may apply to an eligible institution, 
 93.23  as defined in subdivision 3, to enroll in nonsectarian courses 
 93.24  offered by that post-secondary institution.  If an institution 
 93.25  accepts a secondary pupil for enrollment under this section, the 
 93.26  institution shall send written notice to the pupil, the pupil's 
 93.27  school or school district, and the commissioner of children, 
 93.28  families, and learning within ten days of acceptance.  The 
 93.29  notice shall must indicate the course and hours of enrollment of 
 93.30  that pupil.  If the pupil enrolls in a course for post-secondary 
 93.31  credit, the institution shall must notify the pupil about 
 93.32  payment in the customary manner used by the institution. 
 93.33     Sec. 77.  Minnesota Statutes 1997 Supplement, section 
 93.34  123.3514, subdivision 4a, is amended to read:  
 93.35     Subd. 4a.  [COUNSELING.] To the extent possible, the school 
 93.36  or school district shall must provide counseling services to 
 94.1   pupils and their parents or guardian before the pupils enroll in 
 94.2   courses under this section to ensure that the pupils and their 
 94.3   parents or guardian are fully aware of the risks and possible 
 94.4   consequences of enrolling in post-secondary courses.  The school 
 94.5   or school district shall must provide information on the program 
 94.6   including who may enroll, what institutions and courses are 
 94.7   eligible for participation, the decision-making process for 
 94.8   granting academic credits, financial arrangements for tuition, 
 94.9   books and materials, eligibility criteria for transportation 
 94.10  aid, available support services, the need to arrange an 
 94.11  appropriate schedule, consequences of failing or not completing 
 94.12  a course in which the pupil enrolls, the effect of enrolling in 
 94.13  this program on the pupil's ability to complete the required 
 94.14  high school graduation requirements, and the academic and social 
 94.15  responsibilities that must be assumed by the pupils and their 
 94.16  parents or guardian.  The person providing counseling shall 
 94.17  encourage pupils and their parents or guardian to also use 
 94.18  available counseling services at the post-secondary institutions 
 94.19  before the quarter or semester of enrollment to ensure that 
 94.20  anticipated plans are appropriate.  
 94.21     Prior to enrolling in a course, the pupil and the pupil's 
 94.22  parents or guardian must sign a form that must be provided by 
 94.23  the school or school district and may be obtained from a 
 94.24  post-secondary institution stating that they have received the 
 94.25  information specified in this subdivision and that they 
 94.26  understand the responsibilities that must be assumed in 
 94.27  enrolling in this program.  The department of children, 
 94.28  families, and learning shall must, upon request, provide 
 94.29  technical assistance to a school or school district in 
 94.30  developing appropriate forms and counseling guidelines. 
 94.31     Sec. 78.  Minnesota Statutes 1996, section 123.3514, 
 94.32  subdivision 4b, is amended to read: 
 94.33     Subd. 4b.  [DISSEMINATION OF INFORMATION; NOTIFICATION OF 
 94.34  INTENT TO ENROLL.] By March 1 of each year, a school district 
 94.35  shall must provide general information about the program to all 
 94.36  pupils in grades 10 and 11.  To assist the district in planning, 
 95.1   a pupil shall inform the district by March 30 of each year of 
 95.2   the pupil's intent to enroll in post-secondary courses during 
 95.3   the following school year.  A pupil is not bound by notifying or 
 95.4   not notifying the district by March 30.  
 95.5      Sec. 79.  Minnesota Statutes 1996, section 123.3514, 
 95.6   subdivision 4d, is amended to read: 
 95.7      Subd. 4d.  [ENROLLMENT PRIORITY.] A post-secondary 
 95.8   institution shall give priority to its post-secondary students 
 95.9   when enrolling 11th and 12th grade pupils in its courses.  A 
 95.10  post-secondary institution may provide information about its 
 95.11  programs to a secondary school or to a pupil or parent, but it 
 95.12  may not advertise or otherwise recruit or solicit the 
 95.13  participation on financial grounds, secondary pupils to enroll 
 95.14  in its programs.  An institution shall must not enroll secondary 
 95.15  pupils, for post-secondary enrollment options purposes, in 
 95.16  remedial, developmental, or other courses that are not college 
 95.17  level.  Once a pupil has been enrolled in a post-secondary 
 95.18  course under this section, the pupil shall not be displaced by 
 95.19  another student.  
 95.20     Sec. 80.  Minnesota Statutes 1997 Supplement, section 
 95.21  123.3514, subdivision 4e, is amended to read: 
 95.22     Subd. 4e.  [COURSES ACCORDING TO AGREEMENTS.] An eligible 
 95.23  pupil, according to subdivision 4, may enroll in a nonsectarian 
 95.24  course taught by a secondary teacher or a post-secondary faculty 
 95.25  member and offered at a secondary school, or another location, 
 95.26  according to an agreement between a public school board and the 
 95.27  governing body of an eligible public post-secondary system or an 
 95.28  eligible private post-secondary institution, as defined in 
 95.29  subdivision 3.  All provisions of this section shall apply to a 
 95.30  pupil, public school board, school district, and the governing 
 95.31  body of a post-secondary institution, except as otherwise 
 95.32  provided.  
 95.33     Sec. 81.  Minnesota Statutes 1996, section 123.3514, 
 95.34  subdivision 5, is amended to read: 
 95.35     Subd. 5.  [CREDITS.] A pupil may enroll in a course under 
 95.36  this section for either secondary credit or post-secondary 
 96.1   credit.  At the time a pupil enrolls in a course, the pupil 
 96.2   shall designate whether the course is for secondary or 
 96.3   post-secondary credit.  A pupil taking several courses may 
 96.4   designate some for secondary credit and some for post-secondary 
 96.5   credit.  A pupil must not audit a course under this section. 
 96.6      A school district shall grant academic credit to a pupil 
 96.7   enrolled in a course for secondary credit if the pupil 
 96.8   successfully completes the course.  Seven quarter or four 
 96.9   semester college credits equal at least one full year of high 
 96.10  school credit.  Fewer college credits may be prorated.  A school 
 96.11  district shall must also grant academic credit to a pupil 
 96.12  enrolled in a course for post-secondary credit if secondary 
 96.13  credit is requested by a pupil.  If no comparable course is 
 96.14  offered by the district, the district shall must, as soon as 
 96.15  possible, notify the commissioner, which who shall determine the 
 96.16  number of credits that shall be granted to a pupil who 
 96.17  successfully completes a course.  If a comparable course is 
 96.18  offered by the district, the school board shall grant a 
 96.19  comparable number of credits to the pupil.  If there is a 
 96.20  dispute between the district and the pupil regarding the number 
 96.21  of credits granted for a particular course, the pupil may appeal 
 96.22  the school board's decision to the commissioner.  The 
 96.23  commissioner's decision regarding the number of credits shall be 
 96.24  final.  
 96.25     The secondary credits granted to a pupil shall must be 
 96.26  counted toward the graduation requirements and subject area 
 96.27  requirements of the school district.  Evidence of successful 
 96.28  completion of each course and secondary credits granted shall 
 96.29  must be included in the pupil's secondary school record.  A 
 96.30  pupil must shall provide the school with a copy of the pupil's 
 96.31  grade in each course taken for secondary credit under this 
 96.32  section.  Upon the request of a pupil, the pupil's secondary 
 96.33  school record shall must also include evidence of successful 
 96.34  completion and credits granted for a course taken for 
 96.35  post-secondary credit.  In either case, the record shall must 
 96.36  indicate that the credits were earned at a post-secondary 
 97.1   institution. 
 97.2      If a pupil enrolls in a post-secondary institution after 
 97.3   leaving secondary school, the post-secondary institution shall 
 97.4   must award post-secondary credit for any course successfully 
 97.5   completed for secondary credit at that institution.  Other 
 97.6   post-secondary institutions may award, after a pupil leaves 
 97.7   secondary school, post-secondary credit for any courses 
 97.8   successfully completed under this section.  An institution may 
 97.9   not charge a pupil for the award of credit. 
 97.10     Sec. 82.  Minnesota Statutes 1996, section 123.3514, 
 97.11  subdivision 6, is amended to read:  
 97.12     Subd. 6.  [FINANCIAL ARRANGEMENTS.] For a pupil enrolled in 
 97.13  a course under this section, the department of children, 
 97.14  families, and learning shall must make payments according to 
 97.15  this subdivision for courses that were taken for secondary 
 97.16  credit.  
 97.17     The department shall must not make payments to a school 
 97.18  district or post-secondary institution for a course taken for 
 97.19  post-secondary credit only.  The department shall must not make 
 97.20  payments to a post-secondary institution for a course from which 
 97.21  a student officially withdraws during the first 14 days of the 
 97.22  quarter or semester or who has been absent from the 
 97.23  post-secondary institution for the first 15 consecutive school 
 97.24  days of the quarter or semester and is not receiving instruction 
 97.25  in the home or hospital. 
 97.26     A post-secondary institution shall receive the following: 
 97.27     (1) for an institution granting quarter credit, the 
 97.28  reimbursement per credit hour shall be an amount equal to 88 
 97.29  percent of the product of the formula allowance, multiplied by 
 97.30  1.3, and divided by 45; or 
 97.31     (2) for an institution granting semester credit, the 
 97.32  reimbursement per credit hour shall be an amount equal to 88 
 97.33  percent of the product of the general revenue formula allowance, 
 97.34  multiplied by 1.3, and divided by 30. 
 97.35     The department of children, families, and learning shall 
 97.36  must pay to each post-secondary institution 100 percent of the 
 98.1   amount in clause (1) or (2) within 30 days of receiving initial 
 98.2   enrollment information each quarter or semester.  If changes in 
 98.3   enrollment occur during a quarter or semester, the change shall 
 98.4   be reported by the post-secondary institution at the time the 
 98.5   enrollment information for the succeeding quarter or semester is 
 98.6   submitted.  At any time the department of children, families, 
 98.7   and learning notifies a post-secondary institution that an 
 98.8   overpayment has been made, the institution shall promptly remit 
 98.9   the amount due.  
 98.10     Sec. 83.  Minnesota Statutes 1996, section 123.3514, 
 98.11  subdivision 6b, is amended to read: 
 98.12     Subd. 6b.  [FINANCIAL ARRANGEMENTS, PUPILS AGE 21 OR OVER.] 
 98.13  For a pupil enrolled in a course according to this section, the 
 98.14  department of children, families, and learning shall must make 
 98.15  payments according to this subdivision for courses taken to 
 98.16  fulfill high school graduation requirements by pupils eligible 
 98.17  for adult high school graduation aid.  
 98.18     The department must not make payments to a school district 
 98.19  or post-secondary institution for a course taken for 
 98.20  post-secondary credit only.  The department shall must not make 
 98.21  payments to a post-secondary institution for a course from which 
 98.22  a student officially withdraws during the first 14 days of the 
 98.23  quarter or semester or who has been absent from the 
 98.24  post-secondary institution for the first 15 consecutive school 
 98.25  days of the quarter or semester and is not receiving instruction 
 98.26  in the home or hospital. 
 98.27     A post-secondary institution shall receive the following: 
 98.28     (1) for an institution granting quarter credit, the 
 98.29  reimbursement per credit hour shall be an amount equal to 88 
 98.30  percent of the product of the formula allowance, multiplied by 
 98.31  1.3, and divided by 45; or 
 98.32     (2) for an institution granting semester credit, the 
 98.33  reimbursement per credit hour shall be an amount equal to 88 
 98.34  percent of the product of the general revenue formula allowance 
 98.35  multiplied by 1.3, and divided by 30. 
 98.36     The department of children, families, and learning shall 
 99.1   must pay to each post-secondary institution 100 percent of the 
 99.2   amount in clause (1) or (2) within 30 days of receiving initial 
 99.3   enrollment information each quarter or semester.  If changes in 
 99.4   enrollment occur during a quarter or semester, the change shall 
 99.5   be reported by the post-secondary institution at the time the 
 99.6   enrollment information for the succeeding quarter or semester is 
 99.7   submitted.  At any time the department of children, families, 
 99.8   and learning notifies a post-secondary institution that an 
 99.9   overpayment has been made, the institution shall promptly remit 
 99.10  the amount due. 
 99.11     A school district shall receive: 
 99.12     (1) for a pupil who is not enrolled in classes at a 
 99.13  secondary program, 12 percent of the general education formula 
 99.14  allowance times .65, times 1.3; or 
 99.15     (2) for a pupil who attends classes at a secondary program 
 99.16  part time, the general education formula allowance times .65, 
 99.17  times 1.3, times the ratio of the total number of hours the 
 99.18  pupil is in membership for courses taken by the pupil for credit 
 99.19  to 1020 hours.  
 99.20     Sec. 84.  Minnesota Statutes 1997 Supplement, section 
 99.21  123.3514, subdivision 6c, is amended to read: 
 99.22     Subd. 6c.  [FINANCIAL ARRANGEMENTS FOR COURSES PROVIDED 
 99.23  ACCORDING TO AGREEMENTS.] (a) The agreement between a public 
 99.24  school board and the governing body of a public post-secondary 
 99.25  system or private post-secondary institution shall set forth the 
 99.26  payment amounts and arrangements, if any, from the public school 
 99.27  board to the post-secondary institution.  No payments shall be 
 99.28  made by the department of children, families, and learning 
 99.29  according to subdivision 6 or 6b.  For the purpose of computing 
 99.30  state aids for a school district, a pupil enrolled according to 
 99.31  subdivision 4e shall be counted in the average daily membership 
 99.32  of the school district as though the pupil were enrolled in a 
 99.33  secondary course that is not offered in connection with an 
 99.34  agreement.  Nothing in this subdivision shall be construed to 
 99.35  prohibit a public post-secondary system or private 
 99.36  post-secondary institution from receiving additional state 
100.1   funding that may be available under any other law.  
100.2      (b) If a course is provided under subdivision 4e, offered 
100.3   at a secondary school, and taught by a secondary teacher, the 
100.4   post-secondary system or institution must not require a payment 
100.5   from the school board that exceeds the cost to the 
100.6   post-secondary institution that is directly attributable to 
100.7   providing that course.  
100.8      Sec. 85.  Minnesota Statutes 1996, section 123.3514, 
100.9   subdivision 7a, is amended to read: 
100.10     Subd. 7a.  [TEXTBOOKS; MATERIALS.] All textbooks and 
100.11  equipment provided to a pupil, and paid for under subdivision 6, 
100.12  are the property of the pupil's school district of residence.  
100.13  Each pupil is required to return all textbooks and equipment to 
100.14  the school district after the course has ended. 
100.15     Sec. 86.  Minnesota Statutes 1996, section 123.3514, 
100.16  subdivision 7b, is amended to read:  
100.17     Subd. 7b.  [SUPPORT SERVICES.] The post-secondary 
100.18  institution shall must inform the pupil of the support services 
100.19  available at that institution.  If the student has an individual 
100.20  education plan that provides general education support and 
100.21  accommodations, the post-secondary institution shall must 
100.22  provide the support services as described in the student's IEP 
100.23  and the post-secondary institution and the district shall 
100.24  negotiate an agreement on the rate to be charged for the 
100.25  services.  Nothing in this section shall prevent the student 
100.26  from enrolling while the agreement is being developed.  If the 
100.27  parties cannot agree on the services, on application of either 
100.28  party, the commissioner shall resolve the dispute in the same 
100.29  manner the commissioner fixes tuition rates under section 
100.30  120.17, subdivision 4.  The commissioner's decision is binding 
100.31  on both parties.  
100.32     Sec. 87.  Minnesota Statutes 1997 Supplement, section 
100.33  123.3514, subdivision 8, is amended to read: 
100.34     Subd. 8.  [TRANSPORTATION.] A parent or guardian of a pupil 
100.35  enrolled in a course for secondary credit may apply to the 
100.36  pupil's district of residence for reimbursement for transporting 
101.1   the pupil between the secondary school in which the pupil is 
101.2   enrolled or the pupil's home and the post-secondary institution 
101.3   that the pupil attends.  The state shall provide state aid to a 
101.4   district in an amount sufficient to reimburse the parent or 
101.5   guardian for the necessary transportation costs when the 
101.6   family's or guardian's income is at or below the poverty level, 
101.7   as determined by the federal government.  The reimbursement 
101.8   shall be the pupil's actual cost of transportation or 15 cents 
101.9   per mile traveled, whichever is less.  Reimbursement may not be 
101.10  paid for more than 250 miles per week.  However, if the nearest 
101.11  post-secondary institution is more than 25 miles from the 
101.12  pupil's resident secondary school, the weekly reimbursement may 
101.13  not exceed the reimbursement rate per mile times the actual 
101.14  distance between the secondary school or the pupil's home and 
101.15  the nearest post-secondary institution times ten.  The state 
101.16  shall must pay aid to the district according to this subdivision.
101.17     Sec. 88.  Minnesota Statutes 1996, section 124.227, is 
101.18  amended to read: 
101.19     124.227 [INTERDISTRICT DESEGREGATION OR INTEGRATION 
101.20  TRANSPORTATION GRANTS.] 
101.21     (a) A district that provides transportation of pupils to 
101.22  and from an interdistrict program for desegregation or 
101.23  integration purposes may apply to the commissioner of children, 
101.24  families, and learning for a grant to cover the additional costs 
101.25  of transportation.  
101.26     (b) A district in the metropolitan area may apply to the 
101.27  commissioner for a grant to cover the costs of transporting 
101.28  pupils who are enrolled under section 120.062 if the enrollment 
101.29  of the student in the nonresident district contributes to 
101.30  desegregation or integration purposes.  The commissioner must 
101.31  shall develop the form and manner of applications, the criteria 
101.32  to be used to determine when transportation is for desegregation 
101.33  or integration purposes, and the accounting procedure to be used 
101.34  to determine excess costs.  In determining the grant amount, the 
101.35  commissioner must shall consider other revenue received by the 
101.36  district for transportation for desegregation or integration 
102.1   purposes. 
102.2      (c) Grants may be awarded under paragraph (b) only if 
102.3   grants awarded under paragraph (a) have been fully funded. 
102.4      Sec. 89.  Minnesota Statutes 1996, section 124.248, 
102.5   subdivision 1, is amended to read: 
102.6      Subdivision 1.  [GENERAL EDUCATION REVENUE.] General 
102.7   education revenue shall must be paid to a charter school as 
102.8   though it were a school district.  The general education revenue 
102.9   for each pupil unit is the state average general education 
102.10  revenue per pupil unit minus $170, calculated without 
102.11  compensatory revenue, transportation sparsity revenue, and the 
102.12  transportation portion of the transition revenue adjustment, 
102.13  plus compensatory revenue as though the school were a school 
102.14  district. 
102.15     Sec. 90.  Minnesota Statutes 1996, section 124.248, 
102.16  subdivision 1a, is amended to read: 
102.17     Subd. 1a.  [TRANSPORTATION REVENUE.] Transportation revenue 
102.18  shall must be paid to a charter school that provides 
102.19  transportation services according to section 120.064, 
102.20  subdivision 15, according to this subdivision.  Transportation 
102.21  aid shall equal transportation revenue.  
102.22     (a) In addition to the revenue under subdivision 1, a 
102.23  charter school providing transportation services shall must 
102.24  receive general education aid for each pupil unit equal to the 
102.25  sum of $170, plus the transportation sparsity allowance for the 
102.26  school district in which the charter school is located, plus the 
102.27  transportation transition allowance for the school district in 
102.28  which the charter school is located.  
102.29     (b) For the first two years that a charter school is 
102.30  providing transportation services, the special programs 
102.31  transportation revenue equals the charter school's actual cost 
102.32  in the current school year for transportation services for 
102.33  children with disabilities under section 124.223, subdivisions 
102.34  4, 5, 7, and 8.  For the third year of transportation services 
102.35  and later fiscal years, the special programs transportation 
102.36  revenue shall be computed according to section 124.225, 
103.1   subdivision 14.  
103.2      Sec. 91.  Minnesota Statutes 1997 Supplement, section 
103.3   124.248, subdivision 3, is amended to read: 
103.4      Subd. 3.  [SPECIAL EDUCATION AID.] Except as provided in 
103.5   subdivision 1a, paragraph (b), special education aid shall must 
103.6   be paid to a charter school according to section 124.3201, as 
103.7   though it were a school district.  The charter school may charge 
103.8   tuition to the district of residence as provided in section 
103.9   120.17, subdivision 4.  The charter school shall allocate its 
103.10  special education levy equalization revenue to the resident 
103.11  districts of the pupils attending the charter school.  The 
103.12  districts of residence shall levy as though they were 
103.13  participating in a cooperative, as provided in section 124.321, 
103.14  subdivision 3. 
103.15     Sec. 92.  Minnesota Statutes 1997 Supplement, section 
103.16  124.248, subdivision 4, is amended to read: 
103.17     Subd. 4.  [OTHER AID, GRANTS, REVENUE.] (a) A charter 
103.18  school is eligible to receive other aids, grants, and revenue 
103.19  according to chapters 120 to 129, as though it were a school 
103.20  district except that, notwithstanding section 124.195, 
103.21  subdivision 3, the payments shall must be of an equal amount on 
103.22  each of the 23 payment dates unless a charter school is in its 
103.23  first year of operation in which case it shall receive on its 
103.24  first payment date ten percent of its cumulative amount 
103.25  guaranteed for the year and 22 payments of an equal amount 
103.26  thereafter the sum of which shall be 90 percent of the 
103.27  cumulative amount guaranteed.  However, it may not receive aid, 
103.28  a grant, or revenue if a levy is required to obtain the money, 
103.29  except as otherwise provided in this section.  Federal aid 
103.30  received by the state must be paid to the school, if it 
103.31  qualifies for the aid as though it were a school district. 
103.32     (b) A charter school may receive money from any source for 
103.33  capital facilities needs.  In the year-end report to the state 
103.34  board of education, the charter school shall report the total 
103.35  amount of funds received from grants and other outside sources. 
103.36     Sec. 93.  Minnesota Statutes 1996, section 124.273, 
104.1   subdivision 3, is amended to read: 
104.2      Subd. 3.  [PARTICIPATION OF NONPUBLIC SCHOOL PUPILS.] In 
104.3   counting the number of pupils of limited English proficiency for 
104.4   purposes of this section, districts may include pupils of 
104.5   limited English proficiency who attend nonpublic schools in the 
104.6   district.  A district which counts those pupils and receives aid 
104.7   pursuant to this section shall must offer those pupils the same 
104.8   programs on the same terms that it offers to pupils of limited 
104.9   English proficiency who attend the public school.  A program 
104.10  provided for a nonpublic school pupil pursuant to this 
104.11  subdivision shall must be provided at a public school or a 
104.12  neutral site as defined in section 123.932, subdivision 9.  
104.13  Nonpublic school pupils served by a district's educational 
104.14  program for pupils of limited English proficiency shall must be 
104.15  counted for average daily membership pursuant to sections 
104.16  124A.02, subdivisions 20 to 22, and 124A.034, subdivisions 1 to 
104.17  2.  
104.18     Sec. 94.  Minnesota Statutes 1996, section 124.273, 
104.19  subdivision 4, is amended to read: 
104.20     Subd. 4.  [APPLICATION DATES.] To obtain aid for limited 
104.21  English proficiency programs, a district shall must submit 
104.22  information required by the department to implement this section.
104.23     Sec. 95.  Minnesota Statutes 1996, section 124.273, 
104.24  subdivision 6, is amended to read: 
104.25     Subd. 6.  [RECORDS; AUDIT.] A district which applies for 
104.26  aid pursuant to this section shall must maintain records which 
104.27  support the information contained in all of its applications.  
104.28  The commissioner of children, families, and learning may audit 
104.29  these records upon request.  A district which receives aid 
104.30  pursuant to this section shall must keep such additional records 
104.31  in the manner prescribed by the commissioner to ensure that an 
104.32  educational program for pupils of limited English proficiency is 
104.33  implemented and operated in accordance with sections 126.261 to 
104.34  126.269.  
104.35     Sec. 96.  Minnesota Statutes 1996, section 124.273, 
104.36  subdivision 7, is amended to read: 
105.1      Subd. 7.  [MONEY FROM OTHER SOURCES.] A school district 
105.2   providing a program for pupils of limited English proficiency 
105.3   shall must be eligible to receive moneys for these programs from 
105.4   other government agencies and from private sources when these 
105.5   moneys are available. 
105.6      Sec. 97.  Minnesota Statutes 1996, section 124.311, 
105.7   subdivision 1, is amended to read: 
105.8      Subdivision 1.  [INSTRUCTION.] A school district may 
105.9   receive assurance of mastery revenue to provide direct 
105.10  instructional services to eligible pupils.  
105.11     Sec. 98.  Minnesota Statutes 1996, section 124.32, is 
105.12  amended to read: 
105.13     124.32 [CHILDREN WITH A DISABILITY.] 
105.14     Subd. 2b.  [TRAVEL AID.] The state shall must pay each 
105.15  district one-half of the sum actually expended by a district for 
105.16  necessary travel of essential personnel providing home-based 
105.17  services to children with a disability under age five and their 
105.18  families.  
105.19     Subd. 4.  [AID PAYMENT.] The aids provided for children 
105.20  with a disability shall must be paid to the district providing 
105.21  the special instruction and services.  General education 
105.22  aid shall must be paid to the district of the pupil's 
105.23  residence.  The total amount of aid paid may not exceed the 
105.24  amount expended for children with a disability in the year for 
105.25  which the aid is paid.  
105.26     Subd. 6.  [FULL STATE PAYMENT.] The state shall must pay 
105.27  each district the actual cost incurred in providing instruction 
105.28  and services for a child with a disability whose district of 
105.29  residence has been determined by section 120.17, subdivision 8a, 
105.30  and who is temporarily placed in a state institution or a 
105.31  licensed residential facility for care and treatment.  This 
105.32  section does not apply to a child placed in a foster home or a 
105.33  foster group home. 
105.34     Upon following the procedure specified by the commissioner 
105.35  of children, families, and learning, the district may bill the 
105.36  state the actual cost incurred in providing the services 
106.1   including transportation costs and a proportionate amount of 
106.2   capital expenditures and debt service, minus the amount of the 
106.3   basic revenue, as defined in section 124A.22, subdivision 2, of 
106.4   the district for the child and the special education aid, 
106.5   transportation aid, and any other aid earned on behalf of the 
106.6   child.  The limit set forth in subdivision 4 shall apply applies 
106.7   to aid paid pursuant to this subdivision.  
106.8      To the extent possible, the commissioner shall obtain 
106.9   reimbursement from another state for the cost of serving any 
106.10  child whose parent or guardian resides in that state.  The 
106.11  commissioner may contract with the appropriate authorities of 
106.12  other states to effect reimbursement.  All money received from 
106.13  other states shall must be paid to the state treasury and placed 
106.14  in the general fund.  
106.15     Subd. 7.  [PROGRAM AND AID APPROVAL.] Before June 1 of each 
106.16  year, each district providing special instruction and services 
106.17  to children with a disability shall must submit to the 
106.18  commissioner an application for approval of these programs and 
106.19  their budgets for the next fiscal year.  The application shall 
106.20  must include an enumeration of the costs proposed as eligible 
106.21  for state aid pursuant to this section and of the estimated 
106.22  number and grade level of children with a disability in the 
106.23  district who will receive special instruction and services 
106.24  during the regular school year and in summer school programs 
106.25  during the next fiscal year.  The application shall must also 
106.26  include any other information deemed necessary by the 
106.27  commissioner for the calculation of state aid and for the 
106.28  evaluation of the necessity of the program, the necessity of the 
106.29  personnel to be employed in the program, for determining the 
106.30  amount which the program will receive from grants from federal 
106.31  funds, or special grants from other state sources, and the 
106.32  program's compliance with the rules and standards of the state 
106.33  board.  The commissioner shall review each application to 
106.34  determine whether the program and the personnel to be employed 
106.35  in the program are actually necessary and essential to meet the 
106.36  district's obligation to provide special instruction and 
107.1   services to children with a disability pursuant to sections 
107.2   120.17 and 120.1701.  The commissioner shall not approve aid 
107.3   pursuant to this section for any program or for the salary of 
107.4   any personnel determined to be unnecessary or unessential on the 
107.5   basis of this review.  The commissioner may withhold all or any 
107.6   portion of the aid for programs which receive grants from 
107.7   federal funds, or special grants from other state sources.  By 
107.8   August 31 the commissioner shall approve, disapprove, or modify 
107.9   each application, and notify each applying district of the 
107.10  action and of the estimated amount of aid for the programs.  The 
107.11  commissioner shall provide procedures for districts to submit 
107.12  additional applications for program and budget approval during 
107.13  the fiscal year, for programs needed to meet any substantial 
107.14  changes in the needs of children with a disability in the 
107.15  district.  Notwithstanding the provisions of section 124.15, the 
107.16  commissioner may modify or withdraw the program or aid approval 
107.17  and withhold aid pursuant to this section without proceeding 
107.18  according to section 124.15 at any time the commissioner 
107.19  determines that the program does not comply with rules of the 
107.20  state board or that any facts concerning the program or its 
107.21  budget differ from the facts in the district's approved 
107.22  application.  
107.23     Subd. 8.  [REGULAR CLASSROOM PROGRAMS.] When planning 
107.24  programs for the education of children with a disability in the 
107.25  regular classroom, school districts are encouraged to consider 
107.26  the size of the regular class and to provide the support 
107.27  services necessary to insure ensure successful mainstreaming.  
107.28     Subd. 10.  [SUMMER SCHOOL.] By March 15 of each year, 
107.29  districts shall must submit separate applications for program 
107.30  and budget approval for summer school programs.  The review of 
107.31  these applications shall must be reviewed as provided in 
107.32  subdivision 7.  By May 1 of each year, the commissioner shall 
107.33  approve, disapprove, or modify the applications and notify the 
107.34  districts of the action and of the estimated amount of aid for 
107.35  the summer school programs.  
107.36     Subd. 12.  [ALLOCATION FROM COOPERATIVE CENTERS, SERVICE 
108.1   COOPERATIVES, EDUCATION DISTRICTS, AND INTERMEDIATE DISTRICTS.] 
108.2   For purposes of this section, a special education cooperative, 
108.3   service cooperative, education district, or an intermediate 
108.4   district shall must allocate its approved expenditures for 
108.5   special education programs among participating school districts. 
108.6   Special education aid for services provided by a cooperative, 
108.7   service cooperative, education district, or intermediate 
108.8   district shall must be paid to the participating school 
108.9   districts. 
108.10     Sec. 99.  Minnesota Statutes 1996, section 124.3201, 
108.11  subdivision 5, is amended to read: 
108.12     Subd. 5.  [SCHOOL DISTRICT SPECIAL EDUCATION REVENUE.] (a) 
108.13  A school district's special education revenue for fiscal year 
108.14  1996 and later equals the state total special education revenue, 
108.15  minus the amount determined under paragraph (b), times the ratio 
108.16  of the district's adjusted special education base revenue to the 
108.17  state total adjusted special education base revenue.  If the 
108.18  state board of education modifies its rules for special 
108.19  education in a manner that increases a school district's special 
108.20  education obligations or service requirements, the commissioner 
108.21  of children, families, and learning shall annually increase each 
108.22  district's special education revenue by the amount necessary to 
108.23  compensate for the increased service requirements.  The 
108.24  additional revenue equals the cost in the current year 
108.25  attributable to rule changes not reflected in the computation of 
108.26  special education base revenue, multiplied by the appropriate 
108.27  percentages from subdivision 2. 
108.28     (b) Notwithstanding paragraph (a), if the special education 
108.29  base revenue for a district equals zero, the special education 
108.30  revenue equals the amount computed according to subdivision 2 
108.31  using current year data. 
108.32     Sec. 100.  Minnesota Statutes 1996, section 124.3201, 
108.33  subdivision 6, is amended to read:  
108.34     Subd. 6.  [SPECIAL EDUCATION AID.] A school district's 
108.35  special education aid for fiscal year 1996 and later equals the 
108.36  district's special education revenue times the aid percentage 
109.1   factor for that year. 
109.2      Sec. 101.  Minnesota Statutes 1996, section 124.3201, 
109.3   subdivision 7, is amended to read:  
109.4      Subd. 7.  [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 
109.5   INTERMEDIATES.] For the purposes of this section and section 
109.6   124.321, a special education cooperative or an intermediate 
109.7   district shall must allocate its approved expenditures for 
109.8   special education programs among participating school districts. 
109.9      Sec. 102.  Minnesota Statutes 1997 Supplement, section 
109.10  124.321, subdivision 1, is amended to read: 
109.11     Subdivision 1.  [LEVY EQUALIZATION REVENUE.] (a) For fiscal 
109.12  year 1999, special education levy equalization revenue for a 
109.13  school district, excluding an intermediate school district, 
109.14  equals the sum of the following amounts: 
109.15     (1) the levy percentage factor for that year times the 
109.16  district's special education revenue under section 124.3201; 
109.17  plus 
109.18     (2) the levy percentage factor for that year times the 
109.19  district's special education excess cost revenue under section 
109.20  124.323; plus 
109.21     (3) the levy percentage factor for that year times the 
109.22  district's school-to-work program for children with a disability 
109.23  revenue under section 124.574.  
109.24     Sec. 103.  Minnesota Statutes 1997 Supplement, section 
109.25  124.321, subdivision 2, is amended to read: 
109.26     Subd. 2.  [REVENUE ALLOCATION FROM STATE ACADEMIES.] (a) 
109.27  For purposes of this section, the Minnesota state academy for 
109.28  the deaf or the Minnesota state academy for the blind each year 
109.29  shall must allocate an amount equal to the levy percentage 
109.30  factor for that year times their special education revenue under 
109.31  section 124.3201 for the year to each school district that 
109.32  assigns a child with an individual education plan requiring an 
109.33  instructional aide to attend either academy.  The school 
109.34  districts that assign a child who requires an instructional aide 
109.35  may make a levy in the amount of the costs allocated to them by 
109.36  either academy. 
110.1      (b) When the Minnesota state academy for the deaf or the 
110.2   Minnesota state academy for the blind allocates revenue among 
110.3   school districts that assign a child who requires an 
110.4   instructional aide, for purposes of the districts making a levy 
110.5   under this subdivision, the academy shall must provide 
110.6   information to the department of children, families, and 
110.7   learning on the amount of revenue it allocated to the school 
110.8   districts that assign a child who requires an instructional aide.
110.9      Sec. 104.  Minnesota Statutes 1996, section 124.322, 
110.10  subdivision 1, is amended to read: 
110.11     Subdivision 1.  [ELIGIBILITY.] A district is eligible for 
110.12  an alternative delivery base revenue adjustment if the 
110.13  commissioner of children, families, and learning has approved 
110.14  the application of the district according to section 120.173.  
110.15     Sec. 105.  Minnesota Statutes 1997 Supplement, section 
110.16  124.322, subdivision 1a, is amended to read: 
110.17     Subd. 1a.  [BASE REVENUE ADJUSTMENT.] For the third fiscal 
110.18  year after approval of a district's application, and thereafter, 
110.19  the special education base revenue under section 124.3201, 
110.20  subdivision 1, shall must be computed based on activities 
110.21  defined as reimbursable under state board rules for special 
110.22  education and nonspecial education students, and additional 
110.23  activities as detailed and approved by the commissioner of 
110.24  children, families, and learning. 
110.25     Sec. 106.  Minnesota Statutes 1997 Supplement, section 
110.26  124.323, subdivision 1, is amended to read: 
110.27     Subdivision 1.  [DEFINITIONS.] In For the purposes of this 
110.28  section, the definitions in this subdivision apply. 
110.29     (a) "Unreimbursed special education cost" means the sum of 
110.30  the following: 
110.31     (1) expenditures for teachers' salaries, contracted 
110.32  services, supplies, equipment, and transportation services 
110.33  eligible for revenue under section 124.3201; plus 
110.34     (2) expenditures for tuition bills received under section 
110.35  120.17 for services eligible for revenue under sections 
110.36  124.3201, subdivision 2, and 124.3202, subdivision 1; minus 
111.1      (3) revenue for teachers' salaries, contracted services, 
111.2   supplies, and equipment under sections 124.3201 and 124.3202; 
111.3   minus 
111.4      (4) tuition receipts under section 120.17 for services 
111.5   eligible for revenue under sections 124.3201, subdivision 2, and 
111.6   124.3202, subdivision 1. 
111.7      (b) "General revenue," for fiscal year 1996, means for 
111.8   fiscal year 1996, the sum of the general education revenue 
111.9   according to section 124A.22, subdivision 1, as adjusted 
111.10  according to section 124A.036, subdivision 5, plus the total 
111.11  referendum revenue according to section 124A.03, subdivision 
111.12  1e.  For fiscal years 1997 and later, "general revenue" means 
111.13  the sum of the general education revenue according to section 
111.14  124A.22, subdivision 1, as adjusted according to section 
111.15  124A.036, subdivision 5, plus the total referendum revenue minus 
111.16  transportation sparsity revenue minus total operating capital 
111.17  revenue. 
111.18     Sec. 107.  Minnesota Statutes 1996, section 124.48, as 
111.19  amended by Laws 1997, chapter 192, section 20, is amended to 
111.20  read: 
111.21     124.48 [INDIAN SCHOLARSHIPS.] 
111.22     Subdivision 1.  [AWARDS.] The state board, with the advice 
111.23  and counsel of the Minnesota Indian scholarship committee, may 
111.24  award scholarships to any Minnesota resident student who is of 
111.25  one-fourth or more Indian ancestry, who has applied for other 
111.26  existing state and federal scholarship and grant programs, and 
111.27  who, in the opinion of the board, has the capabilities to 
111.28  benefit from further education.  Scholarships shall must be for 
111.29  advanced or specialized education in accredited or approved 
111.30  colleges or in business, technical or vocational schools.  
111.31  Scholarships shall be used to defray the total cost of education 
111.32  including tuition, incidental fees, books, supplies, 
111.33  transportation, other related school costs and the cost of board 
111.34  and room and shall be paid directly to the college or school 
111.35  concerned.  The total cost of education includes all tuition and 
111.36  fees for each student enrolling in a public institution and the 
112.1   portion of tuition and fees for each student enrolling in a 
112.2   private institution that does not exceed the tuition and fees at 
112.3   a comparable public institution.  Each student shall be awarded 
112.4   a scholarship based on the total cost of the student's education 
112.5   and a standardized need analysis.  The amount and type of each 
112.6   scholarship shall be determined through the advice and counsel 
112.7   of the Minnesota Indian scholarship committee.  
112.8      When an Indian student satisfactorily completes the work 
112.9   required by a certain college or school in a school year the 
112.10  student is eligible for additional scholarships, if additional 
112.11  training is necessary to reach the student's educational and 
112.12  vocational objective.  Scholarships may not be given to any 
112.13  Indian student for more than five years of study without special 
112.14  approval of the Minnesota Indian scholarship committee.  
112.15     Subd. 3.  [INDIAN SCHOLARSHIP COMMITTEE.] The Minnesota 
112.16  Indian scholarship committee is established.  Members shall be 
112.17  appointed by The state board must appoint members with the 
112.18  assistance of the Indian affairs council as provided in section 
112.19  3.922, subdivision 6.  Members shall be reimbursed for expenses 
112.20  as provided in section 15.059, subdivision 6.  The state board 
112.21  shall determine the membership terms and duration of the 
112.22  committee, which expires no later than June 30, 2001.  The 
112.23  committee shall provide advice to the state board in awarding 
112.24  scholarships to eligible American Indian students and in 
112.25  administering the state board's duties regarding awarding of 
112.26  American Indian post-secondary preparation grants to school 
112.27  districts.  
112.28     Sec. 108.  Minnesota Statutes 1997 Supplement, section 
112.29  124.481, is amended to read: 
112.30     124.481 [INDIAN POST-SECONDARY PREPARATION GRANTS.] 
112.31     The state board of education, with the advice of the 
112.32  Minnesota Indian scholarship committee, may make grants to 
112.33  school districts or tribal grant or contract schools to support 
112.34  post-secondary preparation for secondary pupils who are of 
112.35  one-fourth or more Indian ancestry and who, in the opinion of 
112.36  the superintendent, have the capabilities to benefit from higher 
113.1   education.  Distribution of the grants must be in accordance 
113.2   with a plan prepared by the state board, with the advice of the 
113.3   Minnesota Indian scholarship committee, that describes the 
113.4   objectives and methods of implementing the grant program, 
113.5   including the manner in which grants will be distributed in 
113.6   proportion to the geographical distribution of the Indian 
113.7   population of the state. 
113.8      Sec. 109.  Minnesota Statutes 1996, section 124.573, 
113.9   subdivision 2, is amended to read: 
113.10     Subd. 2.  [LIMIT.] The commissioner may withhold all or any 
113.11  portion of the aid paid under this section for a secondary 
113.12  vocational education program which receives funds from any other 
113.13  source.  In no event shall A district or center must not receive 
113.14  a total amount of state aid pursuant to this section which, when 
113.15  added to funds from other sources, will provide the program an 
113.16  amount for salaries and travel which exceeds 100 percent of the 
113.17  amount of its expenditures for salaries and travel in the 
113.18  program.  
113.19     Sec. 110.  Minnesota Statutes 1996, section 124.573, 
113.20  subdivision 2b, is amended to read: 
113.21     Subd. 2b.  [SECONDARY VOCATIONAL AID.] A district's 
113.22  secondary vocational education aid for a fiscal year equals the 
113.23  lesser of: 
113.24     (a) $80 times the district's average daily membership in 
113.25  grades 10 to 12; or 
113.26     (b) 25 percent of approved expenditures for the following: 
113.27     (1) salaries paid to essential, licensed personnel 
113.28  providing direct instructional services to students in that 
113.29  fiscal year for services rendered in the district's approved 
113.30  secondary vocational education programs; 
113.31     (2) contracted services provided by a public or private 
113.32  agency other than a Minnesota school district or cooperative 
113.33  center under subdivision 3a; 
113.34     (3) necessary travel between instructional sites by 
113.35  licensed secondary vocational education personnel; 
113.36     (4) necessary travel by licensed secondary vocational 
114.1   education personnel for vocational student organization 
114.2   activities held within the state for instructional purposes; 
114.3      (5) curriculum development activities that are part of a 
114.4   five-year plan for improvement based on program assessment; 
114.5      (6) necessary travel by licensed secondary vocational 
114.6   education personnel for noncollegiate credit bearing 
114.7   professional development; and 
114.8      (7) specialized vocational instructional supplies. 
114.9      (c) Up to ten percent of a district's secondary vocational 
114.10  aid may be spent on equipment purchases.  Districts using 
114.11  secondary vocational aid for equipment purchases must report to 
114.12  the department of children, families, and learning on the 
114.13  improved learning opportunities for students that result from 
114.14  the investment in equipment.  
114.15     Sec. 111.  Minnesota Statutes 1996, section 124.573, 
114.16  subdivision 2e, is amended to read: 
114.17     Subd. 2e.  [ALLOCATION FROM COOPERATIVE CENTERS AND 
114.18  INTERMEDIATE DISTRICTS.] For purposes of subdivisions 2b, 
114.19  paragraph (b), and 2f, paragraph (b), a cooperative center or an 
114.20  intermediate district shall must allocate its approved 
114.21  expenditures for secondary vocational education programs among 
114.22  participating school districts.  For purposes of subdivision 2f, 
114.23  paragraph (a), a cooperative center or an intermediate 
114.24  district shall must allocate its secondary vocational aid for 
114.25  fiscal year 1994 among participating school districts.  For 1995 
114.26  and later fiscal years, secondary vocational aid for services 
114.27  provided by a cooperative center or an intermediate district 
114.28  shall be paid to the participating school district.  
114.29     Sec. 112.  Minnesota Statutes 1996, section 124.573, 
114.30  subdivision 2f, is amended to read: 
114.31     Subd. 2f.  [AID GUARANTEE.] Notwithstanding subdivision 2b, 
114.32  the secondary vocational education aid for a school district is 
114.33  not less than the lesser of: 
114.34     (a) 95 percent of the secondary vocational education aid 
114.35  the district received for the previous fiscal year; or 
114.36     (b) 40 percent of the approved expenditures for secondary 
115.1   vocational programs included in subdivision 2b, paragraph (b). 
115.2      Sec. 113.  Minnesota Statutes 1996, section 124.573, 
115.3   subdivision 3, is amended to read:  
115.4      Subd. 3.  [COMPLIANCE WITH RULES.] Aid shall must be paid 
115.5   under this section only for services rendered or for costs 
115.6   incurred in secondary vocational education programs approved by 
115.7   the commissioner and operated in accordance with rules 
115.8   promulgated by the state board.  These rules shall must provide 
115.9   minimum student-staff ratios required for a secondary vocational 
115.10  education program area to qualify for this aid.  The rules must 
115.11  not require the collection of data at the program or course 
115.12  level to calculate secondary vocational aid.  The rules shall 
115.13  must not require any minimum number of administrative staff, any 
115.14  minimum period of coordination time or extended employment for 
115.15  secondary vocational education personnel, or the availability of 
115.16  vocational student activities or organizations for a secondary 
115.17  vocational education program to qualify for this aid.  The 
115.18  requirement in these rules that program components be available 
115.19  for a minimum number of hours shall must not be construed to 
115.20  prevent pupils from enrolling in secondary vocational education 
115.21  courses on an exploratory basis for less than a full school 
115.22  year.  The state board shall must not require a school district 
115.23  to offer more than four credits or 560 hours of vocational 
115.24  education course offerings in any school year.  Rules relating 
115.25  to secondary vocational education programs shall must not 
115.26  incorporate the provisions of the state plan for vocational 
115.27  education by reference.  This aid shall be paid only for 
115.28  services rendered and for costs incurred by essential, licensed 
115.29  personnel who meet the work experience requirements for 
115.30  licensure pursuant to the rules of the state board.  Licensed 
115.31  personnel means persons holding a valid secondary vocational 
115.32  license issued by the commissioner, except that when.  If an 
115.33  average of five or fewer secondary full-time equivalent students 
115.34  are enrolled per teacher in an approved post-secondary program 
115.35  at intermediate district No. 287, 916, or 917, licensed 
115.36  personnel means persons holding a valid vocational license 
116.1   issued by the commissioner, the state board for vocational 
116.2   technical education, or the board of trustees of the Minnesota 
116.3   state colleges and universities.  Notwithstanding section 
116.4   124.15, the commissioner may modify or withdraw the program or 
116.5   aid approval and withhold aid under this section without 
116.6   proceeding under section 124.15 at any time.  To do so, the 
116.7   commissioner must determine that the program does not comply 
116.8   with rules of the state board or that any facts concerning the 
116.9   program or its budget differ from the facts in the district's 
116.10  approved application. 
116.11     Sec. 114.  Minnesota Statutes 1996, section 124.573, 
116.12  subdivision 3a, is amended to read: 
116.13     Subd. 3a.  [AID FOR CONTRACTED SERVICES.] In addition to 
116.14  the provisions of subdivisions 2 and 3, a school district or 
116.15  cooperative center may contract with a public or private agency 
116.16  other than a Minnesota school district or cooperative center for 
116.17  the provision of secondary vocational education services.  The 
116.18  state board shall must promulgate rules relating to program 
116.19  approval procedures and criteria for these contracts and 
116.20  aid shall must be paid only for contracts approved by the 
116.21  commissioner of children, families, and learning.  For the 
116.22  purposes of subdivision 4, The district or cooperative center 
116.23  contracting for these services shall must be construed to be 
116.24  providing the services.  
116.25     Sec. 115.  Minnesota Statutes 1996, section 124.573, 
116.26  subdivision 5a, is amended to read: 
116.27     Subd. 5a.  [DISTRICT REPORTS.] Each district or cooperative 
116.28  center shall must report data to the department for all 
116.29  secondary vocational education programs as required by the 
116.30  department to implement the secondary vocational aid formula.  
116.31     Sec. 116.  Minnesota Statutes 1997 Supplement, section 
116.32  124.574, subdivision 9, is amended to read: 
116.33     Subd. 9.  [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 
116.34  INTERMEDIATE DISTRICTS.] For purposes of this section and 
116.35  section 124.321, a cooperative center or an intermediate 
116.36  district shall must allocate its approved expenditures for 
117.1   school-to-work programs for children with a disability among 
117.2   participating school districts.  Aid for school-to-work programs 
117.3   for children with a disability for services provided by a 
117.4   cooperative or intermediate district shall be paid to the 
117.5   participating school districts.  
117.6      Sec. 117.  Minnesota Statutes 1996, section 124.86, 
117.7   subdivision 1, is amended to read: 
117.8      Subdivision 1.  [AUTHORIZATION.] (a) Each year each 
117.9   American Indian-controlled tribal contract or grant school 
117.10  authorized by the United States Code, title 25, section 450f, 
117.11  that is located on a reservation within the state is eligible to 
117.12  receive tribal contract or grant school aid subject to the 
117.13  requirements in this subdivision paragraphs (b) to (d). 
117.14     (a) (b) The school must plan, conduct, and administer an 
117.15  education program that complies with the requirements of either 
117.16  this chapter and chapters 120, 121, 122, 123, 124A, 124C, 125, 
117.17  126, 129, and 268A or Code of Federal Regulations, title 25, 
117.18  sections 31.0 to 45.80. 
117.19     (b) (c) The school must comply with all other state 
117.20  statutes governing independent school districts or their 
117.21  equivalent in the Code of Federal Regulations, title 25.  
117.22     (c) (d) The state tribal contract or grant school aid must 
117.23  be used to supplement, and not to replace, the money for 
117.24  American Indian education programs provided by the federal 
117.25  government. 
117.26     Sec. 118.  Minnesota Statutes 1997 Supplement, section 
117.27  124.86, subdivision 2, is amended to read: 
117.28     Subd. 2.  [REVENUE AMOUNT.] An American Indian-controlled 
117.29  tribal contract or grant school that is located on a reservation 
117.30  within the state and that complies with the requirements in 
117.31  subdivision 1 is eligible to receive tribal contract or grant 
117.32  school aid.  The amount of aid is derived by: 
117.33     (1) multiplying the formula allowance under section 
117.34  124A.22, subdivision 2, less $170, times the difference between 
117.35  (a) (i) the actual pupil units as defined in section 124A.02, 
117.36  subdivision 15, in average daily membership, excluding section 
118.1   124.17, subdivision 2f, and (b) (ii) the number of pupils for 
118.2   the current school year, weighted according to section 124.17, 
118.3   subdivision 1, receiving benefits under section 123.933 or 
118.4   123.935 or for which the school is receiving reimbursement under 
118.5   section 126.23; 
118.6      (2) adding to the result in clause (1) an amount equal to 
118.7   the product of the formula allowance under section 124A.22, 
118.8   subdivision 2, less $300 times the tribal contract compensation 
118.9   revenue pupil units; 
118.10     (3) subtracting from the result in clause (2) the amount of 
118.11  money allotted to the school by the federal government through 
118.12  Indian School Equalization Program of the Bureau of Indian 
118.13  Affairs, according to Code of Federal Regulations, title 25, 
118.14  part 39, subparts A to E, for the basic program as defined by 
118.15  section 39.11, paragraph (b), for the base rate as applied to 
118.16  kindergarten through twelfth grade, excluding small school 
118.17  adjustments and additional weighting, but not money allotted 
118.18  through subparts F to L for contingency funds, school board 
118.19  training, student training, interim maintenance and minor 
118.20  repair, interim administration cost, prekindergarten, and 
118.21  operation and maintenance, and the amount of money that is 
118.22  received according to section 126.23; 
118.23     (4) dividing the result in clause (3) by the sum of the 
118.24  actual pupil units in average daily membership, excluding 
118.25  section 124.17, subdivision 2f, plus the tribal contract 
118.26  compensation revenue pupil units; and 
118.27     (5) multiplying the sum of the actual pupil units, 
118.28  including section 124.17, subdivision 2f, in average daily 
118.29  membership plus the tribal contract compensation revenue pupil 
118.30  units by the lesser of $1,500 or the result in clause (4). 
118.31     Sec. 119.  Minnesota Statutes 1996, section 124.86, 
118.32  subdivision 3, is amended to read: 
118.33     Subd. 3.  [WAIVER.] Notwithstanding subdivision 1, 
118.34  paragraphs (a) (b) and (b) (c), a tribal contract or grant 
118.35  school: 
118.36     (1) is not subject to the Minnesota election law; 
119.1      (2) has no authority under this section to levy for 
119.2   property taxes, issue and sell bonds, or incur debt; and 
119.3      (3) may request through its managing tribal organization a 
119.4   recommendation of the state board of education, for 
119.5   consideration of the legislature, that a tribal contract or 
119.6   grant school not be subject to specified statutes related to 
119.7   independent school districts. 
119.8      Sec. 120.  Minnesota Statutes 1996, section 124.86, 
119.9   subdivision 4, is amended to read: 
119.10     Subd. 4.  [EARLY CHILDHOOD FAMILY EDUCATION REVENUE.] A 
119.11  school receiving aid under this section is eligible to receive 
119.12  early childhood family education revenue to provide early 
119.13  childhood family education programs for parents and children who 
119.14  are enrolled or eligible for enrollment in a federally 
119.15  recognized tribe.  The revenue equals 1.5 times the statewide 
119.16  average expenditure per participant under section 124.2711, 
119.17  times the number of children and parents participating full time 
119.18  in the program.  The program shall must comply with section 
119.19  121.882, except that the school is not required to provide a 
119.20  community education program or establish a community education 
119.21  advisory council.  The program shall must be designed to improve 
119.22  the skills of parents and promote American Indian history, 
119.23  language, and culture.  The school shall must make affirmative 
119.24  efforts to encourage participation by fathers.  Admission may 
119.25  not be limited to those enrolled in or eligible for enrollment 
119.26  in a federally recognized tribe. 
119.27     Sec. 121.  Minnesota Statutes 1996, section 124.90, is 
119.28  amended to read: 
119.29     124.90 [MEDICAL ASSISTANCE PAYMENTS TO SCHOOL DISTRICTS.] 
119.30     Subdivision 1.  [ELIGIBILITY.] A school district may enroll 
119.31  as a provider in the medical assistance program and receive 
119.32  medical assistance payments for covered special education 
119.33  services provided to persons eligible for medical assistance 
119.34  under chapter 256B.  To receive medical assistance payments, the 
119.35  school district must comply with relevant provisions of state 
119.36  and federal statutes and regulations governing the medical 
120.1   assistance program. 
120.2      Subd. 2.  [FUNDING.] A school district that provides a 
120.3   covered service to an eligible person and complies with relevant 
120.4   requirements of the medical assistance program shall be is 
120.5   entitled to receive payment for the service provided, including 
120.6   that portion of the payment that will subsequently be reimbursed 
120.7   by the federal government, in the same manner as other medical 
120.8   assistance providers.  The school district is not required to 
120.9   provide matching funds or pay part of the costs of the service, 
120.10  as long as the rate charged for the service does not exceed 
120.11  medical assistance limits that apply to all medical assistance 
120.12  providers. 
120.13     Subd. 3.  [CONTRACT FOR SERVICES.] A school district may 
120.14  contract for the provision of medical assistance-covered 
120.15  services, and may contract with a third party agency to assist 
120.16  in administering and billing for these services. 
120.17     Subd. 4.  [PRIVATE INSURERS.] A school district may enroll 
120.18  as a provider for insurance companies to provide covered special 
120.19  education services to eligible persons.  To receive payments, 
120.20  the district must comply with relevant state and federal 
120.21  statutes.  A district may contract for services, and may 
120.22  contract with a third party agency to assist in administering 
120.23  and billing for these services. 
120.24     Subd. 5.  [NO REDUCTION IN REVENUE.] A school district's 
120.25  revenue for special education programs shall must not be reduced 
120.26  by any payments for medical assistance or insurance received 
120.27  according to this section. 
120.28     Sec. 122.  Minnesota Statutes 1997 Supplement, section 
120.29  126.22, subdivision 2, is amended to read: 
120.30     Subd. 2.  [ELIGIBLE PUPILS.] The following pupils are 
120.31  eligible to participate in the graduation incentives program:  
120.32     (a) any pupil under the age of 21 who:  
120.33     (1) performs substantially below the performance level for 
120.34  pupils of the same age in a locally determined achievement test; 
120.35  or 
120.36     (2) is at least one year behind in satisfactorily 
121.1   completing coursework or obtaining credits for graduation; or 
121.2      (3) is pregnant or is a parent; or 
121.3      (4) has been assessed as chemically dependent; or 
121.4      (5) has been excluded or expelled according to sections 
121.5   127.26 to 127.39; or 
121.6      (6) has been referred by a school district for enrollment 
121.7   in an eligible program or a program pursuant to section 126.23; 
121.8   or 
121.9      (7) is a victim of physical or sexual abuse; or 
121.10     (8) has experienced mental health problems; or 
121.11     (9) has experienced homelessness sometime within six months 
121.12  before requesting a transfer to an eligible program; or 
121.13     (10) speaks English as a second language or has limited 
121.14  English proficiency; or 
121.15     (11) has withdrawn from school or has been chronically 
121.16  truant; or 
121.17     (b) any person who is at least 21 years of age and who:  
121.18     (1) has received fewer than 14 years of public or nonpublic 
121.19  education, beginning at age 5; 
121.20     (2) has not completed the requirements for a high school 
121.21  diploma; and 
121.22     (3) at the time of application, (i) is eligible for 
121.23  reemployment insurance benefits or has exhausted the benefits, 
121.24  (ii) is eligible for, or is receiving income maintenance and 
121.25  support services, as defined in section 268.0111, subdivision 5, 
121.26  or (iii) is eligible for services under the displaced homemaker 
121.27  program, state wage-subsidy program, or any programs under the 
121.28  federal Jobs Training Partnership Act or its successor. 
121.29     Sec. 123.  Minnesota Statutes 1997 Supplement, section 
121.30  126.22, subdivision 3a, is amended to read: 
121.31     Subd. 3a.  [ADDITIONAL ELIGIBLE PROGRAM.] A pupil who is at 
121.32  least 16 years of age, who is eligible under subdivision 2, 
121.33  clause (a), and who has been enrolled only in a public school, 
121.34  if the pupil has been enrolled in any school, during the year 
121.35  immediately before transferring under this subdivision, may 
121.36  transfer to any nonpublic school that has contracted with the 
122.1   serving school district to provide nonsectarian educational 
122.2   services.  Such a The school must enroll every eligible pupil 
122.3   who seeks to transfer to the school under this program subject 
122.4   to available space. 
122.5      Sec. 124.  Minnesota Statutes 1996, section 126.22, 
122.6   subdivision 5, is amended to read: 
122.7      Subd. 5.  [DISSEMINATION OF INFORMATION.] A school district 
122.8   shall must disseminate information, developed by the department 
122.9   of children, families, and learning, about the graduation 
122.10  incentives program to residents in the district who are under 
122.11  the age of 21. 
122.12     Sec. 125.  Minnesota Statutes 1996, section 126.22, 
122.13  subdivision 6, is amended to read: 
122.14     Subd. 6.  [DESEGREGATION PLANS.] Notwithstanding any 
122.15  provision to the contrary, students may not enroll in a 
122.16  nonresident district under this section if their enrollment in 
122.17  another school district would result in a violation of a 
122.18  district's desegregation plan, as mandated and approved by the 
122.19  state board of education. 
122.20     Sec. 126.  Minnesota Statutes 1997 Supplement, section 
122.21  126.22, subdivision 8, is amended to read: 
122.22     Subd. 8.  [ENROLLMENT VERIFICATION.] (a) For a pupil 
122.23  attending an eligible program full time under subdivision 3, 
122.24  paragraph (d), the department of children, families, and 
122.25  learning shall must pay 90 percent of the district's average 
122.26  general education revenue less compensatory revenue to the 
122.27  eligible program and ten percent of the district's average 
122.28  general education revenue less compensatory revenue to the 
122.29  resident district within 30 days after the eligible program 
122.30  verifies enrollment using the form provided by the department.  
122.31  For a pupil attending an eligible program part time, revenue 
122.32  shall be reduced proportionately, according to the amount of 
122.33  time the pupil attends the program, and the payments to the 
122.34  eligible program and the resident district shall be reduced 
122.35  accordingly.  A pupil for whom payment is made according to this 
122.36  section may not be counted by any district for any purpose other 
123.1   than computation of general education revenue.  If payment is 
123.2   made for a pupil under this subdivision, a school district shall 
123.3   not reimburse a program under section 126.23 for the same pupil. 
123.4   Compensatory revenue shall be paid according to section 124A.22, 
123.5   subdivision 3. 
123.6      (b) The department of children, families, and learning 
123.7   shall must pay up to 100 percent of the revenue to the eligible 
123.8   program if there is an agreement to that effect between the 
123.9   school district and the eligible program.  
123.10     Sec. 127.  Minnesota Statutes 1997 Supplement, section 
123.11  126.23, subdivision 1, is amended to read: 
123.12     Subdivision 1.  [AID.] If a pupil enrolls in an alternative 
123.13  program, eligible under section 126.22, subdivision 3, paragraph 
123.14  (d), or subdivision 3a, operated by a private organization that 
123.15  has contracted with a school district to provide educational 
123.16  services for eligible pupils under section 126.22, subdivision 
123.17  2, the district contracting with the private organization must 
123.18  reimburse the provider an amount equal to at least 90 percent of 
123.19  the district's average general education less compensatory 
123.20  revenue per pupil unit times the number of pupil units for 
123.21  pupils attending the program.  Compensatory revenue must be 
123.22  allocated according to section 124A.28, subdivision 1a.  For a 
123.23  pupil attending the program part time, the revenue paid to the 
123.24  program shall must be reduced proportionately, according to the 
123.25  amount of time the pupil attends the program, and revenue paid 
123.26  to the district shall be reduced accordingly.  Pupils for whom a 
123.27  district provides reimbursement may not be counted by the 
123.28  district for any purpose other than computation of general 
123.29  education revenue.  If payment is made to a district or program 
123.30  for a pupil under this section, the department of children, 
123.31  families, and learning shall must not make a payment for the 
123.32  same pupil under section 126.22, subdivision 8. 
123.33     Sec. 128.  Minnesota Statutes 1996, section 126.235, is 
123.34  amended to read: 
123.35     126.235 [EDUCATIONAL PROGRAM FOR PREGNANT MINORS AND MINOR 
123.36  PARENTS.] 
124.1      Upon request, a school district must make available to a 
124.2   pregnant minor or a minor custodial parent an educational 
124.3   program to enable the minor to earn a high school diploma.  The 
124.4   department of children, families, and learning shall must 
124.5   develop program designs and provide districts with technical 
124.6   assistance.  A district's educational program must use 
124.7   appropriate community services and must recognize each pupil's 
124.8   individual needs and parental responsibilities.  The district 
124.9   shall must designate at least one person to review quarterly 
124.10  each pupil's progress in the program. 
124.11     If a pupil receives social services according to section 
124.12  257.33 or employment and training services according to section 
124.13  256.736, the district shall must develop the pupil's educational 
124.14  program in consultation with the providers of the services and 
124.15  shall provide a liaison when necessary.  The pupil may request 
124.16  that an adult, selected by the pupil, assist in developing the 
124.17  educational program. 
124.18     Sec. 129.  Minnesota Statutes 1996, section 126.239, 
124.19  subdivision 1, is amended to read: 
124.20     Subdivision 1.  [TRAINING PROGRAMS FOR TEACHERS.] A 
124.21  secondary teacher assigned by a school district to teach an 
124.22  advanced placement or international baccalaureate course may 
124.23  participate in a training program offered by the college board 
124.24  or International Baccalaureate North America, Inc.  The state 
124.25  may pay a portion of the tuition, room, and board costs a 
124.26  teacher incurs in participating in a training program.  The 
124.27  commissioner of children, families, and learning shall determine 
124.28  application procedures and deadlines, and select teachers to 
124.29  participate in the training program.  The procedures determined 
124.30  by the commissioner shall, to the extent possible, ensure that 
124.31  advanced placement and international baccalaureate courses 
124.32  become available in all parts of the state and that a variety of 
124.33  course offerings are available in school districts.  This 
124.34  subdivision does not prevent teacher participation in training 
124.35  programs offered by the college board or International 
124.36  Baccalaureate North America, Inc., when tuition is paid by a 
125.1   source other than the state. 
125.2      Sec. 130.  Minnesota Statutes 1996, section 126.262, 
125.3   subdivision 3, is amended to read: 
125.4      Subd. 3.  [ESSENTIAL INSTRUCTIONAL PERSONNEL.] "Essential 
125.5   instructional personnel" means the following:  
125.6      (a) A teacher licensed by the state board of teaching to 
125.7   teach bilingual education or English as a second language; 
125.8      (b) A teacher with an exemption from a teaching license 
125.9   requirement pursuant to section 126.266 who is employed in a 
125.10  school district's English as a second language or bilingual 
125.11  education program; 
125.12     (c) Any teacher as defined in section 125.03 who holds a 
125.13  valid license from the state board of teaching, if the district 
125.14  assures the department of children, families, and learning that 
125.15  the teacher will obtain the preservice and in-service training 
125.16  the department considers necessary to enable the teacher to 
125.17  provide appropriate service to pupils of limited English 
125.18  proficiency.  
125.19     Sec. 131.  Minnesota Statutes 1996, section 126.262, 
125.20  subdivision 6, is amended to read: 
125.21     Subd. 6.  [PRIMARY LANGUAGE.] "Primary language" is means a 
125.22  language other than English which is the language normally used 
125.23  by the child or the language which is spoken in the child's home 
125.24  environment.  
125.25     Sec. 132.  Minnesota Statutes 1996, section 126.264, is 
125.26  amended to read: 
125.27     126.264 [RIGHTS OF PARENTS.] 
125.28     Subdivision 1.  [NOVICE.] No later than Within ten days 
125.29  after the enrollment of any pupil in an instructional program 
125.30  for limited English proficient students, the school district in 
125.31  which the pupil resides shall must notify the parent or guardian 
125.32  by mail.  This notice shall must:  
125.33     (a) Be in writing in English and in the primary language of 
125.34  the pupil's parents; 
125.35     (b) Inform the parents that their child has been enrolled 
125.36  in an instructional program for limited English proficient 
126.1   students; 
126.2      (c) Contain a simple, nontechnical description of the 
126.3   purposes, method and content of the program; 
126.4      (d) Inform the parents that they have the right to visit 
126.5   the educational program for limited English proficient students 
126.6   in which their child is enrolled; 
126.7      (e) Inform the parents of the time and manner in which to 
126.8   request and receive a conference for the purpose of explaining 
126.9   the nature and purpose of the program; and 
126.10     (f) Inform the parents of their rights to withdraw their 
126.11  child from an educational program for limited English proficient 
126.12  students and the time and manner in which to do so.  
126.13     The department of children, families, and learning shall, 
126.14  at the request of the school district, prepare the notice in the 
126.15  primary language of the parent or guardian.  
126.16     Subd. 2.  [WITHDRAWAL FROM PROGRAM.] Any parent whose child 
126.17  is enrolled in an educational program for limited English 
126.18  proficient students shall have the right, either at the time of 
126.19  the original notification of enrollment or at the close of any 
126.20  semester thereafter, to withdraw the child from the program by 
126.21  providing written notice of this intent to the principal of the 
126.22  school in which the child is enrolled or to the superintendent 
126.23  of the school district in which the child resides.  Nothing 
126.24  herein in this section shall preclude a parent from reenrolling 
126.25  a child of limited English proficiency in an educational program 
126.26  for limited English proficient students. 
126.27     Subd. 3.  [PARENTAL INVOLVEMENT.] A district which receives 
126.28  moneys pursuant to section 124.273 shall must encourage 
126.29  involvement of parents of pupils enrolled in the educational 
126.30  program for limited English proficient students in this 
126.31  program.  The district shall solicit the views of parents about 
126.32  the program and its effects upon their children. 
126.33     Sec. 133.  Minnesota Statutes 1996, section 126.265, is 
126.34  amended to read: 
126.35     126.265 [GENERAL REQUIREMENTS FOR PROGRAMS.] 
126.36     A district which receives aid pursuant to section 124.273 
127.1   shall must comply with the following program requirements: 
127.2      (a) To the extent possible, the district shall must avoid 
127.3   isolating children of limited English proficiency for a 
127.4   substantial part of the school day; and 
127.5      (b) In predominantly nonverbal subjects, such as art, 
127.6   music, and physical education, pupils of limited English 
127.7   proficiency shall be permitted to participate fully and on an 
127.8   equal basis with their contemporaries in public school classes 
127.9   provided for these subjects.  To the extent possible, the school 
127.10  district shall must assure to pupils enrolled in a program for 
127.11  limited English proficient students an equal and meaningful 
127.12  opportunity to participate fully with other pupils in all 
127.13  extracurricular activities. 
127.14     Sec. 134.  Minnesota Statutes 1996, section 126.266, 
127.15  subdivision 1, is amended to read: 
127.16     Subdivision 1.  [EXEMPTIONS.] The commissioner of children, 
127.17  families, and learning may grant an exemption from the licensure 
127.18  requirement in the hiring of teachers of English as a second 
127.19  language or bilingual education teachers to a school district if 
127.20  the commissioner finds that compliance would impose a hardship 
127.21  upon the district in the securing of teachers for its 
127.22  educational programs for limited English proficient students.  
127.23  The commissioner of children, families, and learning shall 
127.24  notify the board of teaching of any exemptions granted pursuant 
127.25  to this section. 
127.26     Sec. 135.  Minnesota Statutes 1996, section 126.267, is 
127.27  amended to read: 
127.28     126.267 [TECHNICAL ASSISTANCE.] 
127.29     The commissioner shall provide technical assistance to 
127.30  school districts receiving aid pursuant to section 124.273 and 
127.31  to post-secondary institutions for preservice and in-service 
127.32  training for bilingual education teachers and English as a 
127.33  second language teachers employed in educational programs for 
127.34  limited English proficient students, teaching methods, 
127.35  curriculum development, testing and testing mechanisms, and the 
127.36  development of instructional materials for these educational 
128.1   programs. 
128.2      Sec. 136.  Minnesota Statutes 1996, section 126.43, 
128.3   subdivision 1, is amended to read: 
128.4      Subdivision 1.  [CULTURAL EXCHANGE PROGRAM GOALS.] (a) A 
128.5   cultural exchange grant program is established to develop and 
128.6   create opportunities for children and staff of different ethnic, 
128.7   racial, and other cultural backgrounds to experience educational 
128.8   and social exchange.  Student and staff exchanges under this 
128.9   section may only take place between a district with a 
128.10  desegregation plan approved by the state board of education and 
128.11  a district without a desegregation plan.  Participating school 
128.12  districts shall offer summer programs for credit with the goals 
128.13  set forth in paragraphs (a) (b) to (d) (e). 
128.14     (a) (b) The program shall must develop curriculum 
128.15  reflective of particular ethnic, racial, and other cultural 
128.16  aspects of various demographic groups in the state. 
128.17     (b) (c) The program shall must develop immersion programs 
128.18  that are coordinated with the programs offered in 
128.19  paragraph (a) (b). 
128.20     (c) (d) The program shall must create opportunities for 
128.21  students from across the state to enroll in summer programs 
128.22  in school districts other than the one of residence, or in other 
128.23  schools within their district of residence. 
128.24     (d) (e) The program shall must create opportunities for 
128.25  staff exchanges on a cultural basis. 
128.26     Sec. 137.  Minnesota Statutes 1996, section 126.43, 
128.27  subdivision 2, is amended to read: 
128.28     Subd. 2.  [CULTURAL EXCHANGE GRANTS.] A school district 
128.29  together with a group of school districts, a cooperative 
128.30  governmental unit, the center for arts and education, or a 
128.31  post-secondary institution may apply for cultural exchange 
128.32  grants.  The commissioner of children, families, and learning 
128.33  shall determine grant recipients and may adopt application 
128.34  guidelines.  The grants must be competitively determined and 
128.35  applicants must demonstrate: 
128.36     (1) the capacity to develop a focused curriculum that 
129.1   reflects the particular ethnic, racial, and other cultural 
129.2   aspects of the community in which the school where the program 
129.3   is offered is located; 
129.4      (2) the capacity to develop immersion programs coordinated 
129.5   with the curriculum developed in clause (1); 
129.6      (3) the capacity to coordinate a cultural exchange program 
129.7   with other curriculum programs to assure continuity in a pupil's 
129.8   education; 
129.9      (4) the capacity to maximize diversity of ethnic, racial, 
129.10  and other cultural backgrounds of participants; 
129.11     (5) that the application is jointly developed by 
129.12  participants; and 
129.13     (6) that the outcomes of the exchange program are clearly 
129.14  articulated. 
129.15     Sec. 138.  Minnesota Statutes 1996, section 126.48, 
129.16  subdivision 1, is amended to read: 
129.17     Subdivision 1.  [PROGRAM DESCRIBED.] American Indian 
129.18  language and culture education programs shall be are programs in 
129.19  elementary and secondary schools enrolling American Indian 
129.20  children designed: 
129.21     (1) to make the curriculum more relevant to the needs, 
129.22  interests, and cultural heritage of American Indian pupils; 
129.23     (2) to provide positive reinforcement of the self-image of 
129.24  American Indian pupils; and 
129.25     (3) to develop intercultural awareness among pupils, 
129.26  parents, and staff.  Program components may include:  
129.27  instruction in American Indian language, literature, history, 
129.28  and culture; development of support components for staff, 
129.29  including in-service training and technical assistance in 
129.30  methods of teaching American Indian pupils; research projects, 
129.31  including experimentation with and evaluation of methods of 
129.32  relating to American Indian pupils; provision of personal and 
129.33  vocational counseling to American Indian pupils; modification of 
129.34  curriculum, instructional methods, and administrative procedures 
129.35  to meet the needs of American Indian pupils; and establishment 
129.36  of cooperative liaisons with nonsectarian nonpublic, community, 
130.1   tribal or alternative schools offering curricula which reflect 
130.2   American Indian culture.  Districts offering programs may make 
130.3   contracts for the provision of program components by 
130.4   nonsectarian nonpublic, community, tribal or alternative 
130.5   schools.  These programs may also be provided as components of 
130.6   early childhood and family education programs. 
130.7      Sec. 139.  Minnesota Statutes 1996, section 126.48, 
130.8   subdivision 2, is amended to read: 
130.9      Subd. 2.  [VOLUNTARY ENROLLMENT.] Enrollment in American 
130.10  Indian language and culture education programs shall must be 
130.11  voluntary.  School districts and participating schools shall 
130.12  must make affirmative efforts to encourage participation.  They 
130.13  shall encourage parents to visit classes or come to school for a 
130.14  conference explaining the nature of the program and provide 
130.15  visits by school staff to parents' homes to explain the nature 
130.16  of the program. 
130.17     Sec. 140.  Minnesota Statutes 1996, section 126.48, 
130.18  subdivision 3, is amended to read: 
130.19     Subd. 3.  [ENROLLMENT OF OTHER CHILDREN; SHARED TIME 
130.20  ENROLLMENT.] To the extent it is economically feasible, a school 
130.21  district or participating school may make provision for the 
130.22  voluntary enrollment of non-American Indian children in the 
130.23  instructional components of an American Indian language and 
130.24  culture education program in order that they may acquire an 
130.25  understanding of the cultural heritage of the American Indian 
130.26  children for whom that particular program is designed.  However, 
130.27  in determining eligibility to participate in a program, priority 
130.28  shall must be given to American Indian children.  American 
130.29  Indian children and other children enrolled in an existing 
130.30  nonpublic school system may be enrolled on a shared time basis 
130.31  in American Indian language and culture education programs. 
130.32     Sec. 141.  Minnesota Statutes 1996, section 126.48, 
130.33  subdivision 4, is amended to read: 
130.34     Subd. 4.  [LOCATION OF PROGRAMS.] American Indian language 
130.35  and culture education programs shall must be located in 
130.36  facilities in which regular classes in a variety of subjects are 
131.1   offered on a daily basis. 
131.2      Sec. 142.  Minnesota Statutes 1996, section 126.48, 
131.3   subdivision 5, is amended to read: 
131.4      Subd. 5.  [ASSIGNMENT OF STUDENTS.] No A school district or 
131.5   participating school shall must not, in providing these programs 
131.6   , assign students to schools in a way which will have the effect 
131.7   of promoting segregation of students by race, sex, color, or 
131.8   national origin. 
131.9      Sec. 143.  Minnesota Statutes 1996, section 126.49, 
131.10  subdivision 1, is amended to read: 
131.11     Subdivision 1.  [AMERICAN INDIAN LANGUAGE AND CULTURE 
131.12  EDUCATION LICENSES.] The board of teaching shall must grant 
131.13  initial and continuing teaching licenses in American Indian 
131.14  language and culture education that bear the same duration as 
131.15  other initial and continuing licenses.  The board shall must 
131.16  grant licenses to persons who present satisfactory evidence that 
131.17  they: 
131.18     (a) Possess competence in an American Indian language or 
131.19  possess unique qualifications relative to or knowledge and 
131.20  understanding of American Indian history and culture; or 
131.21     (b) Possess a bachelor's degree or other academic degree 
131.22  approved by the board or meet such requirements as to course of 
131.23  study and training as the board may prescribe, or possess such 
131.24  relevant experience as the board may prescribe. 
131.25     This evidence may be presented by affidavits, resolutions, 
131.26  or by such other methods as the board may prescribe.  
131.27  Individuals may present applications for licensure on their own 
131.28  behalf or these applications may be submitted by the 
131.29  superintendent or other authorized official of a school 
131.30  district, participating school, or an American Indian school.  
131.31     Sec. 144.  Minnesota Statutes 1996, section 126.49, 
131.32  subdivision 5, is amended to read: 
131.33     Subd. 5.  [PERSONS ELIGIBLE FOR EMPLOYMENT; EXEMPTIONS.] 
131.34  Any person licensed under this section shall be eligible for 
131.35  employment by a school board or a participating school as a 
131.36  teacher in an American Indian language and culture education 
132.1   program in which the American Indian language or culture in 
132.2   which the person is licensed is taught.  A school district or 
132.3   participating school may prescribe only those additional 
132.4   qualifications for teachers licensed under this section as are 
132.5   approved by the board of teaching.  Any school board or 
132.6   participating school upon request may be exempted from the 
132.7   licensure requirements of this section in the hiring of one or 
132.8   more American Indian language and culture education teachers for 
132.9   any school year in which compliance would, in the opinion of the 
132.10  commissioner of children, families, and learning, create a 
132.11  hardship in the securing of the teachers.  
132.12     Sec. 145.  Minnesota Statutes 1996, section 126.49, 
132.13  subdivision 6, is amended to read: 
132.14     Subd. 6.  [PERSONS SERVING UNDER EXEMPTIONS; LICENSURE; 
132.15  TENURE.] An American Indian language and culture education 
132.16  teacher serving under an exemption as provided in subdivision 5 
132.17  6 shall be granted a license as soon as that teacher achieves 
132.18  the qualifications for it the license.  Not more than one year 
132.19  of service by an American Indian language and culture education 
132.20  teacher under an exemption shall be credited to the teacher for 
132.21  the purposes of section 125.12 and not more than two years shall 
132.22  be credited for the purposes of section 125.17; and the one or 
132.23  two years shall be deemed to precede immediately and be 
132.24  consecutive with the year in which a teacher becomes licensed.  
132.25     Sec. 146.  Minnesota Statutes 1996, section 126.49, 
132.26  subdivision 8, is amended to read: 
132.27     Subd. 8.  [AFFIRMATIVE EFFORTS IN HIRING.] In hiring for 
132.28  all positions in these programs, school districts and 
132.29  participating schools shall give preference to and make 
132.30  affirmative efforts to seek, recruit, and employ persons who 
132.31  share the culture of the American Indian children who are 
132.32  enrolled in the program.  The district or participating school 
132.33  shall provide procedures for the involvement of the parent 
132.34  advisory committees in designing the procedures for the 
132.35  recruitment, screening and selection of applicants, provided 
132.36  that nothing herein.  This subdivision shall not be construed to 
133.1   limit the school board's authority to hire and discharge 
133.2   personnel. 
133.3      Sec. 147.  Minnesota Statutes 1996, section 126.50, is 
133.4   amended to read: 
133.5      126.50 [TEACHERS AIDES; COMMUNITY COORDINATORS.] 
133.6      In addition to employing American Indian language and 
133.7   culture education teachers, each district or participating 
133.8   school providing programs pursuant to sections 126.45 to 126.55 
133.9   may employ teachers' aides.  Teachers' aides shall must not be 
133.10  employed for the purpose of supplanting American Indian language 
133.11  and culture education teachers. 
133.12     Any district or participating school which conducts 
133.13  American Indian language and culture education programs pursuant 
133.14  to sections 126.45 to 126.55 shall must employ one or more full- 
133.15  time or part-time community coordinators if there are 100 or 
133.16  more students enrolled in the program.  Community coordinators 
133.17  shall promote communication understanding, and cooperation 
133.18  between the schools and the community and shall visit the homes 
133.19  of children who are to be enrolled in an American Indian 
133.20  language and culture education program in order to convey 
133.21  information about the program. 
133.22     Sec. 148.  Minnesota Statutes 1996, section 126.501, is 
133.23  amended to read: 
133.24     126.501 [RECRUITING AND RETAINING INDIAN TEACHERS.] 
133.25     This section applies to a school board of a school district 
133.26  in which there are at least ten American Indian children 
133.27  enrolled.  The school board shall must actively recruit teacher 
133.28  applicants who are American Indian from the time it is 
133.29  reasonably expected that a position will become available until 
133.30  the position is filled or September 1, whichever is earlier.  
133.31  Notwithstanding section 125.12, subdivision 4, 6a, or 6b, 
133.32  125.17, subdivisions 3 and 11, any other law to the contrary, or 
133.33  any provision of a contract entered into after May 7, 1988, to 
133.34  the contrary, when placing a teacher on unrequested leave of 
133.35  absence, the board may retain a probationary teacher or a 
133.36  teacher with less seniority in order to retain an American 
134.1   Indian teacher. 
134.2      Sec. 149.  Minnesota Statutes 1997 Supplement, section 
134.3   126.51, subdivision 1, is amended to read: 
134.4      Subdivision 1.  [PARENT COMMITTEE.] School boards and 
134.5   American Indian schools shall must provide for the maximum 
134.6   involvement of parents of children enrolled in education 
134.7   programs, including language and culture education programs, 
134.8   programs for elementary and secondary grades, special education 
134.9   programs, and support services.  Accordingly, the school board 
134.10  of a school district in which there are ten or more American 
134.11  Indian children enrolled and each American Indian school shall 
134.12  must establish a parent committee.  If a committee whose 
134.13  membership consists of a majority of parents of American Indian 
134.14  children has been or is established according to federal, 
134.15  tribal, or other state law, that committee may serve as the 
134.16  committee required by this section and shall be is subject to, 
134.17  at least, the requirements of this subdivision and subdivision 
134.18  1a.  
134.19     The parent committee shall must develop its recommendations 
134.20  in consultation with the curriculum advisory committee required 
134.21  by section 123.972, subdivision 3.  This committee shall must 
134.22  afford parents the necessary information and the opportunity 
134.23  effectively to express their views concerning all aspects of 
134.24  American Indian education and the educational needs of the 
134.25  American Indian children enrolled in the school or program.  The 
134.26  committee shall must also address the need for adult education 
134.27  programs for American Indian people in the community.  The 
134.28  school board or American Indian school shall must ensure that 
134.29  programs are planned, operated, and evaluated with the 
134.30  involvement of and in consultation with parents of children 
134.31  served by the programs.  
134.32     Sec. 150.  Minnesota Statutes 1996, section 126.51, 
134.33  subdivision 1a, is amended to read: 
134.34     Subd. 1a.  [RESOLUTION OF CONCURRENCE.] Each year by Prior 
134.35  to December 1, the school board or American Indian school shall 
134.36  must submit to the department of children, families, and 
135.1   learning a copy of a resolution adopted by the parent 
135.2   committee.  The copy must be signed by the chair of the 
135.3   committee and must state whether the committee concurs with the 
135.4   educational programs for American Indian children offered by the 
135.5   school board or American Indian school.  If the committee does 
135.6   not concur with the educational programs, the reasons for 
135.7   nonconcurrence and recommendations shall be submitted with the 
135.8   resolution.  By resolution, the school board shall must respond, 
135.9   in cases of nonconcurrence, to each recommendation made by the 
135.10  committee and state its reasons for not implementing the 
135.11  recommendations.  
135.12     Sec. 151.  Minnesota Statutes 1996, section 126.51, 
135.13  subdivision 2, is amended to read: 
135.14     Subd. 2.  [MEMBERSHIP.] The committee shall must be 
135.15  composed of parents of children eligible to be enrolled in 
135.16  American Indian education programs; secondary students eligible 
135.17  to be served; American Indian language and culture education 
135.18  teachers and aides; American Indian teachers; counselors; adult 
135.19  American Indian people enrolled in educational programs; and 
135.20  representatives from community groups.  A majority of each 
135.21  committee shall must be parents of children enrolled or eligible 
135.22  to be enrolled in the programs.  The number of parents of 
135.23  American Indian and non-American Indian children shall reflect 
135.24  approximately the proportion of children of those groups 
135.25  enrolled in the programs. 
135.26     Sec. 152.  Minnesota Statutes 1996, section 126.52, 
135.27  subdivision 5, is amended to read: 
135.28     Subd. 5.  [COMMUNITY INVOLVEMENT.] The state board shall 
135.29  must provide for the maximum involvement of the state committees 
135.30  on American Indian education, parents of American Indian 
135.31  children, secondary students eligible to be served, American 
135.32  Indian language and culture education teachers, American Indian 
135.33  teachers, teachers' aides, representatives of community groups, 
135.34  and persons knowledgeable in the field of American Indian 
135.35  education, in the formulation of policy and procedures relating 
135.36  to the administration of sections 126.45 to 126.55.  
136.1      Sec. 153.  Minnesota Statutes 1996, section 126.52, 
136.2   subdivision 8, is amended to read: 
136.3      Subd. 8.  [TECHNICAL ASSISTANCE.] The commissioner shall 
136.4   provide technical assistance to school districts, schools and 
136.5   post-secondary institutions for preservice and in-service 
136.6   training for American Indian education teachers and teacher's 
136.7   aides, teaching methods, curriculum development, testing and 
136.8   testing mechanisms, and the development of materials for 
136.9   American Indian education programs.  
136.10     Sec. 154.  Minnesota Statutes 1996, section 126.531, 
136.11  subdivision 1, is amended to read: 
136.12     Subdivision 1.  [ESTABLISHMENT.] The state board of 
136.13  education shall create one or more American Indian education 
136.14  committees.  Members shall must include representatives of 
136.15  tribal bodies, community groups, parents of children eligible to 
136.16  be served by the programs, American Indian administrators and 
136.17  teachers, persons experienced in the training of teachers for 
136.18  American Indian education programs, persons involved in programs 
136.19  for American Indian children in American Indian schools, and 
136.20  persons knowledgeable in the field of American Indian 
136.21  education.  Members shall be appointed so as to be 
136.22  representative of significant segments of the population of 
136.23  American Indians.  
136.24     Sec. 155.  Minnesota Statutes 1997 Supplement, section 
136.25  126.531, subdivision 3, is amended to read: 
136.26     Subd. 3.  [EXPENSES.] Each committee shall must be 
136.27  reimbursed for expenses according to section 15.059, subdivision 
136.28  6.  The state board shall must determine the membership terms 
136.29  and the duration of each committee, which expire no later than 
136.30  June 30, 2001. 
136.31     Sec. 156.  Minnesota Statutes 1996, section 126.54, 
136.32  subdivision 1, is amended to read: 
136.33     Subdivision 1.  [GRANTS; PROCEDURES.] Each fiscal year the 
136.34  state board of education shall must make grants to no fewer than 
136.35  six American Indian language and culture education programs.  At 
136.36  least three programs shall must be in urban areas and at least 
137.1   three shall must be on or near reservations.  The board of a 
137.2   local district, a participating school or a group of boards may 
137.3   develop a proposal for grants in support of American Indian 
137.4   language and culture education programs.  Proposals may provide 
137.5   for contracts for the provision of program components by 
137.6   nonsectarian nonpublic, community, tribal, or alternative 
137.7   schools.  The commissioner shall prescribe the form and manner 
137.8   of application for grants, and no grant shall be made for a 
137.9   proposal not complying with the requirements of sections 126.45 
137.10  to 126.55.  The state board shall must submit all proposals to 
137.11  the state advisory task force on American Indian language and 
137.12  culture education programs for its recommendations concerning 
137.13  approval, modification, or disapproval and the amounts of grants 
137.14  to approved programs. 
137.15     Sec. 157.  Minnesota Statutes 1996, section 126.54, 
137.16  subdivision 2, is amended to read: 
137.17     Subd. 2.  [PLANS.] Each school district or participating 
137.18  school submitting a proposal under subdivision 1 shall must 
137.19  develop and submit with the proposal a plan which shall: 
137.20     (a) Identify the measures to be used to meet the 
137.21  requirements of sections 126.45 to 126.55; 
137.22     (b) Identify the activities, methods and programs to meet 
137.23  the identified educational needs of the children to be enrolled 
137.24  in the program; 
137.25     (c) Describe how district goals and objectives as well as 
137.26  the objectives of sections 126.45 to 126.55 are to be achieved; 
137.27     (d) Demonstrate that required and elective courses as 
137.28  structured do not have a discriminatory effect within the 
137.29  meaning of section 126.48, subdivision 5; 
137.30     (e) Describe how each school program will be organized, 
137.31  staffed, coordinated, and monitored; and 
137.32     (f) Project expenditures for programs under sections 126.45 
137.33  to 126.55. 
137.34     Sec. 158.  Minnesota Statutes 1996, section 126.54, 
137.35  subdivision 3, is amended to read: 
137.36     Subd. 3.  [ADDITIONAL REQUIREMENTS.] Each school district 
138.1   receiving a grant under this section shall must each year 
138.2   conduct a count of American Indian children in the schools of 
138.3   the district; test for achievement; identify the extent of other 
138.4   educational needs of the children to be enrolled in the American 
138.5   Indian language and culture education program; and classify the 
138.6   American Indian children by grade, level of educational 
138.7   attainment, age and achievement.  Participating schools shall 
138.8   must maintain records concerning the needs and achievements of 
138.9   American Indian children served. 
138.10     Sec. 159.  Minnesota Statutes 1996, section 126.54, 
138.11  subdivision 4, is amended to read: 
138.12     Subd. 4.  [NONDISCRIMINATION; TESTING.] In accordance with 
138.13  recognized professional standards, all testing and evaluation 
138.14  materials and procedures utilized for the identification, 
138.15  testing, assessment and classification of American Indian 
138.16  children shall must be selected and administered so as not to be 
138.17  racially or culturally discriminatory and shall must be valid 
138.18  for the purpose of identifying, testing, assessing, and 
138.19  classifying American Indian children. 
138.20     Sec. 160.  Minnesota Statutes 1996, section 126.54, 
138.21  subdivision 5, is amended to read: 
138.22     Subd. 5.  [RECORDS.] Participating schools and school 
138.23  districts shall keep records and afford access to them as the 
138.24  commissioner finds necessary to ensure that American Indian 
138.25  language and culture education programs are implemented in 
138.26  conformity with sections 126.45 to 126.55.  Each school district 
138.27  or participating school shall must keep accurate, detailed, and 
138.28  separate revenue and expenditure accounts for pilot American 
138.29  Indian language and culture education programs funded under this 
138.30  section. 
138.31     Sec. 161.  Minnesota Statutes 1996, section 126.54, 
138.32  subdivision 6, is amended to read: 
138.33     Subd. 6.  [MONEY FROM OTHER SOURCES.] A school district or 
138.34  participating school providing American Indian language and 
138.35  culture education programs shall be eligible to receive moneys 
138.36  for these programs from other government agencies and from 
139.1   private sources when the moneys are available. 
139.2      Sec. 162.  Minnesota Statutes 1996, section 126.56, 
139.3   subdivision 6, is amended to read: 
139.4      Subd. 6.  [INFORMATION.] The higher education services 
139.5   office, in cooperation with the academic excellence foundation, 
139.6   shall must assemble and distribute information about 
139.7   scholarships and eligible programs. 
139.8      Sec. 163.  [REPEALER.] 
139.9      (a) Minnesota Statutes 1996, sections 124C.55; 124C.56; 
139.10  124C.57; and 124C.58, are repealed. 
139.11     (b) Minnesota Statutes 1996, section 124.312, as amended by 
139.12  Laws 1997, First Special Session chapter 4, article 2, sections 
139.13  13 and 14; Minnesota Statutes 1997 Supplement, sections 124.313; 
139.14  and 124.314, are repealed effective for revenue for fiscal year 
139.15  1999. 
139.16     Sec. 164.  [INSTRUCTION TO REVISOR.] 
139.17     The revisor of statutes shall renumber each section of 
139.18  Minnesota Statutes listed in column A with the number listed in 
139.19  column B.  The revisor shall also make necessary cross-reference 
139.20  changes consistent with the renumbering. 
139.21        Column A                        Column B 
139.22       120.03, subd. 1                120B.02, subd. 1
139.23               subd. 5                         subd. 2
139.24       120.17, subd. 1                120B.03, subd. 1
139.25               subd. 1b                        subd. 2
139.26               subd. 2                         subd. 3
139.27               subd. 3                         subd. 4
139.28               subd. 3a                        subd. 5
139.29               subd. 3b                        subd. 6
139.30               subd. 3d                        subd. 7
139.31               subd. 4                         subd. 8
139.32               subd. 4a                        subd. 9
139.33               subd. 5                         subd. 10
139.34               subd. 5a                        subd. 11
139.35               subd. 6                         subd. 12
139.36               subd. 7                         subd. 13
140.1                subd. 7a                        subd. 14
140.2                subd. 8a                        subd. 15
140.3                subd. 9                         subd. 16
140.4                subd. 10                        subd. 17
140.5                subd. 11                        subd. 18
140.6                subd. 15                        subd. 19
140.7                subd. 16                        subd. 20
140.8                subd. 18                        subd. 21
140.9                subd. 19                        subd. 22
140.10       120.1701, subd. 1              120B.04, subd. 1
140.11                 subd. 2                       subd. 2
140.12                 subd. 3                       subd. 3
140.13                 subd. 4                       subd. 4
140.14                 subd. 5                       subd. 5
140.15                 subd. 6                       subd. 6
140.16                 subd. 7                       subd. 7
140.17                 subd. 8                       subd. 8
140.18                 subd. 8a                      subd. 9
140.19                 subd. 9                       subd. 10
140.20                 subd. 10                      subd. 11
140.21                 subd. 11                      subd. 12
140.22                 subd. 12                      subd. 13
140.23                 subd. 13                      subd. 14
140.24                 subd. 14                      subd. 15
140.25                 subd. 15                      subd. 16
140.26                 subd. 16                      subd. 17
140.27                 subd. 17                      subd. 18
140.28                 subd. 18                      subd. 19
140.29                 subd. 19                      subd. 20
140.30                 subd. 20                      subd. 21
140.31                 subd. 21                      subd. 22
140.32                 subd. 22                      subd. 23
140.33       120.172                        120B.08
140.34       120.173                        120B.09
140.35       120.181                        120B.10
140.36       120.1811                       120B.11
141.1        120.182                        120B.12
141.2        120.183                        120B.13
141.3        120.185                        120B.14
141.4        126.237                        120B.15
141.5        124.32, subd. 2b               120B.20, subd. 1
141.6                subd. 4                         subd. 2
141.7                subd. 6                         subd. 3
141.8                subd. 7                         subd. 4
141.9                subd. 8                         subd. 5
141.10               subd. 10                        subd. 6
141.11               subd. 12                        subd. 7
141.12       124.3201                       120B.21
141.13       124.321                        120B.22
141.14       124.322, subd. 1               120B.23, subd. 1
141.15                subd. 1a                       subd. 2
141.16                subd. 5                        subd. 3
141.17       124.323                        120B.24
141.18       124.90                         120B.26
141.19       120.187                        120B.30
141.20       120.188                        120B.31
141.21       120.189                        120B.32
141.22       120.190                        120B.33
141.23       126.261                        120B.40
141.24       126.262                        120B.41
141.25       126.264                        120B.42
141.26       126.265                        120B.43
141.27       126.266                        120B.44
141.28       126.267                        120B.45
141.29       126.269                        120B.46
141.30       124.273, subd. 1c              120B.47, subd. 1
141.31                subd. 1d                       subd. 2
141.32                subd. 1e                       subd. 3
141.33                subd. 1f                       subd. 4
141.34                subd. 1g                       subd. 5
141.35                subd. 3                        subd. 6
141.36                subd. 4                        subd. 7
142.1                 subd. 5                        subd. 8
142.2                 subd. 6                        subd. 9
142.3                 subd. 7                        subd. 10
142.4        124.3111                       120B.50
142.5        124.311                        120B.51
142.6        126.22, subd. 1                120B.57, subd. 1
142.7                subd. 2                         subd. 2
142.8                subd. 3                         subd. 3
142.9                subd. 3a                        subd. 4
142.10               subd. 4                         subd. 5
142.11               subd. 5                         subd. 6
142.12               subd. 6                         subd. 7
142.13               subd. 7                         subd. 8
142.14               subd. 8                         subd. 9
142.15               subd. 9                         subd. 10
142.16       126.23                         120B.58
142.17       124.225                        120B.59
142.18       126.235                        120B.61
142.19       124.573, subd. 1               120B.66, subd. 1
142.20                subd. 2                        subd. 2
142.21                subd. 2b                       subd. 3
142.22                subd. 2e                       subd. 4
142.23                subd. 2f                       subd. 5
142.24                subd. 3                        subd. 6
142.25                subd. 3a                       subd. 7
142.26                subd. 5a                       subd. 8
142.27       124.574, subd. 1               120B.67, subd. 1
142.28                subd. 2c                       subd. 2
142.29                subd. 2d                       subd. 3
142.30                subd. 2e                       subd. 4
142.31                subd. 2f                       subd. 5
142.32                subd. 2g                       subd. 6
142.33                subd. 2h                       subd. 7
142.34                subd. 5                        subd. 8
142.35                subd. 6                        subd. 9
142.36                subd. 7                        subd. 10
143.1                 subd. 9                        subd. 11
143.2        126.45                         120B.70
143.3        126.46                         120B.71
143.4        126.47                         120B.72
143.5        126.48                         120B.73
143.6        126.49, subd. 1                120B.74, subd. 1
143.7                subd. 2                         subd. 2
143.8                subd. 2a                        subd. 3
143.9                subd. 3                         subd. 4
143.10               subd. 4                         subd. 5
143.11               subd. 5                         subd. 6
143.12               subd. 6                         subd. 7
143.13               subd. 7                         subd. 8
143.14               subd. 8                         subd. 9
143.15       126.50                         120B.75
143.16       126.501                        120B.76
143.17       126.51, subd. 1                120B.77, subd. 1
143.18               subd. 1a                        subd. 2
143.19               subd. 2                         subd. 3
143.20               subd. 4                         subd. 4
143.21       126.52, subd. 5                120B.78, subd. 1
143.22               subd. 8                         subd. 2
143.23               subd. 9                         subd. 3
143.24       126.531                        120B.79
143.25       126.54                         120B.80
143.26       126.55                         120B.81
143.27       124.86                         120B.82
143.28       124.48, subd. 1                120B.83, subd. 1
143.29               subd. 3                         subd. 2
143.30       124.481                        120B.84
143.31       126.43                         120B.86
143.32       124.315                        120B.88
143.33       124.227                        120B.89
143.34       120.064, subd. 1               129B.90, subd. 1
143.35                subd. 2                        subd. 2
143.36                subd. 3                        subd. 3
144.1                 subd. 4                        subd. 4
144.2                 subd. 4a                       subd. 5
144.3                 subd. 5                        subd. 6
144.4                 subd. 7                        subd. 7
144.5                 subd. 8                        subd. 8
144.6                 subd. 9                        subd. 9
144.7                 subd. 10                       subd. 10
144.8                 subd. 11                       subd. 11
144.9                 subd. 12                       subd. 12
144.10                subd. 13                       subd. 13
144.11                subd. 14                       subd. 14
144.12                subd. 14a                      subd. 15
144.13                subd. 15                       subd. 16
144.14                subd. 16                       subd. 17
144.15                subd. 17                       subd. 18
144.16                subd. 18                       subd. 19
144.17                subd. 19                       subd. 20
144.18                subd. 20                       subd. 21
144.19                subd. 20a                      subd. 22
144.20                subd. 21                       subd. 23
144.21                subd. 22                       subd. 24
144.22                subd. 23                       subd. 25
144.23                subd. 24                       subd. 26
144.24       124.248, subd. 1               120B.91, subd. 1
144.25                subd. 1a                       subd. 2
144.26                subd. 2                        subd. 3
144.27                subd. 2a                       subd. 4
144.28                subd. 3                        subd. 5
144.29                subd. 4                        subd. 6
144.30                subd. 5                        subd. 7
144.31                subd. 6                        subd. 8
144.32       126.239                        120B.92
144.33       123.3513                       120B.93
144.34       123.3514, subd. 1              120B.94, subd. 1
144.35                 subd. 2                       subd. 2
144.36                 subd. 3                       subd. 3
145.1                  subd. 3a                      subd. 4
145.2                  subd. 4                       subd. 5
145.3                  subd. 4a                      subd. 6
145.4                  subd. 4b                      subd. 7
145.5                  subd. 4c                      subd. 8
145.6                  subd. 4d                      subd. 9
145.7                  subd. 4e                      subd. 10
145.8                  subd. 5                       subd. 11
145.9                  subd. 6                       subd. 12
145.10                 subd. 6a                      subd. 13
145.11                 subd. 6b                      subd. 14
145.12                 subd. 6c                      subd. 15
145.13                 subd. 6d                      subd. 16
145.14                 subd. 6e                      subd. 17
145.15                 subd. 7                       subd. 18
145.16                 subd. 7a                      subd. 19
145.17                 subd. 7b                      subd. 20
145.18                 subd. 8                       subd. 21
145.19                 subd. 9                       subd. 22
145.20                 subd. 10                      subd. 23
145.21                 subd. 11                      subd. 24
145.22                 subd. 11a                     subd. 25
145.23       120.80                         120B.95
145.24       126.56, subd. 1                120B.96, subd. 1
145.25               subd. 2                         subd. 2
145.26               subd. 3                         subd. 3
145.27               subd. 4                         subd. 4
145.28               subd. 4a                        subd. 5
145.29               subd. 5                         subd. 6
145.30               subd. 6                         subd. 7
145.31               subd. 7                         subd. 8
145.32                             ARTICLE 3 
145.33                            CHAPTER 120C 
145.34                        COMMUNITY EDUCATION 
145.35     Section 1.  [120C.01] [DEFINITIONS.] 
145.36     For the purposes of this chapter, the words defined in 
146.1   section 120.02 have the same meaning. 
146.2      Sec. 2.  Minnesota Statutes 1996, section 121.201, is 
146.3   amended to read: 
146.4      121.201 [HEARING IMPAIRED EDUCATIONAL SUPPORT SERVICES.] 
146.5      Subdivision 1.  [RESPONSIBILITY OF COMMISSIONER.] The 
146.6   commissioner shall coordinate and may pay for support services 
146.7   for hearing impaired persons to assure access to educational 
146.8   opportunities.  Services may be provided to adult students who 
146.9   are hearing impaired and (a) (1) have been denied access to 
146.10  educational opportunities because of the lack of support 
146.11  services or (b) (2) are presently enrolled or (c) (3) are 
146.12  contemplating enrollment in an educational program and would 
146.13  benefit from support services.  The commissioner shall also be 
146.14  responsible for conducting in-service training for public and 
146.15  private agencies regarding the needs of hearing impaired persons 
146.16  in the adult education system.  
146.17     Subd. 2.  [SUPPORT SERVICES.] The state board may pay 
146.18  school districts or public or private community agencies for the 
146.19  following support services:  
146.20     (a) (1) interpreter services to provide translation for an 
146.21  individual or a group of students; or 
146.22     (b) (2) notetaker services to convert spoken language to 
146.23  written language when the student must maintain visual contact 
146.24  with other persons such as an interpreter or instructor.  
146.25     Subd. 3.  [PROGRAMS INCLUDED.] Support services may be 
146.26  provided for:  
146.27     (a) (1) local school district adult education programs; 
146.28     (b) (2) adult technical college programs; and 
146.29     (c) (3) avocational education programs sponsored by public 
146.30  or private community agencies.  
146.31     Sec. 3.  Minnesota Statutes 1996, section 121.203, 
146.32  subdivision 1, is amended to read: 
146.33     Subdivision 1.  [AIDS PROGRAM.] The commissioner of 
146.34  children, families, and learning, in consultation with the 
146.35  commissioner of health, shall assist districts in developing and 
146.36  implementing a program to prevent and reduce the risk of 
147.1   acquired immune deficiency syndrome.  Each district shall must 
147.2   have a program that includes at least: 
147.3      (1) planning materials, guidelines, and other technically 
147.4   accurate and updated information; 
147.5      (2) a comprehensive, technically accurate, and updated 
147.6   curriculum; 
147.7      (3) cooperation and coordination among districts and SCs; 
147.8      (4) a targeting of adolescents, especially those who may be 
147.9   at high risk of contracting AIDS, for prevention efforts; 
147.10     (5) involvement of parents and other community members; 
147.11     (6) in-service training for appropriate district staff and 
147.12  school board members; 
147.13     (7) collaboration with state agencies and organizations 
147.14  having an AIDS prevention or AIDS risk reduction program; 
147.15     (8) collaboration with local community health services, 
147.16  agencies and organizations having an AIDS prevention or AIDS 
147.17  risk reduction program; and 
147.18     (9) participation by state and local student organizations. 
147.19     The department may provide assistance at a neutral site to 
147.20  a nonpublic school participating in a district's program.  
147.21  District programs must not conflict with the health and wellness 
147.22  curriculum developed under Laws 1987, chapter 398, article 5, 
147.23  section 2, subdivision 7. 
147.24     If a district fails to develop and implement a program to 
147.25  prevent and reduce the risk of AIDS, the department shall must 
147.26  assist the SC in the region serving that district to develop or 
147.27  implement the program. 
147.28     Sec. 4.  Minnesota Statutes 1997 Supplement, section 
147.29  121.615, subdivision 2, is amended to read: 
147.30     Subd. 2.  [CREATION OF FOUNDATION.] There is created the 
147.31  Minnesota school-to-work student organization foundation.  The 
147.32  purpose of the foundation shall be is to promote vocational 
147.33  student organizations and applied leadership opportunities in 
147.34  Minnesota public and nonpublic schools through public-private 
147.35  partnerships.  The foundation shall be is a nonprofit 
147.36  organization.  The board of directors of the foundation and 
148.1   activities of the foundation are under the direction of the 
148.2   state board of education.  
148.3      Sec. 5.  Minnesota Statutes 1997 Supplement, section 
148.4   121.615, subdivision 3, is amended to read: 
148.5      Subd. 3.  [BOARD OF DIRECTORS.] The board of directors of 
148.6   the school-to-work student organization foundation shall consist 
148.7   consists of: 
148.8      (1) seven members appointed by the board of directors of 
148.9   the school-to-work student organizations and chosen so that each 
148.10  represents one of the following career areas:  agriculture, 
148.11  family and consumer sciences, service occupations, health 
148.12  occupations, marketing, business, and technical/industrial; 
148.13     (2) seven members from business, industry, and labor 
148.14  appointed by the governor to staggered terms and chosen so that 
148.15  each represents one of the following career areas:  agriculture, 
148.16  family and consumer sciences, service occupations, health 
148.17  occupations, marketing, business, and technical/industrial; 
148.18     (3) five students or alumni of school-to-work student 
148.19  organizations representing diverse career areas, three from 
148.20  secondary student organizations, and two from post-secondary 
148.21  student organizations.  The students or alumni shall be 
148.22  appointed by the criteria and process agreed upon by the 
148.23  executive directors of the student-to-work organizations; and 
148.24     (4) four members from education appointed by the governor 
148.25  to staggered terms and chosen so that each represents one of the 
148.26  following groups:  school district level administrators, 
148.27  secondary school administrators, middle school administrators, 
148.28  and post-secondary administrators. 
148.29     Executive directors of vocational education student 
148.30  organizations are ex officio, nonvoting members of the board. 
148.31     Sec. 6.  Minnesota Statutes 1997 Supplement, section 
148.32  121.615, subdivision 9, is amended to read: 
148.33     Subd. 9.  [PRIVATE FUNDING.] The foundation shall must seek 
148.34  private resources to supplement the available public money.  
148.35  Individuals, businesses, and other organizations may contribute 
148.36  to the foundation in any manner specified by the board of 
149.1   directors.  All money received shall be administered by the 
149.2   board of directors. 
149.3      Sec. 7.  Minnesota Statutes 1997 Supplement, section 
149.4   121.615, subdivision 10, is amended to read: 
149.5      Subd. 10.  [REPORT.] The board of directors of the 
149.6   foundation shall must submit an annual report on the progress of 
149.7   its activities to the state board of education and to the board 
149.8   of trustees of the Minnesota state colleges and universities.  
149.9   The annual report shall contain a financial report for the 
149.10  preceding year.  The foundation shall submit a biennium report 
149.11  to the legislature before February 15, in the odd-numbered year. 
149.12     Sec. 8.  Minnesota Statutes 1996, section 121.615, 
149.13  subdivision 11, is amended to read: 
149.14     Subd. 11.  [APPROPRIATION.] There is annually appropriated 
149.15  to the foundation All the amounts received by the foundation 
149.16  pursuant to this section are annually appropriated to the 
149.17  foundation. 
149.18     Sec. 9.  Minnesota Statutes 1996, section 121.704, is 
149.19  amended to read: 
149.20     121.704 [YOUTH WORKS PROGRAM.] 
149.21     The youth works program is established to fulfill the 
149.22  purposes of section 121.701.  The youth works program shall must 
149.23  supplement existing programs and services.  The program shall 
149.24  must not displace existing programs and services, existing 
149.25  funding of programs or services, or existing employment and 
149.26  employment opportunities.  No eligible organization may 
149.27  terminate, layoff, or reduce the hours of work of an employee to 
149.28  place or hire a program participant.  No eligible organization 
149.29  may place or hire an individual for a project if an employee is 
149.30  on layoff from the same or a substantially equivalent position. 
149.31     Sec. 10.  Minnesota Statutes 1996, section 121.705, 
149.32  subdivision 2, is amended to read: 
149.33     Subd. 2.  [GRANT AUTHORITY.] The commission and, beginning 
149.34  January 1, 1997, the council shall must use any state 
149.35  appropriation and any available federal funds, including any 
149.36  grant received under federal law, to award grants to establish 
150.1   programs for youth works meeting the requirements of section 
150.2   121.706.  At least one grant each must be available for a 
150.3   metropolitan proposal, a rural proposal, and a statewide 
150.4   proposal.  If a portion of the suburban metropolitan area is not 
150.5   included in the metropolitan grant proposal, the statewide grant 
150.6   proposal must incorporate at least one suburban metropolitan 
150.7   area.  In awarding grants, the commission and, beginning January 
150.8   1, 1997, the council may select at least one residential 
150.9   proposal and one nonresidential proposal, provided the proposals 
150.10  meet or exceed the criteria in section 121.706. 
150.11     Sec. 11.  Minnesota Statutes 1996, section 121.706, is 
150.12  amended to read: 
150.13     121.706 [GRANT APPLICATIONS.] 
150.14     Subdivision 1.  [APPLICATIONS REQUIRED.] An organization 
150.15  seeking federal or state grant money under sections 121.704 to 
150.16  121.709 shall prepare and submit to the commission and, 
150.17  beginning January 1, 1997, the council an application that meets 
150.18  the requirements of this section.  The commission and, beginning 
150.19  January 1, 1997, the council shall must develop, and the 
150.20  applying organizations shall must comply with, the form and 
150.21  manner of the application. 
150.22     Subd. 2.  [APPLICATION CONTENT.] An applicant on its 
150.23  application shall must: 
150.24     (1) propose a program to provide participants the 
150.25  opportunity to perform community service to meet specific unmet 
150.26  community needs, and participate in classroom, work-based, and 
150.27  service-learning; 
150.28     (2) assess the community's unmet educational, human, 
150.29  environmental, and public safety needs, the resources and 
150.30  programs available for meeting those needs, and how young people 
150.31  participated in assessing community needs; 
150.32     (3) describe the educational component of the program, 
150.33  including classroom hours per week, classroom time for 
150.34  participants to reflect on the program experience, and 
150.35  anticipated academic outcomes related to the service experience; 
150.36     (4) describe the work to be performed, the ratio of youth 
151.1   participants to crew leaders and mentors, and the expectations 
151.2   and qualifications for crew leaders and mentors; 
151.3      (5) describe local funds or resources available to meet the 
151.4   match requirements of section 121.709; 
151.5      (6) describe any funds available for the program from 
151.6   sources other than the requested grant; 
151.7      (7) describe any agreements with local businesses to 
151.8   provide participants with work-learning opportunities and 
151.9   mentors; 
151.10     (8) describe any agreement with local post-secondary 
151.11  educational institutions to offer participants course credits 
151.12  for their community service-learning experience; 
151.13     (9) describe any agreement with a local high school or an 
151.14  alternative learning center to provide remedial education, 
151.15  credit for community service work and work-based learning, or 
151.16  graduate equivalency degrees; 
151.17     (10) describe any pay for service or other program delivery 
151.18  mechanism that will provide reimbursement for benefits conferred 
151.19  or recover costs of services participants perform; 
151.20     (11) describe how local resources will be used to provide 
151.21  support and assistance for participants to encourage them to 
151.22  continue with the program, fulfill the terms of the contract, 
151.23  and remain eligible for any postservice benefit; 
151.24     (12) describe the arbitration mechanism for dispute 
151.25  resolution required under section 121.707, subdivision 2; 
151.26     (13) describe involvement of community leaders in 
151.27  developing broad-based support for the program; 
151.28     (14) describe the consultation and sign-off process to be 
151.29  used with any local labor organization representing employees in 
151.30  the area engaged in work similar to that proposed for the 
151.31  program to ensure that no current employees or available 
151.32  employment positions will be displaced by program participants; 
151.33     (15) certify to the commission and, beginning January 1, 
151.34  1997, the council, and to any certified bargaining 
151.35  representatives representing employees of the applying 
151.36  organization that the project will not decrease employment 
152.1   opportunities that would be available without the project; will 
152.2   not displace current employees including any partial 
152.3   displacement in the form of reduced hours of work other than 
152.4   overtime, wages, employment benefits, or regular seasonal work; 
152.5   will not impair existing labor agreements; and will not result 
152.6   in the substitution of project funding for preexisting funds or 
152.7   sources of funds for ongoing work; 
152.8      (16) describe the length of the required service period, 
152.9   which may not be less than six months or more than two years, a 
152.10  method to incorporate a participant's readiness to advance or 
152.11  need for postservice financial assistance into individual 
152.12  service requirements, and any opportunity for participating part 
152.13  time or in another program; 
152.14     (17) describe a program evaluation plan that contains 
152.15  cost-effectiveness measures, measures of participant success 
152.16  including educational accomplishments, job placements, community 
152.17  contributions, and ongoing volunteer activities, outcome 
152.18  measures based on a preprogram and postprogram survey of 
152.19  community rates of arrest, incarceration, teenage pregnancy, and 
152.20  other indicators of youth in trouble, and a list of local 
152.21  resources dedicated to reducing these rates; 
152.22     (18) describe a three-year financial plan for maintaining 
152.23  the program; 
152.24     (19) describe the role of local youth in developing all 
152.25  aspects of the grant proposal; and 
152.26     (20) describe the process by which the local private 
152.27  industry council participated in, and reviewed the grant 
152.28  application. 
152.29     Sec. 12.  Minnesota Statutes 1996, section 121.707, 
152.30  subdivision 3, is amended to read: 
152.31     Subd. 3.  [POSTSERVICE BENEFIT.] (a) Each eligible 
152.32  organization shall must agree to provide to every participant 
152.33  who fulfills the terms of a contract under section 121.707, 
152.34  subdivision 2, a nontransferable postservice benefit.  The 
152.35  benefit must be not less than $4,725 per year of full-time 
152.36  service or prorated for part-time service or for partial service 
153.1   of at least 900 hours.  Upon signing a contract under section 
153.2   121.707, subdivision 2, each eligible organization shall must 
153.3   deposit funds to cover the full amount of postservice benefits 
153.4   obligated, except for national education awards that are 
153.5   deposited in the national service trust fund.  Funds encumbered 
153.6   in fiscal years 1994 and 1995 for postservice benefits shall 
153.7   must be available until the participants for whom the funds were 
153.8   encumbered are no longer eligible to draw benefits.  
153.9      (b) Nothing in this subdivision prevents a grantee 
153.10  organization from using funds from nonfederal or nonstate 
153.11  sources to increase the value of postservice benefits above the 
153.12  value described in paragraph (a). 
153.13     (c) The higher education services office shall must 
153.14  establish an account for depositing funds for postservice 
153.15  benefits received from eligible organizations.  If a participant 
153.16  does not complete the term of service or, upon successful 
153.17  completion of the program, does not use a postservice benefit 
153.18  according to subdivision 4 within seven years, the amount of the 
153.19  postservice benefit shall must be refunded to the eligible 
153.20  organization or, at the organization's discretion, dedicated to 
153.21  another eligible participant.  Interest earned on funds 
153.22  deposited in the postservice benefit account is appropriated to 
153.23  the higher education services office for the costs of 
153.24  administering the postservice benefits accounts.  
153.25     (d) The state shall must provide an additional postservice 
153.26  benefit to any participant who successfully completes the 
153.27  program.  The benefit must be a credit of five points to be 
153.28  added to the competitive open rating of a participant who 
153.29  obtains a passing grade on a civil service examination under 
153.30  chapter 43A.  The benefit is available for five years after 
153.31  completing the community service. 
153.32     Sec. 13.  Minnesota Statutes 1996, section 121.707, 
153.33  subdivision 4, is amended to read: 
153.34     Subd. 4.  [USES OF POSTSERVICE BENEFITS.] (a) A postservice 
153.35  benefit for a participant provided under subdivision 3, 
153.36  paragraph (a), (b), or (c), must be available for seven years 
154.1   after completing the program and may only be used for: 
154.2      (1) paying a student loan; 
154.3      (2) costs of attending an institution of higher education; 
154.4   or 
154.5      (3) expenses incurred by a student in an approved youth 
154.6   apprenticeship program under chapter 126B, or in a registered 
154.7   apprenticeship program approved by the department of labor and 
154.8   industry. 
154.9   Financial assistance provided under this subdivision must be in 
154.10  the form of vendor payments whenever possible.  Any postservice 
154.11  benefits provided by federal funds or vouchers may be used as a 
154.12  downpayment on, or closing costs for, purchasing a first home. 
154.13     (b) Postservice benefits are to be used to develop skills 
154.14  required in occupations where numbers of jobs are likely to 
154.15  increase.  The commission, in consultation with the workforce 
154.16  development council, and beginning January 1, 1997, the 
154.17  workforce development council, shall must determine how the 
154.18  benefits may be used in order to best prepare participants with 
154.19  skills that build on their service-learning and equip them for 
154.20  meaningful employment. 
154.21     (c) The postservice benefit shall must not be included in 
154.22  determining financial need when establishing eligibility or 
154.23  award amounts for financial assistance programs under chapter 
154.24  136A. 
154.25     Sec. 14.  Minnesota Statutes 1996, section 121.707, 
154.26  subdivision 5, is amended to read: 
154.27     Subd. 5.  [LIVING ALLOWANCE.] (a) A participant in a 
154.28  full-time community service program shall receive a monthly 
154.29  stipend of not less than $500.  An eligible organization may 
154.30  provide participants with additional amounts from nonstate 
154.31  sources.  The amount of the living allowance may be prorated for 
154.32  part-time participants. 
154.33     (b) Nothing in this subdivision requires an existing 
154.34  program to decrease any stipend, salary, or living allowance 
154.35  provided to a participant under the program. 
154.36     (c) In addition to the living allowance provided under 
155.1   paragraph (a), a grantee organization shall provide health and 
155.2   child care coverage to each participant in a full-time youth 
155.3   works program who does not otherwise have access to health or 
155.4   child care coverage.  The state shall must include the cost of 
155.5   group health and child care coverage in the grant to the 
155.6   eligible organization. 
155.7      Sec. 15.  Minnesota Statutes 1996, section 121.707, 
155.8   subdivision 6, is amended to read: 
155.9      Subd. 6.  [PROGRAM TRAINING.] (a) The commission and, 
155.10  beginning January 1, 1997, the council shall must, within 
155.11  available resources, ensure an opportunity for each participant 
155.12  to have three weeks of training in a residential setting.  If 
155.13  offered, each training session must: 
155.14     (1) orient each participant in the nature, philosophy, and 
155.15  purpose of the program; 
155.16     (2) build an ethic of community service through general 
155.17  community service training; and 
155.18     (3) provide additional training as it determines necessary. 
155.19     (b) Each grantee organization shall also train participants 
155.20  in skills relevant to the community service opportunity. 
155.21     Sec. 16.  Minnesota Statutes 1996, section 121.707, 
155.22  subdivision 7, is amended to read: 
155.23     Subd. 7.  [TRAINING AND EDUCATION REQUIREMENTS.] Each 
155.24  grantee organization shall must assess the educational level of 
155.25  each entering participant.  Each grantee shall work to enhance 
155.26  the educational skills of each participant.  The commission and, 
155.27  beginning January 1, 1997, the council may coordinate or 
155.28  contract with educational institutions or other providers for 
155.29  educational services and evaluation.  All grantees shall give 
155.30  priority to educating and training participants who do not have 
155.31  a high school diploma or its equivalent, or who cannot afford 
155.32  post-secondary training and education. 
155.33     Sec. 17.  Minnesota Statutes 1996, section 121.708, is 
155.34  amended to read: 
155.35     121.708 [PRIORITY.] 
155.36     The commission and, beginning January 1, 1997, the council 
156.1   shall must give priority to an eligible organization proposing a 
156.2   program that meets the goals of sections 121.704 to 121.707, and 
156.3   that: 
156.4      (1) involves youth in a meaningful way in all stages of the 
156.5   program, including assessing community needs, preparing the 
156.6   application, and assuming postservice leadership and mentoring 
156.7   responsibilities; 
156.8      (2) serves a community with significant unmet needs; 
156.9      (3) provides an approach that is most likely to reduce 
156.10  arrest rates, incarceration rates, teenage pregnancy, and other 
156.11  indicators of troubled youth; 
156.12     (4) builds linkages with existing, successful programs; and 
156.13     (5) can be operational quickly. 
156.14     Sec. 18.  Minnesota Statutes 1996, section 121.710, 
156.15  subdivision 2, is amended to read: 
156.16     Subd. 2.  [INTERIM REPORT.] The commission and, beginning 
156.17  January 1, 1997, the council shall must report semiannually to 
156.18  the legislature with interim recommendations to change the 
156.19  program. 
156.20     Sec. 19.  Minnesota Statutes 1996, section 121.710, 
156.21  subdivision 3, is amended to read: 
156.22     Subd. 3.  [FINAL REPORT.] The commission and, beginning 
156.23  January 1, 1997, the council shall must present a final report 
156.24  to the legislature by January 1, 1998, summarizing grantee 
156.25  evaluations, reporting on individual participants and 
156.26  participating grantee organizations, and recommending any 
156.27  changes to improve or expand the program. 
156.28     Sec. 20.  Minnesota Statutes 1997 Supplement, section 
156.29  121.831, subdivision 3, is amended to read: 
156.30     Subd. 3.  [PROGRAM ELIGIBILITY.] A learning readiness 
156.31  program shall must include the following: 
156.32     (1) a comprehensive plan to anticipate and meet the needs 
156.33  of participating families by coordinating existing social 
156.34  services programs and by fostering collaboration among agencies 
156.35  or other community-based organizations and programs that provide 
156.36  a full range of flexible, family-focused services to families 
157.1   with young children; 
157.2      (2) a development and learning component to help children 
157.3   develop appropriate social, cognitive, and physical skills, and 
157.4   emotional well-being; 
157.5      (3) health referral services to address children's medical, 
157.6   dental, mental health, and nutritional needs; 
157.7      (4) a nutrition component to meet children's daily 
157.8   nutritional needs; 
157.9      (5) parents' involvement in meeting children's educational, 
157.10  health, social service, and other needs; 
157.11     (6) community outreach to ensure participation by families 
157.12  who represent the racial, cultural, and economic diversity of 
157.13  the community; 
157.14     (7) community-based staff and program resources, including 
157.15  interpreters, that reflect the racial and ethnic characteristics 
157.16  of the children participating in the program; and 
157.17     (8) a literacy component to ensure that the literacy needs 
157.18  of parents are addressed through referral to and cooperation 
157.19  with adult basic education programs and other adult literacy 
157.20  programs. 
157.21     Sec. 21.  Minnesota Statutes 1996, section 121.831, 
157.22  subdivision 6, is amended to read: 
157.23     Subd. 6.  [COORDINATION WITH OTHER PROVIDERS.] (a) The 
157.24  district shall must coordinate the learning readiness program 
157.25  with existing community-based social services providers and 
157.26  foster collaboration among agencies and other community-based 
157.27  organizations and programs that provide flexible, family-focused 
157.28  services to families with children.  The district shall must 
157.29  actively encourage greater sharing of responsibility and 
157.30  accountability among service providers and facilitate children's 
157.31  transition between programs.  
157.32     (b) To the extent possible, resources shall must follow the 
157.33  children so that children receive appropriate services in a 
157.34  stable environment and are not moved from one program location 
157.35  to another.  Where geographically feasible, the district shall 
157.36  must actively promote colocating of services for children and 
158.1   their families. 
158.2      Sec. 22.  Minnesota Statutes 1996, section 121.831, 
158.3   subdivision 7, is amended to read: 
158.4      Subd. 7.  [ADVISORY COUNCIL.] Each learning readiness 
158.5   program shall must have an advisory council composed of members 
158.6   of existing early education-related boards, parents of 
158.7   participating children, child care providers, culturally 
158.8   specific service organizations, local resource and referral 
158.9   agencies, and representatives of early childhood service 
158.10  providers.  The council shall must advise the school board in 
158.11  creating and administering the program and shall must monitor 
158.12  the progress of the program.  The council shall must ensure that 
158.13  children at greatest risk receive appropriate services.  If 
158.14  the school board is unable to appoint to the advisory council 
158.15  members of existing early education-related boards, it shall 
158.16  must appoint parents of children enrolled in the program who 
158.17  represent the racial, cultural, and economic diversity of the 
158.18  district and representatives of early childhood service 
158.19  providers as representatives to an existing advisory council. 
158.20     Sec. 23.  Minnesota Statutes 1996, section 121.831, 
158.21  subdivision 8, is amended to read: 
158.22     Subd. 8.  [PRIORITY CHILDREN.] The district shall must give 
158.23  greatest priority to providing services to eligible children 
158.24  identified, through a means such as the early childhood 
158.25  screening process, as being developmentally disadvantaged or 
158.26  experiencing risk factors that could impede their learning 
158.27  readiness. 
158.28     Sec. 24.  Minnesota Statutes 1996, section 121.831, 
158.29  subdivision 9, is amended to read: 
158.30     Subd. 9.  [CHILD RECORDS.] (a) A record of a child's 
158.31  progress and development shall must be maintained in the child's 
158.32  cumulative record while enrolled in the learning readiness 
158.33  program.  The cumulative record shall must be used for the 
158.34  purpose of planning activities to suit individual needs and 
158.35  shall become part of the child's permanent record.  The 
158.36  cumulative record is private data under chapter 13.  Information 
159.1   in the record may be disseminated to an educator or service 
159.2   provider only to the extent that that person has a need to know 
159.3   the information.  
159.4      (b) An educator or service provider may transmit 
159.5   information in the child's cumulative record to an educator or 
159.6   service provider in another program for young children when the 
159.7   child applies to enroll in that other program. 
159.8      Sec. 25.  Minnesota Statutes 1996, section 121.831, 
159.9   subdivision 10, is amended to read: 
159.10     Subd. 10.  [SUPERVISION.] A program provided by a school 
159.11  board shall must be supervised by a licensed early childhood 
159.12  teacher, a certified early childhood educator, or a licensed 
159.13  parent educator.  A program provided according to a contract 
159.14  between a school district and a nonprofit organization or 
159.15  another private organization shall must be supervised and 
159.16  staffed according to the terms of the contract.  
159.17     Sec. 26.  Minnesota Statutes 1996, section 121.831, 
159.18  subdivision 11, is amended to read: 
159.19     Subd. 11.  [DISTRICT STANDARDS.] The school board of the 
159.20  district shall must develop standards for the learning readiness 
159.21  program that reflect the eligibility criteria in subdivision 3.  
159.22  The board shall must consider including in the standards the 
159.23  program characteristics in subdivision 4. 
159.24     Sec. 27.  Minnesota Statutes 1996, section 121.831, 
159.25  subdivision 12, is amended to read: 
159.26     Subd. 12.  [PROGRAM FEES.] A district may adopt a sliding 
159.27  fee schedule based on a family's income but shall must waive a 
159.28  fee for a participant unable to pay.  The fees charged must be 
159.29  designed to enable eligible children of all socioeconomic levels 
159.30  to participate in the program. 
159.31     Sec. 28.  Minnesota Statutes 1996, section 121.835, 
159.32  subdivision 4, is amended to read: 
159.33     Subd. 4.  [DISTRIBUTION.] The commissioner of children, 
159.34  families, and learning shall give priority to funding existing 
159.35  programs. 
159.36     To the extent possible, the commissioner shall award grants 
160.1   to applicants with experience or demonstrated ability in 
160.2   providing comprehensive, multidisciplinary, community-based 
160.3   programs with objectives similar to those listed in subdivision 
160.4   2, or in providing other human services or social services 
160.5   programs using a multidisciplinary, community-based approach. 
160.6      Sec. 29.  Minnesota Statutes 1996, section 121.835, 
160.7   subdivision 5, is amended to read: 
160.8      Subd. 5.  [APPLICATIONS.] Each grant application must 
160.9   propose a five-year program designed to accomplish the purposes 
160.10  of this section.  The application must be submitted on forms 
160.11  provided by the commissioner of children, families, and 
160.12  learning.  The grant application must include: 
160.13     (1) a description of the specific neighborhoods that will 
160.14  be served under the program and the name, address, and a 
160.15  description of each community agency or agencies with which the 
160.16  applicant intends to contract to provide services using grant 
160.17  money; 
160.18     (2) a letter of intent from each community agency 
160.19  identified in clause (1) that indicates the agency's willingness 
160.20  to participate in the program and approval of the proposed 
160.21  program structure and components; 
160.22     (3) a detailed description of the structure and components 
160.23  of the proposed program and an explanation of how each component 
160.24  will contribute to accomplishing the purposes of this section; 
160.25     (4) a description of how public and private resources, 
160.26  including schools, health care facilities, government agencies, 
160.27  neighborhood organizations, and other resources, will be 
160.28  coordinated and made accessible to families in target 
160.29  neighborhoods, including letters of intent from public and 
160.30  private agencies indicating their willingness to cooperate with 
160.31  the program; 
160.32     (5) a detailed, proposed budget that demonstrates the 
160.33  ability of the program to accomplish the purposes of this 
160.34  section using grant money and other available resources, 
160.35  including funding sources other than a grant; and 
160.36     (6) a comprehensive evaluation plan for measuring the 
161.1   success of the program in meeting the objectives of the overall 
161.2   grant program and the individual grant project, including an 
161.3   assessment of the impact of the program in terms of at least 
161.4   three of the following criteria:  
161.5      (i) utilization rates of community services; 
161.6      (ii) availability of support systems for families; 
161.7      (iii) birth weights of newborn babies; 
161.8      (iv) child accident rates; 
161.9      (v) utilization rates of prenatal care; 
161.10     (vi) reported rates of child abuse; 
161.11     (vii) rates of health screening and evaluation; and 
161.12     (viii) school readiness of way to grow participants 
161.13  compared to nonparticipants. 
161.14     Sec. 30.  Minnesota Statutes 1996, section 121.835, 
161.15  subdivision 7, is amended to read: 
161.16     Subd. 7.  [ADVISORY COMMITTEES.] The commissioner of 
161.17  children, families, and learning shall establish a program 
161.18  advisory committee consisting of persons knowledgeable in child 
161.19  development, child health, and family services, who reflect the 
161.20  geographic, cultural, racial, and ethnic diversity of the state; 
161.21  and representatives of the commissioners of children, families, 
161.22  and learning, human services, and health.  This program advisory 
161.23  committee shall must review grant applications, assist in 
161.24  distribution of the grants, and monitor progress of the way to 
161.25  grow/school readiness program.  Each grantee must establish a 
161.26  program advisory board of 12 or more members to advise the 
161.27  grantee on program design, operation, and evaluation.  The board 
161.28  must include representatives of local units of government and 
161.29  representatives of the project area who reflect the geographic, 
161.30  cultural, racial, and ethnic diversity of that community.  
161.31     Sec. 31.  Minnesota Statutes 1996, section 121.835, 
161.32  subdivision 8, is amended to read: 
161.33     Subd. 8.  [REPORT.] The advisory committee shall must 
161.34  report to the education committee of the legislature by January 
161.35  15, 1993, on the evaluation required in subdivision 5, clause 
161.36  (6), and shall make recommendations for establishing successful 
162.1   way to grow programs in unserved areas of the state. 
162.2      Sec. 32.  Minnesota Statutes 1996, section 121.8355, 
162.3   subdivision 2, is amended to read: 
162.4      Subd. 2.  [DUTIES.] (a) Each collaborative shall must: 
162.5      (1) establish, with assistance from families and service 
162.6   providers, clear goals for addressing the health, developmental, 
162.7   educational, and family-related needs of children and youth and 
162.8   use outcome-based indicators to measure progress toward 
162.9   achieving those goals; 
162.10     (2) establish a comprehensive planning process that 
162.11  involves all sectors of the community, identifies local needs, 
162.12  and surveys existing local programs; 
162.13     (3) integrate service funding sources so that children and 
162.14  their families obtain services from providers best able to 
162.15  anticipate and meet their needs; 
162.16     (4) coordinate families' services to avoid duplicative and 
162.17  overlapping assessment and intake procedures; 
162.18     (5) focus primarily on family-centered services; 
162.19     (6) encourage parents and volunteers to actively 
162.20  participate by using flexible scheduling and actively recruiting 
162.21  volunteers; 
162.22     (7) provide services in locations that are readily 
162.23  accessible to children and families; 
162.24     (8) use new or reallocated funds to improve or enhance 
162.25  services provided to children and their families; 
162.26     (9) identify federal, state, and local institutional 
162.27  barriers to coordinating services and suggest ways to remove 
162.28  these barriers; and 
162.29     (10) design and implement an integrated local service 
162.30  delivery system for children and their families that coordinates 
162.31  services across agencies and is client centered.  The delivery 
162.32  system shall provide a continuum of services for children birth 
162.33  to age 18, or birth through age 21 for individuals with 
162.34  disabilities.  The collaborative shall describe the community 
162.35  plan for serving pregnant women and children from birth to age 
162.36  six. 
163.1      (b) The outcome-based indicators developed in paragraph 
163.2   (a), clause (1), may include the number of low birth weight 
163.3   babies, the infant mortality rate, the number of children who 
163.4   are adequately immunized and healthy, require out-of-home 
163.5   placement or long-term special education services, and the 
163.6   number of minor parents. 
163.7      Sec. 33.  Minnesota Statutes 1996, section 121.8355, 
163.8   subdivision 3, is amended to read: 
163.9      Subd. 3.  [INTEGRATED LOCAL SERVICE DELIVERY SYSTEM.] A 
163.10  collaborative shall must design an integrated local service 
163.11  delivery system that coordinates funding streams and the 
163.12  delivery of services between existing agencies.  The integrated 
163.13  local service delivery system may: 
163.14     (1) improve outreach and early identification of children 
163.15  and families in need of services and intervene across service 
163.16  systems on behalf of families; 
163.17     (2) offer an inclusive service system that supports all 
163.18  families within a community; 
163.19     (3) coordinate services that eliminate the need to match 
163.20  funding streams, provider eligibilities, or clients with 
163.21  multiple providers; 
163.22     (4) improve access to services by coordinating 
163.23  transportation services; 
163.24     (5) provide initial outreach to all new mothers and 
163.25  periodic family visits to children who are potentially at risk; 
163.26     (6) coordinate assessment across systems to determine which 
163.27  children and families need coordinated multiagency services and 
163.28  supplemental services; 
163.29     (7) include multiagency service plans and coordinate 
163.30  unitary case management; and 
163.31     (8) integrate funding of services. 
163.32     Sec. 34.  Minnesota Statutes 1996, section 121.8355, 
163.33  subdivision 5, is amended to read: 
163.34     Subd. 5.  [LOCAL PLANS.] The collaborative plan shall must 
163.35  describe how the collaborative will carry out the duties and 
163.36  implement the integrated local services delivery system required 
164.1   under this section.  The plan shall must include a list of the 
164.2   collaborative participants, a copy of the agreement required 
164.3   under subdivision 1, the amount and source of resources each 
164.4   participant will contribute to the integrated fund, and methods 
164.5   for increasing local participation in the collaborative, 
164.6   involving parents and other community members in implementing 
164.7   and operating the collaborative, and providing effective 
164.8   outreach services to all families with young children in the 
164.9   community.  The plan shall must also include specific goals that 
164.10  the collaborative intends to achieve and methods for objectively 
164.11  measuring progress toward meeting the goals.  
164.12     Sec. 35.  Minnesota Statutes 1996, section 121.8355, 
164.13  subdivision 6, is amended to read: 
164.14     Subd. 6.  [PLAN APPROVAL BY THE CHILDREN'S CABINET.] (a) 
164.15  The children's cabinet shall must approve local plans for 
164.16  collaboratives.  In approving local plans, the children's 
164.17  cabinet shall must give highest priority to a plan that provides:
164.18     (1) early intervention and family outreach services; 
164.19     (2) family visitation services; 
164.20     (3) a continuum of services for children from birth to age 
164.21  18; 
164.22     (4) family preservation services; 
164.23     (5) culturally sensitive approaches for delivering services 
164.24  and utilizing culturally specific organizations; 
164.25     (6) clearly defined outcomes and valid methods of 
164.26  assessment; 
164.27     (7) effective service coordination; 
164.28     (8) participation by the maximum number of jurisdictions 
164.29  and local, county, and state funding sources; 
164.30     (9) integrated community service providers and local 
164.31  resources; 
164.32     (10) integrated transportation services; 
164.33     (11) integrated housing services; and 
164.34     (12) coordinated services that include a children's mental 
164.35  health collaborative authorized by law. 
164.36     (b) The children's cabinet shall must ensure that the 
165.1   collaboratives established under this section do not conflict 
165.2   with any state or federal policy or program and do not 
165.3   negatively impact the state budget. 
165.4      Sec. 36.  Minnesota Statutes 1996, section 121.88, 
165.5   subdivision 2, is amended to read: 
165.6      Subd. 2.  [ADVISORY COUNCIL.] Each board shall must provide 
165.7   for an advisory council to consist of members who represent:  
165.8   various service organizations; churches; public and nonpublic 
165.9   schools; local government including elected officials; public 
165.10  and private nonprofit agencies serving youth and families; 
165.11  parents; youth; park, recreation or forestry services of 
165.12  municipal or local government units located in whole or in part 
165.13  within the boundaries of the school district; and any other 
165.14  groups participating in the community education program in the 
165.15  school district. 
165.16     Sec. 37.  Minnesota Statutes 1996, section 121.88, 
165.17  subdivision 3, is amended to read: 
165.18     Subd. 3.  [COOPERATION.] The council shall must function in 
165.19  cooperation with the community education director in an advisory 
165.20  capacity in the interest of promoting the goals and objectives 
165.21  of sections 121.85 to 121.88.  
165.22     Sec. 38.  Minnesota Statutes 1996, section 121.88, 
165.23  subdivision 4, is amended to read: 
165.24     Subd. 4.  [DUPLICATION POLICY.] Each council shall must 
165.25  adopt a policy to reduce and eliminate program duplication 
165.26  within the district. 
165.27     Sec. 39.  Minnesota Statutes 1996, section 121.88, 
165.28  subdivision 6, is amended to read: 
165.29     Subd. 6.  [PROGRAMS FOR ADULTS WITH DISABILITIES.] A school 
165.30  board may offer, as part of a community education program, a 
165.31  program for adults with disabilities.  Boards are encouraged to 
165.32  offer programs cooperatively with other districts and 
165.33  organizations.  Programs may not be limited to district 
165.34  residents.  Programs may include: 
165.35     (1) services enabling the adults to participate in 
165.36  community activities or community education classes; 
166.1      (2) classes specifically for adults with disabilities; 
166.2      (3) outreach activities to identify adults needing service; 
166.3      (4) activities to increase public awareness of the roles of 
166.4   people with disabilities; 
166.5      (5) activities to enhance the role of people with 
166.6   disabilities in the community; and 
166.7      (6) other direct and indirect services and activities 
166.8   benefiting adults with disabilities.  
166.9      Sec. 40.  Minnesota Statutes 1996, section 121.88, 
166.10  subdivision 7, is amended to read: 
166.11     Subd. 7.  [PROGRAM APPROVAL.] To be eligible for revenue 
166.12  for the program for adults with disabilities, a program and 
166.13  budget must receive approval from the community education 
166.14  section in the department of children, families, and learning.  
166.15  Approval may be for five years.  During that time, a school 
166.16  board must report any significant changes to the department for 
166.17  approval.  For programs offered cooperatively, the request for 
166.18  approval must include an agreement on the method by which local 
166.19  money is to be derived and distributed.  A request for approval 
166.20  must include all of the following:  
166.21     (1) characteristics of the people to be served; 
166.22     (2) description of the program services and activities; 
166.23     (3) program budget and amount of aid requested; 
166.24     (4) participation by adults with disabilities in developing 
166.25  the program; 
166.26     (5) assessment of the needs of adults with disabilities; 
166.27  and 
166.28     (6) cooperative efforts with community organizations.  
166.29     Sec. 41.  Minnesota Statutes 1996, section 121.88, 
166.30  subdivision 9, is amended to read: 
166.31     Subd. 9.  [YOUTH SERVICE PROGRAMS.] A school board may 
166.32  offer, as part of a community education program with a youth 
166.33  development program, a youth service program that provides young 
166.34  people with meaningful opportunities to become involved in their 
166.35  community, develop individual capabilities, make career 
166.36  connections, seek support networks and services, become active 
167.1   citizens, and address community needs through youth service.  
167.2   The school board may award up to one credit, or the equivalent, 
167.3   toward graduation for a pupil who completes the youth service 
167.4   requirements of the district.  The community education advisory 
167.5   council, after considering the results of the commissioner's 
167.6   study under section 121.885, subdivision 1, shall must design 
167.7   the program in cooperation with the district planning, 
167.8   evaluating and reporting committee and local organizations that 
167.9   train volunteers or need volunteers' services.  Programs must 
167.10  include: 
167.11     (1) preliminary training for pupil volunteers conducted, 
167.12  when possible, by organizations experienced in such training; 
167.13     (2) supervision of the pupil volunteers to ensure 
167.14  appropriate placement and adequate learning opportunity; 
167.15     (3) sufficient opportunity, in a positive setting for human 
167.16  development, for pupil volunteers to develop general skills in 
167.17  preparation for employment, to enhance self-esteem and 
167.18  self-worth, and to give genuine service to their community; 
167.19     (4) integration of academic learning with the service 
167.20  experience; and 
167.21     (5) integration of youth community service with elementary 
167.22  and secondary curriculum. 
167.23     Youth service projects include, but are not limited to, the 
167.24  following: 
167.25     (1) human services for the elderly, including home care and 
167.26  related services; 
167.27     (2) tutoring and mentoring; 
167.28     (3) training for and providing emergency services; 
167.29     (4) services at extended day programs; 
167.30     (5) environmental services; and 
167.31     (6) service-learning programs in which schools, including 
167.32  post-secondary schools, and employers work together with young 
167.33  people to provide them with meaningful opportunities for 
167.34  community service and with the academic and technical skills 
167.35  that employers require. 
167.36     The commissioner shall maintain a list of acceptable 
168.1   projects with a description of each project.  A project that is 
168.2   not on the list must be approved by the commissioner.  
168.3      A youth service project must have a community sponsor that 
168.4   may be a governmental unit or nonprofit organization.  To assure 
168.5   that pupils provide additional services, each sponsor must 
168.6   assure that pupil services do not displace employees or reduce 
168.7   the workload of any employee. 
168.8      The commissioner must shall assist districts in planning 
168.9   youth service programs, implementing programs, and developing 
168.10  recommendations for obtaining community sponsors.  
168.11     Sec. 42.  Minnesota Statutes 1997 Supplement, section 
168.12  121.88, subdivision 10, is amended to read: 
168.13     Subd. 10.  [EXTENDED DAY PROGRAMS.] (a) A school board may 
168.14  offer, as part of a community education program, an extended day 
168.15  program for children from kindergarten through grade 6 for the 
168.16  purpose of expanding students' learning opportunities.  A 
168.17  program must include the following: 
168.18     (1) adult supervised programs while school is not in 
168.19  session; 
168.20     (2) parental involvement in program design and direction; 
168.21     (3) partnerships with the K-12 kindergarten through grade 
168.22  12 system, and other public, private, or nonprofit entities; and 
168.23     (4) opportunities for trained secondary school pupils to 
168.24  work with younger children in a supervised setting as part of a 
168.25  community service program. 
168.26     (b) The district may charge a sliding fee based upon family 
168.27  income for extended day programs.  The district may receive 
168.28  money from other public or private sources for the extended day 
168.29  program.  The school board of the district shall must develop 
168.30  standards for school age child care programs.  Districts with 
168.31  programs in operation before July 1, 1990, must adopt standards 
168.32  before October 1, 1991.  All other districts must adopt 
168.33  standards within one year after the district first offers 
168.34  services under a program authorized by this subdivision.  The 
168.35  state board of education may not adopt rules for extended day 
168.36  programs. 
169.1      (c) The district shall maintain a separate account within 
169.2   the community services fund for all funds related to the 
169.3   extended day program. 
169.4      Sec. 43.  Minnesota Statutes 1996, section 121.882, 
169.5   subdivision 1, is amended to read: 
169.6      Subdivision 1.  [ESTABLISHMENT.] A district that provides a 
169.7   community education program under sections 121.85 to 121.88 may 
169.8   establish an early childhood family education program.  Two or 
169.9   more districts, each of which provides a community education 
169.10  program, may cooperate to jointly provide an early childhood 
169.11  family education program. 
169.12     Sec. 44.  Minnesota Statutes 1997 Supplement, section 
169.13  121.882, subdivision 2, is amended to read: 
169.14     Subd. 2.  [PROGRAM CHARACTERISTICS.] Early childhood family 
169.15  education programs are programs for children in the period of 
169.16  life from birth to kindergarten, for the parents of such 
169.17  children, and for expectant parents.  The programs may include 
169.18  the following:  
169.19     (1) programs to educate parents about the physical, mental, 
169.20  and emotional development of children; 
169.21     (2) programs to enhance the skills of parents in providing 
169.22  for their children's learning and development; 
169.23     (3) learning experiences for children and parents that 
169.24  promote children's development; 
169.25     (4) activities designed to detect children's physical, 
169.26  mental, emotional, or behavioral problems that may cause 
169.27  learning problems; 
169.28     (5) activities and materials designed to encourage 
169.29  self-esteem, skills, and behavior that prevent sexual and other 
169.30  interpersonal violence; 
169.31     (6) educational materials which may be borrowed for home 
169.32  use; 
169.33     (7) information on related community resources; 
169.34     (8) programs to prevent child abuse and neglect; 
169.35     (9) other programs or activities to improve the health, 
169.36  development, and learning readiness of children; or 
170.1      (10) activities designed to maximize development during 
170.2   infancy.  
170.3      The programs shall must not include activities for children 
170.4   that do not require substantial involvement of the children's 
170.5   parents.  The programs shall must be reviewed periodically to 
170.6   assure the instruction and materials are not racially, 
170.7   culturally, or sexually biased.  The programs shall must 
170.8   encourage parents to be aware of practices that may affect 
170.9   equitable development of children. 
170.10     Sec. 45.  Minnesota Statutes 1996, section 121.882, 
170.11  subdivision 2b, is amended to read: 
170.12     Subd. 2b.  [HOME VISITING PROGRAM.] (a) The commissioner of 
170.13  children, families, and learning shall include as part of the 
170.14  early childhood family education programs a parent education 
170.15  component to prevent child abuse and neglect.  This parent 
170.16  education component must include: 
170.17     (1) expanding statewide the home visiting component of the 
170.18  early childhood family education programs; 
170.19     (2) training parent educators, child educators, community 
170.20  outreach workers, and home visitors in the dynamics of child 
170.21  abuse and neglect and positive parenting and discipline 
170.22  practices; and 
170.23     (3) developing and disseminating education and public 
170.24  information materials that promote positive parenting skills and 
170.25  prevent child abuse and neglect. 
170.26     (b) The parent education component must: 
170.27     (1) offer to isolated or at-risk families home visiting 
170.28  parent education services that at least address parenting 
170.29  skills, a child's development and stages of growth, 
170.30  communication skills, managing stress, problem-solving skills, 
170.31  positive child discipline practices, methods of improving 
170.32  parent-child interactions and enhancing self-esteem, using 
170.33  community support services and other resources, and encouraging 
170.34  parents to have fun with and enjoy their children; 
170.35     (2) develop a risk assessment tool to determine the 
170.36  family's level of risk; 
171.1      (3) establish clear objectives and protocols for home 
171.2   visits; 
171.3      (4) determine the frequency and duration of home visits 
171.4   based on a risk-need assessment of the client, with home visits 
171.5   beginning in the second trimester of pregnancy and continuing, 
171.6   based on client need, until a child is six years old; 
171.7      (5) encourage families to make a transition from home 
171.8   visits to site-based parenting programs to build a family 
171.9   support network and reduce the effects of isolation; 
171.10     (6) develop and distribute education materials on 
171.11  preventing child abuse and neglect that may be used in home 
171.12  visiting programs and parent education classes and distributed 
171.13  to the public; 
171.14     (7) initially provide at least 40 hours of training and 
171.15  thereafter ongoing training for parent educators, child 
171.16  educators, community outreach workers, and home visitors that 
171.17  covers the dynamics of child abuse and neglect, domestic 
171.18  violence and victimization within family systems, signs of abuse 
171.19  or other indications that a child may be at risk of being abused 
171.20  or neglected, what child abuse and neglect are, how to properly 
171.21  report cases of child abuse and neglect, respect for cultural 
171.22  preferences in child rearing, what community resources, social 
171.23  service agencies, and family support activities and programs are 
171.24  available, child development and growth, parenting skills, 
171.25  positive child discipline practices, identifying stress factors 
171.26  and techniques for reducing stress, home visiting techniques, 
171.27  and risk assessment measures; 
171.28     (8) provide program services that are community-based, 
171.29  accessible, and culturally relevant; and 
171.30     (9) foster collaboration among existing agencies and 
171.31  community-based organizations that serve young children and 
171.32  their families. 
171.33     (c) Home visitors should reflect the demographic 
171.34  composition of the community the home visitor is serving to the 
171.35  extent possible.  
171.36     Sec. 46.  Minnesota Statutes 1996, section 121.882, 
172.1   subdivision 3, is amended to read: 
172.2      Subd. 3.  [SEPARATE ACCOUNTS.] The district shall must 
172.3   maintain a separate account within the community education fund 
172.4   for money for early childhood family education programs. 
172.5      Sec. 47.  Minnesota Statutes 1996, section 121.882, 
172.6   subdivision 7, is amended to read: 
172.7      Subd. 7.  [DISTRICT ADVISORY COUNCILS.] The school 
172.8   board shall must appoint an advisory council from the area in 
172.9   which the program is provided.  A majority of the council shall 
172.10  must be parents participating in the program.  The council shall 
172.11  must assist the board in developing, planning, and monitoring 
172.12  the early childhood family education program.  The council shall 
172.13  must report to the school board and the community education 
172.14  advisory council.  
172.15     Sec. 48.  Minnesota Statutes 1996, section 121.882, 
172.16  subdivision 7a, is amended to read: 
172.17     Subd. 7a.  [ALTERNATIVE COUNCIL.] A school board may direct 
172.18  the community education council, required according to section 
172.19  121.88, subdivision 2, to perform the functions of the advisory 
172.20  council for early childhood family education.  
172.21     Sec. 49.  Minnesota Statutes 1996, section 121.882, 
172.22  subdivision 8, is amended to read: 
172.23     Subd. 8.  [TEACHERS.] A school board shall must employ 
172.24  necessary qualified teachers for its early childhood family 
172.25  education programs. 
172.26     Sec. 50.  Minnesota Statutes 1996, section 121.882, 
172.27  subdivision 9, is amended to read: 
172.28     Subd. 9.  [ASSISTANCE.] The department of children, 
172.29  families, and learning shall must provide assistance to 
172.30  districts with programs described in this section.  The 
172.31  department must establish guidelines that list barriers to 
172.32  learning and development affecting children served by early 
172.33  childhood family education programs. 
172.34     Sec. 51.  Minnesota Statutes 1996, section 121.885, 
172.35  subdivision 1, is amended to read: 
172.36     Subdivision 1.  [SERVICE-LEARNING AND WORK-BASED LEARNING 
173.1   PROGRAMS STUDY.] The governor's workforce development council 
173.2   shall must assist the commissioner of children, families, and 
173.3   learning in studying how to combine community service activities 
173.4   and service-learning with work-based learning programs. 
173.5      Sec. 52.  Minnesota Statutes 1996, section 121.885, 
173.6   subdivision 4, is amended to read: 
173.7      Subd. 4.  [PROGRAMS FOLLOWING YOUTH COMMUNITY SERVICE.] (a) 
173.8   The Minnesota commission on national and community service in 
173.9   cooperation with the governor's workforce development council, 
173.10  the commissioner and the higher education services office, shall 
173.11  provide for those participants who successfully complete youth 
173.12  community service under sections 121.704 to 121.709, the 
173.13  following: 
173.14     (1) for those who have a high school diploma or its 
173.15  equivalent, an opportunity to participate in a youth 
173.16  apprenticeship program at a community or technical college; and 
173.17     (2) for those who are post-secondary students, an 
173.18  opportunity to participate in an educational program that 
173.19  supplements post-secondary courses leading to a degree or a 
173.20  statewide credential of academic and occupational proficiency. 
173.21     (b) Participants who successfully complete a youth 
173.22  community service program under sections 121.704 to 121.710 are 
173.23  eligible to receive an education voucher as provided under 
173.24  section 121.707, subdivision 4.  The voucher recipient may apply 
173.25  the voucher toward the cost of the recipient's tuition and other 
173.26  education-related expenses at a post-secondary school under 
173.27  paragraph (a). 
173.28     (c) The governor's workforce development council, in 
173.29  cooperation with the board of trustees of the Minnesota state 
173.30  colleges and universities, shall must establish a mechanism to 
173.31  transfer credit earned in a youth apprenticeship program between 
173.32  the technical colleges and other post-secondary institutions 
173.33  offering applied associate degrees. 
173.34     Sec. 53.  Minnesota Statutes 1997 Supplement, section 
173.35  123.35, subdivision 8, is amended to read:  
173.36     Subd. 8.  [EVENING SCHOOLS; ADULT AND CONTINUING 
174.1   EDUCATION.] The board may establish and maintain public evening 
174.2   schools and adult and continuing education programs and such.  
174.3   The evening schools and adult and continuing education 
174.4   programs when so maintained shall by the board must be available 
174.5   to all persons over 16 years of age who, from any cause, are 
174.6   unable to attend the full-time elementary or secondary schools 
174.7   of such district. 
174.8      Sec. 54.  Minnesota Statutes 1996, section 123.70, 
174.9   subdivision 2, is amended to read: 
174.10     Subd. 2.  [SCHEDULE OF IMMUNIZATIONS.] No person who has 
174.11  commenced a treatment schedule of immunization pursuant to 
174.12  subdivision 1, clause (2), may remain enrolled in any child care 
174.13  facility, elementary, or secondary school in this state after 18 
174.14  months of enrollment unless there is submitted to the 
174.15  administrator, or other person having general control and 
174.16  supervision of the school or child care facility, a statement 
174.17  from a physician or a public clinic which provides immunizations 
174.18  that the person has completed the primary schedule of 
174.19  immunizations for diphtheria, tetanus, pertussis, and polio and 
174.20  in which the month and year of each additional immunization 
174.21  received is included.  The statement must include the month and 
174.22  year of each additional immunization received.  For a child less 
174.23  than seven years of age, a primary schedule of immunizations 
174.24  shall consist of four doses of vaccine for diphtheria, tetanus, 
174.25  and pertussis and three doses of vaccine for poliomyelitis.  For 
174.26  a child seven years of age or older, a primary schedule of 
174.27  immunizations shall consist of three doses of vaccine for 
174.28  diphtheria, tetanus, and polio. 
174.29     Sec. 55.  Minnesota Statutes 1996, section 123.70, 
174.30  subdivision 4, is amended to read: 
174.31     Subd. 4.  [SUBSTITUTE IMMUNIZATION STATEMENT.] A person who 
174.32  is enrolling or enrolled in an elementary or secondary school or 
174.33  child care facility may substitute a statement from the 
174.34  emancipated person or a parent or guardian if the person is a 
174.35  minor child in lieu of the statement from a physician or public 
174.36  clinic which provides immunizations.  If the statement is from a 
175.1   parent or guardian or emancipated person, the statement shall 
175.2   must indicate the month and year of each immunization given.  In 
175.3   order for the statement to be acceptable for a person who is 
175.4   enrolling in an elementary school and who is six years of age or 
175.5   younger, it must indicate that the following was given:  no less 
175.6   than one dose of vaccine each for measles, mumps, and rubella 
175.7   given separately or in combination, and no less than four doses 
175.8   of vaccine for poliomyelitis, unless the third dose was given 
175.9   after the fourth birthday, then three doses are minimum, and no 
175.10  less than five doses of vaccine for diphtheria, tetanus, and 
175.11  pertussis, unless the fourth dose was given after the fourth 
175.12  birthday, then four are minimum.  In order for the statement to 
175.13  be acceptable for a person who is enrolling in an elementary or 
175.14  secondary school and is age seven through age 19, the statement 
175.15  must indicate that the person has received no less than one dose 
175.16  of vaccine each for measles, mumps, and rubella given separately 
175.17  or in combination and consistent with subdivision 10, and no 
175.18  less than three doses of vaccine for poliomyelitis, diphtheria, 
175.19  and tetanus.  
175.20     In order for the statement to be acceptable for a person 
175.21  who is enrolling in a secondary school, and who was born after 
175.22  1956 and is 20 years of age or older, the statement must 
175.23  indicate that the person has received no less than one dose of 
175.24  vaccine each for measles, mumps, and rubella given separately or 
175.25  in combination, and no less than one dose of vaccine for 
175.26  diphtheria and tetanus within the preceding ten years.  In order 
175.27  for the statement to be acceptable for a person who is enrolling 
175.28  in a child care facility and who is at least 15 months old but 
175.29  who has not reached five years of age, it must indicate that the 
175.30  following were given:  no less than one dose of vaccine each for 
175.31  measles, mumps, and rubella given separately or in combination; 
175.32  no less than one dose of vaccine for haemophilus influenza type 
175.33  b; no less than four doses of vaccine for diphtheria, tetanus, 
175.34  and pertussis; and no less than three doses of vaccine for 
175.35  poliomyelitis.  In order for the statement to be acceptable for 
175.36  a person who is enrolling in a child care facility and who is 
176.1   five or six years of age, it must indicate that the following 
176.2   was given:  no less than one dose of vaccine each for measles, 
176.3   mumps, and rubella given separately or in combination, no less 
176.4   than four doses of vaccine for diphtheria, tetanus, and 
176.5   pertussis, and no less than three doses of vaccine for 
176.6   poliomyelitis.  In order for the statement to be acceptable for 
176.7   a person who is enrolling in a child care facility and who is 
176.8   seven years of age or older, the statement must indicate that 
176.9   the person has received no less than one dose of vaccine each 
176.10  for measles, mumps, and rubella given separately or in 
176.11  combination and consistent with subdivision 10, and no less than 
176.12  three doses of vaccine for poliomyelitis, diphtheria, and 
176.13  tetanus.  The commissioner of health, on finding that any of the 
176.14  above requirements are not necessary to protect the public's 
176.15  health, may suspend for one year that requirement.  
176.16     Sec. 56.  Minnesota Statutes 1996, section 123.70, 
176.17  subdivision 8, is amended to read: 
176.18     Subd. 8.  [REPORT.] The administrator or other person 
176.19  having general control and supervision of the elementary or 
176.20  secondary school shall file a report with the commissioner of 
176.21  children, families, and learning on all persons enrolled in the 
176.22  school, except that.  The superintendent of each school district 
176.23  shall file a report with the commissioner of children, families, 
176.24  and learning for all persons within the district receiving 
176.25  instruction in a home school in compliance with sections 120.101 
176.26  and 120.102.  The parent of persons receiving instruction in a 
176.27  home school shall submit the statements as required by 
176.28  subdivisions 1, 2, 3, and 4 to the superintendent of the school 
176.29  district in which the person resides by October 1 of each school 
176.30  year.  The school report shall must be prepared on forms 
176.31  developed jointly by the commissioner of health and the 
176.32  commissioner of children, families, and learning and be 
176.33  distributed to the local school districts by the commissioner of 
176.34  health and shall.  The school report must state the number of 
176.35  persons attending the school, the number of persons who have not 
176.36  been immunized according to subdivision 1 or 2, and the number 
177.1   of persons who received an exemption under subdivision 3, clause 
177.2   (c) or (d).  The school report shall must be filed with the 
177.3   commissioner of children, families, and learning within 60 days 
177.4   of the commencement of each new school term.  Upon request, a 
177.5   district shall must be given a 60-day extension for filing the 
177.6   school report.  The commissioner of children, families, and 
177.7   learning shall forward the report, or a copy thereof, to the 
177.8   commissioner of health who shall provide summary reports to 
177.9   boards of health as defined in section 145A.02, subdivision 2.  
177.10  The administrator or other person having general control and 
177.11  supervision of the child care facility shall file a report with 
177.12  the commissioner of human services on all persons enrolled in 
177.13  the child care facility.  The child care facility report must be 
177.14  prepared on forms developed jointly by the commissioner of 
177.15  health and the commissioner of human services and be distributed 
177.16  to child care facilities by the commissioner of health and.  The 
177.17  child care facility report must state the number of persons 
177.18  enrolled in the facility, the number of persons with no 
177.19  immunizations, the number of persons who received an exemption 
177.20  under subdivision 3, clause (c) or (d), and the number of 
177.21  persons with partial or full immunization histories.  The child 
177.22  care facility report shall must be filed with the commissioner 
177.23  of human services by November 1 of each year.  The commissioner 
177.24  of human services shall forward the report, or a copy thereof, 
177.25  to the commissioner of health who shall provide summary reports 
177.26  to boards of health as defined in section 145A.02, subdivision 
177.27  2.  The report required by this subdivision is not required of a 
177.28  family child care or group family child care facility, for 
177.29  prekindergarten children enrolled in any elementary or secondary 
177.30  school provided services according to section 120.17, 
177.31  subdivision 2, nor for child care facilities in which at least 
177.32  75 percent of children in the facility participate on a one-time 
177.33  only or occasional basis to a maximum of 45 hours per child, per 
177.34  month.  
177.35     Sec. 57.  Minnesota Statutes 1996, section 123.702, 
177.36  subdivision 1, is amended to read: 
178.1      Subdivision 1.  [EARLY CHILDHOOD DEVELOPMENTAL SCREENING.] 
178.2   Every school board shall must provide for a mandatory program of 
178.3   early childhood developmental screening for children once before 
178.4   school entrance, targeting children who are between 3-1/2 and 
178.5   four years old.  This screening program shall must be 
178.6   established either by one board, by two or more boards acting in 
178.7   cooperation, by service cooperatives, by early childhood family 
178.8   education programs, or by other existing programs.  This 
178.9   screening examination is a mandatory requirement for a student 
178.10  to continue attending kindergarten or first grade in a public 
178.11  school.  A child need not submit to developmental screening 
178.12  provided by a school board if the child's health records 
178.13  indicate to the school board that the child has received 
178.14  comparable developmental screening from a public or private 
178.15  health care organization or individual health care provider.  
178.16  The school Districts are encouraged to reduce the costs of 
178.17  preschool developmental screening programs by utilizing 
178.18  volunteers in implementing the program. 
178.19     Sec. 58.  Minnesota Statutes 1996, section 123.702, 
178.20  subdivision 1b, is amended to read: 
178.21     Subd. 1b.  [SCREENING PROGRAM.] (a) A screening program 
178.22  shall must include at least the following components:  
178.23  developmental assessments, hearing and vision screening or 
178.24  referral, immunization review and referral, the child's height 
178.25  and weight, identification of risk factors that may influence 
178.26  learning, an interview with the parent about the child, and 
178.27  referral for assessment, diagnosis, and treatment when potential 
178.28  needs are identified.  The school district and the person 
178.29  performing or supervising the screening shall must provide a 
178.30  parent or guardian with clear written notice that the parent or 
178.31  guardian may decline to answer questions or provide information 
178.32  about family circumstances that might affect development and 
178.33  identification of risk factors that may influence learning.  The 
178.34  notice shall must clearly state that declining to answer 
178.35  questions or provide information does not prevent the child from 
178.36  being enrolled in kindergarten or first grade if all other 
179.1   screening components are met.  If a parent or guardian is not 
179.2   able to read and comprehend the written notice, the school 
179.3   district and the person performing or supervising the screening 
179.4   must convey the information in another manner.  The notice shall 
179.5   must also inform the parent or guardian that a child need not 
179.6   submit to the school district screening program if the child's 
179.7   health records indicate to the school that the child has 
179.8   received comparable developmental screening performed within the 
179.9   preceding 365 days by a public or private health care 
179.10  organization or individual health care provider.  The notice 
179.11  shall must be given to a parent or guardian at the time the 
179.12  district initially provides information to the parent or 
179.13  guardian about screening and shall must be given again at the 
179.14  screening location.  
179.15     (b) All screening components shall be consistent with the 
179.16  standards of the state commissioner of health for early 
179.17  developmental screening programs.  No A developmental screening 
179.18  program shall must not provide laboratory tests or a physical 
179.19  examination to any child.  The school district shall must 
179.20  request from the public or private health care organization or 
179.21  the individual health care provider the results of any 
179.22  laboratory test or physical examination within the 12 months 
179.23  preceding a child's scheduled screening.  
179.24     (c) If a child is without health coverage, the school 
179.25  district shall must refer the child to an appropriate health 
179.26  care provider.  
179.27     (d) A school board may offer additional components such as 
179.28  nutritional, physical and dental assessments, review of family 
179.29  circumstances that might affect development, blood pressure, 
179.30  laboratory tests, and health history.  
179.31     (e) If a statement signed by the child's parent or guardian 
179.32  is submitted to the administrator or other person having general 
179.33  control and supervision of the school that the child has not 
179.34  been screened because of conscientiously held beliefs of the 
179.35  parent or guardian, the screening is not required.  
179.36     Sec. 59.  Minnesota Statutes 1996, section 123.702, 
180.1   subdivision 2, is amended to read: 
180.2      Subd. 2.  [FOLLOW-UP SCREENING.] If any child's screening 
180.3   indicates a condition which requires diagnosis or treatment, the 
180.4   child's parents shall be notified of the condition and 
180.5   the school board shall ensure that an appropriate follow-up and 
180.6   referral process is available.  
180.7      Sec. 60.  Minnesota Statutes 1996, section 123.702, 
180.8   subdivision 3, is amended to read: 
180.9      Subd. 3.  [DEVELOPMENTAL SCREENING PROGRAM INFORMATION.] 
180.10  The school board shall must inform each resident family with a 
180.11  child eligible to participate in the developmental screening 
180.12  program about the availability of the program and the state's 
180.13  requirement that a child receive developmental screening not 
180.14  later than 30 days after the first day of attending kindergarten 
180.15  in a public school.  
180.16     Sec. 61.  Minnesota Statutes 1996, section 123.702, 
180.17  subdivision 4, is amended to read: 
180.18     Subd. 4.  [DEVELOPMENTAL SCREENING SERVICES.] A school 
180.19  board may contract with or purchase service from an approved 
180.20  early developmental screening program in the area.  
180.21  Developmental screening must be conducted by either an 
180.22  individual who is licensed as, or has training that is similar 
180.23  to a special education teacher, school psychologist, 
180.24  kindergarten teacher, prekindergarten teacher, school nurse, 
180.25  public health nurse, registered nurse, or physician.  The 
180.26  individual may be a volunteer.  
180.27     Sec. 62.  Minnesota Statutes 1996, section 123.702, 
180.28  subdivision 4a, is amended to read: 
180.29     Subd. 4a.  [SCREENING RECORD.] The school district 
180.30  shall must provide the parent or guardian of the child screened 
180.31  with a record indicating the month and year the child received 
180.32  developmental screening and the results of the screening.  The 
180.33  district shall must keep a duplicate copy of the record of each 
180.34  child screened.  
180.35     Sec. 63.  Minnesota Statutes 1996, section 123.702, 
180.36  subdivision 5, is amended to read: 
181.1      Subd. 5.  [VOLUNTEER SCREENING PROGRAMS.] Every school 
181.2   board shall must integrate and utilize volunteer screening 
181.3   programs in implementing sections 123.702 to 123.7045 wherever 
181.4   possible.  
181.5      Sec. 64.  Minnesota Statutes 1996, section 123.702, 
181.6   subdivision 6, is amended to read: 
181.7      Subd. 6.  [HEALTH CARE PROVIDER SOCIETIES.] A school board 
181.8   may consult with local societies of health care providers.  
181.9      Sec. 65.  Minnesota Statutes 1996, section 123.702, 
181.10  subdivision 7, is amended to read: 
181.11     Subd. 7.  [PRIORITY TO VOLUNTEERS.] In selecting personnel 
181.12  to implement the screening program, the school district shall 
181.13  must give priority first to qualified volunteers. 
181.14     Sec. 66.  Minnesota Statutes 1996, section 123.704, is 
181.15  amended to read: 
181.16     123.704 [DATA USE.] 
181.17     Data on individuals collected in screening programs 
181.18  established pursuant to section 123.702 is private, as defined 
181.19  by section 13.02, subdivision 12.  Individual and summary data 
181.20  shall must be reported to the school district by the health 
181.21  provider who performs the screening services, for the purposes 
181.22  of developing appropriate educational programs to meet the 
181.23  individual needs of children and designing appropriate health 
181.24  education programs for the district; provided,.  No data on an 
181.25  individual shall be disclosed to the district without the 
181.26  consent of that individual's parent or guardian. 
181.27     Sec. 67.  Minnesota Statutes 1996, section 123.7045, is 
181.28  amended to read: 
181.29     123.7045 [DEVELOPMENTAL SCREENING AID.] 
181.30     Each school year, the state shall must pay a school 
181.31  district $25 for each child screened according to the 
181.32  requirements of section 123.702.  If this amount of aid is 
181.33  insufficient, the district may permanently transfer from the 
181.34  general fund an amount that, when added to the aid, is 
181.35  sufficient. 
181.36     Sec. 68.  Minnesota Statutes 1996, section 124.255, is 
182.1   amended to read: 
182.2      124.255 [SCHOOL ENRICHMENT PARTNERSHIP PROGRAM.] 
182.3      Subdivision 1.  [ESTABLISHMENT.] The school enrichment 
182.4   partnership program is established.  The purpose of the program 
182.5   is to encourage school districts to expand the involvement of 
182.6   the private sector in the delivery of academic programs.  The 
182.7   program will provide matching state funds for those provided by 
182.8   the private sector. 
182.9      Subd. 2.  [REVENUE ELIGIBILITY.] A school district or group 
182.10  of school districts is eligible to receive state aid under this 
182.11  program.  Districts may enter into joint agreements to provide 
182.12  programs or make expenditures under this section.  The 
182.13  limitations under this subdivision shall apply to these programs 
182.14  or expenditures as if they were operated by a single district.  
182.15  A district may receive $1 of state aid for each $2 raised from 
182.16  the private sector.  The private match must be in the form of 
182.17  cash.  Specific types of noncash support may be considered for 
182.18  the private match.  State aid is limited to the lesser of 
182.19  $75,000 or $10 per pupil unit per district. 
182.20     Subd. 3.  [REVENUE MANAGEMENT.] The use of the state and 
182.21  private funds provided under this section is under the general 
182.22  control of the school board.  The board may establish, without 
182.23  using state funds or public employees, a separate foundation to 
182.24  directly manage the funds.  The private funds must be used to 
182.25  acquire instructional or noninstructional academic materials of 
182.26  a capital nature including, but not limited to, textbooks, 
182.27  globes, maps, and other academic material.  The funds may shall 
182.28  not be used for salaries or other employee benefits. 
182.29     Subd. 4.  [PROCEDURES; REPORT.] The Minnesota academic 
182.30  excellence foundation, under the direction of the commissioner 
182.31  of children, families, and learning, shall must establish 
182.32  application forms, guidelines, procedures, and timelines for the 
182.33  distribution of state aid.  The commissioner may require 
182.34  reporting necessary to evaluate the program.  Measures of 
182.35  success will include numbers of partnerships and funds raised; 
182.36  numbers of school foundations formed; and demonstrated linkages 
183.1   of partnerships to improved instructional delivery resulting in 
183.2   increased student learning. 
183.3      Subd. 5.  [RESULTS-ORIENTED CHARTER SCHOOLS.] 
183.4   Notwithstanding section 124.248, subdivision 4, paragraph (b), a 
183.5   results-oriented charter school is eligible to participate in 
183.6   the program under this section as if it were a school district. 
183.7      Sec. 69.  Minnesota Statutes 1996, section 124.26, 
183.8   subdivision 1c, is amended to read: 
183.9      Subd. 1c.  [PROGRAM APPROVAL.] (a) To receive aid under 
183.10  this section, a district, a consortium of districts, or a 
183.11  private nonprofit organization must submit an application by 
183.12  June 1 describing the program, on a form provided by the 
183.13  department.  The program must be approved by the commissioner 
183.14  according to the following criteria:  
183.15     (1) how the needs of different levels of learning will be 
183.16  met; 
183.17     (2) for continuing programs, an evaluation of results; 
183.18     (3) anticipated number and education level of participants; 
183.19     (4) coordination with other resources and services; 
183.20     (5) participation in a consortium, if any, and money 
183.21  available from other participants; 
183.22     (6) management and program design; 
183.23     (7) volunteer training and use of volunteers; 
183.24     (8) staff development services; 
183.25     (9) program sites and schedules; and 
183.26     (10) program expenditures that qualify for aid.  
183.27     (b) The commissioner may grant adult basic education funds 
183.28  to a private, nonprofit organization to provide services that 
183.29  are not offered by a district or that are supplemental to a 
183.30  district's program.  The program provided under this provision 
183.31  must be approved and funded according to the same criteria used 
183.32  for district programs. 
183.33     (c) Adult basic education programs may be approved under 
183.34  this subdivision for up to five years.  Five-year program 
183.35  approval shall must be granted to an applicant who has 
183.36  demonstrated the capacity to: 
184.1      (1) offer comprehensive learning opportunities and support 
184.2   service choices appropriate for and accessible to adults at all 
184.3   basic skill need levels; 
184.4      (2) provide a participatory and experiential learning 
184.5   approach based on the strengths, interests, and needs of each 
184.6   adult, that enables adults with basic skill needs to: 
184.7      (i) identify, plan for, and evaluate their own progress 
184.8   toward achieving their defined educational and occupational 
184.9   goals; 
184.10     (ii) master the basic academic reading, writing, and 
184.11  computational skills, as well as the problem-solving, decision 
184.12  making, interpersonal effectiveness, and other life and learning 
184.13  skills they need to function effectively in a changing society; 
184.14     (iii) locate and be able to use the health, governmental, 
184.15  and social services and resources they need to improve their own 
184.16  and their families' lives; and 
184.17     (iv) continue their education, if they desire, to at least 
184.18  the level of secondary school completion, with the ability to 
184.19  secure and benefit from continuing education that will enable 
184.20  them to become more employable, productive, and responsible 
184.21  citizens; 
184.22     (3) plan, coordinate, and develop cooperative agreements 
184.23  with community resources to address the needs that the adults 
184.24  have for support services, such as transportation, flexible 
184.25  course scheduling, convenient class locations, and child care; 
184.26     (4) collaborate with business, industry, labor unions, and 
184.27  employment-training agencies, as well as with family and 
184.28  occupational education providers, to arrange for resources and 
184.29  services through which adults can attain economic 
184.30  self-sufficiency; 
184.31     (5) provide sensitive and well trained adult education 
184.32  personnel who participate in local, regional, and statewide 
184.33  adult basic education staff development events to master 
184.34  effective adult learning and teaching techniques; 
184.35     (6) participate in regional adult basic education peer 
184.36  program reviews and evaluations; and 
185.1      (7) submit accurate and timely performance and fiscal 
185.2   reports.  
185.3      Sec. 70.  Minnesota Statutes 1997 Supplement, section 
185.4   124.26, subdivision 2, is amended to read: 
185.5      Subd. 2.  [ACCOUNTS; REVENUE; AID.] Each district, group of 
185.6   districts, or private nonprofit organization providing adult 
185.7   basic education programs shall must establish and maintain 
185.8   accounts separate from all other district accounts for the 
185.9   receipt and disbursement of all funds related to these 
185.10  programs.  All revenue received pursuant to this section shall 
185.11  must be utilized solely for the purposes of adult basic 
185.12  education programs.  In no case shall Federal and state aid plus 
185.13  levy must not equal more than 100 percent of the actual cost of 
185.14  providing these programs. 
185.15     Sec. 71.  Minnesota Statutes 1997 Supplement, section 
185.16  124.2601, subdivision 6, is amended to read: 
185.17     Subd. 6.  [AID GUARANTEE.] (a) For fiscal year 1994, any 
185.18  adult basic education program that receives less state aid under 
185.19  subdivisions 3 and 7 than from the aid formula for fiscal year 
185.20  1992 shall must receive the amount of aid it received in fiscal 
185.21  year 1992. 
185.22     (b) For 1995, 1996, and 1997 fiscal years, an adult basic 
185.23  education program that receives aid shall must receive at least 
185.24  the amount of aid it received in fiscal year 1992 under 
185.25  subdivisions 3 and 7, plus aid equal to the amount of revenue 
185.26  that would have been raised for taxes payable in 1994 under 
185.27  Minnesota Statutes 1992, section 124.2601, subdivision 4, minus 
185.28  the amount raised under subdivision 4. 
185.29     (c) For fiscal year 1998, any adult basic education program 
185.30  that receives less state aid than in fiscal year 1997 shall 
185.31  receive additional aid equal to 80 percent of the difference 
185.32  between its 1997 aid and the amount of aid under subdivision 5.  
185.33  For fiscal year 1999 and later, additional aid under this 
185.34  paragraph must be reduced by 20 percent each year. 
185.35     Sec. 72.  Minnesota Statutes 1996, section 124.2601, 
185.36  subdivision 7, is amended to read: 
186.1      Subd. 7.  [PRORATION.] If the total appropriation for adult 
186.2   basic education aid is insufficient to pay all approved programs 
186.3   the full amount of aid earned, the department of children, 
186.4   families, and learning shall must proportionately reduce each 
186.5   approved program's aid. 
186.6      Sec. 73.  Minnesota Statutes 1996, section 124.2605, is 
186.7   amended to read: 
186.8      124.2605 [GED TEST FEES.] 
186.9      The commissioner of children, families, and learning shall 
186.10  pay 60 percent of the fee that is charged to an eligible 
186.11  individual for the full battery of a GED test, but not more than 
186.12  $20 for an eligible individual. 
186.13     Sec. 74.  Minnesota Statutes 1997 Supplement, section 
186.14  124.2615, subdivision 2, is amended to read: 
186.15     Subd. 2.  [AMOUNT OF AID.] (a) A district is eligible to 
186.16  receive learning readiness aid if the program plan as required 
186.17  by subdivision 1 has been approved by the commissioner of 
186.18  children, families, and learning.  
186.19     (b) For fiscal year 1998 and thereafter, a district 
186.20  shall must receive learning readiness aid equal to: 
186.21     (1) the number of eligible four-year old children in the 
186.22  district times the ratio of 50 percent of the total learning 
186.23  readiness aid for that year to the total number of eligible 
186.24  four-year old children reported to the commissioner for that 
186.25  year; plus 
186.26     (2) the number of pupils enrolled in the school district 
186.27  from families eligible for the free or reduced school lunch 
186.28  program times the ratio of 50 percent of the total learning 
186.29  readiness aid for that year to the total number of pupils in the 
186.30  state from families eligible for the free or reduced school 
186.31  lunch program. 
186.32     Sec. 75.  Minnesota Statutes 1996, section 124.2615, 
186.33  subdivision 4, is amended to read: 
186.34     Subd. 4.  [SEPARATE ACCOUNTS.] The district shall must 
186.35  deposit learning readiness aid in a separate account within the 
186.36  community education fund.  
187.1      Sec. 76.  Minnesota Statutes 1996, section 124.2711, as 
187.2   amended by Laws 1997, chapter 162, article 1, sections 6 and 7, 
187.3   is amended to read: 
187.4      124.2711 [EARLY CHILDHOOD FAMILY EDUCATION REVENUE.] 
187.5      Subdivision 1.  [REVENUE.] The revenue for early childhood 
187.6   family education programs for a school district equals $101.25 
187.7   for 1998 and $113.50 for 1999 and later fiscal years times the 
187.8   greater of: 
187.9      (1) 150; or 
187.10     (2) the number of people under five years of age residing 
187.11  in the school district on October 1 of the previous school year. 
187.12     Subd. 2.  [POPULATION.] For the purposes of subdivision 1, 
187.13  data reported to the department of children, families, and 
187.14  learning may be used to determine the number of people under 
187.15  five years of age residing in the district.  The commissioner, 
187.16  with the assistance of the state demographer, shall review the 
187.17  number reported by any district operating an early childhood 
187.18  family education program.  If requested, the district shall 
187.19  submit to the commissioner an explanation of its methods and 
187.20  other information necessary to document accuracy.  If the 
187.21  commissioner determines that the district has not provided 
187.22  sufficient documentation of accuracy, the commissioner may 
187.23  request the state demographer to prepare an estimate of the 
187.24  number of people under five years of age residing in the 
187.25  district and may use this estimate for the purposes of 
187.26  subdivision 1.  
187.27     Subd. 2a.  [EARLY CHILDHOOD FAMILY EDUCATION LEVY.] To 
187.28  obtain early childhood family education revenue, a district may 
187.29  levy an amount equal to the tax rate of .653 percent times the 
187.30  adjusted tax capacity of the district for the year preceding the 
187.31  year the levy is certified.  If the amount of the early 
187.32  childhood family education levy would exceed the early childhood 
187.33  family education revenue, the early childhood family education 
187.34  levy shall must equal the early childhood family education 
187.35  revenue.  
187.36     Subd. 3.  [EARLY CHILDHOOD FAMILY EDUCATION AID.] If a 
188.1   district complies with the provisions of section 121.882, it 
188.2   shall must receive early childhood family education aid equal to 
188.3   the difference between the early childhood family education 
188.4   revenue and the early childhood family education levy.  If the 
188.5   district does not levy the entire amount permitted, the early 
188.6   childhood family education aid shall must be reduced in 
188.7   proportion to the actual amount levied.  
188.8      Subd. 4.  [USE OF REVENUE RESTRICTED.] Early childhood 
188.9   family education revenue may be used only for early childhood 
188.10  family education programs.  Not more than five percent of early 
188.11  childhood family education revenue may be used to administer 
188.12  early childhood family education programs.  The increase in 
188.13  revenue for fiscal years 1992 and 1993 shall must be used to: 
188.14     (1) increase participation of families so that the total 
188.15  participation in early childhood family education programs in 
188.16  the district more nearly reflects the demographic, racial, 
188.17  cultural, and ethnic diversity of the district; and 
188.18     (2) provide programs for families who, because of poverty 
188.19  and other barriers to learning, may need programs designed to 
188.20  meet their needs.  
188.21     Subd. 5.  [HOME VISITING LEVY.] A school district that 
188.22  enters into a collaborative agreement to provide education 
188.23  services and social services to families with young children may 
188.24  levy an amount equal to $1.60 times the number of people under 
188.25  five years of age residing in the district on September 1 of the 
188.26  last school year.  Levy revenue under this subdivision shall 
188.27  must not be included as revenue under subdivision 1.  The 
188.28  revenue shall must be used for home visiting programs under 
188.29  section 121.882, subdivision 2b.  
188.30     Subd. 6.  [RESERVE ACCOUNT.] Early childhood family 
188.31  education revenue, which includes aids, levies, fees, grants, 
188.32  and all other revenues received by the school district for early 
188.33  childhood family education programs, must be maintained in a 
188.34  reserve account within the community service fund. 
188.35     Sec. 77.  Minnesota Statutes 1996, section 124.2712, is 
188.36  amended to read: 
189.1      124.2712 [ADDITIONAL ECFE REVENUE.] 
189.2      In addition to the revenue in section 124.2711, subdivision 
189.3   1, in fiscal year 1994 a district is eligible for aid equal to 
189.4   $1.60 times the greater of 150 or the number of people under 
189.5   five years of age residing in the school district on September 1 
189.6   of the last school year.  This amount may be used only for 
189.7   in-service education for early childhood family education parent 
189.8   educators, child educators, and home visitors for violence 
189.9   prevention programs and for home visiting programs under section 
189.10  126.77.  A district that uses revenue under this paragraph for 
189.11  home visiting programs shall must provide home visiting program 
189.12  services through its early childhood family education program or 
189.13  shall contract with a public or nonprofit organization to 
189.14  provide such services.  A district may establish a new home 
189.15  visiting program only where no existing, reasonably accessible 
189.16  home visiting program meets the program requirements in section 
189.17  126.77. 
189.18     Sec. 78.  Minnesota Statutes 1996, section 124.2713, 
189.19  subdivision 7, is amended to read: 
189.20     Subd. 7.  [COMMUNITY EDUCATION AID.] A district's community 
189.21  education aid is the difference between its community education 
189.22  revenue and the community education levy.  If the district does 
189.23  not levy the entire amount permitted, the community education 
189.24  aid shall must be reduced in proportion to the actual amount 
189.25  levied.  
189.26     Sec. 79.  Minnesota Statutes 1997 Supplement, section 
189.27  124.2713, subdivision 8, is amended to read: 
189.28     Subd. 8.  [USES OF GENERAL REVENUE.] (a) General community 
189.29  education revenue may be used for: 
189.30     (1) nonvocational, recreational, and leisure time 
189.31  activities and programs; 
189.32     (2) programs for adults with disabilities, if the programs 
189.33  and budgets are approved by the department of children, 
189.34  families, and learning; 
189.35     (3) adult basic education programs, according to section 
189.36  124.26; 
190.1      (4) summer programs for elementary and secondary pupils; 
190.2      (5) implementation of a youth development plan; 
190.3      (6) implementation of a youth service program; 
190.4      (7) early childhood family education programs, according to 
190.5   section 121.882; and 
190.6      (8) extended day programs, according to section 121.88, 
190.7   subdivision 10. 
190.8      (9) In addition to money from other sources, a district may 
190.9   use up to ten percent of its community education revenue for 
190.10  equipment that is used exclusively in community education 
190.11  programs.  This revenue may be used only for the following 
190.12  purposes:  
190.13     (i) to purchase or lease computers and related materials; 
190.14     (ii) to purchase or lease equipment for instructional 
190.15  programs; and 
190.16     (iii) to purchase textbooks and library books. 
190.17     (b) General community education revenue must not be used to 
190.18  subsidize the direct activity costs for adult enrichment 
190.19  programs.  Direct activity costs include, but are not limited 
190.20  to, the cost of the activity leader or instructor, cost of 
190.21  materials, or transportation costs. 
190.22     Sec. 80.  Minnesota Statutes 1996, section 124.2715, 
190.23  subdivision 3, is amended to read: 
190.24     Subd. 3.  [LEVY.] A district may levy for a program for 
190.25  adults with disabilities an amount up to the amount designated 
190.26  in subdivision 2.  In the case of a program offered by a group 
190.27  of districts, the levy amount shall must be apportioned among 
190.28  the districts according to the agreement submitted to the 
190.29  department of children, families, and learning.  
190.30     Sec. 81.  Minnesota Statutes 1996, section 124.2716, 
190.31  subdivision 1, is amended to read: 
190.32     Subdivision 1.  [ELIGIBILITY.] A school district that 
190.33  offers an extended day program according to section 121.88, 
190.34  subdivision 10, is eligible for extended day revenue for the 
190.35  additional costs of providing services to children with 
190.36  disabilities or to children experiencing family or related 
191.1   problems of a temporary nature who participate in the extended 
191.2   day program. 
191.3      Sec. 82.  Minnesota Statutes 1996, section 124.2716, 
191.4   subdivision 2, is amended to read: 
191.5      Subd. 2.  [EXTENDED DAY REVENUE.] The extended day revenue 
191.6   for an eligible school district equals the approved additional 
191.7   cost of providing services to children with disabilities or 
191.8   children experiencing family or related problems of a temporary 
191.9   nature who participate in the extended day program.  
191.10     Sec. 83.  Minnesota Statutes 1996, section 124.276, 
191.11  subdivision 1, is amended to read: 
191.12     Subdivision 1.  [ELIGIBILITY.] A school district that has a 
191.13  family connections program, according to sections 125.70 to 
191.14  125.705, for one or more of its teachers is eligible for aid to 
191.15  extend the teaching contract of a family connections teacher.  
191.16     Sec. 84.  Minnesota Statutes 1996, section 124.276, 
191.17  subdivision 3, is amended to read: 
191.18     Subd. 3.  [COMMISSIONER APPROVAL.] The commissioner may 
191.19  approve plans and applications for districts throughout the 
191.20  state for family connections aid.  Application procedures and 
191.21  deadlines shall be established by The commissioner shall 
191.22  establish application procedures and deadlines. 
191.23     Sec. 85.  Minnesota Statutes 1996, section 124C.12, 
191.24  subdivision 2, is amended to read: 
191.25     Subd. 2.  [ELIGIBILITY.] An applicant for revenue may be 
191.26  any one of the following: 
191.27     (1) a school district located in a city of the first class 
191.28  offering a program in cooperation with other districts or by 
191.29  itself, in one or more areas in the district or in the entire 
191.30  district; 
191.31     (2) at least two cooperating school districts located in 
191.32  the seven-county metropolitan area but not located in a city of 
191.33  the first class; 
191.34     (3) a group of school districts that are all members of the 
191.35  same education district; 
191.36     (4) an education district; 
192.1      (5) a group of cooperating school districts none of which 
192.2   are members of any education district; or 
192.3      (6) a school district. 
192.4      Sec. 86.  Minnesota Statutes 1996, section 125.702, is 
192.5   amended to read: 
192.6      125.702 [PROGRAM SELECTION.] 
192.7      Subdivision 1.  [AUTHORIZATION.] A school district or group 
192.8   of districts may establish an improved learning program.  
192.9      Subd. 2.  [RULES AND RIGHTS.] The state board of education 
192.10  may waive school district compliance with its rules which would 
192.11  prevent implementation of an improved learning program.  
192.12  Participation in an improved learning program as a 
192.13  principal-teacher, counselor-teacher, or career teacher shall 
192.14  must not affect seniority in the district or rights under the 
192.15  applicable collective bargaining agreement.  
192.16     Subd. 3.  [ADDITIONAL FUNDING.] A school district providing 
192.17  an improved learning program may receive funds for the program 
192.18  from private sources and governmental agencies, including state 
192.19  or federal funds.  
192.20     Sec. 87.  Minnesota Statutes 1996, section 125.703, is 
192.21  amended to read: 
192.22     125.703 [ADVISORY COUNCIL.] 
192.23     The school board of a district providing a family 
192.24  connections program shall must appoint an advisory council.  
192.25  Council members shall must be selected from the school 
192.26  attendance area in which programs are provided.  Members of the 
192.27  council may include students, teachers, principals, 
192.28  administrators and community members.  A majority of the members 
192.29  shall must be parents with children participating in the local 
192.30  program.  The local advisory council shall must advise the 
192.31  school board in the development, coordination, supervision, and 
192.32  review of the career teacher program.  The council shall must 
192.33  meet at least two times each year with any established community 
192.34  education advisory council in the district.  Members of the 
192.35  council may be members of the community education advisory 
192.36  council.  The council shall must report to the school board. 
193.1      Sec. 88.  Minnesota Statutes 1996, section 125.704, 
193.2   subdivision 1, is amended to read: 
193.3      Subdivision 1.  [MANDATORY COMPONENTS.] A family 
193.4   connections program shall must include:  
193.5      (1) participation by a designated individual as a career 
193.6   teacher, principal-teacher, or counselor teacher; 
193.7      (2) an emphasis on each individual child's unique learning 
193.8   and development needs; 
193.9      (3) procedures to give the career teacher a major 
193.10  responsibility for leadership of the instructional and 
193.11  noninstructional activities of each child beginning with early 
193.12  childhood family education; 
193.13     (4) procedures to involve parents in the learning and 
193.14  development experiences of their children; 
193.15     (5) procedures to implement outcome based education by 
193.16  focusing on the needs of the learner; 
193.17     (6) procedures to coordinate and integrate the 
193.18  instructional program with all community education programs; 
193.19     (7) procedures to concentrate career teacher programs at 
193.20  sites that provide early childhood family education and 
193.21  subsequent learning and development programs; and 
193.22     (8) procedures for the district to fund the program.  
193.23     Sec. 89.  Minnesota Statutes 1996, section 125.705, 
193.24  subdivision 1, is amended to read: 
193.25     Subdivision 1.  [STATUS.] A family connections program may 
193.26  include a career teacher, principal-teacher, and counselor 
193.27  teacher component.  The career teacher, principal-teacher, and 
193.28  counselor teacher shall must not be the exclusive teacher for 
193.29  students assigned to them but shall serve as a primary teacher 
193.30  and perform the function of developing and implementing a 
193.31  student's overall learning and development program.  The career 
193.32  teacher, principal-teacher, and counselor teacher may be 
193.33  responsible for regular assignments as well as learning and 
193.34  development programs for other assigned students.  
193.35     Sec. 90.  Minnesota Statutes 1996, section 125.705, 
193.36  subdivision 3, is amended to read: 
194.1      Subd. 3.  [STAFF/STUDENT RATIO.] (a) Except as provided in 
194.2   clause (b), one career teacher, principal-teacher, or counselor 
194.3   teacher shall be assigned for every 125 students.  For each 
194.4   special education student included in the assignment, the 1:125 
194.5   ratio shall must be reduced by one.  
194.6      (b) One principal-teacher shall be assigned for every 50 
194.7   students when the principal-teacher is also the principal of the 
194.8   school.  
194.9      Sec. 91.  Minnesota Statutes 1996, section 125.705, 
194.10  subdivision 4, is amended to read: 
194.11     Subd. 4.  [SELECTION; RENEWAL.] (a) The school board 
194.12  shall must establish procedures for teachers, principals, and 
194.13  counselors to apply for the position of career teacher, 
194.14  principal-teacher, or counselor teacher.  The authority for 
194.15  selection of career teachers, principal-teachers, and counselor 
194.16  teachers shall be is vested in the board and no individual shall 
194.17  have a right to employment as a career teacher, 
194.18  principal-teacher, or counselor teacher based on seniority or 
194.19  order of employment in the district.  
194.20     (b) Employment of the career teacher, principal-teacher, 
194.21  and counselor teacher may be on a 12-month basis with vacation 
194.22  time negotiated individually with the board.  The annual 
194.23  contract of a career teacher, principal-teacher, or counselor 
194.24  teacher may not be renewed, as the board shall see fit; 
194.25  provided, however,.  The board shall must give any such 
194.26  teacher whose contract as a career teacher, principal-teacher, 
194.27  or counselor teacher it declines to renew for the following year 
194.28  written notice to that effect before April 15.  If the board 
194.29  fails to renew the contract of a career teacher, 
194.30  principal-teacher, or counselor teacher, that individual shall 
194.31  must be reinstated to another position in the district if 
194.32  eligible pursuant to section 125.12 or 125.17.  
194.33     Sec. 92.  Minnesota Statutes 1996, section 125.705, 
194.34  subdivision 5, is amended to read: 
194.35     Subd. 5.  [DUTIES.] The career teacher, principal-teacher, 
194.36  and counselor teacher shall be is responsible for:  
195.1      (1) the overall education, learning, and development plan 
195.2   of assigned students.  This plan shall be designed by The career 
195.3   teacher, principal-teacher, and counselor teacher must design 
195.4   this plan with the student, parents, and other faculty, 
195.5   and shall must seek to maximize the learning and development 
195.6   potential and maturation level of each pupil; 
195.7      (2) measuring the proficiency of the assigned students and 
195.8   assisting other staff in identifying pupil needs and making 
195.9   appropriate educational and subject groupings; 
195.10     (3) when part of the district's plan, taking responsibility 
195.11  for the parent and early childhood education of assigned 
195.12  students; 
195.13     (4) designing and being responsible for program components 
195.14  which meet special learning needs of high potential and talented 
195.15  students; 
195.16     (5) coordinating the ongoing, year-to-year learning and 
195.17  development program for assigned students; and 
195.18     (6) developing learning and development portfolios.  
195.19     Sec. 93.  Minnesota Statutes 1997 Supplement, section 
195.20  126.77, subdivision 1, is amended to read: 
195.21     Subdivision 1.  [VIOLENCE PREVENTION CURRICULUM.] (a) The 
195.22  commissioner of children, families, and learning, in 
195.23  consultation with the commissioners of health and human 
195.24  services, state minority councils, battered women's programs, 
195.25  sexual assault centers, representatives of religious 
195.26  communities, and the assistant commissioner of the office of 
195.27  drug policy and violence prevention, shall assist districts on 
195.28  request in developing or implementing a violence prevention 
195.29  program for students in kindergarten to grade 12 that can be 
195.30  integrated into existing curriculum.  The purpose of the program 
195.31  is to help students learn how to resolve conflicts within their 
195.32  families and communities in nonviolent, effective ways.  
195.33     (b) Each district is encouraged to integrate into its 
195.34  existing curriculum a program for violence prevention that 
195.35  includes at least: 
195.36     (1) a comprehensive, accurate, and age appropriate 
196.1   curriculum on violence prevention, nonviolent conflict 
196.2   resolution, sexual, racial, and cultural harassment, and student 
196.3   hazing that promotes equality, respect, understanding, effective 
196.4   communication, individual responsibility, thoughtful decision 
196.5   making, positive conflict resolution, useful coping skills, 
196.6   critical thinking, listening and watching skills, and personal 
196.7   safety; 
196.8      (2) planning materials, guidelines, and other accurate 
196.9   information on preventing physical and emotional violence, 
196.10  identifying and reducing the incidence of sexual, racial, and 
196.11  cultural harassment, and reducing child abuse and neglect; 
196.12     (3) a special parent education component of early childhood 
196.13  family education programs to prevent child abuse and neglect and 
196.14  to promote positive parenting skills, giving priority to 
196.15  services and outreach programs for at-risk families; 
196.16     (4) involvement of parents and other community members, 
196.17  including the clergy, business representatives, civic leaders, 
196.18  local elected officials, law enforcement officials, and the 
196.19  county attorney; 
196.20     (5) collaboration with local community services, agencies, 
196.21  and organizations that assist in violence intervention or 
196.22  prevention, including family-based services, crisis services, 
196.23  life management skills services, case coordination services, 
196.24  mental health services, and early intervention services; 
196.25     (6) collaboration among districts and SCs service 
196.26  cooperatives; 
196.27     (7) targeting early adolescents for prevention efforts, 
196.28  especially early adolescents whose personal circumstances may 
196.29  lead to violent or harassing behavior; 
196.30     (8) opportunities for teachers to receive in-service 
196.31  training or attend other programs on strategies or curriculum 
196.32  designed to assist students in intervening in or preventing 
196.33  violence in school and at home; and 
196.34     (9) administrative policies that reflect, and a staff that 
196.35  models, nonviolent behaviors that do not display or condone 
196.36  sexual, racial, or cultural harassment or student hazing. 
197.1      (c) The department may provide assistance at a neutral site 
197.2   to a nonpublic school participating in a district's program. 
197.3      Sec. 94.  Minnesota Statutes 1996, section 126.78, 
197.4   subdivision 4, is amended to read: 
197.5      Subd. 4.  [GRANT PROCEEDS.] A successful applicant 
197.6   shall must use the grant money to develop and implement or to 
197.7   continue a violence prevention program according to the terms of 
197.8   the grant application. 
197.9      Sec. 95.  Minnesota Statutes 1996, section 126.84, 
197.10  subdivision 1, is amended to read: 
197.11     Subdivision 1.  [ESTABLISHMENT.] The commissioner of 
197.12  children, families, and learning, in consultation with the 
197.13  commissioner of human services, shall make male responsibility 
197.14  and fathering grants to youth or parenting programs that 
197.15  collaborate with school districts to educate young people, 
197.16  particularly males ages ten to 21, on the responsibilities of 
197.17  parenthood. 
197.18     Sec. 96.  Minnesota Statutes 1996, section 126.84, 
197.19  subdivision 3, is amended to read: 
197.20     Subd. 3.  [EXPECTED OUTCOMES.] Grant recipients shall must 
197.21  use the funds for programs designed to prevent teen pregnancy 
197.22  and to prevent crime in the long term.  Recipient programs must 
197.23  assist youth to: 
197.24     (1) understand the connection between sexual behavior, 
197.25  adolescent pregnancy, and the roles and responsibilities of 
197.26  marriage and parenting; 
197.27     (2) understand the long-term responsibility of fatherhood; 
197.28     (3) understand the importance of fathers in the lives of 
197.29  children; 
197.30     (4) acquire parenting skills and knowledge of child 
197.31  development; and 
197.32     (5) find community support for their roles as fathers and 
197.33  nurturers of children. 
197.34     Sec. 97.  Minnesota Statutes 1996, section 126.84, 
197.35  subdivision 4, is amended to read: 
197.36     Subd. 4.  [GRANT APPLICATIONS.] (a) An application for a 
198.1   grant may be submitted by a youth or parenting program whose 
198.2   purpose is to reduce teen pregnancy or teach child development 
198.3   and parenting skills in collaboration with a school district.  
198.4   Each grant application must include a description of the 
198.5   program's structure and components, including collaborative and 
198.6   outreach efforts; an implementation and evaluation plan to 
198.7   measure the program's success; a plan for using males as 
198.8   instructors and mentors; and a cultural diversity plan to ensure 
198.9   that staff or teachers will reflect the cultural backgrounds of 
198.10  the population served and that the program content is culturally 
198.11  sensitive. 
198.12     (b) Grant recipients must, at a minimum, provide education 
198.13  in responsible parenting and child development, responsible 
198.14  decision-making related to marriage and relationships, and the 
198.15  legal implications of paternity.  Grant recipients also must 
198.16  provide public awareness efforts in the collaborating school 
198.17  district.  Grant recipients may offer support groups, health and 
198.18  nutrition education, and mentoring and peer teaching. 
198.19     (c) A grant applicant must establish an advisory committee 
198.20  to assist the applicant in planning and implementation of a 
198.21  grant.  The advisory committee must include student 
198.22  representatives, adult males from the community, representatives 
198.23  of community organizations, teachers, parent educators, and 
198.24  representatives of family social service agencies. 
198.25     Sec. 98.  Minnesota Statutes 1996, section 126.84, 
198.26  subdivision 5, is amended to read: 
198.27     Subd. 5.  [ADMINISTRATION.] The commissioner of children, 
198.28  families, and learning shall administer male responsibility and 
198.29  fathering grants.  The commissioner shall establish a grant 
198.30  review committee composed of teachers and representatives of 
198.31  community organizations, student organizations, and education or 
198.32  family social service agencies that offer parent education 
198.33  programs. 
198.34     Sec. 99.  Minnesota Statutes 1996, section 126A.01, is 
198.35  amended to read: 
198.36     126A.01 [ENVIRONMENTAL EDUCATION GOALS AND PLAN.] 
199.1      The environmental education program described in this 
199.2   chapter section and section 126A.06 has these goals for the 
199.3   pupils and other citizens of this state: 
199.4      (a) Pupils and citizens should be able to apply informed 
199.5   decision-making processes to maintain a sustainable lifestyle.  
199.6   In order to do so, citizens should: 
199.7      (1) understand ecological systems; 
199.8      (2) understand the cause and effect relationship between 
199.9   human attitudes and behavior and the environment; 
199.10     (3) be able to evaluate alternative responses to 
199.11  environmental issues before deciding on alternative courses of 
199.12  action; and 
199.13     (4) understand the effects of multiple uses of the 
199.14  environment. 
199.15     (b) Pupils and citizens shall have access to information 
199.16  and experiences needed to make informed decisions about actions 
199.17  to take on environmental issues. 
199.18     (c) For the purposes of this chapter section and section 
199.19  126A.06, "state plan" means "Greenprint for Minnesota:  A State 
199.20  Plan for Environmental Education." 
199.21     Sec. 100.  Minnesota Statutes 1996, section 126B.01, 
199.22  subdivision 2, is amended to read: 
199.23     Subd. 2.  [FUNDING.] Work-based learning programs 
199.24  incorporating post-secondary instruction implemented under this 
199.25  chapter section and sections 126B.03 to 126B.10 shall provide 
199.26  for student funding according to section 123.3514. 
199.27     Sec. 101.  Minnesota Statutes 1996, section 126B.01, 
199.28  subdivision 4, is amended to read: 
199.29     Subd. 4.  [PARTNERSHIP GRANTS.] The council shall must 
199.30  award grants to implement local education and employment 
199.31  transition systems to local education and employment transition 
199.32  partnerships established under section 126B.10.  Grants under 
199.33  this section may be used for the local education and employment 
199.34  transitions system, youth apprenticeship and other work-based 
199.35  learning programs, youth employer programs, youth 
199.36  entrepreneurship programs, and other programs and purposes the 
200.1   council determines fulfill the purposes of the education and 
200.2   employment transitions system.  The council shall must evaluate 
200.3   grant proposals on the basis of the elements required in the 
200.4   local plan described in section 126B.10, subdivision 3.  The 
200.5   council shall must develop and publicize the grant application 
200.6   process and review and comment on the proposals submitted.  
200.7   Priority in awarding grants must be given to local partnerships 
200.8   that include multiple communities and a viable base of 
200.9   educational, work-based learning, and employment opportunities.  
200.10     Sec. 102.  Minnesota Statutes 1996, section 126B.10, is 
200.11  amended to read: 
200.12     126B.10 [EDUCATION AND EMPLOYMENT TRANSITIONS 
200.13  PARTNERSHIPS.] 
200.14     Subdivision 1.  [LOCAL PARTNERSHIPS; ESTABLISHMENT.] Local 
200.15  education and employment transitions partnerships may be 
200.16  established to implement local education and employment 
200.17  transitions systems.  Local partnerships shall must represent 
200.18  multiple sectors in the community, including, at a minimum, 
200.19  representatives of employers, primary and secondary education, 
200.20  labor and professional organizations, workers, learners, 
200.21  parents, community-based organizations, and to the extent 
200.22  possible, post-secondary education.  
200.23     Subd. 2.  [BOARD.] A local education and employment 
200.24  transitions partnership shall must establish a governing board 
200.25  for planning and implementing work-based and other applied 
200.26  learning programs.  The board shall must consist of at least one 
200.27  representative from each member of the education and employment 
200.28  transitions partnership.  A majority of the board must consist 
200.29  of representatives of local or regional employers. 
200.30     Subd. 3.  [LOCAL EDUCATION AND EMPLOYMENT TRANSITIONS 
200.31  SYSTEMS.] A local education and employment transitions 
200.32  partnership shall must assess the needs of employers, employees, 
200.33  and learners, and develop a plan for implementing and achieving 
200.34  the objectives of a local or regional education and employment 
200.35  transitions system.  The plan shall must provide for a 
200.36  comprehensive local system for assisting learners and workers in 
201.1   making the transition from school to work or for retraining in a 
201.2   new vocational area.  The objectives of a local education and 
201.3   employment transitions system include:  
201.4      (1) increasing the effectiveness of the educational 
201.5   programs and curriculum of elementary, secondary, and 
201.6   post-secondary schools and the work site in preparing students 
201.7   in the skills and knowledge needed to be successful in the 
201.8   workplace; 
201.9      (2) implementing learner outcomes for students in grades 
201.10  kindergarten through 12 designed to introduce the world of work 
201.11  and to explore career opportunities, including nontraditional 
201.12  career opportunities; 
201.13     (3) eliminating barriers to providing effective integrated 
201.14  applied learning, service-learning, or work-based curriculum; 
201.15     (4) increasing opportunities to apply academic knowledge 
201.16  and skills, including skills needed in the workplace, in local 
201.17  settings which include the school, school-based enterprises, 
201.18  post-secondary institutions, the workplace, and the community; 
201.19     (5) increasing applied instruction in the attitudes and 
201.20  skills essential for success in the workplace, including 
201.21  cooperative working, leadership, problem-solving, and respect 
201.22  for diversity; 
201.23     (6) providing staff training for vocational guidance 
201.24  counselors, teachers, and other appropriate staff in the 
201.25  importance of preparing learners for the transition to work, and 
201.26  in methods of providing instruction that incorporate applied 
201.27  learning, work-based learning, and service-learning experiences; 
201.28     (7) identifying and enlisting local and regional employers 
201.29  who can effectively provide work-based or service-learning 
201.30  opportunities, including, but not limited to, apprenticeships, 
201.31  internships, and mentorships; 
201.32     (8) recruiting community and workplace mentors including 
201.33  peers, parents, employers and employed individuals from the 
201.34  community, and employers of high school students; 
201.35     (9) identifying current and emerging educational, training, 
201.36  and employment needs of the area or region, especially within 
202.1   industries with potential for job growth; 
202.2      (10) improving the coordination and effectiveness of local 
202.3   vocational and job training programs, including vocational 
202.4   education, adult basic education, tech prep, apprenticeship, 
202.5   service-learning, youth entrepreneur, youth training and 
202.6   employment programs administered by the commissioner of economic 
202.7   security, and local job training programs under the Job Training 
202.8   Partnership Act, United States Code, title 29, section 1501, et 
202.9   seq.; 
202.10     (11) identifying and applying for federal, state, local, 
202.11  and private sources of funding for vocational or applied 
202.12  learning programs; 
202.13     (12) providing students with current information and 
202.14  counseling about career opportunities, potential employment, 
202.15  educational opportunities in post-secondary institutions, 
202.16  workplaces, and the community, and the skills and knowledge 
202.17  necessary to succeed; 
202.18     (13) providing educational technology, including 
202.19  interactive television networks and other distance learning 
202.20  methods, to ensure access to a broad variety of work-based 
202.21  learning opportunities; 
202.22     (14) including students with disabilities in a district's 
202.23  vocational or applied learning program and ways to serve at-risk 
202.24  learners through collaboration with area learning centers under 
202.25  sections 124C.45 to 124C.49, or other alternative programs; and 
202.26     (15) providing a warranty to employers, post-secondary 
202.27  education programs, and other post-secondary training programs, 
202.28  that learners successfully completing a high school work-based 
202.29  or applied learning program will be able to apply the knowledge 
202.30  and work skills included in the program outcomes or graduation 
202.31  requirements.  The warranty shall require education and training 
202.32  programs to continue to work with those learners that need 
202.33  additional skill development until they can demonstrate 
202.34  achievement of the program outcomes or graduation requirements. 
202.35     Subd. 4.  [ANNUAL REPORTS.] A local education and 
202.36  employment transitions partnership shall must annually publish a 
203.1   report and submit information to the council as required.  The 
203.2   report shall must include information required by the council 
203.3   for the statewide system performance assessment.  The 
203.4   report shall must be available to the public in the communities 
203.5   served by the local education and employment transitions 
203.6   partnership.  The report shall must be published no later than 
203.7   September 1 of the year following the year in which the data was 
203.8   collected. 
203.9      Sec. 103.  [REPEALER.] 
203.10     Minnesota Statutes 1996, section 126.84, subdivision 6, is 
203.11  repealed. 
203.12     Sec. 104.  [INSTRUCTION TO REVISOR.] 
203.13     The revisor of statutes shall renumber each section of 
203.14  Minnesota Statutes listed in column A with the number listed in 
203.15  column B.  The revisor shall also make necessary cross-reference 
203.16  changes consistent with the renumbering. 
203.17        Column A                        Column B 
203.18       126A.01                        115A.073
203.19       126A.06                        115A.074
203.20       123.70                         120C.05
203.21       123.701                        120C.06
203.22       123.702, subd. 1               120C.07, subd. 1
203.23                subd. 1a                       subd. 2
203.24                subd. 1b                       subd. 3
203.25                subd. 2                        subd. 4
203.26                subd. 3                        subd. 5
203.27                subd. 4                        subd. 6
203.28                subd. 4a                       subd. 7
203.29                subd. 5                        subd. 8
203.30                subd. 6                        subd. 9
203.31                subd. 7                        subd. 10
203.32       123.704                        120C.08
203.33       123.7045                       120C.09
203.34       123.35, subd. 17               120C.11
203.35       126.202                        120C.12
203.36       121.203                        120C.13
204.1        121.831                        120C.20
204.2        124.2615                       120C.21
204.3        121.835                        120C.22
204.4        121.882, subd. 1               120C.25, subd. 1
204.5                 subd. 2                        subd. 2
204.6                 subd. 2a                       subd. 3
204.7                 subd. 2b                       subd. 4
204.8                 subd. 3                        subd. 5
204.9                 subd. 4                        subd. 6
204.10                subd. 5                        subd. 7
204.11                subd. 6                        subd. 8
204.12                subd. 7                        subd. 9
204.13                subd. 7a                       subd. 10
204.14                subd. 8                        subd. 11
204.15                subd. 9                        subd. 12
204.16       124.2711, subd. 1              120C.26, subd. 1
204.17                 subd. 2                       subd. 2
204.18                 subd. 2a                      subd. 3
204.19                 subd. 3                       subd. 4
204.20                 subd. 4                       subd. 5
204.21                 subd. 5                       subd. 6
204.22                 subd. 6                       subd. 7
204.23       124.2712                       120C.27
204.24       121.85                         120C.30
204.25       121.88, subd. 1                120C.31, subd. 1
204.26               subd. 2                         subd. 2
204.27               subd. 2a                        subd. 3
204.28               subd. 3                         subd. 4
204.29               subd. 4                         subd. 5
204.30               subd. 5                         subd. 6
204.31               subd. 6                         subd. 7
204.32               subd. 7                         subd. 8
204.33               subd. 8                         subd. 9
204.34               subd. 9                         subd. 10
204.35               subd. 10                        subd. 11
204.36       124.2713, subd. 1              120C.32, subd. 1
205.1                  subd. 2                       subd. 2
205.2                  subd. 3                       subd. 3
205.3                  subd. 5                       subd. 4
205.4                  subd. 6                       subd. 5
205.5                  subd. 6a                      subd. 6
205.6                  subd. 6b                      subd. 7
205.7                  subd. 7                       subd. 8
205.8                  subd. 8                       subd. 9
205.9                  subd. 9                       subd. 10
205.10                 subd. 10                      subd. 11
205.11       124.2714                       120C.33
205.12       124.2716                       120C.34
205.13       121.8355, subd. 1              120C.35, subd. 1
205.14                 subd. 2                       subd. 2
205.15                 subd. 2a                      subd. 3
205.16                 subd. 3                       subd. 4
205.17                 subd. 3a                      subd. 5
205.18                 subd. 4                       subd. 6
205.19                 subd. 5                       subd. 7
205.20                 subd. 6                       subd. 8
205.21                 subd. 7                       subd. 9
205.22       125.70                         120C.37
205.23       125.701                        120C.38
205.24       125.702                        120C.39
205.25       125.703                        120C.40
205.26       125.704                        120C.41
205.27       125.705                        120C.42
205.28       125.276, subd. 1               120C.43, subd. 1
205.29                subd. 2a                       subd. 2
205.30                subd. 3                        subd. 3
205.31                subd. 4                        subd. 4
205.32       124A.291                       120C.44
205.33       126.77                         120C.45
205.34       126.78                         120C.46
205.35       126.79                         120C.47
205.36       126.84                         120C.48
206.1        121.615                        120C.50
206.2        121.70                         120C.51
206.3        121.701                        120C.52
206.4        121.702                        120C.53
206.5        121.704                        120C.54
206.6        121.705                        120C.55
206.7        121.706                        120C.56
206.8        121.707                        120C.57
206.9        121.708                        120C.58
206.10       121.709                        120C.59
206.11       121.710                        120C.60
206.12       126B.01                        120C.62
206.13       126B.03, subd. 2               120C.63, subd. 1
206.14                subd. 3                        subd. 2
206.15       126B.06                        120C.64
206.16       126B.10                        120C.65
206.17       121.885                        120C.67
206.18       123.35, subd. 8                120C.70
206.19       124.26, subd. 1b               120C.71, subd. 1
206.20               subd. 1c                        subd. 2
206.21               subd. 2                         subd. 3
206.22       124.2601                       120C.72
206.23       124.261                        120C.73
206.24       124.2605                       120C.74
206.25       124.2715                       120C.76
206.26       121.201                        120C.77
206.27       121.612                        120C.82
206.28       124.255                        120C.84
206.29       124C.10                        120C.86
206.30       124C.11                        120C.87
206.31       124C.12                        120C.88
206.32                             ARTICLE 4 
206.33                            CHAPTER 121A 
206.34                        STATE ADMINISTRATION 
206.35     Section 1.  Minnesota Statutes 1996, section 121.1115, 
206.36  subdivision 1, is amended to read: 
207.1      Subdivision 1.  [EDUCATIONAL ACCOUNTABILITY AND PUBLIC 
207.2   REPORTING.] Consistent with the state board of education process 
207.3   to adopt a results-oriented graduation rule under section 
207.4   121.11, subdivision 7c, the state board of education and the 
207.5   department of children, families, and learning, in consultation 
207.6   with education and other system stakeholders, shall must 
207.7   establish a coordinated and comprehensive system of educational 
207.8   accountability and public reporting that promotes higher 
207.9   academic achievement.  
207.10     Sec. 2.  Minnesota Statutes 1996, section 121.1115, 
207.11  subdivision 2, is amended to read: 
207.12     Subd. 2.  [STATISTICAL ADJUSTMENTS.] In developing policies 
207.13  and assessment processes to hold schools and school districts 
207.14  accountable for high levels of academic standards, including the 
207.15  profile of learning, the commissioner shall aggregate student 
207.16  data over time to report student performance levels measured at 
207.17  the school district, regional, or statewide level.  When 
207.18  collecting and reporting the data, the commissioner shall:  (1) 
207.19  acknowledge the impact of significant demographic factors such 
207.20  as residential instability, the number of single parent 
207.21  families, parents' level of education, and parents' income level 
207.22  on school outcomes; and (2) organize and report the data so that 
207.23  state and local policymakers can understand the educational 
207.24  implications of changes in districts' demographic profiles over 
207.25  time.  Any report the commissioner disseminates containing 
207.26  summary data on student performance must integrate student 
207.27  performance and the demographic factors that strongly correlate 
207.28  with that performance.  
207.29     Sec. 3.  Minnesota Statutes 1996, section 124.078, is 
207.30  amended to read: 
207.31     124.078 [PERMANENT SCHOOL FUND ADVISORY COMMITTEE.] 
207.32     A state permanent school fund advisory committee is 
207.33  established to advise the department of natural resources on the 
207.34  management of permanent school fund land, which is held in trust 
207.35  for the school districts of the state.  The advisory committee 
207.36  shall must consist of the following persons or their designees:  
208.1   the chairs of the education committees of the legislature, the 
208.2   chairs of the senate committee on finance and house committee on 
208.3   ways and means, the commissioner of children, families, and 
208.4   learning, one superintendent from a nonmetropolitan district, 
208.5   and one superintendent from a metropolitan area district.  The 
208.6   school district superintendents shall be appointed by the 
208.7   commissioner of children, families, and learning.  
208.8      The advisory committee shall review the policies of the 
208.9   department of natural resources on management of school trust 
208.10  fund lands and shall recommend necessary changes in policy and 
208.11  implementation in order to ensure provident utilization of the 
208.12  permanent school fund lands.  
208.13     Sec. 4.  Minnesota Statutes 1996, section 124.08, is 
208.14  amended to read: 
208.15     124.08 [SCHOOL ENDOWMENT FUND,; DESIGNATION.] 
208.16     For the purpose of aid to public schools, a school 
208.17  endowment fund is established.  
208.18     The school endowment fund shall consist of the income from 
208.19  the permanent school fund.  The commissioner of children, 
208.20  families, and learning may accept for and on behalf of the 
208.21  permanent school fund a donation of cash, marketable securities, 
208.22  or other personal property.  A noncash donation, other than a 
208.23  donation of marketable securities, must be disposed of for cash 
208.24  as soon as the commissioner can obtain fair market value for the 
208.25  donation.  Marketable securities may be disposed of at the 
208.26  discretion of the state board of investment consistent with 
208.27  sections 11A.16 and 11A.24.  A cash donation and the cash 
208.28  receipts from a donation disposed of for cash must be credited 
208.29  immediately to the permanent school fund.  Earnings from 
208.30  marketable securities are earnings of the permanent school fund. 
208.31     Sec. 5.  Minnesota Statutes 1996, section 124.09, is 
208.32  amended to read: 
208.33     124.09 [SCHOOL ENDOWMENT FUND,; APPORTIONMENT.] 
208.34     The commissioner shall apportion the school endowment fund 
208.35  shall be apportioned semiannually by the commissioner, on the 
208.36  first Monday in March and September in each year, to districts 
209.1   whose schools have been in session at least nine months.  The 
209.2   apportionment shall be in proportion to the number of pupils in 
209.3   average daily membership during the preceding year; provided, 
209.4   that.  The apportionment shall not be paid to a district for 
209.5   pupils for whom tuition is received by the district. 
209.6      Sec. 6.  Minnesota Statutes 1996, section 124.10, 
209.7   subdivision 1, is amended to read: 
209.8      Subdivision 1.  [COPY TO COMMISSIONER OF FINANCE.] The 
209.9   commissioner shall furnish a copy of the apportionment of the 
209.10  school endowment fund shall be furnished by the commissioner to 
209.11  the commissioner of finance, who thereupon shall draw warrants 
209.12  on the state treasury, payable to the several districts, for the 
209.13  amount due each district.  There is hereby annually appropriated 
209.14  from the school endowment fund the amount of such apportionments.
209.15     Sec. 7.  Minnesota Statutes 1996, section 124.10, 
209.16  subdivision 2, is amended to read: 
209.17     Subd. 2.  [APPORTIONMENTS TO DISTRICTS.] The county auditor 
209.18  each year shall apportion to the school districts within the 
209.19  county the amount received from power line taxes under section 
209.20  273.42, liquor licenses, fines, estrays, and other sources 
209.21  belonging to the general fund.  The apportionments shall must be 
209.22  made in proportion to each district's net tax capacity within 
209.23  the county in the prior year.  The apportionments shall must be 
209.24  made and amounts distributed to the school districts at the 
209.25  times provided for the settlement and distribution of real and 
209.26  personal property taxes under sections 276.09, 276.11, and 
209.27  276.111, except that all of the power line taxes apportioned to 
209.28  a school district from the county school fund shall must be 
209.29  included in the first half distribution of property taxes to the 
209.30  school district.  No district shall receive any part of the 
209.31  money received from liquor licenses unless all sums paid for 
209.32  such licenses in such district are apportioned to the county 
209.33  school fund.  
209.34     Sec. 8.  Minnesota Statutes 1996, section 124.12, is 
209.35  amended to read: 
209.36     124.12 [MANNER OF PAYMENT OF STATE AIDS.] 
210.1      Subd. 2.  It shall be the duty of the commissioner of 
210.2   children, families, and learning to deliver to the commissioner 
210.3   of finance a certificate for each district entitled to receive 
210.4   state aid under the provisions of this chapter.  Upon the 
210.5   receipt of such certificate, it shall be the duty of the 
210.6   commissioner of finance to draw a warrant upon the state 
210.7   treasurer in favor of the district for the amount shown by each 
210.8   certificate to be due to the district.  The commissioner of 
210.9   finance shall transmit such warrants to the district together 
210.10  with a copy of the certificate prepared by the commissioner. 
210.11     Sec. 9.  Minnesota Statutes 1996, section 124.14, 
210.12  subdivision 2, is amended to read: 
210.13     Subd. 2.  [ERRORS IN DISTRIBUTION.] On determining that the 
210.14  amount of state aid distributed to a school district is in 
210.15  error, the commissioner is authorized to adjust the amount of 
210.16  aid consistent with this subdivision.  On determining that the 
210.17  amount of aid is in excess of the school district's entitlement, 
210.18  the commissioner is authorized to recover the amount of the 
210.19  excess by any appropriate means.  Notwithstanding the fiscal 
210.20  years designated by the appropriation, the excess may be 
210.21  recovered by reducing future aid payments to the school 
210.22  district.  Notwithstanding any law to the contrary, if the aid 
210.23  reduced is not of the same type as that overpaid, the school 
210.24  district shall must adjust all necessary financial accounts to 
210.25  properly reflect all revenues earned in accordance with the 
210.26  uniform financial accounting and reporting standards pursuant to 
210.27  sections 121.904 to 121.917.  Notwithstanding the fiscal years 
210.28  designated by the appropriation, on determining that the amount 
210.29  of an aid paid is less than the school district's entitlement, 
210.30  the commissioner is authorized to increase such aid from the 
210.31  current appropriation. 
210.32     Sec. 10.  Minnesota Statutes 1996, section 124.14, 
210.33  subdivision 3, is amended to read: 
210.34     Subd. 3.  [AUDITS.] The commissioner shall establish 
210.35  procedures for conducting and shall conduct audits of school 
210.36  district records and files for the purpose of verifying school 
211.1   district pupil counts, levy limitations, and aid entitlements.  
211.2   The commissioner shall establish procedures for selecting and 
211.3   shall select districts to be audited.  Disparities, if any, 
211.4   between pupil counts, levy limitations, or aid entitlements 
211.5   determined by audit of school district records and files and 
211.6   data reported by school districts in reports, claims and other 
211.7   documents shall be reviewed by the commissioner who shall order 
211.8   increases or decreases accordingly.  Whenever possible, the 
211.9   commissioner shall audit at least 25 districts each year 
211.10  pursuant to this subdivision. 
211.11     Sec. 11.  Minnesota Statutes 1996, section 124.14, 
211.12  subdivision 3a, is amended to read: 
211.13     Subd. 3a.  [LESS THAN 25 DISTRICTS AUDITED.] If the 
211.14  commissioner audits fewer than 25 school districts in a fiscal 
211.15  year pursuant to subdivision 3, the commissioner shall report 
211.16  the reasons for the number audited to the following legislative 
211.17  committees:  house education, house appropriations, senate 
211.18  education, and senate finance. 
211.19     Sec. 12.  Minnesota Statutes 1996, section 124.14, 
211.20  subdivision 4, is amended to read: 
211.21     Subd. 4.  [FINAL DECISION AND RECORDS.] A reduction of aid 
211.22  under this section may be appealed to the state board of 
211.23  education and its decision shall be final.  Public schools shall 
211.24  at all times be open to the inspection of the commissioner, and. 
211.25  The accounts and records of any district shall must be open to 
211.26  inspection by the state auditor, the state board, or the 
211.27  commissioner for the purpose of audits conducted under this 
211.28  section.  Each district shall keep for a minimum of three years 
211.29  at least the following:  (1) identification of the annual 
211.30  session days held, together with a record of the length of each 
211.31  session day, (2) a record of each pupil's daily attendance, with 
211.32  entrance and withdrawal dates, and (3) identification of the 
211.33  pupils transported who are reported for transportation aid.  
211.34     Sec. 13.  Minnesota Statutes 1996, section 124.14, 
211.35  subdivision 6, is amended to read: 
211.36     Subd. 6.  [ADJUSTMENT APPROPRIATION.] There is annually 
212.1   appropriated from the general fund to the department of 
212.2   children, families, and learning any additional amounts 
212.3   necessary for the adjustments made pursuant to section 124.155, 
212.4   subdivision 1.  
212.5      Sec. 14.  Minnesota Statutes 1996, section 124.14, 
212.6   subdivision 7, is amended to read: 
212.7      Subd. 7.  [APPROPRIATION TRANSFERS.] If a direct 
212.8   appropriation from the general fund to the department of 
212.9   children, families, and learning for any education aid or grant 
212.10  authorized in this chapter and chapters 121, 123, 124A, 124C, 
212.11  125, 126, and 134 exceeds the amount required, the commissioner 
212.12  of children, families, and learning may transfer the excess to 
212.13  any education aid or grant appropriation that is insufficient.  
212.14  However, section 124A.032 applies to a deficiency in the direct 
212.15  appropriation for general education aid.  Excess appropriations 
212.16  shall must be allocated proportionately among aids or grants 
212.17  that have insufficient appropriations.  The commissioner of 
212.18  finance shall make the necessary transfers among appropriations 
212.19  according to the determinations of the commissioner of children, 
212.20  families, and learning.  If the amount of the direct 
212.21  appropriation for the aid or grant plus the amount transferred 
212.22  according to this subdivision is insufficient, the commissioner 
212.23  shall prorate the available amount among eligible districts.  
212.24  The state is not obligated for any additional amounts.  
212.25     Sec. 15.  Minnesota Statutes 1996, section 124.14, 
212.26  subdivision 8, is amended to read: 
212.27     Subd. 8.  [HEALTH AND SAFETY AID TRANSFER.] The 
212.28  commissioner of children, families, and learning, with the 
212.29  approval of the commissioner of finance, annually may transfer 
212.30  an amount from the appropriation for health and safety aid to 
212.31  the appropriation for debt service aid for the same fiscal 
212.32  year.  The amount of the transfer equals the amount necessary to 
212.33  fund any shortage in the debt service aid appropriation created 
212.34  by a data correction that occurs between November 1 and June 30 
212.35  of the preceding fiscal year. 
212.36     Sec. 16.  Minnesota Statutes 1996, section 124.15, 
213.1   subdivision 2, is amended to read: 
213.2      Subd. 2.  [VIOLATIONS OF LAW.] The commissioner shall 
213.3   reduce the district's special state aid for any school year 
213.4   whenever the board of the district authorizes or permits within 
213.5   the district violations of law within the district by: 
213.6      (1) employment in a public school of the district of 
213.7   employing a teacher who does not hold a valid teaching license 
213.8   or permit, or in a public school; 
213.9      (2) noncompliance with a mandatory rule of general 
213.10  application promulgated by the state board in accordance with 
213.11  statute in the absence of, unless special circumstances 
213.12  making make enforcement thereof inequitable, contrary to the 
213.13  best interest of, or imposing impose an extraordinary hardship 
213.14  on, the district affected, or, or the rule is contrary to the 
213.15  district's best interests; 
213.16     (3) the district's continued performance by the district of 
213.17  a contract made for the rental of rooms or buildings for school 
213.18  purposes or for the rental of any facility owned or operated by 
213.19  or under the direction of any private organization, which if the 
213.20  contract has been disapproved where, the time for review of the 
213.21  determination of disapproval has expired, and no proceeding for 
213.22  review is pending, or; 
213.23     (4) any practice which is a violation of sections 1 and 2 
213.24  of article 13 of the Constitution of the state of Minnesota, or; 
213.25     (5) failure to provide reasonably provide for the a 
213.26  resident pupil's school attendance to which a resident pupil is 
213.27  entitled under Minnesota Statutes,; or 
213.28     (6) noncompliance with state laws prohibiting 
213.29  discrimination because of race, color, creed, religion, national 
213.30  origin, sex, age, marital status, status with regard to public 
213.31  assistance or disability, as defined in section 363.03,. 
213.32  the special state aid to which a district is otherwise entitled 
213.33  for any school year shall be reduced The reduction must be made 
213.34  in the amount and upon the procedure provided in this section 
213.35  or, in the case of the violation stated in clause (1), upon the 
213.36  procedure provided in section 124.19, subdivision 3. 
214.1      Sec. 17.  Minnesota Statutes 1996, section 124.15, 
214.2   subdivision 2a, is amended to read: 
214.3      Subd. 2a.  [ASSURANCE OF COMPLIANCE.] After consultation 
214.4   with the commissioner of human rights, the state board of 
214.5   education shall adopt rules in conformance with chapter 
214.6   14 which.  The rules must direct school districts to file with 
214.7   the commissioner of children, families, and learning assurances 
214.8   of compliance with state and federal laws prohibiting 
214.9   discrimination and which specify the information required to be 
214.10  submitted in support of the assurances.  The commissioner of 
214.11  children, families, and learning shall provide copies of the 
214.12  assurances and the supportive information to the commissioner of 
214.13  human rights.  If, after reviewing the assurances and the 
214.14  supportive information it appears that one or more violations of 
214.15  the Minnesota human rights act are occurring in the district, 
214.16  the commissioner of human rights shall notify the commissioner 
214.17  of children, families, and learning of the violations, and the 
214.18  commissioner of children, families, and learning may then 
214.19  proceed pursuant to subdivision 3. 
214.20     Sec. 18.  Minnesota Statutes 1996, section 124.15, 
214.21  subdivision 3, is amended to read: 
214.22     Subd. 3.  [NOTICE TO BOARD.] When it appears that one or 
214.23  more of the violations an enumerated violation is occurring in a 
214.24  district, the commissioner shall forthwith notify the board of 
214.25  that district in writing thereof.  Such The notice shall must 
214.26  specify the violations, set a reasonable time within which the 
214.27  district shall must correct the specified violations, describe 
214.28  the correction required, and advise that if the correction is 
214.29  not made within the time allowed, special state aids to the 
214.30  district will be reduced.  The time allowed for correction may 
214.31  be extended by the commissioner if there is reasonable ground 
214.32  therefor.  
214.33     Sec. 19.  Minnesota Statutes 1996, section 124.15, 
214.34  subdivision 4, is amended to read: 
214.35     Subd. 4.  [DISPUTE VIOLATIONS; HEARING.] The board to which 
214.36  such notice is given may, by a majority vote of the whole board, 
215.1   decide to dispute that the specified violation exists or that 
215.2   the time allowed is reasonable or the correction specified is 
215.3   correct, or that the commissioner may reduce aids, in which case 
215.4   written notice of such decision shall be given.  The board must 
215.5   give the commissioner written notice of the decision.  If the 
215.6   commissioner, after such further investigation as the 
215.7   commissioner deems necessary, adheres to the previous notice, 
215.8   such the board shall be entitled to a hearing by the state board 
215.9   , in which event a.  The state board must set a hearing time and 
215.10  place shall be set therefor and notice and the board of the 
215.11  district must be given notice by mail to the board of the 
215.12  district.  The state board shall must adopt rules governing the 
215.13  proceedings for hearings which shall.  The hearings must be 
215.14  designed to give a full and fair hearing and permit interested 
215.15  parties an opportunity to produce evidence relating to the 
215.16  issues involved.  Such The rules may provide that any question 
215.17  of fact to be determined upon such review at the hearing may be 
215.18  referred to one or more members of the board or to an employee 
215.19  of the state board acting as a referee to hear evidence and 
215.20  report to the state board the testimony taken to the state board.
215.21  The state board, or any a person designated to receive evidence 
215.22  upon a review under this act at a hearing, shall have the same 
215.23  right to issue subpoenas and administer oaths and parties to the 
215.24  review hearing shall have the same right to subpoenas issued as 
215.25  are accorded with respect to allowed for proceedings before the 
215.26  industrial commission.  There shall be A stenographic 
215.27  record must be made of all testimony given and other proceedings 
215.28  during such the hearing, and as far as.  If practicable, rules 
215.29  governing reception of evidence in courts shall obtain apply to 
215.30  the hearing.  The decision of the state board shall must be in 
215.31  writing and the controlling facts upon which the decision is 
215.32  made shall must be stated in sufficient detail to apprise the 
215.33  parties and the reviewing court the basis and reason of the 
215.34  decision.  The decision shall must be confined to whether or not 
215.35  the specified violations or any of them existed at the date of 
215.36  the commissioner's first notice, whether such the violations as 
216.1   did exist were corrected within the time permitted, and whether 
216.2   such the violations require reduction of the state aids under 
216.3   this section.  
216.4      Sec. 20.  Minnesota Statutes 1996, section 124.15, 
216.5   subdivision 5, is amended to read: 
216.6      Subd. 5.  [VIOLATION; AID REDUCTION.] The commissioner 
216.7   shall not reduce state aids payable to the district if the 
216.8   violation specified is corrected within the time permitted, or 
216.9   if the commissioner on being notified of the district board's 
216.10  decision to dispute decides the violation does not exist, or if 
216.11  the state board decides after hearing no violation specified in 
216.12  the commissioner's notice existed at the time of it the notice, 
216.13  or that any that existed the violations were corrected within 
216.14  the time permitted, there shall be no reduction of state aids 
216.15  payable to the school district.  Otherwise state aids payable to 
216.16  the district for the year in which the violation occurred shall 
216.17  be reduced as follows:  The total amount of state aids to which 
216.18  the district may be entitled shall be reduced in the proportion 
216.19  that the period during which a specified violation continued, 
216.20  computed from the last day of the time permitted for correction, 
216.21  bears to the total number of days school is held in the district 
216.22  during the year in which a violation exists, multiplied by 60 
216.23  percent of the basic revenue, as defined in section 124A.22, 
216.24  subdivision 2, of the district for that year. 
216.25     Sec. 21.  Minnesota Statutes 1996, section 124.15, 
216.26  subdivision 6, is amended to read: 
216.27     Subd. 6.  [REDUCTION IN AIDS PAYABLE.] Reductions in aid 
216.28  under this section and section 124.19 shall must be from general 
216.29  education aid.  If there is not sufficient general education aid 
216.30  remaining to be paid for the school year in which the violation 
216.31  occurred, the reduction shall be from the other aids listed in 
216.32  section 124.155, subdivision 2, that are payable to the district 
216.33  for that year in the order in which the aids are listed in 
216.34  section 124.155, subdivision 2.  If there is not a sufficient 
216.35  amount of state aids remaining payable to the district for the 
216.36  school year in which the violation occurred to permit the full 
217.1   amount of reduction required, that part of the required 
217.2   reduction not taken from that school year's aids will be taken 
217.3   from the state aids payable to the district for the next school 
217.4   year, and the reduction will be made from the various aids 
217.5   payable for the next year in the order above specified. 
217.6      Sec. 22.  Minnesota Statutes 1996, section 124.15, 
217.7   subdivision 8, is amended to read: 
217.8      Subd. 8.  [NOTICE TO DISTRICT.] Any notice to be given to 
217.9   the board of a district will be deemed given when a copy thereof 
217.10  is mailed, registered, to the superintendent of the district, if 
217.11  there is a superintendent, and to the clerk of the board of the 
217.12  district, unless.  If it is shown that neither the 
217.13  superintendent nor the clerk in fact received such notice in the 
217.14  ordinary course of mail, in which event then the time for 
217.15  correction will be accordingly extended by the commissioner so 
217.16  that a reasonable time will be allowed from actual receipt of 
217.17  notice for correction.  If notice is sent by the commissioner 
217.18  with respect to a violation which is continued by the district 
217.19  in a succeeding year, no separate notice for that violation for 
217.20  the succeeding year will be required.  Proceedings initiated by 
217.21  such notice shall include any continuing violation 
217.22  notwithstanding that a part thereof occurs in a year different 
217.23  from that the year in which it started.  The commissioner may 
217.24  require reasonable proof of the time that a violation ceased for 
217.25  the determination of the amount of aids to be withheld.  Costs 
217.26  and disbursements of the review by the district court, exclusive 
217.27  of those incurred in the administrative proceedings, may be 
217.28  taxed against the losing party and in the event taxed against 
217.29  the state shall must be paid from the appropriations made to the 
217.30  department for the payment of special state aids. 
217.31     Sec. 23.  Minnesota Statutes 1997 Supplement, section 
217.32  124.155, subdivision 1, is amended to read: 
217.33     Subdivision 1.  [AMOUNT OF ADJUSTMENT.] Each year state 
217.34  aids and credits enumerated in subdivision 2 payable to any 
217.35  school district for that fiscal year shall be adjusted, in the 
217.36  order listed, by an amount equal to (1) the amount the district 
218.1   recognized as revenue for the prior fiscal year pursuant to 
218.2   section 121.904, subdivision 4a, clause (b), minus (2) the 
218.3   amount the district recognizes as revenue for the current fiscal 
218.4   year pursuant to section 121.904, subdivision 4a, clause (b).  
218.5   For the purposes of making the aid adjustment under this 
218.6   subdivision, the amount the district recognizes as revenue for 
218.7   either the prior fiscal year or the current fiscal year pursuant 
218.8   to section 121.904, subdivision 4a, clause (b), shall not 
218.9   include any amount levied pursuant to sections 124.315, 
218.10  subdivision 4, 124.912, subdivisions 1, paragraph (2), 2, and 3, 
218.11  124.916, subdivisions 1, 2, and 3, paragraphs 4, 5, and 6, 
218.12  124.918, subdivision 6, and 124A.03, subdivision 2.  Payment 
218.13  from the permanent school fund shall not be adjusted pursuant to 
218.14  this section.  The school district shall be notified of the 
218.15  amount of the adjustment made to each payment pursuant to this 
218.16  section. 
218.17     Sec. 24.  Minnesota Statutes 1997 Supplement, section 
218.18  124.155, subdivision 2, is amended to read: 
218.19     Subd. 2.  [ADJUSTMENT TO AIDS.] (a) The amount specified in 
218.20  subdivision 1 shall be used to adjust the following state aids 
218.21  and credits in the order listed: 
218.22     (1) general education aid authorized in section 124A.23; 
218.23     (2) secondary vocational aid authorized in section 124.573; 
218.24     (3) special education aid authorized in sections 124.32 and 
218.25  124.3201; 
218.26     (4) school-to-work program aid for children with a 
218.27  disability authorized in section 124.574; 
218.28     (5) aid for pupils of limited English proficiency 
218.29  authorized in section 124.273; 
218.30     (6) transportation aid authorized in section 124.225; 
218.31     (7) community education programs aid authorized in section 
218.32  124.2713; 
218.33     (8) adult education aid authorized in section 124.26; 
218.34     (9) early childhood family education aid authorized in 
218.35  section 124.2711; 
218.36     (10) capital expenditure aid authorized in section 124.83; 
219.1      (11) school district cooperation aid authorized in section 
219.2   124.2727; 
219.3      (12) assurance of mastery aid according to section 124.311; 
219.4      (13) homestead and agricultural credit aid, disparity 
219.5   credit and aid, and changes to credits for prior year 
219.6   adjustments according to section 273.1398, subdivisions 2, 3, 4, 
219.7   and 7; 
219.8      (14) attached machinery aid authorized in section 273.138, 
219.9   subdivision 3; 
219.10     (15) alternative delivery aid authorized in section 
219.11  124.322; 
219.12     (16) special education equalization aid authorized in 
219.13  section 124.321; 
219.14     (17) special education excess cost aid authorized in 
219.15  section 124.323; 
219.16     (18) learning readiness aid authorized in section 124.2615; 
219.17  and 
219.18     (19) cooperation-combination aid authorized in section 
219.19  124.2725. 
219.20     (b) The commissioner of children, families, and learning 
219.21  shall schedule the timing of the adjustments to state aids and 
219.22  credits specified in subdivision 1, as close to the end of the 
219.23  fiscal year as possible. 
219.24     Sec. 25.  Minnesota Statutes 1996, section 124.195, 
219.25  subdivision 1, is amended to read: 
219.26     Subdivision 1.  [APPLICABILITY.] This section applies to 
219.27  all aids or credits paid by the commissioner of children, 
219.28  families, and learning from the general fund to school districts.
219.29     Sec. 26.  Minnesota Statutes 1997 Supplement, section 
219.30  124.195, subdivision 2, is amended to read: 
219.31     Subd. 2.  [DEFINITIONS.] (a) The term "other district 
219.32  receipts" means payments by county treasurers pursuant to 
219.33  section 276.10, apportionments from the school endowment fund 
219.34  pursuant to section 124.09, apportionments by the county auditor 
219.35  pursuant to section 124.10, subdivision 2, and payments to 
219.36  school districts by the commissioner of revenue pursuant to 
220.1   chapter 298.  
220.2      (b) The term "cumulative amount guaranteed" means the sum 
220.3   of the following: 
220.4      (1) one-third of the final adjustment payment according to 
220.5   subdivision 6; plus 
220.6      (2) the product of 
220.7      (i) the cumulative disbursement percentage shown in 
220.8   subdivision 3; times 
220.9      (ii) the sum of 
220.10     90 percent of the estimated aid and credit entitlements 
220.11  paid according to subdivision 10; plus 
220.12     100 percent of the entitlements paid according to 
220.13  subdivisions 8 and 9; plus 
220.14     the other district receipts; plus 
220.15     the final adjustment payment according to subdivision 6.  
220.16     (c) The term "payment date" means the date on which state 
220.17  payments to school districts are made by the electronic funds 
220.18  transfer method.  If a payment date falls on a Saturday, a 
220.19  Sunday, or a weekday which is a legal holiday, the payment shall 
220.20  be made on the immediately following business day.  The 
220.21  commissioner of children, families, and learning may make 
220.22  payments on dates other than those listed in subdivision 3, but 
220.23  only for portions of payments from any preceding payment dates 
220.24  which could not be processed by the electronic funds transfer 
220.25  method due to documented extenuating circumstances.  
220.26     Sec. 27.  Minnesota Statutes 1996, section 124.195, 
220.27  subdivision 3, is amended to read: 
220.28     Subd. 3.  [PAYMENT DATES AND PERCENTAGES.] The commissioner 
220.29  of children, families, and learning shall pay to a school 
220.30  district on the dates indicated an amount computed as follows:  
220.31  the cumulative amount guaranteed minus the sum of (a) the 
220.32  district's other district receipts through the current payment, 
220.33  and (b) the aid and credit payments through the immediately 
220.34  preceding payment.  For purposes of this computation, the 
220.35  payment dates and the cumulative disbursement percentages are as 
220.36  follows:  
221.1                            Payment date               Percentage 
221.2   Payment 1    July 15:                                   2.25
221.3   Payment 2    July 30:                                   4.50 
221.4   Payment 3    August 15:  the greater of (a) the final        
221.5                adjustment for the prior fiscal year for
221.6                the state paid property tax credits
221.7                established in section 273.1392, or
221.8                (b) the amount needed to provide 6.75 percent
221.9   Payment 4    August 30:                                 9.0 
221.10  Payment 5    September 15:                             12.75 
221.11  Payment 6    September 30:                             16.50
221.12  Payment 7    October 15:  the greater of (a) one-half of
221.13               the final adjustment for the prior fiscal year
221.14               for all aid entitlements except state paid
221.15               property tax credits, or (b) the amount needed to
221.16               provide 20.75 percent
221.17  Payment 8    October 30:  the greater of (a) one-half of the
221.18               final adjustment for the prior fiscal year for all
221.19               aid entitlements except state paid property
221.20               tax credits, or (b) the amount needed
221.21               to provide 25.0 percent
221.22  Payment 9    November 15:                               31.0
221.23  Payment 10   November 30:                               37.0
221.24  Payment 11   December 15:                               40.0
221.25  Payment 12   December 30:                               43.0
221.26  Payment 13   January 15:                                47.25
221.27  Payment 14   January 30:                                51.5
221.28  Payment 15   February 15:                               56.0
221.29  Payment 16   February 28:                               60.5
221.30  Payment 17   March 15:                                  65.25
221.31  Payment 18   March 30:                                  70.0
221.32  Payment 19   April 15:                                  73.0
221.33  Payment 20   April 30:                                  79.0 
221.34  Payment 21   May 15:                                    82.0 
221.35  Payment 22   May 30:                                    90.0 
221.36  Payment 23   June 20:                                  100.0
222.1      Sec. 28.  Minnesota Statutes 1996, section 124.195, 
222.2   subdivision 3a, is amended to read: 
222.3      Subd. 3a.  [APPEAL.] The commissioner, in consultation with 
222.4   the commissioner of finance, may revise the payment dates and 
222.5   percentages in subdivision 3 for a district if it is determined 
222.6   that there is an emergency or there are serious cash flow 
222.7   problems in the district that cannot be resolved by issuing 
222.8   warrants or other forms of indebtedness.  The commissioner shall 
222.9   establish a process and criteria for school districts to appeal 
222.10  the payment dates and percentages established in subdivision 3.  
222.11     Sec. 29.  Minnesota Statutes 1996, section 124.195, 
222.12  subdivision 3b, is amended to read: 
222.13     Subd. 3b.  [CASH FLOW ADJUSTMENT.] During each year in 
222.14  which the cash flow low points for August, September, and 
222.15  October estimated by the commissioner of finance for invested 
222.16  treasurer's cash exceeds $360,000,000, the commissioner of 
222.17  children, families, and learning shall increase the cumulative 
222.18  disbursement percentages established in subdivision 3 to the 
222.19  following amounts: 
222.20  Payment 3   August 15:                         12.75 percent
222.21  Payment 4   August 30:                         15.00 percent
222.22  Payment 5   September 15:                      17.25 percent
222.23  Payment 6   September 30:                      19.50 percent
222.24  Payment 7   October 15:                        21.75 percent
222.25     Sec. 30.  Minnesota Statutes 1996, section 124.195, 
222.26  subdivision 4, is amended to read: 
222.27     Subd. 4.  [PAYMENT LIMIT.] Subdivision 3 does not authorize 
222.28  the commissioner of children, families, and learning to pay to a 
222.29  district's operating funds an amount of state general fund cash 
222.30  that exceeds the sum of:  
222.31     (a) its estimated aid and credit payments for the current 
222.32  year according to subdivision 10; 
222.33     (b) its actual aid payments according to subdivisions 8 and 
222.34  9; and 
222.35     (c) the final adjustment payment for the prior year.  
222.36     Sec. 31.  Minnesota Statutes 1996, section 124.195, 
223.1   subdivision 5, is amended to read: 
223.2      Subd. 5.  [COMMISSIONER'S ASSUMPTIONS.] For purposes of 
223.3   determining the amount of state general fund cash to be paid to 
223.4   school districts pursuant to subdivision 3, the commissioner of 
223.5   children, families, and learning shall:  
223.6      (a) (1) assume that the payments to school districts by the 
223.7   county treasurer of revenues accruing to the fiscal year of 
223.8   receipt pursuant to section 276.11 are made in the following 
223.9   manner: 
223.10     (1) (i) 50 percent within seven business days of each due 
223.11  date; and 
223.12     (2) (ii) 100 percent within 14 business days of each due 
223.13  date; 
223.14     (b) (2) assume that the payments to school districts by the 
223.15  county treasurer of revenues accruing to the fiscal year of 
223.16  receipt pursuant to section 276.111 are made in the following 
223.17  manner: 
223.18     (1) (i) 50 percent within seven business days of the 
223.19  October 15 due date; 
223.20     (2) (ii) 100 percent within 14 business days of the October 
223.21  15 due date; and 
223.22     (3) (iii) 100 percent within ten business days of the 
223.23  November 15 due date.; and 
223.24     (c) (3) assume that the payments to school districts by 
223.25  county auditors pursuant to section 124.10, subdivision 2, are 
223.26  made at the end of the months indicated in that subdivision.  
223.27     Sec. 32.  Minnesota Statutes 1996, section 124.195, 
223.28  subdivision 6, is amended to read: 
223.29     Subd. 6.  [FINAL ADJUSTMENT PAYMENT.] For all aids and 
223.30  credits paid according to subdivision 10, the final adjustment 
223.31  payment shall must include the amounts necessary to pay the 
223.32  district's full aid entitlement for the prior year based on 
223.33  actual data.  This payment shall must be used to correct all 
223.34  estimates used for the payment schedule in subdivision 3.  The 
223.35  payment shall must be made as specified in subdivision 3.  In 
223.36  the event actual data are not available, the final adjustment 
224.1   payment may be computed based on estimated data.  A corrected 
224.2   final adjustment payment shall must be made when actual data are 
224.3   available.  
224.4      Sec. 33.  Minnesota Statutes 1997 Supplement, section 
224.5   124.195, subdivision 7, is amended to read: 
224.6      Subd. 7.  [PAYMENTS TO SCHOOL NONOPERATING FUNDS.] Each 
224.7   fiscal year state general fund payments for a district 
224.8   nonoperating fund shall must be made at 90 percent of the 
224.9   estimated entitlement during the fiscal year of the 
224.10  entitlement.  This amount shall be paid in 12 equal monthly 
224.11  installments.  The amount of the actual entitlement, after 
224.12  adjustment for actual data, minus the payments made during the 
224.13  fiscal year of the entitlement shall must be paid prior to 
224.14  October 31 of the following school year.  The commissioner may 
224.15  make advance payments of homestead and agricultural credit aid 
224.16  for a district's debt service fund earlier than would occur 
224.17  under the preceding schedule if the district submits evidence 
224.18  showing a serious cash flow problem in the fund.  The 
224.19  commissioner may make earlier payments during the year and, if 
224.20  necessary, increase the percent of the entitlement paid to 
224.21  reduce the cash flow problem. 
224.22     Sec. 34.  Minnesota Statutes 1997 Supplement, section 
224.23  124.195, subdivision 10, is amended to read: 
224.24     Subd. 10.  [AID PAYMENT PERCENTAGE.] Except as provided in 
224.25  subdivisions 8, 9, and 11, each fiscal year, all education aids 
224.26  and credits in this chapter and chapters 121, 123, 124A, 
224.27  124B, 124D, 125, 126, 134, and section 273.1392, shall be paid 
224.28  at 90 percent of the estimated entitlement during the fiscal 
224.29  year of the entitlement.  The final adjustment payment, 
224.30  according to subdivision 6, shall must be the amount of the 
224.31  actual entitlement, after adjustment for actual data, minus the 
224.32  payments made during the fiscal year of the entitlement. 
224.33     Sec. 35.  Minnesota Statutes 1996, section 124.195, 
224.34  subdivision 14, is amended to read: 
224.35     Subd. 14.  [EDUCATION AIDS CASH FLOW ACCOUNT.] (a) An 
224.36  education aids cash flow account is established in the state 
225.1   treasury for the purpose of ensuring the timely payment of state 
225.2   aids or credits to school districts as provided in this 
225.3   section.  In the event the account balance in any appropriation 
225.4   from the general fund to the department of children, families, 
225.5   and learning for education aids or credits is insufficient to 
225.6   make the next scheduled payment or payments, the commissioner of 
225.7   children, families, and learning is authorized to transfer funds 
225.8   from the education aids cash flow account to the accounts that 
225.9   are insufficient. 
225.10     (b) For purposes of this subdivision, an account may have 
225.11  an insufficient balance only as a result of some districts being 
225.12  overpaid based on revised estimates for the relevant annual aid 
225.13  or credit entitlements.  When the overpayment amounts are 
225.14  recovered from the pertinent districts, the commissioner of 
225.15  children, families, and learning shall transfer those amounts to 
225.16  the education aids cash flow account.  The commissioner shall 
225.17  determine when it is not feasible to recover the overpayments in 
225.18  a timely manner from the district's future aid payments and 
225.19  notify the district of the amount that is to be refunded to the 
225.20  state.  School Districts are encouraged to make such refunds 
225.21  promptly.  The commissioner may approve a schedule for making a 
225.22  refund when a district demonstrates that its cash flow is 
225.23  inadequate to promptly make the refund in full. 
225.24     (c) There is annually appropriated from the general fund to 
225.25  the education aids cash flow account the additional amount 
225.26  necessary to ensure the timely payment of state aids or credits 
225.27  to school districts as provided in this section.  For any fiscal 
225.28  year, the appropriation authorized in this subdivision shall 
225.29  must not exceed an amount equal to two-tenths of one percent of 
225.30  the total general fund appropriations in that year for education 
225.31  aids and credits.  At the close of each fiscal year, the amount 
225.32  of actual transfers plus anticipated transfers required in 
225.33  paragraph (b) shall must equal the authorized amounts 
225.34  transferred in paragraph (a) so that the net effect on total 
225.35  general fund spending for education aids and credits is zero.  
225.36     Sec. 36.  Minnesota Statutes 1996, section 124.196, is 
226.1   amended to read: 
226.2      124.196 [CHANGE IN PAYMENT OF AIDS AND CREDITS.] 
226.3      If the commissioner of finance determines that 
226.4   modifications in the payment schedule would reduce the need for 
226.5   state short-term borrowing, the commissioner of children, 
226.6   families, and learning shall modify payments to school districts 
226.7   according to this section.  The modifications shall must begin 
226.8   no sooner than September 1 of each fiscal year, and shall must 
226.9   remain in effect until no later than May 30 of that same fiscal 
226.10  year.  In calculating the payment to a school district pursuant 
226.11  to section 124.195, subdivision 3, the commissioner may subtract 
226.12  the sum specified in that subdivision, plus an additional amount 
226.13  no greater than the following: 
226.14     (1) the net cash balance in the district's four operating 
226.15  funds on June 30 of the preceding fiscal year; minus 
226.16     (2) the product of $150 times the number of actual pupil 
226.17  units in the preceding fiscal year; minus 
226.18     (3) the amount of payments made by the county treasurer 
226.19  during the preceding fiscal year, pursuant to section 276.11, 
226.20  which is considered revenue for the current school year.  
226.21  However, no additional amount shall be subtracted if the total 
226.22  of the net unappropriated fund balances in the district's four 
226.23  operating funds on June 30 of the preceding fiscal year, is less 
226.24  than the product of $350 times the number of actual pupil units 
226.25  in the preceding fiscal year.  The net cash balance shall must 
226.26  include all cash and investments, less certificates of 
226.27  indebtedness outstanding, and orders not paid for want of funds. 
226.28     A district may appeal the payment schedule established by 
226.29  this section according to the procedures established in section 
226.30  124.195, subdivision 3a. 
226.31     Sec. 37.  Minnesota Statutes 1996, section 124.2131, 
226.32  subdivision 1, is amended to read: 
226.33     Subdivision 1.  [ADJUSTED NET TAX CAPACITY.] (a)  
226.34  [COMPUTATION.] The department of revenue shall must annually 
226.35  conduct an assessment/sales ratio study of the taxable property 
226.36  in each school district in accordance with the procedures in 
227.1   paragraphs (b) and (c).  Based upon the results of this 
227.2   assessment/sales ratio study, the department of revenue shall 
227.3   must determine an aggregate equalized net tax capacity for the 
227.4   various classes of taxable property in each school district, 
227.5   which tax capacity shall be designated as the adjusted net tax 
227.6   capacity.  The adjusted net tax capacities shall be determined 
227.7   using the net tax capacity percentages in effect for the 
227.8   assessment year following the assessment year of the study.  The 
227.9   department of revenue shall must make whatever estimates are 
227.10  necessary to account for changes in the classification system.  
227.11  The department of revenue may incur the expense necessary to 
227.12  make the determinations.  The commissioner of revenue may 
227.13  reimburse any county or governmental official for requested 
227.14  services performed in ascertaining the adjusted net tax 
227.15  capacity.  On or before March 15 annually, the department of 
227.16  revenue shall file with the chair of the tax committee of the 
227.17  house of representatives and the chair of the committee on taxes 
227.18  and tax laws of the senate a report of adjusted net tax 
227.19  capacities.  On or before June 15 annually, the department of 
227.20  revenue shall file its final report on the adjusted net tax 
227.21  capacities established by the previous year's assessments and 
227.22  the current year's net tax capacity percentages with the 
227.23  commissioner of children, families, and learning and each county 
227.24  auditor for those school districts for which the auditor has the 
227.25  responsibility for determination of local tax rates.  A copy of 
227.26  the report so filed shall be mailed to the clerk of each 
227.27  district involved and to the county assessor or supervisor of 
227.28  assessments of the county or counties in which each district is 
227.29  located. 
227.30     (b)  [METHODOLOGY.] In making its annual assessment/sales 
227.31  ratio studies, the department of revenue shall must use a 
227.32  methodology consistent with the most recent Standard on 
227.33  Assessment Ratio Studies published by the assessment standards 
227.34  committee of the International Association of Assessing 
227.35  Officers.  The commissioner of revenue shall supplement this 
227.36  general methodology with specific procedures necessary for 
228.1   execution of the study in accordance with other Minnesota laws 
228.2   impacting the assessment/sales ratio study.  The commissioner 
228.3   shall document these specific procedures in writing and shall 
228.4   publish the procedures in the State Register, but these 
228.5   procedures will not be considered "rules" pursuant to the 
228.6   Minnesota Administrative Procedure Act.  For purposes of this 
228.7   section, sections 270.12, subdivision 2, clause (8), and 278.05, 
228.8   subdivision 4, the commissioner of revenue shall exclude from 
228.9   the assessment/sales ratio study the sale of any nonagricultural 
228.10  property which does not contain an improvement, if (1) the 
228.11  statutory basis on which the property's taxable value as most 
228.12  recently assessed is less than market value as defined in 
228.13  section 273.11, or (2) the property has undergone significant 
228.14  physical change or a change of use since the most recent 
228.15  assessment.  
228.16     (c)  [AGRICULTURAL LANDS.] For purposes of determining the 
228.17  adjusted net tax capacity of agricultural lands for the 
228.18  calculation of adjusted net tax capacities, the market value of 
228.19  agricultural lands shall must be the price for which the 
228.20  property would sell in an arms length transaction. 
228.21     (d)  [FORCED SALES.] The commissioner of revenue may 
228.22  include forced sales in the assessment/sales ratio studies if it 
228.23  is determined by the commissioner of revenue that these forced 
228.24  sales indicate true market value. 
228.25     (e)  [STIPULATED VALUES AND ABATEMENTS.] The estimated 
228.26  market value to be used in calculating sales ratios shall must 
228.27  be the value established by the assessor before any stipulations 
228.28  resulting from appeals by property owners and before any 
228.29  abatement unless the abatement was granted for the purpose of 
228.30  correcting mere clerical errors. 
228.31     (f)  [SALES OF INDUSTRIAL PROPERTY.] Separate sales 
228.32  ratios shall must be calculated for commercial property and for 
228.33  industrial property.  These two classes shall be combined only 
228.34  in jurisdictions in which there is not an adequate sample of 
228.35  sales in each class. 
228.36     Sec. 38.  Minnesota Statutes 1996, section 124.2131, 
229.1   subdivision 2, is amended to read: 
229.2      Subd. 2.  [ADJUSTED NET TAX CAPACITY; GROWTH LIMIT.] In the 
229.3   calculation of adjusted net tax capacities for 1987 and each 
229.4   year thereafter, the commissioner of revenue shall not increase 
229.5   the adjusted net tax capacity of taxable property for any school 
229.6   district over the adjusted net tax capacity established and 
229.7   filed with the commissioner of children, families, and learning 
229.8   for the immediately preceding year by more than the greater of 
229.9   (1) 19 percent of the certified adjusted net tax capacity 
229.10  established and filed with the commissioner of children, 
229.11  families, and learning for the year immediately preceding, or 
229.12  (2) 40 percent of the difference between the district's total 
229.13  adjusted net tax capacity for the current year calculated 
229.14  without the application of this subdivision and the district's 
229.15  certified adjusted net tax capacity established and filed with 
229.16  the commissioner of children, families, and learning for the 
229.17  immediately preceding year.  
229.18     Sec. 39.  Minnesota Statutes 1996, section 124.2131, 
229.19  subdivision 3a, is amended to read: 
229.20     Subd. 3a.  [CAPTURED TAX CAPACITY ADJUSTMENT.] In 
229.21  calculating adjusted net tax capacity, the commissioner of 
229.22  revenue shall increase the adjusted net tax capacity of a school 
229.23  district containing a tax increment financing district for which 
229.24  an election is made under section 469.1782, subdivision 1, 
229.25  clause (1).  The amount of the increase equals the captured net 
229.26  tax capacity of the tax increment financing district in the year 
229.27  preceding the first taxes payable year in which the special law 
229.28  permits collection beyond that permitted by the general law 
229.29  duration limit that otherwise would apply.  The addition applies 
229.30  beginning for aid and levy for the first taxes payable year in 
229.31  which the special law permits collection of increment beyond 
229.32  that permitted by the general law duration limit that otherwise 
229.33  would apply.  The addition continues to apply for each taxes 
229.34  payable year the district remains in effect.  
229.35     Sec. 40.  Minnesota Statutes 1996, section 124.2131, 
229.36  subdivision 5, is amended to read:  
230.1      Subd. 5.  [ADJUSTED NET TAX CAPACITY; APPEALS.] Should 
230.2   any If a district, within 30 days after receipt of a copy of a 
230.3   report filed with the commissioner of children, families, and 
230.4   learning made pursuant to subdivision 1 or 3, be is of the 
230.5   opinion that the commissioner of revenue has made an error in 
230.6   the determination of the school district's market value, it may 
230.7   appeal from the report or portion thereof relating to the school 
230.8   district to the commissioner of revenue for a review and 
230.9   determination of the matters contained in the appeal.  The 
230.10  commissioner of revenue shall advise the school district of the 
230.11  determination within 30 days.  If the school district wishes to 
230.12  appeal the determination of the commissioner, it must file a 
230.13  notice of appeal with the tax court, as provided in subdivisions 
230.14  6 to 11 within ten days of the notice of determination from the 
230.15  commissioner. 
230.16     Sec. 41.  Minnesota Statutes 1996, section 124.2131, 
230.17  subdivision 6, is amended to read: 
230.18     Subd. 6.  [NOTICE OF APPEAL.] The school district shall 
230.19  must file with the court administrator of the tax court a notice 
230.20  of appeal from the determination of the commissioner of revenue 
230.21  fixing the market value of the school district, and such notice 
230.22  shall must show the basis of the alleged error.  A copy of 
230.23  such the notice of appeal shall must be served upon the 
230.24  commissioner of revenue, and proof of service shall must be 
230.25  filed with the court administrator. 
230.26     Sec. 42.  Minnesota Statutes 1996, section 124.2131, 
230.27  subdivision 7, is amended to read: 
230.28     Subd. 7.  [HEARING.] Upon receipt of the notice of appeal 
230.29  the tax court shall must review the notice of appeal and 
230.30  determine whether it appears from the allegations and proofs 
230.31  therein contained that an error has been made in the 
230.32  determination by the commissioner of revenue of the market value 
230.33  of the property in the school district.  If the court finds it 
230.34  probable that such an error has been made, it shall must notice 
230.35  the matter for hearing; otherwise, it shall must dismiss the 
230.36  appeal and notify the parties thereof.  Hearing shall Hearings 
231.1   must be set and held in the same manner as other hearings of the 
231.2   tax court are set and heard, except that an appeal filed under 
231.3   subdivision 5 shall must take precedence over other appeals 
231.4   pending before the court.  The attorney general shall represent 
231.5   the commissioner of revenue.  The Administrative Procedure Act, 
231.6   sections 14.09 to 14.28, 14.38, 14.44 to 14.45, and 14.57 to 
231.7   14.69, shall apply to hearings insofar as it is applicable.  
231.8      Sec. 43.  Minnesota Statutes 1996, section 124.2131, 
231.9   subdivision 8, is amended to read: 
231.10     Subd. 8.  [TAX COURT DETERMINATION.] The tax court shall 
231.11  hear, consider, and determine such appeal, de novo upon the 
231.12  issues made by the notice of appeal, if a hearing has been 
231.13  granted thereon.  At the conclusion of the hearing, the court 
231.14  shall must:  (1) file findings of fact, or (2) refer the issues 
231.15  to the commissioner of revenue with instructions and 
231.16  recommendations for a determination and correction of the market 
231.17  value of the appealing school district.  The decision of the tax 
231.18  court, if it decides the matter de novo, shall have the same 
231.19  force and effect as a determination by the commissioner of 
231.20  revenue in the first instance under this section, and the 
231.21  commissioner of revenue shall must be notified thereof.  If the 
231.22  matter is rereferred to the commissioner of revenue, a 
231.23  redetermination by the commissioner of revenue in accordance 
231.24  with the recommendations of the tax court shall must likewise 
231.25  have the same force and effect as a determination by it in the 
231.26  first instance under this section. 
231.27     Sec. 44.  Minnesota Statutes 1996, section 124.2131, 
231.28  subdivision 9, is amended to read: 
231.29     Subd. 9.  [HEARING EXAMINER.] In addition to the powers and 
231.30  duties of the tax court as prescribed by chapter 271, and any 
231.31  act amendatory thereof, any hearing ordered pursuant to the 
231.32  provisions hereunder this section may be heard by a hearing 
231.33  examiner in lieu of one or more judges of the tax court.  If a 
231.34  hearing is conducted by a hearing examiner, such hearing 
231.35  examiner shall exercise the same powers conferred by law upon 
231.36  one or more judges of the tax court.  The hearing examiner shall 
232.1   report to the court.  The court is authorized to make findings 
232.2   of fact based on the report of the hearing examiner in the same 
232.3   manner as is required by these provisions when the hearing is 
232.4   conducted by the court.  The tax court may employ hearing 
232.5   examiners upon such terms and conditions as it shall prescribe.  
232.6   A hearing examiner so appointed shall be in the unclassified 
232.7   service of the state.  
232.8      Sec. 45.  Minnesota Statutes 1996, section 124.2131, 
232.9   subdivision 11, is amended to read: 
232.10     Subd. 11.  [AIDS PENDING APPEALS.] During the pendency of 
232.11  any appeal from the commissioner of revenue evaluation, state 
232.12  aids to the appealing district so appealing shall must be paid 
232.13  on the basis of the evaluation subject to adjustment upon final 
232.14  determination of the appeal. 
232.15     Sec. 46.  Minnesota Statutes 1996, section 124.214, is 
232.16  amended to read: 
232.17     124.214 [AID ADJUSTMENTS.] 
232.18     Subdivision 1.  [OMISSIONS.] No adjustments to any aid 
232.19  payments made pursuant to this chapter or chapter 124A, 
232.20  resulting from omissions in school district reports, except 
232.21  those adjustments determined by the legislative auditor, shall 
232.22  be made for any school year after December 30 of the next school 
232.23  year, unless otherwise specifically provided by law. 
232.24     Subd. 2.  [ABATEMENTS.] Whenever by virtue of chapter 278, 
232.25  sections 270.07, 375.192, or otherwise, the net tax capacity of 
232.26  any school district for any taxable year is changed after the 
232.27  taxes for that year have been spread by the county auditor and 
232.28  the local tax rate as determined by the county auditor based 
232.29  upon the original net tax capacity is applied upon the changed 
232.30  net tax capacities, the county auditor shall, prior to February 
232.31  1 of each year, certify to the commissioner of children, 
232.32  families, and learning the amount of any resulting net revenue 
232.33  loss that accrued to the school district during the preceding 
232.34  year.  Each year, the commissioner shall pay an abatement 
232.35  adjustment to the district in an amount calculated according to 
232.36  the provisions of this subdivision.  This amount shall be 
233.1   deducted from the amount of the levy authorized by section 
233.2   124.912, subdivision 9.  The amount of the abatement 
233.3   adjustment shall must be the product of:  
233.4      (1) the net revenue loss as certified by the county 
233.5   auditor, times 
233.6      (2) the ratio of:  
233.7      (a) (i) the sum of the amounts of the district's certified 
233.8   levy in the preceding year according to the following:  
233.9      (i) (A) section 124A.23 if the district received general 
233.10  education aid according to that section for the second preceding 
233.11  year; 
233.12     (ii) (B) section 124.226, subdivisions 1 and 4, if the 
233.13  district received transportation aid according to section 
233.14  124.225 for the second preceding year; 
233.15     (iii) (C) section 124.243, if the district received capital 
233.16  expenditure facilities aid according to that section for the 
233.17  second preceding year; 
233.18     (iv) (D) section 124.244, if the district received capital 
233.19  expenditure equipment aid according to that section for the 
233.20  second preceding year; 
233.21     (v) (E) section 124.83, if the district received health and 
233.22  safety aid according to that section for the second preceding 
233.23  year; 
233.24     (vi) (F) sections 124.2713, 124.2714, and 124.2715, if the 
233.25  district received aid for community education programs according 
233.26  to any of those sections for the second preceding year; 
233.27     (vii) (G) section 124.2711, subdivision 2a, if the district 
233.28  received early childhood family education aid according to 
233.29  section 124.2711 for the second preceding year; 
233.30     (viii) (H) section 124.321, subdivision 3, if the district 
233.31  received special education levy equalization aid according to 
233.32  that section for the second preceding year; 
233.33     (ix) (I) section 124A.03, subdivision 1g, if the district 
233.34  received referendum equalization aid according to that section 
233.35  for the second preceding year; and 
233.36     (x) (J) section 124A.22, subdivision 4a, if the district 
234.1   received training and experience aid according to that section 
234.2   for the second preceding year; to 
234.3      (b) to (ii) the total amount of the district's certified 
234.4   levy in the preceding October, plus or minus auditor's 
234.5   adjustments. 
234.6      Subd. 3.  [EXCESS TAX INCREMENT.] (a) If a return of excess 
234.7   tax increment is made to a school district pursuant to section 
234.8   469.176, subdivision 2, or upon decertification of a tax 
234.9   increment district, the school district's aid and levy 
234.10  limitations must be adjusted for the fiscal year in which the 
234.11  excess tax increment is paid under the provisions of this 
234.12  subdivision. 
234.13     (a) (b) An amount must be subtracted from the school 
234.14  district's aid for the current fiscal year equal to the product 
234.15  of: 
234.16     (1) the amount of the payment of excess tax increment to 
234.17  the school district, times 
234.18     (2) the ratio of: 
234.19     (A) (i) the sum of the amounts of the school district's 
234.20  certified levy for the fiscal year in which the excess tax 
234.21  increment is paid according to the following: 
234.22     (i) (A) section 124A.23, if the district received general 
234.23  education aid according to that section for the second preceding 
234.24  year; 
234.25     (ii) (B) section 124.226, subdivisions 1 and 4, if the 
234.26  school district received transportation aid according to section 
234.27  124.225 for the second preceding year; 
234.28     (iii) (C) section 124.243, if the district received capital 
234.29  expenditure facilities aid according to that section for the 
234.30  second preceding year; 
234.31     (iv) (D) section 124.244, if the district received capital 
234.32  expenditure equipment aid according to that section for the 
234.33  second preceding year; 
234.34     (v) (E) section 124.83, if the district received health and 
234.35  safety aid according to that section for the second preceding 
234.36  year; 
235.1      (vi) (F) sections 124.2713, 124.2714, and 124.2715, if the 
235.2   district received aid for community education programs according 
235.3   to any of those sections for the second preceding year; 
235.4      (vii) (G) section 124.2711, subdivision 2a, if the district 
235.5   received early childhood family education aid according to 
235.6   section 124.2711 for the second preceding year; 
235.7      (viii) (H) section 124.321, subdivision 3, if the district 
235.8   received special education levy equalization aid according to 
235.9   that section for the second preceding year; 
235.10     (ix) (I) section 124A.03, subdivision 1g, if the district 
235.11  received referendum equalization aid according to that section 
235.12  for the second preceding year; and 
235.13     (x) (J) section 124A.22, subdivision 4a, if the district 
235.14  received training and experience aid according to that section 
235.15  for the second preceding year; to 
235.16     (B) to (ii) the total amount of the school district's 
235.17  certified levy for the fiscal year, plus or minus auditor's 
235.18  adjustments. 
235.19     (b) (c) An amount must be subtracted from the school 
235.20  district's levy limitation for the next levy certified equal to 
235.21  the difference between: 
235.22     (1) the amount of the distribution of excess increment,; 
235.23  and 
235.24     (2) the amount subtracted from aid pursuant to clause (a). 
235.25     If the aid and levy reductions required by this subdivision 
235.26  cannot be made to the aid for the fiscal year specified or to 
235.27  the levy specified, the reductions must be made from aid for 
235.28  subsequent fiscal years, and from subsequent levies.  The school 
235.29  district shall must use the payment of excess tax increment to 
235.30  replace the aid and levy revenue reduced under this subdivision. 
235.31     (d) This subdivision applies only to the total amount of 
235.32  excess increments received by a school district for a calendar 
235.33  year that exceeds $25,000. 
235.34     Sec. 47.  Minnesota Statutes 1996, section 124.625, is 
235.35  amended to read: 
235.36     124.625 [VETERANS TRAINING.] 
236.1      The commissioner shall continue the veterans training 
236.2   program.  All receipts to the veterans training revolving fund 
236.3   for the veterans training program are appropriated to the 
236.4   commissioner to pay the necessary expenses of operation of the 
236.5   program.  The department of children, families, and learning 
236.6   shall must act as the state agency for approving educational 
236.7   institutions for purposes of United States Code, title 38, 
236.8   chapter 36, relating to educational benefits for veterans and 
236.9   other persons.  The state board may adopt rules to fulfill its 
236.10  obligations as the state approving agency.  All federal money 
236.11  received for purposes of the veterans training program shall 
236.12  must be deposited in the veterans training revolving fund and is 
236.13  appropriated to the department for those purposes.  
236.14     Sec. 48.  Minnesota Statutes 1996, section 124A.036, as 
236.15  amended by Laws 1997, chapter 7, article 1, section 65, is 
236.16  amended to read: 
236.17     124A.036 [PAYMENTS TO RESIDENT AND NONRESIDENT DISTRICTS.] 
236.18     Subdivision 1.  [AID TO DISTRICT OF RESIDENCE.] General 
236.19  education aid shall must be paid to the district of residence 
236.20  unless otherwise specifically provided by law.  
236.21     Subd. 1a.  [REPORTING; REVENUE FOR HOMELESS.] For all 
236.22  school purposes, unless otherwise specifically provided by law, 
236.23  a homeless pupil must be considered a resident of the school 
236.24  district that enrolls the pupil. 
236.25     Subd. 2.  [DISTRICT WITHOUT SCHOOLS.] Except as otherwise 
236.26  provided in law, any district not maintaining classified 
236.27  elementary or secondary schools shall must pay the tuition 
236.28  required in order to enable resident pupils to attend school in 
236.29  another district when necessary, and shall must receive general 
236.30  education aid on the same basis as other districts.  The 
236.31  aid shall must be computed as if the pupils were enrolled in the 
236.32  district of residence.  
236.33     Subd. 3.  [NOTIFICATION OF RESIDENT DISTRICT.] A district 
236.34  educating a pupil who is a resident of another district shall 
236.35  must notify the district of residence within 60 days of the date 
236.36  the pupil is determined by the district to be a nonresident, but 
237.1   not later than August 1 following the end of the school year in 
237.2   which the pupil is educated.  If the district of residence does 
237.3   not receive a notification from the providing district pursuant 
237.4   to this subdivision, it shall is not be liable to that district 
237.5   for any tuition billing received after August 1 of the next 
237.6   school year.  
237.7      Subd. 4.  [STATE AGENCY AND COURT PLACEMENTS.] If a state 
237.8   agency or a court of the state desires to place a child in a 
237.9   school district which that is not the child's district of 
237.10  residence, that agency or court shall must, prior to before 
237.11  placement, allow the district of residence an opportunity to 
237.12  participate in the placement decision and notify the district of 
237.13  residence, the district of attendance and the commissioner of 
237.14  children, families, and learning of the placement decision.  
237.15  When a state agency or court determines that an immediate 
237.16  emergency placement is necessary and that time does not permit 
237.17  district participation in the placement decision or notice to 
237.18  the districts and the commissioner of children, families, and 
237.19  learning of the placement decision prior to before the 
237.20  placement, the agency or court may make the decision and 
237.21  placement without that participation or prior notice.  The 
237.22  agency or court shall must notify the district of residence, the 
237.23  district of attendance and the commissioner of children, 
237.24  families, and learning of an emergency placement within 15 days 
237.25  of the placement.  
237.26     Subd. 5.  [ALTERNATIVE ATTENDANCE PROGRAMS.] The general 
237.27  education aid for districts must be adjusted for each pupil 
237.28  attending a nonresident district under sections 120.062, 
237.29  120.075, 120.0751, 120.0752, 124C.45 to 124C.48, and 126.22.  
237.30  The adjustments must be made according to this subdivision. 
237.31     (a) General education aid paid to a resident district must 
237.32  be reduced by an amount equal to the general education revenue 
237.33  exclusive of compensatory revenue attributable to the pupil in 
237.34  the resident district. 
237.35     (b) General education aid paid to a district serving a 
237.36  pupil in programs listed in this subdivision shall must be 
238.1   increased by an amount equal to the general education revenue 
238.2   exclusive of compensatory revenue attributable to the pupil in 
238.3   the nonresident district.  
238.4      (c) If the amount of the reduction to be made from the 
238.5   general education aid of the resident district is greater than 
238.6   the amount of general education aid otherwise due the district, 
238.7   the excess reduction must be made from other state aids due the 
238.8   district. 
238.9      (d) The district of residence shall must pay tuition to a 
238.10  district or an area learning center, operated according to 
238.11  paragraph (e), providing special instruction and services to a 
238.12  pupil with a disability, as defined in section 120.03, or a 
238.13  pupil, as defined in section 120.181, who is enrolled in a 
238.14  program listed in this subdivision.  The tuition shall must be 
238.15  equal to (1) the actual cost of providing special instruction 
238.16  and services to the pupil, including a proportionate amount for 
238.17  debt service and for capital expenditure facilities and 
238.18  equipment, and debt service but not including any amount for 
238.19  transportation, minus (2) the amount of general education aid 
238.20  and special education aid, attributable to that pupil, that is 
238.21  received by the district providing special instruction and 
238.22  services. 
238.23     (e) An area learning center operated by a service 
238.24  cooperative, intermediate district, education district, or a 
238.25  joint powers cooperative may elect through the action of the 
238.26  constituent boards to charge tuition for pupils rather than to 
238.27  calculate general education aid adjustments under paragraph (a), 
238.28  (b), or (c).  The tuition must be equal to the greater of the 
238.29  average general education revenue per pupil unit attributable to 
238.30  the pupil, or the actual cost of providing the instruction, 
238.31  excluding transportation costs, if the pupil meets the 
238.32  requirements of section 120.03 or 120.181. 
238.33     Subd. 6.  [CHARTER SCHOOLS.] (a) The general education aid 
238.34  for districts must be adjusted for each pupil attending a 
238.35  charter school under section 120.064.  The adjustments must be 
238.36  made according to this subdivision. 
239.1      (b) General education aid paid to a resident district must 
239.2   be reduced by an amount equal to the general education revenue 
239.3   exclusive of compensatory revenue. 
239.4      (c) General education aid paid to a district in which a 
239.5   charter school not providing transportation according to section 
239.6   120.064, subdivision 15, is located shall must be increased by 
239.7   an amount equal to the product of:  (1) the sum of $170, plus 
239.8   the transportation sparsity allowance for the district, plus the 
239.9   transportation transition allowance for the district; times (2) 
239.10  the pupil units attributable to the pupil.  
239.11     (d) If the amount of the reduction to be made from the 
239.12  general education aid of the resident district is greater than 
239.13  the amount of general education aid otherwise due the district, 
239.14  the excess reduction must be made from other state aids due the 
239.15  district. 
239.16     Sec. 49.  [INSTRUCTION TO REVISOR.] 
239.17     The revisor of statutes shall renumber each section of 
239.18  Minnesota Statutes listed in column A with the number listed in 
239.19  column B.  The revisor shall also make necessary cross-reference 
239.20  changes consistent with the renumbering. 
239.21        Column A                        Column B 
239.22       121.01                         121A.01
239.23       121.81                         121A.02
239.24       121.82                         121A.03
239.25       121.02, subd. 1                121A.04, subd. 1
239.26               subd. 2a                        subd. 2
239.27               subd. 3                         subd. 3
239.28               subd. 4                         subd. 4
239.29       121.03                         121A.05
239.30       121.04                         121A.06
239.31       121.05                         121A.07
239.32       121.06                         121A.08
239.33       121.14                         121A.09
239.34       121.11, subd. 7                121A.10, subd. 1
239.35               subd. 7b                        subd. 2
239.36               subd. 9                         subd. 3
240.1                subd. 11                        subd. 4
240.2                subd. 7c               121A.11
240.3        121.1113                       121A.12
240.4        121.1115, subd. 1              121A.13, subd. 1
240.5                  subd. 1a                      subd. 2
240.6                  subd. 2                       subd. 3
240.7        126.685                        121A.15
240.8        121.48                         121A.17 
240.9        121.1601, subd. 1              121A.19, subd. 1
240.10                 subd. 2                       subd. 2
240.11                 subd. 3                       subd. 3
240.12       121.11, subd. 7d                        subd. 4
240.13       126.82                         121A.20
240.14       121.16, subd. 1                121A.22, subd. 1
240.15               subd. 3                         subd. 2
240.16       121.161                        121A.23
240.17       121.162                        121A.24
240.18       121.163                        121A.25
240.19       121.175                        121A.27
240.20       121.15, subd. 1                121A.31, subd. 1
240.21               subd. 1a                        subd. 2
240.22               subd. 1b                        subd. 3
240.23               subd. 2                         subd. 4
240.24               subd. 3                         subd. 5
240.25               subd. 4                         subd. 6
240.26               subd. 5                         subd. 7
240.27               subd. 6                         subd. 8
240.28               subd. 7                         subd. 9
240.29               subd. 7a                        subd. 10
240.30               subd. 8                         subd. 11
240.31               subd. 9                         subd. 12
240.32       121.1501                       121A.32
240.33       121.1502                       121A.33
240.34       121.931, subd. 1               121A.36, subd. 1
240.35                subd. 2                        subd. 2
240.36                subd. 5                        subd. 3
241.1        121.932, subd. 2               121A.37, subd. 1
241.2                 subd. 3                        subd. 2
241.3                 subd. 4                        subd. 3
241.4                 subd. 4a                       subd. 4
241.5                 subd. 4b                       subd. 5
241.6                 subd. 5                        subd. 6
241.7                 subd. 6                        subd. 7
241.8        121.933, subd. 1               121A.38
241.9        121.95                         121A.39
241.10       121.498                        121A.41
241.11       121.496, subd. 2               121A.43, subd. 1
241.12                subd. 3                        subd. 2
241.13       121.11, subd. 5                121A.50
241.14       121.918                        121A.51
241.15       121.919                        121A.52
241.16       124.078                        121A.54
241.17       124.079                        121A.55
241.18       124.08                         121A.56
241.19       124.09                         121A.57
241.20       124.10                         121A.58
241.21       124.12                         121A.60
241.22       124.14, subd. 1                121A.61, subd. 1
241.23               subd. 2                         subd. 2
241.24               subd. 3                         subd. 3
241.25               subd. 3a                        subd. 4
241.26               subd. 4                         subd. 5
241.27               subd. 6                         subd. 6
241.28               subd. 7                         subd. 7
241.29               subd. 8                         subd. 8
241.30       124.15, subd. 1                121A.62, subd. 1
241.31               subd. 2                         subd. 2
241.32               subd. 2a                        subd. 3
241.33               subd. 3                         subd. 4
241.34               subd. 4                         subd. 5
241.35               subd. 5                         subd. 6
241.36               subd. 6                         subd. 7
242.1                subd. 7                         subd. 8
242.2                subd. 8                         subd. 9
242.3        124.155                        121A.63
242.4        124.18                         121A.65
242.5        124.195, subd. 1               121A.67, subd. 1
242.6                 subd. 2                        subd. 2
242.7                 subd. 3                        subd. 3
242.8                 subd. 3a                       subd. 4
242.9                 subd. 3b                       subd. 5
242.10                subd. 3c                       subd. 6
242.11                subd. 4                        subd. 7
242.12                subd. 5                        subd. 8
242.13                subd. 6                        subd. 9
242.14                subd. 7                        subd. 10
242.15                subd. 8                        subd. 11
242.16                subd. 9                        subd. 12
242.17                subd. 10                       subd. 13
242.18                subd. 11                       subd. 14
242.19                subd. 14                       subd. 15
242.20                subd. 15                       subd. 16
242.21       124.196                        121A.68
242.22       124A.036                       121A.69
242.23       124.2131, subd. 1              121A.70, subd. 1
242.24                 subd. 2                       subd. 2
242.25                 subd. 3                       subd. 3
242.26                 subd. 3a                      subd. 4
242.27                 subd. 5                       subd. 5
242.28                 subd. 6                       subd. 6
242.29                 subd. 7                       subd. 7
242.30                 subd. 8                       subd. 8
242.31                 subd. 9                       subd. 9
242.32                 subd. 10                      subd. 10
242.33                 subd. 11                      subd. 11
242.34       124.214                        121A.72
242.35       124.2141                       121A.73
242.36       126.256                        121A.80
243.1        126.115                        121A.82
243.2        124.625                        121A.84
243.3                              ARTICLE 5
243.4                             CHAPTER 122A 
243.5             SCHOOL DISTRICTS; FORMATION AND COOPERATION
243.6      Section 1.  Minnesota Statutes 1996, section 121.155, is 
243.7   amended to read: 
243.8      121.155 [JOINT POWERS AGREEMENTS FOR FACILITIES.] 
243.9      Subdivision 1.  [INSTRUCTIONAL FACILITIES.] Any group of 
243.10  districts may form a joint powers district under section 471.59 
243.11  representing all participating districts to build or acquire a 
243.12  facility to be used for instructional purposes.  The joint 
243.13  powers board must submit the project for review and comment 
243.14  under section 121.15.  The joint powers board must hold a 
243.15  hearing on the proposal.  The joint powers district must submit 
243.16  the question of authorizing the borrowing of funds for the 
243.17  project to the voters of the joint powers district at a special 
243.18  election.  The question submitted shall state the total amount 
243.19  of funding needed from all sources.  The joint powers board may 
243.20  issue the bonds according to chapter 475 and certify the levy 
243.21  required by section 475.61 only if a majority of those voting on 
243.22  the question vote in the affirmative and only after the school 
243.23  boards of each member district have adopted a resolution 
243.24  pledging the full faith and credit of that district.  The 
243.25  resolution shall irrevocably commit that district to pay a 
243.26  proportionate share, based on pupil units, of any debt levy 
243.27  shortages that, together with other funds available, would allow 
243.28  the joint powers board to pay the principal and interest on the 
243.29  obligations.  The district's payment of its proportionate share 
243.30  of the shortfall shall be made from the district's capital 
243.31  expenditure fund.  The clerk of the joint powers board must 
243.32  certify the vote of the bond election to the commissioner of 
243.33  children, families, and learning. 
243.34     Subd. 2.  [SHARED FACILITIES.] A group of governmental 
243.35  units may form a joint powers district under section 471.59 
243.36  representing all participating units to build or acquire a 
244.1   facility.  The joint powers board must submit the project for 
244.2   review and comment under section 121.15.  The joint powers board 
244.3   must hold a hearing on the proposal.  The joint powers district 
244.4   must submit the question of authorizing the borrowing of funds 
244.5   for the project to the voters of the joint powers district at a 
244.6   special election.  The question submitted shall state the total 
244.7   amount of funding needed from all sources.  The joint powers 
244.8   board may issue the bonds according to chapter 475 and certify 
244.9   the levy required by section 475.61 only if a majority of those 
244.10  voting on the question vote in the affirmative and only after 
244.11  the boards of each member unit have adopted a resolution 
244.12  pledging the full faith and credit of that unit.  The resolution 
244.13  must irrevocably commit that unit to pay an agreed upon share of 
244.14  any debt levy shortages that, together with other funds 
244.15  available, would allow the joint powers board to pay the 
244.16  principal and interest on the obligations.  The clerk of the 
244.17  joint powers board must certify the vote of the bond election to 
244.18  the commissioner of children, families, and learning. 
244.19     Sec. 2.  Minnesota Statutes 1996, section 122.01, is 
244.20  amended to read: 
244.21     122.01 [DEFINITIONS.] 
244.22     Subdivision 1.  [DEFINITIONS.] For purposes of this 
244.23  chapter, the words defined in section 120.02, have the same 
244.24  meaning. 
244.25     Subd. 2.  [TEACHER.] For purposes of this chapter, "teacher"
244.26  means a teacher as defined in section 125.12, subdivision 1. 
244.27     Sec. 3.  Minnesota Statutes 1996, section 122.02, is 
244.28  amended to read: 
244.29     122.02 [CLASSES, NUMBER.] 
244.30     School Districts shall be classified as common, 
244.31  independent, or special districts, each of which is a public 
244.32  corporation.  Each district shall be known by its classification 
244.33  and each shall be assigned a number by the commissioner so that 
244.34  its title will be .......... school district number ..... . 
244.35     Sec. 4.  Minnesota Statutes 1996, section 122.03, is 
244.36  amended to read: 
245.1      122.03 [ASSIGNMENT OF IDENTIFICATION NUMBERS.] 
245.2      Subdivision 1.  [ASSIGNMENT.] The commissioner of children, 
245.3   families, and learning shall, by order, assign an identification 
245.4   number to each district.  The assignment shall be made so that 
245.5   each classified district has an exclusive identification number 
245.6   which is exclusive to it in its classification. 
245.7      Subd. 2.  [NOTIFICATION.] Upon making the assignment of an 
245.8   identification number, the commissioner of children, families, 
245.9   and learning shall forthwith notify the clerk of the district 
245.10  and the county auditors of the counties in which any part of the 
245.11  district lies of the identification number assigned.  A 
245.12  certified copy of the order may be recorded in the office of the 
245.13  county recorder to show the new legal name of the district. 
245.14     Subd. 3.  [LEGAL IDENTIFICATION.] From and after the making 
245.15  of the order, The legal identification of the district shall 
245.16  become and be as assigned the assigned identification number.  
245.17  All records, correspondence, reports and references to the 
245.18  district shall must thereafter refer to the district by its 
245.19  proper title as assigned. 
245.20     Subd. 4.  [USE OF NUMBERS.] A number once assigned to a 
245.21  district under section 122.02 or under any prior law, shall must 
245.22  not be used again to identify any district in the same 
245.23  classification.  As the need arises, and as required by law, as 
245.24  new districts are formed, the commissioner of children, 
245.25  families, and learning shall assign unused numbers as 
245.26  identification.  When numbered districts are dissolved, the 
245.27  numbers assigned to them will not be reassigned to any other 
245.28  district. 
245.29     Sec. 5.  Minnesota Statutes 1996, section 122.21, is 
245.30  amended to read: 
245.31     122.21 [DETACHMENT AND ANNEXATION OF LAND.] 
245.32     Subdivision 1.  [DETACHMENT AND ANNEXATION.] The owner of 
245.33  land which adjoins any independent district, and whose land is 
245.34  not in a special district may petition the county board of the 
245.35  county in which the greater part of the area proposed for 
245.36  detachment and annexation lies to detach all or any part of the 
246.1   land together with the intervening lands as defined 
246.2   in subparagraph paragraph (b) below, from the district it now is 
246.3   in, and to attach it, together with such intervening land, to 
246.4   the adjoining district.  For purpose of this section, land is 
246.5   adjoining a school district if: 
246.6      (a) The boundary of the area proposed for detachment and 
246.7   annexation is the same as the district boundary to which 
246.8   attachment is sought at any point, including corners, or 
246.9      (b) The area proposed for detachment and annexation is 
246.10  separated at any point from the district to which annexation is 
246.11  sought by not more than one-half mile and the intervening land 
246.12  is vacant and unoccupied or is owned by one or more of the 
246.13  following:  The United States, or the state of Minnesota or any 
246.14  of its political subdivisions, or an owner who is unknown or 
246.15  cannot be found or 
246.16     (c) The area proposed by a land owner for detachment and 
246.17  annexation is adjoining, (as defined in subparagraphs 
246.18  paragraphs (a) and (b) above), any land proposed for detachment 
246.19  from and annexation to the same district in another pending 
246.20  petition. 
246.21     Subd. 2.  [PETITION.] The petition shall must contain: 
246.22     (a) A correct description of the area proposed for 
246.23  detachment and annexation, together with such including 
246.24  supporting data with regard to regarding location and title to 
246.25  land as will establish facts conformable to subdivision 1 to 
246.26  establish that the land is adjoining a district. 
246.27     (b) The reasons for the proposed change with facts showing 
246.28  that the granting of the petition will not reduce the size of 
246.29  any district to less than four sections, unless the district is 
246.30  not operating a school within the district. 
246.31     (c) Consent to the petition, endorsed thereon at any time 
246.32  before the hearing by the board of the district from which the 
246.33  area is to be removed, if, at the time of the filing of the 
246.34  petition, any part of the area proposed for detachment is part 
246.35  of a district which maintains and operates a secondary school 
246.36  within the district.  Before the hearing, the consent of the 
247.1   board of the district in which the area proposed for detachment 
247.2   lies must be endorsed on the petition. 
247.3      (d) An identification of the district to which annexation 
247.4   is sought. 
247.5      (e) Such Other information as the petitioners may desire to 
247.6   affix. 
247.7      (f) An acknowledgment by the petitioner. 
247.8      Subd. 3.  [FILING PETITION.] The petition shall must be 
247.9   filed with the auditor who shall present it to the county board 
247.10  at its next meeting.  At the meeting, the county board shall 
247.11  must fix a time and place for hearing the petition, which time.  
247.12  The hearing shall be not more than 60 nor less than ten days 
247.13  from the date of the meeting.  The auditor shall forthwith serve 
247.14  notice of the hearing on each district directly affected by the 
247.15  petition, by mail addressed to the clerk.  If any area affected 
247.16  by the petition is in another county, the auditor shall mail a 
247.17  notice of hearing to the auditor of such county and shall also 
247.18  give one week's published notice of the hearing in the county 
247.19  wherein in which the hearing is to be held, and ten days' posted 
247.20  notice in each school district affected.  Such posted and 
247.21  published notice may combine pending petitions.  At the hearing 
247.22  on the petition, the county board shall must receive and hear 
247.23  any evidence for or against the petition.  The hearing may be 
247.24  adjourned from time to time. 
247.25     Subd. 4.  [ORDER.] Within six months of the time when the 
247.26  petition was filed filing of the petition, the county board 
247.27  shall must issue its order either granting or denying the 
247.28  petition, unless all or part.  If any of the land area described 
247.29  in the petition is included in a plat for consolidation or 
247.30  combination which has been approved by the commissioner of 
247.31  children, families, and learning in which event, then no order 
247.32  may be issued while consolidation or combination proceedings are 
247.33  pending.  No order shall be issued which results in attaching to 
247.34  a district any territory not adjoining that district, as defined 
247.35  in subdivision 1(a).  No order shall be issued which reduces the 
247.36  size of any district to less than four sections unless the 
248.1   district is not operating a school within the district.  The 
248.2   order may be made effective at have a deferred effective date 
248.3   not later than July 1 next immediately following its issuance.  
248.4   If the petition be is granted, the auditor shall transmit a 
248.5   certified copy to the commissioner.  Failure to issue an order 
248.6   within six months of the filing of the petition or termination 
248.7   of proceedings upon an approved consolidation plat, whichever is 
248.8   later, is a denial of the petition. 
248.9      Subd. 5.  [MODIFICATION OF RECORDS.] Upon receipt of the 
248.10  order, the commissioner shall forthwith modify the records and 
248.11  any plats and petitions and proceedings involving districts 
248.12  affected by such order presently before the commissioner for 
248.13  action or record, to conform to the order. 
248.14     Subd. 6.  [TAXABLE PROPERTY.] Upon the effective date of 
248.15  the order, the detachment and annexation ordered therein is 
248.16  effected.  All taxable property in the area so detached and 
248.17  annexed remains taxable for payment of any school purpose 
248.18  obligations theretofore authorized by or on that date 
248.19  outstanding already authorized by or outstanding on the 
248.20  effective date of the order against the district from which 
248.21  detached.  Such property is not by virtue of the order 
248.22  relieved The order does not relieve such property from the 
248.23  obligation of any bonded debt theretofore already incurred to 
248.24  which it was subject prior to the order.  All taxable property 
248.25  in the area so detached and annexed is taxable for payment of 
248.26  any school district obligations authorized on or subsequent to 
248.27  the effective date of the order by the district to which 
248.28  annexation is made. 
248.29     Sec. 6.  Minnesota Statutes 1996, section 122.22, 
248.30  subdivision 1, is amended to read: 
248.31     Subdivision 1.  [DISSOLUTION.] Any district may be 
248.32  dissolved and the territory be attached to other districts by 
248.33  proceeding in accordance with this section.  
248.34     Sec. 7.  Minnesota Statutes 1996, section 122.22, 
248.35  subdivision 4, is amended to read: 
248.36     Subd. 4.  [PETITION.] A petition executed pursuant to 
249.1   subdivision 2(b) shall be filed with the auditor.  It shall The 
249.2   petition must contain the following: 
249.3      (a) A statement that petitioners desire proceedings 
249.4   instituted leading to dissolution of the district and other 
249.5   provisions made for the education of the inhabitants of the 
249.6   territory and that petitioners are eligible voters of the 
249.7   district; 
249.8      (b) An identification of the district; and 
249.9      (c) The reasons supporting the petition which may include 
249.10  recommendations as to disposition of territory to be dissolved.  
249.11  The recommendations are advisory in nature only and are not 
249.12  binding on any petitioners or county board for any purpose. 
249.13     The persons circulating the petition shall attach their 
249.14  affidavit swearing or affirming that the persons executing the 
249.15  petition are eligible voters, as defined in section 201.014, of 
249.16  the district and that they signed in the presence of one of the 
249.17  circulators. 
249.18     The auditor shall present the petition to the county board 
249.19  at its next meeting.  At that meeting, the county board shall 
249.20  must determine a date for a hearing.  The hearing shall be not 
249.21  less than 20 nor more than 60 days from the date of that meeting.
249.22     Sec. 8.  Minnesota Statutes 1996, section 122.22, 
249.23  subdivision 5, is amended to read: 
249.24     Subd. 5.  [CERTIFICATION.] Certification executed pursuant 
249.25  to subdivision 2(c) shall must be filed with the auditor.  It 
249.26  shall The certification must contain the following: 
249.27     (a) A copy of the resolution initiating the election; 
249.28     (b) A copy of the notice of election with an affidavit of 
249.29  publication or posting; 
249.30     (c) The question voted on; 
249.31     (d) The results of the election by number of votes cast for 
249.32  and number against the question; and 
249.33     (e) If an advisory ballot is taken on annexation, the 
249.34  question voted on and number of ballots cast for and against the 
249.35  proposal.  
249.36     The auditor shall present the certification to the county 
250.1   board at its next meeting.  At that meeting, the county board 
250.2   shall must determine a date for a hearing.  The hearing shall be 
250.3   not less than 20 nor more than 60 days from the date of that 
250.4   meeting.  
250.5      Sec. 9.  Minnesota Statutes 1996, section 122.22, 
250.6   subdivision 6, is amended to read: 
250.7      Subd. 6.  [HEARING.] When a hearing is ordered under this 
250.8   section, the auditor shall have give ten days' posted notice of 
250.9   the hearing in the district proposed for dissolution, one week's 
250.10  published notice in the county, and ten days' mailed notice to 
250.11  the clerk of the district proposed for dissolution and to the 
250.12  clerk of each adjoining district and to the commissioner.  
250.13  If all or any part of the district proposed for dissolution or 
250.14  any adjoining district lies in another county, the auditor shall 
250.15  forthwith upon establishment of the hearing date, mail notice of 
250.16  the hearing to the auditor of each county so situated upon 
250.17  establishment of the hearing date.  
250.18     Sec. 10.  Minnesota Statutes 1996, section 122.22, 
250.19  subdivision 7a, is amended to read: 
250.20     Subd. 7a.  [INFORMATION TO COUNTY AUDITOR.] (a) Before the 
250.21  day of a hearing ordered pursuant to this section, each district 
250.22  adjoining the district proposed for dissolution shall must 
250.23  provide the following information and resolution to the county 
250.24  auditor of the county containing the greatest land area of the 
250.25  district proposed for dissolution:  
250.26     (1) The outstanding bonded debt, outstanding energy loans 
250.27  made according to section 216C.37 or sections 298.292 to 
250.28  298.298, and the capital loan obligation of the district; 
250.29     (2) The net tax capacity of the district; 
250.30     (3) The most current school tax rates for the district, 
250.31  including any referendum, discretionary, or other optional 
250.32  levies being assessed currently and the expected duration of the 
250.33  levies; 
250.34     (4) A resolution passed by the school board of the district 
250.35  stating that if taxable property of the dissolved district is 
250.36  attached to it, one of the following requirements is imposed:  
251.1      (i) the taxable property of the dissolving district which 
251.2   is attached to its district shall not be liable for the bonded 
251.3   debt, outstanding energy loans made according to section 216C.37 
251.4   or sections 298.292 to 298.298, or the capital loan obligation 
251.5   of the district which existed as of the time of the attachment; 
251.6      (ii) the taxable property of the dissolving district which 
251.7   is attached to its district shall be liable for the payment of 
251.8   the bonded debt, outstanding energy loans made according to 
251.9   section 216C.37 or sections 298.292 to 298.298, or the capital 
251.10  loan obligation of the district which existed as of the time of 
251.11  the attachment in the proportion which the net tax capacity of 
251.12  that part of the dissolving district which is included in the 
251.13  newly enlarged district bears to the net tax capacity of the 
251.14  entire district as of the time of attachment; or 
251.15     (iii) the taxable property of the dissolving district which 
251.16  is attached to its district shall be liable for some specified 
251.17  portion of the amount that could be requested pursuant to 
251.18  subclause (ii).  
251.19     (b) An apportionment pursuant to paragraph (a), clause (4), 
251.20  subclause (ii) or (iii), shall be made by the county auditor of 
251.21  the county containing the greatest land area of the district 
251.22  proposed for transfer.  
251.23     (c) An apportionment of bonded indebtedness, outstanding 
251.24  energy loans made according to section 216C.37 or sections 
251.25  298.292 to 298.298, or capital loan obligation pursuant to 
251.26  paragraph (a), clause (4), subclause (ii) or (iii), shall not 
251.27  relieve any property from any tax liability for payment of any 
251.28  bonded or capital obligation, but taxable property in a district 
251.29  enlarged pursuant to this section becomes primarily liable for 
251.30  the payment of the bonded debt, outstanding energy loans made 
251.31  according to section 216C.37 or sections 298.292 to 298.298, or 
251.32  capital loan obligation to the extent of the proportion stated.  
251.33     Sec. 11.  Minnesota Statutes 1996, section 122.22, 
251.34  subdivision 9, is amended to read: 
251.35     Subd. 9.  [ORDER FOR DISSOLUTION.] (a) An order issued 
251.36  under subdivision 8, clause (b), shall must contain the 
252.1   following: 
252.2      (1) A statement that the district is dissolved unless the 
252.3   results of an election held pursuant to subdivision 11 provide 
252.4   otherwise; 
252.5      (2) A description by words or plat or both showing the 
252.6   disposition of territory in the district to be dissolved; 
252.7      (3) The outstanding bonded debt, outstanding energy loans 
252.8   made according to section 216C.37 or sections 298.292 to 
252.9   298.298, and the capital loan obligation of the district to be 
252.10  dissolved; 
252.11     (4) A statement requiring the fulfillment of the 
252.12  requirements imposed by each adjoining district to which 
252.13  territory in the dissolving district is to be attached regarding 
252.14  the assumption of its outstanding preexisting bonded 
252.15  indebtedness by any territory from the dissolving district which 
252.16  is attached to it; 
252.17     (5) An effective date for the order.  The effective date 
252.18  shall be July 1 of an odd-numbered year unless the school board 
252.19  and the exclusive representative of the teachers in each 
252.20  affected district agree to an effective date of July 1 of an 
252.21  even-numbered year.  The agreement must be in writing and 
252.22  submitted to the commissioner of children, families, and 
252.23  learning; and 
252.24     (6) Other information the county board may desire to 
252.25  include. 
252.26     (b) The auditor shall within ten days from its issuance 
252.27  serve a copy of the order by mail upon the clerk of the district 
252.28  to be dissolved and upon the clerk of each district to which the 
252.29  order attaches any territory of the district to be dissolved and 
252.30  upon the auditor of each other county in which all or any part 
252.31  of the district to be dissolved or any district to which the 
252.32  order attaches territory lies, and upon the commissioner.  
252.33     Sec. 12.  Minnesota Statutes 1996, section 122.22, 
252.34  subdivision 13, is amended to read: 
252.35     Subd. 13.  [ELECTION DATE.] If an election is required 
252.36  under subdivision 11, then before the expiration of a 45 day 
253.1   period after the date of the order for dissolution and 
253.2   attachment, the auditor shall set a date and call the election 
253.3   by filing a written order therefor for the election and serving 
253.4   a copy thereof of the order personally or by mail on the clerk 
253.5   of the district in which the election is to be held.  The date 
253.6   shall be not less than 15 nor more than 30 days after the date 
253.7   of the order, upon which date a special election shall be held 
253.8   in the district proposed for dissolution.  The auditor 
253.9   shall cause post and publish notice of the election to be posted 
253.10  and published according to law.  Upon receipt of the notice, the 
253.11  board shall conduct the election.  
253.12     Sec. 13.  Minnesota Statutes 1996, section 122.22, 
253.13  subdivision 14, is amended to read: 
253.14     Subd. 14.  [ELECTION RESULTS.] The board must certify the 
253.15  results of the election shall be certified by the board to the 
253.16  auditor.  If a majority of all votes cast on the question at the 
253.17  election approve the order, the order becomes final and 
253.18  effective as of the date specified in the order.  Each person 
253.19  served with the order shall be so notified.  If a majority of 
253.20  all votes cast on the question disapprove the order, the 
253.21  proceedings are dismissed, and the order becomes void.  
253.22     Sec. 14.  Minnesota Statutes 1996, section 122.22, 
253.23  subdivision 18, is amended to read: 
253.24     Subd. 18.  [BONDED DEBT.] The bonded debt of a district 
253.25  dissolved under provisions of this section shall must be paid 
253.26  according to levies made therefor for that debt under provision 
253.27  of chapter 475.  The obligation of the taxable property in the 
253.28  dissolved district with reference to the payment of such bonded 
253.29  debt is not affected by this section.  
253.30     Sec. 15.  Minnesota Statutes 1996, section 122.22, 
253.31  subdivision 20, is amended to read: 
253.32     Subd. 20.  [CURRENT ASSETS AND LIABILITIES.] If the 
253.33  dissolved district is not divided by the order of dissolution 
253.34  and attachment, all of its current assets and liabilities, real 
253.35  and personal, and all its legally valid and enforceable claims 
253.36  and contract obligations shall must pass to the district to 
254.1   which it is attached, except as provided in section 122.532.  If 
254.2   the district to be dissolved is divided by the order of 
254.3   dissolution and attachment, the commissioner shall, within 30 
254.4   days after the order is issued, issue an order for the 
254.5   distribution of its current assets and liabilities, real and 
254.6   personal.  If the commissioner's order provides for the transfer 
254.7   of an interest in real estate to a district, this order may also 
254.8   impose a dollar amount as a claim against that district in favor 
254.9   of other districts, and this claim shall be paid and enforced in 
254.10  the manner provided by law for the payment of judgments against 
254.11  a district.  The obligations of districts to the teachers 
254.12  employed by the dissolved district shall be governed by the 
254.13  provisions of section 122.532.  
254.14     Sec. 16.  Minnesota Statutes 1996, section 122.22, 
254.15  subdivision 21, is amended to read: 
254.16     Subd. 21.  [LEVIES.] (a) In the year prior to the effective 
254.17  date of the dissolution of a district, the school board of a 
254.18  district to which all of the dissolving district is to be 
254.19  attached may adopt a resolution directing the school board of 
254.20  the dissolving district to certify levies for general education, 
254.21  basic transportation, and capital expenditure equipment and 
254.22  facilities in an amount not to exceed the maximum amount 
254.23  authorized for the dissolving district for taxes payable in the 
254.24  year the dissolution is effective.  If the dissolving district 
254.25  is to be attached to more than one school district, the boards 
254.26  of the districts to which the dissolving district is to be 
254.27  attached may adopt a joint resolution that accomplishes the 
254.28  purpose in this paragraph. 
254.29     (b) Notwithstanding any other law to the contrary, upon 
254.30  receipt of a resolution under paragraph (a), the board of the 
254.31  dissolving district must certify levies in the amounts specified 
254.32  in the resolution for taxes payable in the year the dissolution 
254.33  is effective.  
254.34     Sec. 17.  Minnesota Statutes 1996, section 122.23, 
254.35  subdivision 2, is amended to read: 
254.36     Subd. 2.  [RESOLUTION.] (a) Upon a resolution of a school 
255.1   board in the area proposed for consolidation or upon receipt of 
255.2   a petition therefor executed by 25 percent of the voters 
255.3   resident in the area proposed for consolidation or by 50 such 
255.4   voters, whichever is lesser less, the county auditor of the 
255.5   county which contains the greatest land area of the proposed new 
255.6   district shall forthwith cause a plat to be prepared prepare a 
255.7   plat.  The resolution or petition shall must show the 
255.8   approximate area proposed for consolidation.  
255.9      (b) The resolution or petition may propose the following: 
255.10     (1) that the bonded debt of the component districts will be 
255.11  paid according to the levies previously made for that debt under 
255.12  chapter 475, or that the taxable property in the newly created 
255.13  district will be taxable for the payment of all or a portion of 
255.14  the bonded debt previously incurred by any component district as 
255.15  provided in subdivision 16; 
255.16     (2) that obligations for a capital loan or an energy loan 
255.17  made according to section 216C.37 or sections 298.292 to 298.298 
255.18  outstanding in a preexisting district as of the effective date 
255.19  of consolidation remain solely with the preexisting district 
255.20  that obtained the loan, or that all or a portion of the loan 
255.21  obligations will be assumed by the newly created or enlarged 
255.22  district and paid by the newly created or enlarged district on 
255.23  behalf of the preexisting district that obtained the loan; 
255.24     (3) that referendum levies previously approved by voters of 
255.25  the component districts pursuant to section 124A.03, subdivision 
255.26  2, or its predecessor provision, be combined as provided in 
255.27  section 122.531, subdivision 2a or 2b, or that the referendum 
255.28  levies be discontinued; 
255.29     (4) that the board of the newly created district consist of 
255.30  the number of members determined by the component districts, 
255.31  which may be six or seven members elected according to 
255.32  subdivision 18, or any number of existing school board members 
255.33  of the component districts, and a method to gradually reduce the 
255.34  membership to six or seven; or 
255.35     (5) that separate election districts from which school 
255.36  board members will be elected, the boundaries of these election 
256.1   districts, and the initial term of the member elected from each 
256.2   of these election districts be established. 
256.3      The resolution must provide for election of board members 
256.4   from one of the following options:  single-member districts; 
256.5   multimember districts; at large; or a combination of these 
256.6   options.  The resolution must include a plan for the orderly 
256.7   transition to the option chosen. 
256.8      A group of districts that operates a cooperative secondary 
256.9   facility funded under section 124.494 may also propose a 
256.10  temporary school board structure as specified in section 
256.11  124.494, subdivision 7. 
256.12     If a county auditor receives more than one request for a 
256.13  plat and the requests involve parts of identical districts, the 
256.14  auditor shall forthwith prepare a plat which in the auditor's 
256.15  opinion best serves the educational interests of the inhabitants 
256.16  of the districts or areas affected.  
256.17     (c) The plat shall must show: 
256.18     (1) Boundaries of the proposed district, as determined by 
256.19  the county auditor, and present district boundaries, 
256.20     (2) The location of school buildings in the area proposed 
256.21  as a new district and the location of school buildings in 
256.22  adjoining districts, 
256.23     (3) The boundaries of any proposed separate election 
256.24  districts, and 
256.25     (4) Other pertinent information as determined by the county 
256.26  auditor.  
256.27     Sec. 18.  Minnesota Statutes 1996, section 122.23, 
256.28  subdivision 2b, is amended to read: 
256.29     Subd. 2b.  [ORDERLY REDUCTION PLAN.] As part of the 
256.30  resolution required by subdivision 2, the school board must 
256.31  prepare a plan for the orderly reduction of the membership of 
256.32  the board to six or seven members and a plan for the 
256.33  establishment or dissolution of election districts.  The plan 
256.34  must be submitted to the secretary of state for review and 
256.35  comment.  
256.36     Sec. 19.  Minnesota Statutes 1996, section 122.23, 
257.1   subdivision 3, is amended to read: 
257.2      Subd. 3.  [SUPPORTING STATEMENT.] The county auditor shall 
257.3   prepare a supporting statement to accompany the plat shall be 
257.4   prepared by the county auditor.  The statement shall must 
257.5   contain: 
257.6      (a) The adjusted net tax capacity of property in the 
257.7   proposed district, 
257.8      (b) If a part of any district is included in the proposed 
257.9   new district, the adjusted net tax capacity of the property and 
257.10  the approximate number of pupils residing in the part of the 
257.11  district included shall be shown separately and the adjusted net 
257.12  tax capacity of the property and the approximate number of 
257.13  pupils residing in the part of the district not included shall 
257.14  also be shown, 
257.15     (c) The reasons for the proposed consolidation, including a 
257.16  statement that at the time the plat is submitted to the state 
257.17  board of education, no proceedings are pending to dissolve any 
257.18  district involved in the plat unless all of the district to be 
257.19  dissolved and all of each district to which attachment is 
257.20  proposed is included in the plat, 
257.21     (d) A statement showing that the jurisdictional fact 
257.22  requirements of subdivision 1 are met by the proposal, 
257.23     (e) Any proposal contained in the resolution or petition 
257.24  regarding the disposition of the bonded debt, outstanding energy 
257.25  loans made according to section 216C.37 or sections 298.292 to 
257.26  298.298, capital loan obligations, or referendum levies of 
257.27  component districts, 
257.28     (f) Any other information the county auditor desires to 
257.29  include, and 
257.30     (g) The signature of the county auditor.  
257.31     Sec. 20.  Minnesota Statutes 1996, section 122.23, 
257.32  subdivision 6, is amended to read: 
257.33     Subd. 6.  [COMMISSIONER.] The commissioner shall, upon 
257.34  receipt of a plat, forthwith examine it and approve, modify or 
257.35  reject it.  The commissioner shall also approve or reject any 
257.36  proposal contained in the resolution or petition regarding the 
258.1   disposition of the bonded debt of the component districts.  If 
258.2   the plat shows the boundaries of proposed separate election 
258.3   districts and if the commissioner modifies the plat, the 
258.4   commissioner shall also modify the boundaries of the proposed 
258.5   separate election districts.  The commissioner shall conduct a 
258.6   hearing at the nearest county seat in the area upon reasonable 
258.7   notice to the affected districts and county boards if requested 
258.8   within 20 days after submission of the plat.  Such a hearing may 
258.9   be requested by The board of any affected district, a county 
258.10  board of commissioners, or the petition of 20 resident voters 
258.11  living within the area proposed for consolidation may request 
258.12  such a hearing.  The commissioner shall endorse on the plat 
258.13  action regarding any proposal for the disposition of the bonded 
258.14  debt of component districts and the reasons for these actions 
258.15  and.  Within 60 days of the date of the receipt of the plat, the 
258.16  commissioner shall return it to the county auditor who submitted 
258.17  it.  The commissioner shall furnish a copy of that plat, and the 
258.18  supporting statement and its endorsement to the auditor of each 
258.19  county containing any land area of the proposed new district.  
258.20  If land area of a particular county was included in the plat, as 
258.21  submitted by the county auditor, and all of such land area is 
258.22  excluded in the plat as modified and approved, the commissioner 
258.23  shall also furnish a copy of the modified plat, supporting 
258.24  statement, and any endorsement to the auditor of such county.  
258.25     Sec. 21.  Minnesota Statutes 1996, section 122.23, 
258.26  subdivision 7, is amended to read: 
258.27     Subd. 7.  [NOTICE TO BOARD.] Upon receipt of an approved 
258.28  plat, the county auditor shall forthwith notify the board of any 
258.29  district, all or part of whose land is included in the proposed 
258.30  new district.  
258.31     Sec. 22.  Minnesota Statutes 1996, section 122.23, 
258.32  subdivision 8, is amended to read: 
258.33     Subd. 8.  [BOARD ADOPTION.] The board of any independent 
258.34  district maintaining a secondary school, the board of any common 
258.35  district maintaining a secondary school, all or part of whose 
258.36  land is included in the proposed new district, shall must, 
259.1   within 45 days of the approval of the plat by the commissioner, 
259.2   either adopt or reject the plan as proposed in the approved 
259.3   plat.  If the board of any such district entitled to act on the 
259.4   petition rejects the proposal, the proceedings are terminated 
259.5   and dismissed.  If any board fails to act on the plat within the 
259.6   time allowed, the proceedings are terminated.  
259.7      Sec. 23.  Minnesota Statutes 1996, section 122.23, 
259.8   subdivision 9, is amended to read: 
259.9      Subd. 9.  [MULTIPLE DISTRICTS; APPROVAL.] If the approved 
259.10  plat contains land area in more than one independent district 
259.11  maintaining a secondary school, or common district maintaining a 
259.12  secondary school, and if each board entitled to act on the plat 
259.13  approves the plat, each board shall cause publish notice of its 
259.14  action to be published at least once in its official newspaper.  
259.15  If all of the school boards entitled to act on the plat call, by 
259.16  resolution, for an election on the question, or if five percent 
259.17  of the eligible voters of any such district petition the clerk 
259.18  of the district, within 30 days after the publication of the 
259.19  notice, for an election on the question, the consolidation shall 
259.20  not become effective until approved by a majority vote in the 
259.21  district at an election held in the manner provided in 
259.22  subdivisions 11, 12, and 13.  
259.23     Sec. 24.  Minnesota Statutes 1996, section 122.23, 
259.24  subdivision 10, is amended to read: 
259.25     Subd. 10.  [APPROVAL BY RESIDENTS.] If an approved plat 
259.26  contains land area in any district not entitled to act on 
259.27  approval or rejection of the plat by action of its board, the 
259.28  plat may be approved by the residents of the land area within 60 
259.29  days of approval of plat by the commissioner in the following 
259.30  manner: 
259.31     A petition calling upon the county auditor to call and 
259.32  conduct an election on the question of adoption or rejection of 
259.33  the plat may be circulated in the land area by any person 
259.34  residing in the area.  Upon the filing of the petition with the 
259.35  county auditor, executed by at least 25 percent of the eligible 
259.36  voters in each district or part of a district contained in the 
260.1   land area, the county auditor shall forthwith call and conduct a 
260.2   special election of the electors resident in the whole land area 
260.3   on the question of adoption of the plat.  For the purposes of 
260.4   this section, the term "electors resident in the whole land area"
260.5   means any person residing on any remaining portion of land, a 
260.6   part of which is included in the consolidation plat.  Any 
260.7   eligible voter owning land included in the plat who lives upon 
260.8   land adjacent or contiguous to that part of the voter's land 
260.9   included in the plat shall be included and counted in computing 
260.10  the 25 percent of the eligible voters necessary to sign the 
260.11  petition and shall also be qualified to sign the petition.  
260.12  Failure to file the petition within 60 days of approval of the 
260.13  plat by the commissioner terminates the proceedings.  
260.14     Sec. 25.  Minnesota Statutes 1996, section 122.23, 
260.15  subdivision 11, is amended to read: 
260.16     Subd. 11.  [NOTICE OF ELECTION.] Upon an election becoming 
260.17  callable under provisions of subdivision 9 or 10, the school 
260.18  board shall give ten days' posted notice of election in the area 
260.19  in which the election is to be held and also if there be a 
260.20  newspaper is published in the area, one weeks' published notice 
260.21  shall be given.  The notice shall must specify the time, place 
260.22  and purpose of the election.  
260.23     Sec. 26.  Minnesota Statutes 1996, section 122.23, 
260.24  subdivision 12, is amended to read: 
260.25     Subd. 12.  [ELECTION.] The school board shall determine the 
260.26  date of the election, the number of boundaries of voting 
260.27  precincts, and the location of the polling places where voting 
260.28  shall be conducted, and the hours the polls will be open.  
260.29  The school board shall also provide official ballots which shall 
260.30  must be used exclusively and shall be in the following form: 
260.31     For consolidation .... 
260.32     Against consolidation .... 
260.33     The school board shall must appoint election judges who 
260.34  shall act as clerks of election.  The ballots and results shall 
260.35  must be certified to the school board who shall canvass and 
260.36  tabulate the total vote cast for and against the proposal.  
261.1      Sec. 27.  Minnesota Statutes 1996, section 122.23, 
261.2   subdivision 13, is amended to read: 
261.3      Subd. 13.  [EFFECTIVE DATE.] If a majority of the votes 
261.4   cast on the question at the election approve the consolidation, 
261.5   and if the necessary approving resolutions of boards entitled to 
261.6   act on the plat have been adopted, the school board shall must, 
261.7   within ten days of the election, notify the county auditor who 
261.8   shall, within ten days of the notice or of the expiration of the 
261.9   period during which an election can be called, issue an order 
261.10  setting a date for the effective date of the change.  The 
261.11  effective date shall must be July 1 of the year determined by 
261.12  the school board in the original resolution adopted under 
261.13  subdivision 2.  The auditor shall mail or deliver a copy of such 
261.14  order to each auditor holding a copy of the plat and to the 
261.15  clerk of each district affected by the order and to the 
261.16  commissioner.  The school board shall must similarly notify the 
261.17  county auditor if the election fails.  The proceedings are then 
261.18  terminated and the county auditor shall so notify the 
261.19  commissioner and the auditors and the clerk of each school 
261.20  district affected.  
261.21     Sec. 28.  Minnesota Statutes 1996, section 122.23, 
261.22  subdivision 14, is amended to read: 
261.23     Subd. 14.  [IDENTIFICATION NUMBER.] Upon receipt of the 
261.24  order creating a new district, the commissioner shall forthwith, 
261.25  by order, assign an identification number to the new district 
261.26  and shall mail a copy of the order to the county auditor and to 
261.27  each auditor who holds a copy of the plat.  If all of the 
261.28  territory in one and only one independent district maintaining a 
261.29  secondary school is included in the new independent district 
261.30  created pursuant to consolidation, and if the commissioner finds 
261.31  that it is more practical and reasonable and in the interest of 
261.32  efficiency and economy of operation to so do, the commissioner 
261.33  may assign to the new district the same number as previously 
261.34  held by the included independent district.  
261.35     Sec. 29.  Minnesota Statutes 1996, section 122.23, 
261.36  subdivision 16, is amended to read: 
262.1      Subd. 16.  [BONDED DEBT.] As of the effective date of the 
262.2   consolidation, the bonded debt of all component districts shall 
262.3   must be paid according to the plan for consolidation proposed in 
262.4   the approved plat and according to this subdivision. 
262.5      (a) If the plan for consolidation so provides, the bonded 
262.6   debt of all component districts shall must be paid according to 
262.7   levies previously made for that debt under chapter 475.  In this 
262.8   case, the obligation of the taxable property in the component 
262.9   districts with reference to the payment of such bonded debt is 
262.10  not affected by the consolidation. 
262.11     (b) If the plan for consolidation makes no provision for 
262.12  the disposition of bonded debt, all the taxable property in the 
262.13  newly created district is taxable for the payment of any bonded 
262.14  debt incurred by any component district in the proportion which 
262.15  the net tax capacity of that part of a preexisting district 
262.16  which is included in the newly created district bears to the net 
262.17  tax capacity of the entire preexisting district as of the time 
262.18  of the consolidation. 
262.19     (c) If the plan for consolidation so provides, all the 
262.20  taxable property in the newly created district will be taxable 
262.21  for a portion of the bonded debt incurred by any component 
262.22  district prior to the consolidation. 
262.23     The county auditor shall make the apportionment required 
262.24  under paragraphs (b) and (c) shall be made by the county auditor 
262.25  and shall be incorporated and incorporate the apportionment as 
262.26  an annex to the order of the commissioner dividing the assets 
262.27  and liabilities of the component parts.  This subdivision shall 
262.28  not relieve any property from any tax liability for payment of 
262.29  any bonded obligation but taxable property in the newly created 
262.30  district becomes primarily liable for the payment of bonded 
262.31  debts to the extent of the proportion stated. 
262.32     Sec. 30.  Minnesota Statutes 1996, section 122.23, 
262.33  subdivision 16c, is amended to read: 
262.34     Subd. 16c.  [BONDS; ELECTION.] The board of the newly 
262.35  created district, when constituted as provided in subdivision 
262.36  17, may provide for an election of that district on the issuance 
263.1   of bonds.  It may issue and sell bonds authorized at the 
263.2   election, or bonds authorized at an election previously held in 
263.3   any preexisting district wholly included within the newly 
263.4   created district, or bonds for a purpose for which an election 
263.5   is not required by law.  The actions may be taken at any time 
263.6   after the date of the county auditor's order issued under 
263.7   subdivision 13, and before or after the date upon which the 
263.8   consolidation becomes effective for other purposes, and taxes 
263.9   for the payment of the bonds shall be levied upon all taxable 
263.10  property in the newly created district.  No bonds shall be 
263.11  delivered to purchasers until 30 days after the date of the 
263.12  county auditor's order.  If within this period a notice of 
263.13  appeal from the county auditor's order to the district court is 
263.14  filed in accordance with section 127.25, no bonds shall be 
263.15  delivered by the newly created district to purchasers unless: 
263.16     (1) the county auditor's order is affirmed by final order 
263.17  of the district court in the special proceeding, and a period of 
263.18  30 days from the service of the final order expires without an 
263.19  appeal being commenced; or, 
263.20     (2) if an appeal is taken, the order is affirmed and the 
263.21  time for petitioning for further review has expired; except 
263.22  that.  Notwithstanding the pendency of the appeal, if all of the 
263.23  territory of one and only one independent district maintaining a 
263.24  secondary school is included in the newly created district, and 
263.25  if the net tax capacity of taxable property in the territory 
263.26  comprises 90 percent or more of the net tax capacity of all 
263.27  taxable property in the newly created district, then the board 
263.28  may issue, sell, and deliver any bonds voted by the preexisting 
263.29  independent district and any bonds voted or otherwise authorized 
263.30  by the newly created district, notwithstanding the pendency of 
263.31  the appeal, and the bonds shall must be paid by the levy of 
263.32  taxes upon the property within the territory of the preexisting 
263.33  independent district and within the other areas, if any, that 
263.34  are finally determined to be properly included within the newly 
263.35  created district.  In any election held in the newly created 
263.36  district as authorized in the preceding sentence, all qualified 
264.1   electors residing within the area of that district as defined in 
264.2   the county auditor's order shall be entitled to vote, but the 
264.3   votes cast by residents of former districts or portions of 
264.4   former districts included in the area, other than the 
264.5   independent district maintaining the secondary school, shall be 
264.6   received and counted separately.  The bonds shall must not be 
264.7   issued and sold unless authorized by a majority of the votes 
264.8   cast thereon by electors of the independent district maintaining 
264.9   the secondary school, and also by a majority of the votes cast 
264.10  thereon by electors residing within the entire area of the newly 
264.11  created district.  
264.12     Sec. 31.  Minnesota Statutes 1996, section 122.23, 
264.13  subdivision 18, is amended to read: 
264.14     Subd. 18.  [BOARD ELECTION; DUTIES.] (a) The county auditor 
264.15  shall determine a date, not less than 30 nor more than 60 days 
264.16  from the date that the order setting the effective date of the 
264.17  consolidation according to subdivision 13 was issued, upon which 
264.18  date shall be held to hold a special election in the district 
264.19  for the purpose of electing a board of six members for terms of 
264.20  four years and until a successor is elected and qualifies 
264.21  according to provisions of law governing the election of board 
264.22  members in independent districts.  Notwithstanding the 
264.23  foregoing, three members of the first board must be elected to 
264.24  terms that expire on the first Monday in January following the 
264.25  first regularly scheduled school district general election that 
264.26  occurs more than six months after the election of the first 
264.27  board and three members must be elected to terms that expire on 
264.28  the first Monday in January following the second school district 
264.29  general election that occurs more than six months after the 
264.30  election of the first board.  If the first board consists of 
264.31  seven members, then four members may be elected at either the 
264.32  first or second regularly scheduled school district general 
264.33  election following the election of the first board.  If the 
264.34  resolution or petition for consolidation pursuant to subdivision 
264.35  2 proposed the establishment of separate election districts, 
264.36  these members shall be elected from separate election districts 
265.1   according to the provisions of that resolution or petition and 
265.2   of chapter 205A. 
265.3      (b) The county auditor shall give ten days' posted notice 
265.4   of election in the area in which the election is to be held and 
265.5   also if there be a newspaper is published in the proposed new 
265.6   district, one weeks' published notice shall be given.  The 
265.7   notice shall must specify the time, place, and purpose of the 
265.8   election. 
265.9      (c) Any person desiring to be a candidate for a school 
265.10  election shall file an application with the county auditor to 
265.11  have the applicant's name placed on the ballot for such office, 
265.12  specifying the term for which the application is made.  The 
265.13  application shall must be filed not less than 21 days before the 
265.14  election. 
265.15     (d) The county auditor shall prepare, at the expense of the 
265.16  county, necessary ballots for the election of officers, placing 
265.17  thereon the names of the proposed candidates for each office.  
265.18  The ballots shall must be marked and signed as official ballots 
265.19  and shall be used exclusively at the election.  The county 
265.20  auditor shall determine the number of voting precincts and the 
265.21  boundaries of each.  The county auditor shall determine the 
265.22  location of polling places and the hours the polls shall be open 
265.23  and shall appoint three election judges for each polling place 
265.24  who shall act as clerks of election.  Election judges shall 
265.25  certify ballots and results to the county auditor for tabulation 
265.26  and canvass. 
265.27     (e) After making a canvass and tabulation, the county 
265.28  auditor shall issue a certificate of election to the candidate 
265.29  for each office who received the largest number of votes cast 
265.30  for the office.  The county auditor shall deliver such 
265.31  certificate to the person entitled thereto to a certificate by 
265.32  certified mail, and each person so certified shall file an 
265.33  acceptance and oath of office with the county auditor within 30 
265.34  days of the date of mailing of the certificate.  A person who 
265.35  fails to qualify prior to the time specified shall be deemed to 
265.36  have refused to serve, but such filing may be made at any time 
266.1   before action to fill vacancy has been taken. 
266.2      (f) The board of each district included in the new enlarged 
266.3   district shall continue to maintain school the schools therein 
266.4   until the effective date of the consolidation.  Such boards 
266.5   shall have power and authority only to make such contracts, to 
266.6   do such things as are necessary to maintain properly maintain 
266.7   the schools for the period prior to that date, and to certify to 
266.8   the county auditor according to levy limitations applicable to 
266.9   the component districts the taxes collectible in the calendar 
266.10  year when the consolidation becomes effective. 
266.11     (g) It shall be the immediate duty of The newly elected 
266.12  board of the new enlarged district has the immediate duty, when 
266.13  after the members thereof have qualified and the board has been 
266.14  organized, to plan for the maintenance of the school or schools 
266.15  of the new district for the next school year, to enter into the 
266.16  necessary negotiations and contracts for the employment of 
266.17  personnel, purchase of equipment and supplies, and other 
266.18  acquisition and betterment purposes, when authorized by the 
266.19  voters to issue bonds under the provisions of chapter 475; and.  
266.20  On the effective date of the consolidation to, the newly elected 
266.21  board must assume the full duties of the care, management and 
266.22  control of the new enlarged district.  The board of the new 
266.23  enlarged district shall must give due consideration to the 
266.24  feasibility of maintaining such existing attendance centers and 
266.25  of establishing such other attendance centers, especially in 
266.26  rural areas, as will afford equitable and efficient school 
266.27  administration and assure the convenience and welfare of the 
266.28  pupils residing in the enlarged district.  The obligations of 
266.29  the new board to teachers employed by component districts shall 
266.30  be governed by the provisions of section 122.532.  The 
266.31  obligations of the new board to nonlicensed employees employed 
266.32  by component districts is governed by subdivision 18a.  
266.33     Sec. 32.  Minnesota Statutes 1996, section 122.23, 
266.34  subdivision 18a, is amended to read: 
266.35     Subd. 18a.  [NONLICENSED EMPLOYEES.] (a) As of the 
266.36  effective date of a consolidation of two or more districts or 
267.1   parts of them, each nonlicensed employee employed by an affected 
267.2   district must be assigned to the newly created district. 
267.3      (b) As of the effective date of a consolidation, any 
267.4   employee organization may petition the commissioner of the 
267.5   bureau of mediation services for a certification election under 
267.6   chapter 179A.  An organization certified as the exclusive 
267.7   representative for nonlicensed employees in a particular 
267.8   preexisting district continues as the exclusive representative 
267.9   for those particular employees for a period of 90 days from the 
267.10  effective date of a consolidation.  If a petition for 
267.11  representation of nonlicensed employees is filed within 90 days, 
267.12  an exclusive representative for those particular nonlicensed 
267.13  employees continues as the exclusive representative until the 
267.14  bureau of mediation services certification proceedings are 
267.15  concluded. 
267.16     (c) The terms and conditions of employment of nonlicensed 
267.17  employees assigned to the newly created district are temporarily 
267.18  governed by contracts executed by an exclusive representative 
267.19  for a period of 90 days from the effective date of the 
267.20  consolidation.  If a petition for representation is filed with 
267.21  the bureau of mediation services within the 90 days, the 
267.22  contractual terms and conditions of employment for those 
267.23  nonlicensed employees who were governed by a preexisting 
267.24  contract continue in effect until the bureau of mediation 
267.25  services proceedings are concluded and, if an exclusive 
267.26  representative has been elected, until successor contracts are 
267.27  executed between the board of the newly created district and the 
267.28  new exclusive representative.  The terms and conditions of 
267.29  employment of nonlicensed employees assigned to the newly 
267.30  created district who were not governed by a collective 
267.31  bargaining agreement at the time of the consolidation are 
267.32  governed by the policies of the board of the newly created 
267.33  district. 
267.34     (d) The date of first employment in the newly created 
267.35  district is the date on which services were first performed by 
267.36  the employee in the preexisting district.  Any sick leave, 
268.1   vacation time, or severance pay benefits accumulated under 
268.2   policies of the preexisting district or contracts between the 
268.3   exclusive representatives and the board of the preexisting 
268.4   district continue to apply in the newly created district to the 
268.5   employees of the preexisting districts, subject to any maximum 
268.6   accumulation limitations negotiated in a successor contract.  
268.7   Future leaves of absence, vacations, or other benefits to be 
268.8   accumulated in the newly created district are governed by board 
268.9   policy or by contract between the exclusive representative of an 
268.10  appropriate unit of employees and the board of the newly created 
268.11  district.  The board of the newly created district shall must 
268.12  provide, to transferred nonlicensed employees, open enrollment 
268.13  in all insurance plans with no limit on preexisting conditions.  
268.14     Sec. 33.  Minnesota Statutes 1996, section 122.23, 
268.15  subdivision 20, is amended to read: 
268.16     Subd. 20.  [RETIREMENT INCENTIVES.] (a) For consolidations 
268.17  effective July 1, 1994, and thereafter, a school board of a 
268.18  district may offer early retirement incentives to licensed and 
268.19  nonlicensed staff.  The early retirement incentives that the 
268.20  board may offer are: 
268.21     (1) the payment of employer pension plan contributions for 
268.22  a specified period of allowable service credit for district 
268.23  employees who have at least ten years of allowable service 
268.24  credit in the applicable pension plan under paragraph (b); 
268.25     (2) an extended leave of absence for an eligible employee 
268.26  under section 125.60; 
268.27     (3) severance payment incentives under paragraph (c); and 
268.28     (4) the employer payment of the premiums for continued 
268.29  health insurance coverage under paragraph (d). 
268.30     These incentives may only be offered to employees who 
268.31  terminate active employment with the school district or who 
268.32  enter into an extended leave of absence as a result of the 
268.33  consolidation, whichever applies.  The board may determine the 
268.34  staff to whom the incentives are offered.  Unilateral 
268.35  implementation of this section by a school board is not an 
268.36  unfair labor practice under chapter 179A. 
269.1      (b) An employee with at least ten years of allowable 
269.2   service credit in the applicable pension plan who is offered an 
269.3   early retirement incentive under paragraph (a), clause (1), may 
269.4   purchase up to five additional years of allowable service credit 
269.5   from the applicable pension plan.  To do so, the former employee 
269.6   must pay the member contributions to the pension plan annually 
269.7   in a manner and in accord with a schedule specified by the 
269.8   executive director of the applicable fund.  If the former 
269.9   employee makes the member contribution, the board shall must 
269.10  make the applicable employer contribution.  The salary used to 
269.11  determine these contributions is the salary of the person in the 
269.12  last year that the former employee was employed by the 
269.13  district.  During the period of continuing member and employer 
269.14  contributions, the person is not considered to be an active 
269.15  member of the applicable pension plan, is not eligible for any 
269.16  active member disability or survivorship benefit coverage, and 
269.17  is not included in any postemployment termination benefit plan 
269.18  changes unless the applicable benefit legislation provides 
269.19  otherwise.  Continued eligibility to purchase service credit 
269.20  under this paragraph expires if the person is subsequently 
269.21  employed during the service purchase period by a public employer 
269.22  with retirement coverage under a pension plan specified in 
269.23  section 356.30, subdivision 3. 
269.24     (c) Severance payment incentives must conform with sections 
269.25  465.72, 465.721, and 465.722. 
269.26     (d) The board may offer a former employee continued 
269.27  employer-paid health insurance coverage.  Coverage may not 
269.28  extend beyond age 65 or the end of the first month in which the 
269.29  employee is eligible for employer-paid health insurance coverage 
269.30  from a new employer.  For purposes of this subdivision, 
269.31  "employer-paid health insurance coverage" means medical, 
269.32  hospitalization, or health insurance coverage provided through 
269.33  an insurance company that is licensed to do business in the 
269.34  state and for which the employing unit pays more than one-half 
269.35  of the cost of the insurance premiums. 
269.36     (e) A school board may offer these incentives beginning on 
270.1   the day that the consolidation is approved under section 122.23, 
270.2   subdivision 12 or, if an election is not called under section 
270.3   122.23, subdivision 9 or 10, on the day that the plat is 
270.4   approved by the commissioner.  A board may offer these 
270.5   incentives until the June 30 following the effective date of the 
270.6   consolidation.  
270.7      Sec. 34.  Minnesota Statutes 1996, section 122.241, is 
270.8   amended to read: 
270.9      122.241 [COOPERATION AND COMBINATION.] 
270.10     Subdivision 1.  [SCOPE.] Sections 122.241 to 122.248 
270.11  establish procedures for school boards that adopt, by 
270.12  resolution, a five-year written agreement: 
270.13     (1) to provide at least secondary instruction cooperatively 
270.14  for at least one or two years, if the districts cooperate 
270.15  according to subdivision 2; and 
270.16     (2) to combine into one district.  
270.17     Subd. 2.  [COOPERATION REQUIREMENTS.] Cooperating districts 
270.18  shall must: 
270.19     (1) implement a written agreement according to section 
270.20  122.541 no later than the first year of cooperation; 
270.21     (2) all be members of one education district, if any one of 
270.22  the districts is a member, no later than the end of the second 
270.23  year of cooperation; and 
270.24     (3) all be members of one SC, if any one of the districts 
270.25  is a member. 
270.26     Clause (1) does not apply to a district that implemented an 
270.27  agreement for secondary education, according to section 122.535, 
270.28  during any year before the 1991-1992 school year.  If the 
270.29  districts cooperate for one or more years, the agreement may be 
270.30  continued during those years. 
270.31     Subd. 3.  [COMBINATION REQUIREMENTS.] Combining districts 
270.32  must be contiguous and meet one of the following requirements at 
270.33  the time of combination:  
270.34     (1) at least two districts with at least 400 resident 
270.35  pupils enrolled in grades 7 through 12 in the combined district 
270.36  and projections, approved by the department of children, 
271.1   families, and learning, of enrollment at least at that level for 
271.2   five years; 
271.3      (2) at least two districts if either: 
271.4      (i) both of the districts qualify for secondary sparsity 
271.5   revenue under section 124A.22, subdivision 6, and have an 
271.6   average isolation index over 23; or 
271.7      (ii) the combined district qualifies for secondary sparsity 
271.8   revenue; 
271.9      (3) at least three districts with fewer than 400 resident 
271.10  pupils enrolled in grades 7 through 12 in the combined district; 
271.11  or 
271.12     (4) at least two districts with fewer than 400 resident 
271.13  pupils enrolled in grades 7 through 12 in the combined district 
271.14  if either district is located on the border of the state. 
271.15     A combination under clause (2), (3), or (4) must be 
271.16  approved by the commissioner of children, families, and 
271.17  learning.  The commissioner shall disapprove a combination under 
271.18  clause (2), (3), or (4) if the combination is educationally 
271.19  unsound or would not reasonably enable the districts to fulfill 
271.20  statutory and rule requirements. 
271.21     Sec. 35.  Minnesota Statutes 1996, section 122.242, 
271.22  subdivision 1, is amended to read: 
271.23     Subdivision 1.  [ADOPTION AND STATE BOARD REVIEW.] Each 
271.24  school board must adopt, by resolution, a plan for cooperation 
271.25  and combination.  The plan must address each item in this 
271.26  section.  The plan must be specific for any item that will occur 
271.27  within three years and may be general or set forth alternative 
271.28  resolutions for an item that will occur in more than three 
271.29  years.  The plan must be submitted to the state board of 
271.30  education and the secretary of state for review and comment.  
271.31  Significant modifications and specific resolutions of items must 
271.32  be submitted to the state board for review and comment.  In the 
271.33  official newspaper of each district proposed for combination, 
271.34  the school board must publish at least a summary of the adopted 
271.35  plans, each significant modification and resolution of items, 
271.36  and each state board review and comment. 
272.1      Sec. 36.  Minnesota Statutes 1996, section 122.242, 
272.2   subdivision 3, is amended to read: 
272.3      Subd. 3.  [BOARD FORMATION.] The plan must state:  
272.4      (1) whether the new district would have one elected school 
272.5   board or whether it would have one elected school board and one 
272.6   elected board for each elementary school exercising powers and 
272.7   duties delegated to it by the school board of the entire 
272.8   district; 
272.9      (2) how many of the existing members of each district would 
272.10  become members of the school board of the combined district and, 
272.11  if so, a method to gradually reduce the membership to six or 
272.12  seven; and 
272.13     (3) if desired, election districts that include the 
272.14  establishment of separate areas from each of the combining 
272.15  districts from which school board members will be elected, the 
272.16  boundaries of these election districts, and the initial term of 
272.17  the member elected from each of these election districts.  
272.18     Sec. 37.  Minnesota Statutes 1996, section 122.242, 
272.19  subdivision 8, is amended to read: 
272.20     Subd. 8.  [REFERENDUM.] The plan must set forth:  
272.21     (1) procedures for a referendum, held prior to the year of 
272.22  the proposed combination, to approve combining the school 
272.23  districts; and 
272.24     (2) whether a majority of those voting in each district 
272.25  proposed for combination or a majority of those voting on the 
272.26  question in the entire area proposed for combination would be 
272.27  needed to pass the referendum.  
272.28     Sec. 38.  Minnesota Statutes 1996, section 122.242, 
272.29  subdivision 9, is amended to read: 
272.30     Subd. 9.  [FINANCES.] The plan must state:  
272.31     (1) whether debt service for the bonds outstanding at the 
272.32  time of combination remains solely with the district that issued 
272.33  the bonds or whether all or a portion of the debt service for 
272.34  the bonds will be assumed by the combined district and paid by 
272.35  the combined district on behalf of the district that issued the 
272.36  bonds; 
273.1      (2) whether obligations for a capital loan or energy loan 
273.2   made according to section 216C.37 or sections 298.292 to 298.298 
273.3   outstanding at the time of combination remain solely with the 
273.4   district that obtained the loan, or whether all or a portion of 
273.5   all the loan obligations will be assumed by the combined 
273.6   district and paid by the combined district on behalf of the 
273.7   district that obtained the loan; 
273.8      (3) the treatment of debt service levies, down payment 
273.9   levies under section 124.82, and referendum levies; 
273.10     (4) whether the cooperating or combined district will levy 
273.11  for reorganization operating debt according to section 121.915, 
273.12  clause (1); and 
273.13     (5) two- and five-year projections, prepared by the 
273.14  department of children, families, and learning upon the request 
273.15  of any district, of revenues, expenditures, and property taxes 
273.16  for each district if it cooperated and combined and if it did 
273.17  not. 
273.18     Sec. 39.  Minnesota Statutes 1996, section 122.243, is 
273.19  amended to read: 
273.20     122.243 [STATE BOARD AND VOTER APPROVAL.] 
273.21     Subdivision 1.  [COMMISSIONER APPROVAL.] Before submitting 
273.22  the question of combining school districts to the voters at a 
273.23  referendum, the cooperating districts shall must submit the 
273.24  proposed combination to the commissioner of children, families, 
273.25  and learning.  The commissioner shall determine the date for 
273.26  submission and may require any information it determines 
273.27  necessary.  The commissioner shall disapprove the proposed 
273.28  combination if it is educationally unsound, will not reasonably 
273.29  enable the combined district to fulfill statutory and rule 
273.30  requirements, or if the plan or modifications are incomplete.  
273.31  If disapproved by the commissioner, the referendum shall be 
273.32  postponed, but not canceled, by the school boards. 
273.33     Subd. 2.  [VOTER APPROVAL.] A referendum on the question of 
273.34  combination shall must be conducted during the first or second 
273.35  year of cooperation for districts that cooperate according to 
273.36  section 122.241, or no more than 18 months before the effective 
274.1   date of combination for districts that do not cooperate.  The 
274.2   referendum shall must be on a date called by the school boards.  
274.3   The referendum shall must be conducted by the school boards 
274.4   according to the Minnesota election law, as defined in section 
274.5   200.01.  If the referendum fails, the same question or a 
274.6   modified question may be submitted.  If the referendum fails 
274.7   again, the districts shall must modify their cooperation and 
274.8   combination plan.  A third referendum may be conducted.  If a 
274.9   second or third referendum is conducted after October 1, the 
274.10  newly combined district may not levy under section 124.2725 
274.11  until the following year.  Referendums shall be conducted on the 
274.12  same date in all districts. 
274.13     Sec. 40.  Minnesota Statutes 1996, section 122.245, 
274.14  subdivision 2, is amended to read: 
274.15     Subd. 2.  [NONLICENSED EMPLOYEES TERMINATION.] If 
274.16  compatible plans are not negotiated according to section 
274.17  122.242, subdivision 5, the school boards shall comply with this 
274.18  subdivision with respect to nonlicensed employees.  Nonlicensed 
274.19  employees whose positions are discontinued as a result of 
274.20  cooperation or combination, as applicable, shall be:  
274.21     (1) employed by a cooperating board or the combined board, 
274.22  if possible; 
274.23     (2) assigned to work in a cooperating district or the 
274.24  combined district, if possible; or 
274.25     (3) terminated in the inverse order in which they were 
274.26  employed in a district, according to a combined seniority list 
274.27  of nonlicensed employees in the cooperating or combined 
274.28  district, as applicable.  
274.29     Sec. 41.  Minnesota Statutes 1996, section 122.246, is 
274.30  amended to read: 
274.31     122.246 [COUNTY AUDITOR PLAT.] 
274.32     Upon the request of two or more districts that have adopted 
274.33  a resolution to cooperate and combine, the county auditor shall 
274.34  prepare a plat.  If the proposed combined district is located in 
274.35  more than one county, the request shall must be submitted to the 
274.36  county auditor of the county that has the greatest land area in 
275.1   the proposed district.  The plat shall must show: 
275.2      (1) the boundaries of each of the present districts; 
275.3      (2) the boundaries of the proposed district; 
275.4      (3) the boundaries of proposed election districts, if 
275.5   requested; and 
275.6      (4) other information deemed pertinent by the school boards 
275.7   or the county auditor. 
275.8      Sec. 42.  Minnesota Statutes 1996, section 122.247, 
275.9   subdivision 2, is amended to read: 
275.10     Subd. 2.  [BONDED DEBT.] Debt service for bonds outstanding 
275.11  at the time of the combination may be levied by the 
275.12  combined school board consistent with the plan adopted according 
275.13  to section 122.242, and any subsequent modifications, subject to 
275.14  section 475.61.  The primary obligation to pay the bonded 
275.15  indebtedness that is outstanding on the effective date of 
275.16  combination remains with the district that issued the bonds.  
275.17  However, the combined district may make debt service payments on 
275.18  behalf of a preexisting district.  
275.19     Sec. 43.  Minnesota Statutes 1996, section 122.247, 
275.20  subdivision 2a, is amended to read: 
275.21     Subd. 2a.  [CAPITAL LOAN.] The combined school board may 
275.22  levy for the obligations for a capital loan outstanding at the 
275.23  time of combination, consistent with the plan adopted according 
275.24  to section 122.242 and any subsequent modifications.  The 
275.25  primary obligation to levy as required by the capital loan 
275.26  remains with taxable property in the preexisting district that 
275.27  obtained the capital loan.  However, the obligation of a capital 
275.28  loan may be extended to all of the taxable property in the 
275.29  combined district.  
275.30     Sec. 44.  Minnesota Statutes 1996, section 122.248, is 
275.31  amended to read: 
275.32     122.248 [REPORTS TO DEPARTMENT OF CHILDREN, FAMILIES, AND 
275.33  LEARNING.] 
275.34     Cooperating districts may submit joint reports and jointly 
275.35  provide information required by the department of children, 
275.36  families, and learning.  The joint reports must allow 
276.1   information to be attributed to each district.  A combined 
276.2   district must report and provide information as a single unit.  
276.3      Sec. 45.  Minnesota Statutes 1996, section 122.25, 
276.4   subdivision 2, is amended to read: 
276.5      Subd. 2.  [BOARD ELECTION.] At the annual meeting, if a 
276.6   majority of the votes cast on the question favors the conversion 
276.7   to an independent district, a board of six members shall be 
276.8   elected.  Nominations may be made from the floor of the meeting 
276.9   and election shall be by secret ballot.  All board members 
276.10  elected at this meeting shall serve for terms expiring on the 
276.11  third Tuesday in the next May next following the election on 
276.12  which date a regular annual election shall be held in the manner 
276.13  provided by law.  At this first annual election for independent 
276.14  districts, six directors shall be elected, two to hold office 
276.15  until July 1 following the next annual election, two to hold 
276.16  office until the expiration of one year from said July 1 and two 
276.17  to hold office until the expiration of two years from said July 
276.18  1; the time which each director shall hold office being 
276.19  designated on the ballot.  
276.20     Sec. 46.  Minnesota Statutes 1996, section 122.25, 
276.21  subdivision 3, is amended to read: 
276.22     Subd. 3.  [IDENTIFICATION NUMBER.] If the organization of 
276.23  the district is changed from common to independent at the 
276.24  meeting, the clerk shall forthwith notify the auditor and the 
276.25  commissioner.  
276.26     Upon receipt of such notification, the commissioner shall 
276.27  forthwith assign a new identification number to the district and 
276.28  shall notify the auditor and the clerk of the district thereof.  
276.29     Sec. 47.  Minnesota Statutes 1996, section 122.32, is 
276.30  amended to read: 
276.31     122.32 [REMAINING DISTRICTS, ACTION OF COUNTY BOARD; 
276.32  ELECTION.] 
276.33     Subdivision 1.  [DISSOLUTION.] If there be Any organized 
276.34  school district not maintaining a classified school within the 
276.35  district, except those districts which have a contract with a 
276.36  state university or with the board of regents of the University 
277.1   of Minnesota for the education of all the children of the 
277.2   district, such district shall hereby be dissolved as of the date 
277.3   the district ceases to maintain a classified school.  Any such 
277.4   district not maintaining a classified school shall forthwith 
277.5   must be attached by order of the county board to such district 
277.6   maintaining classified elementary or secondary schools upon 
277.7   notice and hearing as provided in section 122.22 for the 
277.8   attachment of dissolved districts. 
277.9      Subd. 2.  [SPECIAL ELECTION.] Prior to the order of the 
277.10  county board, the board may direct the county auditor to call a 
277.11  special election in the manner and form in which district 
277.12  elections are held.  The purpose of the election shall be to 
277.13  determine to which district or districts the dissolved district 
277.14  shall be attached.  The county board after hearing shall must 
277.15  determine the form of question as it should appear on the 
277.16  ballot.  The results of the election shall be advisory in nature 
277.17  only. 
277.18     Subd. 3.  [ORDER; ASSET AND LIABILITY TRANSFER.] The county 
277.19  auditor shall certify the results of the election shall be 
277.20  certified by the county auditor to the county board and.  Within 
277.21  45 days after such election, the county board shall must issue 
277.22  its order dissolving the district.  The order shall must also 
277.23  attach the dissolved district to a proper district as determined 
277.24  by the county board, and a copy of such order shall must be 
277.25  filed with the commissioner of children, families, and 
277.26  learning.  Title to all the property, real and personal, of the 
277.27  district dissolved passes to the district to which such 
277.28  dissolved district is attached.  If a district is divided by 
277.29  virtue of the proceedings the county board shall issue its order 
277.30  providing for the division of the current assets and liabilities 
277.31  according to such terms as it may deem just and equitable.  If 
277.32  the order of the county board attaches any land area to a 
277.33  district with bonded debt, the taxable property in such area 
277.34  assumes its proportionate share of the authorized and 
277.35  outstanding debt of the district to which it is attached. 
277.36     Sec. 48.  Minnesota Statutes 1996, section 122.34, is 
278.1   amended to read: 
278.2      122.34 [PRIVATE SCHOOLS IN NONOPERATING DISTRICTS.] 
278.3      Section 122.32 shall not apply to any school district in 
278.4   which is located any existing private school maintaining 
278.5   elementary and secondary education for 75 percent of eligible 
278.6   pupils within the district and complying with the requirements 
278.7   of section 120.101.  
278.8      Sec. 49.  Minnesota Statutes 1996, section 122.355, is 
278.9   amended to read: 
278.10     122.355 [BORDER DISTRICTS; CONTINUED OPERATION.] 
278.11     Subdivision 1.  [BORDER DISTRICTS.] The common school 
278.12  districts situated along the border of the state of Minnesota 
278.13  and the state of Wisconsin which have, for the preceding 25 
278.14  years, prior to May 26, 1965 been educating pupils of their 
278.15  district in school districts in Wisconsin may continue to 
278.16  operate as common school districts notwithstanding that any of 
278.17  such school districts do not maintain classified schools.  
278.18  Such school districts are not subject to the terms and 
278.19  provisions of sections 122.32 to 122.52. 
278.20     Subd. 2.  [CONTINUED OPERATION.] The provisions of 
278.21  subdivision 1 shall remain in effect as long as the school 
278.22  district does not discontinue the practice of education for 
278.23  their district as described in subdivision 1. 
278.24     Sec. 50.  Minnesota Statutes 1996, section 122.41, is 
278.25  amended to read: 
278.26     122.41 [DUTY TO MAINTAIN ELEMENTARY AND SECONDARY SCHOOLS.] 
278.27     Each school district shall must maintain classified 
278.28  elementary and secondary schools, grades 1 through 12, unless 
278.29  the district is exempt according to section 122.34 or 122.355, 
278.30  has made an agreement with another district or districts as 
278.31  provided in sections 122.535, 122.541, or sections 122.241 to 
278.32  122.248, or 122.93, subdivision 8, or has received a grant under 
278.33  sections 124.492 to 124.495.  A district that has an agreement 
278.34  according to sections 122.241 to 122.248 or 122.541 shall must 
278.35  operate a school with the number of grades required by those 
278.36  sections.  A district that has an agreement according to section 
279.1   122.535 or 122.93, subdivision 8, or has received a grant under 
279.2   sections 124.492 to 124.495 shall must operate a school for the 
279.3   grades not included in the agreement, but not fewer than three 
279.4   grades.  
279.5      Sec. 51.  Minnesota Statutes 1996, section 122.43, is 
279.6   amended to read: 
279.7      122.43 [PHASE OUT OF DISSOLVED DISTRICT.] 
279.8      Subd. 2.  [MAINTAIN SCHOOLS.] The board of each district so 
279.9   dissolved shall continue to maintain school schools until all 
279.10  its territory has been attached to a proper district not later 
279.11  than July 1.  Such boards shall only make such contracts and do 
279.12  such things as are necessary to properly maintain schools 
279.13  properly for the period they may be in session prior to the 
279.14  attachment.  
279.15     Sec. 52.  Minnesota Statutes 1996, section 122.44, is 
279.16  amended to read: 
279.17     122.44 [PROCEDURE FOR ATTACHMENT TO ORGANIZED DISTRICTS.] 
279.18     Subdivision 1.  [ATTACHMENT.] Upon notice and hearing, as 
279.19  provided in section 122.22 for the attachment of dissolved 
279.20  districts, all territory of school districts dissolved by 
279.21  sections 122.41 to 122.52 and all area of the state not in a 
279.22  district maintaining classified elementary and secondary schools 
279.23  shall must be attached by order of the county board to organized 
279.24  districts maintaining classified elementary and secondary 
279.25  schools, grades 1 through 12, unless a district has made an 
279.26  agreement with another district or districts as provided in 
279.27  section 122.535 or 122.541. 
279.28     Sec. 53.  Minnesota Statutes 1996, section 122.45, 
279.29  subdivision 2, is amended to read: 
279.30     Subd. 2.  [TAXABLE PROPERTY.] As of the effective date of 
279.31  the attachment, all the taxable property in the newly enlarged 
279.32  district is taxable for the payment of any bonded debt 
279.33  theretofore already incurred by any component district in the 
279.34  proportion which the net tax capacity of that part of a 
279.35  preexisting district which is included in the newly enlarged 
279.36  district bears to the net tax capacity of the entire preexisting 
280.1   district as of the time of the attachment.  The county auditor 
280.2   shall make this apportionment shall be made by the county 
280.3   auditor and shall be incorporated and incorporate the 
280.4   apportionment as an annex to the order of the commissioner 
280.5   dividing the assets and liabilities of the component parts.  
280.6   This subdivision shall not relieve any property from any tax 
280.7   liability for payment of any bonded obligation but taxable 
280.8   property in the newly enlarged district becomes primarily liable 
280.9   for the payment of bonded debts to the extent of the proportion 
280.10  stated.  
280.11     Sec. 54.  Minnesota Statutes 1996, section 122.45, 
280.12  subdivision 3a, is amended to read: 
280.13     Subd. 3a.  [REIMBURSEMENT; SPECIAL LEVY.] (a) Liabilities 
280.14  of a dissolved district existing at the time of the attachment 
280.15  other than bonded debt within the purview of subdivision 2 shall 
280.16  must be obligations of the consolidated district after 
280.17  attachment (in the amount and kind determined by the 
280.18  commissioner according to subdivision 1, where a dissolved 
280.19  district is divided), for the payment of which the consolidated 
280.20  district has a right to reimbursement by special levy or 
280.21  levies.  The amount of reimbursement will be equal to the 
280.22  liabilities of the dissolved district for which the consolidated 
280.23  district is obligated less the aggregate of the following which 
280.24  has been or will be received by the consolidated district at or 
280.25  after the time of attachment from or as a result of the 
280.26  dissolution and attachment of the dissolved district: 
280.27     (1) all taxes inuring to the consolidating district upon 
280.28  levies made by the dissolved district; 
280.29     (2) all cash, bank accounts, investments, and other current 
280.30  assets; 
280.31     (3) earned state aids of the dissolved districts; 
280.32     (4) returns from the sale of property of the dissolved 
280.33  district. 
280.34     (b) The amount of such special levy so computed shall be 
280.35  certified to the county auditor with the other tax requirements 
280.36  of the consolidated district but separately stated and 
281.1   identified.  The auditor shall add the amount of special levy so 
281.2   certified to the school rate for the territory in the 
281.3   consolidated district which came from the dissolved district and 
281.4   include it in the levy on the taxable property in that 
281.5   territory; provided,.  The county auditor shall not spread more 
281.6   of the amount certified for special levy in any year than will 
281.7   amount to 20 percent of the school levy without the special 
281.8   levy, leaving the remaining part of the certified amount for 
281.9   levy in successive years without further certification.  Any 
281.10  amount of reimbursement to which it is entitled omitted by the 
281.11  consolidated district from its initial certification for special 
281.12  levy may be certified in a subsequent year for levy in the same 
281.13  manner as the levy upon initial certification. 
281.14     The levy authorized by this subdivision shall be in 
281.15  addition to those otherwise authorized for a school district.  
281.16     Sec. 55.  Minnesota Statutes 1996, section 122.46, is 
281.17  amended to read: 
281.18     122.46 [OFFICERS AND TEACHERS, TRANSITIONAL PROVISIONS.] 
281.19     Subdivision 1.  [BOARD.] The board of the district 
281.20  maintaining a secondary school to which district is attached 
281.21  territory of districts discontinued by sections 122.41 to 122.52 
281.22  shall must assume the duties and responsibilities of the board 
281.23  of the district so enlarged for the balance of the term to which 
281.24  the members were elected.  At the next annual school election 
281.25  the successors to the members whose terms then expire shall be 
281.26  elected by the legally qualified voters of the newly enlarged 
281.27  district.  Thereafter board members shall be elected according 
281.28  to the election procedure established for the election of board 
281.29  members in independent districts. 
281.30     Sec. 56.  Minnesota Statutes 1996, section 122.47, is 
281.31  amended to read: 
281.32     122.47 [SPECIAL SCHOOL DISTRICTS, APPLICATION.] 
281.33     When provisions of sections 122.41 to 122.52 are made to 
281.34  apply to any special school district, such district shall hereby 
281.35  be converted to an independent school district on the effective 
281.36  date specified in the orders issued under provisions of sections 
282.1   122.41 to 122.52.  All applicable provisions of Minnesota 
282.2   Statutes 1965, section 122.26, relating to such conversions 
282.3   shall otherwise be in force.  To the extent that any law or 
282.4   charter provision of any special district is inconsistent with 
282.5   the status of an independent school district or the powers 
282.6   common to independent school districts, such law or charter 
282.7   provision is hereby repealed.  Provided, however, that nothing 
282.8   in sections 122.41 to 122.52 shall in any way invalidate 
282.9   remaining portions of such laws or home rule charters, or the 
282.10  continuance of such special school districts to which no new 
282.11  territory is attached under the provisions of sections 122.41 to 
282.12  122.52.  
282.13     Sec. 57.  Minnesota Statutes 1996, section 122.48, is 
282.14  amended to read: 
282.15     122.48 [PRIVATE SCHOOLS.] 
282.16     Sections 122.41 to 122.46 shall not apply to any school 
282.17  district in which is located any existing private school 
282.18  maintaining elementary and secondary education for 75 percent of 
282.19  the eligible pupils within the district and complying with the 
282.20  requirements of section 120.101. 
282.21     Sec. 58.  Minnesota Statutes 1996, section 122.531, 
282.22  subdivision 2c, is amended to read: 
282.23     Subd. 2c.  [DISCONTINUED REFERENDUM REVENUE.] If the plan 
282.24  for consolidation provides for discontinuance of referendum 
282.25  revenue previously approved by voters of the component districts 
282.26  pursuant to section 124A.03, subdivision 2, or its predecessor 
282.27  provision, the newly created district shall must not receive 
282.28  referendum revenue unless the voters of the newly created 
282.29  district authorize referendum revenue pursuant to section 
282.30  124A.03, subdivision 2.  
282.31     Sec. 59.  Minnesota Statutes 1996, section 122.531, 
282.32  subdivision 5a, is amended to read: 
282.33     Subd. 5a.  [SUPPLEMENTAL REVENUE.] (a) For purposes of 
282.34  computing the supplemental revenue and the minimum allowance 
282.35  under section 124A.22, subdivision 9, paragraph (b), in the case 
282.36  of a consolidation, the newly created district's 1991-1992 
283.1   revenue and 1991-1992 actual pupil units are the sum of the 
283.2   1991-1992 revenue and 1991-1992 pupil units, respectively, of 
283.3   the former districts comprising the new district. 
283.4      (b) For purposes of computing the supplemental revenue and 
283.5   the minimum allowance under section 124A.22, subdivision 9, 
283.6   paragraph (b), in the case of a dissolution and attachment, a 
283.7   district's 1991-1992 revenue is the revenue of the existing 
283.8   district plus the result of the following calculation: 
283.9      (1) the 1991-1992 revenue of the dissolved district divided 
283.10  by 
283.11     (2) the dissolved district's 1991-1992 actual pupil units, 
283.12  multiplied by 
283.13     (3) the pupil units of the dissolved district in the most 
283.14  recent year before the dissolution allocated to the newly 
283.15  created or enlarged district. 
283.16     (c) In the case of a dissolution and attachment, the 
283.17  department of children, families, and learning shall allocate 
283.18  the pupil units of the dissolved district to the newly enlarged 
283.19  district based on the allocation of the property on which the 
283.20  pupils generating the pupil units reside.  
283.21     Sec. 60.  Minnesota Statutes 1996, section 122.531, 
283.22  subdivision 9, is amended to read: 
283.23     Subd. 9.  [LEVY FOR SEVERANCE PAY OR EARLY RETIREMENT 
283.24  INCENTIVES.] The school board of a newly created or enlarged 
283.25  district to which part or all of a dissolved district was 
283.26  attached according to section 122.22 may levy for severance pay 
283.27  or early retirement incentives for licensed and nonlicensed 
283.28  employees who resign or retire early as a result of the 
283.29  dissolution or consolidation, if the commissioner of children, 
283.30  families, and learning approves the incentives and the amount to 
283.31  be levied.  The amount may be levied over a period of up to five 
283.32  years and shall must be spread in whole or in part on the 
283.33  property of a preexisting district or the newly created or 
283.34  enlarged district, as determined by the school board of the 
283.35  newly created or enlarged district. 
283.36     Sec. 61.  Minnesota Statutes 1996, section 122.5311, 
284.1   subdivision 1, is amended to read: 
284.2      Subdivision 1.  [CAPITAL LOAN OBLIGATIONS.] If a district 
284.3   has a capital loan outstanding at the time of reorganization 
284.4   according to section 122.22, 122.23, or sections 122.241 to 
284.5   122.248, and if the plan for reorganization provides for payment 
284.6   of all or a portion of the capital loan obligation by the newly 
284.7   created or enlarged district or makes no provision for payment, 
284.8   all of the taxable property in the newly created or enlarged 
284.9   district is taxable for the payment to the extent stated in the 
284.10  plan.  Notwithstanding any contract to the contrary, if all of 
284.11  the taxable property in the newly created or enlarged district 
284.12  is taxable for the payment of the capital loan and until the 
284.13  capital loan is retired or canceled, the maximum effort debt 
284.14  service levy shall must be recalculated annually by the 
284.15  department of children, families, and learning to be equal to 
284.16  the required debt service levy plus an additional amount.  The 
284.17  additional amount shall must be the greater of: 
284.18     (i) zero, or 
284.19     (ii) the maximum effort debt service levy of the 
284.20  preexisting district minus the required debt service levy of the 
284.21  preexisting district that received the capital loan. 
284.22     For the purpose of the recalculation, additional bond 
284.23  issues after the date of the reorganization shall not impact the 
284.24  maximum effort debt service levy or the required debt service 
284.25  levy. 
284.26     Notwithstanding any contract to the contrary, the plan for 
284.27  reorganization may specify that the obligation for a capital 
284.28  loan remains solely with the preexisting district that incurred 
284.29  the obligation.  This subdivision does not relieve any property 
284.30  from any tax liability for payment of any capital loan 
284.31  obligation. 
284.32     Sec. 62.  Minnesota Statutes 1996, section 122.532, 
284.33  subdivision 2, is amended to read: 
284.34     Subd. 2.  [TEACHER ASSIGNMENT.] (a) As of the effective 
284.35  date of a consolidation in which a district is divided or the 
284.36  dissolution of a district and its attachment to two or more 
285.1   existing districts, each teacher employed by an affected 
285.2   district shall be assigned to the newly created or enlarged 
285.3   district on the basis of a ratio of the pupils assigned to each 
285.4   district according to the new district boundaries.  The district 
285.5   receiving the greatest number of pupils must be assigned the 
285.6   teacher with the greatest seniority, and the remaining teachers 
285.7   must be alternately assigned to each district until the district 
285.8   receiving the fewest pupils has received its ratio of teachers 
285.9   who will not be retiring before the effective date of the 
285.10  consolidation or dissolution. 
285.11     (b) Notwithstanding paragraph (a), the school board and the 
285.12  exclusive representative of teachers in each school district 
285.13  involved in the consolidation or dissolution and attachment may 
285.14  negotiate a plan for assigning teachers to each newly created or 
285.15  enlarged district. 
285.16     Sec. 63.  Minnesota Statutes 1996, section 122.532, 
285.17  subdivision 3a, is amended to read: 
285.18     Subd. 3a.  [INTERIM CONTRACTUAL AGREEMENTS.] (a) Until a 
285.19  successor contract is executed between the new school board and 
285.20  the exclusive representative of the teachers of the new 
285.21  district, the school boards of both districts and the exclusive 
285.22  representatives of the teachers of both districts may agree: 
285.23     (1) to comply with the contract of either district with 
285.24  respect to all of the teachers assigned to the new district; or 
285.25     (2) that each of the contracts shall apply to the teachers 
285.26  previously subject to the respective contract.  
285.27     (b) In the absence of an agreement according to paragraph 
285.28  (a), the following shall apply: 
285.29     (1) if the effective date is July 1 of an even-numbered 
285.30  year, each of the contracts shall apply to the teachers 
285.31  previously subject to the respective contract and shall be 
285.32  binding on the new school board; or 
285.33     (2) if the effective date is July 1 of an odd-numbered 
285.34  year, the contract of the district that previously employed the 
285.35  largest proportion of teachers assigned to the new district 
285.36  applies to all of the teachers assigned to the new district and 
286.1   shall be binding on the new school board.  The application of 
286.2   this section shall not result in a reduction in a teacher's 
286.3   basic salary, payments for cocurricular or extracurricular 
286.4   assignments, district contributions toward insurance coverages 
286.5   or tax-sheltered annuities, leaves of absence, or severance pay 
286.6   until a successor contract is executed between the new school 
286.7   board and the exclusive representative.  
286.8      Sec. 64.  Minnesota Statutes 1996, section 122.532, 
286.9   subdivision 4, is amended to read: 
286.10     Subd. 4.  [CONTRACTS; TERMINATION; TENURE.] Except as 
286.11  provided in this section, the provisions of section 125.12 or 
286.12  125.17 shall apply to the employment of each teacher by the new 
286.13  employing district on the same basis as they would have applied 
286.14  to the employment if the teacher had been employed by that new 
286.15  district before the effective date of the consolidation or 
286.16  dissolution and attachment.  For the purpose of applying the 
286.17  provisions of subdivision 3, clause (c), and the provisions of 
286.18  section 125.12, subdivision 6b, each school district must be 
286.19  considered to have started school each year on the same date.  
286.20     Sec. 65.  Minnesota Statutes 1996, section 122.535, 
286.21  subdivision 2, is amended to read: 
286.22     Subd. 2.  [AGREEMENT.] The school board may enter into one 
286.23  or more agreements providing for instruction of its secondary 
286.24  pupils in one or more districts.  The agreement shall must be 
286.25  effective on July 1 and shall be for a specified or indefinite 
286.26  number of years.  The agreement shall must set forth the 
286.27  obligations of transportation, the tuition to be paid to the 
286.28  providing district, and all additional charges and fees to be 
286.29  paid to the providing district.  The amount of tuition shall not 
286.30  be subject to the provisions of section 124.18, subdivision 2.  
286.31  The agreement may provide for negotiation of a plan for the 
286.32  assignment or employment in a providing district as an exchange 
286.33  teacher according to section 125.13, or placement on unrequested 
286.34  leave of absence of teachers whose positions are discontinued as 
286.35  a result of the agreement.  "Teacher" has the meaning given it 
286.36  in section 125.12, subdivision 1.  
287.1      Sec. 66.  Minnesota Statutes 1996, section 122.535, 
287.2   subdivision 3, is amended to read: 
287.3      Subd. 3.  [INFORMATIONAL MEETING.] Before entering into 
287.4   agreements permitted by subdivision 2 of this section, the 
287.5   school board shall must hold a public hearing.  The board shall 
287.6   must publish notice of the hearing in the newspaper with the 
287.7   largest circulation in the district.  If the board proposes to 
287.8   enter into agreements with two or more districts, the board may 
287.9   conduct separate or consolidated hearings.  
287.10     Sec. 67.  Minnesota Statutes 1996, section 122.535, 
287.11  subdivision 4, is amended to read: 
287.12     Subd. 4.  [REVIEW AND COMMENT.] After the hearing required 
287.13  by subdivision 3 and before entering into an agreement, the 
287.14  board shall must submit the agreement to the commissioner of 
287.15  children, families, and learning for review and comment.  
287.16     Sec. 68.  Minnesota Statutes 1996, section 122.535, 
287.17  subdivision 5, is amended to read: 
287.18     Subd. 5.  [AID PAYMENTS.] A district entering into an 
287.19  agreement permitted in subdivision 2 of this section shall must 
287.20  continue to count its resident pupils who are educated in other 
287.21  districts as resident pupils in the calculation of pupil units 
287.22  for the purposes of state aids, levy limitations, and any other 
287.23  purpose.  A district may continue to provide transportation and 
287.24  collect transportation aid for its resident pupils.  For 
287.25  purposes of aid calculations, the commissioner of children, 
287.26  families, and learning may adjust the cost per eligible pupil 
287.27  transported to reflect changes in cost resulting from the 
287.28  agreement, if any.  
287.29     Sec. 69.  Minnesota Statutes 1996, section 122.535, 
287.30  subdivision 6, is amended to read: 
287.31     Subd. 6.  [SEVERANCE PAY.] A district shall must pay 
287.32  severance pay to a teacher who is placed on unrequested leave of 
287.33  absence by the district as a result of the agreement.  A teacher 
287.34  is eligible under this subdivision if the teacher: 
287.35     (1) is a teacher, as defined in section 125.12, subdivision 
287.36  1, but not a superintendent; 
288.1      (2) has a continuing contract with the district according 
288.2   to section 125.12, subdivision 4. 
288.3      The amount of severance pay shall must be equal to the 
288.4   teacher's salary for the school year during which the teacher 
288.5   was placed on unrequested leave of absence minus the gross 
288.6   amount the teacher was paid during the 12 months following the 
288.7   teacher's termination of salary, by an entity whose teachers by 
288.8   statute or rule must possess a valid Minnesota teaching license, 
288.9   and minus the amount a teacher receives as severance or other 
288.10  similar pay according to a contract with the district or 
288.11  district policy.  These entities requiring a valid Minnesota 
288.12  teaching license include, but are not limited to, the school 
288.13  district that placed the teacher on unrequested leave of 
288.14  absence, another school district in Minnesota, an education 
288.15  district, an intermediate school district, a SC, a board formed 
288.16  under section 471.59, a state residential academy, the Lola and 
288.17  Rudy Perpich Minnesota center for arts education, a vocational 
288.18  center, or a special education cooperative.  These entities do 
288.19  not include a school district in another state, a Minnesota 
288.20  public post-secondary institution, or a state agency.  Only 
288.21  amounts earned by the teacher as a substitute teacher or in a 
288.22  position requiring a valid Minnesota teaching license shall be 
288.23  subtracted.  A teacher may decline any offer of employment as a 
288.24  teacher without loss of rights to severance pay. 
288.25     To determine the amount of severance pay that is due for 
288.26  the first six months following termination of the teacher's 
288.27  salary, the district may require the teacher to provide 
288.28  documented evidence of the teacher's employers and gross 
288.29  earnings during that period.  The district shall must pay the 
288.30  teacher the amount of severance pay it determines to be due from 
288.31  the proceeds of the levy for this purpose.  To determine the 
288.32  amount of severance pay that is due for the second six months of 
288.33  the 12 months following the termination of the teacher's salary, 
288.34  the district may require the teacher to provide documented 
288.35  evidence of the teacher's employers and gross earnings during 
288.36  that period.  The district shall must pay the teacher the amount 
289.1   of severance pay it determines to be due from the proceeds of 
289.2   the levy for this purpose.  
289.3      A teacher who receives severance pay under this subdivision 
289.4   waives all further reinstatement rights under section 125.12, 
289.5   subdivision 6a or 6b.  If the teacher receives severance pay, 
289.6   the teacher shall not receive credit for any years of service in 
289.7   the district paying severance pay prior to the year in which the 
289.8   teacher becomes eligible to receive severance pay. 
289.9      The severance pay is subject to section 465.72.  The 
289.10  district may levy annually according to section 124.912, 
289.11  subdivision 1, for the severance pay.  
289.12     Sec. 70.  Minnesota Statutes 1996, section 122.541, 
289.13  subdivision 1, is amended to read: 
289.14     Subdivision 1.  [DISTRICT REQUIREMENTS.] The school boards 
289.15  of two or more districts may, after consultation with the 
289.16  department of children, families, and learning, enter into an 
289.17  agreement providing for:  
289.18     (1) discontinuance by all districts except one of at least 
289.19  the 10th, 11th, and 12th grades; and 
289.20     (2) instruction of the pupils in the discontinued grades in 
289.21  one of the cooperating districts.  Each district shall must 
289.22  continue to operate a school with at least three grades.  Before 
289.23  entering into a final agreement, the boards shall must provide a 
289.24  copy of this agreement to the commissioner of children, 
289.25  families, and learning.  
289.26     Sec. 71.  Minnesota Statutes 1996, section 122.541, 
289.27  subdivision 2, is amended to read: 
289.28     Subd. 2.  [AID; TRANSPORTATION.] (a) Each district shall 
289.29  must continue to count its resident pupils who are educated in a 
289.30  cooperating district as resident pupils in the calculation of 
289.31  pupil units for all purposes.  The agreement shall must provide 
289.32  for tuition payments between or among the districts.  
289.33     (b) Each district shall must continue to provide 
289.34  transportation and collect transportation aid for its resident 
289.35  pupils pursuant to sections 123.39, 124.223, and 124.225.  A 
289.36  district may provide some or all transportation to its resident 
290.1   pupils by contracting with a cooperating district.  For purposes 
290.2   of section 124.225, the commissioner may adjust the base cost 
290.3   per eligible pupil transported to reflect changes in costs 
290.4   resulting from the agreement.  
290.5      Sec. 72.  Minnesota Statutes 1996, section 122.541, 
290.6   subdivision 4, is amended to read: 
290.7      Subd. 4.  [NEGOTIATED PLAN FOR DISCONTINUED TEACHERS.] 
290.8   The school board and exclusive bargaining representative of the 
290.9   teachers in each district discontinuing grades may negotiate a 
290.10  plan to assign or employ in a cooperating district or to place 
290.11  on unrequested leave of absence all teachers whose positions are 
290.12  discontinued as a result of the agreement.  The school board and 
290.13  exclusive bargaining representative of the teachers in each 
290.14  district providing instruction to nonresident pupils may 
290.15  negotiate a plan to employ teachers from a cooperating district 
290.16  whose positions are discontinued as a result of the agreement.  
290.17  If plans are negotiated and if the boards determine the plans 
290.18  are compatible, the boards shall include the plans in their 
290.19  agreement.  
290.20     Sec. 73.  Minnesota Statutes 1996, section 122.541, 
290.21  subdivision 5, is amended to read: 
290.22     Subd. 5.  [COMBINED SENIORITY LIST.] If compatible plans 
290.23  are not negotiated before the March 1 preceding any year of the 
290.24  agreement, the cooperating districts shall be governed by this 
290.25  subdivision.  Insofar as possible, teachers who have acquired 
290.26  continuing contract rights and whose positions are discontinued 
290.27  as a result of the agreement shall be employed by a cooperating 
290.28  district or assigned to teach in a cooperating district as 
290.29  exchange teachers pursuant to section 125.13.  If necessary, 
290.30  teachers whose positions are discontinued as a result of the 
290.31  agreement and who have acquired continuing contract rights shall 
290.32  be placed on unrequested leave of absence in fields in which 
290.33  they are licensed in the inverse order in which they were 
290.34  employed by a cooperating district, according to a combined 
290.35  seniority list of teachers in the cooperating districts.  For 
290.36  the purpose of establishing a combined seniority list, each 
291.1   school district must be considered to have started school each 
291.2   year on the same date.  
291.3      Sec. 74.  Minnesota Statutes 1996, section 122.541, 
291.4   subdivision 6, is amended to read: 
291.5      Subd. 6.  [NOTICE AND HEARING.] Prior to entering into an 
291.6   agreement, the school board shall consult with the community at 
291.7   an informational meeting.  The board shall must publish notice 
291.8   of the meeting in the official newspaper of the district and may 
291.9   send written notice of the meeting to parents of pupils who 
291.10  would be affected. 
291.11     Sec. 75.  Minnesota Statutes 1996, section 122.541, 
291.12  subdivision 7, is amended to read: 
291.13     Subd. 7.  [MEETING LOCATION.] Notwithstanding any law to 
291.14  the contrary, school boards that have an agreement may hold a 
291.15  valid joint meeting at any location that would be permissible 
291.16  for one of the school boards participating in the meeting.  A 
291.17  school board that has an agreement may hold a meeting in any 
291.18  district that is a party to the agreement.  The school board 
291.19  shall comply with section 471.705 and any other law applicable 
291.20  to a meeting of a school board.  
291.21     Sec. 76.  Minnesota Statutes 1996, section 122.895, is 
291.22  amended to read: 
291.23     122.895 [EMPLOYEES OF COOPERATIVE DISTRICTS UPON 
291.24  DISSOLUTION OR WITHDRAWAL.] 
291.25     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
291.26  section, the terms defined in this subdivision have the meanings 
291.27  given them. 
291.28     (a) "Teacher" means a teacher as defined in section 125.12, 
291.29  subdivision 1, who is employed by a district or center listed in 
291.30  subdivision 2, except that it does not include a superintendent. 
291.31     (b) "Cooperative" means any district or center to which 
291.32  this section applies. 
291.33     (c) "Withdrawal" means a school district's removal of its 
291.34  students from a program of instruction, counseling, or 
291.35  evaluation provided by a cooperative in order to provide the 
291.36  same educational services by other means. 
292.1      (d) "Education support position" means a position not 
292.2   requiring a teaching license in which an employee assists a 
292.3   teacher by providing instructional, counseling, or evaluative 
292.4   support services directly to students. 
292.5      (e) "Education support employee" means an employee holding 
292.6   an education support position.  
292.7      Subd. 2.  [APPLICABILITY.] This section applies to: 
292.8      (1) an education district organized according to sections 
292.9   122.91 to 122.95; 
292.10     (2) a cooperative vocational center organized according to 
292.11  section 123.351; 
292.12     (3) a joint powers district or board organized according to 
292.13  section 471.59 which employs teachers to provide instruction; 
292.14     (4) an intermediate district organized according to chapter 
292.15  136D; 
292.16     (5) a service cooperative which employs teachers to provide 
292.17  instruction; and 
292.18     (6) school districts participating in an agreement for the 
292.19  cooperative provision of special education services to children 
292.20  with disabilities according to section 120.17, subdivision 4.  
292.21     Subd. 2a.  [AGREEMENTS FOR COOPERATIVE SPECIAL EDUCATION.] 
292.22  (a) Upon the termination of an agreement according to section 
292.23  120.17, subdivision 4, a teacher employed to provide special 
292.24  education services by a school district participating in the 
292.25  agreement will be afforded rights to employment by other school 
292.26  districts according to subdivisions 3, 4, and 5.  Nonlicensed 
292.27  employees of a participating district employed to provide 
292.28  special education services will, upon the agreement's 
292.29  termination, be afforded rights to employment by other 
292.30  participating districts according to subdivision 8. 
292.31     (b) Upon a school district's withdrawal from the 
292.32  cooperative provision of special education under an agreement 
292.33  according to section 120.17, subdivision 4, a teacher employed 
292.34  to provide special education services by a participating 
292.35  district will be afforded rights to employment by other school 
292.36  districts according to subdivisions 3, 6, and 7.  Nonlicensed 
293.1   employees of a participating district employed to provide 
293.2   special education services will be afforded rights to employment 
293.3   by the withdrawing district according to subdivision 9.  
293.4      Subd. 3.  [NOTIFICATION OF TEACHERS.] In any year in which 
293.5   a cooperative dissolves or a member withdraws from a 
293.6   cooperative, the governing board of a cooperative shall must 
293.7   provide all teachers employed by the cooperative written 
293.8   notification by March 10 of: 
293.9      (1) the dissolution of the cooperative and the effective 
293.10  date of dissolution; or 
293.11     (2) the withdrawal of a member of the cooperative and the 
293.12  effective date of withdrawal. 
293.13     Subd. 4.  [RIGHTS OF A TEACHER WITH A CONTINUING CONTRACT 
293.14  IN A MEMBER DISTRICT UPON DISSOLUTION.] (a) This subdivision 
293.15  applies to a teacher previously employed in a member district 
293.16  who: 
293.17     (1) had a continuing contract with that member district; 
293.18     (2) has been continuously employed immediately after 
293.19  leaving that member district by one or more cooperatives that 
293.20  provided instruction to pupils enrolled in that member district; 
293.21  and 
293.22     (3) is either a probationary teacher or has a continuing 
293.23  contract with the cooperative that is dissolving. 
293.24     (b) A teacher may elect to resume the teacher's continuing 
293.25  contract with the member district by which the teacher was 
293.26  previously employed by filing a written notice of the election 
293.27  with the member school board on or before March 20.  Failure by 
293.28  a teacher to file a written notice by March 20 of the year the 
293.29  teacher receives a notice according to subdivision 3 constitutes 
293.30  a waiver of the teacher's rights under this subdivision. 
293.31     The member district shall must make reasonable realignments 
293.32  of positions to accommodate the seniority rights of a teacher 
293.33  electing to resume continuing contract rights in the member 
293.34  district according to this subdivision. 
293.35     Upon returning the teacher shall receive credit for: 
293.36     (1) all years of continuous service under contract with the 
294.1   cooperative and the member district for all purposes relating to 
294.2   seniority, compensation, and employment benefits; and 
294.3      (2) the teacher's current educational attainment on the 
294.4   member district's salary schedule.  
294.5      (c) A teacher who does not elect to return to the member 
294.6   district according to this subdivision may exercise rights under 
294.7   subdivision 5. 
294.8      Subd. 5.  [RIGHTS OF OTHER TEACHERS.] (a) This subdivision 
294.9   applies to a teacher who: 
294.10     (1) has a continuing contract with the cooperative; and 
294.11     (2) either did not have a continuing contract with any 
294.12  member district or does not return to a member district 
294.13  according to the procedures set forth in subdivision 4, 
294.14  paragraph (b). 
294.15     (b) By May 10 of the school year in which the cooperative 
294.16  provides the notice required by subdivision 3, clause (1), the 
294.17  cooperative shall must provide to each teacher described in 
294.18  subdivision 4 and this subdivision a written notice of available 
294.19  teaching positions in any member district to which the 
294.20  cooperative was providing services at the time of dissolution.  
294.21  Available teaching positions are all teaching positions that, 
294.22  during the school year following dissolution: 
294.23     (1) are positions for which the teacher is licensed; and 
294.24     (2) are not assigned to a continuing contract teacher 
294.25  employed by a member school district after any reasonable 
294.26  realignments which may be necessary under the applicable 
294.27  provisions of section 125.12, subdivision 6a or 6b, to 
294.28  accommodate the seniority rights of teachers employed by the 
294.29  member district. 
294.30     (c) On or before June 1 of the school year in which the 
294.31  cooperative provides the notice required by subdivision 3, 
294.32  clause (1), any teacher wishing to do so must file with the 
294.33  school board a written notice of the teacher's intention to 
294.34  exercise the teacher's rights to an available teaching 
294.35  position.  Available teaching positions shall must be offered to 
294.36  teachers in order of their seniority within the dissolved 
295.1   cooperative. 
295.2      (d) Paragraph (e) applies to: 
295.3      (1) a district that was a member of a dissolved 
295.4   cooperative; or 
295.5      (2) any other district that, except as a result of open 
295.6   enrollment according to section 120.062, provides essentially 
295.7   the same instruction provided by the dissolved cooperative to 
295.8   pupils enrolled in a former member district. 
295.9      (e) For five years following dissolution of a cooperative, 
295.10  a district to which this paragraph applies may not appoint a new 
295.11  teacher or assign a probationary or provisionally licensed 
295.12  teacher to any position requiring licensure in a field in which 
295.13  the dissolved cooperative provided instruction until the 
295.14  following conditions are met: 
295.15     (1) a district to which this paragraph applies has provided 
295.16  each teacher formerly employed by the dissolved cooperative, who 
295.17  holds the requisite license, written notice of the position; and 
295.18     (2) no teacher holding the requisite license has filed a 
295.19  written request to be appointed to the position with the school 
295.20  board within 30 days of receiving the notice. 
295.21     If no teacher files a request according to clause (2), the 
295.22  district may fill the position as it sees fit.  During any part 
295.23  of the school year in which dissolution occurs and the first 
295.24  school year following dissolution, a teacher may file a request 
295.25  for an appointment according to this paragraph regardless of 
295.26  prior contractual commitments with other member districts.  
295.27  Available teaching positions shall must be offered to teachers 
295.28  in order of their seniority on a combined seniority list of the 
295.29  teachers employed by the cooperative and the appointing district.
295.30     (f) A teacher appointed according to this subdivision is 
295.31  not required to serve a probationary period.  The teacher shall 
295.32  receive credit on the appointing district's salary schedule for 
295.33  the teacher's years of continuous service under contract with 
295.34  the cooperative and the member district and the teacher's 
295.35  educational attainment at the time of appointment or shall 
295.36  receive a comparable salary, whichever is less.  The teacher 
296.1   shall receive credit for accumulations of sick leave and rights 
296.2   to severance benefits as if the teacher had been employed by the 
296.3   member district during the teacher's years of employment by the 
296.4   cooperative. 
296.5      Subd. 6.  [RIGHTS OF A TEACHER WITH A CONTINUING CONTRACT 
296.6   IN A MEMBER DISTRICT UPON WITHDRAWAL OF THE DISTRICT.] (a) This 
296.7   subdivision applies to a teacher previously employed by a member 
296.8   district who: 
296.9      (1) had a continuing contract with the member district 
296.10  which withdraws from a cooperative; 
296.11     (2) has been continuously employed immediately after 
296.12  leaving that member district by one or more cooperatives that 
296.13  provided instruction to pupils enrolled in that member district; 
296.14  and 
296.15     (3) is either a probationary teacher or has a continuing 
296.16  contract with the cooperative from which the member district is 
296.17  withdrawing. 
296.18     (b) A teacher may elect to resume the teacher's continuing 
296.19  contract with the withdrawing district by which the teacher was 
296.20  previously employed by filing a written notice of the election 
296.21  with the withdrawing school board on or before March 20.  
296.22  Failure by a teacher to file written notice by March 20 of the 
296.23  year the teacher receives a notice according to subdivision 3 
296.24  constitutes a waiver of a teacher's rights under this 
296.25  subdivision. 
296.26     The member district shall must make reasonable realignments 
296.27  of positions to accommodate the seniority rights of a teacher 
296.28  electing to resume continuing contract rights in the member 
296.29  district according to this subdivision. 
296.30     Upon returning, the teacher shall receive credit for: 
296.31     (1) all years of continuous service under contract with the 
296.32  cooperative and the member district for all purposes relating to 
296.33  seniority, compensation, and employment benefits; and 
296.34     (2) the teacher's current educational attainment on the 
296.35  member district's salary schedule.  
296.36     Subd. 7.  [RIGHTS OF A TEACHER PLACED ON UNREQUESTED LEAVE 
297.1   UPON WITHDRAWAL.] (a) This subdivision applies to a teacher who 
297.2   is placed on unrequested leave of absence, according to section 
297.3   125.12, subdivision 6a or 6b, in the year in which the 
297.4   cooperative provides the notice required by subdivision 3, 
297.5   clause (2), by a cooperative from which a member district is 
297.6   withdrawing. 
297.7      This subdivision applies to a district that, except as a 
297.8   result of open enrollment according to section 120.062, provides 
297.9   essentially the same instruction provided by the cooperative to 
297.10  pupils enrolled in the withdrawing district. 
297.11     (b) A teacher shall be appointed by a district to which 
297.12  this subdivision applies to an available teaching position which:
297.13     (1) is in a field of licensure in which pupils enrolled in 
297.14  the withdrawing district received instruction from the 
297.15  cooperative; and 
297.16     (2) is within the teacher's field of licensure. 
297.17     For the purpose of this paragraph, an available teaching 
297.18  position means any position that is vacant or would otherwise be 
297.19  occupied by a probationary or provisionally licensed teacher. 
297.20     (c) A board may not appoint a new teacher to an available 
297.21  teaching position unless no teacher holding the requisite 
297.22  license on unrequested leave from the cooperative has filed a 
297.23  written request for appointment.  The request shall must be 
297.24  filed with the board of the appointing district within 30 days 
297.25  of receiving written notice from the appointing board that it 
297.26  has an available teaching position.  If no teacher holding the 
297.27  requisite license files a request according to this paragraph, 
297.28  the district may fill the position as it sees fit.  Available 
297.29  teaching positions shall must be offered to teachers in order of 
297.30  their seniority on a combined seniority list of the teachers 
297.31  employed by the cooperative and the withdrawing member district. 
297.32     (d) A teacher appointed according to this subdivision is 
297.33  not required to serve a probationary period.  The teacher shall 
297.34  receive credit on the appointing district's salary schedule for 
297.35  the teacher's years of continuous service under contract with 
297.36  the cooperative and the member district and the teacher's 
298.1   educational attainment at the time of appointment or shall 
298.2   receive a comparable salary, whichever is less.  The teacher 
298.3   shall receive credit for accumulations of sick leave and rights 
298.4   to severance benefits as if the teacher had been employed by the 
298.5   member district during the teacher's years of employment by the 
298.6   cooperative.  
298.7      Subd. 8.  [NONLICENSED EMPLOYEES UPON DISSOLUTION.] (a) A 
298.8   nonlicensed employee who is terminated by a cooperative that 
298.9   dissolves shall be appointed by a district that is a member of 
298.10  the dissolved cooperative to a position that is created within 
298.11  36 months of the dissolution of the cooperative and is created 
298.12  as a result of the dissolution of the cooperative.  A position 
298.13  shall must be offered to a nonlicensed employee, who fulfills 
298.14  the qualifications for that position, in order of the employee's 
298.15  seniority within the dissolved cooperative. 
298.16     (b) When an education support employee is terminated by a 
298.17  cooperative that dissolves, a district that is a member of the 
298.18  dissolved cooperative shall must appoint the employee to an 
298.19  education support position if the position is created within 36 
298.20  months of the dissolution of the cooperative as a result of the 
298.21  dissolution.  An education support position shall must be 
298.22  offered to an education support employee, who fulfills the 
298.23  qualifications for that position, in order of the employee's 
298.24  seniority within the dissolved cooperative. 
298.25     (c) An employee appointed according to this subdivision 
298.26  shall receive credit for the employee's: 
298.27     (1) continuous years of service with the cooperative on the 
298.28  appointing district's compensation schedule and seniority list; 
298.29  and 
298.30     (2) unused sick leave accumulated while employed by the 
298.31  cooperative. 
298.32     (d) Notwithstanding section 179A.12 or Minnesota Rules, 
298.33  part 5510.0510, subparts 1 to 4, a representation petition 
298.34  seeking the exclusive representation of a unit of education 
298.35  support employees employed by a district formerly a member of a 
298.36  dissolved cooperative may be considered by the commissioner of 
299.1   the bureau of mediation services at any time within 11 months of 
299.2   the dissolution of the cooperative.  
299.3      Subd. 9.  [NONLICENSED EMPLOYEES UPON WITHDRAWAL.] (a) A 
299.4   nonlicensed employee of a cooperative whose active employment is 
299.5   discontinued or reduced as a result of the withdrawal of a 
299.6   member district from the cooperative shall be appointed by the 
299.7   withdrawing member district to a position that is created within 
299.8   36 months of the withdrawal and is created as a result of the 
299.9   withdrawal of the member district.  A position shall must be 
299.10  offered to a nonlicensed employee, who fulfills the 
299.11  qualifications for that position, in order of the employee's 
299.12  seniority within the cooperative from which a member district 
299.13  withdraws. 
299.14     (b) When an education support employee of a cooperative has 
299.15  active employment discontinued or reduced as a result of the 
299.16  withdrawal of a member district from the cooperative, the 
299.17  withdrawing member district shall must appoint the employee to 
299.18  an education support position if the position is created within 
299.19  36 months of the withdrawal as a result of the withdrawal of the 
299.20  member district.  An education support position shall must be 
299.21  offered to an education support employee, who meets the 
299.22  qualifications for that position, in order of the employee's 
299.23  seniority within the cooperative from which a member district 
299.24  withdraws. 
299.25     (c) An employee appointed according to this subdivision 
299.26  shall receive credit for the employee's: 
299.27     (1) continuous years of service with the cooperative on the 
299.28  appointing district's compensation schedule and seniority list; 
299.29  and 
299.30     (2) unused sick leave accumulated while employed by the 
299.31  cooperative. 
299.32     (d) Notwithstanding section 179A.12 or Minnesota Rules, 
299.33  part 5510.0510, subparts 1 to 4, a representation petition 
299.34  seeking the exclusive representation of a unit of education 
299.35  support employees employed by a member district which has 
299.36  withdrawn from a cooperative may be considered by the 
300.1   commissioner of the bureau of mediation services at any time 
300.2   within 11 months of the district's withdrawal from the 
300.3   cooperative. 
300.4      Subd. 10.  [COOPERATIVES THAT MERGE.] Notwithstanding 
300.5   subdivisions 1 to 9, the following paragraphs apply to 
300.6   cooperatives that merge. 
300.7      (a) If a cooperative enters into an agreement to merge with 
300.8   another cooperative, the boards of the cooperatives and the 
300.9   exclusive representatives of the teachers in the cooperatives 
300.10  and the teachers in each member district may negotiate a plan to 
300.11  assign or employ in a member district or to place on unrequested 
300.12  leave of absence all teachers whose positions are discontinued 
300.13  as a result of the agreement.  If plans are negotiated and if 
300.14  the boards determine the plans are compatible, the boards shall 
300.15  must include the plans in their agreement. 
300.16     (b) If compatible plans are not negotiated under paragraph 
300.17  (a) by the March 1 preceding the effective date of the merger of 
300.18  the cooperatives, subdivisions 2 to 9 apply to teachers and 
300.19  nonlicensed employees whose positions are terminated as a result 
300.20  of an agreement to merge cooperatives.  
300.21     Sec. 77.  Minnesota Statutes 1996, section 122.91, 
300.22  subdivision 2, is amended to read: 
300.23     Subd. 2.  [AGREEMENT.] School Boards meeting the 
300.24  requirements of subdivision 3 may enter into a written agreement 
300.25  to establish an education district.  Once established, cities, 
300.26  counties, and other governmental units as defined in section 
300.27  471.59, may become members of the education district.  The 
300.28  agreement and subsequent amendments must be adopted by majority 
300.29  vote of the full membership of each board.  
300.30     Sec. 78.  Minnesota Statutes 1996, section 122.91, 
300.31  subdivision 2a, is amended to read: 
300.32     Subd. 2a.  [AGREEMENT; SPECIAL PROVISIONS.] The education 
300.33  district agreement may contain a special provision adopted by 
300.34  the vote of a majority of the full membership of each of the 
300.35  boards of the member school districts to allow a post-secondary 
300.36  institution or cities, counties, and other governmental units to 
301.1   become a member of the education district. 
301.2      Sec. 79.  Minnesota Statutes 1996, section 122.91, 
301.3   subdivision 3a, is amended to read: 
301.4      Subd. 3a.  [MEETING WITH REPRESENTATIVES.] Before entering 
301.5   into an agreement, the school board of each member district must 
301.6   meet and confer with the exclusive representatives of the 
301.7   teachers of each school district proposing to enter the 
301.8   education district.  
301.9      Sec. 80.  Minnesota Statutes 1996, section 122.91, 
301.10  subdivision 4, is amended to read: 
301.11     Subd. 4.  [NOTICE AND HEARING.] Before entering into an 
301.12  agreement, the school board of each member district shall must 
301.13  publish a summary of the proposed agreement and its effect upon 
301.14  the district at least once in a newspaper of general circulation 
301.15  in the district a summary of the proposed agreement and its 
301.16  effect upon the district.  The board shall must conduct a public 
301.17  hearing on the proposed agreement not more than ten days after 
301.18  the notice and at least 30 days before entering into an 
301.19  agreement.  
301.20     Sec. 81.  Minnesota Statutes 1996, section 122.91, 
301.21  subdivision 6, is amended to read: 
301.22     Subd. 6.  [SERVICE COOPERATIVES.] If requested, service 
301.23  cooperatives shall must provide assistance to districts in 
301.24  establishing education districts.  The assistance may include 
301.25  determination of appropriate boundaries of the education 
301.26  district and development of the agreement.  The service 
301.27  cooperatives may provide any other services requested by the 
301.28  education district. 
301.29     Sec. 82.  Minnesota Statutes 1996, section 122.93, 
301.30  subdivision 3, is amended to read: 
301.31     Subd. 3.  [CONTRACTS.] The board may enter into contracts 
301.32  with school districts and other public and private agencies to 
301.33  provide services needed in the education district.  
301.34     Sec. 83.  Minnesota Statutes 1996, section 122.93, 
301.35  subdivision 8, is amended to read: 
301.36     Subd. 8.  [DISCONTINUING GRADES.] The board of a school 
302.1   district that is a member of an education district may 
302.2   discontinue any of kindergarten through grade 12 or part of 
302.3   those grades and provide instruction for those grades or parts 
302.4   of grades within the education district.  
302.5      Sec. 84.  Minnesota Statutes 1996, section 122.95, 
302.6   subdivision 1, is amended to read: 
302.7      Subdivision 1.  [DEFINITION.] For the purposes of this 
302.8   section, "teacher" has the meaning given it in section 125.12, 
302.9   subdivision 1, except that it does not include a superintendent. 
302.10     Sec. 85.  Minnesota Statutes 1996, section 122.95, 
302.11  subdivision 1a, is amended to read: 
302.12     Subd. 1a.  [FILLING POSITIONS; NEGOTIATED AGREEMENTS.] 
302.13  The school boards in all member districts and exclusive 
302.14  bargaining representatives of the teachers in all member 
302.15  districts may negotiate a plan for filling positions resulting 
302.16  from implementation of the education district agreement.  If the 
302.17  plan is negotiated among the member school districts and the 
302.18  exclusive bargaining representative of each member school 
302.19  district and unanimously agreed upon, in writing, the education 
302.20  district shall must include the plan in the education district 
302.21  agreement.  If a plan is not negotiated, the education district 
302.22  is governed by subdivision 2.  
302.23     Sec. 86.  Minnesota Statutes 1996, section 122.95, 
302.24  subdivision 2, is amended to read: 
302.25     Subd. 2.  [FILLING POSITIONS.] (a) When an education 
302.26  district board or a member board is filling a position resulting 
302.27  from implementation of the agreement, the board may offer the 
302.28  position to a teacher currently employed by a member district 
302.29  according to the exchange teacher provisions of section 125.13. 
302.30     (b) If the position is not filled by a currently employed 
302.31  teacher, the board shall must offer the position to an available 
302.32  teacher in the order of seniority in fields of licensure on a 
302.33  combined seniority list of all available teachers in the member 
302.34  districts.  For the purpose of establishing a combined seniority 
302.35  list, each school district must be considered to have started 
302.36  school each year on the same date.  An available teacher is a 
303.1   teacher in a member district who:  
303.2      (1) was placed on unrequested leave of absence by a member 
303.3   district, according to section 125.12, subdivision 6a or 6b, or 
303.4   was terminated according to section 125.17, subdivision 11, not 
303.5   more than one year before the initial formation of an education 
303.6   district as a result of an intention to enter into an education 
303.7   district agreement; 
303.8      (2) was placed on unrequested leave of absence by a member 
303.9   district, according to section 125.12, subdivision 6a or 6b, or 
303.10  was terminated according to section 125.17, subdivision 11, as a 
303.11  result of implementing the education district agreement, after 
303.12  the formation of the education district; or 
303.13     (3) is placed on unrequested leave of absence by a member 
303.14  district, according to section 125.12, subdivision 6a or 6b, or 
303.15  is terminated according to section 125.17, subdivision 11, as a 
303.16  result of implementing the education district, in the same year 
303.17  the position is filled. 
303.18     (c) If no currently employed teacher or available teacher 
303.19  accepts the position, the board may fill the position with any 
303.20  other teacher.  
303.21     (d) Any teacher who has been placed on unrequested leave of 
303.22  absence or who has been terminated has a right to a position 
303.23  only as long as the teacher has a right to reinstatement in a 
303.24  member district under section 125.12, subdivision 6a or 6b, or 
303.25  125.17, subdivision 11.  
303.26     Sec. 87.  Minnesota Statutes 1996, section 122.95, 
303.27  subdivision 4, is amended to read: 
303.28     Subd. 4.  [DETERMINATION OF REASON FOR LEAVE.] When a 
303.29  school board that intends to enter into an education district 
303.30  agreement, and at the time a school board that has entered into 
303.31  an education district agreement places a teacher on unrequested 
303.32  leave of absence, according to section 125.12, subdivision 6a or 
303.33  6b, or terminates a teacher's services under section 125.17, 
303.34  subdivision 11, the board shall must make a determination 
303.35  whether the placement or termination is a result of implementing 
303.36  the education district agreement.  That determination shall must 
304.1   be included in the notice of proposed placement or termination, 
304.2   may be reviewed at a hearing upon request of the teacher, 
304.3   and shall must be included in the notice of final action of the 
304.4   board.  If the determination is not disputed by the teacher 
304.5   before June 1 or the final date required for action by the 
304.6   board, the teacher shall be deemed to acquiesce in the board's 
304.7   determination.  
304.8      Sec. 88.  Minnesota Statutes 1996, section 123.35, 
304.9   subdivision 19a, is amended to read: 
304.10     Subd. 19a.  [LIMITATION ON PARTICIPATION AND FINANCIAL 
304.11  SUPPORT.] (a) No school A district shall must not be required by 
304.12  any type of formal or informal agreement except an agreement to 
304.13  provide building space according to paragraph (f), including a 
304.14  joint powers agreement, or membership in any cooperative unit 
304.15  defined in subdivision 19b, paragraph (d), to participate in or 
304.16  provide financial support for the purposes of the agreement for 
304.17  a time period in excess of one fiscal year, or the time period 
304.18  set forth in this subdivision.  Any agreement, part of an 
304.19  agreement, or other type of requirement to the contrary is void. 
304.20     (b) This subdivision shall not affect the continued 
304.21  liability of a school district for its share of bonded 
304.22  indebtedness or other debt incurred as a result of any agreement 
304.23  before July 1, 1993.  The school district is liable only until 
304.24  the obligation or debt is discharged and only according to the 
304.25  payment schedule in effect on July 1, 1993, except that the 
304.26  payment schedule may be altered for the purpose of restructuring 
304.27  debt or refunding bonds outstanding on July 1, 1993, if the 
304.28  annual payments of the school district are not increased and if 
304.29  the total obligation of the school district for its share of 
304.30  outstanding bonds or other debt is not increased. 
304.31     (c) To cease participating in or providing financial 
304.32  support for any of the services or activities relating to the 
304.33  agreement or to terminate participation in the agreement, the 
304.34  school board shall must adopt a resolution and notify other 
304.35  parties to the agreement of its decision on or before February 1 
304.36  of any year.  The cessation or withdrawal shall be effective 
305.1   June 30 of the same year except that for a member of an 
305.2   education district organized under sections 122.91 to 122.95 or 
305.3   an intermediate district organized under chapter 136D, cessation 
305.4   or withdrawal shall be effective June 30 of the following fiscal 
305.5   year.  At the option of the school board, cessation or 
305.6   withdrawal may be effective June 30 of the following fiscal year 
305.7   for a district participating in any type of agreement.  
305.8      (d) Before issuing bonds or incurring other debt, the 
305.9   governing body responsible for implementing the agreement shall 
305.10  must adopt a resolution proposing to issue bonds or incur other 
305.11  debt and the proposed financial effect of the bonds or other 
305.12  debt upon each participating district.  The resolution shall 
305.13  must be adopted within a time sufficient to allow the school 
305.14  board to adopt a resolution within the time permitted by this 
305.15  paragraph and to comply with the statutory deadlines set forth 
305.16  in sections 122.895, 125.12, and 125.17.  The governing body 
305.17  responsible for implementing the agreement shall notify each 
305.18  participating school board of the contents of the resolution.  
305.19  Within 120 days of receiving the resolution of the governing 
305.20  body, the school board of the participating district shall adopt 
305.21  a resolution stating: 
305.22     (1) its concurrence with issuing bonds or incurring other 
305.23  debt; 
305.24     (2) its intention to cease participating in or providing 
305.25  financial support for the service or activity related to the 
305.26  bonds or other debt; or 
305.27     (3) its intention to terminate participation in the 
305.28  agreement. 
305.29     A school board adopting a resolution according to clause 
305.30  (1) is liable for its share of bonded indebtedness or other debt 
305.31  as proposed by the governing body implementing the agreement.  A 
305.32  school board adopting a resolution according to clause (2) is 
305.33  not liable for the bonded indebtedness or other debt, as 
305.34  proposed by the governing body, related to the services or 
305.35  activities in which the district ceases participating or 
305.36  providing financial support.  A school board adopting a 
306.1   resolution according to clause (3) is not liable for the bonded 
306.2   indebtedness or other debt proposed by the governing body 
306.3   implementing the agreement. 
306.4      (e) After July 1, 1993, a district is liable according to 
306.5   paragraph (d) for its share of bonded indebtedness or other debt 
306.6   incurred by the governing body implementing the agreement to the 
306.7   extent that the bonds or other debt are directly related to the 
306.8   services or activities in which the district participates or for 
306.9   which the district provides financial support.  The district has 
306.10  continued liability only until the obligation or debt is 
306.11  discharged and only according to the payment schedule in effect 
306.12  at the time the governing body implementing the agreement 
306.13  provides notice to the school board, except that the payment 
306.14  schedule may be altered for the purpose of refunding the 
306.15  outstanding bonds or restructuring other debt if the annual 
306.16  payments of the district are not increased and if the total 
306.17  obligation of the district for the outstanding bonds or other 
306.18  debt is not increased. 
306.19     (f) A school district that is a member of a cooperative 
306.20  unit as defined in subdivision 19b, paragraph (d), may obligate 
306.21  itself to participate in and provide financial support for an 
306.22  agreement with a cooperative unit to provide school building 
306.23  space for a term not to exceed two years with an option on the 
306.24  part of the district to renew for an additional two years.  
306.25     Sec. 89.  Minnesota Statutes 1996, section 123.35, 
306.26  subdivision 19b, is amended to read: 
306.27     Subd. 19b.  [WITHDRAWING FROM COOPERATIVE.] If a school 
306.28  district withdraws from a cooperative unit defined in paragraph 
306.29  (d), the distribution of assets and assignment of liabilities to 
306.30  the withdrawing district shall be determined according to this 
306.31  subdivision. 
306.32     (a) The withdrawing district remains responsible for its 
306.33  share of debt incurred by the cooperative unit according to 
306.34  subdivision 19a.  The school district and cooperative unit may 
306.35  mutually agree, through a board resolution by each, to terms and 
306.36  conditions of the distribution of assets and the assignment of 
307.1   liabilities.  
307.2      (b) If the cooperative unit and the school district cannot 
307.3   agree on the terms and conditions, the commissioner of children, 
307.4   families, and learning shall resolve the dispute by determining 
307.5   the district's proportionate share of assets and liabilities 
307.6   based on the district's enrollment, financial contribution, 
307.7   usage, or other factor or combination of factors determined 
307.8   appropriate by the commissioner.  The assets shall must be 
307.9   disbursed to the withdrawing district in a manner that minimizes 
307.10  financial disruption to the cooperative unit.  
307.11     (c) Assets related to an insurance pool shall not be 
307.12  disbursed to a member district under paragraph (b). 
307.13     (d) For the purposes of this section, a cooperative unit is:
307.14     (1) an education district organized under sections 122.91 
307.15  to 122.95; 
307.16     (2) a cooperative vocational center organized under section 
307.17  123.351; 
307.18     (3) an intermediate district organized under chapter 136D; 
307.19     (4) a service cooperative organized under section 123.582; 
307.20  or 
307.21     (5) a regional management information center organized 
307.22  under section 121.935 or as a joint powers district according to 
307.23  section 471.59.  
307.24     Sec. 90.  Minnesota Statutes 1996, section 123.35, 
307.25  subdivision 21, is amended to read: 
307.26     Subd. 21.  [APPEAL TO COMMISSIONER.] If a cooperative unit 
307.27  as defined in subdivision 19b, paragraph (d), denies membership 
307.28  in the unit to a school district, the school district may appeal 
307.29  to the commissioner of children, families, and learning.  The 
307.30  commissioner may require the cooperative unit to grant the 
307.31  district membership.  
307.32     Sec. 91.  Minnesota Statutes 1996, section 123.351, 
307.33  subdivision 1, is amended to read: 
307.34     Subdivision 1.  [ESTABLISHMENT.] Two or more independent 
307.35  school districts may enter into an agreement to establish a 
307.36  cooperative center to provide for vocational education and other 
308.1   educational services upon the vote of a majority of the full 
308.2   membership of each of the boards of the districts entering into 
308.3   the agreement.  The agreement may also provide for membership by 
308.4   cities, counties, and other governmental units as defined in 
308.5   section 471.59.  When a resolution approving this action has 
308.6   been adopted by the board of a district, the resolution shall be 
308.7   published once in a newspaper of general circulation in the 
308.8   district.  If a petition for referendum on the question of the 
308.9   district entering into the agreement, containing signatures of 
308.10  qualified voters of the district equal to five percent of the 
308.11  number of voters at the last school district general election, 
308.12  is filed with the clerk of the board within 60 days after 
308.13  publication of the resolution, the board shall must not enter 
308.14  into the agreement until the question has been submitted to the 
308.15  voters of the district at a special election.  This election 
308.16  shall must be conducted and canvassed in the same manner as 
308.17  school district general elections.  If a majority of the total 
308.18  number of votes cast on the question within the district is in 
308.19  favor of the proposition, the board may enter into an agreement 
308.20  to establish the center for purposes described in this section.  
308.21     Sec. 92.  Minnesota Statutes 1996, section 123.351, 
308.22  subdivision 3, is amended to read: 
308.23     Subd. 3.  [GOVERNING BOARD.] (a) The center shall must be 
308.24  operated by a center board of not less than five members which 
308.25  shall consist of members from school boards of each of the 
308.26  participating school districts within the center and member 
308.27  cities, counties, and other governmental units, appointed by 
308.28  their respective boards.  Each participating school district 
308.29  shall must have at least one member on the board.  The board 
308.30  shall must choose an administrative officer to administer board 
308.31  policy and directives who shall serve as an ex officio member of 
308.32  the board but shall not have a vote. 
308.33     (b) The terms of office of the first members of the center 
308.34  board shall must be determined by lot as follows:  one-third of 
308.35  the members for one year, one-third for two years, and the 
308.36  remainder for three years, all terms to expire on June 30 of the 
309.1   appropriate year; provided that if the number of members is not 
309.2   evenly divisible by three, the membership will be as evenly 
309.3   distributed as possible among one, two and three year terms with 
309.4   the remaining members serving the three year term.  Thereafter 
309.5   the terms shall be for three years commencing on July 1 of each 
309.6   year.  If a vacancy occurs on the center board, it shall must be 
309.7   filled by the appropriate school board within 90 days.  A person 
309.8   appointed to the center board shall qualify as a board member by 
309.9   filing with the chair a written certificate of appointment from 
309.10  the appointing school board. 
309.11     (c) The first meeting of a center board shall must be at a 
309.12  time mutually agreed upon by board members.  At this meeting, 
309.13  the center board shall must choose its officers and conduct any 
309.14  other necessary organizational business. Thereafter the center 
309.15  board shall must meet on the first of July 1 of each year or as 
309.16  soon thereafter as practicable pursuant to notice sent to all 
309.17  center board members by the chief executive officer of the 
309.18  center. 
309.19     (d) The officers of the center board shall be a chair, 
309.20  vice-chair, clerk and treasurer, no two of whom when possible 
309.21  shall be from the same school district.  The chair shall preside 
309.22  at all meetings of the center board except in the chair's 
309.23  absence the vice-chair shall preside.  The clerk shall keep a 
309.24  complete record of the minutes of each meeting and the treasurer 
309.25  shall be the custodian of the funds of the center.  Insofar as 
309.26  applicable, sections 123.33 and 123.34, shall apply to the board 
309.27  and officers of the center. 
309.28     (e) Each participating school district shall must have 
309.29  equal voting power with at least one vote.  A majority of the 
309.30  center board shall be a quorum.  Any motion other than 
309.31  adjournment shall pass only upon receiving a majority of the 
309.32  votes of the entire center board.  
309.33     Sec. 93.  Minnesota Statutes 1996, section 123.351, 
309.34  subdivision 4, is amended to read: 
309.35     Subd. 4.  [POWERS AND DUTIES.] (a) The center board shall 
309.36  have the general charge of the business of the center and the 
310.1   ownership of facilities.  Where applicable, section 123.36, 
310.2   shall apply.  The center board may not issue bonds in its 
310.3   behalf.  Each participating district may issue its bonds for the 
310.4   purpose of acquisition and betterment of center facilities in 
310.5   the amount certified by the center board to such participating 
310.6   district in accordance with chapter 475. 
310.7      (b) The center board (1) may furnish vocational offerings 
310.8   to any eligible person residing in any participating district; 
310.9   (2) may provide special education for the handicapped and 
310.10  disadvantaged; and (3) may provide any other educational 
310.11  programs or services defined in section 123.582, subdivisions 7 
310.12  and 8, agreed upon by the participating members.  Academic 
310.13  offerings shall be provided only under the direction of properly 
310.14  licensed academic supervisory personnel. 
310.15     (c) In accordance with subdivision 5, clause (b), the 
310.16  center board shall certify to each participating district the 
310.17  amount of funds assessed to the district as its proportionate 
310.18  share required for the conduct of the educational programs, 
310.19  payment of indebtedness, and all other proper expenses of the 
310.20  center. 
310.21     (d) The center board shall must employ and contract with 
310.22  necessary qualified teachers and administrators and may 
310.23  discharge the same for cause pursuant to section 125.12.  The 
310.24  authority for selection and employment of a director shall be 
310.25  vested in the center board.  Notwithstanding the provisions of 
310.26  section 125.12, subdivision 6a or 6b, no individual shall have a 
310.27  right to employment as a director based on seniority or order of 
310.28  employment by the center.  The board may employ and discharge 
310.29  other necessary employees and may contract for other services 
310.30  deemed necessary. 
310.31     (e) The center board may provide an educational program for 
310.32  secondary and adult vocational phases of instruction.  The high 
310.33  school phase of its educational program shall must be offered as 
310.34  a component of the comprehensive curriculum offered by each of 
310.35  the participating school districts.  Graduation shall must be 
310.36  from the student's resident high school district.  Insofar as 
311.1   applicable, sections 123.35 to 123.40, shall apply. 
311.2      (f) The center board may prescribe rates of tuition for 
311.3   attendance in its programs by adults and nonmember district 
311.4   secondary students.  
311.5      Sec. 94.  Minnesota Statutes 1996, section 123.351, 
311.6   subdivision 5, is amended to read: 
311.7      Subd. 5.  [FINANCING.] (a) Any center board established 
311.8   pursuant to this section is a public corporation and agency and 
311.9   may receive and disburse federal, state, and local funds made 
311.10  available to it.  No A participating school district or member 
311.11  shall must not have any additional individual liability for the 
311.12  debts or obligations of the center except that assessment which 
311.13  has been certified as its proportionate share in accordance with 
311.14  subdivision 5, clause (b) and subdivision 4, clauses (a) and 
311.15  (c).  A member of the center board shall have such liability as 
311.16  is applicable to a member of an independent school district 
311.17  board.  Any property, real or personal, acquired or owned by the 
311.18  center board for its purposes shall be exempt from taxation by 
311.19  the state or any of its political subdivisions. 
311.20     (b) The center board may, in each year, for the purpose of 
311.21  paying any administrative, planning, operating, or capital 
311.22  expenses incurred or to be incurred, assess and certify to each 
311.23  participating school district its proportionate share of any and 
311.24  all expenses.  This share shall must be based upon an equitable 
311.25  distribution formula agreed upon by the participating 
311.26  districts.  Each participating district shall remit its 
311.27  assessment to the center board within 30 days after receipt.  
311.28  The assessments shall be paid within the maximum levy 
311.29  limitations of each participating district.  
311.30     Sec. 95.  Minnesota Statutes 1996, section 123.351, 
311.31  subdivision 8, is amended to read: 
311.32     Subd. 8.  [ADDITION AND WITHDRAWAL OF DISTRICTS.] Upon 
311.33  approval by majority vote of a school board and of the center 
311.34  board, an adjoining school district may become a member in the 
311.35  center and be governed by the provisions of this section and the 
311.36  agreement in effect. 
312.1      Any participating district may withdraw from the center and 
312.2   from the agreement in effect by a majority vote of the full 
312.3   board membership of the participating school district desiring 
312.4   withdrawal and upon compliance with provisions in the agreement 
312.5   establishing the center.  Upon receipt of the withdrawal 
312.6   resolution reciting the necessary facts, the center board shall 
312.7   must file a certified copy with the county auditors of the 
312.8   counties affected.  The withdrawal shall become effective at the 
312.9   end of the next following school year but the withdrawal shall 
312.10  not affect the continued liability of the withdrawing district 
312.11  for bonded indebtedness it incurred prior to the effective 
312.12  withdrawal date.  
312.13     Sec. 96.  Minnesota Statutes 1996, section 123.351, 
312.14  subdivision 8a, is amended to read: 
312.15     Subd. 8a.  [DISSOLUTION.] The boards of each participating 
312.16  district may agree to dissolve a center effective at the end of 
312.17  any school year or at an earlier time as they may mutually 
312.18  agree.  A dissolution shall must be accomplished in accordance 
312.19  with any applicable provisions of the agreement establishing the 
312.20  center.  Upon receipt of the dissolution resolutions from the 
312.21  boards of the participating districts, the center board shall 
312.22  file a certified copy with the county auditors of the counties 
312.23  affected.  The dissolution shall must not affect the continuing 
312.24  liability of the previously participating districts for bonded 
312.25  indebtedness incurred prior to the dissolution, or for other 
312.26  continuing obligations, including reemployment insurance.  
312.27     Sec. 97.  Minnesota Statutes 1996, section 123.582, 
312.28  subdivision 2, is amended to read: 
312.29     Subd. 2.  [PURPOSE OF SC.] The primary purposes of 
312.30  designation as a SC shall be to perform planning on a regional 
312.31  basis and to assist in meeting specific needs of clients in 
312.32  participating governmental units which could be better provided 
312.33  by a SC than by the members themselves.  The SC shall must 
312.34  provide those programs and services which are determined, 
312.35  pursuant to subdivision 7, to be priority needs of the 
312.36  particular region and shall must assist in meeting special needs 
313.1   which arise from fundamental constraints upon individual members.
313.2      Sec. 98.  Minnesota Statutes 1996, section 124.511, is 
313.3   amended to read: 
313.4      124.511 [SURPLUS COUNTY SCHOOL TAX FUNDS; DISTRIBUTION.] 
313.5      When, by reason of reorganization of districts, there is a 
313.6   surplus in the county treasury to the credit of the county 
313.7   school tax fund on account of an excessive tax levy 
313.8   heretofore already made, and when there is no need therefor, for 
313.9   the surplus, shall be paid by the county treasurer shall pay the 
313.10  surplus to the reorganized district upon the order of the county 
313.11  board.  
313.12     Sec. 99.  Minnesota Statutes 1996, section 124C.45, 
313.13  subdivision 1, is amended to read: 
313.14     Subdivision 1.  [GOVERNANCE.] A school district may 
313.15  establish an area learning center either by itself or in 
313.16  cooperation with other districts, a SC, an intermediate school 
313.17  district, a local education and employment transitions 
313.18  partnership, public and private secondary and post-secondary 
313.19  institutions, public agencies, businesses, and foundations.  
313.20  Except for a district located in a city of the first class, a 
313.21  center must serve the geographic area of at least two districts. 
313.22     Sec. 100.  Minnesota Statutes 1997 Supplement, section 
313.23  124C.45, subdivision 1a, is amended to read: 
313.24     Subd. 1a.  [RESERVE REVENUE.] Each school district that is 
313.25  a member of an area learning center must reserve revenue in an 
313.26  amount equal to at least 90 percent of the district average 
313.27  general education revenue less compensatory revenue unit times 
313.28  the number of pupil units attending an area learning center 
313.29  program under this section.  The amount of reserved revenue 
313.30  under this subdivision may only be spent on program costs 
313.31  associated with the area learning center.  Compensatory revenue 
313.32  must be allocated according to section 124A.28, subdivision 1a.  
313.33     Sec. 101.  Minnesota Statutes 1996, section 124C.49, is 
313.34  amended to read: 
313.35     124C.49 [DESIGNATION AS CENTER.] 
313.36     The commissioner of children, families, and learning, in 
314.1   cooperation with the state board of education, shall establish a 
314.2   process for state designation and approval of area learning 
314.3   centers that meet the provisions of sections 124C.45 to 
314.4   124C.48.  Any process for designating and approving an area 
314.5   learning center must emphasize the importance of having the area 
314.6   learning center serve students who have dropped out of school, 
314.7   are homeless, are eligible to receive free or reduced priced 
314.8   lunch, have been suspended or expelled, have been declared 
314.9   truant or are pregnant or parents. 
314.10     Sec. 102.  [REPEALER.] 
314.11     Minnesota Statutes 1996, sections 122.532, subdivision 1; 
314.12  and 122.541, subdivision 3, are repealed. 
314.13     Sec. 103.  [INSTRUCTION TO REVISOR.] 
314.14     The revisor of statutes shall renumber each section of 
314.15  Minnesota Statutes listed in column A with the number listed in 
314.16  column B.  The revisor shall also make necessary cross-reference 
314.17  changes consistent with the renumbering. 
314.18        Column A                        Column B 
314.19       122.01                         122A.01
314.20       122.02                         122A.02
314.21       122.03                         122A.03
314.22       122.21                         122A.05
314.23       122.22, subd. 1                122A.06, subd. 1
314.24               subd. 2                         subd. 2
314.25               subd. 3                         subd. 3
314.26               subd. 4                         subd. 4
314.27               subd. 5                         subd. 5
314.28               subd. 6                         subd. 6
314.29               subd. 7                         subd. 7
314.30               subd. 7a                        subd. 8
314.31               subd. 8                         subd. 9
314.32               subd. 9                         subd. 10
314.33               subd. 11                        subd. 11
314.34               subd. 13                        subd. 12
314.35               subd. 14                        subd. 13
314.36               subd. 18                        subd. 14
315.1                subd. 20                        subd. 15
315.2                subd. 21                        subd. 16
315.3        122.23, subd. 1                122A.10, subd. 1
315.4                subd. 2                         subd. 2
315.5                subd. 2a                        subd. 3
315.6                subd. 2b                        subd. 4
315.7                subd. 3                         subd. 5
315.8                subd. 4                         subd. 6
315.9                subd. 5                         subd. 7
315.10               subd. 6                         subd. 8
315.11               subd. 7                         subd. 9
315.12               subd. 8                         subd. 10
315.13               subd. 9                         subd. 11
315.14               subd. 10                        subd. 12
315.15               subd. 11                        subd. 13
315.16               subd. 12                        subd. 14
315.17               subd. 13                        subd. 15
315.18               subd. 14                        subd. 16
315.19               subd. 15                        subd. 17
315.20               subd. 16                        subd. 18
315.21               subd. 16c                       subd. 19
315.22               subd. 18                        subd. 20
315.23               subd. 18a                       subd. 21
315.24               subd. 19                        subd. 22
315.25               subd. 20                        subd. 23
315.26       127.25                         122A.11
315.27       122.535                        122A.12
315.28       122.541, subd. 1               122A.14, subd. 1
315.29                subd. 2                        subd. 2
315.30                subd. 4                        subd. 3
315.31                subd. 5                        subd. 4
315.32                subd. 6                        subd. 5
315.33                subd. 7                        subd. 6
315.34       122.895, subd. 1               122A.15, subd. 1
315.35                subd. 2                        subd. 2
315.36                subd. 2a                       subd. 3
316.1                 subd. 3                        subd. 4
316.2                 subd. 4                        subd. 5
316.3                 subd. 5                        subd. 6
316.4                 subd. 6                        subd. 7
316.5                 subd. 7                        subd. 8
316.6                 subd. 8                        subd. 9
316.7                 subd. 9                        subd. 10
316.8                 subd. 10                       subd. 11
316.9        122.241                        122A.17
316.10       122.242                        122A.18
316.11       122.243                        122A.19
316.12       122.244                        122A.20
316.13       122.245                        122A.21
316.14       122.246                        122A.22
316.15       122.247, subd. 1               122.23, subd. 1
316.16                subd. 2                       subd. 2
316.17                subd. 2a                      subd. 3
316.18                subd. 3                       subd. 4
316.19       122.248                        122A.24
316.20       122.25                         122A.26
316.21       122.32                         122A.30
316.22       122.34                         122A.31
316.23       122.355                        122A.32
316.24       122.41                         122A.34
316.25       122.43                         122A.35
316.26       122.44                         122A.36
316.27       122.45, subd. 1                122A.37, subd. 1
316.28               subd. 2                         subd. 2
316.29               subd. 3a                        subd. 3
316.30       122.46                         122A.38
316.31       122.47                         122A.39
316.32       122.48                         122A.40
316.33       122.51                         122A.41
316.34       122.531, subd. 1               122A.43, subd. 1
316.35                subd. 1a                       subd. 2
316.36                subd. 2                        subd. 3
317.1                 subd. 2a                       subd. 4
317.2                 subd. 2b                       subd. 5
317.3                 subd. 2c                       subd. 6
317.4                 subd. 2d                       subd. 7
317.5                 subd. 4                        subd. 8
317.6                 subd. 4a                       subd. 9
317.7                 subd. 5a                       subd. 10
317.8                 subd. 6                        subd. 11
317.9                 subd. 9                        subd. 12
317.10       122.5311                       122A.44
317.11       122.532, subd. 2               122A.45, subd. 1
317.12                subd. 3                        subd. 2
317.13                subd. 3a                       subd. 3
317.14                subd. 4                        subd. 4
317.15       122.533                        122A.46
317.16       124.511                        122A.47
317.17       121.155                        122A.48
317.18       122.539                        122A.49
317.19       122.91, subd. 1                122A.50, subd. 1
317.20               subd. 2                         subd. 2
317.21               subd. 2a                        subd. 3
317.22               subd. 3                         subd. 4
317.23               subd. 3a                        subd. 5
317.24               subd. 4                         subd. 6
317.25               subd. 6                         subd. 7
317.26       122.92                         122A.51
317.27       122.93, subd. 1                122A.52, subd. 1
317.28               subd. 2                         subd. 2
317.29               subd. 3                         subd. 3
317.30               subd. 4                         subd. 4
317.31               subd. 5                         subd. 5
317.32               subd. 6                         subd. 6
317.33               subd. 8                         subd. 7
317.34       122.94, subd. 1                122A.53, subd. 1
317.35               subd. 4                         subd. 2
317.36               subd. 5                         subd. 3
318.1        122.95, subd. 1                122A.54, subd. 1
318.2                subd. 1a                        subd. 2
318.3                subd. 2                         subd. 3
318.4                subd. 3                         subd. 4
318.5                subd. 4                         subd. 5
318.6        123.582                        122A.56
318.7        123.351, subd. 1               122A.57, subd. 1
318.8                 subd. 2                        subd. 2
318.9                 subd. 3                        subd. 3
318.10                subd. 4                        subd. 4
318.11                subd. 5                        subd. 5
318.12                subd. 6                        subd. 6
318.13                subd. 7                        subd. 7
318.14                subd. 8                        subd. 8
318.15                subd. 8a                       subd. 9
318.16                subd. 9                        subd. 10
318.17                subd. 10                       subd. 11
318.18       123.35, subd. 19a              122A.58, subd. 1
318.19               subd. 19b                       subd. 2
318.20               subd. 21                        subd. 3
318.21       122.98                         122A.59
318.22       124.193                        122A.60
318.23       124C.45, subd. 1               122A.65, subd. 1
318.24                subd. 1a                       subd. 2
318.25                subd. 2                        subd. 3
318.26                subd. 3                        subd. 4
318.27       124C.46                        122A.66
318.28       124C.47                        122A.67
318.29       124C.48                        122A.68
318.30       124C.49                        122A.69
318.31                             ARTICLE 6
318.32                            CHAPTER 123A 
318.33               POWERS AND DUTIES OF SCHOOL DISTRICTS 
318.34     Section 1.  Minnesota Statutes 1996, section 120.59, is 
318.35  amended to read: 
318.36     120.59 [PURPOSE OF FLEXIBLE LEARNING YEAR PROGRAMS.] 
319.1      The purpose of Sections 120.59 to 120.67 is to authorize 
319.2   districts to evaluate, plan and employ the use of flexible 
319.3   learning year programs.  It is anticipated that the open 
319.4   selection of the type of flexible learning year operation from a 
319.5   variety of alternatives will allow each district which seeks 
319.6   seeking to utilize this concept to suitably fulfill the 
319.7   educational needs of its pupils.  These alternatives shall must 
319.8   include, but not be limited to, various 45-15 plans, 
319.9   four-quarter plans, quinmester plans, extended learning year 
319.10  plans, flexible all-year plans, and four-day week plans.  
319.11     Sec. 2.  Minnesota Statutes 1996, section 120.60, is 
319.12  amended to read: 
319.13     120.60 [DEFINITION OF FLEXIBLE LEARNING YEAR.] 
319.14     "Flexible learning year program" means any district plan 
319.15  approved by the state board of education which that utilizes 
319.16  buildings and facilities during the entire year and/or which or 
319.17  that provides forms of optional scheduling of pupils and 
319.18  personnel during the learning year in elementary and secondary 
319.19  schools or residential facilities for children with a disability.
319.20     Sec. 3.  Minnesota Statutes 1996, section 120.61, is 
319.21  amended to read: 
319.22     120.61 [ESTABLISHMENT OF FLEXIBLE LEARNING YEAR PROGRAM.] 
319.23     The board of any district, with the approval of the state 
319.24  board of education, may establish and operate a flexible 
319.25  learning year program in one or more of the day or residential 
319.26  facilities for children with a disability within the district.  
319.27     Sec. 4.  Minnesota Statutes 1996, section 120.62, is 
319.28  amended to read: 
319.29     120.62 [DIVISION OF CHILDREN INTO GROUPS.] 
319.30     The board of any district operating a flexible learning 
319.31  year program in one or more of the facilities within the 
319.32  district shall must divide the students of each selected 
319.33  facility into as many groups as necessary to accommodate this 
319.34  program.  Students of the same family shall must be placed in 
319.35  the same group unless one or more of these students is enrolled 
319.36  in a special education class or unless the parent or guardian of 
320.1   these students requests that the students be placed in different 
320.2   groups.  No board shall may discriminate on the basis of race, 
320.3   color, creed, religion, marital status, status with regard to 
320.4   public assistance, sex, or national origin when assigning pupils 
320.5   to attendance groups pursuant to this section.  
320.6      Sec. 5.  Minnesota Statutes 1996, section 120.63, is 
320.7   amended to read: 
320.8      120.63 [PUBLIC HEARING BEFORE IMPLEMENTATION.] 
320.9      Prior to Before implementing a flexible learning year 
320.10  program in any facility of the district, the board shall must 
320.11  negotiate with the teachers, principals, assistant principals, 
320.12  supervisory personnel and employees to the extent required by 
320.13  the public employment labor relations act, and shall must 
320.14  consult with the parents of pupils who would be affected by the 
320.15  change, and with the community at large.  These procedures shall 
320.16  must include at least three informational meetings for which the 
320.17  board has given published notice to the teachers and employees 
320.18  and to the parents of pupils affected.  
320.19     Sec. 6.  Minnesota Statutes 1996, section 120.64, is 
320.20  amended to read: 
320.21     120.64 [ASSIGNMENT OF TEACHERS.] 
320.22     Subdivision 1.  [IMPLEMENTING PROGRAM.] In districts where 
320.23  a flexible learning year program is implemented in fewer than 
320.24  all of the facilities maintained by the district, the board of 
320.25  the district shall must make every reasonable effort to assign 
320.26  qualified teachers who prefer a traditional schedule to 
320.27  facilities of the same level retaining a traditional schedule. 
320.28     Subd. 2.  [TEACHER SCHEDULE.] A full-time teacher currently 
320.29  employed by a district which that converts to a flexible 
320.30  learning year program shall may not, without the teacher's 
320.31  written consent, be required to teach under this program (1) 
320.32  more or less than the number of scheduled days or their 
320.33  equivalent the facilities of the district were maintained during 
320.34  the year preceding implementation of the flexible learning year 
320.35  program; (2) in a period of the calendar year substantially 
320.36  different from the period in which the teacher taught during the 
321.1   year preceding implementation of the flexible learning year 
321.2   program. 
321.3      Subd. 3.  [CONTRACT RIGHTS; PROGRAM ADOPTION.] In no event 
321.4   shall may a teacher's continuing contract rights to a position 
321.5   held the year preceding implementation of a flexible learning 
321.6   year program or teaching experience earned during a probationary 
321.7   period the year preceding implementation be lost or impaired 
321.8   upon adoption of a flexible learning year program.  If the year 
321.9   of teaching preceding implementation was the end of a 
321.10  probationary period, the continuing contract right to a full 
321.11  year's contract which normally would be acquired for the next 
321.12  succeeding learning year shall must be acquired in the year of 
321.13  adoption of the flexible program. 
321.14     Subd. 4.  [CONTRACT FOR LEARNING YEAR.] Any district 
321.15  operating a flexible learning year program shall must enter into 
321.16  one contract governing the entire learning year with each 
321.17  teacher employed in a flexible program.  If individual teachers 
321.18  contract to teach less than a period of 175 days during a 
321.19  learning year, each 175 days of employment accrued during any 
321.20  five-year period after the adoption of a flexible learning year 
321.21  program shall must be deemed consecutive and shall 
321.22  constitute constitutes a full year's employment for purposes of 
321.23  establishing and retaining continuing contract rights to a full 
321.24  learning year position pursuant to sections 125.12, subdivisions 
321.25  3 and 4, and 125.17, subdivisions 2 and 3.  A teacher who has 
321.26  not been discharged or advised of a refusal to renew the 
321.27  teacher's contract by the applicable date, as specified in 
321.28  section 125.12 or 125.17, in the year in which the teacher will 
321.29  complete the requisite number of days for securing a continuing 
321.30  contract shall must have a continuing full learning year 
321.31  contract with the district. 
321.32     Subd. 5.  [CONTRACT RIGHTS; TERMINATION OF PROGRAM.] 
321.33  Continuing contract rights established pursuant to this 
321.34  section shall must not be impaired or lost by the termination of 
321.35  a flexible learning year program. 
321.36     Sec. 7.  Minnesota Statutes 1996, section 120.66, is 
322.1   amended to read: 
322.2      120.66 [POWERS AND DUTIES OF THE STATE BOARD.] 
322.3      Subdivision 1.  [POWERS AND DUTIES.] The state board of 
322.4   education shall must: 
322.5      (1) promulgate rules necessary to the operation of sections 
322.6   120.59 to 120.67; 
322.7      (2) cooperate with and provide supervision of flexible 
322.8   learning year programs to determine compliance with the 
322.9   provisions of sections 120.59 to 120.67, the state board 
322.10  standards and qualifications, and the proposed program as 
322.11  submitted and approved; 
322.12     (3) provide any necessary adjustments of (a) attendance and 
322.13  membership computations and (b) the dates and percentages of 
322.14  apportionment of state aids; and 
322.15     (4) consistent with the definition of "average daily 
322.16  membership" in section 124.17, subdivision 2, furnish the board 
322.17  of a district implementing a flexible learning year program with 
322.18  a formula for computing average daily membership.  This formula 
322.19  shall must be computed so that tax levies to be made by the 
322.20  district, state aids to be received by the district, and any and 
322.21  all other formulas based upon average daily membership are not 
322.22  affected solely as a result of adopting this plan of instruction.
322.23     Subd. 2.  [LIMITATIONS.] Sections 120.59 to 120.67 shall 
322.24  may not be construed to authorize the state board to require the 
322.25  establishment of a flexible learning year program in any 
322.26  district in which the board has not voted to establish, 
322.27  maintain, and operate such a program. 
322.28     Sec. 8.  Minnesota Statutes 1996, section 121.585, 
322.29  subdivision 2, is amended to read: 
322.30     Subd. 2.  [STATE BOARD DESIGNATION.] An area learning 
322.31  center designated by the state must be a site.  To be 
322.32  designated, a district or center must demonstrate to the 
322.33  commissioner of children, families, and learning that it will: 
322.34     (1) provide a program of instruction that permits pupils to 
322.35  receive instruction throughout the entire year; and 
322.36     (2) maintain a record system that, for purposes of section 
323.1   124.17, permits identification of membership attributable to 
323.2   pupils participating in the program.  The record system and 
323.3   identification must ensure that the program will not have the 
323.4   effect of increasing the total number of pupil units 
323.5   attributable to an individual pupil as a result of a learning 
323.6   year program. 
323.7      Sec. 9.  Minnesota Statutes 1996, section 121.585, 
323.8   subdivision 6, is amended to read: 
323.9      Subd. 6.  [CONTRACTS.] A district may contract with a 
323.10  licensed employee to provide services in a learning year program 
323.11  that are in addition to the services provided according to the 
323.12  master contract of employment for teachers or an equivalent 
323.13  contract for licensed employees who are not teachers.  These 
323.14  additional services and compensation, if any, for the services 
323.15  shall must not become a part of the employee's continuing 
323.16  contract rights under section 125.12 or 125.17.  
323.17     Sec. 10.  Minnesota Statutes 1996, section 121.585, 
323.18  subdivision 7, is amended to read: 
323.19     Subd. 7.  [REVENUE COMPUTATION AND REPORTING.] Aid and levy 
323.20  revenue computations shall must be based on the total number of 
323.21  hours of education programs for pupils in average daily 
323.22  membership for each fiscal year.  For purposes of section 
323.23  124.17, average daily membership shall be computed by dividing 
323.24  the total number of hours of participation for the fiscal year 
323.25  by the minimum number of hours for a year determined for the 
323.26  appropriate grade level.  Hours of participation that occur 
323.27  after the close of the regular instructional year and before 
323.28  July 1 shall must be attributed to the following fiscal year.  
323.29  Thirty hours may be used for teacher workshops, staff 
323.30  development, or parent-teacher conferences.  As part of each 
323.31  pilot program, the department of children, families, and 
323.32  learning and each district must report and evaluate the changes 
323.33  needed to adjust the dates of the fiscal year for aid and levy 
323.34  computation and fiscal year reporting.  For revenue computation 
323.35  purposes, the learning year program shall generate revenue based 
323.36  on the formulas for the fiscal year in which the services are 
324.1   provided. 
324.2      State aid and levy revenue computation for the learning 
324.3   year programs begins July 1, 1988, for fiscal year 1989. 
324.4      Sec. 11.  Minnesota Statutes 1996, section 121.904, 
324.5   subdivision 1, is amended to read: 
324.6      Subdivision 1.  [SCOPE.] School District revenues shall 
324.7   must be recognized and reported on the district books of account 
324.8   in accordance with this section.  
324.9      Sec. 12.  Minnesota Statutes 1996, section 121.904, 
324.10  subdivision 2, is amended to read: 
324.11     Subd. 2.  [APPLICABILITY TO PERIOD AND FUND.] Except as 
324.12  provided in this section, revenues shall must be recorded in a 
324.13  manner which clearly indicates that they are applicable to a 
324.14  specific accounting period and fund.  
324.15     Sec. 13.  Minnesota Statutes 1996, section 121.904, 
324.16  subdivision 3, is amended to read: 
324.17     Subd. 3.  [RECEIVABLE.] Receivables shall must be recorded 
324.18  in a manner which clearly reflects the amounts of money due to a 
324.19  particular fund from public and private sources at the date of 
324.20  each accounting statement. 
324.21     Sec. 14.  Minnesota Statutes 1997 Supplement, section 
324.22  121.904, subdivision 4a, is amended to read: 
324.23     Subd. 4a.  [LEVY RECOGNITION.] (a) "School district tax 
324.24  settlement revenue" means the current, delinquent, and 
324.25  manufactured home property tax receipts collected by the county 
324.26  and distributed to the school district, including distributions 
324.27  made pursuant to section 279.37, subdivision 7, and excluding 
324.28  the amount levied pursuant to section 124.914, subdivision 1. 
324.29     (b) In June of each year, the school district shall must 
324.30  recognize as revenue, in the fund for which the levy was made, 
324.31  the lesser of:  
324.32     (1) the May, June, and July school district tax settlement 
324.33  revenue received in that calendar year; or 
324.34     (2) the sum of the state aids and credits enumerated in 
324.35  section 124.155, subdivision 2, which are for the fiscal year 
324.36  payable in that fiscal year plus an amount equal to the levy 
325.1   recognized as revenue in June of the prior year plus 31 percent 
325.2   of the amount of the levy certified in the prior calendar year 
325.3   according to section 124A.03, subdivision 2; or 
325.4      (3)(i) 7.0 percent of the lesser of the amount of the 
325.5   general education levy certified in the prior calendar year 
325.6   according to section 124A.23, subdivision 2, or the difference 
325.7   between the amount of the total general fund levy certified in 
325.8   the prior calendar year and the sum of the amounts certified in 
325.9   the prior calendar year according to sections 124A.03, 
325.10  subdivision 2; 124.315, subdivision 4; 124.912, subdivisions 1, 
325.11  paragraph (2), 2, and 3; 124.916, subdivisions 1, 2, and 3, 
325.12  paragraphs (4), (5), and (6); and 124.918, subdivision 6; plus 
325.13     (ii) 31 percent of the referendum levy certified in the 
325.14  prior calendar year according to section 124A.03, subdivision 2; 
325.15  plus 
325.16     (iii) the entire amount of the levy certified in the prior 
325.17  calendar year according to sections 124.315, subdivision 4; 
325.18  124.912, subdivisions 1, paragraph (2), 2, and 3; 124.916, 
325.19  subdivisions 1, 2, and 3, paragraphs (4), (5), and (6); and 
325.20  124.918, subdivision 6. 
325.21     (c) In July of each year, the school district shall 
325.22  recognize as revenue that portion of the school district tax 
325.23  settlement revenue received in that calendar year and not 
325.24  recognized as revenue for the previous fiscal year pursuant to 
325.25  clause (b).  
325.26     (d) All other school district tax settlement revenue shall 
325.27  must be recognized as revenue in the fiscal year of the 
325.28  settlement. Portions of the school district levy assumed by the 
325.29  state, including prior year adjustments and the amount to fund 
325.30  the school portion of the reimbursement made pursuant to section 
325.31  273.425, shall be recognized as revenue in the fiscal year 
325.32  beginning in the calendar year for which the levy is payable.  
325.33     Sec. 15.  Minnesota Statutes 1996, section 121.904, 
325.34  subdivision 4c, is amended to read: 
325.35     Subd. 4c.  [CHANGE IN LEVY RECOGNITION PERCENT.] (a) Money 
325.36  appropriated under section 16A.152, subdivision 2, must be used 
326.1   to reduce the levy recognition percent specified in subdivision 
326.2   4a, clauses (b)(2) and (b)(3), for taxes payable in the same 
326.3   calendar year the appropriation is made.  
326.4      (b) The levy recognition percent shall equal the result of 
326.5   the following computation:  the current levy recognition 
326.6   percent, times the ratio of 
326.7      (1) the statewide total amount of levy recognized in June 
326.8   of the year in which the taxes are payable pursuant to 
326.9   subdivision 4a, clause (b), excluding those levies that are 
326.10  shifted for revenue recognition but are not included in the 
326.11  computation of the adjustment to aids under section 124.155, 
326.12  subdivision 1, reduced by the difference between the amount of 
326.13  money appropriated under section 16A.152, subdivision 2, and the 
326.14  amount required for the adjustment payment under clause (d), to 
326.15     (2) the statewide total amount of the levy recognized in 
326.16  June of the year in which the taxes are payable pursuant to 
326.17  subdivision 4a, clause (b), excluding those levies that are 
326.18  shifted for revenue recognition but are not included in the 
326.19  computation of the adjustment to aids under section 124.155, 
326.20  subdivision 1.  
326.21     The result shall must be rounded up to the nearest 
326.22  one-tenth of a percent.  However, in no case shall the levy 
326.23  recognition percent be reduced below zero or increased above the 
326.24  current levy recognition percent.  
326.25     (c) The commissioner of finance must certify to the 
326.26  commissioner of children, families, and learning the amount 
326.27  available to reduce the levy recognition percent computed under 
326.28  this subdivision by January 5 of each year.  The commissioner of 
326.29  children, families, and learning must notify school districts of 
326.30  a change in the levy recognition percent by January 15 of the 
326.31  same month. 
326.32     (d) When the levy recognition percent is increased or 
326.33  decreased as provided in this subdivision, a special aid 
326.34  adjustment shall be made to each school district with an 
326.35  operating referendum levy:  
326.36     (i) When the levy recognition percent is increased from the 
327.1   prior fiscal year, the commissioner of children, families, and 
327.2   learning shall calculate the difference between (1) the amount 
327.3   of the levy under section 124A.03, that is recognized as revenue 
327.4   for the current fiscal year according to subdivision 4a; and (2) 
327.5   the amount of the levy, under section 124A.03, that would have 
327.6   been recognized as revenue for the current fiscal year had the 
327.7   percentage according to subdivision 4a, not been increased.  The 
327.8   commissioner shall reduce other aids due the district by the 
327.9   amount of the difference.  This aid reduction shall be in 
327.10  addition to the aid reduction required because of the increase 
327.11  pursuant to this subdivision of the levy recognition percent.  
327.12     (ii) When the levy recognition percent is reduced from the 
327.13  prior fiscal year, a special adjustment payment shall must be 
327.14  made to each school district with an operating referendum levy 
327.15  that received an aid reduction when the levy recognition percent 
327.16  was last increased.  The special adjustment payment shall must 
327.17  be in addition to the additional payments required because of 
327.18  the reduction pursuant to this subdivision of the levy 
327.19  recognition percent.  The amount of the special adjustment 
327.20  payment shall be computed by the commissioner of children, 
327.21  families, and learning such that any remaining portion of the 
327.22  aid reduction these districts received that has not been repaid 
327.23  is repaid on a proportionate basis as the levy recognition 
327.24  percent is reduced from 50 percent to 31 percent.  The special 
327.25  adjustment payment must be included in the state aid payments to 
327.26  school districts according to the schedule specified in section 
327.27  124.195, subdivision 3.  
327.28     (e) The commissioner of finance shall transfer from the 
327.29  general fund to the education aids appropriations specified by 
327.30  the commissioner of children, families, and learning, the 
327.31  amounts needed to finance the additional payments required 
327.32  because of the reduction pursuant to this subdivision of the 
327.33  levy recognition percent.  Payments to a school district of 
327.34  additional state aids resulting from a reduction in the levy 
327.35  recognition percent must be included in the cash metering of 
327.36  payments made according to section 124.195 after January 15, and 
328.1   must be paid in a manner consistent with the percent specified 
328.2   in that section. 
328.3      Sec. 16.  Minnesota Statutes 1996, section 121.904, 
328.4   subdivision 13, is amended to read: 
328.5      Subd. 13.  [DEVIATIONS FOOTNOTED.] Deviations from the 
328.6   principles set forth in this section shall must be evaluated and 
328.7   explained in footnotes to audited financial statements. 
328.8      Sec. 17.  Minnesota Statutes 1996, section 121.906, is 
328.9   amended to read: 
328.10     121.906 [EXPENDITURES; REPORTING.] 
328.11     Subdivision 1.  [RECOGNITION.] School District expenditures 
328.12  shall must be recognized and reported on the district books of 
328.13  account in accordance with this section. 
328.14     There shall be Fiscal year-end recognition of expenditures 
328.15  and the related offsetting liabilities must be recorded in each 
328.16  fund in accordance with the uniform financial accounting and 
328.17  reporting standards for Minnesota school districts.  
328.18  Encumbrances outstanding at the end of the fiscal year do not 
328.19  constitute expenditures or liabilities.  
328.20     Deviations from the principles set forth in this 
328.21  subdivision shall must be evaluated and explained in footnotes 
328.22  to audited financial statements. 
328.23     Subd. 2.  [ACCOUNTING.] Expenditures for any legal purpose 
328.24  of the school district not accounted for elsewhere shall must be 
328.25  accounted for in the general fund. 
328.26     Sec. 18.  Minnesota Statutes 1996, section 121.908, is 
328.27  amended to read: 
328.28     121.908 [ACCOUNTING, BUDGETING AND REPORTING REQUIREMENT.] 
328.29     Subdivision 1.  [UNIFORM FINANCIAL ACCOUNTING AND REPORTING 
328.30  STANDARDS.] Each Minnesota school district shall must adopt the 
328.31  uniform financial accounting and reporting standards for 
328.32  Minnesota school districts provided for in guidelines adopted by 
328.33  the department of children, families, and learning.  
328.34     Subd. 2.  [AUDITED FINANCIAL STATEMENT.] Each district 
328.35  shall must submit to the commissioner by August 15 of each year 
328.36  an unaudited financial statement for the preceding fiscal year.  
329.1   This statement shall must be submitted on forms prescribed by 
329.2   the commissioner.  
329.3      Subd. 3.  [STATEMENT FOR COMPARISON AND CORRECTION.] By 
329.4   December 31 of the calendar year of the submission of the 
329.5   unaudited financial statement, the district shall must provide 
329.6   to the commissioner and state auditor an audited financial 
329.7   statement prepared in a form which will allow comparison with 
329.8   and correction of material differences in the unaudited 
329.9   statement.  The audited financial statement must also provide a 
329.10  statement of assurance pertaining to uniform financial 
329.11  accounting and reporting standards compliance.  
329.12     Subd. 3a.  [BUDGET APPROVAL.] Prior to July 1 of each year, 
329.13  the school board of each district shall must approve and adopt 
329.14  its revenue and expenditure budgets for the next school year.  
329.15  The budget document so adopted shall must be considered an 
329.16  expenditure-authorizing or appropriations document.  No funds 
329.17  shall be expended by any board or district for any purpose in 
329.18  any school year prior to the adoption of the budget document 
329.19  which authorizes that expenditure, or prior to an amendment to 
329.20  the budget document by the board to authorize the expenditure.  
329.21  Expenditures of funds in violation of this subdivision shall be 
329.22  considered unlawful expenditures.  
329.23     Subd. 5.  [JOINT POWERS AGREEMENTS; SC'S, EDUCATION 
329.24  DISTRICTS.] All governmental units formed by joint powers 
329.25  agreements entered into by districts pursuant to section 120.17, 
329.26  120.1701, 123.351, 471.59, or any other law and all service 
329.27  cooperatives and education districts shall be are subject to the 
329.28  provisions of this section.  
329.29     Subd. 6.  [BENEFITS.] A school district providing early 
329.30  retirement incentive payments under section 125.611, severance 
329.31  pay under section 465.72, or health insurance benefits to 
329.32  retired employees under section 471.61, must account for the 
329.33  payments according to uniform financial accounting and reporting 
329.34  standards. 
329.35     Sec. 19.  Minnesota Statutes 1996, section 121.911, is 
329.36  amended to read: 
330.1      121.911 [CASH FLOW; SCHOOL DISTRICT REVENUES; BORROWING FOR 
330.2   CURRENT OPERATING COSTS; CAPITAL EXPENDITURE DEFICITS.] 
330.3      Subdivision 1.  [STATE AIDS PAYMENT.] The commissioner of 
330.4   finance shall remit all payments of state aids to school 
330.5   districts in conformance with the dates provided by law or, when 
330.6   not so provided, with a schedule of aid payments to be 
330.7   established by the commissioner of children, families, and 
330.8   learning in consultation with other affected state agencies. 
330.9      Subd. 2.  [TAXES.] The auditors or finance officers of 
330.10  Minnesota counties shall remit all payments of taxes to 
330.11  the school districts in conformance with the provisions of 
330.12  section 276.11.  School Districts which have need for tax 
330.13  remittance advances may secure them from the counties by making 
330.14  formal requests in conformance with section 276.11. 
330.15     Subd. 3.  [TAX AND AID ANTICIPATION CERTIFICATES.] 
330.16  Minnesota school districts may issue tax and aid anticipation 
330.17  certificates in conformance with the provisions of sections 
330.18  124.71 to 124.76, with the additional provision that the 
330.19  proceeds of such borrowing or any other method of borrowing 
330.20  shall be recorded as liabilities of funds for which the taxes 
330.21  were levied, or for which the aids are receivable.  Nothing in 
330.22  this subdivision shall provide provides authority for borrowing 
330.23  against the tax levies and aids of one school district fund for 
330.24  the purpose of increasing the available cash balance of another 
330.25  fund. 
330.26     Subd. 4.  [BORROWING FOR OUTSTANDING BONDS.] Unless 
330.27  otherwise provided by law, no a district shall must not, for the 
330.28  purpose of increasing the available cash balance of another 
330.29  fund, borrow or transfer funds from the building construction 
330.30  fund, debt redemption fund, trust and agency fund, or from any 
330.31  sinking fund for outstanding bonds issued for any purpose.  
330.32  However, if the contemplated use for which funds were originally 
330.33  placed in the building construction fund or a sinking fund is 
330.34  afterwards abandoned or if a balance remains after the use is 
330.35  accomplished, a district may devote these funds as provided in 
330.36  section 475.65.  For the purpose of insuring fund integrity, on 
331.1   determining that a district is in violation of this subdivision 
331.2   or section 121.904, the commissioner shall require that such 
331.3   district maintain separate bank accounts for building 
331.4   construction funds, debt redemption funds, trust and agency 
331.5   funds, and sinking funds for outstanding bonds.  Nothing in this 
331.6   subdivision shall be construed to prohibit the use of common 
331.7   bank accounts for other funds unless prohibited by law. 
331.8      Subd. 5.  [DEFICIT FOR CAPITAL PROJECTS.] Upon approval by 
331.9   the commissioner of children, families, and learning, a district 
331.10  may incur a deficit in the reserve for operating capital account 
331.11  for a period not to exceed three years to provide money for 
331.12  capital projects.  The commissioner shall approve a description 
331.13  of the project and a financial plan to recover the deficit shall 
331.14  be approved by the commissioner prior to the initiation of the 
331.15  project.  
331.16     Sec. 20.  Minnesota Statutes 1997 Supplement, section 
331.17  121.912, subdivision 1, is amended to read: 
331.18     Subdivision 1.  [LIMITATIONS.] Except as provided in this 
331.19  subdivision, sections 121.9121, 123.36, 475.61, and 475.65, a 
331.20  school district may not permanently transfer money from (1) an 
331.21  operating fund to a nonoperating fund; (2) a nonoperating fund 
331.22  to another nonoperating fund; or (3) a nonoperating fund to an 
331.23  operating fund.  Permanent transfers may be made from any fund 
331.24  to any other fund to correct for prior fiscal years' errors 
331.25  discovered after the books have been closed for that year.  
331.26  Permanent transfers may be made from the general fund to any 
331.27  other operating funds according to section 123.7045 or if the 
331.28  resources of the other fund are not adequate to finance approved 
331.29  expenditures from that other fund.  Permanent transfers may also 
331.30  be made from the general fund to eliminate deficits in another 
331.31  fund when that other fund is being discontinued.  When a 
331.32  district discontinues operation of a district-owned bus fleet or 
331.33  a substantial portion of a fleet, the balance shall cancel to 
331.34  the district's general fund.  
331.35     Sec. 21.  Minnesota Statutes 1996, section 121.912, 
331.36  subdivision 1a, is amended to read: 
332.1      Subd. 1a.  [TECHNICAL COLLEGES.] Money shall must not be 
332.2   transferred from the post-secondary general fund to any other 
332.3   operating or nonoperating fund.  
332.4      Sec. 22.  Minnesota Statutes 1996, section 121.912, 
332.5   subdivision 1b, is amended to read: 
332.6      Subd. 1b.  [TRA AND FICA TRANSFER.] (a) Notwithstanding 
332.7   subdivision 1, a district may transfer money from the general 
332.8   fund to the community service fund for the employer 
332.9   contributions for teacher retirement and FICA for employees who 
332.10  are members of a teacher retirement association and who are paid 
332.11  from the community service fund.  
332.12     (b) A district shall must not transfer money under 
332.13  paragraph (a) for employees who are paid with money other than 
332.14  normal operating funds, as defined in section 354.05, 
332.15  subdivision 27.  
332.16     Sec. 23.  Minnesota Statutes 1996, section 121.912, 
332.17  subdivision 2, is amended to read: 
332.18     Subd. 2.  [DEFINITION.] As used in this section, "operating 
332.19  fund" and "nonoperating fund" shall have the meanings specified 
332.20  in the uniform financial accounting and reporting standards for 
332.21  Minnesota school districts.  Any transfer for a period in excess 
332.22  of one year shall be deemed to be a permanent transfer.  
332.23     Sec. 24.  Minnesota Statutes 1996, section 121.912, 
332.24  subdivision 3, is amended to read: 
332.25     Subd. 3.  [DEFICITS; EXCEPTION.] For the purposes of this 
332.26  section, a permanent transfer includes creating a deficit in a 
332.27  nonoperating fund for a period past the end of the current 
332.28  fiscal year which is covered by moneys in an operating fund.  
332.29  However, a deficit in the capital expenditure fund pursuant to 
332.30  section 121.911, subdivision 5, shall does not constitute a 
332.31  permanent transfer. 
332.32     Sec. 25.  Minnesota Statutes 1996, section 121.912, 
332.33  subdivision 5, is amended to read: 
332.34     Subd. 5.  [ACCOUNT TRANSFER FOR CERTAIN SEVERANCE PAY.] A 
332.35  school district may maintain in a designated for certain 
332.36  severance pay account not more than 50 percent of the amount 
333.1   necessary to meet the obligations for the portion of severance 
333.2   pay that constitutes compensation for accumulated sick leave to 
333.3   be used for payment of premiums for group insurance provided for 
333.4   former employees by the district.  The amount necessary shall 
333.5   must be calculated according to standards established by the 
333.6   advisory council on uniform financial accounting and reporting 
333.7   standards.  
333.8      Sec. 26.  Minnesota Statutes 1996, section 121.912, 
333.9   subdivision 6, is amended to read:  
333.10     Subd. 6.  [ACCOUNT TRANSFER FOR REORGANIZING DISTRICTS.] A 
333.11  school district that has reorganized according to section 
333.12  122.22, 122.23, or sections 122.241 to 122.248, or has conducted 
333.13  a successful referendum on the question of combination under 
333.14  section 122.243, subdivision 2, or consolidation under section 
333.15  122.23, subdivision 13, or has been assigned an identification 
333.16  number by the commissioner under section 122.23, subdivision 14, 
333.17  may make permanent transfers between any of the funds in the 
333.18  newly created or enlarged district with the exception of the 
333.19  debt redemption fund, food service fund, and health and safety 
333.20  account of the capital expenditure fund.  Fund transfers under 
333.21  this section may be made for up to one year prior to the 
333.22  effective date of combination or consolidation and during the 
333.23  year following the effective date of reorganization. 
333.24     Sec. 27.  Minnesota Statutes 1996, section 121.9121, 
333.25  subdivision 2, is amended to read: 
333.26     Subd. 2.  [APPLICATION.] A board requesting authority to 
333.27  transfer money shall must apply to the commissioner and provide 
333.28  information requested.  The application shall must indicate the 
333.29  law or rule prohibiting the desired transfer.  It shall The 
333.30  application must be signed by the superintendent and approved by 
333.31  the school board.  
333.32     Sec. 28.  Minnesota Statutes 1996, section 121.9121, 
333.33  subdivision 4, is amended to read: 
333.34     Subd. 4.  [APPROVAL STANDARD.] The commissioner may approve 
333.35  a request only when an event has occurred in a district that 
333.36  could not have been foreseen by the district.  The event shall 
334.1   must relate directly to the fund or account involved and to the 
334.2   amount to be transferred. 
334.3      Sec. 29.  Minnesota Statutes 1996, section 121.914, 
334.4   subdivision 2, is amended to read: 
334.5      Subd. 2.  [STATUTORY OPERATING DEBT.] If the amount of the 
334.6   operating debt is more than 2-1/2 percent of the most recent 
334.7   fiscal year's expenditure amount for the funds considered under 
334.8   subdivision 1, the net negative undesignated fund balance shall 
334.9   be is defined as "statutory operating debt" for the purposes of 
334.10  this section and sections 121.917 and 124.914, subdivision 1. 
334.11     Sec. 30.  Minnesota Statutes 1996, section 121.914, 
334.12  subdivision 3, is amended to read: 
334.13     Subd. 3.  [DEBT VERIFICATION.] The commissioner shall 
334.14  establish a uniform auditing or other verification procedure for 
334.15  school districts to determine whether a statutory operating debt 
334.16  exists in any Minnesota school district as of June 30, 1977.  
334.17  This procedure shall also must identify all interfund transfers 
334.18  made during fiscal year 1977 from a fund included in computing 
334.19  statutory operating debt to a fund not included in computing 
334.20  statutory operating debt.  The standards for this uniform 
334.21  auditing or verification procedure shall must be promulgated by 
334.22  the state board pursuant to chapter 14.  If a school district 
334.23  applies to the commissioner for a statutory operating debt 
334.24  verification or if the unaudited financial statement for the 
334.25  school year ending June 30, 1977 reveals that a statutory 
334.26  operating debt might exist, the commissioner shall require a 
334.27  verification of the amount of the statutory operating debt which 
334.28  actually does exist. 
334.29     Sec. 31.  Minnesota Statutes 1996, section 121.914, 
334.30  subdivision 4, is amended to read: 
334.31     Subd. 4.  [DEBT ELIMINATION.] If an audit or other 
334.32  verification procedure conducted pursuant to subdivision 3 
334.33  determines that a statutory operating debt exists, a 
334.34  district shall must follow the procedures set forth in section 
334.35  124.914, subdivision 1, to eliminate this statutory operating 
334.36  debt. 
335.1      Sec. 32.  Minnesota Statutes 1996, section 121.914, 
335.2   subdivision 5, is amended to read: 
335.3      Subd. 5.  [CERTIFICATION OF DEBT.] The commissioner of 
335.4   children, families, and learning shall certify the amount of 
335.5   statutory operating debt for each school district.  Prior to 
335.6   June 30, 1979, the commissioner may, on the basis of corrected 
335.7   figures, adjust the total amount of statutory operating debt 
335.8   certified for any district. 
335.9      Sec. 33.  Minnesota Statutes 1996, section 121.914, 
335.10  subdivision 6, is amended to read: 
335.11     Subd. 6.  [REPORT.] On January 15, 1998, the commissioner 
335.12  of children, families, and learning shall report to the 
335.13  legislature on the districts for which the levy allowable under 
335.14  section 124.914, subdivision 1, has been insufficient to 
335.15  eliminate the statutory operating debt of the district, 
335.16  determined as of June 30, 1977. 
335.17     Sec. 34.  Minnesota Statutes 1996, section 121.914, 
335.18  subdivision 7, is amended to read: 
335.19     Subd. 7.  [APPLICABILITY.] This section and the provisions 
335.20  of section 124.914, subdivision 1, shall be are applicable only 
335.21  to common, independent, and special school districts and 
335.22  districts formed pursuant to Laws 1967, chapter 822, as amended, 
335.23  and Laws 1969, chapters 775 and 1060, as amended.  This section 
335.24  and the provisions of section 124.914, subdivision 1, shall do 
335.25  not apply to independent school district No. 625. 
335.26     Sec. 35.  Minnesota Statutes 1996, section 121.914, 
335.27  subdivision 8, is amended to read: 
335.28     Subd. 8.  [PLAN DISCLOSURE.] Any district eligible to 
335.29  receive any amounts pursuant to section 124.914, subdivision 
335.30  1, shall must disclose its statutory operating debt retirement 
335.31  plan by footnote to the audited financial statement. 
335.32     Sec. 36.  Minnesota Statutes 1996, section 121.917, is 
335.33  amended to read: 
335.34     121.917 [EXPENDITURE LIMITATIONS.] 
335.35     Subdivision 1.  [REDUCE STATUTORY OPERATING DEBT.] (a) 
335.36  Beginning in fiscal year 1978 and in each year thereafter, a 
336.1   district which had statutory operating debt on June 30, 1977 
336.2   pursuant to section 121.914 shall must limit its expenditures in 
336.3   each fiscal year so that the amount of its statutory operating 
336.4   debt calculated at the end of that fiscal year is not greater 
336.5   than the amount of the district's statutory operating debt as of 
336.6   June 30, 1977, as certified and adjusted by the commissioner, 
336.7   increased by an amount equal to 2-1/2 percent of that district's 
336.8   operating expenditures for the fiscal year for which the 
336.9   statutory operating debt calculation is being made. 
336.10     (b) When a district is no longer required to levy pursuant 
336.11  to section 124.914, subdivision 1, subdivision 2 shall be is 
336.12  applicable. 
336.13     Subd. 2.  [UNDESIGNATED FUND BALANCES.] Beginning in fiscal 
336.14  year 1978 and each year thereafter, any district not subject to 
336.15  the provisions of subdivision 1 shall must limit its 
336.16  expenditures so that its undesignated fund balances shall do not 
336.17  constitute statutory operating debt as defined in section 
336.18  121.914. 
336.19     Subd. 3.  [FAILURE TO LIMIT EXPENDITURES.] If a school 
336.20  district does not limit its expenditures in accordance with this 
336.21  section, the commissioner may so notify the appropriate 
336.22  committees of the legislature by no later than January 1 of the 
336.23  year following the end of that fiscal year. 
336.24     Subd. 4.  [SPECIAL OPERATING PLAN.] (1) If the net negative 
336.25  unappropriated operating fund balance as defined in section 
336.26  124A.02, subdivision 25, calculated in accordance with the 
336.27  uniform financial accounting and reporting standards for 
336.28  Minnesota school districts, as of June 30 each year, is more 
336.29  than 2-1/2 percent of the year's expenditure amount, the 
336.30  district shall must, prior to January 31 of the next fiscal 
336.31  year, submit a special operating plan to reduce the district's 
336.32  deficit expenditures to the commissioner of children, families, 
336.33  and learning for approval.  The commissioner may also require 
336.34  the district to provide evidence that the district meets and 
336.35  will continue to meet all of the curriculum requirements of the 
336.36  state board. 
337.1      Notwithstanding any other law to the contrary, a district 
337.2   submitting a special operating plan to the commissioner under 
337.3   this clause which is disapproved by the commissioner shall must 
337.4   not receive any aid pursuant to chapters 124 and 124A until a 
337.5   special operating plan of the district is so approved. 
337.6      (2) A district shall must receive aids pending the approval 
337.7   of its special operating plan under clause (1).  A district 
337.8   which complies with its approved operating plan shall must 
337.9   receive aids as long as the district continues to comply with 
337.10  the approved operating plan. 
337.11     Sec. 37.  Minnesota Statutes 1996, section 123.11, 
337.12  subdivision 1, is amended to read: 
337.13     Subdivision 1.  [ANNUAL MEETING.] The annual meeting of all 
337.14  common districts shall must be held on the last Tuesday in June, 
337.15  at 8:00 p.m., unless a different hour has been fixed at the 
337.16  preceding annual meeting, upon ten days' posted.  The clerk 
337.17  shall give notice given by the clerk, and of the meeting, 
337.18  specifying the matters to come before such meeting; but.  
337.19  Failure of the clerk to give such notice, or to specify the 
337.20  business to be transacted thereat, shall not affect the validity 
337.21  of any business, except the raising of money to build or 
337.22  purchase a school house, the authorizing of an issue of bonds, 
337.23  the fixing of a school house site, or the organization as an 
337.24  independent district.  At the annual meeting in a common 
337.25  district five legal voters shall constitute a quorum.  The chair 
337.26  and clerk of the board shall officiate in their respective 
337.27  capacities at all meetings of the electors of the district.  In 
337.28  the event of the absence of the chair or clerk, the voters shall 
337.29  elect a chair or clerk pro tem.  The voters shall have the power 
337.30  in an annual meeting to repeal and modify their proceedings.  
337.31  The polls at all meetings shall be open at least one hour. 
337.32     Sec. 38.  Minnesota Statutes 1996, section 123.11, 
337.33  subdivision 2, is amended to read: 
337.34     Subd. 2.  [ELECTIONS.] The annual meeting shall must have 
337.35  power to elect, by ballot, officers of the district.  In all 
337.36  elections or vote by ballot, the clerk shall record the names of 
338.1   all voters participating therein and the chair shall appoint two 
338.2   electors who.  The electors, with the assistance of the clerk, 
338.3   shall supervise the balloting and canvass the votes.  If any 
338.4   candidates receive an equal number of votes for an office, the 
338.5   board shall resolve the tie by lot.  
338.6      Sec. 39.  Minnesota Statutes 1996, section 123.11, 
338.7   subdivision 3, is amended to read: 
338.8      Subd. 3.  [CANDIDATES FOR OFFICE.] Any person desiring to 
338.9   be a candidate for a district office at the annual meeting of 
338.10  the district shall file with the clerk of the district an 
338.11  application to be placed on the ballot for such office, or.  Any 
338.12  five voters of the district may file such an application for or 
338.13  on behalf of any qualified voter in the district that they 
338.14  desire shall to be such a candidate.  The application 
338.15  Applications shall be filed not less than 12 days before the 
338.16  annual school district meeting.  The clerk of the district, in 
338.17  the notice of annual meeting, shall state the names of the 
338.18  candidates for whom applications have been filed, failure to do 
338.19  so shall not affect the validity of the election thereafter 
338.20  held.  At the annual meeting of common districts, nomination of 
338.21  candidates for offices may be made from the floor by any 
338.22  qualified voter.  
338.23     Sec. 40.  Minnesota Statutes 1996, section 123.11, 
338.24  subdivision 4, is amended to read: 
338.25     Subd. 4.  [BALLOTS.] The clerk shall prepare, at the 
338.26  expense of the district, necessary ballots for the election of 
338.27  officers placing thereon the names of the proposed candidates 
338.28  for such office with a blank space after such names, such.  The 
338.29  ballots shall be marked as official ballots, and the ballots so 
338.30  prepared by the clerk of the district shall be used to the 
338.31  exclusion of all other ballots at such annual meeting or 
338.32  election in the election of officers of the district. 
338.33     Sec. 41.  Minnesota Statutes 1996, section 123.11, 
338.34  subdivision 7, is amended to read: 
338.35     Subd. 7.  [SPECIAL MEETING.] Upon the filing of a petition 
338.36  therefor, executed by five eligible voters, as defined in 
339.1   Minnesota election law, of the common district, specifying the 
339.2   business to be acted upon, or upon the adoption of a proper 
339.3   resolution so specifying, signed by a majority of the members of 
339.4   the board, the clerk shall forthwith call a special meeting of 
339.5   the district upon.  The clerk shall give ten days' posted notice 
339.6   and one week's published notice if there be a newspaper printed 
339.7   in the district and specify in the notice the business named in 
339.8   the request or resolution and the time and place of the 
339.9   meeting.  If there be is no clerk in the district or if the 
339.10  clerk fails for three days after receiving a request or 
339.11  resolution to give notice of a meeting, it may be called by like 
339.12  notice by five eligible voters, as defined in Minnesota election 
339.13  law, of the district.  No business except that named in the 
339.14  notice shall be transacted at the meeting.  If there are not 
339.15  five eligible voters, as defined in Minnesota election law, or 
339.16  if there is not a board therein, the county auditor may call a 
339.17  special meeting by giving notice thereof as provided in this 
339.18  section.  The voters at a special meeting have power to repeal 
339.19  or modify their proceedings. 
339.20     Sec. 42.  Minnesota Statutes 1996, section 123.12, is 
339.21  amended to read: 
339.22     123.12 [BOARDS OF COMMON SCHOOL DISTRICTS.] 
339.23     Subdivision 1.  [SCHOOL BOARD.] The care, management and 
339.24  control of a common district is vested in a board of three 
339.25  members to be known as the school board.  The term of office of 
339.26  a member shall be three years, and until a successor qualifies. 
339.27  The board of each common district shall must consist of a chair, 
339.28  a treasurer, and a clerk.  The board may by resolution establish 
339.29  a time and place for regular meeting and no notice of such 
339.30  meeting need be sent to any members of the board.  
339.31     Subd. 2.  [FINANCES.] The board shall must submit to the 
339.32  annual meeting an estimate of the expenses of the district for 
339.33  the coming year for a school term as determined by the board and 
339.34  for such other specified purposes as the board may deem proper.  
339.35  If such the annual meeting shall fail fails to vote a sufficient 
339.36  tax to maintain the district for such time, the board shall must 
340.1   levy such tax pursuant to and within the limitations of sections 
340.2   124.226, 124.2716, 124.91, 124.912, 124.914, 124.916, and 
340.3   124.918; but no board shall expend any money or incur any 
340.4   liability for any purpose beyond the sum appropriated by vote of 
340.5   the district for such purpose, or levied by the board pursuant 
340.6   to this subdivision, or on hand and applicable thereto. 
340.7      Subd. 9.  [SCHOOL VISITS.] The board shall must visit each 
340.8   school at least once every three months. 
340.9      Subd. 14.  [OFFICIAL NEWSPAPER.] At its first meeting 
340.10  following July 1 each year, the board shall must designate, by 
340.11  resolution, as the official newspaper of the district, some 
340.12  legal newspaper of general circulation within the district, and 
340.13  contract with such newspaper for its publications.  If there is 
340.14  more than one such newspaper, the board shall let such must 
340.15  enter a contract to with the lowest responsible bidder at the 
340.16  earliest practicable date.  All notices and proceedings required 
340.17  by law to be published by the board shall must be published in 
340.18  the official newspaper so designated.  The fees for such 
340.19  publication shall must not exceed the fees for publication of 
340.20  legal notices as prescribed by Minnesota Statutes. 
340.21     Sec. 43.  Minnesota Statutes 1996, section 123.13, is 
340.22  amended to read: 
340.23     123.13 [OFFICERS OF COMMON SCHOOL DISTRICTS.] 
340.24     Subd. 2.  [TREASURER.] The treasurer shall receive and be 
340.25  responsible for all money in the district and disburse the same 
340.26  on orders signed by the clerk and countersigned by the chair or 
340.27  other vouchers authorized by law; provided, that,.  In the event 
340.28  that the chair has been continuously absent from the district 
340.29  for a period of 30 days or more, the treasurer may pay orders 
340.30  without the signature of the chair.  Each order shall must state 
340.31  the fund on which it is drawn, the name of the payee, and the 
340.32  nature of the claim for which such order is issued and shall 
340.33  must be so drawn that when signed by the treasurer in an 
340.34  appropriate place, it becomes a check on the school district 
340.35  depository.  The treasurer shall keep an account of each fund, 
340.36  and of all receipts and disbursements showing the sources of all 
341.1   receipts and the nature and purpose of disbursements.  The 
341.2   treasurer shall deposit the funds of the district in the 
341.3   official depository in accordance with the provisions of law.  
341.4      Sec. 44.  Minnesota Statutes 1996, section 123.15, is 
341.5   amended to read: 
341.6      123.15 [SCHOOLHOUSES AND SITES, COMMON SCHOOL DISTRICTS.] 
341.7      Subdivision 1.  [ACQUISITION OF SITES.] When authorized by 
341.8   the voters at a regular meeting or at a special meeting called 
341.9   for that purpose, the board may acquire necessary sites for 
341.10  school houses, or enlargements or additions to existing school 
341.11  house sites, by lease, purchase, or condemnation under the right 
341.12  of eminent domain; lease, erect or purchase garages for 
341.13  district-owned school buses; and sell or exchange school houses 
341.14  or sites and execute deeds of conveyances thereof. It may 
341.15  acquire by lease, purchase, or condemnation under eminent domain 
341.16  suitable tracts of land either within in or without outside of 
341.17  the district for the purpose of instruction, experimentation, 
341.18  and demonstration in agriculture.  In any city, a school site, 
341.19  when practicable, shall must contain at least one block, and, 
341.20  if. Outside of any city, a school site must contain at least two 
341.21  acres; and when.  If any school house site shall 
341.22  contain contains less than such the required amount the board 
341.23  may, without a vote of the electors, acquire other land adjacent 
341.24  to or near such site to make, with such site, all or part 
341.25  of such the required amount.  When If property is taken by 
341.26  eminent domain by authority of this subdivision, when needed by 
341.27  the district for such purpose, the fact that the property so 
341.28  needed has been was acquired by the owner under the power of 
341.29  eminent domain, or is already devoted to public use, shall not 
341.30  prevent its acquisition by the district. 
341.31     Subd. 2.  [SITE DESIGNATION.] The annual meeting or 
341.32  election shall have power to designate a site for a school house 
341.33  and provide for building or otherwise placing a school house 
341.34  thereon, when proper notice has been given; but.  A site on 
341.35  which a with an existing school house stands or where a school 
341.36  house is begun being built shall not be changed except by vote 
342.1   therefor, of three-fifths of the voters of the district voting 
342.2   on the question. 
342.3      Subd. 3.  [TEACHER DWELLING.] When authorized by a 
342.4   two-thirds majority of all the electors voting at an annual or 
342.5   special meeting, the board may erect, purchase, or acquire a 
342.6   dwelling house for the use of its teachers; provided that.  The 
342.7   proposition shall be submitted only at a meeting or election,.  
342.8   The notice of which stated the meeting shall state that such the 
342.9   proposition would shall be considered or submitted thereat. 
342.10     Sec. 45.  Minnesota Statutes 1996, section 123.33, 
342.11  subdivision 1, is amended to read: 
342.12     Subdivision 1.  [SCHOOL BOARD.] The care, management, and 
342.13  control of independent districts shall be is vested in a board 
342.14  of directors, to be known as the school board.  The term of 
342.15  office of a member shall be four years and until a successor 
342.16  qualifies.  The membership of the school board shall consist of 
342.17  six elected directors together with such ex officio member as 
342.18  may be provided by law.  But The board may submit to the 
342.19  electors at any school election the question whether the board 
342.20  shall consist of seven members and.  If a majority of those 
342.21  voting on the proposition favor a seven-member board, a seventh 
342.22  member shall be elected at the next election of directors for a 
342.23  four-year term and thereafter the board shall consist of seven 
342.24  members. 
342.25     Those districts with a seven-member board may submit to the 
342.26  electors at any school election at least 150 days before the 
342.27  next election of three members of the board the question whether 
342.28  the board shall consist of six members.  If a majority of those 
342.29  voting on the proposition favor a six-member board instead of a 
342.30  seven-member board, two members instead of three members shall 
342.31  be elected at the next election of the board of directors and 
342.32  thereafter the board shall consist of six members.  
342.33     Sec. 46.  Minnesota Statutes 1996, section 123.33, 
342.34  subdivision 2, is amended to read: 
342.35     Subd. 2.  [SCHOOL BOARD VACANCY.] A vacancy in any board 
342.36  occurs when a member (a) dies, or (b) resigns, or (c) ceases to 
343.1   be a resident of the district, or (d) is unable to serve on such 
343.2   board and attend its meetings for not less than 90 days because 
343.3   of illness or prolonged absence from the district.  
343.4      Sec. 47.  Minnesota Statutes 1996, section 123.33, 
343.5   subdivision 2a, is amended to read: 
343.6      Subd. 2a.  [SCHOOL BOARD MEMBER TRAINING.] A member 
343.7   must shall receive training in school finance and management 
343.8   developed in consultation with the Minnesota school boards 
343.9   association and consistent with section 121.919.  The school 
343.10  boards association shall must make available to each newly 
343.11  elected school board member training in school finance and 
343.12  management consistent with section 121.919 within 180 days of 
343.13  that member taking office.  The program shall be developed in 
343.14  consultation with the department of children, families, and 
343.15  learning and appropriate representatives of higher education.  
343.16     Sec. 48.  Minnesota Statutes 1996, section 123.33, 
343.17  subdivision 3, is amended to read: 
343.18     Subd. 3.  [ILL OR ABSENT MEMBER.] A vacancy caused by a 
343.19  member being unable to serve on such board and attend its 
343.20  meetings for not less than 90 days because of illness or 
343.21  prolonged absence from the district, may, after the board has by 
343.22  resolution declared such vacancy to exist, be filled by the 
343.23  board at any regular or special meeting thereof for the 
343.24  remainder of the unexpired term, or until such ill or absent 
343.25  member is again able to resume duties as a member of such board, 
343.26  whichever date is earliest.  When such the ill or absent member 
343.27  is again able to resume duties as a member of the board, the 
343.28  board shall must by resolution so determine and declare such 
343.29  person to be again a member of the board, and the member 
343.30  appointed by the board to be no longer a member thereof. 
343.31     Sec. 49.  Minnesota Statutes 1996, section 123.33, 
343.32  subdivision 4, is amended to read: 
343.33     Subd. 4.  [VACANCY; APPOINTMENT.] Any other vacancy in a 
343.34  board shall must be filled by board appointment at a regular or 
343.35  special meeting.  The appointment shall be evidenced by a 
343.36  resolution entered in the minutes and shall continue until an 
344.1   election is held under this subdivision.  All elections to fill 
344.2   vacancies shall be for the unexpired term.  If the vacancy 
344.3   occurs before the first day to file affidavits of candidacy for 
344.4   the next school district general election and more than two 
344.5   years remain in the unexpired term, a special election shall be 
344.6   held in conjunction with the school district general election.  
344.7   The appointed person shall serve until the qualification of the 
344.8   successor elected to fill the unexpired part of the term at that 
344.9   special election.  If the vacancy occurs on or after the first 
344.10  day to file affidavits of candidacy for the school district 
344.11  general election, or when less than two years remain in the 
344.12  unexpired term, there shall be no special election to fill the 
344.13  vacancy and the appointed person shall serve the remainder of 
344.14  the unexpired term and until a successor is elected and 
344.15  qualifies at the school district election. 
344.16     Sec. 50.  Minnesota Statutes 1996, section 123.33, 
344.17  subdivision 6, is amended to read: 
344.18     Subd. 6.  [RULES.] The board shall make, and when deemed 
344.19  advisable, change or repeal rules relating to the organization 
344.20  and management of the board and the duties of its officers. 
344.21     Sec. 51.  Minnesota Statutes 1996, section 123.33, 
344.22  subdivision 7, is amended to read: 
344.23     Subd. 7.  [DUTIES.] The board shall must superintend and 
344.24  manage the schools of the district; adopt rules for their 
344.25  organization, government, and instruction; keep registers; and 
344.26  prescribe textbooks and courses of study.  The board may enter 
344.27  into an agreement with a post-secondary institution for 
344.28  secondary or post-secondary nonsectarian courses to be taught at 
344.29  a secondary school, nonsectarian post-secondary institution, or 
344.30  another location. 
344.31     Sec. 52.  Minnesota Statutes 1996, section 123.33, 
344.32  subdivision 11, is amended to read: 
344.33     Subd. 11.  [PUBLISHING OF PROCEEDINGS.] The board shall 
344.34  must cause its official proceedings to be published once in the 
344.35  official newspaper of the district.  Such publication shall be 
344.36  made within 30 days of the meeting at which such proceedings 
345.1   occurred.  If the board determines that publication of a summary 
345.2   of the proceedings would adequately inform the public of the 
345.3   substance of the proceedings, the board may direct that only a 
345.4   summary be published, conforming to the requirements of section 
345.5   331A.01, subdivision 10.  
345.6      Sec. 53.  Minnesota Statutes 1996, section 123.33, 
345.7   subdivision 11a, is amended to read: 
345.8      Subd. 11a.  [MAILING OF PROCEEDINGS.] If a school board of 
345.9   a district that has no newspaper with its known office of issue 
345.10  or a secondary office located within the boundaries of the 
345.11  district and no newspaper that is distributed to more than 
345.12  one-third of the residences in the district determines that 
345.13  mailing a summary of its proceedings would be more economical 
345.14  than publication of the proceedings and that it would adequately 
345.15  inform the public, it may mail a summary of its proceedings to 
345.16  each residence in the district that can be identified as a 
345.17  homestead from the property tax records and to each other 
345.18  residence in the district that the board can identify.  The 
345.19  county shall must make the property tax records available to the 
345.20  board for this purpose.  The board shall must keep a copy of the 
345.21  summary of the proceedings as part of its records.  The decision 
345.22  of a school board to mail summaries, rather than publish the 
345.23  proceedings under this subdivision shall be presumed valid, 
345.24  subject to challenge by a court action. 
345.25     Sec. 54.  Minnesota Statutes 1996, section 123.335, is 
345.26  amended to read: 
345.27     123.335 [IMPREST CASH FUNDS.] 
345.28     Subdivision 1.  [IMPREST FUND.] The board may establish one 
345.29  or more imprest funds for the payment in cash of any proper 
345.30  claim against the district which it is impractical to pay in any 
345.31  other manner, except that no claim for salary or personal 
345.32  expenses of a district officer or employee shall be paid from 
345.33  such funds.  The board shall must appoint a custodian of each 
345.34  such fund who shall be responsible for its safekeeping and 
345.35  disbursement according to law.  Money for the operation of such 
345.36  fund shall be secured by a transfer from the general fund.  A 
346.1   claim itemizing all the various demands for which disbursements 
346.2   have been made from the fund shall must be presented to the 
346.3   board at the next board meeting after the disbursements have 
346.4   been made.  The board shall must act upon it as in the case of 
346.5   other claims and an order shall be issued to the custodian for 
346.6   the amount allowed.  The custodian shall use the proceeds of the 
346.7   order to replenish the fund; and.  If the board fails to approve 
346.8   the claim in full for any sufficient reason, the custodian shall 
346.9   be personally responsible for the difference. 
346.10     Subd. 2.  [ADVANCES.] The board may authorize an imprest 
346.11  fund for the purpose of advancing money to officers or employees 
346.12  to pay the actual and necessary expenses of such officer or 
346.13  employee in attending meetings outside of the district.  The 
346.14  board shall must appoint a custodian of such fund who shall be 
346.15  responsible for its safekeeping and disbursement according to 
346.16  law.  At the first regular meeting of the board after such 
346.17  meeting, the custodian shall submit an itemized claim for the 
346.18  actual and necessary expenses incurred and paid.  The 
346.19  board shall must act upon it as in the case of other claims and 
346.20  an order shall be issued to the custodian for the amount 
346.21  allowed.  The custodian shall use the proceeds of the order to 
346.22  repay the amount advanced from the fund and make final 
346.23  settlement with the officer or employee.  As an alternative the 
346.24  board may authorize travel advances if control is maintained by 
346.25  use of a travel advance account, the balance of which is 
346.26  supported by names of employees to whom money has been advanced. 
346.27     Sec. 55.  Minnesota Statutes 1996, section 123.34, 
346.28  subdivision 1, is amended to read: 
346.29     Subdivision 1.  [OFFICER SELECTION.] Within ten days after 
346.30  the election of the first board in independent districts and 
346.31  annually thereafter on July 1, or as soon thereafter as 
346.32  practicable, the board shall must meet and organize by selecting 
346.33  a chair, clerk, and a treasurer, who shall hold their offices 
346.34  for one year and until their successors are selected and 
346.35  qualify. The persons who perform the duties of the clerk and 
346.36  treasurer need not be members of the board and the board by 
347.1   resolution may combine the duties of the offices of clerk and 
347.2   treasurer in a single person in the office of business affairs.  
347.3   They may appoint a superintendent who shall be ex officio a 
347.4   member of the board, but not entitled to vote therein.  In 
347.5   districts in which board members are elected at the general 
347.6   election in November, the annual meeting of the board shall must 
347.7   be held on the first Monday of January or as soon thereafter as 
347.8   practicable. 
347.9      Sec. 56.  Minnesota Statutes 1996, section 123.34, 
347.10  subdivision 2, is amended to read: 
347.11     Subd. 2.  [CHAIR.] The chair when present shall preside at 
347.12  all meetings of the board, countersign all orders upon the 
347.13  treasurer for claims allowed by the board, represent the 
347.14  district in all actions and perform all the duties usually 
347.15  incumbent on such officer.  In case of absence, inability, or 
347.16  refusal of the clerk to draw orders for the payment of money 
347.17  authorized by a vote of the majority of the board to be paid, 
347.18  the orders may be drawn by the chair, and paid by the 
347.19  treasurer,.  A statement thereof of the orders drawn, with a 
347.20  copy of such orders, being shall be delivered to the clerk by 
347.21  the treasurer, or the office of the clerk may be declared vacant 
347.22  by the chair and treasurer and filled by appointment. 
347.23     Sec. 57.  Minnesota Statutes 1996, section 123.34, 
347.24  subdivision 7, is amended to read: 
347.25     Subd. 7.  [PERFORMANCE BOND.] When the duty devolves upon 
347.26  any person employed by a board to receive money and pay it over 
347.27  to the treasurer of the district, the district shall must 
347.28  require a bond from such person and pay all premiums therefor.  
347.29  The amount of each bond shall be fixed by the board and the bond 
347.30  approved by it.  The bond shall must be not less than $500 
347.31  conditioned for the faithful performance of the duty and shall 
347.32  be filed with the clerk.  In lieu of individual bonds, the 
347.33  district may prescribe and keep in effect a schedule or position 
347.34  insurance policy or blanket bond in such aggregate amount as the 
347.35  district determines, insuring the fidelity of such persons in 
347.36  the amount of not less than $500 for each such person.  
348.1      Sec. 58.  Minnesota Statutes 1996, section 123.34, 
348.2   subdivision 8, is amended to read: 
348.3      Subd. 8.  [CLERK RECORDS.] The clerk shall keep a record of 
348.4   all meetings of the district and the board in books provided by 
348.5   the district for that purpose.  The clerk shall, within three 
348.6   days after an election, notify all persons elected of their 
348.7   election.  On or before By August 15 of each year the clerk 
348.8   shall file with the board a report of the revenues, expenditures 
348.9   and balances in each fund for the preceding fiscal year.  The 
348.10  report together with vouchers and supporting documents shall 
348.11  subsequently be examined by a public accountant or the state 
348.12  auditor, either of whom shall be paid by the school district, as 
348.13  provided in section 121.908, subdivision 3.  The board shall by 
348.14  resolution approve the report or require a further or amended 
348.15  report.  On or before By August 15 of each year, the clerk shall 
348.16  make and transmit to the commissioner certified reports, showing:
348.17     (1) The condition and value of school property; 
348.18     (2) The revenues and expenditures in detail, and such other 
348.19  financial information required by law, rule, or as may be called 
348.20  for by the commissioner; 
348.21     (3) The length of school term and the enrollment and 
348.22  attendance by grades; and 
348.23     (4) Such other items of information as may be called for by 
348.24  the commissioner. 
348.25     The clerk shall enter in the clerk's record book copies of 
348.26  all reports and of the teachers' term reports, as they appear in 
348.27  the registers, and of the proceedings of any meeting as 
348.28  furnished by the clerk pro tem, and keep an itemized account of 
348.29  all the expenses of the district.  The clerk shall furnish to 
348.30  the auditor of the proper county, on or before by October 10 of 
348.31  each year, an attested copy of the clerk's record, showing the 
348.32  amount of money voted by the district or the board for school 
348.33  purposes; draw and sign all orders upon the treasurer for the 
348.34  payment of money for bills allowed by the board for salaries of 
348.35  officers and for teachers' wages and all claims, to be 
348.36  countersigned by the chair.  Such orders shall must state the 
349.1   consideration, payee, and the fund and the clerk shall take a 
349.2   receipt therefor.  Teachers' wages shall have preference in the 
349.3   order in which they become due, and no money applicable for 
349.4   teachers' wages shall be used for any other purpose, nor shall 
349.5   teachers' wages be paid from any fund except that raised or 
349.6   apportioned for that purpose.  
349.7      Sec. 59.  Minnesota Statutes 1996, section 123.34, 
349.8   subdivision 9, is amended to read: 
349.9      Subd. 9.  [SUPERINTENDENT.] All districts maintaining a 
349.10  classified secondary school shall must employ a superintendent 
349.11  who shall be an ex officio nonvoting member of the school board. 
349.12  The authority for selection and employment of a superintendent 
349.13  shall must be vested in the school board in all cases.  An 
349.14  individual employed by a school board as a superintendent shall 
349.15  have an initial employment contract for a period of time no 
349.16  longer than three years from the date of employment.  Any 
349.17  subsequent employment contract must not exceed a period of three 
349.18  years.  A school board, at its discretion, may or may not renew 
349.19  an employment contract.  A school board shall must not, by 
349.20  action or inaction, extend the duration of an existing 
349.21  employment contract.  Beginning 365 days prior to the expiration 
349.22  date of an existing employment contract, a school board may 
349.23  negotiate and enter into a subsequent employment contract to 
349.24  take effect upon the expiration of the existing contract.  A 
349.25  subsequent contract shall must be contingent upon the employee 
349.26  completing the terms of an existing contract.  If a contract 
349.27  between a school board and a superintendent is terminated prior 
349.28  to the date specified in the contract, the school board may not 
349.29  enter into another superintendent contract with that same 
349.30  individual that has a term that extends beyond the date 
349.31  specified in the terminated contract.  A school board may 
349.32  terminate a superintendent during the term of an employment 
349.33  contract for any of the grounds specified in section 125.12, 
349.34  subdivision 6 or 8.  A superintendent shall not rely upon an 
349.35  employment contract with a school board to assert any other 
349.36  continuing contract rights in the position of superintendent 
350.1   under section 125.12.  Notwithstanding the provisions of 
350.2   sections 122.532, 122.541, 125.12, subdivision 6a or 6b, or any 
350.3   other law to the contrary, no individual shall have a right to 
350.4   employment as a superintendent based on order of employment in 
350.5   any district.  If two or more school districts enter into an 
350.6   agreement for the purchase or sharing of the services of a 
350.7   superintendent, the contracting districts have the absolute 
350.8   right to select one of the individuals employed to serve as 
350.9   superintendent in one of the contracting districts and no 
350.10  individual has a right to employment as the superintendent to 
350.11  provide all or part of the services based on order of employment 
350.12  in a contracting district. The superintendent of a district 
350.13  shall perform the following:  
350.14     (1) visit and supervise the schools in the district, report 
350.15  and make recommendations about their condition when advisable or 
350.16  on request by the board; 
350.17     (2) recommend to the board employment and dismissal of 
350.18  teachers; 
350.19     (3) superintend school grading practices and examinations 
350.20  for promotions; 
350.21     (4) make reports required by the commissioner of children, 
350.22  families, and learning; and 
350.23     (5) perform other duties prescribed by the board.  
350.24     Sec. 60.  Minnesota Statutes 1996, section 123.34, 
350.25  subdivision 9a, is amended to read: 
350.26     Subd. 9a.  [DISCLOSE PAST BUYOUTS OR CONTRACT IS VOID.] (a) 
350.27  For the purposes of paragraph (b), a "buyout agreement" is any 
350.28  agreement under which a person employed as a superintendent left 
350.29  the position before the term of the contract was over and 
350.30  received a sum of money, something else of value, or the right 
350.31  to something of value for some purpose other than performing the 
350.32  services of a superintendent. 
350.33     (b) Before a person may enter into a superintendent's 
350.34  contract with a school board, the candidate shall disclose in 
350.35  writing the existence and terms of any previous buyout 
350.36  agreement, including amounts and the purpose for the payments, 
351.1   relating to a superintendent's contract with another school 
351.2   board.  A disclosure made under this paragraph is public data. 
351.3      (c) The superintendent's contract of a person who fails to 
351.4   make a timely disclosure under paragraph (b) is void.  
351.5      Sec. 61.  Minnesota Statutes 1996, section 123.34, 
351.6   subdivision 10, is amended to read: 
351.7      Subd. 10.  [PRINCIPALS.] Each public school building, as 
351.8   defined by section 120.05, subdivision 2, clauses (1), (2), and 
351.9   (3), in an independent school district may be under the 
351.10  supervision of a principal who is assigned to that 
351.11  responsibility by the board of education in that school district 
351.12  upon the recommendation of the superintendent of schools of that 
351.13  school district.  If pupils in kindergarten through grade 12 
351.14  attend school in one building, one principal may supervise the 
351.15  building. 
351.16     Each principal assigned the responsibility for the 
351.17  supervision of a school building shall hold a valid license in 
351.18  the assigned position of supervision and administration as 
351.19  established by the rules of the state board of education. 
351.20     The principal shall provide administrative, supervisory, 
351.21  and instructional leadership services, under the supervision of 
351.22  the superintendent of schools of the school district and in 
351.23  accordance with the policies, rules, and regulations of the 
351.24  board of education, for the planning, management, operation, and 
351.25  evaluation of the education program of the building or buildings 
351.26  to which the principal is assigned. 
351.27     Sec. 62.  Minnesota Statutes 1996, section 123.35, 
351.28  subdivision 1, is amended to read: 
351.29     Subdivision 1.  [BOARD AUTHORITY.] The board shall must 
351.30  have the general charge of the business of the district, the 
351.31  school houses, and of the interests of the schools thereof.  The 
351.32  board's authority to conduct the business of the district 
351.33  includes implied powers in addition to any specific powers 
351.34  granted by the legislature.  
351.35     Sec. 63.  Minnesota Statutes 1996, section 123.35, 
351.36  subdivision 2, is amended to read: 
352.1      Subd. 2.  [FACILITIES FOR SCHOOL-AGE CHILDREN.] It shall be 
352.2   is the duty and the function of the district to furnish school 
352.3   facilities to every child of school age residing in any part of 
352.4   the district.  The board may establish and organize and alter 
352.5   and discontinue such grades or schools as it may deem advisable 
352.6   and assign to each school and grade a proper number of pupils.  
352.7   The board shall provide free textbooks for the pupils of the 
352.8   district.  
352.9      Sec. 64.  Minnesota Statutes 1996, section 123.35, 
352.10  subdivision 4, is amended to read: 
352.11     Subd. 4.  [LEVY.] The board shall must provide by levy of 
352.12  tax necessary funds for the conduct of schools, the payment of 
352.13  indebtedness, and all proper expenses of the district. 
352.14     Sec. 65.  Minnesota Statutes 1996, section 123.35, 
352.15  subdivision 9b, is amended to read: 
352.16     Subd. 9b.  [SERVICES FOR INDIAN STUDENTS.] School districts 
352.17  may enter into agreements with Indian tribal governments for 
352.18  purposes of providing educational services for students.  Such 
352.19  agreements may allow for the use of any resources available to 
352.20  either party and must give students the option to enroll in 
352.21  the school district at their election. 
352.22     Sec. 66.  Minnesota Statutes 1996, section 123.35, 
352.23  subdivision 12, is amended to read: 
352.24     Subd. 12.  [ANNUITY CONTRACT; PAYROLL ALLOCATION.] At the 
352.25  request of an employee and as part of the employee's 
352.26  compensation arrangement, the board may purchase an individual 
352.27  annuity contract for an employee for retirement or other 
352.28  purposes and may make payroll allocations in accordance with 
352.29  such arrangement for the purpose of paying the entire premium 
352.30  due and to become due under such contract.  The allocation shall 
352.31  must be made in a manner which will qualify the annuity 
352.32  premiums, (or a portion thereof), for the benefit afforded under 
352.33  section 403(b) of the current Federal Internal Revenue Code or 
352.34  any equivalent provision of subsequent federal income tax law.  
352.35  The employee shall own such contract and the employee's 
352.36  rights thereunder under the contract shall be nonforfeitable 
353.1   except for failure to pay premiums.  Section 125.12 shall not be 
353.2   applicable hereto and the board shall have no liability 
353.3   thereunder because of its purchase of any individual annuity 
353.4   contracts.  This statute shall be applied in a nondiscriminatory 
353.5   manner to employees of the school district.  
353.6      Sec. 67.  Minnesota Statutes 1996, section 123.35, 
353.7   subdivision 15, is amended to read: 
353.8      Subd. 15.  [PAYMENT OF CLAIMS.] When payment of a claim 
353.9   cannot be deferred until the next board meeting without loss to 
353.10  the district of a discount privilege, or when payment of a claim 
353.11  cannot be deferred until the next board meeting because of 
353.12  contract terms, purchase order terms, or a vendor's standard 
353.13  terms which are part of the contract, the claim may be paid 
353.14  prior to board approval, providing that the board: 
353.15     (a) Has delegated authority to the clerk or a designated 
353.16  business administrator to make a payment prior to board approval 
353.17  and 
353.18     (b) Requires that payment made prior to board approval be 
353.19  acted upon at the next board meeting. 
353.20     Payment prior to board approval shall must not affect the 
353.21  right of the district or a taxpayer to challenge the validity of 
353.22  a claim. 
353.23     Sec. 68.  Minnesota Statutes 1996, section 123.35, 
353.24  subdivision 20, is amended to read: 
353.25     Subd. 20.  [LEGAL COUNSEL; REIMBURSEMENT.] If reimbursement 
353.26  is requested by a school district employee, the board may, after 
353.27  consulting with its legal counsel, reimburse the employee for 
353.28  any costs and reasonable attorney fees incurred by the person to 
353.29  defend criminal charges brought against the person arising out 
353.30  of the performance of duties for the school district.  A board 
353.31  member who is a witness or an alleged victim in the case may not 
353.32  vote on the reimbursement.  If a quorum of the board is 
353.33  disqualified from voting on the reimbursement, the reimbursement 
353.34  shall must be approved by a judge of the district court. 
353.35     Sec. 69.  Minnesota Statutes 1996, section 123.36, 
353.36  subdivision 1, is amended to read: 
354.1      Subdivision 1.  [SITES.] According to section 124.91, 
354.2   subdivision 1, or 465.71, when funds are available therefor, the 
354.3   board may locate and acquire necessary sites of schoolhouses or 
354.4   enlargements, or additions to existing schoolhouse sites by 
354.5   lease, purchase or condemnation under the right of eminent 
354.6   domain; it may erect schoolhouses thereon on the sites; it may 
354.7   erect or purchase garages for district-owned school buses.  When 
354.8   property is taken by eminent domain by authority of this 
354.9   subdivision when needed by the school district for such 
354.10  purposes, the fact that the property so needed has been acquired 
354.11  by the owner under the power of eminent domain or is already 
354.12  devoted to public use, shall not prevent its acquisition by 
354.13  the school district.  The board may sell or exchange 
354.14  schoolhouses or sites, and execute deeds of conveyance thereof.  
354.15     Sec. 70.  Minnesota Statutes 1996, section 123.36, 
354.16  subdivision 5, is amended to read: 
354.17     Subd. 5.  [USE OF SCHOOL HOUSES.] The board may authorize 
354.18  the use of any schoolhouses in the district for divine worship, 
354.19  Sunday schools, public meetings, elections, post-secondary 
354.20  instruction, and other community purposes that, in its judgment, 
354.21  will not interfere with their use for school purposes.  Before 
354.22  permitting any of these uses, the board may require a cash or 
354.23  corporate surety bond in a reasonable amount conditioned for the 
354.24  proper use of the schoolhouse, payment of all rent, and repair 
354.25  of all damage occasioned caused by the use.  It may determine a 
354.26  reasonable charge for using the schoolhouse. 
354.27     It may authorize the use of any schoolhouses or buildings 
354.28  owned or leased by the district for primaries, elections, 
354.29  registrations, and related activities if the board determines 
354.30  that the use will not interfere with school purposes.  It may 
354.31  impose reasonable regulations and conditions upon the use as may 
354.32  seem necessary and proper. 
354.33     Sec. 71.  Minnesota Statutes 1996, section 123.36, 
354.34  subdivision 10, is amended to read: 
354.35     Subd. 10.  [LEASE FOR NONSCHOOL PURPOSE.] (a) The board may 
354.36  lease to any person, business, or organization a schoolhouse 
355.1   that is not needed for school purposes, or part of a schoolhouse 
355.2   that is not needed for school purposes if the board determines 
355.3   that leasing part of a schoolhouse does not interfere with the 
355.4   educational programs taking place in the rest of the building. 
355.5   The board may charge and collect reasonable consideration for 
355.6   the lease and may determine the terms and conditions of the 
355.7   lease. 
355.8      (b) In districts with outstanding bonds, the net proceeds 
355.9   of the lease shall must be first deposited in the debt 
355.10  retirement fund of the district in an amount sufficient to meet 
355.11  when due that percentage of the principal and interest payments 
355.12  for outstanding bonds that is ascribable to the payment of 
355.13  expenses necessary and incidental to the construction or 
355.14  purchase of the particular building or property that is leased.  
355.15  Any remaining net proceeds in these districts may be deposited 
355.16  in either the debt redemption fund or capital expenditure fund.  
355.17  All net proceeds of the lease in districts without outstanding 
355.18  bonds shall be deposited in the capital expenditure fund of the 
355.19  district. 
355.20     (c) The board may make capital improvements, including 
355.21  fixtures, to a schoolhouse or a portion thereof, not exceeding 
355.22  in cost the replacement value of the schoolhouse, to facilitate 
355.23  its rental, and the lease of an improved schoolhouse, or part of 
355.24  it, shall provide for rentals which will recover the cost of the 
355.25  improvements over the initial term of the lease.  
355.26  Notwithstanding clause (b), the portion of the rentals 
355.27  representing the cost of the improvements shall be deposited in 
355.28  the capital expenditure fund of the district and the balance of 
355.29  the rentals shall be used as provided in clause (b).  
355.30     Sec. 72.  Minnesota Statutes 1996, section 123.36, 
355.31  subdivision 11, is amended to read: 
355.32     Subd. 11.  [SCHOOLHOUSE CLOSING.] The board may close a 
355.33  schoolhouse only after a public hearing on the question of the 
355.34  necessity and practicability of the proposed closing.  Published 
355.35  notice of the hearing shall be given for two weeks in the 
355.36  official newspaper of the district.  The time and place of the 
356.1   meeting, the description and location of the schoolhouse, and a 
356.2   statement of the reasons for the closing shall must be specified 
356.3   in the notice.  Parties requesting to give testimony for and 
356.4   against the proposal shall be heard by the board before it makes 
356.5   a final decision to close or not to close the schoolhouse.  
356.6      Sec. 73.  Minnesota Statutes 1996, section 123.36, 
356.7   subdivision 13, is amended to read: 
356.8      Subd. 13.  [PROCEEDS OF SALE OR EXCHANGE.] Proceeds of the 
356.9   sale or exchange of school buildings or real property of the 
356.10  school district shall must be used as provided in this 
356.11  subdivision. 
356.12     (a) In districts with outstanding bonds, the proceeds of 
356.13  the sale or exchange shall first be deposited in the debt 
356.14  retirement fund of the district in an amount sufficient to meet 
356.15  when due that percentage of the principal and interest payments 
356.16  for outstanding bonds which is ascribable to the payment of 
356.17  expenses necessary and incidental to the construction or 
356.18  purchase of the particular building or property which is sold.  
356.19     (b) After satisfying the requirements of paragraph (a), a 
356.20  district with outstanding bonds may deposit proceeds of the sale 
356.21  or exchange in its capital expenditure fund if the amount 
356.22  deposited is used for the following:  
356.23     (1) for expenditures for the cleanup of polychlorinated 
356.24  biphenyls, if the method for cleanup is approved by the 
356.25  department of children, families, and learning; 
356.26     (2) for capital expenditures for the betterment, as defined 
356.27  in section 475.51, subdivision 8, of district-owned school 
356.28  buildings; or 
356.29     (3) to replace the building or property sold.  
356.30     (c) In a district with outstanding bonds, the amount of the 
356.31  proceeds of the sale or exchange remaining after the application 
356.32  of paragraphs (a) and (b), which is sufficient to meet when due 
356.33  that percentage of the principal and interest payments for the 
356.34  district's outstanding bonds which is not governed by paragraph 
356.35  (a), shall be deposited in the debt retirement fund.  
356.36     (d) Any proceeds of the sale or exchange remaining in 
357.1   districts with outstanding bonds after the application of 
357.2   paragraphs (a), (b), and (c), and all proceeds of the sale or 
357.3   exchange in districts without outstanding bonds shall be 
357.4   deposited in the capital expenditure fund of the district. 
357.5      (e) Notwithstanding paragraphs (b) and (c), a district with 
357.6   outstanding bonds may deposit in its capital expenditure fund 
357.7   and use for any lawful capital expenditure without the reduction 
357.8   of any levy limitation the same percentage of the proceeds of 
357.9   the sale or exchange of a building or property as the percentage 
357.10  of the initial cost of purchasing or constructing the building 
357.11  or property which was paid using revenue from the capital 
357.12  expenditure fund.  
357.13     Sec. 74.  Minnesota Statutes 1996, section 123.36, 
357.14  subdivision 14, is amended to read: 
357.15     Subd. 14.  [ASBESTOS REMOVAL AND POLYCHLORINATED BIPHENYLS 
357.16  CLEANUP.] Notwithstanding any law to the contrary, school 
357.17  districts may, without an election, enter into contracts 
357.18  extending beyond the end of the fiscal year to pay the costs of 
357.19  removal or encapsulation of asbestos or cleanup of 
357.20  polychlorinated biphenyls found in school buildings or on school 
357.21  property.  
357.22     Sec. 75.  Minnesota Statutes 1996, section 123.37, 
357.23  subdivision 1, is amended to read: 
357.24     Subdivision 1.  [CONTRACTS.] No A contract for work or 
357.25  labor, or for the purchase of furniture, fixtures, or other 
357.26  property, except books registered under the copyright laws, or 
357.27  for the construction or repair of school houses, the estimated 
357.28  cost or value of which shall exceed that specified in section 
357.29  471.345, subdivision 3, shall must not be made by the school 
357.30  board without first advertising for bids or proposals by two 
357.31  weeks' published notice in the official newspaper.  This 
357.32  notice shall must state the time and place of receiving bids and 
357.33  contain a brief description of the subject matter. 
357.34     Additional publication in the official newspaper or 
357.35  elsewhere may be made as the board shall deem necessary. 
357.36     After taking into consideration conformity with the 
358.1   specifications, terms of delivery, and other conditions imposed 
358.2   in the call for bids, every such contract shall must be awarded 
358.3   to the lowest responsible bidder, be duly executed in writing, 
358.4   and be otherwise conditioned as required by law.  The person to 
358.5   whom the contract is awarded shall give a sufficient bond to the 
358.6   board for its faithful performance.  Notwithstanding section 
358.7   574.26 or any other law to the contrary, on a contract limited 
358.8   to the purchase of a finished tangible product, a school board 
358.9   may require, at its discretion, a performance bond of a 
358.10  contractor in the amount the board considers necessary.  A 
358.11  record shall must be kept of all bids, with names of bidders and 
358.12  amount of bids, and with the successful bid indicated thereon.  
358.13  A bid containing an alteration or erasure of any price contained 
358.14  in the bid which is used in determining the lowest responsible 
358.15  bid shall must be rejected unless the alteration or erasure is 
358.16  corrected as herein provided in this section.  An alteration or 
358.17  erasure may be crossed out and the correction thereof printed in 
358.18  ink or typewritten adjacent thereto and initialed in ink by the 
358.19  person signing the bid.  In the case of identical low bids from 
358.20  two or more bidders, the board may, at its discretion, utilize 
358.21  negotiated procurement methods with the tied low bidders for 
358.22  that particular transaction, so long as the price paid does not 
358.23  exceed the low tied bid price.  In the case where only a single 
358.24  bid is received, the board may, at its discretion, negotiate a 
358.25  mutually agreeable contract with the bidder so long as the price 
358.26  paid does not exceed the original bid.  If no satisfactory bid 
358.27  is received, the board may readvertise.  Standard requirement 
358.28  price contracts established for supplies or services to be 
358.29  purchased by the district shall must be established by 
358.30  competitive bids.  Such standard requirement price contracts may 
358.31  contain escalation clauses and may provide for a negotiated 
358.32  price increase or decrease based upon a demonstrable 
358.33  industrywide or regional increase or decrease in the vendor's 
358.34  costs.  Either party to the contract may request that the other 
358.35  party demonstrate such increase or decrease.  The term of such 
358.36  contracts shall must not exceed two years with an option on the 
359.1   part of the district to renew for an additional two years.  
359.2   Provided that in the case of Contracts for the purchase of 
359.3   perishable food items, except milk for school lunches and 
359.4   vocational training programs a contract of, in any amount may be 
359.5   made by direct negotiation by obtaining two or more written 
359.6   quotations for the purchase or sale, when possible, without 
359.7   advertising for bids or otherwise complying with the 
359.8   requirements of this section or section 471.345, subdivision 3.  
359.9   All quotations obtained shall be kept on file for a period of at 
359.10  least one year after receipt thereof. 
359.11     Every contract made without compliance with the provisions 
359.12  of this section shall be void.  Provided, that Except in the 
359.13  case of the destruction of buildings or injury thereto, where 
359.14  the public interest would suffer by delay, contracts for repairs 
359.15  may be made without advertising for bids.  
359.16     Sec. 76.  Minnesota Statutes 1996, section 123.37, 
359.17  subdivision 1a, is amended to read: 
359.18     Subd. 1a.  [CONTRACT WITHIN BUDGETED AMOUNTS.] The board 
359.19  may authorize its superintendent or business manager to lease, 
359.20  purchase, and contract for goods and services within the budget 
359.21  as approved by the board, provided that.  Any transaction in an 
359.22  amount exceeding the minimum amount for which bids are required 
359.23  must first be specifically authorized by the board and must 
359.24  fulfill all other applicable requirements in subdivision 1.  
359.25     Sec. 77.  Minnesota Statutes 1996, section 123.37, 
359.26  subdivision 1b, is amended to read: 
359.27     Subd. 1b.  [TRANSPORTATION; FUEL.] Notwithstanding the 
359.28  provisions of subdivision 1 or section 471.345, a contract for 
359.29  the transportation of school children, or a contract for the 
359.30  purchase of petroleum heating fuel or fuel for vehicles may be 
359.31  made by direct negotiation, by obtaining two or more written 
359.32  quotations for the service when possible, or upon sealed bids.  
359.33  At least 30 days before awarding a directly negotiated contract, 
359.34  the school district shall must, by published notice, request 
359.35  quotations for the service to be provided.  All quotations 
359.36  obtained shall must be kept on file for a period of at least one 
360.1   year after receipt thereof.  If a contract is made by direct 
360.2   negotiation, all quotations shall must be public information.  
360.3   If a contract is made upon sealed bids, the procedure for 
360.4   advertising and awarding bids shall conform to the provisions of 
360.5   subdivision 1 except as otherwise provided in this subdivision. 
360.6      Notwithstanding the provisions of subdivision 1 or section 
360.7   574.26, a performance bond shall must be required of a 
360.8   contractor on a contract for the transportation of school 
360.9   children only when and in the amount deemed necessary by and at 
360.10  the discretion of the school board.  Such a performance bond 
360.11  must be in the amount determined by the board. 
360.12     Sec. 78.  Minnesota Statutes 1996, section 123.38, 
360.13  subdivision 1, is amended to read: 
360.14     Subdivision 1.  [ACTIVITIES OUTSIDE DISTRICT LIMITS.] 
360.15  Whenever it shall appear appears to be beneficial and for the 
360.16  best interest of the district and the pupils of the district to 
360.17  carry on any school sport activities or educational activities 
360.18  connected with their studies outside of the territorial limits 
360.19  of the school district, the board may authorize such activities 
360.20  to be conducted under such rules and regulations as the board 
360.21  deems sufficient.  The district may pay all necessary costs 
360.22  therefor including transportation from the school district funds 
360.23  available. 
360.24     Sec. 79.  Minnesota Statutes 1996, section 123.38, 
360.25  subdivision 2, is amended to read: 
360.26     Subd. 2.  [COCURRICULAR ACTIVITIES AUTHORIZATION.] The 
360.27  board shall must take charge of and control all cocurricular 
360.28  school activities of the teachers and children of the public 
360.29  schools in that district held in the school building or school 
360.30  grounds or under the supervision or direction of the school 
360.31  board and to that end.  The board must adopt rules and 
360.32  regulations for the conduct of these cocurricular activities in 
360.33  which the schools of the district or any class or pupils therein 
360.34  may participate.  All money received on account of such 
360.35  activities shall must be turned over to the school district 
360.36  treasurer, who shall keep the same in the general fund, to be 
361.1   disbursed for expenses and salaries connected with the 
361.2   activities, or otherwise, by the board upon properly allowed 
361.3   itemized claims. 
361.4      No cocurricular activity shall be participated in by the 
361.5   Teachers or pupils in the public schools of such district must 
361.6   not participate in cocurricular activities, nor shall the school 
361.7   name or any allied name be used in connection therewith, except 
361.8   by consent and direction of the board.  
361.9      Sec. 80.  Minnesota Statutes 1996, section 123.38, 
361.10  subdivision 2a, is amended to read: 
361.11     Subd. 2a.  [COCURRICULAR ACTIVITIES.] Cocurricular 
361.12  activities shall mean means school sponsored and directed 
361.13  activities designed to provide opportunities for pupils to 
361.14  participate, on an individual or group basis, in school and 
361.15  public events for the improvement of skills.  Cocurricular 
361.16  activities are not offered for school credit, cannot be counted 
361.17  toward graduation and have one or more of the following 
361.18  characteristics: 
361.19     (a) They are conducted at regular and uniform times during 
361.20  school hours, or at times established by school authorities; 
361.21     (b) Although not offered for credit, they are directed or 
361.22  supervised by instructional staff in a learning environment 
361.23  similar to that found in courses offered for credit; 
361.24     (c) They are partially funded by public moneys for general 
361.25  instructional purposes under direction and control of the board. 
361.26     Sec. 81.  Minnesota Statutes 1996, section 123.38, 
361.27  subdivision 2b, is amended to read: 
361.28     Subd. 2b.  [BOARD CONTROL OF EXTRACURRICULAR ACTIVITIES.] 
361.29  (a) The board may take charge of and control all extracurricular 
361.30  activities of the teachers and children of the public schools in 
361.31  the district.  Extracurricular activities shall mean means all 
361.32  direct and personal services for public school pupils for their 
361.33  enjoyment that are managed and operated under the guidance of an 
361.34  adult or staff member.  
361.35     (b) Extracurricular activities have all of the following 
361.36  characteristics: 
362.1      (1) they are not offered for school credit nor required for 
362.2   graduation; 
362.3      (2) they are generally conducted outside school hours, or 
362.4   if partly during school hours, at times agreed by the 
362.5   participants, and approved by school authorities; 
362.6      (3) the content of the activities is determined primarily 
362.7   by the pupil participants under the guidance of a staff member 
362.8   or other adult. 
362.9      (c) If the board does not take charge of and control 
362.10  extracurricular activities, these activities shall be 
362.11  self-sustaining with all expenses, except direct salary costs 
362.12  and indirect costs of the use of school facilities, met by dues, 
362.13  admissions, or other student fundraising events.  The general 
362.14  fund shall must reflect only those salaries directly related to 
362.15  and readily identified with the activity and paid by public 
362.16  funds.  Other revenues and expenditures for extra curricular 
362.17  activities must be recorded according to the "Manual of 
362.18  Instruction for Uniform Student Activities Accounting for 
362.19  Minnesota School Districts and Area Vocational-Technical 
362.20  Colleges."  Extracurricular activities not under board control 
362.21  must have an annual financial audit and must also be audited 
362.22  annually for compliance with this section. 
362.23     (d) If the board takes charge of and controls 
362.24  extracurricular activities, any or all costs of these activities 
362.25  may be provided from school revenues and all revenues and 
362.26  expenditures for these activities shall be recorded in the same 
362.27  manner as other revenues and expenditures of the district.  
362.28     (e) If the board takes charge of and controls 
362.29  extracurricular activities, no such activity shall be 
362.30  participated in by the teachers or pupils in the district must 
362.31  not participate in such activity, nor shall the school name or 
362.32  any allied name be used in connection therewith, except by 
362.33  consent and direction of the board. 
362.34     Sec. 82.  Minnesota Statutes 1996, section 123.38, 
362.35  subdivision 3, is amended to read: 
362.36     Subd. 3.  [INSURANCE.] The board may enter into a contract 
363.1   providing for the payment of cash benefits or the rendering or 
363.2   payment of hospital and medical benefits, or both to school 
363.3   children injured while participating in activities of the 
363.4   school, such.  The contract to entered into by the board may 
363.5   make the payment of such benefits or the rendering thereof the 
363.6   direct and sole obligation of the association or company 
363.7   entering into such contract with the district. 
363.8      If the board deems it advisable, it may authorize employees 
363.9   to collect fees from the pupils enrolled in said school who are 
363.10  to be or are covered by such contract, and to make payment of 
363.11  the premium or other charge for such contract or protection.  
363.12  The payment of such premium or other charge may be made from 
363.13  funds received from the federal government or from the state or 
363.14  any governmental subdivision thereof, or from funds derived by a 
363.15  tax levy or the issuance of bonds. 
363.16     The child's payment of any fees, premium or other charge by 
363.17  such child shall not thereby make the district liable for any 
363.18  injuries incurred from such school activities. 
363.19     The state board of education may purchase medical insurance 
363.20  coverage for the benefit of students of the Minnesota state 
363.21  academy for the deaf or the Minnesota state academy for the 
363.22  blind in the same manner and with the same effect as a school 
363.23  district board may do for its students under this subdivision.  
363.24     Sec. 83.  Minnesota Statutes 1996, section 123.39, 
363.25  subdivision 1, is amended to read: 
363.26     Subdivision 1.  [AUTHORITY TO TRANSPORT PUPILS.] The board 
363.27  may provide for the transportation of pupils to and from school 
363.28  and for any other purpose.  The board may also provide for the 
363.29  transportation of pupils to schools in other districts for 
363.30  grades and departments not maintained in the district, including 
363.31  high school, at the expense of the district, when funds are 
363.32  available therefor and if agreeable to the district to which it 
363.33  is proposed to transport the pupils, for the whole or a part of 
363.34  the school year, as it may deem advisable, and subject to its 
363.35  rules.  In any school district, the board shall must arrange for 
363.36  the attendance of all pupils living two miles or more from the 
364.1   school, except pupils whose transportation privileges have been 
364.2   revoked under section 123.805, subdivision 1, clause (6), or 
364.3   123.7991, paragraph (b), through suitable provision.  The 
364.4   district may provide for the transportation of or through the 
364.5   boarding and rooming of the pupils who may be more economically 
364.6   and conveniently provided for by that means.  The board shall 
364.7   must provide transportation to and from the home of a child with 
364.8   a disability not yet enrolled in kindergarten when special 
364.9   instruction and services under sections 120.17 and 120.1701 are 
364.10  provided in a location other than in the child's home.  When 
364.11  transportation is provided, scheduling of routes, establishment 
364.12  of the location of bus stops, manner and method of 
364.13  transportation, control and discipline of school children and 
364.14  any other matter relating thereto shall must be within the sole 
364.15  discretion, control, and management of the school board.  The 
364.16  district may provide for the transportation of pupils or expend 
364.17  a reasonable amount for room and board of pupils whose 
364.18  attendance at school can more economically and conveniently be 
364.19  provided for by that means or who attend school in a building 
364.20  rented or leased by a district within the confines of an 
364.21  adjacent district.  
364.22     Sec. 84.  Minnesota Statutes 1996, section 123.39, 
364.23  subdivision 2, is amended to read: 
364.24     Subd. 2.  [TRANSPORTATION SERVICES CONTRACTS.] The board 
364.25  may contract for the furnishing of authorized transportation 
364.26  under rules established by the commissioner of children, 
364.27  families, and learning, and may purchase gasoline and furnish 
364.28  same to a contract carrier for use in the performance of a 
364.29  contract with the school district for transportation of school 
364.30  children to and from school. 
364.31     Sec. 85.  Minnesota Statutes 1996, section 123.39, 
364.32  subdivision 8, is amended to read: 
364.33     Subd. 8.  [AUTHORITY TO RENT BUSES.] The board may rent a 
364.34  bus owned by the school district excluding a motor-coach bus to 
364.35  any person for any lawful purpose.  Bus rental shall must not 
364.36  interfere with the transportation of pupils by the district.  A 
365.1   lessee may use and operate the bus without payment of a motor 
365.2   vehicle tax.  The lessee is liable for any claims for injuries 
365.3   and damages arising out of the use and operation of a bus leased 
365.4   from the district.  Except as provided in subdivision 9a, the 
365.5   lessee shall procure insurance at the lessee's expense 
365.6   protecting the board and the district against claims for 
365.7   injuries and damages arising out of the use and operation of the 
365.8   bus.  
365.9      Sec. 86.  Minnesota Statutes 1996, section 123.39, 
365.10  subdivision 8a, is amended to read: 
365.11     Subd. 8a.  [NONPUPIL TRANSPORTATION; INSURANCE.] 
365.12  Notwithstanding the provisions of section 221.021, any public 
365.13  school district or school bus contractor providing 
365.14  transportation services to a school district on a regular basis 
365.15  in this state may operate school buses, excluding motor coach 
365.16  buses, for the purpose of providing transportation to nonpupils 
365.17  of the school district attending school events, as defined in 
365.18  section 123.38, subdivision 2a or 2b, provided that no carrier 
365.19  having a charter carrier permit has its principal office and 
365.20  place of business or bus garage within 12 miles of the principal 
365.21  office of the school district.  School District owned buses and 
365.22  the operators thereof shall otherwise comply with the provisions 
365.23  of this section and the rules of the state board of education 
365.24  and shall be insured in at least the amounts stated in section 
365.25  466.04, subdivision 1.  In all cases the total cost of providing 
365.26  such services, as determined by sound accounting procedures, 
365.27  shall be paid by charges made against those using the buses.  
365.28     Sec. 87.  Minnesota Statutes 1996, section 123.39, 
365.29  subdivision 8b, is amended to read: 
365.30     Subd. 8b.  [TRANSPORTATION OF ANY PERSON.] School Districts 
365.31  may use school district owned or contractor operated school 
365.32  buses to provide transportation along regular school bus routes 
365.33  on a space available basis for any person, provided that this.  
365.34  Such use of a bus does must not interfere with the 
365.35  transportation of pupils to and from school or other authorized 
365.36  transportation of pupils.  In all cases, the total additional 
366.1   cost of providing these services, as determined by sound 
366.2   accounting procedures, shall must be paid by charges made 
366.3   against those using these services or some third-party payor.  
366.4   In no case shall the additional cost of this transportation be 
366.5   paid by the school district. 
366.6      The provisions of section 65B.47, subdivision 4, shall be 
366.7   applicable to any person being transported pursuant to this 
366.8   subdivision.  
366.9      Sec. 88.  Minnesota Statutes 1996, section 123.39, 
366.10  subdivision 8c, is amended to read: 
366.11     Subd. 8c.  [PART-TIME SECONDARY STUDENTS.] School Districts 
366.12  may provide bus transportation along regular school bus routes 
366.13  on a space available basis for part-time students enrolled in 
366.14  secondary classes pursuant to section 123.35, subdivisions 8a, 
366.15  8b and 8c, provided that this.  Such use of a bus does must not 
366.16  interfere with the transportation of pupils to and from school 
366.17  or other authorized transportation of pupils.  The total 
366.18  additional cost of providing these services, as determined by 
366.19  sound accounting procedures, shall be paid by charges made 
366.20  against those using the services or some third-party payor.  
366.21     Sec. 89.  Minnesota Statutes 1996, section 123.39, 
366.22  subdivision 8d, is amended to read: 
366.23     Subd. 8d.  [EARLY CHILDHOOD FAMILY EDUCATION PARTICIPANTS.] 
366.24  School Districts may provide bus transportation along regular 
366.25  school bus routes when space is available for participants in 
366.26  early childhood family education programs and learning readiness 
366.27  programs if these services do not result in an increase in the 
366.28  district's expenditures for transportation.  The costs allocated 
366.29  to these services, as determined by generally accepted 
366.30  accounting principles, shall be considered part of the 
366.31  authorized cost for regular transportation for the purposes of 
366.32  section 124.225.  
366.33     Sec. 90.  Minnesota Statutes 1996, section 123.39, 
366.34  subdivision 8e, is amended to read: 
366.35     Subd. 8e.  [AREA LEARNING CENTER PUPILS.] School Districts 
366.36  may provide bus transportation along school bus routes 
367.1   established to provide nonregular transportation as defined in 
367.2   section 124.225, subdivision 1, paragraph (e)(2)(ii), when space 
367.3   is available, for pupils attending programs at an area learning 
367.4   center.  The transportation is only permitted between schools 
367.5   and if it does not increase the district's expenditures for 
367.6   transportation.  The cost of these services shall be considered 
367.7   part of the authorized cost for nonregular transportation for 
367.8   the purpose of section 124.225. 
367.9      Sec. 91.  Minnesota Statutes 1996, section 123.39, 
367.10  subdivision 9a, is amended to read: 
367.11     Subd. 9a.  [INSURANCE; INDEMNITY.] If a school board has 
367.12  obtained insurance pursuant to subdivision 9 or section 466.06, 
367.13  it may also obtain and pay for insurance coverage to indemnify a 
367.14  lessee and to protect the board and the district, in any amount 
367.15  not exceeding the limits of coverage provided for the insurance 
367.16  obtained pursuant to subdivision 9 or section 466.06 against 
367.17  claims for injuries and damages arising out of the use and 
367.18  operation of a district-owned bus while it is leased or rented 
367.19  to the lessee pursuant to subdivision 8.  The rental charge 
367.20  shall include the cost of this additional insurance coverage.  
367.21  The procurement of this additional insurance coverage 
367.22  constitutes a waiver of the defense of governmental immunity to 
367.23  the extent of the additional coverage but has no effect on the 
367.24  liability of the board, the school district, or its employees 
367.25  beyond the coverage so provided. 
367.26     Sec. 92.  Minnesota Statutes 1996, section 123.39, 
367.27  subdivision 11, is amended to read: 
367.28     Subd. 11.  [INSURANCE; SCHOOL SAFETY PATROL.] The board may 
367.29  provide and pay the premiums for insurance against injuries 
367.30  resulting to its pupils while assigned to and acting on a school 
367.31  safety patrol, which.  Such insurance may provide for the 
367.32  payment of either cash benefits to such injured pupil or for the 
367.33  payment of hospital and medical benefits to or for such injured 
367.34  pupil, or both.  Nothing herein shall be construed to in any way 
367.35  make the district liable for such injuries.  
367.36     Sec. 93.  Minnesota Statutes 1996, section 123.39, 
368.1   subdivision 12, is amended to read: 
368.2      Subd. 12.  [SNOW REMOVAL.] The board may enter into 
368.3   contracts for the removal of snow from roads used for regular 
368.4   bus routes transporting pupils to and from school either within 
368.5   or without outside the district. 
368.6      Sec. 94.  Minnesota Statutes 1996, section 123.39, 
368.7   subdivision 13, is amended to read: 
368.8      Subd. 13.  [HANDICAPPED PERSON TRANSPORT TO DEVELOPMENTAL 
368.9   ACHIEVEMENT CENTER.] The board shall must contract with any 
368.10  licensed developmental achievement center attended by a resident 
368.11  handicapped person who fulfills the eligibility requirements of 
368.12  section 252.23, subdivision 1, to transport the resident 
368.13  handicapped person to the developmental achievement center in 
368.14  return for payment by the center of the cost of the 
368.15  transportation, if transportation by the board is in the best 
368.16  interest of the handicapped person and is not unreasonably 
368.17  burdensome to the district and if a less expensive, reasonable, 
368.18  alternative means of transporting the handicapped person does 
368.19  not exist.  If the board and the developmental achievement 
368.20  center are unable to agree to a contract, either the board or 
368.21  the center may appeal to the commissioner of children, families, 
368.22  and learning to resolve the conflict.  All decisions of the 
368.23  commissioner shall be final and binding upon the board and the 
368.24  center. 
368.25     Sec. 95.  Minnesota Statutes 1996, section 123.39, 
368.26  subdivision 14, is amended to read: 
368.27     Subd. 14.  [CUSTODIAL PARENT TRANSPORTATION.] The board may 
368.28  provide transportation for a pupil who is a custodial parent and 
368.29  that pupil's child between the pupil's home and a child care 
368.30  provider and between the provider and the school.  The 
368.31  board shall must establish criteria for transportation it 
368.32  provides according to this subdivision.  
368.33     Sec. 96.  Minnesota Statutes 1996, section 123.39, 
368.34  subdivision 15, is amended to read: 
368.35     Subd. 15.  [PUPIL TRANSPORT ON STAFF DEVELOPMENT DAYS.] A 
368.36  school district may provide bus transportation between home and 
369.1   school for pupils on days devoted to parent-teacher conferences, 
369.2   teacher's workshops, or other staff development opportunities.  
369.3   If approved by the commissioner as part of a program of 
369.4   educational improvement, the cost of providing this 
369.5   transportation, as determined by generally accepted accounting 
369.6   principles, must be considered part of the authorized cost for 
369.7   regular transportation for the purposes of section 124.225.  The 
369.8   commissioner shall approve inclusion of these costs in the 
369.9   regular transportation category only if the total number of 
369.10  instructional hours in the school year divided by the total 
369.11  number of days for which transportation is provided equals or 
369.12  exceeds the number of instructional hours per day prescribed in 
369.13  the rules of the state board. 
369.14     Sec. 97.  Minnesota Statutes 1996, section 123.39, 
369.15  subdivision 16, is amended to read: 
369.16     Subd. 16.  [POST-SECONDARY ENROLLMENT OPTIONS PUPILS.] 
369.17  School Districts may provide bus transportation along school bus 
369.18  routes established to provide nonregular transportation as 
369.19  defined in section 124.225, subdivision 1, paragraph (c), clause 
369.20  (2), when space is available, for pupils attending programs at a 
369.21  post-secondary institution under the post-secondary enrollment 
369.22  options program.  The transportation is permitted only if it 
369.23  does not increase the district's expenditures for 
369.24  transportation.  Fees collected for this service under section 
369.25  120.73, subdivision 1, paragraph (m), shall be subtracted from 
369.26  the authorized cost for nonregular transportation for the 
369.27  purpose of section 124.225. 
369.28     Sec. 98.  Minnesota Statutes 1996, section 123.40, 
369.29  subdivision 1, is amended to read: 
369.30     Subdivision 1.  [PAYMENT OF JUST CLAIMS.] The board shall 
369.31  must provide for the payment of all just claims against the 
369.32  district in cases provided by law.  
369.33     Sec. 99.  Minnesota Statutes 1996, section 123.40, 
369.34  subdivision 2, is amended to read: 
369.35     Subd. 2.  [PROSECUTE AND DEFEND ACTIONS.] In all proper 
369.36  cases, the board shall must prosecute and defend actions by or 
370.1   against the district. 
370.2      Sec. 100.  Minnesota Statutes 1996, section 123.40, 
370.3   subdivision 8, is amended to read: 
370.4      Subd. 8.  [REMOVAL OF UNAUTHORIZED VEHICLES.] The board may 
370.5   authorize a representative to move unauthorized vehicles parked 
370.6   on school district property, or require the driver or other 
370.7   person in charge of the vehicle to move the same off school 
370.8   district property.  
370.9      When such representative finds such a vehicle unattended 
370.10  upon school district premises, such representative is hereby 
370.11  authorized to provide for the removal of such vehicle and remove 
370.12  the same to the nearest convenient garage or other place of 
370.13  safety off of school district property.  Such vehicle shall be 
370.14  moved at the expense of the owner or operator. 
370.15     Sec. 101.  Minnesota Statutes 1996, section 123.41, is 
370.16  amended to read: 
370.17     123.41 [LIABILITY INSURANCE,; OFFICERS AND EMPLOYEES.] 
370.18     The governing body of any independent school district may 
370.19  procure insurance against liability of the school district or of 
370.20  its officers and employees for damages resulting from wrongful 
370.21  acts and omissions of the school district and its officers and 
370.22  employees, whether the acts or omissions relate to governmental 
370.23  or proprietary functions of the school district.  Insofar as 
370.24  this insurance relates to governmental functions of the school 
370.25  district, the policy of insurance shall contain a provision 
370.26  under which requiring the insurance company agrees to waive the 
370.27  defense of governmental immunity up to the limits of the policy 
370.28  unless the school district consents to the assertion of that 
370.29  defense.  
370.30     Sec. 102.  Minnesota Statutes 1996, section 123.63, is 
370.31  amended to read: 
370.32     123.63 [EMINENT DOMAIN.] 
370.33     In any municipal corporation or district in this state 
370.34  where the governing body or board has the right, power, and 
370.35  authority to purchase sites for school buildings without 
370.36  authorization by the voters at a regular or special meeting or 
371.1   election called for that purpose, such governing body or school 
371.2   board shall have the right, power, and authority to condemn 
371.3   lands under the right of eminent domain for sites and grounds 
371.4   for public school buildings and.  The governing body or board 
371.5   shall exercise such power and authority shall be exercised under 
371.6   and pursuant to the terms and provisions of chapter 117.  Any 
371.7   such corporation or school district shall have the right, upon 
371.8   the filing of the award of the commissioners provided for in 
371.9   chapter 117, and upon giving the notice therein required of the 
371.10  filing of such award, to enter upon and appropriate the lands so 
371.11  condemned without giving of any bond, but.  In case of such 
371.12  entry and appropriation, such corporation or school district 
371.13  shall be bound absolutely to pay all damages awarded, either by 
371.14  the commissioners or by the court upon appeal therefrom, 
371.15  together with all costs and expenses adjudged against it therein 
371.16  within the time specified in chapter 117.  In case any such 
371.17  corporation or school district shall appeal from the award of 
371.18  commissioners appointed pursuant to any such condemnation 
371.19  proceedings, such corporation or school district shall not be 
371.20  required to give or file any appeal bond therein.  
371.21     Sec. 103.  Minnesota Statutes 1996, section 123.64, is 
371.22  amended to read: 
371.23     123.64 [AGRICULTURAL EDUCATION.] 
371.24     The board of In any district in which instruction in 
371.25  agriculture is afforded, the board is authorized and empowered 
371.26  to purchase or otherwise acquire by condemnation proceedings as 
371.27  provided for acquiring schoolhouse sites in the name and in 
371.28  behalf of such district, a suitable tract of land either within 
371.29  or without outside of the limits of such district to be used for 
371.30  the purpose of instruction, experimentation, and demonstration 
371.31  in agriculture.  The provisions of this section shall apply as 
371.32  well to districts organized under special acts as under the 
371.33  general laws, notwithstanding any provisions or restrictions in 
371.34  the laws under which the same districts are organized.  
371.35     Sec. 104.  Minnesota Statutes 1996, section 123.66, is 
371.36  amended to read: 
372.1      123.66 [RECORDS AS EVIDENCE.] 
372.2      The records of all districts and boards and all transcripts 
372.3   thereof, or any part thereof, certified by the clerk or other 
372.4   officer having custody thereof of the records or transcripts, 
372.5   shall be prima facie evidence of the facts therein stated and in 
372.6   the records or transcripts.  All records, books, and papers of 
372.7   such the district or board shall be subject to the inspection of 
372.8   any voter of the district. 
372.9      Sec. 105.  Minnesota Statutes 1996, section 123.681, is 
372.10  amended to read: 
372.11     123.681 [SALE AT AUCTION.] 
372.12     Notwithstanding sections 123.37, subdivision 1, 471.345 or 
372.13  any other law, the board of a school district or of a 
372.14  cooperative center for vocational education may, in lieu of 
372.15  advertising for bids, sell at public auction to the highest 
372.16  responsible bidder a building constructed or to be constructed 
372.17  by a secondary or post-secondary school student or class as a 
372.18  school assignment.  A board shall publish notice of a sale at 
372.19  least two weeks before the sale in the official newspaper of the 
372.20  district, or in the case of a cooperative center, in the 
372.21  official newspapers of each of the member districts, and may, at 
372.22  its discretion, publish additional notice in the official paper 
372.23  or elsewhere.  A building may be withdrawn from sale prior to 
372.24  the completion of the sale unless the auction has been announced 
372.25  to be without reserve.  If the sale is made at public auction, a 
372.26  duly licensed auctioneer shall must be retained to conduct the 
372.27  sale.  The auctioneer shall be paid from the proceeds of the 
372.28  sale or from any funds available to the board which are not 
372.29  otherwise restricted or encumbered. 
372.30     Sec. 106.  Minnesota Statutes 1996, section 123.71, is 
372.31  amended to read: 
372.32     123.71 [PUBLICATION OF FINANCIAL INFORMATION.] 
372.33     Subdivision 1.  [BUDGETS.] By October 1, every school board 
372.34  shall, no later than October 1, must publish revenue and 
372.35  expenditure budgets for the current year and the actual 
372.36  revenues, expenditures, fund balances for the prior year and 
373.1   projected fund balances for the current year in a form 
373.2   prescribed by the commissioner.  The forms prescribed shall must 
373.3   be designed so that year to year comparisons of revenue, 
373.4   expenditures and fund balances can be made.  These budgets, 
373.5   reports of revenue, expenditures and fund balances shall must be 
373.6   published in a qualified newspaper of general circulation in the 
373.7   district. 
373.8      Subd. 2.  [DEBT SUMMARY.] It shall The board must also 
373.9   publish at the same time a summary of bonds outstanding, paid, 
373.10  and sold; a summary of orders not paid for want of funds; 
373.11  certificates of indebtedness for the year ending June 30; the 
373.12  statutory operating debt of the district as defined and 
373.13  certified pursuant to section 121.914; and the balance amount of 
373.14  the reserved fund balance reserve account for purposes of 
373.15  statutory operating debt reduction established pursuant to 
373.16  sections 124.226, 124.2716, 124.91, 124.912, 124.914, 124.916, 
373.17  and 124.918.  
373.18     Subd. 3.  [BUDGET INSPECTION.] A statement shall must be 
373.19  included in the publication that the complete budget in detail 
373.20  may be inspected by any resident of the district upon request to 
373.21  the chief school administrator. 
373.22     Subd. 4.  [COST PER PUPIL.] It shall The board must also 
373.23  publish at the same time the average cost per pupil in average 
373.24  daily membership educated in that district in the preceding 
373.25  year.  This computation shall must be made exclusive of debt 
373.26  service or capital outlay costs. 
373.27     Sec. 107.  Minnesota Statutes 1996, section 123.72, is 
373.28  amended to read: 
373.29     123.72 [MEDICAL INSURANCE PREMIUMS FOR RETIRED.] 
373.30     The school board of any independent school district may 
373.31  expend funds to pay premiums on hospitalization and major 
373.32  medical insurance coverage for officers and employees who retire 
373.33  prior to age 65.  
373.34     Sec. 108.  Minnesota Statutes 1996, section 123.75, 
373.35  subdivision 2, is amended to read: 
373.36     Subd. 2.  [AUTHORITY.] Each school district may develop a 
374.1   fingerprinting program for pupils and children who reside in the 
374.2   district.  The principal or chief administrative officer of a 
374.3   nonpublic school may develop a fingerprinting program for pupils 
374.4   of the school.  If developed, the program must be developed in 
374.5   conjunction with law enforcement agencies having jurisdiction 
374.6   within the school district or the place where the nonpublic 
374.7   school is located.  The law enforcement agencies must cooperate 
374.8   fully with the school district or the nonpublic school in the 
374.9   development of its fingerprinting program. 
374.10     Sec. 109.  Minnesota Statutes 1996, section 123.75, 
374.11  subdivision 3, is amended to read: 
374.12     Subd. 3.  [LIMITATIONS AND PROCEDURES.] If developed, the 
374.13  fingerprinting program may be developed only for the purpose of 
374.14  assisting in the location and identification of missing 
374.15  children, and must be operated according to the following 
374.16  procedures: 
374.17     (a) No child may be required to participate in the program. 
374.18     (b) Before a child may participate in the program, the 
374.19  child's parents, guardian, legal custodian, or other person 
374.20  responsible for the child must authorize the child's 
374.21  participation by signing a form developed by the school district 
374.22  or the principal or chief administrative officer of the 
374.23  nonpublic school. 
374.24     (c) Fingerprinting of children must be done by law 
374.25  enforcement personnel on fingerprint cards provided to the 
374.26  school district or nonpublic school by the commissioner of 
374.27  public safety or on fingerprint cards acquired elsewhere. 
374.28     (d) The school must give the fingerprint card to the 
374.29  child's parents, guardian, legal custodian, or other person 
374.30  responsible for the child.  No copy of the fingerprint card may 
374.31  be retained by the law enforcement agency, school, or school 
374.32  district. 
374.33     (e) The child's name, sex, hair and eye color, height, 
374.34  weight, and date and place of birth must be written on the 
374.35  fingerprint card. 
374.36     School Districts and nonpublic schools that develop 
375.1   fingerprinting programs under this section shall offer them on a 
375.2   periodic basis, and shall notify parents, guardians, legal 
375.3   custodians, and residents of the district or communities served 
375.4   by the school of the program and its purpose.  Notification may 
375.5   be made by means of memoranda, letters, newspaper articles, or 
375.6   other reasonable means. 
375.7      Sec. 110.  Minnesota Statutes 1996, section 123.75, 
375.8   subdivision 5, is amended to read: 
375.9      Subd. 5.  [OTHER FINGERPRINTING PROGRAMS UNAFFECTED.] This 
375.10  section does not apply to fingerprinting programs for children 
375.11  that are provided by private organizations other than nonpublic 
375.12  schools, or governmental entities other than school districts. 
375.13     Sec. 111.  Minnesota Statutes 1996, section 123.751, 
375.14  subdivision 1, is amended to read: 
375.15     Subdivision 1.  [FLAG RECORD UPON CERTAIN NOTIFICATION.] 
375.16  A school district shall must flag the record of a pupil who is 
375.17  currently or was previously enrolled in the district if a law 
375.18  enforcement agency notifies the district of the pupil's 
375.19  disappearance.  The flag must be made so that, if a copy of or 
375.20  information regarding the pupil's record is requested, the 
375.21  district is aware that the record is that of a missing pupil. 
375.22     Sec. 112.  Minnesota Statutes 1996, section 123.751, 
375.23  subdivision 2, is amended to read: 
375.24     Subd. 2.  [DISTRICT NOTIFICATION WHEN RECORDS ARE 
375.25  REQUESTED.] When the district provides a copy of the pupil's 
375.26  record or other information concerning the pupil whose record is 
375.27  flagged, the district shall must notify the law enforcement 
375.28  agency that notified the district of the pupil's disappearance 
375.29  of every inquiry concerning the record.  The district shall must 
375.30  also provide a copy to the law enforcement agency of a written 
375.31  request for information concerning the record. 
375.32     Sec. 113.  Minnesota Statutes 1996, section 123.751, 
375.33  subdivision 3, is amended to read: 
375.34     Subd. 3.  [RECORDS UPON SCHOOL DISTRICT TRANSFER.] When a 
375.35  pupil transfers from one district to another, the receiving 
375.36  district shall attempt to obtain, within 30 days of the pupil's 
376.1   enrollment, the pupil's record from the district from which the 
376.2   pupil has transferred.  If the pupil's parent, custodian, or 
376.3   guardian provides a copy of the pupil's record from the district 
376.4   from which the pupil has transferred, the receiving district 
376.5   shall must request, within 30 days of the pupil's enrollment, 
376.6   written verification of the pupil's record by contacting the 
376.7   district named on the transferring pupil's record.  Information 
376.8   received by a school district indicating that the transferring 
376.9   pupil is a missing child must be reported by the district to the 
376.10  department of public safety. 
376.11     Sec. 114.  Minnesota Statutes 1996, section 124.06, is 
376.12  amended to read: 
376.13     124.06 [INSUFFICIENT FUNDS TO PAY ORDERS.] 
376.14     (a) In the event that a district or a cooperative unit 
376.15  defined in section 123.35, subdivision 19b, has insufficient 
376.16  funds to pay its usual lawful current obligations, subject to 
376.17  section 471.69, the board may enter into agreements with banks 
376.18  or any person to take its orders.  Any order drawn, after having 
376.19  been presented to the treasurer for payment and not paid for 
376.20  want of funds shall be endorsed by the treasurer by putting on 
376.21  the back thereof the words "not paid for want of funds," giving 
376.22  the date of endorsement and signed by the treasurer.  A record 
376.23  of such presentment, nonpayment and endorsement shall be made by 
376.24  the treasurer.  The treasurer shall serve a written notice upon 
376.25  the payee or the payee's assignee, personally, or by mail, when 
376.26  the treasurer is prepared to pay such orders; such.  The notice 
376.27  may be directed to the payee or the payee's assignee at the 
376.28  address given in writing by such payee or assignee to such 
376.29  treasurer, at any time prior to the service of such notice.  No 
376.30  order shall draw any interest if such address is not given when 
376.31  the same is unknown to the treasurer, and no order shall draw 
376.32  any interest after the service of such notice.  
376.33     (b) A district may enter, subject to section 471.69, into a 
376.34  line of credit agreement with a financial institution.  The 
376.35  amount of credit available must not exceed 95 percent of average 
376.36  expenditure per month of operating expenditures in the previous 
377.1   fiscal year.  Any amount advanced must be repaid no later than 
377.2   45 days after the day of advancement. 
377.3      Sec. 115.  Minnesota Statutes 1996, section 124.07, 
377.4   subdivision 2, is amended to read: 
377.5      Subd. 2.  [TITLE TO BE HELD BY DISTRICT.] The district must 
377.6   hold title to lands or interests so acquired shall be held by 
377.7   the district.  The district must sell each tract or portion 
377.8   shall be sold by the district as soon as there may be realized 
377.9   the fair value as determined by such board.  Any such sale may 
377.10  be authorized by resolution of the board, and may be made for 
377.11  cash, or for part cash and the deferred balance secured by 
377.12  contract for deed or purchase money mortgage, on such terms as 
377.13  the board approves.  Conveyances, contracts, or other 
377.14  instruments evidencing any sale shall be executed by the chair 
377.15  and the clerk of the board.  Lands so acquired and held for 
377.16  resale shall be deemed public lands used for exclusively public 
377.17  purposes and as such shall be exempt from taxation.  
377.18     Sec. 116.  Minnesota Statutes 1996, section 124.63, is 
377.19  amended to read: 
377.20     124.63 [NATIONAL FOREST LAND FUNDS, HANDLING AND 
377.21  DISPOSITION.] 
377.22     Any A county board may place the money, or any part 
377.23  thereof, received by such county from the federal government for 
377.24  and on account of any national forest lands situated therein in 
377.25  the county into a special fund to be disbursed and paid over to 
377.26  any district now or hereafter maintaining and operating any 
377.27  school wholly or partly within an area now or hereafter 
377.28  constituting a part of any auxiliary or state forest.  Such 
377.29  action shall be taken by The board by must adopt a resolution 
377.30  duly adopted by it, which to take such action.  The resolution 
377.31  shall must specify the terms and conditions under which this the 
377.32  money shall be so paid over and disbursed to any district.  
377.33     Sec. 117.  Minnesota Statutes 1996, section 126.12, is 
377.34  amended to read: 
377.35     126.12 [SCHOOL CALENDAR.] 
377.36     Subdivision 1.  Except for learning programs during summer, 
378.1   flexible learning year programs authorized under sections 120.59 
378.2   to 120.67, and learning year programs under section 121.585, a 
378.3   school district shall must not commence an elementary or 
378.4   secondary school year prior to Labor Day.  Days which are 
378.5   devoted to teachers' workshops may be held before Labor Day.  
378.6   Districts that enter into cooperative agreements are encouraged 
378.7   to adopt similar school calendars. 
378.8      Sec. 118.  Minnesota Statutes 1996, section 126.13, is 
378.9   amended to read: 
378.10     126.13 [CONDUCT OF SCHOOL ON CERTAIN HOLIDAYS.] 
378.11     The governing body of any district may contract with any of 
378.12  the teachers thereof of the district for the conduct of schools, 
378.13  and may conduct schools, on either, or any, of the following 
378.14  holidays, provided that a clause to this effect is inserted in 
378.15  the teacher's contract:  Martin Luther King's birthday, 
378.16  Lincoln's and Washington's birthdays, Columbus Day and Veterans' 
378.17  Day, provided that.  On Martin Luther King's birthday, 
378.18  Washington's birthday, Lincoln's birthday, and Veterans' Day at 
378.19  least one hour of the school program must be devoted to a 
378.20  patriotic observance of the day.  
378.21     Sec. 119.  Minnesota Statutes 1996, section 126.69, 
378.22  subdivision 1, is amended to read: 
378.23     Subdivision 1.  [PROGRAM GOALS.] The department of 
378.24  children, families, and learning, in consultation with the state 
378.25  curriculum advisory committee, must develop guidelines and model 
378.26  plans for parental involvement programs that will: 
378.27     (1) engage the interests and talents of parents or 
378.28  guardians in recognizing and meeting the emotional, 
378.29  intellectual, and physical needs of their school-age children; 
378.30     (2) promote healthy self-concepts among parents or 
378.31  guardians and other family members; 
378.32     (3) offer parents or guardians a chance to share and learn 
378.33  about educational skills, techniques, and ideas; 
378.34     (4) provide creative learning experiences for parents or 
378.35  guardians and their school-age children, including involvement 
378.36  from parents or guardians of color; 
379.1      (5) encourage parents to actively participate in their 
379.2   district's curriculum advisory committee under section 126.666 
379.3   in order to assist the school board in improving children's 
379.4   education programs; and 
379.5      (6) encourage parents to help in promoting school 
379.6   desegregation/integration. 
379.7      Sec. 120.  Minnesota Statutes 1996, section 127.02, is 
379.8   amended to read: 
379.9      127.02 [ACTIONS BY DISTRICTS.] 
379.10     Any school board may prosecute actions in the name of the 
379.11  district in the following cases: 
379.12     (1) On a contract made with the district, or with the board 
379.13  in its official capacity; 
379.14     (2) To enforce a liability, or a duty enjoined by law, in 
379.15  its favor or in favor of the district; 
379.16     (3) To recover a penalty or forfeiture given by law to it 
379.17  or to the district; or 
379.18     (4) To recover damages for an injury to the rights or 
379.19  property of the district.  
379.20     Sec. 121.  Minnesota Statutes 1996, section 127.03, is 
379.21  amended to read: 
379.22     127.03 [ACTIONS AGAINST DISTRICTS AND TEACHERS.] 
379.23     Subdivision 1. (a) An action may be brought against any 
379.24  school district, either upon a contract made with the district 
379.25  or its board, in its official capacity and within the scope of 
379.26  its authority, or for an injury to the rights of the plaintiff 
379.27  arising from some act or omission of such board, whether.  The 
379.28  action may be brought against the district even if the members 
379.29  of the board making the contract, or guilty of the act or 
379.30  omission complained of, be still are no longer in office or not. 
379.31     Subd. 2. (b) Upon written request of the teacher involved, 
379.32  any school district, however organized, shall must provide legal 
379.33  counsel for any school teacher against whom claim is made or 
379.34  action is brought for recovery of damages in any tort action 
379.35  involving physical injury to any person or property or for 
379.36  wrongful death arising out of or in connection with the 
380.1   employment of such teacher with such school the district.  The 
380.2   choice of such legal counsel shall be made only after 
380.3   consultation with the teacher.  Provision of counsel under 
380.4   this subdivision paragraph shall not be construed to render 
380.5   the school district liable for its torts, except as otherwise 
380.6   provided by law; or for reimbursement of costs of counsel 
380.7   provided to the teacher pursuant to the contract obligation of 
380.8   another or otherwise than under this subdivision paragraph; or 
380.9   for payment of any judgments or any other costs or disbursements 
380.10  in connection therewith with a judgment where the judgment, cost 
380.11  or disbursement is against the teacher and not against the 
380.12  school district. 
380.13     Subd. 3.  [IMMUNITY FROM CIVIL LIABILITY.] (c) It is a 
380.14  defense to a civil action for damages against a school official, 
380.15  as defined in section 609.2231, subdivision 5, to prove that the 
380.16  force used by the official was reasonable, was in the exercise 
380.17  of lawful authority, and was necessary under the circumstances 
380.18  to restrain the pupil or to prevent bodily harm or death to 
380.19  another. 
380.20     Sec. 122.  Minnesota Statutes 1996, section 127.04, is 
380.21  amended to read: 
380.22     127.04 [JUDGMENT PAID BY TREASURER.] 
380.23     Except as hereinafter provided in this section, no 
380.24  execution shall issue upon any judgment against a school 
380.25  district for the recovery of money.  Unless the same be judgment 
380.26  is stayed by appeal, the treasurer shall pay such judgment, upon 
380.27  presentation of a certified copy thereof of the judgment, 
380.28  if there is the district has sufficient money of the district 
380.29  not otherwise appropriated.  A treasurer who fails to do so pay 
380.30  the judgment shall be personally liable for the amount, unless 
380.31  the collection be afterwards is stayed afterwards.  
380.32     Sec. 123.  [REPEALER.] 
380.33     Minnesota Statutes 1996, section 123.35, subdivision 10, is 
380.34  repealed. 
380.35     Sec. 124.  [INSTRUCTION TO REVISOR.] 
380.36     The revisor of statutes shall renumber each section of 
381.1   Minnesota Statutes listed in column A with the number listed in 
381.2   column B.  The revisor shall also make necessary cross-reference 
381.3   changes consistent with the renumbering. 
381.4         Column A                        Column B 
381.5        123.01                         123A.01
381.6        123.66                         123A.02
381.7        123.11                         123A.03
381.8        123.12, subd. 1                123A.04, subd. 1
381.9                subd. 2                         subd. 2
381.10               subd. 9                         subd. 3
381.11               subd. 14                        subd. 4
381.12       123.13, subd. 2                123A.05
381.13       123.15                         123A.06
381.14       123.21                         123A.07
381.15       123.33, subd. 1                123A.08, subd. 1
381.16               subd. 2                         subd. 2
381.17               subd. 2a                        subd. 3
381.18               subd. 3                         subd. 4
381.19               subd. 4                         subd. 5
381.20               subd. 5                         subd. 6
381.21               subd. 6                         subd. 7
381.22               subd. 7                         subd. 8
381.23               subd. 8                         subd. 9
381.24               subd. 11                        subd. 10
381.25               subd. 11a                       subd. 11
381.26               subd. 12                        subd. 12
381.27       123.71                         123A.09
381.28       123.335                        123A.10
381.29       124.06                         123A.11
381.30       124.07                         123A.12
381.31       123.34, subd. 1                123A.13, subd. 1
381.32               subd. 2                         subd. 2
381.33               subd. 3                         subd. 3
381.34               subd. 4                         subd. 4
381.35               subd. 5                         subd. 5
381.36               subd. 7                         subd. 6
382.1                subd. 8                         subd. 7
382.2                subd. 9                         subd. 8
382.3                subd. 9a                        subd. 9
382.4                subd. 10                        subd. 10
382.5        127.08                         123A.14
382.6        127.09                         123A.15
382.7        127.10                         123A.16
382.8        127.11                         123A.17
382.9        127.12                         123A.18
382.10       127.13                         123A.19
382.11       127.15                         123A.20
382.12       127.16                         123A.21
382.13       127.21                         123A.22
382.14       127.23                         123A.23
382.15       123.35, subd. 1                123A.24, subd. 1
382.16               subd. 2                         subd. 2
382.17               subd. 3                         subd. 6
382.18               subd. 4                         subd. 7
382.19               subd. 6                         subd. 13
382.20               subd. 7                         subd. 8
382.21               subd. 9a                        subd. 9
382.22               subd. 9b                        subd. 10
382.23               subd. 11                        subd. 12
382.24               subd. 12                        subd. 14
382.25               subd. 15                        subd. 17
382.26               subd. 18                        subd. 11
382.27               subd. 19c                       subd. 3
382.28               subd. 20                        subd. 19
382.29       123.72                         123A.24, subd. 15
382.30       123.40, subd. 1                123A.24, subd. 16
382.31               subd. 2                         subd. 18
382.32               subd. 3                         subd. 5
382.33               subd. 8                         subd. 4
382.34       123.41                         123A.25
382.35       120.1045, subd. 1              123A.26, subd. 1
382.36                 subd. 2                       subd. 2
383.1                  subd. 4                       subd. 3
383.2        123.36, subd. 1                123A.27, subd. 1
383.3                subd. 5                         subd. 2
383.4                subd. 7                         subd. 3
383.5                subd. 10                        subd. 4
383.6                subd. 11                        subd. 5
383.7                subd. 13                        subd. 6
383.8                subd. 14                        subd. 7
383.9                subd. 15                        subd. 8
383.10       123.37, subd. 1                123A.28, subd. 1
383.11               subd. 1a                        subd. 2
383.12               subd. 1b                        subd. 3
383.13               subd. 2                         subd. 4
383.14       123.681                        123A.29
383.15       123.38, subd. 1                123A.31, subd. 1
383.16               subd. 2                         subd. 2
383.17               subd. 2a                        subd. 3
383.18               subd. 2b                        subd. 4
383.19               subd. 3                         subd. 5
383.20               subd. 4                         subd. 6
383.21       123.39, subd. 1                123A.33, subd. 1
383.22               subd. 2                         subd. 2
383.23               subd. 4                         subd. 3
383.24               subd. 5                         subd. 4
383.25               subd. 6                         subd. 5
383.26               subd. 7                         subd. 6
383.27               subd. 8                         subd. 7
383.28               subd. 8a                        subd. 8
383.29               subd. 8b                        subd. 9
383.30               subd. 8c                        subd. 10
383.31               subd. 8d                        subd. 11
383.32               subd. 8e                        subd. 12
383.33               subd. 9                         subd. 13
383.34               subd. 9a                        subd. 14
383.35               subd. 10                        subd. 15
383.36               subd. 11                        subd. 16
384.1                subd. 12                        subd. 17
384.2                subd. 13                        subd. 18
384.3                subd. 14                        subd. 19
384.4                subd. 15                        subd. 20
384.5                subd. 16                        subd. 21
384.6        127.02                         123A.35
384.7        127.03                         123A.36
384.8        127.04                         123A.37
384.9        127.06                         123A.38
384.10       126.12                         123A.41
384.11       120.1015                       123A.42
384.12       126.13                         123A.43
384.13       120.59                         123A.45
384.14       120.60                         123A.46
384.15       120.61                         123A.47
384.16       120.62                         123A.48
384.17       120.63                         123A.49
384.18       120.64                         123A.50
384.19       120.66                         123A.51
384.20       120.67                         123A.52
384.21       121.585, subd. 1               123A.53, subd. 1
384.22                subd. 2                        subd. 2
384.23                subd. 4                        subd. 3
384.24                subd. 5                        subd. 4
384.25                subd. 6                        subd. 5
384.26                subd. 7                        subd. 6
384.27                subd. 8                        subd. 7
384.28       123.951                        123A.55
384.29       124C.77                        123A.57
384.30       126.69                         123A.60
384.31       126.699                        123A.61
384.32       123.97                         123A.63
384.33       123.972                        123A.64
384.34       123.51                         123A.70
384.35       123.62                         123A.72
384.36       123.63                         123A.73
385.1        123.64                         123A.74
385.2        124.63                         123A.75
385.3        123.75                         123A.80
385.4        123.751                        123A.81
385.5        121.904, subd. 1               123A.85, subd. 1
385.6                 subd. 2                        subd. 2
385.7                 subd. 3                        subd. 3
385.8                 subd. 4                        subd. 4
385.9                 subd. 4a                       subd. 5
385.10                subd. 4c                       subd. 6
385.11                subd. 11                       subd. 7
385.12                subd. 12                       subd. 8
385.13                subd. 13                       subd. 9
385.14                subd. 14                       subd. 10
385.15       121.906                        123A.86 
385.16       121.908, subd. 1               123A.87, subd. 1
385.17                subd. 2                        subd. 2
385.18                subd. 3                        subd. 3
385.19                subd. 3a                       subd. 4
385.20                subd. 5                        subd. 5
385.21                subd. 6                        subd. 6
385.22       121.911                        123A.90
385.23       121.912, subd. 1               123A.91, subd. 1
385.24                subd. 1a                       subd. 2
385.25                subd. 1b                       subd. 3
385.26                subd. 2                        subd. 4
385.27                subd. 3                        subd. 5
385.28                subd. 4                        subd. 6
385.29                subd. 5                        subd. 7
385.30                subd. 6                        subd. 8
385.31       121.9121, subd. 1              123A.92, subd. 1
385.32                 subd. 2                       subd. 2
385.33                 subd. 4                       subd. 3
385.34       121.914                        123A.93
385.35       121.915                        123A.94
385.36       121.917                        123A.95
386.1                              ARTICLE 7 
386.2                             CHAPTER 124D 
386.3                       BASIC EDUCATION FUNDING 
386.4      Section 1.  Minnesota Statutes 1996, section 123.76, is 
386.5   amended to read: 
386.6      123.76 [POLICY.] 
386.7      In districts where the state provides aids for 
386.8   transportation it is in the public interest to provide equality 
386.9   of treatment in transporting school children of the state who 
386.10  are required to attend elementary and secondary schools pursuant 
386.11  to chapter 120, so that the health, welfare and safety of such 
386.12  the children, while using the public highways of the state, 
386.13  shall be protected.  
386.14     School children attending any schools, complying with 
386.15  section 120.101, are therefore entitled to the same rights and 
386.16  privileges relating to transportation.  
386.17     Sec. 2.  Minnesota Statutes 1996, section 123.78, 
386.18  subdivision 1a, is amended to read: 
386.19     Subd. 1a.  [NONPUBLIC SCHOOL STUDENTS.] (a) The school 
386.20  board of any local district shall must provide school bus 
386.21  transportation to the district boundary for school children 
386.22  residing in the district at least the same distance from a 
386.23  nonpublic school actually attended in another district as public 
386.24  school pupils are transported in the transporting district,.  
386.25  Such transportation must be provided whether or not there is 
386.26  another nonpublic school within the transporting district, if 
386.27  the transportation is to schools maintaining grades or 
386.28  departments not maintained in the district or if the attendance 
386.29  of such children at school can more safely, economically, or 
386.30  conveniently be provided for by such means.  
386.31     (b) The school board of any local district may provide 
386.32  school bus transportation to a nonpublic school in another 
386.33  district for school children residing in the district and 
386.34  attending that school, whether or not there is another nonpublic 
386.35  school within the transporting district, if the transportation 
386.36  is to schools maintaining grades or departments not maintained 
387.1   in the district or if the attendance of such children at school 
387.2   can more safely, economically, or conveniently be provided for 
387.3   by such means.  If the board transports children to a nonpublic 
387.4   school located in another district, the nonpublic school shall 
387.5   must pay the cost of such transportation provided outside the 
387.6   district boundaries. 
387.7      Sec. 3.  Minnesota Statutes 1996, section 123.78, 
387.8   subdivision 2, is amended to read: 
387.9      Subd. 2.  [BOARD CONTROL.] When transportation is provided, 
387.10  the scheduling of routes, manner and method of transportation, 
387.11  control and discipline of school children and any other matter 
387.12  relating thereto shall be within the sole discretion, control 
387.13  and management of the school board. 
387.14     Sec. 4.  Minnesota Statutes 1996, section 123.79, 
387.15  subdivision 1, is amended to read: 
387.16     Subdivision 1.  [STATE AID.] Such State aids as are made 
387.17  available or appropriated shall be for the equal benefit of all 
387.18  school children, and be disbursed in such manner as determined 
387.19  by the board. 
387.20     Sec. 5.  Minnesota Statutes 1996, section 123.799, as 
387.21  amended by Laws 1997, First Special Session chapter 4, article 
387.22  12, section 2, is amended to read: 
387.23     123.799 [STUDENT TRANSPORTATION SAFETY.] 
387.24     Subdivision 1.  [RESERVED REVENUE USE.] A district shall 
387.25  must use the student transportation safety reserved revenue 
387.26  under section 124.225, subdivision 7f, for providing student 
387.27  transportation safety programs to enhance student conduct and 
387.28  safety on the bus or when boarding and exiting the bus.  A 
387.29  district's student transportation policy must specify the 
387.30  student transportation safety activities to be carried out under 
387.31  this section.  A district's student transportation safety 
387.32  reserved revenue may only be used for the following purposes: 
387.33     (1) to provide paid adult bus monitors, including training 
387.34  and salary costs; 
387.35     (2) to provide a volunteer bus monitor program, including 
387.36  training costs and the cost of a program coordinator; 
388.1      (3) to purchase or lease optional external public address 
388.2   systems or video recording cameras for use on buses; 
388.3      (4) to purchase new or retrofit existing school buses with 
388.4   seatbelts or other occupant restraint systems after consultation 
388.5   with and approval by the commissioner of public safety; and 
388.6      (5) other activities or equipment that have been approved 
388.7   by the commissioner of public safety. 
388.8      Subd. 2.  [REPORTING.] Districts shall must annually report 
388.9   expenditures from the student transportation safety reserved 
388.10  revenue to the commissioner of children, families, and learning, 
388.11  who shall provide the information to the school bus safety 
388.12  advisory committee. 
388.13     Sec. 6.  Minnesota Statutes 1997 Supplement, section 
388.14  123.7991, subdivision 2, is amended to read: 
388.15     Subd. 2.  [STUDENT TRAINING.] (a) Each school district 
388.16  shall must provide public school pupils enrolled in grades 
388.17  kindergarten through 10 with age-appropriate school bus safety 
388.18  training.  The training shall must be results-oriented and shall 
388.19  consist of both classroom instruction and practical training 
388.20  using a school bus.  Upon completing the training, a student 
388.21  shall be able to demonstrate knowledge and understanding of at 
388.22  least the following competencies and concepts: 
388.23     (1) transportation by school bus is a privilege and not a 
388.24  right; 
388.25     (2) district policies for student conduct and school bus 
388.26  safety; 
388.27     (3) appropriate conduct while on the school bus; 
388.28     (4) the danger zones surrounding a school bus; 
388.29     (5) procedures for safely boarding and leaving a school 
388.30  bus; 
388.31     (6) procedures for safe street or road crossing; and 
388.32     (7) school bus evacuation and other emergency procedures. 
388.33     (b) Each nonpublic school located within the district shall 
388.34  must provide all nonpublic school pupils enrolled in grades 
388.35  kindergarten through 10 who are transported by school bus at 
388.36  public expense and attend school within the district's 
389.1   boundaries with training as required in paragraph (a).  The 
389.2   school district shall make a bus available for the practical 
389.3   training if the district transports the nonpublic students.  
389.4   Each nonpublic school shall provide the instruction. 
389.5      (c) All students enrolled in grades kindergarten through 3 
389.6   who are transported by school bus and are enrolled during the 
389.7   first or second week of school must demonstrate achievement of 
389.8   the school bus safety training competencies by the end of the 
389.9   third week of school.  All students enrolled in grades 4 through 
389.10  10 who are transported by school bus and are enrolled during the 
389.11  first or second week of school must demonstrate achievement of 
389.12  the competencies by the end of the sixth week of school.  
389.13  Students enrolled in grades kindergarten through 10 who enroll 
389.14  in a school after the second week of school and are transported 
389.15  by school bus shall undergo school bus safety training and 
389.16  demonstrate achievement of the school bus safety competencies 
389.17  within four weeks of the first day of attendance.  The pupil 
389.18  transportation safety director in each district must certify to 
389.19  the commissioner of children, families, and learning annually 
389.20  that all students transported by school bus within the district 
389.21  have satisfactorily demonstrated knowledge and understanding of 
389.22  the school bus safety competencies according to this section or 
389.23  provide an explanation for a student's failure to demonstrate 
389.24  the competencies.  The principal or other chief administrator of 
389.25  each nonpublic school must certify annually to the public 
389.26  transportation safety director of the district in which the 
389.27  school is located that all of the school's students transported 
389.28  by school bus at public expense have received training.  A 
389.29  school district may deny transportation to a student who fails 
389.30  to demonstrate the competencies, unless the student is unable to 
389.31  achieve the competencies due to a disability, or to a student 
389.32  who attends a nonpublic school that fails to provide training as 
389.33  required by this subdivision. 
389.34     (d) A school district and a nonpublic school with students 
389.35  transported by school bus at public expense must, to the extent 
389.36  possible, provide kindergarten pupils with bus safety training 
390.1   before the first day of school. 
390.2      (e) A school district and a nonpublic school with students 
390.3   transported by school bus at public expense must also provide 
390.4   student safety education for bicycling and pedestrian safety, 
390.5   for students enrolled in grades kindergarten through 5. 
390.6      (f) A school district and a nonpublic school with students 
390.7   transported by school bus at public expense must make reasonable 
390.8   accommodations for the school bus, bicycle, and pedestrian 
390.9   safety training of pupils known to speak English as a second 
390.10  language and pupils with disabilities. 
390.11     Sec. 7.  Minnesota Statutes 1996, section 123.7991, 
390.12  subdivision 3, is amended to read: 
390.13     Subd. 3.  [MODEL TRAINING PROGRAM.] The commissioner of 
390.14  children, families, and learning shall develop a comprehensive 
390.15  model school bus safety training program for pupils who ride the 
390.16  bus that includes bus safety curriculum for both classroom and 
390.17  practical instruction, methods for assessing attainment of 
390.18  school bus safety competencies, and age-appropriate 
390.19  instructional materials.  The program must be adaptable for use 
390.20  by students with disabilities. 
390.21     Sec. 8.  Minnesota Statutes 1996, section 123.801, is 
390.22  amended to read: 
390.23     123.801 [BUS TRANSPORTATION A PRIVILEGE NOT A RIGHT.] 
390.24     Transportation by school bus is a privilege not a right for 
390.25  an eligible student.  A student's eligibility to ride a school 
390.26  bus may be revoked for a violation of school bus safety or 
390.27  conduct policies, or for violation of any other law governing 
390.28  student conduct on a school bus, pursuant to a written school 
390.29  district discipline policy.  Revocation of a student's bus 
390.30  riding privilege is not an exclusion, expulsion, or suspension 
390.31  under the pupil fair dismissal act of 1974.  Revocation 
390.32  procedures for a student who is an individual with a disability 
390.33  under the Individuals with Disabilities Education Act, United 
390.34  States Code, title 20, section 1400 et seq., section 504 of the 
390.35  Rehabilitation Act of 1973, United States Code, title 29, 
390.36  section 794, and the Americans with Disabilities Act, Public Law 
391.1   Number 101-336, are governed by these provisions. 
391.2      Sec. 9.  Minnesota Statutes 1996, section 123.805, is 
391.3   amended to read: 
391.4      123.805 [SCHOOL DISTRICT BUS SAFETY RESPONSIBILITIES.] 
391.5      Subdivision 1.  [COMPREHENSIVE POLICY.] Each school 
391.6   district shall must develop and implement a comprehensive, 
391.7   written policy governing pupil transportation safety, including 
391.8   transportation of nonpublic school students, when applicable.  
391.9   The policy shall, at minimum, contain: 
391.10     (1) provisions for appropriate student bus safety training 
391.11  under section 123.7991; 
391.12     (2) rules governing student conduct on school buses and in 
391.13  school bus loading and unloading areas; 
391.14     (3) a statement of parent or guardian responsibilities 
391.15  relating to school bus safety; 
391.16     (4) provisions for notifying students and parents or 
391.17  guardians of their responsibilities and the rules; 
391.18     (5) an intradistrict system for reporting school bus 
391.19  accidents or misconduct, a system for dealing with local law 
391.20  enforcement officials in cases of criminal conduct on a school 
391.21  bus, and a system for reporting accidents, crimes, incidents of 
391.22  misconduct, and bus driver dismissals to the department of 
391.23  public safety under section 169.452; 
391.24     (6) a discipline policy to address violations of school bus 
391.25  safety rules, including procedures for revoking a student's bus 
391.26  riding privileges in cases of serious or repeated misconduct; 
391.27     (7) a system for integrating school bus misconduct records 
391.28  with other discipline records; 
391.29     (8) a statement of bus driver duties; 
391.30     (9) planned expenditures for safety activities under 
391.31  section 123.799 and, where applicable, provisions governing bus 
391.32  monitor qualifications, training, and duties; 
391.33     (10) rules governing the use and maintenance of type III 
391.34  vehicles, drivers of type III vehicles, qualifications to drive 
391.35  a type III vehicle, qualifications for a type III vehicle and 
391.36  the circumstances under which a student may be transported in a 
392.1   type III vehicle; 
392.2      (11) operating rules and procedures; 
392.3      (12) provisions for annual bus driver in-service training 
392.4   and evaluation; 
392.5      (13) emergency procedures; 
392.6      (14) a system for maintaining and inspecting equipment; 
392.7      (15) requirements of the school district, if any, that 
392.8   exceed state law minimum requirements for school bus operations; 
392.9   and 
392.10     (16) requirements for basic first aid training, which shall 
392.11  must include the Heimlich maneuver and procedures for dealing 
392.12  with obstructed airways, shock, bleeding, and seizures. 
392.13     School Districts are encouraged to use the model policy 
392.14  developed by the Minnesota school boards association, the 
392.15  department of public safety, and the department of children, 
392.16  families, and learning, as well as the current edition of the 
392.17  "National Standards for School Buses and Operations" published 
392.18  by the National Safety Council, in developing safety policies.  
392.19  Each district shall submit a copy of its policy under this 
392.20  subdivision to the school bus safety advisory committee no later 
392.21  than August 1, 1994.  Each district shall review its policy 
392.22  annually and make appropriate amendments, which must be 
392.23  submitted to the school bus safety advisory committee within one 
392.24  month of approval by the school board. 
392.25     Subd. 2.  [SCHOOL TRANSPORTATION SAFETY DIRECTOR.] Each 
392.26  school board shall designate a school transportation safety 
392.27  director to oversee and implement pupil transportation safety 
392.28  policies.  The director shall have day-to-day responsibility for 
392.29  pupil transportation safety within the district, including 
392.30  transportation of nonpublic school children when provided by the 
392.31  district. 
392.32     Sec. 10.  Minnesota Statutes 1996, section 123.932, 
392.33  subdivision 1b, is amended to read: 
392.34     Subd. 1b.  [TEXTBOOK.] "Textbook" means any book or book 
392.35  substitute which a pupil uses as a text or text substitute in a 
392.36  particular class or program in the school regularly attended and 
393.1   a copy of which is expected to be available for the individual 
393.2   use of each pupil in this class or program, which book or book 
393.3   substitute or text or text substitute.  The term shall be 
393.4   limited to books, workbooks, or manuals, whether bound or in 
393.5   loose-leaf form, intended for use as a principal source of study 
393.6   material for a given class or a group of students.  The term 
393.7   includes only such secular, neutral and nonideological textbooks 
393.8   as are available, used by, or of benefit to Minnesota public 
393.9   school pupils. 
393.10     Sec. 11.  Minnesota Statutes 1996, section 123.933, is 
393.11  amended to read: 
393.12     123.933 [TEXTBOOKS,; INDIVIDUAL INSTRUCTION OR COOPERATIVE 
393.13  LEARNING MATERIAL,; STANDARD TESTS.] 
393.14     Subdivision 1.  [PROVISION.] The state board of education 
393.15  shall promulgate rules under the provisions of chapter 14 
393.16  requiring that in each school year, based upon formal requests 
393.17  by or on behalf of nonpublic school pupils in a nonpublic 
393.18  school, the local districts or intermediary service areas shall 
393.19  must purchase or otherwise acquire textbooks, individualized 
393.20  instructional or cooperative learning materials, and 
393.21  standardized tests and loan or provide them for use by children 
393.22  enrolled in that nonpublic school.  These textbooks, 
393.23  individualized instructional or cooperative learning materials, 
393.24  and standardized tests shall must be loaned or provided free to 
393.25  the children for the school year for which requested.  The loan 
393.26  or provision of the textbooks, individualized instructional or 
393.27  cooperative learning materials, and standardized tests shall be 
393.28  subject to rules prescribed by the state board of education. 
393.29     Subd. 2.  [TITLE.] The title to textbooks, individualized 
393.30  instructional or cooperative learning materials, and 
393.31  standardized testing materials shall must remain in the 
393.32  servicing school district or intermediary service area, and 
393.33  possession or custody may be granted or charged to 
393.34  administrators of the nonpublic school attended by the nonpublic 
393.35  school pupil or pupils to whom the textbooks, individualized 
393.36  instructional or cooperative learning materials, or standardized 
394.1   tests are loaned or provided. 
394.2      Subd. 3.  [COST; LIMITATION.] (a) The cost per pupil of the 
394.3   textbooks, individualized instructional or cooperative learning 
394.4   materials, and standardized tests provided for in this section 
394.5   for each school year shall must not exceed the statewide average 
394.6   expenditure per pupil, adjusted pursuant to clause (b), by the 
394.7   Minnesota public elementary and secondary schools for textbooks, 
394.8   individualized instructional materials and standardized tests as 
394.9   computed and established by the department of children, 
394.10  families, and learning by March 1 of the preceding school year 
394.11  from the most recent public school year data then available. 
394.12     (b) The cost computed in clause (a) shall be increased by 
394.13  an inflation adjustment equal to the percent of increase in the 
394.14  formula allowance, pursuant to section 124A.22, subdivision 2, 
394.15  from the second preceding school year to the current school year.
394.16     (c) The commissioner shall allot to the school districts or 
394.17  intermediary service areas the total cost for each school year 
394.18  of providing or loaning the textbooks, individualized 
394.19  instructional or cooperative learning materials, and 
394.20  standardized tests for the pupils in each nonpublic school.  The 
394.21  allotment shall not exceed the product of the statewide average 
394.22  expenditure per pupil, according to clause (a), adjusted 
394.23  pursuant to clause (b), multiplied by the number of nonpublic 
394.24  school pupils who make requests pursuant to this section and who 
394.25  are enrolled as of September 15 of the current school year. 
394.26     Sec. 12.  Minnesota Statutes 1996, section 123.935, 
394.27  subdivision 1, is amended to read: 
394.28     Subdivision 1.  [PROVIDED SERVICES.] The state board of 
394.29  education shall promulgate rules under the provisions of chapter 
394.30  14 requiring each school district or other intermediary service 
394.31  area:  (a) to provide each year upon formal request by a 
394.32  specific date by or on behalf of a nonpublic school pupil 
394.33  enrolled in a nonpublic school located in that district or area, 
394.34  the same specific health services as are provided for public 
394.35  school pupils by the district where the nonpublic school is 
394.36  located; and (b) to provide each year upon formal request by a 
395.1   specific date by or on behalf of a nonpublic school secondary 
395.2   pupil enrolled in a nonpublic school located in that district or 
395.3   area, the same specific guidance and counseling services as are 
395.4   provided for public school secondary pupils by the district 
395.5   where the nonpublic school is located.  The district where the 
395.6   nonpublic school is located shall must provide the necessary 
395.7   transportation within the district boundaries between the 
395.8   nonpublic school and a public school or neutral site for 
395.9   nonpublic school pupils who are provided pupil support services 
395.10  pursuant to this section.  Each request for pupil support 
395.11  services shall must set forth the guidance and counseling or 
395.12  health services requested by or on behalf of all eligible 
395.13  nonpublic school pupils enrolled in a given nonpublic school.  
395.14  No district or intermediary service area shall must not expend 
395.15  an amount for these pupil support services which exceeds the 
395.16  amount allotted to it under this section. 
395.17     Sec. 13.  Minnesota Statutes 1996, section 123.935, 
395.18  subdivision 2, is amended to read: 
395.19     Subd. 2.  [LOCATION OF SERVICES.] Health services may be 
395.20  provided to nonpublic school pupils pursuant to this section at 
395.21  a public school, a neutral site, the nonpublic school or any 
395.22  other suitable location.  Guidance and counseling services may 
395.23  be provided to nonpublic school pupils pursuant to this section 
395.24  only at a public school or a neutral site.  District or 
395.25  intermediary service area personnel and representatives of the 
395.26  nonpublic school pupils receiving pupil support services shall 
395.27  must hold an annual consultation regarding the type of services, 
395.28  provider of services, and the location of the provision of these 
395.29  services.  The district board or intermediary service area 
395.30  governing board shall must make the final decision on the 
395.31  location of the provision of these services. 
395.32     Sec. 14.  Minnesota Statutes 1996, section 123.935, 
395.33  subdivision 4, is amended to read: 
395.34     Subd. 4.  [HEALTH SERVICES; ALLOTMENT.] Each school year 
395.35  the commissioner shall allot to the school districts or other 
395.36  intermediary service areas for the provision of health services 
396.1   pursuant to this section the actual cost of the services 
396.2   provided for the pupils in each respective nonpublic school for 
396.3   that school year, but not to.  The allotment must not exceed the 
396.4   average expenditure per public school pupil for these services 
396.5   by those Minnesota public elementary and secondary schools which 
396.6   provide health services to public school pupils, multiplied by 
396.7   the number of pupils in that particular nonpublic school who 
396.8   request these health services and who are enrolled as of 
396.9   September 15 of the current school year. 
396.10     Sec. 15.  Minnesota Statutes 1996, section 123.935, 
396.11  subdivision 5, is amended to read: 
396.12     Subd. 5.  [GUIDANCE AND COUNSELING SERVICES; ALLOTMENT.] 
396.13  Each school year the commissioner shall allot to the school 
396.14  districts or intermediary service areas for the provision of 
396.15  guidance and counseling services pursuant to this section the 
396.16  actual cost of the services provided for the pupils in each 
396.17  respective nonpublic school for that school year.  The allotment 
396.18  for guidance and counseling services for the secondary pupils in 
396.19  each nonpublic school shall must not exceed the average 
396.20  expenditure per public school secondary pupil for these services 
396.21  by those Minnesota public schools which provide these services 
396.22  to their secondary pupils, multiplied by the number of secondary 
396.23  pupils in that particular nonpublic school who request these 
396.24  services and who are enrolled as of September 15 of the current 
396.25  school year. 
396.26     Sec. 16.  Minnesota Statutes 1996, section 123.935, 
396.27  subdivision 6, is amended to read: 
396.28     Subd. 6.  [COMPUTATION OF MAXIMUM ALLOTMENTS.] For purposes 
396.29  of computing maximum allotments for each school year pursuant to 
396.30  this section, the average public school expenditure per pupil 
396.31  for health services and the average public school expenditure 
396.32  per secondary pupil for guidance and counseling services shall 
396.33  be computed and established by the department of children, 
396.34  families, and learning by March 1 of the preceding school year 
396.35  from the most recent public school year data then available. 
396.36     Sec. 17.  Minnesota Statutes 1996, section 123.936, is 
397.1   amended to read: 
397.2      123.936 [PAYMENTS FOR CONTRACTUAL OBLIGATIONS.] 
397.3      In every event The commissioner shall make such payments to 
397.4   school districts or intermediary service areas pursuant to 
397.5   sections 123.931 to 123.937 as are needed to meet contractual 
397.6   obligations incurred for the provision of benefits to nonpublic 
397.7   school students pursuant to section 123.933 or 123.935. 
397.8      Sec. 18.  Minnesota Statutes 1996, section 123.9361, is 
397.9   amended to read: 
397.10     123.9361 [ADMINISTRATIVE COSTS.] 
397.11     Each year, a school district or intermediary service area 
397.12  may claim and receive from the department of children, families, 
397.13  and learning an additional sum for the administration of 
397.14  sections 123.933 and 123.935, equal to five percent of the 
397.15  district's or area's allocation for that year pursuant to those 
397.16  sections.  
397.17     Sec. 19.  Minnesota Statutes 1996, section 123.9362, is 
397.18  amended to read: 
397.19     123.9362 [NOTICE TO DISTRICTS; PRORATION.] 
397.20     In the event If the appropriation for nonpublic educational 
397.21  aid under sections 123.931 to 123.947 is not sufficient to meet 
397.22  the required payments in any fiscal year, the department of 
397.23  children, families, and learning must notify the school 
397.24  districts at the earliest possible date of the need to prorate 
397.25  the appropriation among the districts.  
397.26     Sec. 20.  Minnesota Statutes 1996, section 123.947, is 
397.27  amended to read: 
397.28     123.947 [USE OF INDIVIDUALIZED INSTRUCTIONAL MATERIALS.] 
397.29     (a) The commissioner shall assure that textbooks and 
397.30  individualized instructional materials loaned to nonpublic 
397.31  school pupils are secular, neutral, nonideological and that they 
397.32  are incapable of diversion for religious use.  
397.33     (b) Textbooks and individualized instructional materials 
397.34  shall must not be used in religious courses, devotional 
397.35  exercises, religious training or any other religious activity.  
397.36     (c) Textbooks and individualized instructional materials 
398.1   shall must be loaned only to individual pupils upon the request 
398.2   of a parent or guardian or the pupil on a form designated for 
398.3   this use by the commissioner.  The request forms shall provide 
398.4   for verification by the parent or guardian or pupil that the 
398.5   requested textbooks and individualized instructional materials 
398.6   are for the use of the individual pupil in connection with a 
398.7   program of instruction in the pupil's elementary or secondary 
398.8   school.  
398.9      (d) The servicing school district or the intermediary 
398.10  service area shall must take adequate measures to ensure an 
398.11  accurate and periodic inventory of all textbooks and 
398.12  individualized instructional materials loaned to elementary and 
398.13  secondary school pupils attending nonpublic schools.  The state 
398.14  board of education shall promulgate rules under the provisions 
398.15  of chapter 14 to terminate the eligibility of any nonpublic 
398.16  school pupil if the commissioner determines, after notice and 
398.17  opportunity for hearing, that the textbooks or individualized 
398.18  instructional materials have been used in a manner contrary to 
398.19  the provisions of section 123.932, subdivision 1e, 123.933, or 
398.20  this section or any rules promulgated by the state board of 
398.21  education. 
398.22     (e) Nothing contained in section 123.932, subdivision 1e, 
398.23  123.933, or this section shall be construed to authorize the 
398.24  making of any payments to a nonpublic school or its faculty, 
398.25  staff or administrators for religious worship or instruction or 
398.26  for any other purpose.  
398.27     Sec. 21.  Minnesota Statutes 1996, section 124.17, 
398.28  subdivision 2, is amended to read: 
398.29     Subd. 2.  [AVERAGE DAILY MEMBERSHIP.] Membership for pupils 
398.30  in grades kindergarten through 12 and for prekindergarten pupils 
398.31  with disabilities shall mean the number of pupils on the current 
398.32  roll of the school, counted from the date of entry until 
398.33  withdrawal.  The date of withdrawal shall mean the day the pupil 
398.34  permanently leaves the school or the date it is officially known 
398.35  that the pupil has left or has been legally excused.  However, a 
398.36  pupil, regardless of age, who has been absent from school for 15 
399.1   consecutive school days during the regular school year or for 
399.2   five consecutive school days during summer school or 
399.3   intersession classes of flexible school year programs without 
399.4   receiving instruction in the home or hospital shall be dropped 
399.5   from the roll and classified as withdrawn.  Nothing in this 
399.6   section shall be construed as waiving the compulsory attendance 
399.7   provisions cited in section 120.101.  Average daily membership 
399.8   shall equal equals the sum for all pupils of the number of days 
399.9   of the school year each pupil is enrolled in the district's 
399.10  schools divided by the number of days the schools are in 
399.11  session.  Days of summer school or intersession classes of 
399.12  flexible school year programs shall are only be included in the 
399.13  computation of membership for pupils with a disability 
399.14  appropriately served at level 4, 5, or 6 of the continuum of 
399.15  placement model described in Minnesota Rules, part 3525.0200. 
399.16     Sec. 22.  Minnesota Statutes 1997 Supplement, section 
399.17  124.17, subdivision 1, is amended to read: 
399.18     Subdivision 1.  [ACTUAL PUPIL UNIT.] Actual pupil units for 
399.19  each resident pupil in average daily membership shall be counted 
399.20  according to this subdivision.  
399.21     (a) A prekindergarten pupil with a disability who is 
399.22  enrolled in a program approved by the commissioner and has an 
399.23  individual education plan is counted as the ratio of the number 
399.24  of hours of assessment and education service to 825 with a 
399.25  minimum of 0.28, but not more than one. 
399.26     (b) A prekindergarten pupil who is assessed but determined 
399.27  not to be handicapped is counted as the ratio of the number of 
399.28  hours of assessment service to 825.  
399.29     (c) A kindergarten pupil with a disability who is enrolled 
399.30  in a program approved by the commissioner is counted as the 
399.31  ratio of the number of hours of assessment and education 
399.32  services required in the fiscal year by the pupil's individual 
399.33  education program plan to 875, but not more than one. 
399.34     (d) A kindergarten pupil who is not included in paragraph 
399.35  (c) is counted as .53 of a pupil unit for fiscal year 1995 and 
399.36  thereafter. 
400.1      (e) A pupil who is in any of grades 1 to 6 is counted as 
400.2   1.06 pupil units for fiscal year 1995 and thereafter. 
400.3      (f) A pupil who is in any of grades 7 to 12 is counted as 
400.4   1.3 pupil units.  
400.5      (g) A pupil who is in the post-secondary enrollment options 
400.6   program is counted as 1.3 pupil units. 
400.7      Sec. 23.  Minnesota Statutes 1996, section 124.17, 
400.8   subdivision 2a, is amended to read: 
400.9      Subd. 2a.  [TRANSITIONAL YEAR PUPILS.] Notwithstanding 
400.10  subdivision 2, pupils granted transitional year status shall 
400.11  continue to be counted as members on the current roll of the 
400.12  school for the remainder of the school year.  For purposes of 
400.13  computing average daily membership, transitional year 
400.14  pupils shall must be considered to be enrolled every day school 
400.15  is in session for the remainder of the school year. 
400.16     Sec. 24.  Minnesota Statutes 1996, section 124.17, 
400.17  subdivision 2b, is amended to read: 
400.18     Subd. 2b.  [NATIONAL GUARD PUPILS.] Notwithstanding 
400.19  subdivision 2, pupils enrolled in the Minnesota National Guard 
400.20  program shall be construed to be in attendance, for purposes of 
400.21  computing average daily membership, during any period of the 
400.22  regular school year, but not to include summer school, during 
400.23  which the pupil is attending military active duty training 
400.24  pursuant to that program.  During that period of military active 
400.25  duty training, the pupil shall earn all aid for the district of 
400.26  residence or attendance which would be otherwise earned by the 
400.27  pupil's presence. 
400.28     Sec. 25.  Minnesota Statutes 1997 Supplement, section 
400.29  124.17, subdivision 4, is amended to read: 
400.30     Subd. 4.  [LEARNING YEAR PUPIL UNITS.] (a) When a pupil is 
400.31  enrolled in a learning year program under section 121.585, an 
400.32  area learning center under sections 124C.45 and 124C.46, or an 
400.33  alternative program approved by the commissioner, for more than 
400.34  1,020 hours in a school year for a secondary student, more than 
400.35  935 hours in a school year for an elementary student, or more 
400.36  than 425 hours in a school year for a kindergarten student 
401.1   without a disability, that pupil may be counted as more than one 
401.2   pupil in average daily membership.  The amount in excess of one 
401.3   pupil must be determined by the ratio of the number of hours of 
401.4   instruction provided to that pupil in excess of:  (i) the 
401.5   greater of 1,020 hours or the number of hours required for a 
401.6   full-time secondary pupil in the district to 1,020 for a 
401.7   secondary pupil; (ii) the greater of 935 hours or the number of 
401.8   hours required for a full-time elementary pupil in the district 
401.9   to 935 for an elementary pupil in grades 1 through 6; and (iii) 
401.10  the greater of 425 hours or the number of hours required for a 
401.11  full-time kindergarten student without a disability in the 
401.12  district to 425 for a kindergarten student without a 
401.13  disability.  Hours that occur after the close of the 
401.14  instructional year in June shall be attributable to the 
401.15  following fiscal year.  A kindergarten student must not be 
401.16  counted as more than 1.2 pupils in average daily membership 
401.17  under this subdivision. 
401.18     (b)(i) To receive general education revenue for a pupil in 
401.19  an alternative program that has an independent study component, 
401.20  a school district must meet the requirements in this paragraph.  
401.21  The school district must develop, with the pupil, a continual 
401.22  learning plan for the pupil.  A district must allow a minor 
401.23  pupil's parent or guardian to participate in developing the 
401.24  plan, if the parent or guardian wants to participate.  The plan 
401.25  must identify the learning experiences and expected outcomes 
401.26  needed for satisfactory credit for the year and for graduation.  
401.27  The plan must be updated each year.  Each school district that 
401.28  has a state-approved public alternative program must reserve 
401.29  revenue in an amount equal to at least 90 percent of the 
401.30  district average general education revenue per pupil unit less 
401.31  compensatory revenue per pupil unit times the number of pupil 
401.32  units generated by students attending a state-approved public 
401.33  alternative program.  The amount of reserved revenue available 
401.34  under this subdivision may only be spent for program costs 
401.35  associated with the state-approved public alternative program.  
401.36  Compensatory revenue must be allocated according to section 
402.1   124A.28, subdivision 1a. 
402.2      (ii) General education revenue for a pupil in an approved 
402.3   alternative program without an independent study component must 
402.4   be prorated for a pupil participating for less than a full year, 
402.5   or its equivalent.  Each school district that has a 
402.6   state-approved public alternative program must reserve revenue 
402.7   in an amount equal to at least 90 percent of the district 
402.8   average general education revenue per pupil unit less 
402.9   compensatory revenue per pupil unit times the number of pupil 
402.10  units generated by students attending a state-approved public 
402.11  alternative program.  The amount of reserved revenue available 
402.12  under this subdivision may only be spent for program costs 
402.13  associated with the state-approved public alternative program.  
402.14  Compensatory revenue must be allocated according to section 
402.15  124A.28, subdivision 1a.  
402.16     (iii) General education revenue for a pupil in an approved 
402.17  alternative program that has an independent study component must 
402.18  be paid for each hour of teacher contact time and each hour of 
402.19  independent study time completed toward a credit or graduation 
402.20  standards necessary for graduation.  Average daily membership 
402.21  for a pupil shall equal the number of hours of teacher contact 
402.22  time and independent study time divided by 1,020. 
402.23     (iv) For an alternative program having an independent study 
402.24  component, the commissioner shall require a description of the 
402.25  courses in the program, the kinds of independent study involved, 
402.26  the expected learning outcomes of the courses, and the means of 
402.27  measuring student performance against the expected outcomes. 
402.28     Sec. 26.  Minnesota Statutes 1996, section 124.175, is 
402.29  amended to read: 
402.30     124.175 [AFDC PUPIL COUNT; CERTIFICATION.] 
402.31     Each year by March 1, the department of human services 
402.32  shall certify to the department of children, families, and 
402.33  learning, for each school district, the number of pupils from 
402.34  families receiving aid to families with dependent children who 
402.35  were enrolled in a public school on October 1 of the preceding 
402.36  year.  
403.1      Sec. 27.  Minnesota Statutes 1996, section 124.19, 
403.2   subdivision 5, is amended to read: 
403.3      Subd. 5.  [SCHEDULE ADJUSTMENTS.] (a) It is the intention 
403.4   of the legislature to encourage efficient and effective use of 
403.5   staff and facilities by school districts.  School Districts are 
403.6   encouraged to consider both cost and energy saving measures.  
403.7      (b) Notwithstanding the provisions of subdivision 1 or 4, 
403.8   Any district operating a program pursuant to sections 120.59 to 
403.9   120.67, 121.585 or 125.701 to 125.705, or operating a 
403.10  commissioner-designated area learning center program under 
403.11  section 124C.49, or that otherwise receives the approval of the 
403.12  commissioner to operate its instructional program to avoid an 
403.13  aid reduction in any year, may adjust the annual school schedule 
403.14  for that program throughout the calendar year.  
403.15     Sec. 28.  Minnesota Statutes 1996, section 124.225, 
403.16  subdivision 7f, is amended to read: 
403.17     Subd. 7f.  [RESERVED REVENUE FOR TRANSPORTATION SAFETY.] A 
403.18  district shall must reserve an amount equal to the greater of 
403.19  $500 or $1.50 times the number of fund balance pupil units, for 
403.20  that school year to provide student transportation safety 
403.21  programs under section 123.799.  This revenue may only be used 
403.22  if the district complies with the reporting requirements of 
403.23  section 123.7991, 123.805, 169.452, 169.4582, or 171.321, 
403.24  subdivision 5. 
403.25     Sec. 29.  Minnesota Statutes 1996, section 124.225, 
403.26  subdivision 8l, is amended to read: 
403.27     Subd. 8l.  [ALTERNATIVE ATTENDANCE PROGRAMS.] A district 
403.28  that enrolls nonresident pupils in programs under sections 
403.29  120.062, 120.075, 120.0751, 120.0752, 124C.45 to 124C.48, and 
403.30  126.22, shall must provide authorized transportation to the 
403.31  pupil within the attendance area for the school that the pupil 
403.32  attends.  The resident district need not provide or pay for 
403.33  transportation between the pupil's residence and the district's 
403.34  border. 
403.35     Sec. 30.  Minnesota Statutes 1996, section 124.225, 
403.36  subdivision 8m, is amended to read: 
404.1      Subd. 8m.  [TRANSPORTATION SAFETY AID.] A district's 
404.2   transportation safety aid equals the district's reserved revenue 
404.3   for transportation safety under subdivision 7f for that school 
404.4   year.  Failure of a school district to comply with the reporting 
404.5   requirements of section 123.7991, 123.805, 169.452, 169.4582, or 
404.6   171.321, subdivision 5, may result in a withholding of that 
404.7   district's transportation safety aid for that school year. 
404.8      Sec. 31.  Minnesota Statutes 1996, section 124.225, 
404.9   subdivision 9, is amended to read:  
404.10     Subd. 9.  [DISTRICT REPORTS.] Each district shall must 
404.11  report data to the department as required by the department to 
404.12  account for transportation expenditures.  
404.13     Sec. 32.  Minnesota Statutes 1996, section 124.239, 
404.14  subdivision 3, is amended to read: 
404.15     Subd. 3.  [BOND AUTHORIZATION.] A school district, upon 
404.16  approval of its school board and the commissioner, may issue 
404.17  general obligation bonds under this section to finance approved 
404.18  facilities plans.  Chapter 475, except sections 475.58 and 
404.19  475.59, must be complied with.  The district may levy under 
404.20  subdivision 5 for the debt service revenue.  The authority to 
404.21  issue bonds under this section is in addition to any bonding 
404.22  authority authorized by this chapter, or other law.  The amount 
404.23  of bonding authority authorized under this section must be 
404.24  disregarded in calculating the bonding or net debt limits of 
404.25  this chapter, or any other law other than section 475.53, 
404.26  subdivision 4. 
404.27     Sec. 33.  Minnesota Statutes 1996, section 124.242, is 
404.28  amended to read: 
404.29     124.242 [BUILDING BONDS FOR CALAMITIES.] 
404.30     Subdivision 1.  [BONDS.] When a building owned by a school 
404.31  district is substantially damaged by an act of God or other 
404.32  means beyond the control of the district, the district may issue 
404.33  general obligation bonds without an election to provide money 
404.34  immediately to carry out its adopted health and safety program.  
404.35  Each year the district must pledge an attributable share of its 
404.36  health and safety revenue to the repayment of principal and 
405.1   interest on the bonds.  The pledged revenue shall must be 
405.2   transferred to the debt redemption fund of the district.  The 
405.3   district shall must submit to the department of children, 
405.4   families, and learning the repayment schedule for any bonds 
405.5   issued under this section.  The district shall must deposit in 
405.6   the debt redemption fund all proceeds received for specific 
405.7   costs for which the bonds were issued, including but not limited 
405.8   to:  
405.9      (1) insurance proceeds; 
405.10     (2) restitution proceeds; and 
405.11     (3) proceeds of litigation or settlement of a lawsuit. 
405.12     Before bonds are issued, the district must submit a 
405.13  combined application to the commissioner of children, families, 
405.14  and learning for health and safety revenue, according to section 
405.15  124.83, and requesting review and comment, according to section 
405.16  121.15, subdivisions 6, 7, 8, and 9.  The commissioner shall 
405.17  complete all procedures concerning the combined application 
405.18  within 20 days of receiving the application.  The publication 
405.19  provisions of section 121.15, subdivision 9, do not apply to 
405.20  bonds issued under this section.  
405.21     Subd. 2.  [HEALTH AND SAFETY REVENUE.] For any fiscal year 
405.22  where the total amount of health and safety revenue is limited, 
405.23  the commissioner of children, families, and learning shall must 
405.24  award highest priority to health and safety revenue pledged to 
405.25  repay building bonds issued under subdivision 1. 
405.26     Sec. 34.  Minnesota Statutes 1997 Supplement, section 
405.27  124.2445, is amended to read: 
405.28     124.2445 [PURCHASE OF CERTAIN EQUIPMENT.] 
405.29     The board of a school district may issue general obligation 
405.30  certificates of indebtedness or capital notes subject to the 
405.31  school district debt limits to purchase:  (a) vehicles, 
405.32  computers, telephone systems, cable equipment, photocopy and 
405.33  office equipment, technological equipment for instruction, and 
405.34  other capital equipment having an expected useful life at least 
405.35  as long as the terms of the certificates or notes; and (b) 
405.36  computer hardware and software, without regard to its expected 
406.1   useful life, whether bundled with machinery or equipment or 
406.2   unbundled, together with application development services and 
406.3   training related to the use of the computer.  The certificates 
406.4   or notes must be payable in not more than five years and must be 
406.5   issued on the terms and in the manner determined by the board.  
406.6   The certificates or notes may be issued by resolution and 
406.7   without the requirement for an election.  The certificates or 
406.8   notes are general obligation bonds for purposes of section 
406.9   124.755.  A tax levy must be made for the payment of the 
406.10  principal and interest on the certificates or notes, in 
406.11  accordance with section 475.61, as in the case of bonds.  The 
406.12  sum of the tax levies under this section and section 124.2455 
406.13  for each year must not exceed the amount of the district's total 
406.14  operating capital revenue for the year the initial debt service 
406.15  levies are certified.  The district's general education levy for 
406.16  each year must be reduced by the sum of (1) the amount of the 
406.17  tax levies for debt service certified for each year for payment 
406.18  of the principal and interest on the certificates or notes as 
406.19  required by section 475.61, and (2) any excess amount in the 
406.20  debt redemption fund used to retire certificates or notes issued 
406.21  after April 1, 1997, other than amounts used to pay capitalized 
406.22  interest.  A district using an excess amount in the debt 
406.23  redemption fund to retire the certificates or notes shall report 
406.24  the amount used for this purpose to the commissioner by July 15 
406.25  of the following fiscal year.  A district having an outstanding 
406.26  capital loan under section 124.431 or an outstanding debt 
406.27  service loan under section 124.42 must not use an excess amount 
406.28  in the debt redemption fund to retire the certificates or notes. 
406.29     Sec. 35.  Minnesota Statutes 1997 Supplement, section 
406.30  124.2455, is amended to read: 
406.31     124.2455 [BONDS FOR CERTAIN CAPITAL FACILITIES.] 
406.32     (a) In addition to other bonding authority, with approval 
406.33  of the commissioner, a school district may issue general 
406.34  obligation bonds for certain capital projects under this 
406.35  section.  The bonds must be used only to make capital 
406.36  improvements including: 
407.1      (1) under section 124A.22, subdivision 11, total operating 
407.2   capital revenue uses specified in clauses (4), (6), (7), (8), 
407.3   (9), and (10); 
407.4      (2) the cost of energy modifications; 
407.5      (3) improving handicap accessibility to school buildings; 
407.6   and 
407.7      (4) bringing school buildings into compliance with life and 
407.8   safety codes and fire codes.  
407.9      (b) Before a district issues bonds under this subdivision, 
407.10  it must publish notice of the intended projects, the amount of 
407.11  the bond issue, and the total amount of district indebtedness.  
407.12     (c) A bond issue tentatively authorized by the board under 
407.13  this subdivision becomes finally authorized unless a petition 
407.14  signed by more than 15 percent of the registered voters of the 
407.15  school district is filed with the school board within 30 days of 
407.16  the board's adoption of a resolution stating the board's 
407.17  intention to issue bonds.  The percentage is to be determined 
407.18  with reference to the number of registered voters in the school 
407.19  district on the last day before the petition is filed with the 
407.20  school board.  The petition must call for a referendum on the 
407.21  question of whether to issue the bonds for the projects under 
407.22  this section.  The approval of 50 percent plus one of those 
407.23  voting on the question is required to pass a referendum 
407.24  authorized by this section. 
407.25     (d) The bonds must be paid off within ten years of 
407.26  issuance.  The bonds must be issued in compliance with chapter 
407.27  475, except as otherwise provided in this section.  A tax levy 
407.28  must be made for the payment of principal and interest on the 
407.29  bonds in accordance with section 475.61.  The sum of the tax 
407.30  levies under this section and section 124.2455 for each year 
407.31  must not exceed the amount of the district's total operating 
407.32  capital revenue for the year the initial debt service levies are 
407.33  certified.  The district's general education levy for each year 
407.34  must be reduced by the sum of (1) the amount of the tax levies 
407.35  for debt service certified for each year for payment of the 
407.36  principal and interest on the bonds, and (2) any excess amount 
408.1   in the debt redemption fund used to retire bonds issued after 
408.2   April 1, 1997, other than amounts used to pay capitalized 
408.3   interest.  A district using an excess amount in the debt 
408.4   redemption fund to retire the bonds shall report the amount used 
408.5   for this purpose to the commissioner by July 15 of the following 
408.6   fiscal year.  A district having an outstanding capital loan 
408.7   under section 124.431 or an outstanding debt service loan under 
408.8   section 124.42 must not use an excess amount in the debt 
408.9   redemption fund to retire the bonds. 
408.10     (e) Notwithstanding paragraph (d), bonds issued by a 
408.11  district within the first five years following voter approval of 
408.12  a combination according to section 122.243, subdivision 2, must 
408.13  be paid off within 20 years of issuance.  All the other 
408.14  provisions and limitation of paragraph (d) apply. 
408.15     Sec. 36.  Minnesota Statutes 1996, section 124.2726, 
408.16  subdivision 1, is amended to read: 
408.17     Subdivision 1.  [ELIGIBILITY AND USE.] A school district 
408.18  that has been reorganized after June 30, 1994, under section 
408.19  122.23 is eligible for consolidation transition revenue.  
408.20  Revenue is equal to the sum of aid under subdivision 2 and levy 
408.21  under subdivision 3.  Consolidation transition revenue may only 
408.22  be used according to this section.  Revenue must be used for the 
408.23  following purposes and may be distributed among these purposes 
408.24  at the discretion of the district: 
408.25     (1) to offer early retirement incentives as provided by 
408.26  section 122.23, subdivision 20; 
408.27     (2) to reduce operating debt as defined in section 121.915; 
408.28     (3) to enhance learning opportunities for students in the 
408.29  reorganized district; and 
408.30     (4) for other costs incurred in the reorganization. 
408.31     Revenue received and utilized under clause (3) or (4) may 
408.32  be expended for operating, facilities, and/or equipment.  
408.33  Revenue received under this section shall must not be included 
408.34  in the determination of the reduction under section 124A.26, 
408.35  subdivision 1.  
408.36     Sec. 37.  Minnesota Statutes 1996, section 124.2726, 
409.1   subdivision 2, is amended to read: 
409.2      Subd. 2.  [AID.] (a) Consolidation transition aid is equal 
409.3   to $200 times the number of actual pupil units in the newly 
409.4   created district in the year of consolidation and $100 times the 
409.5   number of actual pupil units in the first year following the 
409.6   year of consolidation.  The number of pupil units used to 
409.7   calculate aid in either year shall not exceed 1,000 for 
409.8   districts consolidating July 1, 1994, and 1,500 for districts 
409.9   consolidating July 1, 1995, and thereafter.  
409.10     (b) If the total appropriation for consolidation transition 
409.11  aid for any fiscal year, plus any amount transferred under 
409.12  section 124.14, subdivision 7, is insufficient to pay all 
409.13  districts the full amount of aid earned, the department of 
409.14  children, families, and learning shall must first pay the 
409.15  districts in the first year following the year of consolidation 
409.16  the full amount of aid earned and distribute any remaining funds 
409.17  to the newly created districts in the first year of 
409.18  consolidation. 
409.19     Sec. 38.  Minnesota Statutes 1996, section 124.2726, 
409.20  subdivision 4, is amended to read: 
409.21     Subd. 4.  [NEW DISTRICTS.] If a district consolidates with 
409.22  another district that has received aid under section 124.2725 or 
409.23  124.2726 within six years of the effective date of the new 
409.24  consolidation, only the pupil units in the district or districts 
409.25  not previously reorganized shall must be counted for aid 
409.26  purposes under subdivision 2.  If two or more districts 
409.27  consolidate and all districts received aid under subdivision 2 
409.28  within six years of the effective date of the new consolidation, 
409.29  only one quarter of the pupil units in the newly created 
409.30  district shall must be used to determine aid under subdivision 2.
409.31     Sec. 39.  Minnesota Statutes 1996, section 124.2727, 
409.32  subdivision 9, is amended to read: 
409.33     Subd. 9.  [PRORATION.] (a) If the total appropriation 
409.34  available for district cooperation aid for any fiscal year, plus 
409.35  any amount transferred under section 124.14, subdivision 7, is 
409.36  insufficient to pay all districts the full amount of aid earned, 
410.1   the department of children, families, and learning shall must 
410.2   reduce each district's district cooperation revenue according to 
410.3   the calculations in paragraphs (b) to (d). 
410.4      (b) If there is insufficient district cooperation aid 
410.5   available, the department must recompute the district 
410.6   cooperation revenue by proportionally reducing the formula 
410.7   allowance and the revenue minimum to the levels that result in 
410.8   an aid entitlement, adjusted by the percentage in section 
410.9   124.195, subdivision 10, equal to the amount available.  The 
410.10  levy amounts must not be recomputed. 
410.11     (c) A district's proration aid reduction is equal to the 
410.12  lesser of zero, or the difference of the existing aid 
410.13  calculation minus the aid amount computed for the district under 
410.14  paragraph (b). 
410.15     (d) If a district's proration aid reduction is less than 
410.16  its revenue reduction, its district cooperation levy authority 
410.17  for the following year must be reduced by the amount of the 
410.18  difference between its revenue reduction and its aid reduction. 
410.19     Sec. 40.  Minnesota Statutes 1996, section 124.35, is 
410.20  amended to read: 
410.21     124.35 [LOANS TO DISTRESSED DISTRICTS.] 
410.22     Financial aid to distressed districts shall be is governed 
410.23  by the provisions of the maximum effort school aid law.  
410.24     Sec. 41.  Minnesota Statutes 1996, section 124.37, is 
410.25  amended to read: 
410.26     124.37 [POLICY AND PURPOSE.] 
410.27     The rates of increase in school population in Minnesota and 
410.28  population shifts and economic changes in recent years, and 
410.29  anticipated in future years, have required and will require 
410.30  large expenditures for performing the duty of the state and its 
410.31  subdivisions to provide a general and uniform system of public 
410.32  schools.  The state policy has been to require these school 
410.33  costs to be borne primarily by the local subdivisions.  In most 
410.34  instances the local subdivisions have been, and will be, able to 
410.35  provide the required funds by local taxation as supplemented by 
410.36  the aids usually given to all school districts from state income 
411.1   tax and other state aids.  There are, however, exceptional cases 
411.2   due to local conditions not found in most other districts where, 
411.3   either temporarily or over a considerable period of years, the 
411.4   costs will exceed the maximum which the local taxpayers can be 
411.5   reasonably expected to bear.  In some districts having bonds of 
411.6   several issues outstanding, debt service tax levy requirements 
411.7   are excessive for some years because of heavy bond principal 
411.8   payments accumulating in some of the years due to overlapping or 
411.9   short term issues.  The policy and purpose of sections 124.36 to 
411.10  124.46 is to utilize the credit of the state, to a limited 
411.11  degree, to relieve those school districts, but only those, where 
411.12  the maximum effort by the district is inadequate to provide the 
411.13  necessary money.  It is also the purpose of sections 124.36 to 
411.14  124.46 to promote efficient use of school buildings.  To that 
411.15  end, a district that receives a maximum effort loan is 
411.16  encouraged to design and use its facility to integrate social 
411.17  services and library services. 
411.18     Sec. 42.  Minnesota Statutes 1996, section 124.38, 
411.19  subdivision 1, is amended to read: 
411.20     Subdivision 1.  [SCOPE.] As used in sections 124.38 to 
411.21  124.46, the terms defined in this section shall have 
411.22  the following meanings: given them. 
411.23     Sec. 43.  Minnesota Statutes 1996, section 124.38, 
411.24  subdivision 4a, is amended to read: 
411.25     Subd. 4a.  [LEVY.] "Levy" means a district's net debt 
411.26  service levy after the reduction of debt service equalization 
411.27  aid under section 124.95, subdivision 5.  For taxes payable in 
411.28  1994 and later, each district's maximum effort debt service levy 
411.29  for purposes of subdivision 7, shall must be reduced by an equal 
411.30  number of percentage points if the commissioner determines that 
411.31  the levy reduction will not result in a statewide property tax 
411.32  as would be required under Minnesota Statutes 1992, section 
411.33  124.46, subdivision 3.  A district's levy that is adjusted under 
411.34  this section shall must not be reduced below 18.74 percent of 
411.35  the district's adjusted net tax capacity. 
411.36     Sec. 44.  Minnesota Statutes 1996, section 124.38, 
412.1   subdivision 7, is amended to read: 
412.2      Subd. 7.  [MAXIMUM EFFORT DEBT SERVICE LEVY.] "Maximum 
412.3   effort debt service levy" means the lesser of: 
412.4      (1) a levy in whichever of the following amounts is 
412.5   applicable: 
412.6      (a) in any school district receiving a debt service loan 
412.7   for a debt service levy payable in 1991 and thereafter, or 
412.8   granted a capital loan after January 1, 1990, a levy in a total 
412.9   dollar amount computed at a rate of 20 percent of adjusted net 
412.10  tax capacity for taxes payable in 1991 and thereafter; 
412.11     (b) in any school district granted a debt service loan 
412.12  after July 31, 1981, or granted a capital loan which is approved 
412.13  after July 31, 1981, a levy in a total dollar amount computed as 
412.14  a tax rate of 13.08 percent on the adjusted gross tax capacity 
412.15  for taxes payable in 1990 or a tax rate of 18.42 percent on the 
412.16  adjusted net tax capacity for taxes payable in 1991 and 
412.17  thereafter; 
412.18     (c) in any school district granted a debt service loan 
412.19  before August 1, 1981, or granted a capital loan which was 
412.20  approved before August 1, 1981, a levy in a total dollar amount 
412.21  computed as a tax rate of 12.26 percent on the adjusted gross 
412.22  tax capacity for taxes payable in 1990 or a tax rate of 17.17 
412.23  percent on the adjusted net tax capacity for taxes payable in 
412.24  1991 and thereafter, until and unless the district receives an 
412.25  additional loan; or 
412.26     (2) a levy in whichever of the following amounts is 
412.27  applicable: 
412.28     (a) in any school district which received a debt service or 
412.29  capital loan from the state before January 1, 1965, a levy in a 
412.30  total dollar amount computed as 4.10 mills on the market value 
412.31  in each year, unless the district applies or has applied for an 
412.32  additional loan subsequent to January 1, 1965, or issues or has 
412.33  issued bonds on the public market, other than bonds refunding 
412.34  state loans, subsequent to January 1, 1967; 
412.35     (b) in any school district granted a debt service or 
412.36  capital loan between January 1, 1965, and July 1, 1969, a levy 
413.1   in a total dollar amount computed as 5-1/2 mills on the market 
413.2   value in each year, until and unless the district receives an 
413.3   additional loan; 
413.4      (c) in any school district granted a debt service or 
413.5   capital loan between July 1, 1969, and July 1, 1975, a levy in a 
413.6   total dollar amount computed as 6.3 mills on market value in 
413.7   each year until and unless the district has received an 
413.8   additional loan; 
413.9      (d) in any school district for which a capital loan was 
413.10  approved prior to August 1, 1981, a levy in a total dollar 
413.11  amount equal to the sum of the amount of the required debt 
413.12  service levy and an amount which when levied annually will in 
413.13  the opinion of the commissioner be sufficient to retire the 
413.14  remaining interest and principal on any outstanding loans from 
413.15  the state within 30 years of the original date when the capital 
413.16  loan was granted; provided, that.  The school board in any 
413.17  district affected by the provisions of clause (2)(d) may elect 
413.18  instead to determine the amount of its levy according to the 
413.19  provisions of clause (1); provided further that.  If a 
413.20  district's capital loan is not paid within 30 years because it 
413.21  elects to determine the amount of its levy according to the 
413.22  provisions of clause (2)(d), the liability of the district for 
413.23  the amount of the difference between the amount it levied under 
413.24  clause (2)(d) and the amount it would have levied under clause 
413.25  (1), and for interest on the amount of that difference, shall 
413.26  must not be satisfied and discharged pursuant to Minnesota 
413.27  Statutes 1988, or an earlier edition of Minnesota Statutes if 
413.28  applicable, section 124.43, subdivision 4. 
413.29     Sec. 45.  Minnesota Statutes 1996, section 124.381, is 
413.30  amended to read: 
413.31     124.381 [NET DEBT,; DETERMINATION.] 
413.32     In computing "net debt" and in determining whether any 
413.33  school a district is eligible for a state loan, no state loans 
413.34  to any such school the district shall not be considered, 
413.35  notwithstanding the provisions of any other general or special 
413.36  law.  
414.1      Sec. 46.  Minnesota Statutes 1996, section 124.39, is 
414.2   amended to read: 
414.3      124.39 [FUND ESTABLISHED; DIVISION INTO ACCOUNTS.] 
414.4      Subdivision 1.  [MAXIMUM EFFORT SCHOOL LOAN FUND.] There 
414.5   shall be maintained in the state treasury A "maximum effort 
414.6   school loan fund" for administration of moneys to be received 
414.7   and disbursed as authorized and required by sections 124.36 to 
414.8   124.46, which must be maintained in the state treasury.  The 
414.9   fund shall must be divided into three accounts for the purposes 
414.10  specified in subdivisions 2, 3, 4, and 5.  
414.11     Subd. 2.  [DEBT SERVICE LOAN ACCOUNT.] There shall be A 
414.12  debt service loan account, must be maintained out of which loans 
414.13  under section 124.42 shall must be made.  All money appropriated 
414.14  to the fund by section 124.40 shall be paid into this account 
414.15  initially.  
414.16     Subd. 3.  [CAPITAL LOAN ACCOUNT.] There shall be A capital 
414.17  loan account, must be maintained out of which loans under 
414.18  section 124.431 shall must be made.  There shall be transferred 
414.19  to it from the debt service loan account On November 1 of each 
414.20  year all moneys therein in excess of those required for in the 
414.21  debt service loan account in excess of those for debt service 
414.22  loans then agreed to be made must be transferred to the capital 
414.23  loan account.  There shall be transferred from it to the debt 
414.24  service loan account On July 1 of each year, all moneys therein 
414.25  in the capital loan account in excess of those required for 
414.26  capital loans theretofore agreed to be made must be transferred 
414.27  to the debt service loan account.  
414.28     Subd. 4.  [LOAN REPAYMENT ACCOUNT.] There shall be A loan 
414.29  repayment account, into which shall be paid must be maintained. 
414.30  All principal and interest paid by school districts on debt 
414.31  service loans and capital loans made under section 124.42 or 
414.32  124.431 must be paid into the account.  The state's cost of 
414.33  administering the maximum effort school aid law shall must be 
414.34  paid out of this account, to an amount not exceeding $10,000 in 
414.35  any year.  As soon as possible in each year after the committee 
414.36  has determined the ratio existing between the correct market 
415.1   value of all taxable property in each school district in the 
415.2   state and the "market value in money" of such property as 
415.3   recorded in accordance with section 270.13, the commissioner of 
415.4   revenue shall cause prepare a list of all such ratios to be 
415.5   prepared.  The clerical costs of preparation of such preparing 
415.6   the list shall must be paid as a cost of administration of the 
415.7   maximum effort school aid law.  The documents division of the 
415.8   department of administration may publish and sell copies of such 
415.9   the list.  There shall be transferred out of the loan repayment 
415.10  account to the state bond fund The sums required to pay the 
415.11  principal of and interest on all school loan bonds as provided 
415.12  in section 124.46 must be transferred out of the loan repayment 
415.13  account to the state bond fund. 
415.14     Subd. 5.  [EXCESS MONEY IN LOAN REPAYMENT ACCOUNT.] The 
415.15  commissioner shall transfer from the loan repayment account to 
415.16  the credit of the debt service loan account on November 1 of 
415.17  each year all money deposited to the credit of the loan 
415.18  repayment account that will is not be required for the payment 
415.19  of principal and interest and costs as prescribed in subdivision 
415.20  4 but that will be is needed for debt service loans in the 
415.21  fiscal year beginning July 1, and those moneys are annually 
415.22  appropriated to that account for the purposes prescribed by the 
415.23  maximum effort school aid law.  Money deposited to the credit of 
415.24  the loan repayment account and not required for the transfers or 
415.25  for the payment of principal and interest due on school loan 
415.26  bonds may be invested and reinvested in securities which are 
415.27  general obligations of the United States or the state of 
415.28  Minnesota.  When all school loan bonds have been fully paid with 
415.29  interest accrued thereon, the balance remaining in the account 
415.30  shall must be transferred to the state bond fund. 
415.31     Sec. 47.  Minnesota Statutes 1996, section 124.40, is 
415.32  amended to read: 
415.33     124.40 [APPROPRIATION.] 
415.34     Subdivision 1.  [APPROPRIATION.] There is hereby 
415.35  appropriated to the fund, In addition to all sums which have 
415.36  been or may hereafter be appropriated thereto by any law, the 
416.1   net proceeds of sale of any state school loan bonds authorized 
416.2   to be issued under section 124.46, and all income received from 
416.3   the investment of said net proceeds is hereby appropriated to 
416.4   the school loan bond account in the state bond fund. 
416.5      Subd. 2.  [REMAINING MONEY.] Any amounts remaining in the 
416.6   fund on July 1 of each year, including any unused portion of the 
416.7   appropriation made in subdivision 1, shall must be available for 
416.8   use by the commissioner in making further debt service loans and 
416.9   capital loans. 
416.10     Subd. 3.  [PRINCIPAL INTEREST PAYMENTS.] All payments of 
416.11  principal and interest on debt service notes or capital loan 
416.12  contracts, as received by the commissioner, are hereby 
416.13  appropriated to the loan repayment account.  
416.14     Sec. 48.  Minnesota Statutes 1997 Supplement, section 
416.15  124.41, subdivision 2, is amended to read: 
416.16     Subd. 2.  [APPLICATION FORMS; RULES.] The commissioner, 
416.17  with the assistance of the attorney general or a designated 
416.18  assistant, shall prepare forms of applications for debt service 
416.19  loans and capital loans and instruments evidencing the loans.  
416.20  The state board shall must promulgate rules to facilitate the 
416.21  commissioner's operations in compliance with sections 124.36 to 
416.22  124.46.  The rules shall be are subject to chapter 14. 
416.23     Sec. 49.  Minnesota Statutes 1996, section 124.41, 
416.24  subdivision 3, is amended to read: 
416.25     Subd. 3.  [CLERK.] The commissioner may employ a clerk to 
416.26  administer the maximum effort school aid law.  The commissioner 
416.27  may fix the clerk's compensation, which shall must be paid out 
416.28  of the loan repayment account of the fund. 
416.29     Sec. 50.  Minnesota Statutes 1996, section 124.42, as 
416.30  amended by Laws 1997, First Special Session chapter 4, article 
416.31  4, section 12, is amended to read: 
416.32     124.42 [DEBT SERVICE LOANS.] 
416.33     Subdivision 1.  [QUALIFICATION; APPLICATION; AWARD; 
416.34  INTEREST.] Any school district in which the required levy for 
416.35  debt service in any year will exceed its maximum effort debt 
416.36  service levy by ten percent or by $5,000, whichever is less, is 
417.1   qualified for a debt service loan hereunder in an amount not 
417.2   exceeding the amount applied for, and not exceeding one percent 
417.3   of the net debt of the district, and not exceeding the 
417.4   difference between the required and the maximum effort debt 
417.5   service levy in that year.  Applications shall must be filed 
417.6   with the commissioner in each calendar year up to and including 
417.7   July 1.  The commissioner shall determine whether the applicant 
417.8   is entitled to a loan and the amount thereof, and on or before 
417.9   October 1 shall certify to each applicant district the amount 
417.10  granted and its due date.  The commissioner shall notify the 
417.11  county auditor of each county in which the district is located 
417.12  that the amount certified is available and appropriated for 
417.13  payment of principal and interest on its outstanding bonds, and. 
417.14  The auditors shall reduce by that amount the taxes otherwise 
417.15  leviable as the district's debt service levy on the tax rolls 
417.16  for that year.  Each debt service loan shall bear interest from 
417.17  its date at a rate equal to the average annual rate payable on 
417.18  Minnesota state school loan bonds most recently issued prior to 
417.19  the disbursement of the loan to the district, but in no event 
417.20  less than 3-1/2 percent per annum on the principal amount from 
417.21  time to time remaining unpaid,.  Interest is payable on December 
417.22  15 of the year following that in which the loan is received and 
417.23  annually thereafter. 
417.24     Subd. 2.  [NOTE.] Each debt service loan shall must be 
417.25  evidenced by a note which shall be executed on behalf of the 
417.26  district by the signatures of its chair or vice-chair and the 
417.27  school district clerk, shall.  The note must be dated November 1 
417.28  of the year in which executed, and shall must state its 
417.29  principal amount, interest rate, and that it is payable at the 
417.30  commissioner's office.  It shall The note must have printed 
417.31  thereon, or the commissioner shall attach thereto, a grill for 
417.32  entry of the date and amount of each payment and allocations of 
417.33  each payment to accrued interest or principal, and.  The note 
417.34  must also include a certificate to be executed by the county 
417.35  auditor of each county in which any portion of the school 
417.36  district is situated, prior to the delivery of the note, stating 
418.1   that the county auditor has entered the debt service loan 
418.2   evidenced thereby in the auditor's bond register.  The 
418.3   notes shall must be delivered to the commissioner not later than 
418.4   November 15 of the year in which executed.  The commissioner 
418.5   shall cause a record to be made and preserved showing the 
418.6   obligor district and the date and principal amount of each note. 
418.7      Subd. 3.  [WARRANT.] The commissioner shall issue to each 
418.8   district whose note has been so received a warrant on the debt 
418.9   service loan account of the maximum effort school loan fund, 
418.10  payable on presentation to the state treasurer out of any money 
418.11  in such account.  The warrant shall be issued by the 
418.12  commissioner in sufficient time to coincide with the next date 
418.13  on which the district is obligated to make principal or interest 
418.14  payments on its bonded debt in the ensuing year.  Interest shall 
418.15  must accrue from the date such warrant is issued.  The proceeds 
418.16  thereof shall must be used by the district to pay principal or 
418.17  interest on its bonded debt falling due in the ensuing year.  
418.18     Subd. 4.  [LEVY.] Each district receiving a debt service 
418.19  loan shall levy for debt service in that year and each year 
418.20  thereafter, until all its debts to the fund are paid, (a) the 
418.21  amount of its maximum effort debt service levy, or (b) the 
418.22  amount of its required debt service levy less the amount of any 
418.23  debt service loan in that year, whichever is greater.  The 
418.24  district shall remit payments to the commissioner according to 
418.25  section 124.45.  On or before By September 30 in each year, the 
418.26  commissioner shall notify the county auditor of each county 
418.27  containing taxable property situated within the school district 
418.28  of the amount of the maximum effort debt service levy of the 
418.29  district for that year, and said county auditor or auditors 
418.30  shall extend upon the tax rolls an ad valorem tax upon all 
418.31  taxable property within the district in the aggregate amount so 
418.32  certified.  
418.33     Sec. 51.  Minnesota Statutes 1997 Supplement, section 
418.34  124.431, subdivision 2, is amended to read: 
418.35     Subd. 2.  [DISTRICT REQUEST FOR REVIEW AND COMMENT.] A 
418.36  school district or a joint powers district that intends to apply 
419.1   for a capital loan must submit a proposal to the commissioner 
419.2   for review and comment according to section 121.15 on or before 
419.3   by July 1 of an odd-numbered year.  The commissioner must shall 
419.4   prepare a review and comment on the proposed facility, 
419.5   regardless of the amount of the capital expenditure required to 
419.6   construct the facility.  In addition to the information provided 
419.7   under section 121.15, subdivision 7, the commissioner shall 
419.8   require that predesign packages comparable to those required 
419.9   under section 16B.335 be prepared by the applicant school 
419.10  district.  The predesign packages must be sufficient to define 
419.11  the scope, cost, and schedule of the project and must 
419.12  demonstrate that the project has been analyzed according to 
419.13  appropriate space needs standards and also consider the 
419.14  following criteria in determining whether to make a positive 
419.15  review and comment.  
419.16     (a) To grant a positive review and comment the commissioner 
419.17  must shall determine that all of the following conditions are 
419.18  met: 
419.19     (1) the facilities are needed for pupils for whom no 
419.20  adequate facilities exist or will exist; 
419.21     (2) the district will serve, on average, at least 80 pupils 
419.22  per grade or is eligible for elementary or secondary sparsity 
419.23  revenue; 
419.24     (3) no form of cooperation with another district would 
419.25  provide the necessary facilities; 
419.26     (4) the facilities are comparable in size and quality to 
419.27  facilities recently constructed in other districts that have 
419.28  similar enrollments; 
419.29     (5) the facilities are comparable in size and quality to 
419.30  facilities recently constructed in other districts that are 
419.31  financed without a capital loan; 
419.32     (6) the district is projected to maintain or increase its 
419.33  average daily membership over the next five years or is eligible 
419.34  for elementary or secondary sparsity revenue; 
419.35     (7) the current facility poses a threat to the life, 
419.36  health, and safety of pupils, and cannot reasonably be brought 
420.1   into compliance with fire, health, or life safety codes; 
420.2      (8) the district has made a good faith effort, as evidenced 
420.3   by its maintenance expenditures, to adequately maintain the 
420.4   existing facility during the previous ten years and to comply 
420.5   with fire, health, and life safety codes and state and federal 
420.6   requirements for handicapped accessibility; 
420.7      (9) the district has made a good faith effort to encourage 
420.8   integration of social service programs within the new facility; 
420.9   and 
420.10     (10) evaluations by school boards of adjacent districts 
420.11  have been received. 
420.12     (b) The commissioner may grant a negative review and 
420.13  comment if: 
420.14     (1) the state demographer has examined the population of 
420.15  the communities to be served by the facility and determined that 
420.16  the communities have not grown during the previous five years; 
420.17     (2) the state demographer determines that the economic and 
420.18  population bases of the communities to be served by the facility 
420.19  are not likely to grow or to remain at a level sufficient, 
420.20  during the next ten years, to ensure use of the entire facility; 
420.21     (3) the need for facilities could be met within the 
420.22  district or adjacent districts at a comparable cost by leasing, 
420.23  repairing, remodeling, or sharing existing facilities or by 
420.24  using temporary facilities; 
420.25     (4) the district plans do not include cooperation and 
420.26  collaboration with health and human services agencies and other 
420.27  political subdivisions; or 
420.28     (5) if the application is for new construction, an existing 
420.29  facility that would meet the district's needs could be purchased 
420.30  at a comparable cost from any other source within the area. 
420.31     Sec. 52.  Minnesota Statutes 1996, section 124.431, 
420.32  subdivision 4, is amended to read: 
420.33     Subd. 4.  [ADJACENT DISTRICT COMMENTS.] The district shall 
420.34  must present the proposed project to the school board of each 
420.35  adjacent district at a public meeting of that district.  The 
420.36  board of an adjacent district shall must make a written 
421.1   evaluation of how the project will affect the future education 
421.2   and building needs of the adjacent district.  The board shall 
421.3   must submit the evaluation to the applying district within 30 
421.4   days of the meeting. 
421.5      Sec. 53.  Minnesota Statutes 1996, section 124.431, 
421.6   subdivision 5, is amended to read: 
421.7      Subd. 5.  [DISTRICT APPLICATION FOR CAPITAL LOAN.] The 
421.8   school board of a district desiring a capital loan shall adopt a 
421.9   resolution stating the amount proposed to be borrowed, the 
421.10  purpose for which the debt is to be incurred, and an estimate of 
421.11  the dates when the facilities for which the loan is requested 
421.12  will be contracted for and completed.  Applications for loans 
421.13  must be accompanied by a copy of the adopted board resolution 
421.14  and copies of the adjacent district evaluations.  The evaluation 
421.15  commissioner shall be retained by retain the commissioner 
421.16  evaluation as part of a permanent record of the district 
421.17  submitting the evaluation. 
421.18     Applications must be in the form and accompanied by the 
421.19  additional data required by the commissioner.  Applications must 
421.20  be received by the commissioner by September 1 of an 
421.21  odd-numbered year.  A district must resubmit an application each 
421.22  odd-numbered year.  Capital loan applications that do not 
421.23  receive voter approval or are not approved in law cancel July 1 
421.24  of the year following application.  When an application is 
421.25  received, the commissioner shall obtain from the commissioner of 
421.26  revenue the information in the revenue department's official 
421.27  records that is required to be used in computing the debt limit 
421.28  of the district under section 475.53, subdivision 4. 
421.29     Sec. 54.  Minnesota Statutes 1996, section 124.431, 
421.30  subdivision 6, is amended to read: 
421.31     Subd. 6.  [STATE BOARD REVIEW; DISTRICT PROPOSALS.] By 
421.32  November 1 of each odd-numbered year, the state board must 
421.33  review all applications for capital loans that have received a 
421.34  positive review and comment.  When reviewing applications, the 
421.35  state board shall must consider whether the criteria in 
421.36  subdivision 2 have been met.  The state board may not approve an 
422.1   application if all of the required deadlines have not been met.  
422.2   The state board may either approve or reject an application for 
422.3   a capital loan. 
422.4      Sec. 55.  Minnesota Statutes 1996, section 124.431, 
422.5   subdivision 10, is amended to read: 
422.6      Subd. 10.  [DISTRICT REFERENDUM.] After receipt of the 
422.7   review and comment on the project and before January 1 of the 
422.8   even-numbered year, the question authorizing the borrowing of 
422.9   money for the facilities must be submitted by the school board 
422.10  to the voters of the district at a regular or special election.  
422.11  The question submitted must state the total amount to be 
422.12  borrowed from all sources.  Approval of a majority of those 
422.13  voting on the question is sufficient to authorize the issuance 
422.14  of the obligations on public sale in accordance with chapter 
422.15  475.  The face of the ballot must include the following 
422.16  statement:  "APPROVAL OF THIS QUESTION DOES NOT GUARANTEE THAT 
422.17  THE SCHOOL DISTRICT WILL RECEIVE A CAPITAL LOAN FROM THE STATE.  
422.18  THE LOAN MUST BE APPROVED BY THE STATE LEGISLATURE AND IS 
422.19  DEPENDENT ON AVAILABLE FUNDING."  The district shall must mail 
422.20  to the commissioner of children, families, and learning a 
422.21  certificate by the clerk showing the vote at the election. 
422.22     Sec. 56.  Minnesota Statutes 1997 Supplement, section 
422.23  124.431, subdivision 11, is amended to read: 
422.24     Subd. 11.  [CONTRACT.] (a) Each capital loan must be 
422.25  evidenced by a contract between the school district and the 
422.26  state acting through the commissioner.  The contract must 
422.27  obligate the state to reimburse the district, from the maximum 
422.28  effort school loan fund, for eligible capital expenses for 
422.29  construction of the facility for which the loan is granted, an 
422.30  amount computed as provided in subdivision 8.  The commissioner 
422.31  must receive from the school district a certified resolution of 
422.32  the school board estimating the costs of construction and 
422.33  reciting that contracts for construction of the facilities for 
422.34  which the loan is granted have been awarded and that bonds of 
422.35  the district have been issued and sold in the amount necessary 
422.36  to pay all estimated costs of construction in excess of the 
423.1   amount of the loan.  The contract must obligate the district to 
423.2   repay the loan out of the excesses of its maximum effort debt 
423.3   service levy over its required debt service levy, including 
423.4   interest at a rate equal to the weighted average annual rate 
423.5   payable on Minnesota state school loan bonds issued for the 
423.6   project and disbursed to the districts on a reimbursement basis, 
423.7   but in no event less than 3-1/2 percent per year on the 
423.8   principal amount from time to time unpaid. 
423.9      (b) The district shall must each year, as long as it is 
423.10  indebted to the state, levy for debt service (i) the amount of 
423.11  its maximum effort debt service levy or (ii) the amount of its 
423.12  required debt service levy, whichever is greater, except as the 
423.13  required debt service levy may be reduced by a loan under 
423.14  section 124.42.  The district shall remit payments to the 
423.15  commissioner according to section 124.45. 
423.16     (c) The commissioner shall supervise the collection of 
423.17  outstanding accounts due the fund and may, by notice to the 
423.18  proper county auditor, require the maximum levy to be made as 
423.19  required in this subdivision.  Interest on capital loans must be 
423.20  paid on December 15 of the year after the year the loan is 
423.21  granted and annually in later years.  On or before By September 
423.22  30 in each year, the commissioner shall notify the county 
423.23  auditor of each county containing taxable property situated 
423.24  within the school district of the amount of the maximum effort 
423.25  debt service levy of the district for that year.  The county 
423.26  auditor or auditors shall extend upon the tax rolls an ad 
423.27  valorem tax upon all taxable property within the district in the 
423.28  aggregate amount so certified. 
423.29     Sec. 57.  Minnesota Statutes 1996, section 124.431, 
423.30  subdivision 12, is amended to read: 
423.31     Subd. 12.  [LOAN FORGIVENESS.] If any capital loan is not 
423.32  paid within 50 years after it is granted from maximum effort 
423.33  debt service levies in excess of required debt service levies, 
423.34  the liability of the school district on the loan is satisfied 
423.35  and discharged and interest on the loan ceases. 
423.36     Sec. 58.  Minnesota Statutes 1996, section 124.431, 
424.1   subdivision 13, is amended to read: 
424.2      Subd. 13.  [PARTICIPATION BY COUNTY AUDITOR; RECORD OF 
424.3   CONTRACT; PAYMENT OF LOAN.] The school district shall must file 
424.4   a copy of the capital loan contract with the county auditor of 
424.5   each county in which any part of the district is situated.  The 
424.6   county auditor shall enter the capital loan, evidenced by the 
424.7   contract, in the auditor's bond register.  The commissioner 
424.8   shall keep a record of each capital loan and contract showing 
424.9   the name and address of the district, the date of the contract, 
424.10  and the amount of the loan initially approved.  On receipt of 
424.11  the resolution required in subdivision 11, the commissioner 
424.12  shall issue warrants, which may be dispersed in accordance with 
424.13  the schedule in the contract, on the capital loan account for 
424.14  the amount that may be disbursed under subdivision 1.  Interest 
424.15  on each disbursement of the capital loan amount accrues from the 
424.16  date on which the state treasurer issues the warrant. 
424.17     Sec. 59.  Minnesota Statutes 1996, section 124.431, 
424.18  subdivision 14, is amended to read: 
424.19     Subd. 14.  [BOND SALE LIMITATIONS.] A district having an 
424.20  outstanding state loan must not issue and sell any bonds on the 
424.21  public market, except to refund state loans, unless it agrees to 
424.22  make the maximum effort debt service levy in each later year at 
424.23  the higher rate provided in section 124.38, subdivision 7, and 
424.24  unless it schedules the maturities of the bonds according to 
424.25  section 475.54, subdivision 2.  A district that refunds bonds at 
424.26  a lower interest rate may continue to make the maximum effort 
424.27  debt service levy in each later year at the current rate 
424.28  provided in section 124.38, subdivision 7, if the district can 
424.29  demonstrate to the commissioner's satisfaction that the 
424.30  district's repayments of the state loan will not be reduced 
424.31  below the previous year's level.  The district shall must report 
424.32  each sale to the commissioner of children, families, and 
424.33  learning. 
424.34     After a district's capital loan has been outstanding for 20 
424.35  years, the district must not issue bonds on the public market 
424.36  except to refund the loan. 
425.1      Sec. 60.  Minnesota Statutes 1996, section 124.44, is 
425.2   amended to read: 
425.3      124.44 [PREPAYMENTS.] 
425.4      Any school A district may at any time pay the entire 
425.5   principal or part thereof and interest then due on a note or 
425.6   contract held by the state, out of any moneys not needed for 
425.7   school purposes, and.  The district may issue and sell its 
425.8   refunding bonds in accordance with chapter 475, for such 
425.9   purpose, by actions of its school board and without the 
425.10  necessity of a vote by its electors, if such refunding bonds 
425.11  plus its net debt does not exceed the debt limit prescribed 
425.12  by said chapter 475.  Any such refunding bonds may bear interest 
425.13  at a rate or rates higher or lower than the rate payable on the 
425.14  loan or loans refunded thereby.  
425.15     Sec. 61.  Minnesota Statutes 1997 Supplement, section 
425.16  124.45, subdivision 2, is amended to read: 
425.17     Subd. 2.  [APPLICATION OF PAYMENTS.] The commissioner shall 
425.18  apply payments received under the maximum effort school aid law 
425.19  and aids withheld according to subdivision 1, paragraph (b), as 
425.20  follows:  First, to payment of interest accrued on its notes, if 
425.21  any; second, to interest on its contracts, if any; third, toward 
425.22  principal of its notes, if any; and last, toward principal of 
425.23  its contracts, if any.  While more than one note or more than 
425.24  one contract is held, priority of payment of interest shall must 
425.25  be given to the one of earliest date, and after interest accrued 
425.26  on all notes is paid, similar priority shall be given in the 
425.27  application of any remaining amount to the payment of 
425.28  principal.  In any year when the receipts from a district are 
425.29  not sufficient to pay the interest accrued on any of its notes 
425.30  or contracts, the deficiency shall must be added to the 
425.31  principal, and the commissioner shall notify the district and 
425.32  each county auditor concerned of the new amount of principal of 
425.33  the note or contract.  
425.34     Sec. 62.  Minnesota Statutes 1996, section 124.46, as 
425.35  amended by Laws 1997, chapter 187, article 5, section 17, is 
425.36  amended to read: 
426.1      124.46 [ISSUANCE AND SALE OF BONDS.] 
426.2      Subdivision 1.  [CERTIFICATION.] On or before October 1 in 
426.3   each year, the commissioner shall certify to the commissioner of 
426.4   finance the amount anticipated to be needed for debt service 
426.5   loans and capital loans to be made under the maximum effort 
426.6   school aid law prior to October 1 in the following year.  Each 
426.7   such certification of the commissioner shall also state an 
426.8   estimate of the dates and amounts the certified amount will be 
426.9   needed in the maximum effort school loan fund and an estimate as 
426.10  to the years and amounts in which payments on debt service loans 
426.11  and capital loans will be received.  
426.12     Subd. 2.  [ISSUANCE AND SALE OF BONDS; COMMISSIONER OF 
426.13  FINANCE.] Upon receipt of each such certification, subject to 
426.14  authorization as provided in subdivision 4, the commissioner of 
426.15  finance shall from time to time as needed issue and sell state 
426.16  of Minnesota school loan bonds in the aggregate principal amount 
426.17  stated in the commissioner's certificate, for the prompt and 
426.18  full payment of which, with the interest thereon, the full 
426.19  faith, credit, and taxing powers of the state are hereby 
426.20  irrevocably pledged, and.  The commissioner of finance shall 
426.21  credit the net proceeds of their the sale of the bonds to the 
426.22  purposes for which they are appropriated by section 124.40, 
426.23  subdivision 1.  Such The bonds shall be issued and sold at such 
426.24  price, in such manner, in such number of series, at such times, 
426.25  and in such form and denominations, shall bear such dates of 
426.26  issue and of maturity, either without option of prior redemption 
426.27  or subject to prepayment upon such notice and at such times and 
426.28  prices, shall bear interest at such rate or rates and payable at 
426.29  such intervals, shall be payable at such bank or banks within or 
426.30  without the state, with such provisions for registration, 
426.31  conversion, and exchange, and for the issuance of notes in 
426.32  anticipation of the sale and delivery of definitive bonds, and 
426.33  in accordance with such further provisions as the commissioner 
426.34  of finance shall determine subject to the limitations stated in 
426.35  this subdivision (but not subject to chapter 14, including 
426.36  section 14.386).  The maturity date shall in no case must not be 
427.1   more than 20 years after the date of issue of any bond and the 
427.2   principal amounts and.  The due dates shall must conform as near 
427.3   as may be with the commissioner's estimates of dates and amounts 
427.4   of payments to be received on debt service and capital loans.  
427.5   The bonds and any interest coupons appurtenant attached to them 
427.6   shall must be executed by the commissioner of finance and 
427.7   attested by the state treasurer under their official seals.  The 
427.8   signatures of these officers and their seals may be printed, 
427.9   lithographed, stamped, engraved, or otherwise reproduced 
427.10  thereon.  Each bond shall must be authenticated by the manual 
427.11  signature on its face of one of the officers or a person 
427.12  authorized to sign on behalf of a bank or trust company 
427.13  designated by the commissioner to act as registrar or other 
427.14  authenticating agent.  The commissioner of finance is authorized 
427.15  and directed to ascertain and certify to purchasers of the bonds 
427.16  the performance and existence of all acts, conditions, and 
427.17  things necessary to make them valid and binding general 
427.18  obligations of the state of Minnesota in accordance with their 
427.19  terms.  
427.20     Subd. 3.  [SCHOOL LOAN BOND ACCOUNT.] The commissioner of 
427.21  finance shall maintain a separate school loan bond account in 
427.22  the state bond fund, showing all money transferred to that fund 
427.23  for the payment of school loan bonds and all income received 
427.24  from the investment of such money.  On the first day of December 
427.25  in each year there 1, the commissioner of finance shall be 
427.26  transferred transfer to the bond account all or so as much of 
427.27  the money then on hand in the loan repayment account in the 
427.28  maximum effort school loan fund as will be sufficient, with the 
427.29  balance then on hand in said bond account, to pay all principal 
427.30  and interest then and theretofore due and to become due within 
427.31  the next ensuing year and to and including July 1 in the second 
427.32  ensuing year on school loan bonds issued and sold pursuant to 
427.33  this section.  In the event that moneys are If money is not 
427.34  available for such the transfer in the full amount required, and 
427.35  if any principal or interest on school loan bonds should become 
427.36  due at any time when there is not on hand a sufficient amount 
428.1   from any of the sources herein appropriated for the payment 
428.2   thereof, the moneys shall must be paid out of the general fund 
428.3   in the state treasury according to section 16A.641, and the 
428.4   amount necessary therefor is hereby appropriated. 
428.5      Subd. 4.  [AUTHORITY FOR ISSUANCE OF BONDS.] Bonds shall be 
428.6   issued pursuant to this section only when authorized by a law 
428.7   specifying the purpose thereof and the maximum amount of the 
428.8   proceeds authorized to be expended for that purpose.  Any act 
428.9   authorizing the issuance of bonds in the manner provided in this 
428.10  section shall, together with this section, constitute complete 
428.11  authority for the issue, and the bonds shall not be subject to 
428.12  the restrictions or limitations contained in any other law.  
428.13  Bonds issued pursuant hereto may be sold at public or private 
428.14  sale and shall be deemed "authorized securities" within the 
428.15  provisions of section 50.14 and acts amendatory thereof or 
428.16  supplemental thereto. 
428.17     Sec. 63.  Minnesota Statutes 1996, section 124.492, is 
428.18  amended to read: 
428.19     124.492 [POLICY AND PURPOSE.] 
428.20     Because of the rates of decline in school-aged population, 
428.21  population shifts and economic changes that the state has 
428.22  experienced in recent years and anticipates in future years, and 
428.23  because in some instances local school districts have not, and 
428.24  will not be able to provide the required construction funds 
428.25  through local property taxes, the purpose of the cooperative 
428.26  secondary facilities grant program is to provide an incentive to 
428.27  encourage cooperation in making available to all secondary 
428.28  students those educational programs, services and facilities 
428.29  that are most efficiently and effectively provided by a 
428.30  cooperative effort of several school districts.  The policy and 
428.31  purpose of sections 124.493 to 124.495 is to use the credit of 
428.32  the state, to a limited degree, to provide grants to cooperating 
428.33  groups of school districts to improve and expand the educational 
428.34  opportunities and facilities available to their secondary 
428.35  students. 
428.36     Sec. 64.  Minnesota Statutes 1996, section 124.493, 
429.1   subdivision 1, is amended to read: 
429.2      Subdivision 1.  [APPROVAL BY COMMISSIONER.] To the extent 
429.3   money is available, the commissioner of children, families, and 
429.4   learning may approve projects from applications submitted under 
429.5   section 124.494.  The grant money must be used only to acquire, 
429.6   construct, remodel or improve the building or site of a 
429.7   cooperative secondary facility under contracts to be entered 
429.8   into within 15 months after the date on which each grant is 
429.9   awarded. 
429.10     Sec. 65.  Minnesota Statutes 1996, section 124.494, 
429.11  subdivision 1, is amended to read: 
429.12     Subdivision 1.  [QUALIFICATION.] Any group of school 
429.13  districts that meets the criteria required under subdivision 2 
429.14  may apply for an incentive grant for construction of a new 
429.15  secondary facility or for remodeling and improving an existing 
429.16  secondary facility.  A grant for new construction must not 
429.17  exceed the lesser of $5,000,000 or 75 percent of the approved 
429.18  construction costs of a cooperative secondary education 
429.19  facility.  A grant for remodeling and improving an existing 
429.20  facility must not exceed $200,000. 
429.21     Sec. 66.  Minnesota Statutes 1996, section 124.494, 
429.22  subdivision 2, is amended to read: 
429.23     Subd. 2.  [REVIEW BY COMMISSIONER.] (a) Any A group of 
429.24  districts that submits an application for a grant shall must 
429.25  submit a proposal to the commissioner for review and comment 
429.26  under section 121.15, and.  The commissioner shall prepare a 
429.27  review and comment on the proposed facility by July 1 of an 
429.28  odd-numbered year, regardless of the amount of the capital 
429.29  expenditure required to acquire, construct, remodel or improve 
429.30  the secondary facility.  The commissioner must shall not approve 
429.31  an application for an incentive grant for any secondary facility 
429.32  unless the facility receives a favorable review and comment 
429.33  under section 121.15 and the following criteria are met: 
429.34     (1) a minimum of two or more districts, with kindergarten 
429.35  to grade 12 enrollments in each district of no more than 1,200 
429.36  pupils, enter into a joint powers agreement; 
430.1      (2) a joint powers board representing all participating 
430.2   districts is established under section 471.59 to govern the 
430.3   cooperative secondary facility; 
430.4      (3) the planned secondary facility will result in the joint 
430.5   powers district meeting the requirements of Minnesota Rules, 
430.6   parts 3500.2010 and 3500.2110; 
430.7      (4) at least 198 pupils would be served in grades 10 to 12, 
430.8   264 pupils would be served in grades 9 to 12, or 396 pupils 
430.9   would be served in grades 7 to 12; 
430.10     (5) no more than one superintendent is employed by the 
430.11  joint powers board as a result of the cooperative secondary 
430.12  facility agreement; 
430.13     (6) a statement of need is submitted, that may include 
430.14  reasons why the current secondary facilities are inadequate, 
430.15  unsafe or inaccessible to the handicapped; 
430.16     (7) an educational plan is prepared, that includes input 
430.17  from both community and professional staff; 
430.18     (8) a combined seniority list for all participating 
430.19  districts is developed by the joint powers board; 
430.20     (9) an education program is developed that provides for 
430.21  more learning opportunities and course offerings, including the 
430.22  offering of advanced placement courses, for students than is 
430.23  currently available in any single member district; 
430.24     (10) a plan is developed for providing instruction of any 
430.25  resident students in other districts when distance to the 
430.26  secondary education facility makes attendance at the facility 
430.27  unreasonably difficult or impractical; and 
430.28     (11) the joint powers board established under clause (2) 
430.29  discusses with technical colleges located in the area how 
430.30  vocational education space in the cooperative secondary facility 
430.31  could be jointly used for secondary and post-secondary purposes. 
430.32     (b) To the extent possible, the joint powers board is 
430.33  encouraged to provide for severance pay or for early retirement 
430.34  incentives under section 125.611, for any teacher or 
430.35  administrator, as defined under section 125.12, subdivision 1, 
430.36  who is placed on unrequested leave as a result of the 
431.1   cooperative secondary facility agreement. 
431.2      (c) For the purpose of paragraph (a), clause (8), each 
431.3   school district must be considered to have started school each 
431.4   year on the same date. 
431.5      (d) The districts may develop a plan that provides for the 
431.6   location of social service, health, and other programs serving 
431.7   pupils and community residents within the cooperative secondary 
431.8   facility.  The commissioner shall consider this plan when 
431.9   preparing a review and comment on the proposed facility. 
431.10     (e) The districts shall must schedule and conduct a meeting 
431.11  on library services.  The school districts, in cooperation with 
431.12  the regional public library system and its appropriate member 
431.13  libraries, shall must discuss the possibility of including 
431.14  jointly operated library services at the cooperative secondary 
431.15  facility. 
431.16     (f) The school board of a district that has reorganized 
431.17  under section 122.23 or 122.243 and that is applying for a grant 
431.18  for remodeling or improving an existing facility may act in the 
431.19  place of a joint powers board to meet the criteria of this 
431.20  subdivision. 
431.21     Sec. 67.  Minnesota Statutes 1996, section 124.494, 
431.22  subdivision 2a, is amended to read: 
431.23     Subd. 2a.  [REORGANIZING DISTRICTS.] A school district that 
431.24  is a member of a joint powers board established under 
431.25  subdivision 2 and that is planning to reorganize under section 
431.26  122.21, 122.22, or 122.23 must notify the joint powers board one 
431.27  year in advance of the effective date of the reorganization.  
431.28  Notwithstanding section 471.59 or any other law to the contrary, 
431.29  the board of a district that reorganizes under section 122.21, 
431.30  122.22, or 122.23 may appoint representatives to the joint 
431.31  powers board who will serve on the joint powers board for two 
431.32  years after the effective date of the reorganization if 
431.33  authorized in the agreement establishing the joint powers board 
431.34  to govern the cooperative secondary facility.  These 
431.35  representatives shall have the same powers as representatives of 
431.36  any other school district under the joint powers agreement. 
432.1      Sec. 68.  Minnesota Statutes 1996, section 124.494, 
432.2   subdivision 3, is amended to read: 
432.3      Subd. 3.  [DISTRICT PROCEDURES.] A joint powers board of a 
432.4   secondary district established under subdivision 2 or a school 
432.5   board of a reorganized district that intends to apply for a 
432.6   grant shall must adopt a resolution stating the proposed costs 
432.7   of the project, the purpose for which the costs are to be 
432.8   incurred, and an estimate of the dates when the facilities for 
432.9   which the grant is requested will be contracted for and 
432.10  completed.  Applications for the state grants must be 
432.11  accompanied by (a) a copy of the resolution, (b) a certificate 
432.12  by the clerk and treasurer of the joint powers board showing the 
432.13  current outstanding indebtedness of each member district, and 
432.14  (c) a certificate by the county auditor of each county in which 
432.15  a portion of the joint powers district lies showing the 
432.16  information in the auditor's official records that is required 
432.17  to be used in computing the debt limit of the district under 
432.18  section 475.53, subdivision 4.  The clerk's and treasurer's 
432.19  certificate shall must show, as to each outstanding bond issue 
432.20  of each member district, the amount originally issued, the 
432.21  purpose for which issued, the date of issue, the amount 
432.22  remaining unpaid as of the date of the resolution, and the 
432.23  interest rates and due dates and amounts of principal thereon.  
432.24  Applications and necessary data must be in the form prescribed 
432.25  by the commissioner and the rules of the state board of 
432.26  education.  Applications must be received by the commissioner by 
432.27  September 1 of an odd-numbered year.  When an application is 
432.28  received, the commissioner shall obtain from the commissioner of 
432.29  revenue, and from the public utilities commission when required, 
432.30  the information in their official records that is required to be 
432.31  used in computing the debt limit of the joint powers district 
432.32  under section 475.53, subdivision 4. 
432.33     Sec. 69.  Minnesota Statutes 1996, section 124.494, 
432.34  subdivision 5, is amended to read: 
432.35     Subd. 5.  [REFERENDUM; BOND ISSUE.] Within 180 days after 
432.36  being awarded a grant for a new facility under subdivision 4, 
433.1   the joint powers board shall must submit the question of 
433.2   authorizing the borrowing of funds for the secondary facility to 
433.3   the voters of the joint powers district at a special election, 
433.4   which may be held in conjunction with the annual election of the 
433.5   school board members of the member districts.  The question 
433.6   submitted shall must state the total amount of funding needed 
433.7   from all sources.  A majority of those voting in the affirmative 
433.8   on the question is sufficient to authorize the joint powers 
433.9   board to accept the grant and to issue the bonds on public sale 
433.10  in accordance with chapter 475.  The clerk of the joint powers 
433.11  board must certify the vote of the bond election to the 
433.12  commissioner of children, families, and learning.  If the 
433.13  question is approved by the voters, the commissioner shall 
433.14  notify the approved applicant districts that the grant amount 
433.15  certified under subdivision 4 is available and appropriated for 
433.16  payment under this subdivision.  If a majority of those voting 
433.17  on the question do not vote in the affirmative, the grant must 
433.18  be canceled. 
433.19     Sec. 70.  Minnesota Statutes 1996, section 124.494, 
433.20  subdivision 7, is amended to read: 
433.21     Subd. 7.  [CONSOLIDATION.] A group of districts that 
433.22  operates a cooperative secondary facility that was acquired, 
433.23  constructed, remodeled, or improved under this section and 
433.24  implements consolidation proceedings according to section 
433.25  122.23, may propose a temporary school board structure in the 
433.26  petition or resolution required under section 122.23, 
433.27  subdivision 2.  The districts may propose the number of existing 
433.28  school board members of each district to become members of the 
433.29  school board of the consolidated district and a method to 
433.30  gradually reduce the membership to six or seven.  The proposal 
433.31  shall must be approved, disapproved, or modified by the state 
433.32  board of education.  The election requirements of section 
433.33  122.23, subdivision 18, do not apply to a proposal approved by 
433.34  the state board.  Elections conducted after the effective date 
433.35  of the consolidation are subject to the Minnesota election law. 
433.36     Sec. 71.  Minnesota Statutes 1996, section 124.4945, is 
434.1   amended to read: 
434.2      124.4945 [LEVY FOR SEVERANCE PAY.] 
434.3      A joint powers board established under section 124.494 may 
434.4   make a levy to provide severance pay and early retirement 
434.5   incentives under section 125.611, for any teacher as defined 
434.6   under section 125.12, subdivision 1, who is placed on 
434.7   unrequested leave as a result of the cooperative secondary 
434.8   facility agreement.  A joint powers board making a levy shall 
434.9   must certify to each participating district tax levies 
434.10  sufficient to raise the amount necessary to provide the 
434.11  district's portion of severance pay and early retirement 
434.12  incentives.  The tax levy certified to each district must be 
434.13  expressed as a local tax rate, that, when applied to the 
434.14  adjusted net tax capacity of all of the participating districts 
434.15  raises the amount necessary to provide severance pay and early 
434.16  retirement incentives.  Each participating school district shall 
434.17  must include the levy in the next tax roll which it shall 
434.18  certify to the county auditor, and shall must remit the 
434.19  collections of the levy to the joint powers board. 
434.20     Sec. 72.  Minnesota Statutes 1996, section 124.646, is 
434.21  amended to read: 
434.22     124.646 [LUNCH AID; FOOD SERVICE ACCOUNTING.] 
434.23     Subdivision 1.  [SCHOOL LUNCH AID COMPUTATION.] Each school 
434.24  year, school the state must pay districts participating in the 
434.25  national school lunch program shall be paid by the state in the 
434.26  amount of 6.5 cents for each full paid, reduced, and free 
434.27  student lunch served to students in the district.  
434.28     Subd. 3.  [APPLICATION.] School districts shall apply to 
434.29  the department of children, families, and learning for this 
434.30  payment on forms provided by the department. 
434.31     Subd. 4.  [SCHOOL FOOD SERVICE FUND.] (a) The expenses 
434.32  described in this subdivision must be recorded as provided in 
434.33  this subdivision. 
434.34     (b) In each school district, the expenses for a school food 
434.35  service program for pupils must be attributed to a school food 
434.36  service fund.  Under a food service program, the school food 
435.1   service may prepare or serve milk, meals, or snacks in 
435.2   connection with school or community service activities. 
435.3      (c) Revenues and expenditures for food service activities 
435.4   must be recorded in the food service fund.  The costs of 
435.5   processing applications, accounting for meals, preparing and 
435.6   serving food, providing kitchen custodial services, and other 
435.7   expenses involving the preparing of meals or the kitchen section 
435.8   of the lunchroom may be charged to the food service fund or to 
435.9   the general fund of the district.  The costs of lunchroom 
435.10  supervision, lunchroom custodial services, lunchroom utilities, 
435.11  and other administrative costs of the food service program must 
435.12  be charged to the general fund. 
435.13     That portion of superintendent and fiscal manager costs 
435.14  that can be documented as attributable to the food service 
435.15  program may be charged to the food service fund provided that 
435.16  the school district does not employ or contract with a food 
435.17  service director or other individual who manages the food 
435.18  service program, or food service management company.  If the 
435.19  cost of the superintendent or fiscal manager is charged to the 
435.20  food service fund, the charge must be at a wage rate not to 
435.21  exceed the statewide average for food service directors as 
435.22  determined by the department of children, families, and learning.
435.23     (d) Capital expenditures for the purchase of food service 
435.24  equipment must be made from the capital fund and not the food 
435.25  service fund, unless two conditions apply: 
435.26     (1) the unreserved balance in the food service fund at the 
435.27  end of the last fiscal year is greater than the cost of the 
435.28  equipment to be purchased; and 
435.29     (2) the department of children, families, and learning has 
435.30  approved the purchase of the equipment. 
435.31     (e) If the two conditions set out in paragraph (d) apply, 
435.32  the equipment may be purchased from the food service fund. 
435.33     (f) If a deficit in the food service fund exists at the end 
435.34  of a fiscal year, and the deficit is not eliminated by revenues 
435.35  from food service operations in the next fiscal year, then the 
435.36  deficit must be eliminated by a permanent fund transfer from the 
436.1   general fund at the end of that second fiscal year.  However, if 
436.2   a district contracts with a food service management company 
436.3   during the period in which the deficit has accrued, the deficit 
436.4   must be eliminated by a payment from the food service management 
436.5   company. 
436.6      (g) Notwithstanding paragraph (f), a district may incur a 
436.7   deficit in the food service fund for up to three years without 
436.8   making the permanent transfer if the district submits to the 
436.9   commissioner by January 1 of the second fiscal year a plan for 
436.10  eliminating that deficit at the end of the third fiscal year. 
436.11     (h) If a surplus in the food service fund exists at the end 
436.12  of a fiscal year for three successive years, a district may 
436.13  recode for that fiscal year the costs of lunchroom supervision, 
436.14  lunchroom custodial services, lunchroom utilities, and other 
436.15  administrative costs of the food service program charged to the 
436.16  general fund according to paragraph (c) and charge those costs 
436.17  to the food service fund in a total amount not to exceed the 
436.18  amount of surplus in the food service fund. 
436.19     Sec. 73.  Minnesota Statutes 1996, section 124.6462, is 
436.20  amended to read: 
436.21     124.6462 [LACTOSE REDUCED MILK.] 
436.22     If a nonpublic school or school district 
436.23     (1) receives school lunch aid under section 124.646 or 
436.24  participates in the school breakfast program; and 
436.25     (2) receives a written request from the parent of a pupil 
436.26  who is lactose intolerant, the nonpublic school or school 
436.27  district shall must make available lactose reduced milk; milk 
436.28  fortified with lactase in liquid, tablet, granular, or other 
436.29  form; or milk to which lactobacillus acidophilus has been added 
436.30  for the pupil.  Notwithstanding any law, local ordinance, or 
436.31  local regulation to the contrary, a school may pour or serve 
436.32  portions of any product required by this section from a large 
436.33  container of the product at the time and place the pupil is 
436.34  being served. 
436.35     Sec. 74.  Minnesota Statutes 1996, section 124.6469, 
436.36  subdivision 3, is amended to read: 
437.1      Subd. 3.  [PROGRAM REIMBURSEMENT.] (a) State funds are 
437.2   provided to reimburse school breakfasts.  Each school year, the 
437.3   state shall must reimburse schools in the amount of 5.1 cents 
437.4   for each fully paid breakfast and for each free and reduced 
437.5   price breakfast not eligible for the "severe need" rate. 
437.6      (b) In addition to paragraph (a), each school year the 
437.7   state shall must reimburse schools 10.5 cents for each free and 
437.8   reduced price breakfast not eligible for the "severe need" rate 
437.9   if between 33 and 40 percent of the school lunches served during 
437.10  the second preceding school year were served free or at a 
437.11  reduced price. 
437.12     Sec. 75.  Minnesota Statutes 1996, section 124.647, is 
437.13  amended to read: 
437.14     124.647 [WAIVER; PILOT SCHOOL BREAKFAST PROGRAMS.] 
437.15     The commissioner of children, families, and learning shall 
437.16  request a waiver from the United States government as necessary 
437.17  to allow pilot school breakfast programs to be implemented in 
437.18  school districts where no program currently exists.  The pilot 
437.19  school breakfast program shall must provide students with 
437.20  breakfasts designed to be taken with the student and consumed 
437.21  away from the school site. 
437.22     Sec. 76.  Minnesota Statutes 1996, section 124.6471, is 
437.23  amended to read: 
437.24     124.6471 [SCHOOL BREAKFAST INCENTIVE.] 
437.25     The commissioner of children, families, and learning may 
437.26  provide a cash incentive to schools to increase participation in 
437.27  school breakfast programs or to initiate a school breakfast 
437.28  program if none currently exists. 
437.29     Sec. 77.  Minnesota Statutes 1996, section 124.6472, is 
437.30  amended to read: 
437.31     124.6472 [SCHOOL BREAKFAST DISTRICTS TO OFFER PROGRAM.] 
437.32     Subdivision 1.  [BREAKFAST REQUIRED.] A school district 
437.33  shall must offer a school breakfast program in every school 
437.34  building in which at least 33 percent of the school lunches 
437.35  served during the second preceding school year were served free 
437.36  or at a reduced price. 
438.1      Subd. 2.  [EXEMPTION.] Subdivision 1 does not apply to a 
438.2   school in which fewer than 25 pupils are expected to take part 
438.3   in the program.  It also does not apply to a school district 
438.4   that does not participate in the national school lunch program. 
438.5      Sec. 78.  Minnesota Statutes 1996, section 124.648, as 
438.6   amended by Laws 1997, chapter 187, article 4, section 4, is 
438.7   amended to read: 
438.8      124.648 [MILK PROGRAM.] 
438.9      Subdivision 1.  [LEGISLATIVE FINDINGS.] The legislature 
438.10  finds that for best health and well-being, school children in 
438.11  the state should receive at least one serving of milk each day.  
438.12  The school milk program established in this section is to 
438.13  provide school districts in the state with added resources so 
438.14  that all kindergarten students in public and nonpublic schools 
438.15  may have access to wholesome milk on a daily basis. 
438.16     Subd. 2.  [ESTABLISHMENT; SCHOOL PARTICIPATION.] Each 
438.17  school district in the state is encouraged to participate in the 
438.18  state-supported school milk program for kindergartners.  
438.19  Participating districts shall must provide one serving of milk 
438.20  on each school day to each kindergarten student attending a 
438.21  public or nonpublic school in the district.  No student is 
438.22  required to accept the milk that is provided by the district.  
438.23  The program must be promoted and operated under the direction of 
438.24  the commissioner or the commissioner's designee. 
438.25     Subd. 3.  [PROGRAM GUIDELINES; DUTIES OF THE COMMISSIONER.] 
438.26  (a) The commissioner shall: 
438.27     (1) encourage all districts to participate in the school 
438.28  milk program for kindergartners; 
438.29     (2) prepare program guidelines, not subject to chapter 14 
438.30  until July 1, 1998, which will effectively and efficiently 
438.31  distribute appropriated and donated money to participating 
438.32  districts; and 
438.33     (3) seek donations and matching funds from appropriate 
438.34  private and public sources. 
438.35     (b) Program guidelines may provide for disbursement to 
438.36  districts through a mechanism of prepayments or by reimbursement 
439.1   for approved program expenses. 
439.2      (c) It is suggested that the benefits of the school milk 
439.3   program may reach the largest number of kindergarten students if 
439.4   districts are allowed to submit annual bids stating the 
439.5   per-serving level of support that would be acceptable to the 
439.6   district districts for their participation in the program.  The 
439.7   commissioner would review all bids received and approve bids in 
439.8   sufficient number and value to maximize the provision of milk to 
439.9   kindergarten students consistent with available funds. 
439.10     Subd. 4.  [REIMBURSEMENT.] In accordance with program 
439.11  guidelines, the commissioner shall prepay or reimburse 
439.12  participating school districts for the state share of the 
439.13  district's cost for providing milk to kindergarten students. 
439.14     Sec. 79.  Minnesota Statutes 1996, section 124.71, 
439.15  subdivision 1, is amended to read: 
439.16     Subdivision 1.  School district as used in sections 124.71 
439.17  to 124.76 means any school district in the state of Minnesota, 
439.18  however organized and wherever located. 
439.19     Sec. 80.  Minnesota Statutes 1996, section 124.72, is 
439.20  amended to read: 
439.21     124.72 [APPLICATION OF LIMITING TAX LEGISLATION.] 
439.22     Notwithstanding the provisions of section 471.69 or section 
439.23  471.75, or of any other provision of law which by per capita 
439.24  limitation, local tax rate limitation, or otherwise, limits the 
439.25  power of a school district to incur any debt or to issue any 
439.26  warrant or order, a school district has the powers in sections 
439.27  124.71 to 124.76 specifically conferred upon it and all powers 
439.28  incident and necessary to carrying out the purposes of sections 
439.29  124.71 to 124.76. 
439.30     Sec. 81.  Minnesota Statutes 1996, section 124.73, is 
439.31  amended to read: 
439.32     124.73 [AUTHORITY TO BORROW MONEY,; LIMITATIONS.] 
439.33     Subdivision 1.  [BORROWING AUTHORITY.] The board of any 
439.34  school district may borrow money upon negotiable tax 
439.35  anticipation certificates of indebtedness, in the manner and 
439.36  subject to the limitations set forth in sections 124.71 to 
440.1   124.76, for the purpose of anticipating general 
440.2   taxes theretofore already levied by the district for school 
440.3   purposes, but.  The aggregate of such the borrowing under this 
440.4   subdivision shall must never exceed 75 percent of such the taxes 
440.5   which are due and payable in the calendar year, and as to which 
440.6   taxes no penalty for nonpayment or delinquency has attached.  In 
440.7   determining the amount of taxes due and payable in the calendar 
440.8   year, any amounts paid by the state to replace such taxes, 
440.9   whether paid in that calendar year or not, shall must be 
440.10  included. 
440.11     Subd. 2.  [LIMITATIONS.] The board may also borrow money in 
440.12  the manner and subject to the limitations set forth in sections 
440.13  124.71 to 124.76 in anticipation of receipt of state aids for 
440.14  schools as defined in Minnesota Statutes and of federal school 
440.15  aids to be distributed by or through the department of children, 
440.16  families, and learning.  The aggregate of such borrowings under 
440.17  this subdivision shall never exceed 75 percent of such aids 
440.18  which are receivable by said school district in the school year 
440.19  (from July 1 to June 30) in which the money is borrowed, as 
440.20  estimated and certified by the commissioner. 
440.21     Sec. 82.  Minnesota Statutes 1996, section 124.74, is 
440.22  amended to read: 
440.23     124.74 [ENABLING RESOLUTION; FORM OF CERTIFICATES OF 
440.24  INDEBTEDNESS.] 
440.25     The board may authorize and effect such borrowing, and may 
440.26  issue such certificates of indebtedness upon passage of a 
440.27  resolution specifying the amount and purposes for which it deems 
440.28  such borrowing is necessary, which.  The resolution shall must 
440.29  be adopted by a vote of at least two-thirds of its members.  The 
440.30  board shall must fix the amount, date, maturity, form, 
440.31  denomination, and other details thereof of the certificates of 
440.32  indebtedness, not inconsistent herewith, and shall with this 
440.33  chapter.  The board must fix the date and place for receipt of 
440.34  bids for the purchase thereof of the certificates when bids are 
440.35  required and direct the clerk to give notice thereof of the date 
440.36  and place for bidding. 
441.1      Sec. 83.  Minnesota Statutes 1996, section 124.75, is 
441.2   amended to read: 
441.3      124.75 [REPAYMENT; MATURITY DATE OF CERTIFICATES; 
441.4   INTEREST.] 
441.5      The proceeds of the current tax levies and future state aid 
441.6   receipts or other school funds which may become available shall 
441.7   must be applied to the extent necessary to repay such 
441.8   certificates and the full faith and credit of the school 
441.9   district shall be pledged to their payment of the certificates.  
441.10  Certificates issued in anticipation of receipt of aids shall 
441.11  mature not later than the anticipated date of receipt of the 
441.12  aids so anticipated as estimated by the commissioner, but in no 
441.13  event later than three months after the close of the school year 
441.14  in which issued.  Certificates issued in anticipation of receipt 
441.15  of taxes shall mature not later than the anticipated date of 
441.16  receipt in full of the taxes so anticipated, but in no event 
441.17  later than three months after the close of the calendar year in 
441.18  which issued.  The certificates shall must be sold at not less 
441.19  than par.  The certificates shall must bear interest after 
441.20  maturity until paid at the rate they bore before maturity and 
441.21  any interest accruing before or after maturity shall must be 
441.22  paid from any available school funds.  
441.23     Sec. 84.  Minnesota Statutes 1996, section 124.755, 
441.24  subdivision 2, is amended to read: 
441.25     Subd. 2.  [NOTIFICATIONS; PAYMENT; APPROPRIATION.] (a) If a 
441.26  school district believes that it may be unable to make a 
441.27  principal or interest payment on any outstanding debt obligation 
441.28  on the date that payment is due, it must notify the commissioner 
441.29  of children, families, and learning of that fact as soon as 
441.30  possible, but not less than 15 working days before the date that 
441.31  principal or interest payment is due.  The notice shall must 
441.32  include the name of the school district, an identification of 
441.33  the debt obligation issue in question, the date the payment is 
441.34  due, the amount of principal and interest due on the payment 
441.35  date, the amount of principal or interest that the school 
441.36  district will be unable to repay on that date, the paying agent 
442.1   for the debt obligation, the wire transfer instructions to 
442.2   transfer funds to that paying agent, and an indication as to 
442.3   whether a payment is being requested by the district under this 
442.4   section.  If a paying agent becomes aware of a potential 
442.5   default, it shall inform the commissioner of children, families, 
442.6   and learning of that fact.  After receipt of a notice which 
442.7   requests a payment under this section, after consultation with 
442.8   the school district and the paying agent, and after verification 
442.9   of the accuracy of the information provided, the commissioner of 
442.10  children, families, and learning shall notify the commissioner 
442.11  of finance of the potential default.  The notice must include a 
442.12  final figure as to the amount due that the district will be 
442.13  unable to repay on the date due.  
442.14     (b) Except as provided in subdivision 9, upon receipt of 
442.15  this notice from the commissioner of children, families, and 
442.16  learning, which must include a final figure as to the amount due 
442.17  that the school district will be unable to repay on the date 
442.18  due, the commissioner of finance shall issue a warrant and 
442.19  authorize the commissioner of children, families, and learning 
442.20  to pay to the paying agent for the debt obligation the specified 
442.21  amount on or before the date due.  The amounts needed for the 
442.22  purposes of this subdivision are annually appropriated to the 
442.23  department of children, families, and learning from the state 
442.24  general fund. 
442.25     (c) The departments of children, families, and learning and 
442.26  finance shall must jointly develop detailed procedures for 
442.27  school districts to notify the state that they have obligated 
442.28  themselves to be bound by the provisions of this section, 
442.29  procedures for school districts and paying agents to notify the 
442.30  state of potential defaults and to request state payment under 
442.31  this section, and procedures for the state to expedite payments 
442.32  to prevent defaults.  The procedures are not subject to chapter 
442.33  14. 
442.34     Sec. 85.  Minnesota Statutes 1996, section 124.755, 
442.35  subdivision 3, is amended to read: 
442.36     Subd. 3.  [SCHOOL DISTRICT BOUND; INTEREST RATE ON STATE 
443.1   PAID AMOUNT.] If, at the request of a school district, the state 
443.2   has paid part or all of the principal or interest due on a 
443.3   school district's debt obligation on a specific date, the school 
443.4   district is bound by all provisions of this section and the 
443.5   amount paid shall bear taxable interest from the date paid until 
443.6   the date of repayment at the state treasurer's invested cash 
443.7   rate as it is certified by the commissioner of finance.  
443.8   Interest shall only accrue on the amounts paid and outstanding 
443.9   less the reduction in aid under subdivision 4 and other payments 
443.10  received from the district. 
443.11     Sec. 86.  Minnesota Statutes 1996, section 124.755, 
443.12  subdivision 4, is amended to read: 
443.13     Subd. 4.  [PLEDGE OF DISTRICT'S FULL FAITH AND CREDIT.] If, 
443.14  at the request of a school district, the state has paid part or 
443.15  all of the principal or interest due on a school district's debt 
443.16  obligation on a specific date, the pledge of the full faith and 
443.17  credit and unlimited taxing powers of the school district to 
443.18  repay the principal and interest due on those debt obligations 
443.19  shall also, without an election or the requirement of a further 
443.20  authorization, become a pledge of the full faith and credit and 
443.21  unlimited taxing powers of the school district to repay to the 
443.22  state the amount paid, with interest.  Amounts paid by the state 
443.23  shall must be repaid in the order in which the state payments 
443.24  were made. 
443.25     Sec. 87.  Minnesota Statutes 1996, section 124.755, 
443.26  subdivision 5, is amended to read: 
443.27     Subd. 5.  [AID REDUCTION FOR REPAYMENT.] Except as provided 
443.28  in this subdivision, the state shall must reduce the state aid 
443.29  payable to the school district under chapters 124, 124A, and 
443.30  273, according to the schedule in section 124.155, subdivision 
443.31  2, by the amount paid by the state under this section on behalf 
443.32  of the school district, plus the interest due on it, and the 
443.33  amount reduced shall must revert from the appropriate account to 
443.34  the state general fund.  Payments from the school endowment fund 
443.35  or any federal aid payments shall not be reduced.  If, after 
443.36  review of the financial situation of the school district, the 
444.1   commissioner of children, families, and learning advises the 
444.2   commissioner of finance that a total reduction of the aids would 
444.3   cause an undue hardship on or an undue disruption of the 
444.4   educational program of the school district, the commissioner of 
444.5   children, families, and learning, with the approval of the 
444.6   commissioner of finance, may establish a different schedule for 
444.7   reduction of those aids to repay the state.  The amount of aids 
444.8   to be reduced are decreased by any amounts repaid to the state 
444.9   by the school district from other revenue sources. 
444.10     Sec. 88.  Minnesota Statutes 1996, section 124.755, 
444.11  subdivision 6, is amended to read: 
444.12     Subd. 6.  [TAX LEVY FOR REPAYMENT.] (a) With the approval 
444.13  of the commissioner of children, families, and learning, a 
444.14  school district may levy in the year the state makes a payment 
444.15  under this section an amount up to the amount necessary to 
444.16  provide funds for the repayment of the amount paid by the state 
444.17  plus interest through the date of estimated repayment by the 
444.18  school district.  The proceeds of this levy may be used only for 
444.19  this purpose unless they are in excess of the amount actually 
444.20  due, in which case the excess shall be used to repay other state 
444.21  payments made under this section or shall be deposited in the 
444.22  debt redemption fund of the school district.  This levy shall be 
444.23  an increase in the levy limits of the school district for 
444.24  purposes of section 275.065, subdivision 6.  The amount of aids 
444.25  to be reduced to repay the state shall be decreased by the 
444.26  amount levied.  This levy by the school district is not eligible 
444.27  for debt service equalization under section 124.95. 
444.28     (b) If the state is not repaid in full for a payment made 
444.29  under this section by November 30 of the calendar year following 
444.30  the year in which the state makes the payment, the commissioner 
444.31  of children, families, and learning must shall require the 
444.32  school district to certify a property tax levy in an amount up 
444.33  to the amount necessary to provide funds for repayment of the 
444.34  amount paid by the state plus interest through the date of 
444.35  estimated repayment by the school district.  To prevent undue 
444.36  hardship, the commissioner may allow the district to certify the 
445.1   levy over a five-year period.  The proceeds of the levy may be 
445.2   used only for this purpose unless they are in excess of the 
445.3   amount actually due, in which case the excess shall be used to 
445.4   repay other state payments made under this section or shall be 
445.5   deposited in the debt redemption fund of the school district.  
445.6   This levy shall be an increase in the levy limits of the school 
445.7   district for purposes of section 275.065, subdivision 6.  If the 
445.8   commissioner orders the district to levy, the amount of aids 
445.9   reduced to repay the state shall be decreased by the amount 
445.10  levied.  This levy by the school district is not eligible for 
445.11  debt service equalization under section 124.95 or any successor 
445.12  provision.  A levy under this subdivision must be explained as a 
445.13  specific increase at the meeting required under section 275.065, 
445.14  subdivision 6.  
445.15     Sec. 89.  Minnesota Statutes 1996, section 124.755, 
445.16  subdivision 7, is amended to read: 
445.17     Subd. 7.  [ELECTION AS TO MANDATORY APPLICATION.] A school 
445.18  district may covenant and obligate itself, prior to the issuance 
445.19  of an issue of debt obligations, to notify the commissioner of 
445.20  children, families, and learning of a potential default and to 
445.21  use the provisions of this section to guarantee payment of the 
445.22  principal and interest on those debt obligations when due.  If 
445.23  the school district obligates itself to be bound by this 
445.24  section, it shall must covenant in the resolution that 
445.25  authorizes the issuance of the debt obligations to deposit with 
445.26  the paying agent three business days prior to the date on which 
445.27  a payment is due an amount sufficient to make that payment or to 
445.28  notify the commissioner of children, families, and learning 
445.29  under subdivision 1 that it will be unable to make all or a 
445.30  portion of that payment.  A school district that has obligated 
445.31  itself shall must include a provision in its agreement with the 
445.32  paying agent for that issue that requires the paying agent to 
445.33  inform the commissioner of children, families, and learning if 
445.34  it becomes aware of a potential default in the payment of 
445.35  principal or interest on that issue or if, on the day two 
445.36  business days prior to the date a payment is due on that issue, 
446.1   there are insufficient funds to make the payment on deposit with 
446.2   the paying agent.  If a school district either covenants to be 
446.3   bound by this section or accepts state payments under this 
446.4   section to prevent a default of a particular issue of debt 
446.5   obligations, the provisions of this section shall be binding as 
446.6   to that issue as long as any debt obligation of that issue 
446.7   remain outstanding.  If the provisions of this section are or 
446.8   become binding for more than one issue of debt obligations and a 
446.9   district is unable to make payments on one or more of those 
446.10  issues, it shall the district must continue to make payments on 
446.11  the remaining issues.  
446.12     Sec. 90.  Minnesota Statutes 1996, section 124.755, 
446.13  subdivision 8, is amended to read: 
446.14     Subd. 8.  [MANDATORY PLAN; TECHNICAL ASSISTANCE.] If the 
446.15  state makes payments on behalf of a district under this section 
446.16  or the district defaults in the payment of principal or interest 
446.17  on an outstanding debt obligation, it shall must submit a plan 
446.18  to the commissioner of children, families, and learning for 
446.19  approval specifying the measures it intends to implement to 
446.20  resolve the issues which led to its inability to make the 
446.21  payment and to prevent further defaults.  The department shall 
446.22  must provide technical assistance to the school district in 
446.23  preparing its plan.  If the commissioner determines that 
446.24  a school district's plan is not adequate, the commissioner shall 
446.25  notify the school district that the plan has been disapproved, 
446.26  the reasons for the disapproval, and that the state shall not 
446.27  make future payments under this section for debt obligations 
446.28  issued after the date specified in that notice until its plan is 
446.29  approved.  The commissioner may also notify the school district 
446.30  that until its plan is approved, other aids due the district 
446.31  will be withheld after a date specified in the notice. 
446.32     Sec. 91.  Minnesota Statutes 1996, section 124.755, 
446.33  subdivision 9, is amended to read: 
446.34     Subd. 9.  [STATE BOND RATING.] If the commissioner of 
446.35  finance determines that the credit rating of the state would be 
446.36  adversely affected thereby, the commissioner of finance shall 
447.1   not issue warrants under subdivision 2 for the payment of 
447.2   principal or interest on any debt obligations for which a school 
447.3   district did not, prior to their issuance, obligate itself to be 
447.4   bound by the provisions of this section. 
447.5      Sec. 92.  Minnesota Statutes 1996, section 124.82, 
447.6   subdivision 1, is amended to read: 
447.7      Subdivision 1.  [CREATION OF A DOWN PAYMENT ACCOUNT.] A 
447.8   school district may create a down payment account as a separate 
447.9   account in its construction fund.  All proceeds from the down 
447.10  payment levy must be deposited in the capital expenditure fund 
447.11  and transferred to this account.  Interest income attributable 
447.12  to the down payment account must be credited to the account. 
447.13     Sec. 93.  Minnesota Statutes 1996, section 124.82, 
447.14  subdivision 3, is amended to read: 
447.15     Subd. 3.  [FACILITIES DOWN PAYMENT LEVY REFERENDUM.] A 
447.16  district may levy the local tax rate approved by a majority of 
447.17  the electors voting on the question to provide funds for a down 
447.18  payment for an approved project.  The election must take place 
447.19  no more than five years before the estimated date of 
447.20  commencement of the project.  The referendum must be held on a 
447.21  date set by the school board.  A referendum for a project not 
447.22  receiving a positive review and comment by the commissioner 
447.23  under section 121.15 must be approved by at least 60 percent of 
447.24  the voters at the election.  The referendum may be called by the 
447.25  school board and may be held: 
447.26     (1) separately, before an election for the issuance of 
447.27  obligations for the project under chapter 475; or 
447.28     (2) in conjunction with an election for the issuance of 
447.29  obligations for the project under chapter 475; or 
447.30     (3) notwithstanding section 475.59, as a conjunctive 
447.31  question authorizing both the down payment levy and the issuance 
447.32  of obligations for the project under chapter 475.  Any 
447.33  obligations authorized for a project may be issued within five 
447.34  years of the date of the election. 
447.35     The ballot must provide a general description of the 
447.36  proposed project, state the estimated total cost of the project, 
448.1   state whether the project has received a positive or negative 
448.2   review and comment from the commissioner of children, families, 
448.3   and learning, state the maximum amount of the down payment levy 
448.4   as a percentage of net tax capacity, state the amount that will 
448.5   be raised by that local tax rate in the first year it is to be 
448.6   levied, and state the maximum number of years that the levy 
448.7   authorization will apply. 
448.8      The ballot must contain a textual portion with the 
448.9   information required in this section and a question stating 
448.10  substantially the following: 
448.11     "Shall the down payment levy proposed by the board of 
448.12  .......... School District No. .......... be approved?" 
448.13     If approved, the amount provided by the approved local tax 
448.14  rate applied to the net tax capacity for the year preceding the 
448.15  year the levy is certified may be certified for the number of 
448.16  years approved. 
448.17     In the event a conjunctive question proposes to authorize 
448.18  both the down payment levy and the issuance of obligations for 
448.19  the project, appropriate language authorizing the issuance of 
448.20  obligations must also be included in the question.  
448.21     The district must notify the commissioner of children, 
448.22  families, and learning of the results of the referendum. 
448.23     Sec. 94.  Minnesota Statutes 1997 Supplement, section 
448.24  124.83, subdivision 1, is amended to read: 
448.25     Subdivision 1.  [HEALTH AND SAFETY PROGRAM.] To receive 
448.26  health and safety revenue for any fiscal year a district must 
448.27  submit to the commissioner of children, families, and learning 
448.28  an application for aid and levy by the date determined by the 
448.29  commissioner.  The application may be for hazardous substance 
448.30  removal, fire and life safety code repairs, labor and industry 
448.31  regulated facility and equipment violations, and health, safety, 
448.32  and environmental management, including indoor air quality 
448.33  management.  The application must include a health and safety 
448.34  program adopted by the school district board.  The program must 
448.35  include the estimated cost, per building, of the program by 
448.36  fiscal year. 
449.1      Sec. 95.  Minnesota Statutes 1996, section 124.83, 
449.2   subdivision 8, is amended to read: 
449.3      Subd. 8.  [HEALTH, SAFETY, AND ENVIRONMENTAL MANAGEMENT 
449.4   COST.] (a) A district's cost for health, safety, and 
449.5   environmental management is limited to the lesser of:  
449.6      (1) actual cost to implement their plan; or 
449.7      (2) an amount determined by the commissioner, based on 
449.8   enrollment, building age, and size. 
449.9      (b) Effective July 1, 1993, The department of children, 
449.10  families, and learning may contract with regional service 
449.11  organizations, private contractors, Minnesota safety council, or 
449.12  state agencies to provide management assistance to school 
449.13  districts for health and safety capital projects.  Management 
449.14  assistance is the development of written programs for the 
449.15  identification, recognition and control of hazards, and 
449.16  prioritization and scheduling of district health and safety 
449.17  capital projects. 
449.18     (c) Notwithstanding paragraph (b), the department may 
449.19  approve revenue, up to the limit defined in paragraph (a) for 
449.20  districts having an approved health, safety, and environmental 
449.21  management plan that uses district staff to accomplish 
449.22  coordination and provided services. 
449.23     Sec. 96.  Minnesota Statutes 1996, section 124.84, 
449.24  subdivision 1, is amended to read: 
449.25     Subdivision 1.  [REMOVAL OF ARCHITECTURAL BARRIERS.] If a 
449.26  school board has insufficient money in its capital expenditure 
449.27  fund to remove architectural barriers from a building it owns in 
449.28  order to allow a pupil to attend a school in the pupil's 
449.29  attendance area or to meet the needs of an employee with a 
449.30  disability, a district may submit an application to the 
449.31  commissioner of children, families, and learning containing at 
449.32  least the following: 
449.33     (1) program modifications that the board considered, such 
449.34  as relocating classrooms, providing an accessible unisex 
449.35  bathroom, providing alternative library resources, or using 
449.36  special equipment, such as bookcarts, and the reasons the 
450.1   modifications were not feasible; 
450.2      (2) a description of the proposed building modifications 
450.3   and the cost of the modifications; and 
450.4      (3) the age and market value of the building. 
450.5      Individuals developing an application for a school district 
450.6   shall complete a workshop, developed jointly by the commissioner 
450.7   of children, families, and learning and the council on 
450.8   disability, about access criteria. 
450.9      In consultation with the council on disability, the 
450.10  commissioner shall develop criteria to determine the 
450.11  cost-effectiveness of removing barriers in older buildings. 
450.12     The commissioner shall approve or disapprove an application 
450.13  within 60 days of receiving it.  
450.14     Sec. 97.  Minnesota Statutes 1996, section 124.84, 
450.15  subdivision 2, is amended to read: 
450.16     Subd. 2.  [FIRE SAFETY MODIFICATIONS.] If a school district 
450.17  has insufficient money in its capital expenditure fund to make 
450.18  modifications to a school building required by a fire inspection 
450.19  conducted according to section 121.1502, the district may submit 
450.20  an application to the commissioner of children, families, and 
450.21  learning containing information required by the commissioner.  
450.22  The commissioner shall approve or disapprove of the application 
450.23  according to criteria established by the commissioner.  The 
450.24  criteria shall take into consideration the cost-effectiveness of 
450.25  making modifications to older buildings. 
450.26     Sec. 98.  Minnesota Statutes 1996, section 124.85, 
450.27  subdivision 2, is amended to read: 
450.28     Subd. 2.  [ENERGY EFFICIENCY CONTRACT.] (a) Notwithstanding 
450.29  any law to the contrary, a school district may enter into a 
450.30  guaranteed energy savings contract with a qualified provider to 
450.31  significantly reduce energy or operating costs. 
450.32     (b) Before entering into a contract under this subdivision, 
450.33  the board shall comply with clauses (1) to (5). 
450.34     (1) The board shall must seek proposals from multiple 
450.35  qualified providers by publishing notice of the proposed 
450.36  guaranteed energy savings contract in the board's official 
451.1   newspaper and in other publications if the board determines that 
451.2   additional publication is necessary to notify multiple qualified 
451.3   providers. 
451.4      (2) The school board shall must select the qualified 
451.5   provider that best meets the needs of the board.  The school 
451.6   board shall must provide public notice of the meeting at which 
451.7   it will select the qualified provider. 
451.8      (3) The contract between the board and the qualified 
451.9   provider must describe the methods that will be used to 
451.10  calculate the costs of the contract and the operational and 
451.11  energy savings attributable to the contract. 
451.12     (4) The qualified provider shall issue a report to the 
451.13  board giving a description of all costs of installations, 
451.14  modifications, or remodeling, including costs of design, 
451.15  engineering, installation, maintenance, repairs, or debt 
451.16  service, and giving detailed calculations of the amounts by 
451.17  which energy or operating costs will be reduced and the 
451.18  projected payback schedule in years. 
451.19     (5) The board shall must provide published notice of the 
451.20  meeting in which it proposes to award the contract, the names of 
451.21  the parties to the proposed contract, and the contract's purpose.
451.22     Sec. 99.  Minnesota Statutes 1996, section 124.85, 
451.23  subdivision 2a, is amended to read: 
451.24     Subd. 2a.  [EVALUATION BY COMMISSIONER.] Upon request of 
451.25  the school board, the commissioner of public service shall 
451.26  review the report required in subdivision 2 and provide an 
451.27  evaluation to the board on the proposed contract within 15 
451.28  working days of receiving the report.  In evaluating the 
451.29  proposed contract, the commissioner shall determine whether the 
451.30  detailed calculations of the costs and of the energy and 
451.31  operating savings are accurate and reasonable.  The commissioner 
451.32  may request additional information about a proposed contract as 
451.33  the commissioner deems necessary.  If the commissioner requests 
451.34  additional information, the commissioner shall not be required 
451.35  to submit an evaluation to the board within fewer than ten 
451.36  working days of receiving the requested information.  
452.1      Sec. 100.  Minnesota Statutes 1996, section 124.85, 
452.2   subdivision 2b, is amended to read: 
452.3      Subd. 2b.  [REVIEW OF SAVINGS UNDER CONTRACT.] Upon request 
452.4   of the school board, the commissioner shall conduct a review of 
452.5   the energy and operating cost savings realized under a 
452.6   guaranteed energy savings contract every three years during the 
452.7   period a contract is in effect.  The commissioner shall compare 
452.8   the savings realized under the contract during the period under 
452.9   review with the calculations of savings included in the report 
452.10  required under subdivision 2 and provide an evaluation to the 
452.11  board concerning the performance of the system and the accuracy 
452.12  and reasonableness of the claimed energy and operating cost 
452.13  savings. 
452.14     Sec. 101.  Minnesota Statutes 1996, section 124.85, 
452.15  subdivision 2c, is amended to read: 
452.16     Subd. 2c.  [PAYMENT OF REVIEW EXPENSES.] The commissioner 
452.17  of public service may charge a school district requesting 
452.18  services under subdivisions 2a and 2b actual costs incurred by 
452.19  the department of public service while conducting the review, or 
452.20  one-half percent of the total identified project cost, whichever 
452.21  is less.  Before conducting the review, the commissioner shall 
452.22  notify a school district requesting review services that 
452.23  expenses will be charged to the school district.  The 
452.24  commissioner shall bill the school district upon completion of 
452.25  the contract review.  Money collected by the commissioner under 
452.26  this subdivision must be deposited in the general fund.  A 
452.27  district may include the cost of a review by the commissioner 
452.28  under subdivision 2a in a contract made pursuant to this section.
452.29     Sec. 102.  Minnesota Statutes 1996, section 124.85, 
452.30  subdivision 5, is amended to read: 
452.31     Subd. 5.  [INSTALLATION CONTRACTS.] A school district may 
452.32  enter into an installment payment contract for the purchase and 
452.33  installation of energy conservation measures.  The contract must 
452.34  provide for payments of not less than 1/15 of the price to be 
452.35  paid within two years from the date of the first operation, and 
452.36  the remaining costs to be paid monthly, not to exceed a 15-year 
453.1   term from the date of the first operation.  
453.2      Sec. 103.  Minnesota Statutes 1996, section 124.85, 
453.3   subdivision 6, is amended to read: 
453.4      Subd. 6.  [CONTRACT CONTINUANCE.] Guaranteed energy savings 
453.5   contracts may extend beyond the fiscal year in which they become 
453.6   effective.  The school district shall must include in its annual 
453.7   appropriations measure for each later fiscal year any amounts 
453.8   payable under guaranteed energy savings contracts during the 
453.9   year.  Failure of a board to make such an appropriation does not 
453.10  affect the validity of the guaranteed energy savings contract or 
453.11  the school district's obligations under the contracts. 
453.12     Sec. 104.  Minnesota Statutes 1996, section 124.85, 
453.13  subdivision 7, is amended to read: 
453.14     Subd. 7.  [PUBLIC INFORMATION.] A guaranteed energy savings 
453.15  contract must provide that all work plans and other information 
453.16  prepared by the qualified provider in relation to the project, 
453.17  including a detailed description of the project, are public data 
453.18  after the contract is entered into, except.  Information defined 
453.19  as trade secret information under section 13.37, subdivision 1, 
453.20  shall remain nonpublic data.  
453.21     Sec. 105.  Minnesota Statutes 1996, section 124.91, 
453.22  subdivision 4, is amended to read: 
453.23     Subd. 4.  [COOPERATING DISTRICTS.] A district that has an 
453.24  agreement according to section 122.535 or 122.541 may levy for 
453.25  the repair costs, as approved by the department of children, 
453.26  families, and learning, of a building located in another 
453.27  district that is a party to the agreement. 
453.28     Sec. 106.  Minnesota Statutes 1997 Supplement, section 
453.29  124.91, subdivision 5, is amended to read: 
453.30     Subd. 5.  [INTERACTIVE TELEVISION.] (a) A school district 
453.31  with its central administrative office located within economic 
453.32  development region one, two, three, four, five, six, seven, 
453.33  eight, nine, and ten may apply to the commissioner of children, 
453.34  families, and learning for ITV revenue up to the greater of .5 
453.35  percent of the adjusted net tax capacity of the district or 
453.36  $25,000.  Eligible interactive television expenditures include 
454.1   the construction, maintenance, and lease costs of an interactive 
454.2   television system for instructional purposes.  An eligible 
454.3   school district that has completed the construction of its 
454.4   interactive television system may also purchase computer 
454.5   hardware and software used primarily for instructional purposes 
454.6   and access to the Internet provided that its total expenditures 
454.7   for interactive television maintenance and lease costs and for 
454.8   computer hardware and software under this subdivision do not 
454.9   exceed its interactive television revenue for fiscal year 1998.  
454.10  The approval by the commissioner of children, families, and 
454.11  learning and the application procedures set forth in subdivision 
454.12  1 shall apply to the revenue in this subdivision.  In granting 
454.13  the approval, the commissioner must shall consider whether the 
454.14  district is maximizing efficiency through peak use and off-peak 
454.15  use pricing structures. 
454.16     (b) To obtain ITV revenue, a district may levy an amount 
454.17  not to exceed the district's ITV revenue times the lesser of one 
454.18  or the ratio of: 
454.19     (1) the quotient derived by dividing the adjusted net tax 
454.20  capacity of the district for the year before the year the levy 
454.21  is certified by the actual pupil units in the district for the 
454.22  year to which the levy is attributable; to 
454.23     (2) 100 percent of the equalizing factor as defined in 
454.24  section 124A.02, subdivision 8, for the year to which the levy 
454.25  is attributable. 
454.26     (c) A district's ITV aid is the difference between its ITV 
454.27  revenue and the ITV levy. 
454.28     (d) The revenue in the first year after reorganization for 
454.29  a district that has reorganized under section 122.22, 122.23, or 
454.30  122.241 to 122.247 shall be the greater of: 
454.31     (1) the revenue computed for the reorganized district under 
454.32  paragraph (a), or 
454.33     (2)(i) for two districts that reorganized, 75 percent of 
454.34  the revenue computed as if the districts involved in the 
454.35  reorganization were separate, or 
454.36     (ii) for three or more districts that reorganized, 50 
455.1   percent of the revenue computed as if the districts involved in 
455.2   the reorganization were separate. 
455.3      (e) The revenue in paragraph (d) is increased by the 
455.4   difference between the initial revenue and ITV lease costs for 
455.5   leases that had been entered into by the preexisting districts 
455.6   on the effective date of the consolidation or combination and 
455.7   with a term not exceeding ten years.  This increased revenue is 
455.8   only available for the remaining term of the lease.  However, in 
455.9   no case shall the revenue exceed the amount available had the 
455.10  preexisting districts received revenue separately. 
455.11     (f) Effective for fiscal year 2000, the revenue under this 
455.12  section shall be 75 percent of the amount determined in 
455.13  paragraph (a); for fiscal year 2001, 50 percent of the amount in 
455.14  paragraph (a); and for fiscal year 2002, 25 percent of the 
455.15  amount in paragraph (a). 
455.16     (g) This section expires effective for revenue for fiscal 
455.17  year 2003, or when leases in existence on the effective date of 
455.18  Laws 1997, First Special Session chapter 4, expire.  
455.19     Sec. 107.  Minnesota Statutes 1996, section 124.91, 
455.20  subdivision 6, is amended to read: 
455.21     Subd. 6.  [ENERGY CONSERVATION.] The school district may 
455.22  annually levy, without the approval of a majority of the voters 
455.23  in the district, an amount sufficient to repay the annual 
455.24  principal and interest of the loan made pursuant to sections 
455.25  216C.37 and 298.292 to 298.298.  
455.26     Sec. 108.  Minnesota Statutes 1997 Supplement, section 
455.27  124.912, subdivision 1, is amended to read: 
455.28     Subdivision 1.  [STATUTORY OBLIGATIONS.] A school district 
455.29  may levy: 
455.30     (1) the amount authorized for liabilities of dissolved 
455.31  districts pursuant to section 122.45; 
455.32     (2) the amounts necessary to pay the district's obligations 
455.33  under section 268.052, subdivision 1, and the amounts necessary 
455.34  to pay for job placement services offered to employees who may 
455.35  become eligible for benefits pursuant to section 268.08 for the 
455.36  fiscal year the levy is certified; 
456.1      (3) the amounts necessary to pay the district's obligations 
456.2   under section 127.05; 
456.3      (4) the amounts authorized by section 122.531; 
456.4      (5) the amounts necessary to pay the district's obligations 
456.5   under section 122.533; and 
456.6      (6) for severance pay required by sections 120.08, 
456.7   subdivision 3, and 122.535, subdivision 6. 
456.8      Sec. 109.  Minnesota Statutes 1997 Supplement, section 
456.9   124.912, subdivision 6, is amended to read: 
456.10     Subd. 6.  [CRIME RELATED COSTS.] For taxes levied in 1991 
456.11  and subsequent years, payable in 1992 and subsequent years, each 
456.12  school district may make a levy on all taxable property located 
456.13  within the school district for the purposes specified in this 
456.14  subdivision.  The maximum amount which may be levied for all 
456.15  costs under this subdivision shall be equal to $1.50 multiplied 
456.16  by the population of the school district.  For purposes of this 
456.17  subdivision, "population" of the school district means the same 
456.18  as contained in section 275.14.  The proceeds of the levy must 
456.19  be used for reimbursing the cities and counties who contract 
456.20  with the school district for the following purposes:  (1) to pay 
456.21  the costs incurred for the salaries, benefits, and 
456.22  transportation costs of peace officers and sheriffs for liaison 
456.23  services in the district's middle and secondary schools; (2) to 
456.24  pay the costs for a drug abuse prevention program as defined in 
456.25  Minnesota Statutes 1991 Supplement, section 609.101, subdivision 
456.26  3, paragraph (f), in the elementary schools; or (3) to pay the 
456.27  costs for a gang resistance education training curriculum in the 
456.28  middle schools.  The school district must initially attempt to 
456.29  contract for these services with the police department of each 
456.30  city or the sheriff's department of the county within the school 
456.31  district containing the school receiving the services.  If a 
456.32  local police department or a county sheriff's department does 
456.33  not wish to provide the necessary services, the district may 
456.34  contract for these services with any other police or sheriff's 
456.35  department located entirely or partially within the school 
456.36  district's boundaries.  The levy authorized under this 
457.1   subdivision is not included in determining the school district's 
457.2   levy limitations. 
457.3      Sec. 110.  Minnesota Statutes 1996, section 124.912, 
457.4   subdivision 7, is amended to read: 
457.5      Subd. 7.  [ICE ARENA LEVY.] (a) Each year, an independent 
457.6   school district operating and maintaining an ice arena, may levy 
457.7   for the net operational costs of the ice arena.  The levy may 
457.8   not exceed the net actual costs of operation of the arena for 
457.9   the previous year.  Net actual costs are defined as operating 
457.10  costs less any operating revenues. 
457.11     (b) Any school district operating and maintaining an ice 
457.12  arena must demonstrate to the satisfaction of the office of 
457.13  monitoring in the department of children, families, and learning 
457.14  that the district will offer equal sports opportunities for male 
457.15  and female students to use its ice arena, particularly in areas 
457.16  of access to prime practice time, team support, and providing 
457.17  junior varsity and younger level teams for girls' ice sports and 
457.18  ice sports offerings. 
457.19     Sec. 111.  Minnesota Statutes 1996, section 124.912, 
457.20  subdivision 9, is amended to read: 
457.21     Subd. 9.  [ABATEMENT LEVY.] (a) Each year, a school 
457.22  district may levy an amount to replace the net revenue lost to 
457.23  abatements that have occurred under chapter 278, section 270.07, 
457.24  375.192, or otherwise.  The maximum abatement levy is the sum of:
457.25     (1) the amount of the net revenue loss determined under 
457.26  section 124.214, subdivision 2, that is not paid in state aid 
457.27  including any aid amounts not paid due to proration; 
457.28     (2) the difference of (i) the amount of any abatements that 
457.29  have been reported by the county auditor for the first six 
457.30  months of the calendar year during which the abatement levy is 
457.31  certified that the district chooses to levy, (ii) less any 
457.32  amount actually levied under this clause that was certified in 
457.33  the previous calendar year for the first six months of the 
457.34  previous calendar year; and 
457.35     (3) an amount equal to any interest paid on abatement 
457.36  refunds.  
458.1      (b) A district may spread this levy over a period not to 
458.2   exceed three years. 
458.3      By July 15, the county auditor shall separately report the 
458.4   abatements that have occurred during the first six calendar 
458.5   months of that year to the commissioner of children, families, 
458.6   and learning and each school district located within the county. 
458.7      Sec. 112.  Minnesota Statutes 1996, section 124.914, is 
458.8   amended to read: 
458.9      124.914 [OPERATING DEBT LEVIES.] 
458.10     Subdivision 1.  [1977 STATUTORY OPERATING DEBT.] (1) (a) In 
458.11  each year in which so required by this subdivision, a district 
458.12  shall must make an additional levy to eliminate its statutory 
458.13  operating debt, determined as of June 30, 1977, and certified 
458.14  and adjusted by the commissioner.  This levy shall not be made 
458.15  in more than 30 successive years and each year before it is 
458.16  made, it must be approved by the commissioner and the approval 
458.17  shall specify its amount.  This levy shall be an amount which is 
458.18  equal to the amount raised by a levy of a net tax rate of 1.66 
458.19  percent times the adjusted net tax capacity of the district for 
458.20  the preceding year for taxes payable in 1991 and thereafter; 
458.21  provided that in the last year in which the district is required 
458.22  to make this levy, it shall must levy an amount not to exceed 
458.23  the amount raised by a levy of a net tax rate of 1.66 percent 
458.24  times the adjusted net tax capacity of the district for the 
458.25  preceding year for taxes payable in 1991 and thereafter.  When 
458.26  the sum of the cumulative levies made pursuant to this 
458.27  subdivision and transfers made according to section 121.912, 
458.28  subdivision 4, equals an amount equal to the statutory operating 
458.29  debt of the district, the levy shall be discontinued. 
458.30     (2) (b) The district shall must establish a special account 
458.31  in the general fund which shall be designated "appropriated fund 
458.32  balance reserve account for purposes of reducing statutory 
458.33  operating debt" on its books and records.  This account shall 
458.34  reflect the levy authorized pursuant to this subdivision.  The 
458.35  proceeds of this levy shall must be used only for cash flow 
458.36  requirements and shall must not be used to supplement district 
459.1   revenues or income for the purposes of increasing the district's 
459.2   expenditures or budgets. 
459.3      (3) (c) Any district which is required to levy pursuant to 
459.4   this subdivision shall must certify the maximum levy allowable 
459.5   under section 124A.23, subdivision 2, in that same year. 
459.6      (4) (d) Each district shall make permanent fund balance 
459.7   transfers so that the total statutory operating debt of the 
459.8   district is reflected in the general fund as of June 30, 1977. 
459.9      Subd. 2.  [1983 OPERATING DEBT.] (1) Each year, a district 
459.10  may make an additional levy to eliminate a deficit in the net 
459.11  unappropriated operating funds of the district, determined as of 
459.12  June 30, 1983, and certified and adjusted by the commissioner.  
459.13  This levy may in each year be an amount not to exceed the amount 
459.14  raised by a levy of a net tax rate of 1.85 percent times the 
459.15  adjusted net tax capacity for taxes payable in 1991 and 
459.16  thereafter of the district for the preceding year as determined 
459.17  by the commissioner.  However, the total amount of this levy for 
459.18  all years it is made shall must not exceed the lesser of (a) the 
459.19  amount of the deficit in the net unappropriated operating funds 
459.20  of the district as of June 30, 1983, or (b) the amount of the 
459.21  aid reduction, according to Laws 1981, Third Special Session 
459.22  chapter 2, article 2, section 2, but excluding clauses (l), (m), 
459.23  (n), (o), and (p), and Laws 1982, Third Special Session chapter 
459.24  1, article 3, section 6, to the district in fiscal year 1983.  
459.25  When the cumulative levies made pursuant to this subdivision 
459.26  equal the total amount permitted by this subdivision, the levy 
459.27  shall must be discontinued.  
459.28     (2) The proceeds of this levy shall must be used only for 
459.29  cash flow requirements and shall must not be used to supplement 
459.30  district revenues or income for the purposes of increasing the 
459.31  district's expenditures or budgets.  
459.32     (3) Any A district that levies pursuant to this subdivision 
459.33  shall must certify the maximum levy allowable under section 
459.34  124A.23, subdivisions 2 and 2a, in that same year. 
459.35     Subd. 3.  [1985 OPERATING DEBT.] (1) Each year, a district 
459.36  may levy to eliminate a deficit in the net unappropriated 
460.1   balance in the general fund of the district, determined as of 
460.2   June 30, 1985, and certified and adjusted by the commissioner.  
460.3   Each year this levy may be an amount not to exceed the amount 
460.4   raised by a levy of a net tax rate of 1.85 percent times the 
460.5   adjusted net tax capacity for taxes payable in 1991 and 
460.6   thereafter of the district for the preceding year.  However, the 
460.7   total amount of this levy for all years it is made shall must 
460.8   not exceed the amount of the deficit in the net unappropriated 
460.9   balance in the general fund of the district as of June 30, 
460.10  1985.  When the cumulative levies made pursuant to this 
460.11  subdivision equal the total amount permitted by this 
460.12  subdivision, the levy shall be discontinued.  
460.13     (2) A district, if eligible, may levy under this 
460.14  subdivision or subdivision 2 but not both. 
460.15     (3) The proceeds of this levy shall must be used only for 
460.16  cash flow requirements and shall must not be used to supplement 
460.17  district revenues or income for the purposes of increasing the 
460.18  district's expenditures or budgets.  
460.19     (4) Any A district that levies pursuant to this subdivision 
460.20  shall must certify the maximum levy allowable under section 
460.21  124A.23, subdivision 2, in that same year. 
460.22     Subd. 4.  [1992 OPERATING DEBT.] (a) For taxes payable for 
460.23  calendar year 2003 and earlier, a district that has filed a plan 
460.24  pursuant to section 121.917, subdivision 4, may levy, with the 
460.25  approval of the commissioner, to eliminate a deficit in the net 
460.26  unappropriated balance in the operating funds of the district, 
460.27  determined as of June 30, 1992, and certified and adjusted by 
460.28  the commissioner.  Each year this levy may be an amount not to 
460.29  exceed the lesser of: 
460.30     (1) an amount raised by a levy of a net tax rate of one 
460.31  percent times the adjusted net tax capacity; or 
460.32     (2) $100,000. 
460.33  This amount shall must be reduced by referendum revenue 
460.34  authorized under section 124A.03 pursuant to the plan filed 
460.35  under section 121.917.  However, the total amount of this levy 
460.36  for all years it is made shall must not exceed the amount of the 
461.1   deficit in the net unappropriated balance in the operating funds 
461.2   of the district as of June 30, 1992.  When the cumulative levies 
461.3   made pursuant to this subdivision equal the total amount 
461.4   permitted by this subdivision, the levy shall must be 
461.5   discontinued.  
461.6      (b) A district, if eligible, may levy under this 
461.7   subdivision or subdivision 2 or 3, or under section 122.531, 
461.8   subdivision 4a, or Laws 1992, chapter 499, article 7, sections 
461.9   16 or 17, but not under more than one. 
461.10     (c) The proceeds of this levy shall must be used only for 
461.11  cash flow requirements and shall must not be used to supplement 
461.12  district revenues or income for the purposes of increasing the 
461.13  district's expenditures or budgets.  
461.14     (d) Any district that levies pursuant to this subdivision 
461.15  shall must certify the maximum levy allowable under section 
461.16  124A.23, subdivision 2, in that same year. 
461.17     Sec. 113.  Minnesota Statutes 1996, section 124.916, as 
461.18  amended by Laws 1997, First Special Session chapter 4, article 
461.19  1, sections 29, 30, and 31, is amended to read: 
461.20     124.916 [BENEFITS LEVIES.] 
461.21     Subdivision 1.  [HEALTH INSURANCE.] (a) A school district 
461.22  may levy the amount necessary to make employer contributions for 
461.23  insurance for retired employees under this subdivision.  
461.24     (b) The school board of a joint vocational technical 
461.25  district formed under sections 136C.60 to 136C.69 and the school 
461.26  board of a school district may provide employer-paid hospital, 
461.27  medical, and dental benefits to a person who: 
461.28     (1) is eligible for employer-paid insurance under 
461.29  collective bargaining agreements or personnel plans in effect on 
461.30  June 30, 1992; 
461.31     (2) has at least 25 years of service credit in the public 
461.32  pension plan of which the person is a member on the day before 
461.33  retirement or, in the case of a teacher, has a total of at least 
461.34  25 years of service credit in the teachers retirement 
461.35  association, a first-class city teacher retirement fund, or any 
461.36  combination of these; 
462.1      (3) upon retirement is immediately eligible for a 
462.2   retirement annuity; 
462.3      (4) is at least 55 and not yet 65 years of age; and 
462.4      (5) retires on or after May 15, 1992, and before July 21, 
462.5   1992. 
462.6      A school board paying insurance under this subdivision may 
462.7   not exclude any eligible employees. 
462.8      (c) An employee who is eligible both for the health 
462.9   insurance benefit under this subdivision and for an early 
462.10  retirement incentive under a collective bargaining agreement or 
462.11  personnel plan established by the employer must select either 
462.12  the early retirement incentive provided under the collective 
462.13  bargaining agreement personnel plan or the incentive provided 
462.14  under this subdivision, but may not receive both.  For purposes 
462.15  of this subdivision, a person retires when the person terminates 
462.16  active employment and applies for retirement benefits.  The 
462.17  retired employee is eligible for single and dependent coverages 
462.18  and employer payments to which the person was entitled 
462.19  immediately before retirement, subject to any changes in 
462.20  coverage and employer and employee payments through collective 
462.21  bargaining or personnel plans, for employees in positions 
462.22  equivalent to the position from which the employee retired.  The 
462.23  retired employee is not eligible for employer-paid life 
462.24  insurance.  Eligibility ceases when the retired employee attains 
462.25  the age of 65, or when the employee chooses not to receive the 
462.26  retirement benefits for which the employee has applied, or when 
462.27  the employee is eligible for employer-paid health insurance from 
462.28  a new employer.  Coverages must be coordinated with relevant 
462.29  health insurance benefits provided through the federally 
462.30  sponsored Medicare program.  
462.31     (d) Unilateral implementation of this section by a public 
462.32  employer is not an unfair labor practice for purposes of chapter 
462.33  179A.  The authority provided in this subdivision for an 
462.34  employer to pay health insurance costs for certain retired 
462.35  employees is not subject to the limits in section 179A.20, 
462.36  subdivision 2a. 
463.1      (e) If a school district levies according to this 
463.2   subdivision, it may not also levy according to section 122.531, 
463.3   subdivision 9, for eligible employees. 
463.4      Subd. 2.  [RETIRED EMPLOYEE HEALTH BENEFITS.] For taxes 
463.5   payable in 1996, 1997, 1998, and 1999 only, a school district 
463.6   may levy an amount up to the amount the district is required by 
463.7   the collective bargaining agreement in effect on March 30, 1992, 
463.8   to pay for health insurance or unreimbursed medical expenses for 
463.9   licensed and nonlicensed employees who have terminated services 
463.10  in the employing district and withdrawn from active teaching 
463.11  service or other active service, as applicable, before July 1, 
463.12  1992.  The total amount of the levy each year may not exceed 
463.13  $300,000.  
463.14     Subd. 3.  [RETIREMENT LEVIES.] (1) In addition to the 
463.15  excess levy authorized in 1976 any district within a city of the 
463.16  first class which was authorized in 1975 to make a retirement 
463.17  levy under Minnesota Statutes 1974, section 275.127 and chapter 
463.18  422A may levy an amount per pupil unit which is equal to the 
463.19  amount levied in 1975 payable 1976, under Minnesota Statutes 
463.20  1974, section 275.127 and chapter 422A, divided by the number of 
463.21  pupil units in the district in 1976-1977. 
463.22     (2) In 1979 and each year thereafter, any district which 
463.23  qualified in 1976 for an extra levy under paragraph (1) shall be 
463.24  allowed to levy the same amount as levied for retirement in 1978 
463.25  under this clause reduced each year by ten percent of the 
463.26  difference between the amount levied for retirement in 1971 
463.27  under Minnesota Statutes 1971, sections 275.127 and 422.01 to 
463.28  422.54 and the amount levied for retirement in 1975 under 
463.29  Minnesota Statutes 1974, section 275.127 and chapter 422A. 
463.30     (3) In 1991 and each year thereafter, a district to which 
463.31  this subdivision applies may levy an additional amount required 
463.32  for contributions to the Minneapolis employees retirement fund 
463.33  as a result of the maximum dollar amount limitation on state 
463.34  contributions to the fund imposed under section 422A.101, 
463.35  subdivision 3.  The additional levy shall must not exceed the 
463.36  most recent amount certified by the board of the Minneapolis 
464.1   employees retirement fund as the district's share of the 
464.2   contribution requirement in excess of the maximum state 
464.3   contribution under section 422A.101, subdivision 3.  
464.4      (4) For taxes payable in 1994 and thereafter, special 
464.5   school district No. 1, Minneapolis, and independent school 
464.6   district No. 625, St. Paul, may levy for the increase in the 
464.7   employer retirement fund contributions, under Laws 1992, chapter 
464.8   598, article 5, section 1.  
464.9      (5) If the employer retirement fund contributions under 
464.10  section 354A.12, subdivision 2a, are increased for fiscal year 
464.11  1994 or later fiscal years, special school district No. 1, 
464.12  Minneapolis, and independent school district No. 625, St. Paul, 
464.13  may levy in payable 1994 or later an amount equal to the amount 
464.14  derived by applying the net increase in the employer retirement 
464.15  fund contribution rate of the respective teacher retirement fund 
464.16  association between fiscal year 1993 and the fiscal year 
464.17  beginning in the year after the levy is certified to the total 
464.18  covered payroll of the applicable teacher retirement fund 
464.19  association.  If an applicable school district levies under this 
464.20  paragraph, they may not levy under paragraph (4). 
464.21     (6) In addition to the levy authorized under paragraph (5), 
464.22  special school district No. 1, Minneapolis, may also levy 
464.23  payable in 1997 or later an amount equal to the contributions 
464.24  under section 423A.02, subdivision 3, and may also levy in 
464.25  payable 1994 or later an amount equal to the state aid 
464.26  contribution under section 354A.12, subdivision 3b.  Independent 
464.27  school district No. 625, St. Paul, may levy payable in 1997 or 
464.28  later an amount equal to the supplemental contributions under 
464.29  section 423A.02, subdivision 3.  
464.30     Subd. 4.  [MINNEAPOLIS HEALTH INSURANCE SUBSIDY.] Each year 
464.31  special school district No. 1, Minneapolis, may make an 
464.32  additional levy not to exceed the amount raised by a net tax 
464.33  rate of .10 percent times the adjusted net tax capacity for 
464.34  taxes payable in 1991 and thereafter of the property in the 
464.35  district for the preceding year.  The proceeds may be used only 
464.36  to subsidize health insurance costs for eligible teachers as 
465.1   provided in this section.  
465.2      "Eligible teacher" means a retired teacher who was a basic 
465.3   member of the Minneapolis teachers retirement fund association, 
465.4   who retired before May 1, 1974, or who had 20 or more years of 
465.5   basic member service in the Minneapolis teacher retirement fund 
465.6   association and retired before June 30, 1983, and who is not 
465.7   eligible to receive the hospital insurance benefits of the 
465.8   federal Medicare program of the Social Security Act without 
465.9   payment of a monthly premium.  The district shall must notify 
465.10  eligible teachers that a subsidy is available.  To obtain a 
465.11  subsidy, an eligible teacher must submit to the school district 
465.12  a copy of receipts for health insurance premiums paid.  The 
465.13  school district shall must disburse the health insurance premium 
465.14  subsidy to each eligible teacher according to a schedule 
465.15  determined by the district, but at least annually.  An eligible 
465.16  teacher may receive a subsidy up to an amount equal to the 
465.17  lesser of 90 percent of the cost of the eligible teacher's 
465.18  health insurance or up to 90 percent of the cost of the number 
465.19  two qualified plan of health coverage for individual policies 
465.20  made available by the Minnesota comprehensive health association 
465.21  under chapter 62E.  
465.22     If funds remaining from the previous year's health 
465.23  insurance subsidy levy, minus the previous year's required 
465.24  subsidy amount, are sufficient to pay the estimated current year 
465.25  subsidy, the levy must be discontinued until the remaining funds 
465.26  are estimated by the school board to be insufficient to pay the 
465.27  subsidy. 
465.28     This subdivision does not extend benefits to teachers who 
465.29  retire after June 30, 1983, and does not create a contractual 
465.30  right or claim for altering the benefits in this subdivision.  
465.31  This subdivision does not restrict the school district's right 
465.32  to modify or terminate coverage under this subdivision. 
465.33     Sec. 114.  Minnesota Statutes 1997 Supplement, section 
465.34  124.918, subdivision 1, is amended to read: 
465.35     Subdivision 1.  [CERTIFY LEVY LIMITS.] (a) By September 8, 
465.36  the commissioner shall notify the school districts of their levy 
466.1   limits.  The commissioner shall certify to the county auditors 
466.2   the levy limits for all school districts headquartered in the 
466.3   respective counties together with adjustments for errors in 
466.4   levies not penalized pursuant to section 124.918, subdivision 3, 
466.5   as well as adjustments to final pupil unit counts.  A school 
466.6   district may require the commissioner to review the 
466.7   certification and to present evidence in support of modification 
466.8   of the certification. 
466.9      The county auditor shall reduce levies for any excess of 
466.10  levies over levy limitations pursuant to section 275.16.  Such 
466.11  reduction in excess levies may, at the discretion of the school 
466.12  district, be spread over two calendar years. 
466.13     (b) As part of the commissioner's certification under 
466.14  paragraph (a), the commissioner shall certify the amount by 
466.15  which a district's levy for its general fund was reduced under 
466.16  subdivision 8. 
466.17     Sec. 115.  Minnesota Statutes 1996, section 124.918, 
466.18  subdivision 2, is amended to read: 
466.19     Subd. 2.  [NOTICE TO COMMISSIONER; FORMS.] By October 7 of 
466.20  each year each district shall must notify the commissioner of 
466.21  children, families, and learning of the proposed levies in 
466.22  compliance with the levy limitations of this chapter and 
466.23  chapters 124A, 124B, and 136D.  By January 15 of each year each 
466.24  district shall must notify the commissioner of children, 
466.25  families, and learning of the final levies certified.  The 
466.26  commissioner of children, families, and learning shall prescribe 
466.27  the form of these notifications and may request any additional 
466.28  information necessary to compute certified levy amounts. 
466.29     Sec. 116.  Minnesota Statutes 1996, section 124.918, 
466.30  subdivision 3, is amended to read: 
466.31     Subd. 3.  [ADJUSTMENTS.] If any school district levy is 
466.32  found to be excessive as a result of a decision of the tax court 
466.33  or a redetermination by the commissioner of revenue under 
466.34  section 124.2131, subdivisions 2 to 11, or for any other reason, 
466.35  the amount of the excess shall be deducted from the levy 
466.36  certified in the next year for the same purpose; provided that.  
467.1   If no levy is certified in the next year for the same purpose or 
467.2   if the amount certified is less than the amount of the excess, 
467.3   the excess shall must be deducted from that levy and the levy 
467.4   certified pursuant to section 124A.23, subdivision 2.  If the 
467.5   amount of any aid would have been increased in a prior year as a 
467.6   result of a decision of the tax court or a redetermination by 
467.7   the commissioner of revenue, the amount of the increase shall be 
467.8   added to the amount of current aid for the same purposes. 
467.9      Sec. 117.  Minnesota Statutes 1997 Supplement, section 
467.10  124.918, subdivision 6, is amended to read: 
467.11     Subd. 6.  [ADJUSTMENTS FOR LAW CHANGES.] Whenever a change 
467.12  enacted in law changes the levy authority for a school district 
467.13  or an intermediate school district for a fiscal year after the 
467.14  levy for that fiscal year has been certified by the district 
467.15  under section 275.07, the department of children, families, and 
467.16  learning shall must adjust the next levy certified by the 
467.17  district by the amount of the change in levy authority for that 
467.18  fiscal year resulting from the change.  Notwithstanding section 
467.19  121.904, the entire amount of the levy adjustment must be 
467.20  recognized as revenue in the fiscal year the levy is certified, 
467.21  if sufficient levy resources are available under generally 
467.22  accepted accounting principles in the district fund where the 
467.23  adjustment is to occur.  School Districts that do not have 
467.24  sufficient levy resources available in the fund where the 
467.25  adjustment is to occur shall must recognize in the fiscal year 
467.26  the levy is certified an amount equal to the levy resources 
467.27  available.  The remaining adjustment amount shall must be 
467.28  recognized as revenue in the fiscal year after the levy is 
467.29  certified. 
467.30     Sec. 118.  Minnesota Statutes 1996, section 124.918, 
467.31  subdivision 7, is amended to read: 
467.32     Subd. 7.  [REPORTING.] For each tax settlement, the county 
467.33  auditor shall report to each school district by fund, the school 
467.34  district tax settlement revenue defined in section 121.904, 
467.35  subdivision 4a, clause (a), and the amount levied pursuant to 
467.36  section 124.914, subdivision 1, on the form specified in section 
468.1   276.10.  The county auditor shall send to the school district a 
468.2   copy of the spread levy report specified in section 275.124. 
468.3      Sec. 119.  Minnesota Statutes 1997 Supplement, section 
468.4   124.918, subdivision 8, is amended to read: 
468.5      Subd. 8.  [TACONITE PAYMENT AND OTHER REDUCTIONS.] (1) 
468.6   Reductions in levies pursuant to section 124.918, subdivision 1, 
468.7   and section 273.138, shall must be made prior to the reductions 
468.8   in clause (2). 
468.9      (2) Notwithstanding any other law to the contrary, 
468.10  districts which received payments pursuant to sections 298.018; 
468.11  298.23 to 298.28, except an amount distributed under section 
468.12  298.28, subdivision 4, paragraph (c), clause (ii); 298.34 to 
468.13  298.39; 298.391 to 298.396; 298.405; and any law imposing a tax 
468.14  upon severed mineral values, or recognized revenue pursuant to 
468.15  section 477A.15; shall must not include a portion of these aids 
468.16  in their permissible levies pursuant to those sections, but 
468.17  instead shall must reduce the permissible levies authorized by 
468.18  this chapter and chapter 124A by the greater of the following: 
468.19     (a) an amount equal to 50 percent of the total dollar 
468.20  amount of the payments received pursuant to those sections or 
468.21  revenue recognized pursuant to section 477A.15 in the previous 
468.22  fiscal year; or 
468.23     (b) an amount equal to the total dollar amount of the 
468.24  payments received pursuant to those sections or revenue 
468.25  recognized pursuant to section 477A.15 in the previous fiscal 
468.26  year less the product of the same dollar amount of payments or 
468.27  revenue times the ratio of the maximum levy allowed the district 
468.28  under Minnesota Statutes 1986, sections 124A.03, subdivision 2, 
468.29  124A.06, subdivision 3a, 124A.08, subdivision 3a, 124A.10, 
468.30  subdivision 3a, 124A.12, subdivision 3a, and 124A.14, 
468.31  subdivision 5a, to the total levy allowed the district under 
468.32  this section and Minnesota Statutes 1986, sections 124A.03, 
468.33  124A.06, subdivision 3a, 124A.08, subdivision 3a, 124A.10, 
468.34  subdivision 3a, 124A.12, subdivision 3a, 124A.14, subdivision 
468.35  5a, and 124A.20, subdivision 2, for levies certified in 1986. 
468.36     (3) No reduction pursuant to this subdivision shall reduce 
469.1   the levy made by the district pursuant to section 124A.23, to an 
469.2   amount less than the amount raised by a levy of a net tax rate 
469.3   of 6.82 percent times the adjusted net tax capacity for taxes 
469.4   payable in 1990 and thereafter of that district for the 
469.5   preceding year as determined by the commissioner.  The amount of 
469.6   any increased levy authorized by referendum pursuant to section 
469.7   124A.03, subdivision 2, shall not be reduced pursuant to this 
469.8   subdivision.  The amount of any levy authorized by section 
469.9   124.912, subdivision 1, to make payments for bonds issued and 
469.10  for interest thereon, shall not be reduced pursuant to this 
469.11  subdivision.  
469.12     (4) Before computing the reduction pursuant to this 
469.13  subdivision of the health and safety levy authorized by sections 
469.14  124.83 and 124.91, subdivision 6, the commissioner shall 
469.15  ascertain from each affected school district the amount it 
469.16  proposes to levy under each section or subdivision.  The 
469.17  reduction shall be computed on the basis of the amount so 
469.18  ascertained. 
469.19     (5) Notwithstanding any law to the contrary, any amounts 
469.20  received by districts in any fiscal year pursuant to sections 
469.21  298.018; 298.23 to 298.28; 298.34 to 298.39; 298.391 to 298.396; 
469.22  298.405; or any law imposing a tax on severed mineral values; 
469.23  and not deducted from general education aid pursuant to section 
469.24  124A.035, subdivision 5, clause (2), and not applied to reduce 
469.25  levies pursuant to this subdivision shall be paid by the 
469.26  district to the St. Louis county auditor in the following amount 
469.27  by March 15 of each year, the amount required to be subtracted 
469.28  from the previous fiscal year's general education aid pursuant 
469.29  to section 124A.035, subdivision 5, which is in excess of the 
469.30  general education aid earned for that fiscal year.  The county 
469.31  auditor shall deposit any amounts received pursuant to this 
469.32  clause in the St. Louis county treasury for purposes of paying 
469.33  the taconite homestead credit as provided in section 273.135. 
469.34     Sec. 120.  Minnesota Statutes 1996, section 124.95, 
469.35  subdivision 1, is amended to read: 
469.36     Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
470.1   section, the eligible debt service revenue of a district is 
470.2   defined as follows: 
470.3      (1) the amount needed to produce between five and six 
470.4   percent in excess of the amount needed to meet when due the 
470.5   principal and interest payments on the obligations of the 
470.6   district for eligible projects according to subdivision 2, 
470.7   including the amounts necessary for repayment of energy loans 
470.8   according to section 216C.37 or sections 298.292 to 298.298, 
470.9   debt service loans and capital loans, lease purchase payments 
470.10  under section 124.91, subdivisions 2 and 3, alternative 
470.11  facilities levies under section 124.239, subdivision 5, minus 
470.12     (2) the amount of debt service excess levy reduction for 
470.13  that school year calculated according to the procedure 
470.14  established by the commissioner. 
470.15     (b) The obligations in this paragraph are excluded from 
470.16  eligible debt service revenue: 
470.17     (1) obligations under section 124.2445; 
470.18     (2) the part of debt service principal and interest paid 
470.19  from the taconite environmental protection fund or northeast 
470.20  Minnesota economic protection trust; 
470.21     (3) obligations issued under Laws 1991, chapter 265, 
470.22  article 5, section 18, as amended by Laws 1992, chapter 499, 
470.23  article 5, section 24; and 
470.24     (4) obligations under section 124.2455. 
470.25     (c) For purposes of this section, if a preexisting school 
470.26  district reorganized under section 122.22, 122.23, or 122.241 to 
470.27  122.248 is solely responsible for retirement of the preexisting 
470.28  district's bonded indebtedness, capital loans or debt service 
470.29  loans, debt service equalization aid must be computed separately 
470.30  for each of the preexisting school districts. 
470.31     Sec. 121.  Minnesota Statutes 1996, section 124.97, is 
470.32  amended to read: 
470.33     124.97 [DEBT SERVICE LEVY.] 
470.34     A school district may levy the amounts necessary to make 
470.35  payments for bonds issued and for interest on them, including 
470.36  the bonds and interest on them, issued as authorized by 
471.1   Minnesota Statutes 1974, section 275.125, subdivision 3, clause 
471.2   (7)(C); and the amounts necessary for repayment of debt service 
471.3   loans and capital loans, minus the amount of debt service 
471.4   equalization revenue of the district. 
471.5      Sec. 122.  Minnesota Statutes 1996, section 124A.02, 
471.6   subdivision 1, is amended to read: 
471.7      Subdivision 1.  [APPLICABILITY.] For the purposes of this 
471.8   chapter, the terms defined in section 120.02 have the same 
471.9   meanings.  For the purpose of this chapter and chapter 124, the 
471.10  following terms have the meaning meanings given them.  
471.11     Sec. 123.  Minnesota Statutes 1996, section 124A.02, 
471.12  subdivision 3a, is amended to read: 
471.13     Subd. 3a.  [ADJUSTED NET TAX CAPACITY.] "Adjusted net tax 
471.14  capacity" means the net tax capacity of the taxable property of 
471.15  the school district as adjusted by the commissioner of revenue 
471.16  under section 124.2131.  The adjusted net tax capacity for any 
471.17  given calendar year shall must be used to compute levy 
471.18  limitations for levies certified in the succeeding calendar year 
471.19  and aid for the school year beginning in the second succeeding 
471.20  calendar year. 
471.21     Sec. 124.  Minnesota Statutes 1996, section 124A.02, 
471.22  subdivision 20, is amended to read: 
471.23     Subd. 20.  [SHARED TIME AVERAGE DAILY MEMBERSHIP.] The 
471.24  average daily membership of a pupil enrolled on a shared time 
471.25  basis shall equal equals the ratio of the total minutes for 
471.26  which the pupil is enrolled and the minimum minutes required 
471.27  during the year for a regularly enrolled public school pupil.  
471.28     Sec. 125.  Minnesota Statutes 1996, section 124A.02, 
471.29  subdivision 21, is amended to read: 
471.30     Subd. 21.  [SHARED TIME AID.] Aid for shared time pupils 
471.31  shall must equal the formula allowance times the full-time 
471.32  equivalent actual pupil units for shared time pupils.  Aid for 
471.33  shared time pupils shall be is in addition to any other aid to 
471.34  which the district is otherwise entitled.  Shared time average 
471.35  daily membership shall may not be used in the computation of 
471.36  pupil units under section 124.17, subdivision 1, for any purpose 
472.1   other than the computation of shared time aid pursuant to 
472.2   subdivisions 20 to 22 and section 124A.034, subdivisions 1 to 1b.
472.3      Sec. 126.  Minnesota Statutes 1996, section 124A.02, 
472.4   subdivision 22, is amended to read: 
472.5      Subd. 22.  [SHARED TIME PUPILS.] "Shared time pupils" are 
472.6   defined as means those pupils who attend public school programs 
472.7   for part of the regular school day and who otherwise fulfill the 
472.8   requirements of section 120.101 by attendance at a nonpublic 
472.9   school.  
472.10     Sec. 127.  Minnesota Statutes 1996, section 124A.02, 
472.11  subdivision 23, is amended to read: 
472.12     Subd. 23.  [TRAINING AND EXPERIENCE INDEX.] "Training and 
472.13  experience index" means a measure of a district's teacher 
472.14  training and experience relative to the education and experience 
472.15  of teachers in the state.  The measure shall must be determined 
472.16  pursuant to section 124A.04. 
472.17     Sec. 128.  Minnesota Statutes 1996, section 124A.02, 
472.18  subdivision 24, is amended to read: 
472.19     Subd. 24.  [AVERAGE SALARY FOR BEGINNING TEACHERS.] 
472.20  "Average salary for beginning teachers" means the average salary 
472.21  for all teachers in the state who are in their first year of 
472.22  teaching and who have no additional credits or degrees above a 
472.23  bachelor's degree.  At least biennially, the department shall 
472.24  must recompute this average using complete new data. 
472.25     Sec. 129.  Minnesota Statutes 1996, section 124A.029, 
472.26  subdivision 1, is amended to read: 
472.27     Subdivision 1.  [REVENUE CONVERSION.] Except as provided 
472.28  under subdivision 4, the referendum authority under section 
472.29  124A.03 and the levy authority under section 124.912, 
472.30  subdivisions 2 and 3, of a school district must be converted by 
472.31  the department according to this section. 
472.32     Sec. 130.  Minnesota Statutes 1996, section 124A.029, 
472.33  subdivision 3, is amended to read: 
472.34     Subd. 3.  [RATE ADJUSTMENT.] The department shall must 
472.35  adjust a school district's referendum authority for a referendum 
472.36  approved before July 1, 1991, excluding authority based on a 
473.1   dollar amount, and the levy authority under section 124.912, 
473.2   subdivisions 2 and 3, by multiplying the sum of the rates 
473.3   authorized by a district under section 124A.03 and the rates in 
473.4   section 124.912, subdivisions 2 and 3, by the ratio determined 
473.5   under subdivision 2 for the assessment year for which the 
473.6   revenue is attributable.  The adjusted rates for assessment year 
473.7   1993 shall apply to later years for which the revenue is 
473.8   authorized. 
473.9      Sec. 131.  Minnesota Statutes 1996, section 124A.029, 
473.10  subdivision 4, is amended to read: 
473.11     Subd. 4.  [PER PUPIL REVENUE CONVERSION.] (a) The 
473.12  department shall must convert each district's referendum revenue 
473.13  authority for fiscal year 2002 and later years to an allowance 
473.14  per pupil unit as follows:  the revenue allowance equals the 
473.15  amount determined by dividing the district's maximum revenue 
473.16  under section 124A.03, for fiscal year 2001 by the district's 
473.17  2000-2001 actual pupil units.  A district's maximum revenue for 
473.18  all later years for which the revenue is authorized equals the 
473.19  revenue allowance times the district's actual pupil units for 
473.20  that year.  
473.21     (b) The referendum allowance reduction shall must be 
473.22  applied first to the authority with the earliest expiration date.
473.23     Sec. 132.  Minnesota Statutes 1996, section 124A.03, 
473.24  subdivision 2, is amended to read: 
473.25     Subd. 2.  [REFERENDUM REVENUE.] (a) The revenue authorized 
473.26  by section 124A.22, subdivision 1, may be increased in the 
473.27  amount approved by the voters of the district at a referendum 
473.28  called for the purpose.  The referendum may be called by the 
473.29  school board or shall be called by the school board upon written 
473.30  petition of qualified voters of the district.  The referendum 
473.31  shall must be conducted one or two calendar years before the 
473.32  increased levy authority, if approved, first becomes payable. 
473.33  Only one election to approve an increase may be held in a 
473.34  calendar year.  Unless the referendum is conducted by mail under 
473.35  paragraph (g), the referendum must be held on the first Tuesday 
473.36  after the first Monday in November.  The ballot shall must state 
474.1   the maximum amount of the increased revenue per actual pupil 
474.2   unit, the estimated referendum tax rate as a percentage of 
474.3   market value in the first year it is to be levied, and that the 
474.4   revenue shall must be used to finance school operations.  The 
474.5   ballot may state a schedule, determined by the board, of 
474.6   increased revenue per actual pupil units that differs from year 
474.7   to year over the number of years for which the increased revenue 
474.8   is authorized.  If the ballot contains a schedule showing 
474.9   different amounts, it shall must also indicate the estimated 
474.10  referendum tax rate as a percent of market value for the amount 
474.11  specified for the first year and for the maximum amount 
474.12  specified in the schedule.  The ballot may state that existing 
474.13  referendum levy authority is expiring.  In this case, the ballot 
474.14  may also compare the proposed levy authority to the existing 
474.15  expiring levy authority, and express the proposed increase as 
474.16  the amount, if any, over the expiring referendum levy 
474.17  authority.  The ballot shall must designate the specific number 
474.18  of years, not to exceed ten, for which the referendum 
474.19  authorization shall apply applies.  The notice required under 
474.20  section 275.60 may be modified to read, in cases of renewing 
474.21  existing levies: 
474.22     "BY VOTING "YES" ON THIS BALLOT QUESTION, YOU MAY BE VOTING 
474.23     FOR A PROPERTY TAX INCREASE." 
474.24     The ballot may contain a textual portion with the 
474.25  information required in this subdivision and a question stating 
474.26  substantially the following:  
474.27     "Shall the increase in the revenue proposed by (petition 
474.28  to) the board of ........., School District No. .., be approved?"
474.29     If approved, an amount equal to the approved revenue per 
474.30  actual pupil unit times the actual pupil units for the school 
474.31  year beginning in the year after the levy is certified shall be 
474.32  authorized for certification for the number of years approved, 
474.33  if applicable, or until revoked or reduced by the voters of the 
474.34  district at a subsequent referendum. 
474.35     (b) The school board shall must prepare and deliver by 
474.36  first class mail at least 15 days but no more than 30 days prior 
475.1   to before the day of the referendum to each taxpayer a notice of 
475.2   the referendum and the proposed revenue increase.  The school 
475.3   board need not mail more than one notice to any taxpayer.  For 
475.4   the purpose of giving mailed notice under this subdivision, 
475.5   owners shall must be those shown to be owners on the records of 
475.6   the county auditor or, in any county where tax statements are 
475.7   mailed by the county treasurer, on the records of the county 
475.8   treasurer.  Every property owner whose name does not appear on 
475.9   the records of the county auditor or the county treasurer shall 
475.10  be is deemed to have waived this mailed notice unless the owner 
475.11  has requested in writing that the county auditor or county 
475.12  treasurer, as the case may be, include the name on the records 
475.13  for this purpose.  The notice must project the anticipated 
475.14  amount of tax increase in annual dollars and annual percentage 
475.15  for typical residential homesteads, agricultural homesteads, 
475.16  apartments, and commercial-industrial property within the school 
475.17  district. 
475.18     The notice for a referendum may state that an existing 
475.19  referendum levy is expiring and project the anticipated amount 
475.20  of increase over the existing referendum levy in the first year, 
475.21  if any, in annual dollars and annual percentage for typical 
475.22  residential homesteads, agricultural homesteads, apartments, and 
475.23  commercial-industrial property within the school district. 
475.24     The notice must include the following statement:  "Passage 
475.25  of this referendum will result in an increase in your property 
475.26  taxes."  However, in cases of renewing existing levies, the 
475.27  notice may include the following statement:  "Passage of this 
475.28  referendum may result in an increase in your property taxes." 
475.29     (c) A referendum on the question of revoking or reducing 
475.30  the increased revenue amount authorized pursuant to paragraph 
475.31  (a) may be called by the school board and shall be called by the 
475.32  school board upon the written petition of qualified voters of 
475.33  the district.  A referendum to revoke or reduce the levy amount 
475.34  must be based upon the dollar amount, local tax rate, or amount 
475.35  per actual pupil unit, that was stated to be the basis for the 
475.36  initial authorization.  Revenue approved by the voters of the 
476.1   district pursuant to paragraph (a) must be received at least 
476.2   once before it is subject to a referendum on its revocation or 
476.3   reduction for subsequent years.  Only one revocation or 
476.4   reduction referendum may be held to revoke or reduce referendum 
476.5   revenue for any specific year and for years thereafter. 
476.6      (d) A petition authorized by paragraph (a) or (c) shall be 
476.7   is effective if signed by a number of qualified voters in excess 
476.8   of 15 percent of the registered voters of the school district on 
476.9   the day the petition is filed with the school board.  A 
476.10  referendum invoked by petition shall must be held on the date 
476.11  specified in paragraph (a). 
476.12     (e) The approval of 50 percent plus one of those voting on 
476.13  the question is required to pass a referendum authorized by this 
476.14  subdivision. 
476.15     (f) At least 15 days prior to before the day of the 
476.16  referendum, the district shall must submit a copy of the notice 
476.17  required under paragraph (b) to the commissioner of children, 
476.18  families, and learning and to the county auditor of each county 
476.19  in which the school district is located.  Within 15 days after 
476.20  the results of the referendum have been certified by the school 
476.21  board, or in the case of a recount, the certification of the 
476.22  results of the recount by the canvassing board, the 
476.23  district shall must notify the commissioner of children, 
476.24  families, and learning of the results of the referendum. 
476.25     (g) Except for a referendum held under subdivision 2b, any 
476.26  referendum under this section held on a day other than the first 
476.27  Tuesday after the first Monday in November must be conducted by 
476.28  mail in accordance with section 204B.46.  Notwithstanding 
476.29  paragraph (b) to the contrary, in the case of a referendum 
476.30  conducted by mail under this paragraph, the notice required by 
476.31  paragraph (b) shall must be prepared and delivered by first 
476.32  class mail at least 20 days before the referendum. 
476.33     Sec. 133.  Minnesota Statutes 1996, section 124A.03, 
476.34  subdivision 2a, is amended to read: 
476.35     Subd. 2a.  [SCHOOL REFERENDUM LEVY; MARKET VALUE.] 
476.36  Notwithstanding the provisions of subdivision 2, a school 
477.1   referendum levy approved after November 1, 1992, for taxes 
477.2   payable in 1993 and thereafter, shall must be levied against the 
477.3   referendum market value of all taxable property as defined in 
477.4   section 124A.02, subdivision 3b.  Any referendum levy amount 
477.5   subject to the requirements of this subdivision shall must be 
477.6   certified separately to the county auditor under section 275.07. 
477.7      All other provisions of subdivision 2 that do not conflict 
477.8   with this subdivision shall apply to referendum levies under 
477.9   this subdivision.  
477.10     Sec. 134.  Minnesota Statutes 1996, section 124A.03, 
477.11  subdivision 3c, is amended to read: 
477.12     Subd. 3c.  [REFERENDUM ALLOWANCE REDUCTION.] For fiscal 
477.13  year 1998 and later, a district's referendum allowance for 
477.14  referendum authority under subdivision 1c is reduced as provided 
477.15  in this subdivision.  
477.16     (a) For referendum revenue authority approved before June 
477.17  1, 1996, and effective for fiscal year 1997, the reduction 
477.18  equals the amount of the reduction computed for fiscal year 1997 
477.19  under subdivision 3b.  
477.20     (b) For referendum revenue authority approved before June 
477.21  1, 1996, and effective beginning in fiscal year 1998, the 
477.22  reduction equals the amount of the reduction computed for fiscal 
477.23  year 1998 under subdivision 3b.  
477.24     (c) For referendum revenue authority approved after May 31, 
477.25  1996, there is no reduction.  
477.26     (d) For districts with more than one referendum authority, 
477.27  the reduction shall must be computed separately for each 
477.28  authority.  The reduction shall must be applied first to 
477.29  authorities levied against tax capacity, and then to authorities 
477.30  levied against referendum market value.  For districts with more 
477.31  than one authority levied against net tax capacity or against 
477.32  referendum market value, the referendum allowance reduction 
477.33  shall must be applied first to the authority with the earliest 
477.34  expiration date. 
477.35     (e) For a newly reorganized district created after July 1, 
477.36  1996, the referendum revenue reduction equals the lesser of the 
478.1   amount calculated for the combined district, or the sum of the 
478.2   amounts by which each of the reorganizing district's 
478.3   supplemental revenue reduction exceeds its respective 
478.4   supplemental revenue allowances calculated for the year 
478.5   preceding the year of reorganization. 
478.6      Sec. 135.  Minnesota Statutes 1996, section 124A.0311, 
478.7   subdivision 2, is amended to read: 
478.8      Subd. 2.  [CONVERSION TO MARKET VALUE.] (a) Prior to June 
478.9   1, 1997, By June 1 of each year, a school board may, by 
478.10  resolution of a majority of its board, convert any remaining 
478.11  portion of its referendum authority under section 124A.03, 
478.12  subdivision 2, that is authorized to be levied against net tax 
478.13  capacity to referendum authority that is authorized to be levied 
478.14  against the referendum market value of all taxable property 
478.15  located within the school district.  At the option of the school 
478.16  board, any remaining portion of its referendum authority may be 
478.17  converted in two or more parts at separate times.  The 
478.18  referendum authority may be converted from net tax capacity to 
478.19  referendum market value according to a schedule adopted by 
478.20  resolution of the school board for years prior to before taxes 
478.21  payable in 2001, provided that, for taxes payable in 2001 and 
478.22  later, the full amount of the referendum authority is levied 
478.23  against referendum market value.  The board must notify the 
478.24  commissioner of children, families, and learning of the amount 
478.25  of referendum authority that has been converted from net tax 
478.26  capacity to referendum market value, if any, by June 15, of each 
478.27  year.  The maximum length of a referendum converted under this 
478.28  paragraph is ten years. 
478.29     (b) For referendum levy amounts converted between June 1, 
478.30  1997, and June 1, 1998, all other conditions of this subdivision 
478.31  apply except that the maximum length of the referendum is 
478.32  limited to seven years. 
478.33     (c) For referendum levy amounts converted between June 1, 
478.34  1998, and June 1, 1999, all other conditions of this subdivision 
478.35  apply except that the maximum length of the referendum is 
478.36  limited to six years. 
479.1      (d) For referendum levy amounts converted between June 1, 
479.2   1999, and June 1, 2000, all other conditions of this subdivision 
479.3   apply except that the maximum length of the referendum is 
479.4   limited to five years. 
479.5      Sec. 136.  Minnesota Statutes 1996, section 124A.0311, 
479.6   subdivision 3, is amended to read: 
479.7      Subd. 3.  [ALTERNATIVE CONVERSION.] A school district that 
479.8   has a referendum that is levied against net tax capacity that 
479.9   expires before taxes payable in 1998 may convert its referendum 
479.10  authority according to this subdivision.  In the payable year 
479.11  prior to before the year of expiration, the school board may 
479.12  authorize a referendum under section 124A.03.  Notwithstanding 
479.13  any other law to the contrary, the district may propose, and if 
479.14  approved by its electors, have its referendum authority 
479.15  reauthorized in part on tax capacity and in part on referendum 
479.16  market value according to a schedule adopted by resolution of 
479.17  the school board for years prior to before taxes payable in 
479.18  2001, provided that, for taxes payable in 2001 and later, the 
479.19  full amount of referendum authority is levied against referendum 
479.20  market value.  If the full amount of the referendum is 
479.21  reauthorized on referendum market value prior to taxes payable 
479.22  in 1998, the referendum may extend for ten years.  If the 
479.23  referendum becomes fully reauthorized on referendum market value 
479.24  for a later year, the referendum shall must not extend for more 
479.25  than the maximum number of years allowed under subdivision 2. 
479.26     Sec. 137.  Minnesota Statutes 1996, section 124A.0311, 
479.27  subdivision 4, is amended to read: 
479.28     Subd. 4.  [REFERENDUM.] The school board must prepare and 
479.29  publish in the official legal newspaper of the school district a 
479.30  notice of the public meeting on the district's intent to convert 
479.31  any portion of its referendum levy to market value not less than 
479.32  30 days before the scheduled date of the meeting.  The 
479.33  resolution converting a portion of the district's referendum 
479.34  levy to referendum market value becomes final unless within 30 
479.35  days after the meeting where the resolution was adopted a 
479.36  petition requesting an election signed by a number of qualified 
480.1   voters in excess of 15 percent of the registered voters of the 
480.2   school district on the day the petition is filed with the school 
480.3   board.  If a petition is filed, then the school board resolution 
480.4   has no effect and the amount of referendum revenue authority 
480.5   specified in the resolution cancels for taxes payable in the 
480.6   following year and thereafter.  The school board shall must 
480.7   schedule a referendum under section 124A.03, subdivision 2. 
480.8      Sec. 138.  Minnesota Statutes 1996, section 124A.032, is 
480.9   amended to read: 
480.10     124A.032 [ANNUAL FOUNDATION OR GENERAL EDUCATION AID 
480.11  APPROPRIATION.] 
480.12     There is annually appropriated from the general fund to the 
480.13  department of children, families, and learning the amount 
480.14  necessary for general education aid.  This amount shall must be 
480.15  reduced by the amount of any money specifically appropriated for 
480.16  the same purpose in any year from any state fund.  
480.17     Sec. 139.  Minnesota Statutes 1996, section 124A.034, is 
480.18  amended to read: 
480.19     124A.034 [SHARED TIME AID.] 
480.20     Subdivision 1.  [TO RESIDENT DISTRICT.] Aid for shared time 
480.21  pupils shall must be paid to the district of the pupil's 
480.22  residence.  If a pupil attends shared time classes in another 
480.23  district, the resident district shall must pay to the district 
480.24  of attendance an amount of tuition equal to the ratio in section 
480.25  124A.02, subdivision 20, times the amount of tuition which that 
480.26  would be charged and paid for a nonresident public school pupil 
480.27  in a similar circumstance.  The district of residence shall is 
480.28  not be obligated for tuition except by previous agreement. 
480.29     Subd. 1a.  [EXCEPTION.] Notwithstanding the provisions of 
480.30  subdivision 1, the resident district of a shared time pupil 
480.31  attending shared time classes in another district may grant the 
480.32  district of attendance, upon its request, permission to claim 
480.33  the pupil as a resident for state aid purposes.  In this case, 
480.34  state aid shall must be paid to the district of attendance and, 
480.35  upon agreement, the district of attendance may bill the resident 
480.36  district for any unreimbursed education costs, but not for 
481.1   unreimbursed transportation costs.  The agreement may, however, 
481.2   provide for the resident district to pay the cost of any of the 
481.3   particular transportation categories specified in section 
481.4   124.225, subdivision 1, and in this case, aid for those 
481.5   categories shall must be paid to the district of residence 
481.6   rather than to the district of attendance.  
481.7      Subd. 1b.  [SECTION 123.935 SERVICES.] Minutes of 
481.8   enrollment in a public school during which a nonpublic school 
481.9   pupil receives services pursuant to section 123.935 shall must 
481.10  not be used in the computation of shared time aid. 
481.11     Subd. 2.  [LOCATION OF SERVICES.] Public school programs 
481.12  may be provided to shared time pupils only at a public school 
481.13  building; provided, however, that.  Special instruction and 
481.14  services for children with a disability required pursuant to 
481.15  section 120.17 may also be provided at a neutral site as defined 
481.16  in section 123.932, and diagnostic and health services required 
481.17  pursuant to section 120.17 may also be provided at a nonpublic 
481.18  school building.  As used in this subdivision, "diagnostic 
481.19  services" means speech, hearing, vision, psychological, medical 
481.20  and dental diagnostic services and "health services" means 
481.21  physician, nursing or optometric services provided to pupils in 
481.22  the field of physical and mental health.  
481.23     Sec. 140.  Minnesota Statutes 1996, section 124A.035, is 
481.24  amended to read: 
481.25     124A.035 [DEDUCTIONS FROM GENERAL EDUCATION AID.] 
481.26     Subd. 2.  [PERMANENT SCHOOL FUND.] The amount of money 
481.27  received by a school district as income from the permanent 
481.28  school fund for any year, shall must be deducted from the 
481.29  general education aid earned by the district for the same year 
481.30  or from aid earned from other state sources.  
481.31     Subd. 3.  [MINIMUM.] In no event shall The amount payable 
481.32  to any district from state sources for any one year may not be 
481.33  reduced below the amount payable as apportionment of the school 
481.34  endowment fund pursuant to sections 124.08 to 124.10.  
481.35     Subd. 4.  [COUNTY APPORTIONMENT DEDUCTION.] Each year the 
481.36  amount of money apportioned to a school district for that year 
482.1   pursuant to section 124.10, subdivision 2, excluding any 
482.2   district where the general education levy is determined 
482.3   according to section 124A.23, subdivision 3, shall must be 
482.4   deducted from the general education aid earned by that district 
482.5   for the same year or from aid earned from other state sources.  
482.6      Subd. 5.  [TACONITE DEDUCTIONS.] (1) Notwithstanding any 
482.7   provisions of any other law to the contrary, the adjusted net 
482.8   tax capacity used in calculating general education aid shall may 
482.9   include only that property which that is currently taxable in 
482.10  the district.  
482.11     (2) For districts that received payments under sections 
482.12  298.018; 298.23 to 298.28; 298.34 to 298.39; 298.391 to 298.396; 
482.13  and 298.405; any law imposing a tax upon severed mineral values, 
482.14  or recognized revenue pursuant to section 477A.15; the general 
482.15  education aid shall must be reduced in the final adjustment 
482.16  payment by the difference between the dollar amount of the 
482.17  payments received pursuant to those sections, or revenue 
482.18  recognized pursuant to section 477A.15 in the fiscal year to 
482.19  which the final adjustment is attributable and the amount which 
482.20  that was calculated, pursuant to section 124.918, subdivision 8, 
482.21  as a reduction of the levy attributable to the fiscal year to 
482.22  which the final adjustment is attributable.  If the final 
482.23  adjustment of a district's general education aid for a fiscal 
482.24  year is a negative amount because of this clause, the next 
482.25  fiscal year's general education aid to that district shall must 
482.26  be reduced by this negative amount in the following manner:  
482.27  there shall must be withheld from each scheduled general 
482.28  education aid payment due the district in such fiscal year, 15 
482.29  percent of the total negative amount, until the total negative 
482.30  amount has been withheld.  The amount reduced from general 
482.31  education aid pursuant to this clause shall must be recognized 
482.32  as revenue in the fiscal year to which the final adjustment 
482.33  payment is attributable.  
482.34     Sec. 141.  Minnesota Statutes 1996, section 124A.04, as 
482.35  amended by Laws 1997, First Special Session chapter 4, article 
482.36  1, section 35, is amended to read: 
483.1      124A.04 [TRAINING AND EXPERIENCE INDEX.] 
483.2      Subd. 2.  [1999 AND LATER.] The training and experience 
483.3   index for fiscal year 1999 and later must be constructed in the 
483.4   following manner:  
483.5      (a) The department shall must construct a matrix that 
483.6   classifies teachers by the extent of training received in 
483.7   accredited institutions of higher education and by the years of 
483.8   experience that districts take into account in determining 
483.9   teacher salaries. 
483.10     (b) The average salary for each cell of the matrix must be 
483.11  computed as follows using data from fiscal year 1997:  
483.12     (1) For each school district, multiply the salary paid to 
483.13  full-time equivalent teachers with that combination of training 
483.14  and experience according to the district's teacher salary 
483.15  schedule by the number of actual pupil units in that district.  
483.16     (2) Add the amounts computed in clause (1) for all 
483.17  districts in the state and divide the resulting sum by the total 
483.18  number of actual pupil units in all districts in the state that 
483.19  employ teachers.  
483.20     (c) For each cell in the matrix, compute the ratio of the 
483.21  average salary in that cell to the average salary for all 
483.22  teachers in the state during fiscal year 1997.  
483.23     (d) The index for each district that employs teachers 
483.24  equals the sum of:  (i) for teachers employed in that district 
483.25  during fiscal year 1997 and the current fiscal year, the ratios 
483.26  for each teacher computed using data for fiscal year 1997; and 
483.27  (ii) for teachers employed in that district during the current 
483.28  fiscal year but not during fiscal year 1997, the ratio for 
483.29  teachers who are in their first year of teaching and who have no 
483.30  additional credits or degrees above a bachelor's degree divided 
483.31  by the number of teachers in that district.  The index for a 
483.32  district that employs no teachers is zero. 
483.33     Sec. 142.  Minnesota Statutes 1996, section 124A.22, 
483.34  subdivision 2a, is amended to read: 
483.35     Subd. 2a.  [CONTRACT DEADLINE AND PENALTY.] (a) The 
483.36  following definitions apply to this subdivision:  
484.1      (1) "Public employer" means:  
484.2      (i) a school district; and 
484.3      (ii) a public employer, as defined by section 179A.03, 
484.4   subdivision 15, other than a school district that (i) negotiates 
484.5   a contract under chapter 179A with teachers, and (ii) is 
484.6   established by, receives state money, or levies under chapters 
484.7   120 to 129, or 136D, or 268A. 
484.8      (2) "Teacher" means a person, other than a superintendent 
484.9   or assistant superintendent, principal, assistant principal, or 
484.10  a supervisor or confidential employee who occupies a position 
484.11  for which the person must be licensed by the board of teaching, 
484.12  state board of education, the former board of technical 
484.13  colleges, or the board of trustees of the Minnesota state 
484.14  colleges and universities. 
484.15     (b) Notwithstanding any law to the contrary, a public 
484.16  employer and the exclusive representative of the teachers shall 
484.17  must both sign a collective bargaining agreement on or before 
484.18  January 15 of an even-numbered calendar year.  If a collective 
484.19  bargaining agreement is not signed by that date, state aid paid 
484.20  to the public employer for that fiscal year shall must be 
484.21  reduced.  However, state aid shall must not be reduced if: 
484.22     (1) a public employer and the exclusive representative of 
484.23  the teachers have submitted all unresolved contract items to 
484.24  interest arbitration according to section 179A.16 before 
484.25  December 31 of an odd-numbered year and filed required final 
484.26  positions on all unresolved items with the commissioner of 
484.27  mediation services before January 15 of an even-numbered year; 
484.28  and 
484.29     (2) the arbitration panel has issued its decision within 60 
484.30  days after the date the final positions were filed. 
484.31     (c)(1) For a district that reorganizes according to section 
484.32  122.22, 122.23, or 122.241 to 122.248 effective July 1 of an 
484.33  odd-numbered year, state aid shall must not be reduced according 
484.34  to this subdivision if the school board and the exclusive 
484.35  representative of the teachers both sign a collective bargaining 
484.36  agreement on or before the March 15 following the effective date 
485.1   of reorganization.  
485.2      (2) For a district that jointly negotiates a contract prior 
485.3   to before the effective date of reorganization under section 
485.4   122.22, 122.23, or 122.241 to 122.248 that, for the first time, 
485.5   includes teachers in all districts to be reorganized, state 
485.6   aid shall must not be reduced according to this subdivision if 
485.7   the school board and the exclusive representative of the 
485.8   teachers sign a collective bargaining agreement on or before the 
485.9   March 15 following the expiration of the teacher contracts in 
485.10  each district involved in the joint negotiation. 
485.11     (3) Only one extension of the contract deadline is 
485.12  available to a district under this paragraph. 
485.13     (d) The reduction shall must equal $25 times the number of 
485.14  fund balance pupil units:  
485.15     (1) for a school district, that are in the district during 
485.16  that fiscal year; or 
485.17     (2) for a public employer other than a school district, 
485.18  that are in programs provided by the employer during the 
485.19  preceding fiscal year. 
485.20     The department of children, families, and learning shall 
485.21  must determine the number of full-time equivalent actual pupil 
485.22  units in the programs.  The department of children, families, 
485.23  and learning shall must reduce general education aid; if general 
485.24  education aid is insufficient or not paid, the department shall 
485.25  must reduce other state aids. 
485.26     (e) Reductions from aid to school districts and public 
485.27  employers other than school districts shall must be returned to 
485.28  the general fund. 
485.29     Sec. 143.  Minnesota Statutes 1996, section 124A.22, 
485.30  subdivision 5, is amended to read: 
485.31     Subd. 5.  [DEFINITIONS.] The definitions in this 
485.32  subdivision apply only to subdivisions 6 and 6a.  
485.33     (a) "High school" means a secondary school that has pupils 
485.34  enrolled in at least the 10th, 11th, and 12th grades.  If there 
485.35  is no secondary school in the district that has pupils enrolled 
485.36  in at least the 10th, 11th, and 12th grades, and the school is 
486.1   at least 19 miles from the next nearest school, the commissioner 
486.2   shall must designate one school in the district as a high school 
486.3   for the purposes of this section. 
486.4      (b) "Secondary average daily membership" means, for a 
486.5   district that has only one high school, the average daily 
486.6   membership of resident pupils in grades 7 through 12.  For a 
486.7   district that has more than one high school, "secondary average 
486.8   daily membership" for each high school means the product of the 
486.9   average daily membership of resident pupils in grades 7 through 
486.10  12 in the high school, times the ratio of six to the number of 
486.11  grades in the high school. 
486.12     (c) "Attendance area" means the total surface area of the 
486.13  district, in square miles, divided by the number of high schools 
486.14  in the district.  For a district that does not operate a high 
486.15  school and is less than 19 miles from the nearest operating high 
486.16  school, the attendance area equals zero. 
486.17     (d) "Isolation index" for a high school means the square 
486.18  root of 55 percent of the attendance area plus the distance in 
486.19  miles, according to the usually traveled routes, between the 
486.20  high school and the nearest high school.  For a district in 
486.21  which there is located land defined in section 84A.01, 84A.20, 
486.22  or 84A.31, the distance in miles is the sum of: 
486.23     (1) the square root of one-half of the attendance area; and 
486.24     (2) the distance from the border of the district to the 
486.25  nearest high school. 
486.26     (e) "Qualifying high school" means a high school that has 
486.27  an isolation index greater than 23 and that has secondary 
486.28  average daily membership of less than 400.  
486.29     (f) "Qualifying elementary school" means an elementary 
486.30  school that is located 19 miles or more from the nearest 
486.31  elementary school or from the nearest elementary school within 
486.32  the district and, in either case, has an elementary average 
486.33  daily membership of an average of 20 or fewer per grade. 
486.34     (g) "Elementary average daily membership" means, for a 
486.35  district that has only one elementary school, the average daily 
486.36  membership of resident pupils in kindergarten through grade 6.  
487.1   For a district that has more than one elementary school, 
487.2   "average daily membership" for each school means the average 
487.3   daily membership of kindergarten through grade 6 multiplied by 
487.4   the ratio of seven to the number of grades in the elementary 
487.5   school.  For a building in a district where the nearest 
487.6   elementary school is at least 65 miles distant, pupils served 
487.7   shall must be used to determine average daily membership. 
487.8      Sec. 144.  Minnesota Statutes 1997 Supplement, section 
487.9   124A.22, subdivision 6, is amended to read: 
487.10     Subd. 6.  [SECONDARY SPARSITY REVENUE.] (a) A district's 
487.11  secondary sparsity revenue for a school year equals the sum of 
487.12  the results of the following calculation for each qualifying 
487.13  high school in the district: 
487.14     (1) the formula allowance for the school year, multiplied 
487.15  by 
487.16     (2) the secondary average daily membership of the high 
487.17  school, multiplied by 
487.18     (3) the quotient obtained by dividing 400 minus the 
487.19  secondary average daily membership by 400 plus the secondary 
487.20  daily membership, multiplied by 
487.21     (4) the lesser of 1.5 or the quotient obtained by dividing 
487.22  the isolation index minus 23 by ten. 
487.23     (b) A newly formed school district that is the result of 
487.24  districts combining under the cooperation and combination 
487.25  program or consolidating under section 122.23 shall must receive 
487.26  secondary sparsity revenue equal to the greater of:  (1) the 
487.27  amount calculated under paragraph (a) for the combined district; 
487.28  or (2) the sum of the amounts of secondary sparsity revenue the 
487.29  former school districts had in the year prior to consolidation, 
487.30  increased for any subsequent changes in the secondary sparsity 
487.31  formula. 
487.32     Sec. 145.  Minnesota Statutes 1996, section 124A.22, 
487.33  subdivision 8, is amended to read: 
487.34     Subd. 8.  [SUPPLEMENTAL REVENUE.] (a) A district's 
487.35  supplemental revenue allowance for fiscal year 1994 and later 
487.36  fiscal years equals the district's supplemental revenue for 
488.1   fiscal year 1993 divided by the district's 1992-1993 actual 
488.2   pupil units. 
488.3      (b) A district's supplemental revenue allowance is reduced 
488.4   for fiscal year 1995 and later according to subdivision 9. 
488.5      (c) A district's supplemental revenue equals the 
488.6   supplemental revenue allowance, if any, times its actual pupil 
488.7   units for that year.  
488.8      (d) A school district may cancel its supplemental revenue 
488.9   by notifying the commissioner of education prior to June 30, 
488.10  1994.  A school district that is reorganizing under section 
488.11  122.22, 122.23, or 122.241 may cancel its supplemental revenue 
488.12  by notifying the commissioner of children, families, and 
488.13  learning prior to before July 1 of the year of the 
488.14  reorganization.  If a district cancels its supplemental revenue 
488.15  according to this paragraph, its supplemental revenue allowance 
488.16  for fiscal year 1993 for purposes of subdivision 9 and section 
488.17  124A.03, subdivision 3b, equals zero. 
488.18     Sec. 146.  Minnesota Statutes 1997 Supplement, section 
488.19  124A.22, subdivision 11, is amended to read: 
488.20     Subd. 11.  [USES OF TOTAL OPERATING CAPITAL REVENUE.] Total 
488.21  operating capital revenue may be used only for the following 
488.22  purposes: 
488.23     (1) to acquire land for school purposes; 
488.24     (2) to acquire or construct buildings for school purposes, 
488.25  up to $400,000; 
488.26     (3) to rent or lease buildings, including the costs of 
488.27  building repair or improvement that are part of a lease 
488.28  agreement; 
488.29     (4) to improve and repair school sites and buildings, and 
488.30  equip or reequip school buildings with permanent attached 
488.31  fixtures; 
488.32     (5) for a surplus school building that is used 
488.33  substantially for a public nonschool purpose; 
488.34     (6) to eliminate barriers or increase access to school 
488.35  buildings by individuals with a disability; 
488.36     (7) to bring school buildings into compliance with the 
489.1   uniform fire code adopted according to chapter 299F; 
489.2      (8) to remove asbestos from school buildings, encapsulate 
489.3   asbestos, or make asbestos-related repairs; 
489.4      (9) to clean up and dispose of polychlorinated biphenyls 
489.5   found in school buildings; 
489.6      (10) to clean up, remove, dispose of, and make repairs 
489.7   related to storing heating fuel or transportation fuels such as 
489.8   alcohol, gasoline, fuel oil, and special fuel, as defined in 
489.9   section 296.01; 
489.10     (11) for energy audits for school buildings and to modify 
489.11  buildings if the audit indicates the cost of the modification 
489.12  can be recovered within ten years; 
489.13     (12) to improve buildings that are leased according to 
489.14  section 123.36, subdivision 10; 
489.15     (13) to pay special assessments levied against school 
489.16  property but not to pay assessments for service charges; 
489.17     (14) to pay principal and interest on state loans for 
489.18  energy conservation according to section 216C.37 or loans made 
489.19  under the Northeast Minnesota Economic Protection Trust Fund Act 
489.20  according to sections 298.292 to 298.298; 
489.21     (15) to purchase or lease interactive telecommunications 
489.22  equipment; 
489.23     (16) by school board resolution, to transfer money into the 
489.24  debt redemption fund to:  (i) pay the amounts needed to meet, 
489.25  when due, principal and interest payments on certain obligations 
489.26  issued according to chapter 475; or (ii) pay principal and 
489.27  interest on debt service loans or capital loans according to 
489.28  section 124.44; 
489.29     (17) to pay capital expenditure equipment-related 
489.30  assessments of any entity formed under a cooperative agreement 
489.31  between two or more districts; 
489.32     (18) to purchase or lease computers and related materials, 
489.33  copying machines, telecommunications equipment, and other 
489.34  noninstructional equipment; 
489.35     (19) to purchase or lease assistive technology or equipment 
489.36  for instructional programs; 
490.1      (20) to purchase textbooks; 
490.2      (21) to purchase new and replacement library books; 
490.3      (22) to purchase vehicles; 
490.4      (23) to purchase or lease telecommunications equipment, 
490.5   computers, and related equipment for integrated information 
490.6   management systems for: 
490.7      (i) managing and reporting learner outcome information for 
490.8   all students under a results-oriented graduation rule; 
490.9      (ii) managing student assessment, services, and achievement 
490.10  information required for students with individual education 
490.11  plans; and 
490.12     (iii) other classroom information management needs; and 
490.13     (24) to pay personnel costs directly related to the 
490.14  acquisition, operation, and maintenance of telecommunications 
490.15  systems, computers, related equipment, and network and 
490.16  applications software. 
490.17     Sec. 147.  Minnesota Statutes 1996, section 124A.22, 
490.18  subdivision 12, is amended to read: 
490.19     Subd. 12.  [MAINTENANCE COST INDEX.] (a) A district's 
490.20  maintenance cost index is equal to the ratio of: 
490.21     (1) the total weighted square footage for all eligible 
490.22  district-owned facilities; and 
490.23     (2) the total unweighted square footage of these facilities.
490.24     (b) The department shall determine a district's maintenance 
490.25  cost index annually.  Eligible district-owned facilities shall 
490.26  must include only instructional or administrative square footage 
490.27  owned by the district.  The commissioner of children, families, 
490.28  and learning may adjust the age of a building or addition for 
490.29  major renovation projects. 
490.30     (c) The square footage weighting factor for each original 
490.31  building or addition equals the lesser of: 
490.32     (1) one plus the ratio of the age in years to 100; or 
490.33     (2) 1.5. 
490.34     (d) The weighted square footage for each original building 
490.35  or addition equals the product of the unweighted square footage 
490.36  times the square footage weighting factor. 
491.1      Sec. 148.  Minnesota Statutes 1997 Supplement, section 
491.2   124A.22, subdivision 13, is amended to read: 
491.3      Subd. 13.  [TRANSPORTATION SPARSITY DEFINITIONS.] The 
491.4   definitions in this subdivision apply to subdivisions 13a and 
491.5   13b. 
491.6      (a) "Sparsity index" for a school district means the 
491.7   greater of .2 or the ratio of the square mile area of the school 
491.8   district to the actual pupil units of the school district. 
491.9      (b) "Density index" for a school district means the ratio 
491.10  of the square mile area of the school district to the actual 
491.11  pupil units of the school district.  However, the density index 
491.12  for a school district cannot be greater than .2 or less than 
491.13  .005. 
491.14     (c) "Fiscal year 1996 base allowance" for a school district 
491.15  means the result of the following computation: 
491.16     (1) sum the following amounts: 
491.17     (i) the fiscal year 1996 regular transportation revenue for 
491.18  the school district according to section 124.225, subdivision 
491.19  7d, paragraph (a), excluding the revenue attributable nonpublic 
491.20  school pupils and to pupils with disabilities receiving special 
491.21  transportation services; plus 
491.22     (ii) the fiscal year 1996 nonregular transportation revenue 
491.23  for the school district according to section 124.225, 
491.24  subdivision 7d, paragraph (b), excluding the revenue for 
491.25  desegregation transportation according to section 124.225, 
491.26  subdivision 1, paragraph (c), clause (4), and the revenue 
491.27  attributable to nonpublic school pupils and to pupils with 
491.28  disabilities receiving special transportation services or board 
491.29  and lodging; plus 
491.30     (iii) the fiscal year 1996 excess transportation levy for 
491.31  the school district according to section 124.226, subdivision 5, 
491.32  excluding the levy attributable to nonpublic school pupils; plus 
491.33     (iv) the fiscal year 1996 late activity bus levy for the 
491.34  school district according to section 124.226, subdivision 9, 
491.35  excluding the levy attributable to nonpublic school pupils; plus 
491.36     (v) an amount equal to one-third of the fiscal year 1996 
492.1   bus depreciation for the school district according to section 
492.2   124.225, subdivision 1, paragraph (b), clauses (2), (3), and (4).
492.3      (2) divide the result in clause (1) by the school 
492.4   district's 1995-1996 fund balance pupil units. 
492.5      Sec. 149.  Minnesota Statutes 1996, section 124A.225, 
492.6   subdivision 4, is amended to read: 
492.7      Subd. 4.  [REVENUE USE.] (a) Revenue must be used according 
492.8   to either paragraph (b), or (c), or (d). 
492.9      (b) Revenue shall must be used to reduce and maintain the 
492.10  district's instructor to learner ratios in kindergarten through 
492.11  grade 6 to a level of 1 to 17 on average.  The district must 
492.12  prioritize the use of the revenue to attain this level initially 
492.13  in kindergarten and grade 1 and then through the subsequent 
492.14  grades as revenue is available.  
492.15     (c) Notwithstanding paragraph (b), for fiscal year 1995, a 
492.16  district with exceptional need as defined in subdivision 6, 
492.17  paragraph (a), may use the revenue to reduce and maintain the 
492.18  district's instructor-to-learner ratios in kindergarten through 
492.19  grade 6 to a level that is at least 2.0 less than the district's 
492.20  adopted staffing ratio, if the remaining learning and 
492.21  development revenue is used to continue or initiate staffing 
492.22  patterns that meet the needs of a diverse student population.  
492.23  Programs to meet the needs of a diverse student population may 
492.24  include programs for at-risk pupils and learning enrichment 
492.25  programs. 
492.26     (d) For fiscal year 1995 only, in any school building that 
492.27  meets the characteristics of exceptional need as defined in 
492.28  subdivision 6, paragraph (b), a district may use the revenue to 
492.29  employ education assistants or aides supervised by a learner's 
492.30  regular instructor to assist learners in those school buildings. 
492.31     (e) The revenue may be used to prepare and use an 
492.32  individualized learning plan for each learner.  A district must 
492.33  not increase the district wide instructor-learner 
492.34  instructor-to-learner ratios in other grades as a result of 
492.35  reducing instructor-learner instructor-to-learner ratios in 
492.36  kindergarten through grade 6.  Revenue may not be used to 
493.1   provide instructor preparation time or to provide the district's 
493.2   share of revenue required under section 124.311.  A school 
493.3   district may use a portion of the revenue reserved under this 
493.4   section to employ up to the same number of full-time equivalent 
493.5   education assistants or aides as the district employed during 
493.6   the 1992-1993 school year under Minnesota Statutes 1992, section 
493.7   124.331, subdivision 2. 
493.8      Sec. 150.  Minnesota Statutes 1996, section 124A.225, 
493.9   subdivision 5, is amended to read: 
493.10     Subd. 5.  [ADDITIONAL REVENUE USE.] If the school board of 
493.11  a school district determines that the district has achieved and 
493.12  is maintaining the instructor-learner instructor-to-learner 
493.13  ratios specified in subdivision 4 and is using individualized 
493.14  learning plans, the school board may use the revenue to purchase 
493.15  material and services or provide staff development needed for 
493.16  reduced instructor-learner instructor-to-learner ratios.  If 
493.17  additional revenue remains, the district must use the revenue to 
493.18  improve program offerings, including programs provided through 
493.19  interactive television, throughout the district or other general 
493.20  education purposes. 
493.21     Sec. 151.  Minnesota Statutes 1997 Supplement, section 
493.22  124A.23, subdivision 1, is amended to read: 
493.23     Subdivision 1.  [GENERAL EDUCATION TAX RATE.] The 
493.24  commissioner shall must establish the general education tax rate 
493.25  by July 1 of each year for levies payable in the following year. 
493.26  The general education tax capacity rate shall must be a rate, 
493.27  rounded up to the nearest hundredth of a percent, that, when 
493.28  applied to the adjusted net tax capacity for all districts, 
493.29  raises the amount specified in this subdivision.  The general 
493.30  education tax rate shall must be the rate that raises 
493.31  $1,359,000,000 for fiscal year 1998 and $1,385,500,000 for 
493.32  fiscal year 1999 and later fiscal years.  The general education 
493.33  tax rate may not be changed due to changes or corrections made 
493.34  to a district's adjusted net tax capacity after the tax rate has 
493.35  been established.  If the levy target for fiscal year 1999 is 
493.36  changed by another law enacted during the 1997 session, the 
494.1   commissioner shall reduce the target in this bill by the amount 
494.2   of the reduction in the enacted law. 
494.3      Sec. 152.  Minnesota Statutes 1997 Supplement, section 
494.4   124A.23, subdivision 2, is amended to read: 
494.5      Subd. 2.  [GENERAL EDUCATION LEVY.] To obtain general 
494.6   education revenue, excluding transition revenue and supplemental 
494.7   revenue, a district may levy an amount not to exceed the general 
494.8   education tax rate times the adjusted net tax capacity of the 
494.9   district for the preceding year.  If the amount of the general 
494.10  education levy would exceed the general education revenue, 
494.11  excluding supplemental revenue, the general education levy shall 
494.12  must be determined according to subdivision 3.  
494.13     Sec. 153.  Minnesota Statutes 1997 Supplement, section 
494.14  124A.23, subdivision 3, is amended to read: 
494.15     Subd. 3.  [GENERAL EDUCATION LEVY; DISTRICTS OFF THE 
494.16  FORMULA.] If the amount of the general education levy for a 
494.17  district exceeds the district's general education revenue, 
494.18  excluding transition revenue and supplemental revenue, the 
494.19  amount of the general education levy shall must be limited to 
494.20  the following: 
494.21     (1) the district's general education revenue, excluding 
494.22  transition revenue and supplemental revenue; plus 
494.23     (2) the amount of the aid reduction for the same school 
494.24  year according to section 124A.24; minus 
494.25     (3) payments made for the same school year according to 
494.26  section 124A.035, subdivision 4. 
494.27     For purposes of statutory cross-reference, a levy made 
494.28  according to this subdivision shall be construed to be the levy 
494.29  made according to subdivision 2. 
494.30     Sec. 154.  Minnesota Statutes 1997 Supplement, section 
494.31  124A.28, subdivision 3, is amended to read: 
494.32     Subd. 3.  [ANNUAL EXPENDITURE REPORT.] Each year a district 
494.33  that receives compensatory education revenue shall must submit a 
494.34  report identifying the expenditures it incurred to meet the 
494.35  needs of eligible learners under subdivision 1.  The report must 
494.36  conform to uniform financial and reporting standards established 
495.1   for this purpose. 
495.2      Sec. 155.  Minnesota Statutes 1996, section 124A.30, is 
495.3   amended to read: 
495.4      124A.30 [STATEWIDE AVERAGE REVENUE.] 
495.5      By October 1 of each year the commissioner shall must 
495.6   estimate the statewide average general education revenue per 
495.7   actual pupil unit and the range in general education revenue 
495.8   among pupils and districts by computing the difference between 
495.9   the fifth and ninety-fifth percentiles of general education 
495.10  revenue.  The commissioner must provide that information to 
495.11  all school districts. 
495.12     If the disparity in general education revenue as measured 
495.13  by the difference between the fifth and ninety-fifth percentiles 
495.14  increases in any year, the commissioner must propose a change in 
495.15  the general education formula that will limit the disparity in 
495.16  general education revenue to no more than the disparity for the 
495.17  previous school year.  The commissioner must submit the proposal 
495.18  to the education committees of the legislature by January 15. 
495.19     Sec. 156.  Minnesota Statutes 1996, section 124C.498, as 
495.20  amended by Laws 1997, First Special Session chapter 4, article 
495.21  2, section 33, and article 7, section 7, is amended to read: 
495.22     124C.498 [METROPOLITAN MAGNET SCHOOL GRANTS.] 
495.23     Subdivision 1.  [POLICY AND PURPOSE.] A metropolitan magnet 
495.24  school grant program is established for the purpose of promoting 
495.25  integrated education for students in prekindergarten through 
495.26  grade 12, increase increasing mutual understanding among all 
495.27  students, and address addressing the inability of local school 
495.28  districts to provide required construction funds through local 
495.29  property taxes.  The program seeks to encourage school districts 
495.30  located in whole or in part within the seven-county metropolitan 
495.31  area to make available to school age children residing in the 
495.32  metropolitan area those educational programs, services, and 
495.33  facilities that are essential to meeting all children's needs 
495.34  and abilities.  The program anticipates using the credit of the 
495.35  state, to a limited degree, to provide grants to metropolitan 
495.36  area school districts to improve the educational opportunities 
496.1   and academic achievement of disadvantaged children and the 
496.2   facilities that are available to those children.  
496.3      Subd. 2.  [APPROVAL AUTHORITY; APPLICATION FORMS.] To the 
496.4   extent money is available, the commissioner of children, 
496.5   families, and learning may approve projects from applications 
496.6   submitted under this section.  The grant money must be used only 
496.7   to design, acquire, construct, remodel, improve, furnish, or 
496.8   equip the building or site of a magnet school facility according 
496.9   to contracts entered into within 24 months after the date on 
496.10  which a grant is awarded. 
496.11     Subd. 3.  [GRANT APPLICATION PROCESS.] (a) Any group of 
496.12  school districts that meets the criteria required under 
496.13  paragraph (b)(i) may apply for a magnet school grant in an 
496.14  amount not to exceed $15,000,000 for the approved costs or 
496.15  expansion of a magnet school facility. 
496.16     (b)(i) Any group of districts that submits an application 
496.17  for a grant shall submit a proposal to the commissioner for 
496.18  review and comment under section 121.15, and the commissioner 
496.19  shall prepare a review and comment on the proposed magnet school 
496.20  facility, regardless of the amount of the capital expenditure 
496.21  required to design, acquire, construct, remodel, improve, 
496.22  furnish, or equip the facility.  The commissioner must not 
496.23  approve an application for a magnet school grant for any 
496.24  facility unless the facility receives a favorable review and 
496.25  comment under section 121.15 and the participating districts: 
496.26     (1) establish a joint powers board under section 471.59 to 
496.27  represent all participating districts and govern the magnet 
496.28  school facility; 
496.29     (2) design the planned magnet school facility to meet the 
496.30  applicable requirements contained in Minnesota Rules, chapter 
496.31  3535; 
496.32     (3) submit a statement of need, including reasons why the 
496.33  magnet school will facilitate integration and improve learning; 
496.34     (4) prepare an educational plan that includes input from 
496.35  both community and professional staff; and 
496.36     (5) develop an education program that will improve learning 
497.1   opportunities for students attending the magnet school. 
497.2      (ii) The districts may develop a plan that permits social 
497.3   service, health, and other programs serving students and 
497.4   community residents to be located within the magnet school 
497.5   facility.  The commissioner shall consider this plan when 
497.6   preparing a review and comment on the proposed facility.  
497.7      (c) When two or more districts enter into an agreement 
497.8   establishing a joint powers board to govern the magnet school 
497.9   facility, all member districts shall have the same powers.  
497.10     (d) A joint powers board of participating school districts 
497.11  established under paragraphs (b) and (c) that intends to apply 
497.12  for a grant shall must adopt a resolution stating the costs of 
497.13  the proposed project, the purpose for which the debt is to be 
497.14  incurred, and an estimate of the dates when the contracts for 
497.15  the proposed project will be completed.  A copy of the 
497.16  resolution must accompany any application for a state grant 
497.17  under this section. 
497.18     (e)(i) The commissioner shall examine and consider all 
497.19  grant applications.  If the commissioner finds that any joint 
497.20  powers district is not a qualified grant applicant, the 
497.21  commissioner shall promptly notify that joint powers board.  The 
497.22  commissioner shall make awards to no more than two qualified 
497.23  applicants whose applications have been on file with the 
497.24  commissioner more than 30 days.  
497.25     (ii) A grant award is subject to verification by the joint 
497.26  powers board under paragraph (f).  A grant award must not be 
497.27  made until the participating districts determine the site of the 
497.28  magnet school facility.  If the total amount of the approved 
497.29  applications exceeds the amount of grant funding that is or can 
497.30  be made available, the commissioner shall allot the available 
497.31  amount equally between the approved applicant districts.  The 
497.32  commissioner shall promptly certify to each qualified joint 
497.33  powers board the amount, if any, of the grant awarded to it. 
497.34     (f) Each grant must be evidenced by a contract between the 
497.35  joint powers board and the state acting through the 
497.36  commissioner.  The contract obligates the state to pay to the 
498.1   joint powers board an amount computed according to paragraph 
498.2   (e)(ii) and a schedule, and terms and conditions acceptable to 
498.3   the commissioner of finance. 
498.4      Sec. 157.  Minnesota Statutes 1996, section 124C.60, 
498.5   subdivision 2, is amended to read: 
498.6      Subd. 2.  [PROCEDURES.] The state board shall establish 
498.7   procedures and deadlines for the grant application.  The state 
498.8   board shall must review each application and may require 
498.9   modifications consistent with sections 122.241 to 122.248. 
498.10     Sec. 158.  Minnesota Statutes 1996, section 124C.72, 
498.11  subdivision 2, is amended to read: 
498.12     Subd. 2.  [APPLICATION FORMS.] The commissioner of 
498.13  children, families, and learning shall prepare application forms 
498.14  and establish application dates.  
498.15     Sec. 159.  Minnesota Statutes 1996, section 124C.73, 
498.16  subdivision 3, is amended to read: 
498.17     Subd. 3.  [AWARD OF GRANTS.] (a) The commissioner shall 
498.18  examine and consider all applications for grants, and if a 
498.19  district is found not qualified, the commissioner shall promptly 
498.20  notify the district board.  The commissioner shall give first 
498.21  priority to school districts that have entered into the 
498.22  cooperation and combination process under sections 122.241 to 
498.23  122.248, or that have consolidated since January 1, 1987.  The 
498.24  commissioner shall further prioritize grants on the basis of the 
498.25  following:  the district's tax burden, the long-term feasibility 
498.26  of the project, the suitability of the project, and the 
498.27  district's need for the project.  If the total amount of the 
498.28  applications exceeds the amount that is or can be made 
498.29  available, the commissioner shall award grants according to the 
498.30  commissioner's judgment and discretion and based upon a ranking 
498.31  of the projects according to the factors listed in this 
498.32  paragraph.  The commissioner shall promptly certify to each 
498.33  district the amount, if any, of the grant awarded to it. 
498.34     (b) For fiscal year 1994, the commissioner may develop 
498.35  criteria in addition to the factors listed in paragraph (a), in 
498.36  order to award demonstration grants. 
499.1      Sec. 160.  [REPEALER.] 
499.2      (a) Minnesota Statutes 1996, sections 124.01; 124.19, 
499.3   subdivision 4; 124.38, subdivision 9; 124.472; 124.473; 124.474; 
499.4   124.476; 124.477; 124.478; 124.479; 124.71, subdivision 2; 
499.5   124A.02, subdivisions 15 and 16; 124A.029, subdivision 2; 
499.6   124A.03, subdivision 3b; 124A.22, subdivision 13f; 124A.225, 
499.7   subdivision 6; and 124A.31; Minnesota Statutes 1997 Supplement, 
499.8   section 124A.26, are repealed. 
499.9      (b) Minnesota Statutes 1996, section 124.2725, subdivisions 
499.10  1, 2, 3, 4, 5, 6, 7, 9, 10, 12, 13, 14, and 16; and Minnesota 
499.11  Statutes 1997 Supplement, section 124.2725, subdivision 11, are 
499.12  repealed. 
499.13     Sec. 161.  [INSTRUCTION TO REVISOR.] 
499.14     The revisor of statutes shall renumber each section of 
499.15  Minnesota Statutes listed in column A with the number listed in 
499.16  column B.  The revisor shall also make necessary cross-reference 
499.17  changes consistent with the renumbering. 
499.18        Column A                        Column B 
499.19       124A.02, subd. 1               124D.01, subd. 1
499.20                subd. 3a                       subd. 2
499.21                subd. 3b                       subd. 3
499.22                subd. 8                        subd. 4
499.23                subd. 10                       subd. 5
499.24                subd. 20                       subd. 6
499.25                subd. 21                       subd. 7
499.26                subd. 22                       subd. 8
499.27                subd. 23                       subd. 9
499.28                subd. 24                       subd. 10
499.29                subd. 25                       subd. 11
499.30       124.17, subd. 1                120D.02, subd. 1
499.31               subd. 1c                        subd. 2
499.32               subd. 1d                        subd. 3
499.33               subd. 1e                        subd. 4
499.34               subd. 1f                        subd. 5
499.35               subd. 2                         subd. 6
499.36               subd. 2a                        subd. 7
500.1                subd. 2b                        subd. 8 
500.2                subd. 2c                        subd. 9 
500.3                subd. 2e                        subd. 10 
500.4                subd. 2f                        subd. 11
500.5                subd. 3                         subd. 12 
500.6                subd. 4                         subd. 13 
500.7                subd. 6                         subd. 14 
500.8                subd. 7                         subd. 15 
500.9        124.175                        124D.03
500.10       124.19, subd. 3                124D.04, subd. 1
500.11               subd. 5                         subd. 2
500.12       124A.22, subd. 1               124D.05, subd. 1
500.13                subd. 2                        subd. 2
500.14                subd. 2a                       subd. 3
500.15                subd. 3                        subd. 4
500.16                subd. 3a                       subd. 5
500.17                subd. 4                        subd. 6
500.18                subd. 5                        subd. 7
500.19                subd. 6                        subd. 8
500.20                subd. 6a                       subd. 9
500.21                subd. 8                        subd. 10
500.22                subd. 8a                       subd. 11
500.23                subd. 8b                       subd. 12
500.24                subd. 9                        subd. 13
500.25                subd. 10                       subd. 14
500.26                subd. 11                       subd. 15
500.27                subd. 11a                      subd. 16
500.28                subd. 12                       subd. 17
500.29                subd. 13                       subd. 18
500.30                subd. 13a                      subd. 19
500.31                subd. 13b                      subd. 20
500.32                subd. 13c                      subd. 21
500.33                subd. 13d                      subd. 22
500.34                subd. 13e                      subd. 23
500.35       124A.04                        124D.06
500.36       124A.225                       124D.07
501.1        124A.23                        124D.08
501.2        124A.24                        124D.09
501.3        124A.28, subd. 1               124D.10, subd. 1
501.4                 subd. 1a                       subd. 2
501.5                 subd. 1b                       subd. 3
501.6                 subd. 2                        subd. 4
501.7                 subd. 3                        subd. 5
501.8        124A.029, subd. 1              124D.11, subd. 1
501.9                  subd. 3                       subd. 2
501.10                 subd. 4                       subd. 3
501.11       124A.03, subd. 1b              124D.12, subd. 1
501.12                subd. 1c                       subd. 2
501.13                subd. 1d                       subd. 3
501.14                subd. 1e                       subd. 4
501.15                subd. 1f                       subd. 5
501.16                subd. 1g                       subd. 6
501.17                subd. 1h                       subd. 7
501.18                subd. 1i                       subd. 8
501.19                subd. 2                        subd. 9
501.20                subd. 2a                       subd. 10
501.21                subd. 2b                       subd. 11
501.22                subd. 3c                       subd. 12
501.23       124A.0311                      124D.13
501.24       124A.032                       124D.14
501.25       124A.034, subd. 1              124D.15, subd. 1
501.26                 subd. 1a                      subd. 2
501.27                 subd. 2                       subd. 3
501.28       124A.035, subd. 2              124D.16, subd. 1
501.29                 subd. 3                       subd. 2
501.30                 subd. 4                       subd. 3
501.31                 subd. 5                       subd. 4
501.32       124A.30                        124D.17
501.33       123.76                         124D.18
501.34       123.77                         124D.19
501.35       123.78, subd. 1                124D.20, subd. 1
501.36               subd. 1a                        subd. 2
502.1                subd. 2                         subd. 3
502.2                subd. 3                         subd. 4
502.3        123.79                         124D.21
502.4        123.799                        124D.22
502.5        123.7991                       124D.23
502.6        123.7992                       124D.24
502.7        123.801                        124D.25
502.8        123.805                        124D.26
502.9        124.225, subd. 1               124D.27, subd. 1
502.10                subd. 7f                       subd. 2
502.11                subd. 8l                       subd. 3
502.12                subd. 8m                       subd. 4
502.13                subd. 9                        subd. 5
502.14                subd. 13                       subd. 6
502.15                subd. 14                       subd. 7
502.16                subd. 15                       subd. 8
502.17                subd. 16                       subd. 9
502.18                subd. 17                       subd. 10
502.19       124.2726                       124D.28
502.20       124.2727, subd. 6a             124D.29, subd. 1
502.21                 subd. 6b                      subd. 2
502.22                 subd. 6c                      subd. 3
502.23                 subd. 6d                      subd. 4
502.24                 subd. 9                       subd. 5
502.25       124.646, subd. 1               124D.30, subd. 1
502.26                subd. 3                        subd. 2
502.27                subd. 4                        subd. 3
502.28       124.6462                       124D.31
502.29       124.6469                       124D.32
502.30       124.647                        124D.33
502.31       124.6471                       124D.34
502.32       124.6472                       124D.35
502.33       124.648                        124D.36
502.34       124.6475                       124D.37
502.35       124.912, subd. 1               124D.38, subd. 1
502.36                subd. 2                        subd. 2
503.1                 subd. 3                        subd. 3
503.2                 subd. 6                        subd. 4
503.3                 subd. 7                        subd. 5
503.4                 subd. 9                        subd. 6
503.5        124.914                        124D.39
503.6        124.916                        124D.40
503.7        127.05                         124D.41
503.8        124.918                        124D.42
503.9        124.71                         124D.43
503.10       124.72                         124D.44
503.11       124.73                         124D.45
503.12       123.931                        124D.46
503.13       123.932, subd. 1a              124D.47, subd. 1
503.14                subd. 1b                       subd. 2
503.15                subd. 1c                       subd. 3
503.16                subd. 1d                       subd. 4
503.17                subd. 1e                       subd. 5
503.18                subd. 2a                       subd. 6
503.19                subd. 2b                       subd. 7
503.20                subd. 2c                       subd. 8
503.21                subd. 3                        subd. 9
503.22                subd. 3a                       subd. 10
503.23                subd. 5                        subd. 11
503.24                subd. 7                        subd. 12
503.25                subd. 9                        subd. 13
503.26                subd. 10                       subd. 14
503.27                subd. 11                       subd. 15
503.28       123.933                        124D.48
503.29       123.935                        124D.49
503.30       123.936                        124D.50
503.31       123.9361                       124D.51
503.32       123.9362                       124D.52
503.33       123.937                        124D.53
503.34       123.947                        124D.54
503.35       124.239, subd. 1               124D.55, subd. 1
503.36                subd. 2                        subd. 2
504.1                 subd. 3                        subd. 3
504.2                 subd. 4                        subd. 4
504.3                 subd. 5                        subd. 5
504.4                 subd. 5a                       subd. 6
504.5                 subd. 5b                       subd. 7
504.6                 subd. 6                        subd. 8
504.7        124.242                        124D.56
504.8        124.2445                       124D.57
504.9        124.2455                       124D.58
504.10       124.82                         124D.59
504.11       124.95, subd. 1                124D.60, subd. 1
504.12               subd. 2                         subd. 2
504.13               subd. 2a                        subd. 3
504.14               subd. 3                         subd. 4
504.15               subd. 4                         subd. 5
504.16               subd. 5                         subd. 6
504.17               subd. 6                         subd. 7
504.18       124.961                        124D.61
504.19       124.97                         124D.62
504.20       124.825                        124D.63
504.21       124.829                        124D.64
504.22       124.83                         124D.65
504.23       124.84                         124D.66
504.24       124.85, subd. 1                124D.67, subd. 1
504.25               subd. 2                         subd. 2
504.26               subd. 2a                        subd. 3
504.27               subd. 2b                        subd. 4
504.28               subd. 2c                        subd. 5
504.29               subd. 3                         subd. 6
504.30               subd. 4                         subd. 7
504.31               subd. 5                         subd. 8
504.32               subd. 6                         subd. 9
504.33               subd. 7                         subd. 10
504.34       124.91, subd. 1                124D.68, subd. 1
504.35               subd. 2                         subd. 2
504.36               subd. 4                         subd. 3
505.1                subd. 5                         subd. 4
505.2                subd. 6                         subd. 5
505.3                subd. 7                         subd. 6
505.4        124.74                         124D.69
505.5        124.75                         124D.70
505.6        124.755                        124D.71
505.7        124.76                         124D.72
505.8        124C.60                        124D.73
505.9        124.35                         124D.74
505.10       124.36                         124D.75
505.11       124.37                         124D.76
505.12       124.38, subd. 1                124D.77, subd. 1
505.13               subd. 2                         subd. 2
505.14               subd. 3                         subd. 3
505.15               subd. 4                         subd. 4
505.16               subd. 4a                        subd. 5
505.17               subd. 5                         subd. 6
505.18               subd. 6                         subd. 7
505.19               subd. 7                         subd. 8
505.20               subd. 8                         subd. 9
505.21               subd. 8a                        subd. 10
505.22               subd. 11                        subd. 11
505.23               subd. 12                        subd. 12
505.24               subd. 13                        subd. 13
505.25               subd. 14                        subd. 14
505.26       124.381                        124D.78 
505.27       124.39                         124D.79
505.28       124.40                         124D.80
505.29       124.41                         124D.81
505.30       124.42                         124D.82
505.31       124.431, subd. 1               124D.83, subd. 1
505.32                subd. 1a                       subd. 2
505.33                subd. 2                        subd. 3
505.34                subd. 3                        subd. 4
505.35                subd. 4                        subd. 5
505.36                subd. 5                        subd. 6
506.1                 subd. 6                        subd. 7
506.2                 subd. 7                        subd. 8
506.3                 subd. 8                        subd. 9
506.4                 subd. 9                        subd. 10
506.5                 subd. 10                       subd. 11
506.6                 subd. 11                       subd. 12
506.7                 subd. 12                       subd. 13
506.8                 subd. 13                       subd. 14
506.9                 subd. 14                       subd. 15
506.10       124.44                        124D.84 
506.11       124.45                        124D.85
506.12       124.46                        124D.86
506.13       124.491                       124D.87
506.14       124.492                       124D.88
506.15       124.493, subd. 1              124D.89, subd. 1
506.16                subd. 3                       subd. 2
506.17       124.494, subd. 1              124D.90, subd. 1
506.18                subd. 2                       subd. 2
506.19                subd. 2a                      subd. 3
506.20                subd. 3                       subd. 4
506.21                subd. 4                       subd. 5
506.22                subd. 4a                      subd. 6
506.23                subd. 5                       subd. 7
506.24                subd. 6                       subd. 8
506.25                subd. 7                       subd. 9
506.26       124.4945                      124D.91
506.27       124.4946                      124D.92
506.28       124.495                       124D.93
506.29       124C.498                      124D.94
506.30       124C.71                       124D.95
506.31       124C.72                       124D.96
506.32       124C.73                       124D.97
506.33                             ARTICLE 8 
506.34                            CHAPTER 125A 
506.35                              TEACHERS 
506.36     Section 1.  Minnesota Statutes 1996, section 123.35, 
507.1   subdivision 5, is amended to read:  
507.2      Subd. 5.  [HIRING TEACHERS; SUBSTITUTE TEACHERS.] The board 
507.3   shall must employ and contract with necessary qualified teachers 
507.4   and discharge the same for cause.  The board shall must not hire 
507.5   a substitute teacher except:  
507.6      (a) For a duration of time of less than one school year to 
507.7   replace a regular teacher who is absent; or 
507.8      (b) For a duration of time equal to or greater than one 
507.9   school year to replace a regular teacher on a leave of absence.  
507.10     If a substitute teacher is hired pursuant to clause (b), 
507.11  each full school year during which the teacher is employed by a 
507.12  district pursuant to that clause shall be deemed one year of the 
507.13  teacher's probationary period of employment pursuant to either 
507.14  section 125.12, subdivision 3, or 125.17, subdivision 2.  The 
507.15  teacher shall be eligible for continuing contract status 
507.16  pursuant to section 125.12, subdivision 4, or tenure status 
507.17  pursuant to section 125.17, subdivision 3, after completion of 
507.18  the applicable probationary period.  
507.19     Sec. 2.  Minnesota Statutes 1996, section 123.35, 
507.20  subdivision 13, is amended to read:  
507.21     Subd. 13.  [PRACTICE OR STUDENT TEACHERS.] The board may, 
507.22  by agreements with teacher preparing institutions, arrange for 
507.23  classroom experience in the district for practice or student 
507.24  teachers who have completed not less than two years of an 
507.25  approved teacher education program.  Such practice 
507.26  teachers shall must be provided with appropriate supervision by 
507.27  a fully qualified teacher under rules promulgated by the 
507.28  board and shall be.  Practice teachers are deemed employees of 
507.29  the school district in which they are rendering services for 
507.30  purposes of workers' compensation; liability insurance, if 
507.31  provided for other district employees in accordance with section 
507.32  123.41; and legal counsel in accordance with the provisions of 
507.33  section 127.03. 
507.34     Sec. 3.  Minnesota Statutes 1996, section 124.278, 
507.35  subdivision 3, is amended to read: 
507.36     Subd. 3.  [REIMBURSEMENT.] Reimbursement shall must equal 
508.1   one-half of the salary and fringe benefits, but not more than 
508.2   $20,000.  The district shall must receive reimbursement for each 
508.3   year a minority teacher, aide, or education assistant is 
508.4   employed.  The department of children, families, and learning 
508.5   shall must establish application or other procedures for 
508.6   districts to obtain the reimbursement.  The department shall 
508.7   must not prorate the reimbursement. 
508.8      Sec. 4.  Minnesota Statutes 1996, section 124A.29, is 
508.9   amended to read: 
508.10     124A.29 [RESERVED REVENUE FOR STAFF DEVELOPMENT.] 
508.11     Subdivision 1.  [STAFF DEVELOPMENT AND PARENTAL INVOLVEMENT 
508.12  REVENUE.] A district is encouraged to reserve general education 
508.13  revenue for in-service education for programs under section 
508.14  126.77, subdivision 2, for staff development plans, including 
508.15  plans for challenging instructional activities and experiences 
508.16  under section 126.70, and for curriculum development and 
508.17  programs, other in-service education, teachers' workshops, 
508.18  teacher conferences, the cost of substitute teachers staff 
508.19  development purposes, and other related costs for staff 
508.20  development efforts.  Districts may expend an additional amount 
508.21  of basic revenue for staff development based on their needs.  
508.22  The school board shall must initially allocate 50 percent of the 
508.23  revenue to each school site in the district on a per teacher 
508.24  basis, which shall must be retained by the school site until 
508.25  used.  The board may retain 25 percent to be used for district 
508.26  wide staff development efforts.  The remaining 25 percent of the 
508.27  revenue shall must be used to make grants to school sites that 
508.28  demonstrate exemplary use of allocated staff development 
508.29  revenue.  A grant may be used for any purpose authorized under 
508.30  section 126.70, 126.77, subdivision 2, or for the costs of 
508.31  curriculum development and programs, other in-service education, 
508.32  teachers' workshops, teacher conferences, substitute teachers 
508.33  for staff development purposes, and other staff development 
508.34  efforts, and determined by the site decision-making team.  The 
508.35  site decision-making team must demonstrate to the school board 
508.36  the extent to which staff at the site have met the outcomes of 
509.1   the program.  The board may withhold a portion of initial 
509.2   allocation of revenue if the staff development outcomes are not 
509.3   being met. 
509.4      Subd. 2.  [CAREER TEACHER STAFF DEVELOPMENT.] Of a 
509.5   district's basic revenue under section 124A.22, subdivision 2, 
509.6   an amount equal to $5 times the number of actual pupil units 
509.7   shall must be reserved by a district operating a career teacher 
509.8   program according to sections 125.701 to 125.705.  The revenue 
509.9   may be used only to provide staff development for the career 
509.10  teacher program. 
509.11     Sec. 5.  Minnesota Statutes 1996, section 125.03, 
509.12  subdivision 1, is amended to read: 
509.13     Subdivision 1.  [TEACHERS.] The term "teachers" for the 
509.14  purpose of licensure, means all persons employed in a public 
509.15  school or education district or by a SC service cooperative as 
509.16  members of the instructional, supervisory, and support staff 
509.17  including superintendents, principals, supervisors, secondary 
509.18  vocational and other classroom teachers, librarians, counselors, 
509.19  school psychologists, school nurses, school social workers, 
509.20  audio-visual directors and coordinators, recreation personnel, 
509.21  media generalists, media supervisors, and speech therapists.  
509.22     Sec. 6.  Minnesota Statutes 1996, section 125.03, 
509.23  subdivision 6, is amended to read: 
509.24     Subd. 6.  [ASSESSMENT PROFESSIONALS.] When a school board 
509.25  of a school district with 10,000 pupils or more in average daily 
509.26  membership employs a person to administer or interpret 
509.27  individual aptitude, intelligence or personality tests, the 
509.28  person must hold a graduate level degree related to 
509.29  administering and interpreting psychological assessments. 
509.30     Sec. 7.  Minnesota Statutes 1996, section 125.04, is 
509.31  amended to read: 
509.32     125.04 [QUALIFIED TEACHER DEFINED.] 
509.33     A qualified teacher is one holding a valid license, as 
509.34  hereinafter provided under this chapter, to perform the 
509.35  particular service for which employed in a public school. 
509.36     Sec. 8.  Minnesota Statutes 1996, section 125.05, 
510.1   subdivision 1, is amended to read: 
510.2      Subdivision 1.  [AUTHORITY TO LICENSE.] (a) The board of 
510.3   teaching shall must license teachers, as defined in section 
510.4   125.03, subdivision 1, except for supervisory personnel, as 
510.5   defined in section 125.03, subdivision 4. 
510.6      (b) The state board of education shall must license 
510.7   supervisory personnel as defined in section 125.03, subdivision 
510.8   4.  
510.9      (c) Licenses under the jurisdiction of the board of 
510.10  teaching and the state board of education must be issued through 
510.11  the licensing section of the department of children, families, 
510.12  and learning.  
510.13     Sec. 9.  Minnesota Statutes 1996, section 125.05, 
510.14  subdivision 1a, is amended to read: 
510.15     Subd. 1a.  [TEACHER AND SUPPORT PERSONNEL QUALIFICATIONS.] 
510.16  (a) The board of teaching shall must issue licenses under its 
510.17  jurisdiction to persons the board finds to be qualified and 
510.18  competent for their respective positions. 
510.19     (b) The board shall must require a person to successfully 
510.20  complete an examination of skills in reading, writing, and 
510.21  mathematics before being granted an initial teaching license to 
510.22  provide direct instruction to pupils in prekindergarten, 
510.23  elementary, secondary, or special education programs.  The board 
510.24  shall must require colleges and universities offering a board 
510.25  approved teacher preparation program to provide remedial 
510.26  assistance that includes a formal diagnostic component to 
510.27  persons enrolled in their institution who did not achieve a 
510.28  qualifying score on the skills examination, including those for 
510.29  whom English is a second language.  The colleges and 
510.30  universities must provide assistance in the specific academic 
510.31  areas of deficiency in which the person did not achieve a 
510.32  qualifying score.  School districts must provide similar, 
510.33  appropriate, and timely remedial assistance that includes a 
510.34  formal diagnostic component and mentoring to those persons 
510.35  employed by the district who completed their teacher education 
510.36  program outside the state of Minnesota, received a one-year 
511.1   license to teach in Minnesota and did not achieve a qualifying 
511.2   score on the skills examination, including those persons for 
511.3   whom English is a second language. 
511.4      (c) A person who has completed an approved teacher 
511.5   preparation program and obtained a one-year license to teach, 
511.6   but has not successfully completed the skills examination, may 
511.7   renew the one-year license for two additional one-year periods.  
511.8   Each renewal of the one-year license is contingent upon the 
511.9   licensee: 
511.10     (1) providing evidence of participating in an approved 
511.11  remedial assistance program provided by a school district or 
511.12  post-secondary institution that includes a formal diagnostic 
511.13  component in the specific areas in which the licensee did not 
511.14  obtain qualifying scores; and 
511.15     (2) attempting to successfully complete the skills 
511.16  examination during the period of each one-year license. 
511.17     (d) The board of teaching shall must grant continuing 
511.18  licenses only to those persons who have met board criteria for 
511.19  granting a continuing license, which includes successfully 
511.20  completing the skills examination in reading, writing, and 
511.21  mathematics. 
511.22     (e) All colleges and universities approved by the board of 
511.23  teaching to prepare persons for teacher licensure shall must 
511.24  include in their teacher preparation programs a common core of 
511.25  teaching knowledge and skills to be acquired by all persons 
511.26  recommended for teacher licensure.  This common core shall meet 
511.27  the standards developed by the interstate new teacher assessment 
511.28  and support consortium in its 1992 "model standards for 
511.29  beginning teacher licensing and development."  Amendments to 
511.30  standards adopted under this paragraph are covered by chapter 14.
511.31     Sec. 10.  Minnesota Statutes 1997 Supplement, section 
511.32  125.05, subdivision 1c, is amended to read: 
511.33     Subd. 1c.  [SUPERVISORY AND COACH QUALIFICATIONS; CODE OF 
511.34  ETHICS.] The state board of education shall must issue licenses 
511.35  under its jurisdiction to persons the state board finds to be 
511.36  qualified and competent for their respective positions under the 
512.1   rules it adopts.  The state board of education may develop, by 
512.2   rule, a code of ethics for supervisory personnel covering 
512.3   standards of professional practices, including areas of ethical 
512.4   conduct and professional performance and methods of enforcement. 
512.5      Sec. 11.  Minnesota Statutes 1996, section 125.05, 
512.6   subdivision 6, is amended to read: 
512.7      Subd. 6.  [LIMITED PROVISIONAL LICENSES.] The board of 
512.8   teaching may grant provisional licenses, which shall be valid 
512.9   for two years, in fields in which licenses were not issued 
512.10  previously or in fields in which a shortage of licensed teachers 
512.11  exists.  A shortage shall be is defined as a lack of or an 
512.12  inadequate supply of licensed personnel within a given licensure 
512.13  area in a school district that has notified the board of 
512.14  teaching of the shortage and has applied to the board of 
512.15  teaching for provisional licenses for that district's licensed 
512.16  staff.  
512.17     Sec. 12.  Minnesota Statutes 1996, section 125.05, 
512.18  subdivision 8, is amended to read: 
512.19     Subd. 8.  [BACKGROUND CHECKS.] (a) The board of teaching 
512.20  and the state board of education shall must request a criminal 
512.21  history background check from the superintendent of the bureau 
512.22  of criminal apprehension on all applicants for initial licenses 
512.23  under their jurisdiction.  An application for a license under 
512.24  this section must be accompanied by: 
512.25     (1) an executed criminal history consent form, including 
512.26  fingerprints; and 
512.27     (2) a money order or cashier's check payable to the bureau 
512.28  of criminal apprehension for the fee for conducting the criminal 
512.29  history background check. 
512.30     (b) The superintendent of the bureau of criminal 
512.31  apprehension shall perform the background check required under 
512.32  paragraph (a) by retrieving criminal history data maintained in 
512.33  the criminal justice information system computers and shall also 
512.34  conduct a search of the national criminal records repository, 
512.35  including the criminal justice data communications network.  The 
512.36  superintendent is authorized to exchange fingerprints with the 
513.1   Federal Bureau of Investigation for purposes of the criminal 
513.2   history check.  The superintendent shall recover the cost to the 
513.3   bureau of a background check through the fee charged to the 
513.4   applicant under paragraph (a). 
513.5      (c) The board of teaching or the state board of education 
513.6   may issue a license pending completion of a background check 
513.7   under this subdivision, but shall must notify the individual 
513.8   that the individual's license may be revoked based on the result 
513.9   of the background check.  
513.10     Sec. 13.  Minnesota Statutes 1996, section 125.06, is 
513.11  amended to read: 
513.12     125.06 [APPLICANTS TRAINED IN OTHER STATES.] 
513.13     When a license to teach is authorized to be issued to any 
513.14  holder of a diploma or a degree of a Minnesota state university, 
513.15  or of the University of Minnesota, or of a liberal arts 
513.16  university, or a technical training institution, such license 
513.17  may also, in the discretion of the board of teaching or the 
513.18  state board of education, whichever has jurisdiction, be issued 
513.19  to any holder of a diploma or a degree of a teacher training 
513.20  institution of equivalent rank and standing of any other state,. 
513.21  The diploma or degree must be granted by virtue of the 
513.22  completion of a course in teacher preparation essentially 
513.23  equivalent in content to that required by such Minnesota state 
513.24  university or the University of Minnesota or a liberal arts 
513.25  university in Minnesota or a technical training institution as 
513.26  preliminary to the granting of a diploma or a degree of the same 
513.27  rank and class. 
513.28     Sec. 14.  Minnesota Statutes 1996, section 125.09, is 
513.29  amended to read: 
513.30     125.09 [SUSPENSION OR REVOCATION OF LICENSES.] 
513.31     Subdivision 1.  [GROUNDS FOR REVOCATION, SUSPENSION, OR 
513.32  DENIAL.] The board of teaching or the state board of education, 
513.33  whichever has jurisdiction over a teacher's licensure, may, on 
513.34  the written complaint of the school board employing a teacher, a 
513.35  teacher organization, or any other interested person, which 
513.36  complaint shall specify the nature and character of the charges, 
514.1   refuse to issue, refuse to renew, suspend, or revoke a teacher's 
514.2   license to teach for any of the following causes: 
514.3      (1) Immoral character or conduct; 
514.4      (2) Failure, without justifiable cause, to teach for the 
514.5   term of the teacher's contract; 
514.6      (3) Gross inefficiency or willful neglect of duty; or 
514.7      (4) Failure to meet licensure requirements; or 
514.8      (5) Fraud or misrepresentation in obtaining a license. 
514.9      The written complaint must specify the nature and character 
514.10  of the charges.  For purposes of this subdivision, the board of 
514.11  teaching is delegated the authority to suspend or revoke 
514.12  coaching licenses under the jurisdiction of the state board of 
514.13  education.  
514.14     Subd. 4.  [MANDATORY REPORTING.] A school board shall must 
514.15  report to the board of teaching, the state board of education, 
514.16  or the board of trustees of the Minnesota state colleges and 
514.17  universities, whichever has jurisdiction over the teacher's 
514.18  license, when its teacher is discharged or resigns from 
514.19  employment after a charge is filed with the school board under 
514.20  section 125.17, subdivisions 4, clauses (1), (2), and (3), and 
514.21  5, or after charges are filed that are ground for discharge 
514.22  under section 125.12, subdivision 8, clauses (a), (b), (c), (d), 
514.23  and (e), or when a teacher is suspended or resigns while an 
514.24  investigation is pending under section 125.12, subdivision 8, 
514.25  clauses (a), (b), (c), (d), and (e); 125.17, subdivisions 4, 
514.26  clauses (1), (2), and (3), and 5; or 626.556.  The report must 
514.27  be made to the appropriate licensing board within ten days after 
514.28  the discharge, suspension, or resignation has occurred.  
514.29  The licensing board to which the report is made shall must 
514.30  investigate the report for violation of subdivision 1 and the 
514.31  reporting school board shall must cooperate in the 
514.32  investigation.  Notwithstanding any provision in chapter 13 or 
514.33  any law to the contrary, upon written request from the licensing 
514.34  board having jurisdiction over the teacher's license, a school 
514.35  board or school superintendent shall provide the licensing board 
514.36  with information about the teacher from the school district's 
515.1   files, any termination or disciplinary proceeding, any 
515.2   settlement or compromise, or any investigative file.  Upon 
515.3   written request from the appropriate licensing board, a school 
515.4   board or school superintendent may, at the discretion of 
515.5   the school board or school superintendent, solicit the written 
515.6   consent of a student and the student's parent to provide the 
515.7   licensing board with information that may aid the licensing 
515.8   board in its investigation and license proceedings.  The 
515.9   licensing board's request need not identify a student or parent 
515.10  by name.  The consent of the student and the student's parent 
515.11  must meet the requirements of chapter 13 and Code of Federal 
515.12  Regulations, title 34, section 99.30.  The licensing board may 
515.13  provide a consent form to the school district.  Any data 
515.14  transmitted to any board under this section shall be is private 
515.15  data under section 13.02, subdivision 12, notwithstanding any 
515.16  other classification of the data when it was in the possession 
515.17  of any other agency. 
515.18     The licensing board to which a report is made shall must 
515.19  transmit to the attorney general's office any record or data it 
515.20  receives under this subdivision for the sole purpose of having 
515.21  the attorney general's office assist that board in its 
515.22  investigation.  When the attorney general's office has informed 
515.23  an employee of the appropriate licensing board in writing that 
515.24  grounds exist to suspend or revoke a teacher's license to teach, 
515.25  that licensing board must consider suspending or revoking or 
515.26  decline to suspend or revoke the teacher's license within 45 
515.27  days of receiving a stipulation executed by the teacher under 
515.28  investigation or a recommendation from an administrative law 
515.29  judge that disciplinary action be taken.  
515.30     Subd. 5.  [IMMUNITY FROM LIABILITY.] A school board, its 
515.31  members in their official capacity, and employees of the school 
515.32  district run by the board are immune from civil or criminal 
515.33  liability for reporting or cooperating as required under 
515.34  subdivision 4, if their actions required under subdivision 4 are 
515.35  done in good faith and with due care.  
515.36     Sec. 15.  Minnesota Statutes 1996, section 125.11, is 
516.1   amended to read: 
516.2      125.11 [RECORDING OF LICENSES; DISTRICT SUPERINTENDENT.] 
516.3      No person shall be accounted a qualified teacher until such 
516.4   the person has filed for record with the district superintendent 
516.5   where such the person intends to teach a license, or certified 
516.6   copy thereof of a license, authorizing such the person to teach 
516.7   school in such the district school system. 
516.8      Sec. 16.  Minnesota Statutes 1996, section 125.12, 
516.9   subdivision 1a, is amended to read: 
516.10     Subd. 1a.  [NONPROVISIONAL LICENSE DEFINED.] For purposes 
516.11  of this section, "nonprovisional license" shall mean means an 
516.12  entrance, continuing, or life license.  
516.13     Sec. 17.  Minnesota Statutes 1996, section 125.12, 
516.14  subdivision 2, is amended to read: 
516.15     Subd. 2.  [HIRING, DISMISSING.] School boards shall must 
516.16  hire or dismiss teachers at duly called meetings.  Where a 
516.17  husband and wife, brother and sister, or two brothers or 
516.18  sisters, constitute a quorum, no contract employing a teacher 
516.19  shall be made or authorized except upon the unanimous vote of 
516.20  the full board.  No A teacher related by blood or marriage, 
516.21  within the fourth degree, computed by the civil law, to a board 
516.22  member shall not be employed except by a unanimous vote of the 
516.23  full board.  The initial employment of the teacher in the 
516.24  district shall must be by written contract, signed by the 
516.25  teacher and by the chair and clerk.  All subsequent employment 
516.26  of the teacher in the district shall must be by written 
516.27  contract, signed by the teacher and by the chair and clerk, 
516.28  except where there is a master agreement covering the employment 
516.29  of the teacher.  Contracts for teaching or supervision of 
516.30  teaching can be made only with qualified teachers.  No A teacher 
516.31  shall not be required to reside within the employing school 
516.32  district as a condition to teaching employment or continued 
516.33  teaching employment.  
516.34     Sec. 18.  Minnesota Statutes 1996, section 125.12, 
516.35  subdivision 2a, is amended to read: 
516.36     Subd. 2a.  [EMPLOYMENT IN SUPERVISORY POSITIONS.] 
517.1   Notwithstanding other law, a teacher, as defined in section 
517.2   179A.03, does not have a right to employment in a district as an 
517.3   assistant superintendent, as a principal defined in section 
517.4   179A.03, as a confidential or supervisory employee defined in 
517.5   section 179A.03, or in a position that is a promotion from the 
517.6   position currently held, based on seniority, seniority date, or 
517.7   order of employment by the district; provided that.  This 
517.8   provision shall not alter the reinstatement rights of an 
517.9   individual who is placed on leave from an assistant 
517.10  superintendent, principal or assistant principal, or supervisory 
517.11  or confidential employee position pursuant to this chapter.  
517.12     Sec. 19.  Minnesota Statutes 1996, section 125.12, 
517.13  subdivision 3, is amended to read: 
517.14     Subd. 3.  [PROBATIONARY PERIOD.] The first three 
517.15  consecutive years of a teacher's first teaching experience in 
517.16  Minnesota in a single school district shall be is deemed to be a 
517.17  probationary period of employment, and after completion thereof, 
517.18  the probationary period in each school district in which the 
517.19  teacher is thereafter employed shall be one year.  The school 
517.20  board shall must adopt a plan for written evaluation of teachers 
517.21  during the probationary period.  Evaluation shall must occur at 
517.22  least three times each year for a teacher performing services on 
517.23  120 or more school days, at least two times each year for a 
517.24  teacher performing services on 60 to 119 school days, and at 
517.25  least one time each year for a teacher performing services on 
517.26  fewer than 60 school days.  Days devoted to parent-teacher 
517.27  conferences, teachers' workshops, and other staff development 
517.28  opportunities and days on which a teacher is absent from 
517.29  school shall must not be included in determining the number of 
517.30  school days on which a teacher performs services.  During the 
517.31  probationary period any annual contract with any teacher may or 
517.32  may not be renewed as the school board shall see fit; 
517.33  provided,.  However, that the school board shall must give 
517.34  any such teacher whose contract it declines to renew for the 
517.35  following school year written notice to that effect before June 
517.36  1.  If the teacher requests reasons for any nonrenewal of a 
518.1   teaching contract, the school board shall must give the teacher 
518.2   its reason in writing, including a statement that appropriate 
518.3   supervision was furnished describing the nature and the extent 
518.4   of such supervision furnished the teacher during the employment 
518.5   by the board, within ten days after receiving such request.  The 
518.6   school board may, after a hearing held upon due notice, 
518.7   discharge a teacher during the probationary period for cause, 
518.8   effective immediately, under section 123.35, subdivision 5.  
518.9      Sec. 20.  Minnesota Statutes 1996, section 125.12, 
518.10  subdivision 3b, is amended to read: 
518.11     Subd. 3b.  [PEER REVIEW FOR PROBATIONARY TEACHERS.] A 
518.12  school board and an exclusive representative of the teachers in 
518.13  the district shall must develop a probationary teacher peer 
518.14  review process through joint agreement.  
518.15     Sec. 21.  Minnesota Statutes 1996, section 125.12, 
518.16  subdivision 4, is amended to read: 
518.17     Subd. 4.  [TERMINATION OF CONTRACT AFTER PROBATIONARY 
518.18  PERIOD.] A teacher who has completed a probationary period in 
518.19  any school district, and who has not been discharged or advised 
518.20  of a refusal to renew the teacher's contract pursuant to 
518.21  subdivision 3, shall have a continuing contract with such 
518.22  district.  Thereafter, the teacher's contract shall must remain 
518.23  in full force and effect, except as modified by mutual consent 
518.24  of the board and the teacher, until terminated by a majority 
518.25  roll call vote of the full membership of the board prior to 
518.26  April 1 upon one of the grounds specified in subdivision 6 or 
518.27  prior to June 1 upon one of the grounds specified in subdivision 
518.28  6a or 6b, or until the teacher is discharged pursuant to 
518.29  subdivision 8, or by the written resignation of the teacher 
518.30  submitted prior to April 1; provided, however, that.  If an 
518.31  agreement as to the terms and conditions of employment for the 
518.32  succeeding school year has not been adopted pursuant to the 
518.33  provisions of sections 179A.01 to 179A.25 prior to March 1, the 
518.34  teacher's right of resignation shall be is extended to the 30th 
518.35  calendar day following the adoption of said contract in 
518.36  compliance with section 179A.20, subdivision 5.  Such written 
519.1   resignation by the teacher shall be is effective as of June 30 
519.2   if submitted prior to that date and the teachers' right of 
519.3   resignation for the school year then beginning shall cease on 
519.4   July 15.  Before a teacher's contract is terminated by the 
519.5   board, the board shall must notify the teacher in writing and 
519.6   state its ground for the proposed termination in reasonable 
519.7   detail together with a statement that the teacher may make a 
519.8   written request for a hearing before the board within 14 days 
519.9   after receipt of such notification.  If the grounds are those 
519.10  specified in subdivision 6 or 8, the notice must also state a 
519.11  teacher may request arbitration under subdivision 9a.  Within 14 
519.12  days after receipt of this notification the teacher may make a 
519.13  written request for a hearing before the board or an arbitrator 
519.14  and it shall be granted upon reasonable notice to the teacher of 
519.15  the date set for hearing, before final action is taken.  If no 
519.16  hearing is requested within such period, it shall be deemed 
519.17  acquiescence by the teacher to the board's action.  Such 
519.18  termination shall take effect at the close of the school year in 
519.19  which the contract is terminated in the manner aforesaid.  Such 
519.20  contract may be terminated at any time by mutual consent of the 
519.21  board and the teacher and this section shall does not affect the 
519.22  powers of a board to suspend, discharge, or demote a teacher 
519.23  under and pursuant to other provisions of law.  
519.24     Sec. 22.  Minnesota Statutes 1996, section 125.12, 
519.25  subdivision 6, is amended to read: 
519.26     Subd. 6.  [GROUNDS FOR TERMINATION.] A continuing contract 
519.27  may be terminated, effective at the close of the school year, 
519.28  upon any of the following grounds: 
519.29     (a) Inefficiency; 
519.30     (b) Neglect of duty, or persistent violation of school 
519.31  laws, rules, regulations, or directives; 
519.32     (c) Conduct unbecoming a teacher which materially impairs 
519.33  the teacher's educational effectiveness; 
519.34     (d) Other good and sufficient grounds rendering the teacher 
519.35  unfit to perform the teacher's duties. 
519.36     A contract shall must not be terminated upon one of the 
520.1   grounds specified in clause (a), (b), (c), or (d), unless the 
520.2   teacher shall have failed fails to correct the deficiency after 
520.3   being given written notice of the specific items of complaint 
520.4   and reasonable time within which to remedy them.  
520.5      Sec. 23.  Minnesota Statutes 1996, section 125.12, 
520.6   subdivision 6a, is amended to read: 
520.7      Subd. 6a.  [NEGOTIATED UNREQUESTED LEAVE OF ABSENCE.] The 
520.8   school board and the exclusive bargaining representative of the 
520.9   teachers may negotiate a plan providing for unrequested leave of 
520.10  absence without pay or fringe benefits for as many teachers as 
520.11  may be necessary because of discontinuance of position, lack of 
520.12  pupils, financial limitations, or merger of classes caused by 
520.13  consolidation of districts.  Failing to successfully negotiate 
520.14  such a plan, the provisions of subdivision 6b shall apply.  The 
520.15  negotiated plan shall must not include provisions which would 
520.16  result in the exercise of seniority by a teacher holding a 
520.17  provisional license, other than a vocational education license, 
520.18  contrary to the provisions of subdivision 6b, clause (c), or the 
520.19  reinstatement of a teacher holding a provisional license, other 
520.20  than a vocational education license, contrary to the provisions 
520.21  of subdivision 6b, clause (e).  The provisions of section 
520.22  179A.16 shall do not apply for the purposes of this subdivision. 
520.23     Sec. 24.  Minnesota Statutes 1996, section 125.12, 
520.24  subdivision 6b, is amended to read: 
520.25     Subd. 6b.  [UNREQUESTED LEAVE OF ABSENCE.] The school board 
520.26  may place on unrequested leave of absence, without pay or fringe 
520.27  benefits, as many teachers as may be necessary because of 
520.28  discontinuance of position, lack of pupils, financial 
520.29  limitations, or merger of classes caused by consolidation of 
520.30  districts.  The unrequested leave shall be is effective at the 
520.31  close of the school year.  In placing teachers on unrequested 
520.32  leave, the board shall be is governed by the following 
520.33  provisions: 
520.34     (a) The board may place probationary teachers on 
520.35  unrequested leave first in the inverse order of their 
520.36  employment.  No A teacher who has acquired continuing contract 
521.1   rights shall must not be placed on unrequested leave of absence 
521.2   while probationary teachers are retained in positions for which 
521.3   the teacher who has acquired continuing contract rights is 
521.4   licensed; 
521.5      (b) Teachers who have acquired continuing contract rights 
521.6   shall be placed on unrequested leave of absence in fields in 
521.7   which they are licensed in the inverse order in which they were 
521.8   employed by the school district.  In the case of equal 
521.9   seniority, the order in which teachers who have acquired 
521.10  continuing contract rights shall be placed on unrequested leave 
521.11  of absence in fields in which they are licensed shall be is 
521.12  negotiable; 
521.13     (c) Notwithstanding the provisions of clause (b), no a 
521.14  teacher shall be is not entitled to exercise any seniority when 
521.15  that exercise results in that teacher being retained by the 
521.16  district in a field for which the teacher holds only a 
521.17  provisional license, as defined by the board of teaching, unless 
521.18  that exercise of seniority results in the placement on 
521.19  unrequested leave of absence of another teacher who also holds a 
521.20  provisional license in the same field.  The provisions of this 
521.21  clause shall do not apply to vocational education licenses; 
521.22     (d) Notwithstanding clauses (a), (b) and (c), if the 
521.23  placing of a probationary teacher on unrequested leave before a 
521.24  teacher who has acquired continuing rights, the placing of a 
521.25  teacher who has acquired continuing contract rights on 
521.26  unrequested leave before another teacher who has acquired 
521.27  continuing contract rights but who has greater seniority, or the 
521.28  restriction imposed by the provisions of clause (c) would place 
521.29  the district in violation of its affirmative action program, the 
521.30  district may retain the probationary teacher, the teacher with 
521.31  less seniority, or the provisionally licensed teacher; 
521.32     (e) Teachers placed on unrequested leave of absence shall 
521.33  must be reinstated to the positions from which they have been 
521.34  given leaves of absence or, if not available, to other available 
521.35  positions in the school district in fields in which they are 
521.36  licensed.  Reinstatement shall must be in the inverse order of 
522.1   placement on leave of absence.  No A teacher shall must not be 
522.2   reinstated to a position in a field in which the teacher holds 
522.3   only a provisional license, other than a vocational education 
522.4   license, while another teacher who holds a nonprovisional 
522.5   license in the same field remains on unrequested leave.  The 
522.6   order of reinstatement of teachers who have equal seniority and 
522.7   who are placed on unrequested leave in the same school 
522.8   year shall be is negotiable; 
522.9      (f) No Appointment of a new teacher shall must not be made 
522.10  while there is available, on unrequested leave, a teacher who is 
522.11  properly licensed to fill such vacancy, unless the teacher fails 
522.12  to advise the school board within 30 days of the date of 
522.13  notification that a position is available to that teacher who 
522.14  may return to employment and assume the duties of the position 
522.15  to which appointed on a future date determined by the board; 
522.16     (g) A teacher placed on unrequested leave of absence may 
522.17  engage in teaching or any other occupation during the period of 
522.18  this leave; 
522.19     (h) The unrequested leave of absence shall must not impair 
522.20  the continuing contract rights of a teacher or result in a loss 
522.21  of credit for previous years of service; 
522.22     (i) The unrequested leave of absence of a teacher who is 
522.23  placed on unrequested leave of absence and who is not reinstated 
522.24  shall continue for a period of five years, after which the right 
522.25  to reinstatement shall terminate; provided.  The teacher's right 
522.26  to reinstatement shall also terminate if the teacher fails to 
522.27  file with the board by April 1 of any year a written statement 
522.28  requesting reinstatement; 
522.29     (j) The same provisions applicable to terminations of 
522.30  probationary or continuing contracts in subdivisions 3 and 4 
522.31  shall must apply to placement on unrequested leave of absence; 
522.32     (k) Nothing in this subdivision shall be construed to 
522.33  impair the rights of teachers placed on unrequested leave of 
522.34  absence to receive reemployment insurance if otherwise eligible. 
522.35     Sec. 25.  Minnesota Statutes 1996, section 125.12, 
522.36  subdivision 7, is amended to read: 
523.1      Subd. 7.  [SUSPENSION AND LEAVE OF ABSENCE FOR HEALTH 
523.2   REASONS.] Affliction with active tuberculosis or other 
523.3   communicable disease, mental illness, drug or alcoholic 
523.4   addiction, or other serious incapacity shall be grounds for 
523.5   temporary suspension and leave of absence while the teacher is 
523.6   suffering from such disability.  Unless the teacher consents, 
523.7   such action shall must be taken only upon evidence that 
523.8   suspension is required from a physician who has examined the 
523.9   teacher.  The physician shall must be competent in the field 
523.10  involved and shall must be selected by the teacher from a list 
523.11  of three provided by the school board, and the examination shall 
523.12  must be at the expense of the school district.  A copy of the 
523.13  report of the physician shall be furnished the teacher upon 
523.14  request.  If the teacher fails to submit to the examination 
523.15  within the prescribed time, the board may discharge the teacher, 
523.16  effective immediately.  In the event of mental illness, if the 
523.17  teacher submits to such an examination and the examining 
523.18  physician's or psychiatrist's statement is unacceptable to the 
523.19  teacher or the board, a panel of three physicians or 
523.20  psychiatrists shall must be selected to examine the teacher at 
523.21  the board's expense.  The board and the teacher shall each 
523.22  select a member of this panel, and these two members shall 
523.23  select a third member.  The panel shall must examine the teacher 
523.24  and submit a statement of its findings and conclusions to the 
523.25  board.  Upon receipt and consideration of the statement from the 
523.26  panel the board may suspend the teacher.  The board shall must 
523.27  notify the teacher in writing of such suspension and the reasons 
523.28  therefor.  During the leave of absence, the district must pay 
523.29  the teacher shall be paid sick leave benefits by the district up 
523.30  to the amount of unused accumulated sick leave, and after it is 
523.31  exhausted, the district may in its discretion pay additional 
523.32  benefits.  The teacher shall must be reinstated to the teacher's 
523.33  position upon evidence from such a physician of sufficient 
523.34  recovery to be capable of resuming performance of duties in a 
523.35  proper manner.  In the event that the teacher does not qualify 
523.36  for reinstatement within 12 months after the date of suspension, 
524.1   the continuing disability may be a ground for discharge under 
524.2   subdivision 8.  
524.3      Sec. 26.  Minnesota Statutes 1996, section 125.12, 
524.4   subdivision 8, is amended to read: 
524.5      Subd. 8.  [IMMEDIATE DISCHARGE.] A school board may 
524.6   discharge a continuing-contract teacher, effective immediately, 
524.7   upon any of the following grounds: 
524.8      (a) Immoral conduct, insubordination, or conviction of a 
524.9   felony; 
524.10     (b) Conduct unbecoming a teacher which requires the 
524.11  immediate removal of the teacher from classroom or other duties; 
524.12     (c) Failure without justifiable cause to teach without 
524.13  first securing the written release of the school board; 
524.14     (d) Gross inefficiency which the teacher has failed to 
524.15  correct after reasonable written notice; 
524.16     (e) Willful neglect of duty; or 
524.17     (f) Continuing physical or mental disability subsequent to 
524.18  a 12 months leave of absence and inability to qualify for 
524.19  reinstatement in accordance with subdivision 7. 
524.20     For purposes of this subdivision, conduct unbecoming a 
524.21  teacher includes an unfair discriminatory practice described in 
524.22  section 363.03, subdivision 5. 
524.23     Prior to discharging a teacher the board shall must notify 
524.24  the teacher in writing and state its ground for the proposed 
524.25  discharge in reasonable detail.  Within ten days after receipt 
524.26  of this notification the teacher may make a written request for 
524.27  a hearing before the board and it shall be granted before final 
524.28  action is taken.  The board may, however, suspend a teacher with 
524.29  pay pending the conclusion of such hearing and determination of 
524.30  the issues raised therein in the hearing after charges have been 
524.31  filed which constitute ground for discharge.  
524.32     Sec. 27.  Minnesota Statutes 1996, section 125.12, 
524.33  subdivision 9, is amended to read: 
524.34     Subd. 9.  [HEARING PROCEDURES.] Any hearing held pursuant 
524.35  to this section shall must be held upon appropriate and timely 
524.36  notice to the teacher, and any hearing held pursuant to 
525.1   subdivision 6 or 8 shall must be private or public at the 
525.2   discretion of the teacher.  A hearing held pursuant to 
525.3   subdivision 6b shall must be public and may be consolidated by 
525.4   the school board.  At the hearing, the board and the teacher may 
525.5   each be represented by counsel at each party's own expense, and 
525.6   such counsel may examine and cross-examine witnesses and present 
525.7   arguments.  The board shall must first present evidence to 
525.8   sustain the grounds for termination or discharge and then 
525.9   receive evidence presented by the teacher.  Each party may then 
525.10  present rebuttal evidence.  Dismissal of the teacher shall must 
525.11  be based upon substantial and competent evidence in the record.  
525.12  All witnesses shall be sworn upon oath administered by the 
525.13  presiding officer of the board.  The clerk of the board shall 
525.14  issue subpoenas for witnesses or the production of records 
525.15  pertinent to the grounds upon the request of either the board or 
525.16  the teacher.  The board shall must employ a court reporter to 
525.17  record the proceedings at the hearing, and either party may 
525.18  obtain a transcript thereof of the hearing at its own expense.  
525.19     Sec. 28.  Minnesota Statutes 1996, section 125.12, 
525.20  subdivision 9a, is amended to read: 
525.21     Subd. 9a.  [HEARING AND DETERMINATION BY ARBITRATOR.] A 
525.22  teacher whose termination is proposed under subdivision 4 on 
525.23  grounds specified in subdivision 6, or whose discharge is 
525.24  proposed under subdivision 8, may elect a hearing before an 
525.25  arbitrator instead of the school board.  The hearing is governed 
525.26  by this subdivision.  
525.27     (a) The teacher must make a written request for a hearing 
525.28  before an arbitrator within 14 days after receiving notification 
525.29  of proposed termination on grounds specified in subdivision 6 or 
525.30  within ten days of receiving notification of proposed discharge 
525.31  under subdivision 8.  If a request for a hearing does not 
525.32  specify that the hearing be before an arbitrator, it shall be is 
525.33  considered to be a request for a hearing before the school board.
525.34     (b) If the teacher and the school board are unable to 
525.35  mutually agree on an arbitrator, the school board shall must 
525.36  request from the bureau of mediation services a list of five 
526.1   persons to serve as an arbitrator.  If the matter to be heard is 
526.2   a proposed termination on grounds specified in subdivision 6, 
526.3   arbitrators on the list must be available to hear the matter and 
526.4   make a decision within a time frame that will allow the school 
526.5   board to comply with all statutory timelines relating to 
526.6   termination.  If the teacher and the school board are unable to 
526.7   mutually agree on an arbitrator from the list provided, the 
526.8   parties shall alternately strike names from the list until the 
526.9   name of one arbitrator remains.  The person remaining after the 
526.10  striking procedure shall must be the arbitrator.  If the parties 
526.11  are unable to agree on who shall strike the first name, the 
526.12  question must be decided by a flip of a coin.  The teacher and 
526.13  the school board shall must share equally the costs and fees of 
526.14  the arbitrator. 
526.15     (c) The arbitrator shall determine, by a preponderance of 
526.16  the evidence, whether the grounds for termination or discharge 
526.17  specified in subdivision 6 or 8 exist to support the proposed 
526.18  termination or discharge.  A lesser penalty than termination or 
526.19  discharge may be imposed by the arbitrator only to the extent 
526.20  that either party proposes such lesser penalty in the 
526.21  proceeding.  In making the determination, the arbitration 
526.22  proceeding is governed by sections 572.11 to 572.17 and by the 
526.23  collective bargaining agreement applicable to the teacher.  
526.24     (d) An arbitration hearing conducted under this subdivision 
526.25  is a meeting for preliminary consideration of allegations or 
526.26  charges within the meaning of section 471.705, subdivision 1d, 
526.27  clause (c), and shall must be closed, unless the teacher 
526.28  requests it to be open. 
526.29     (e) The arbitrator's award is final and binding on the 
526.30  parties, subject to sections 572.18 to 572.26.  
526.31     Sec. 29.  Minnesota Statutes 1996, section 125.12, 
526.32  subdivision 10, is amended to read: 
526.33     Subd. 10.  [DECISION.] After the hearing, the board 
526.34  shall must issue a written decision and order.  If the board 
526.35  orders termination of a continuing contract or discharge of a 
526.36  teacher, its decision shall must include findings of fact based 
527.1   upon competent evidence in the record and shall must be served 
527.2   on the teacher, accompanied by an order of termination or 
527.3   discharge, prior to April 1 in the case of a contract 
527.4   termination for grounds specified in subdivision 6, prior to 
527.5   June 1 for grounds specified in subdivision 6a or 6b, or within 
527.6   ten days after conclusion of the hearing in the case of a 
527.7   discharge.  If the decision of the board or of a reviewing court 
527.8   is favorable to the teacher, the proceedings shall must be 
527.9   dismissed and the decision entered in the board minutes, and all 
527.10  references to such proceedings shall must be excluded from the 
527.11  teacher's record file.  
527.12     Sec. 30.  Minnesota Statutes 1996, section 125.12, 
527.13  subdivision 11, is amended to read: 
527.14     Subd. 11.  [JUDICIAL REVIEW.] The pendency of judicial 
527.15  proceedings shall must not be ground for postponement of the 
527.16  effective date of the school board's order, but if judicial 
527.17  review eventuates in reinstatement of the teacher, the board 
527.18  shall must pay the teacher all compensation withheld as a result 
527.19  of the termination or dismissal order.  
527.20     Sec. 31.  Minnesota Statutes 1996, section 125.12, 
527.21  subdivision 13, is amended to read: 
527.22     Subd. 13.  [EXCEPTION.] This section shall does not apply 
527.23  to any district in a city of the first class.  
527.24     Sec. 32.  Minnesota Statutes 1997 Supplement, section 
527.25  125.12, subdivision 14, is amended to read: 
527.26     Subd. 14.  [RECORDS RELATING TO INDIVIDUAL TEACHER; ACCESS; 
527.27  EXPUNGEMENT.] All evaluations and files generated within a 
527.28  school district relating to each individual teacher shall must 
527.29  be available to each individual teacher upon written request.  
527.30  Effective January 1, 1976, all evaluations and files, wherever 
527.31  generated, relating to each individual teacher shall must be 
527.32  available to each individual teacher upon written request.  The 
527.33  teacher shall have the right to reproduce any of the contents of 
527.34  the files at the teacher's expense and to submit for inclusion 
527.35  in the file written information in response to any material 
527.36  contained therein. 
528.1      A school district may destroy the files as provided by law 
528.2   and shall must expunge from the teacher's file any material 
528.3   found to be false or inaccurate through the grievance procedure 
528.4   required pursuant to section 179A.20, subdivision 4; provided,.  
528.5   The grievance procedure promulgated by the director of the 
528.6   bureau of mediation services, pursuant to section 179A.04, 
528.7   subdivision 3, clause (h), shall apply applies to those 
528.8   principals and supervisory employees not included in an 
528.9   appropriate unit as defined in section 179A.03.  Expungement 
528.10  proceedings shall must be commenced within the time period 
528.11  provided in the collective bargaining agreement for the 
528.12  commencement of a grievance.  If no time period is provided in 
528.13  the bargaining agreement, the expungement proceedings shall must 
528.14  commence within 15 days after the teacher has knowledge of the 
528.15  inclusion in the teacher's file of the material the teacher 
528.16  seeks to have expunged.  
528.17     Sec. 33.  Minnesota Statutes 1996, section 125.121, 
528.18  subdivision 1, is amended to read: 
528.19     Subdivision 1.  [TERMINATION; HEARING.] Before a district 
528.20  terminates the coaching duties of an employee who is required to 
528.21  hold a license as an athletic coach from the state board of 
528.22  education, the district shall must notify the employee in 
528.23  writing and state its reason for the proposed termination.  
528.24  Within 14 days of receiving this notification, the employee may 
528.25  request in writing a hearing on the termination before the 
528.26  board.  If a hearing is requested, the board shall must hold a 
528.27  hearing within 25 days according to the hearing procedures 
528.28  specified in section 125.12, subdivision 9, and the 
528.29  termination shall not be is final except upon the order of the 
528.30  board after the hearing. 
528.31     Sec. 34.  Minnesota Statutes 1996, section 125.121, 
528.32  subdivision 2, is amended to read: 
528.33     Subd. 2.  [FINAL DECISION.] Within ten days after the 
528.34  hearing, the board shall must issue a written decision regarding 
528.35  the termination. If the board decides to terminate the 
528.36  employee's coaching duties, the decision shall must state the 
529.1   reason on which it is based and include findings of fact based 
529.2   upon competent evidence in the record.  The board may terminate 
529.3   the employee's duties or not, as it sees fit, for any reason 
529.4   which is found to be true based on substantial and competent 
529.5   evidence in the record. 
529.6      Sec. 35.  Minnesota Statutes 1996, section 125.135, is 
529.7   amended to read: 
529.8      125.135 [STAFF EXCHANGE PROGRAM.] 
529.9      Subdivision 1.  [ESTABLISHMENT.] A staff exchange program 
529.10  is established to allow local school districts to arrange 
529.11  temporary and voluntary exchanges among members of their 
529.12  kindergarten through grade 12 instructional and administrative 
529.13  staffs.  The purpose of the program is to provide participants 
529.14  with an understanding of the educational concerns of other local 
529.15  school districts, including concerns of class organization, 
529.16  curriculum development, instructional practices, and 
529.17  characteristics of the student population. 
529.18     The educational needs and interests of the host school 
529.19  district and the training, experience, and interests of the 
529.20  participants must determine the assignments of the participants 
529.21  in the host district.  Participants may teach courses, provide 
529.22  counseling and tutorial services, work with teachers to better 
529.23  prepare students for future educational experiences, serve an 
529.24  underserved population in the district, or assist with 
529.25  administrative functions.  The assignments participants perform 
529.26  for the host district must be comparable to the assignments the 
529.27  participants perform for the district employing the 
529.28  participants.  Participation in the exchange program need not be 
529.29  limited to one school or one school district and may involve 
529.30  other education organizations including education districts and 
529.31  SCs. 
529.32     Subd. 2.  [PROGRAM REQUIREMENTS.] All staff exchanges made 
529.33  under this section are subject to the requirements in this 
529.34  subdivision. 
529.35     (a) A school district employing a participating staff 
529.36  member must not adversely affect the staff member's salary, 
530.1   seniority, or other employment benefits, or otherwise penalize 
530.2   the staff member for participating in the program. 
530.3      (b) Upon completion or termination of an exchange, a school 
530.4   district employing a participating staff member must permit the 
530.5   staff member to return to the same assignment the staff member 
530.6   performed in the district before the exchange, if available, or, 
530.7   if not, a similar assignment. 
530.8      (c) A school district employing a participating staff 
530.9   member must continue to provide the staff member's salary and 
530.10  other employment benefits during the period of the exchange. 
530.11     (d) A participant must be licensed and tenured. 
530.12     (e) Participation in the program must be voluntary. 
530.13     (f) The length of participation in the program must be no 
530.14  less than one-half of a school year and no more than one school 
530.15  year, and any premature termination of participation must be 
530.16  upon the mutual agreement of the participant and the 
530.17  participating school district. 
530.18     (g) A participant is responsible for transportation to and 
530.19  from the host school district. 
530.20     (h) This subdivision does not abrogate or change rights of 
530.21  staff members participating in the staff exchange program or the 
530.22  terms of an agreement between the exclusive representative of 
530.23  the school district employees and the school district.  
530.24     (i) Participating school districts may enter into 
530.25  supplementary agreements with the exclusive representative of 
530.26  the school district employees to accomplish the purpose of this 
530.27  section. 
530.28     Subd. 3.  [APPLICATION PROCEDURES.] The school board of 
530.29  a school district must decide by resolution to participate in 
530.30  the staff exchange program.  A staff member wishing to 
530.31  participate in the exchange program must submit an application 
530.32  to the school district employing the staff member.  The district 
530.33  must, in a timely and appropriate manner, provide to the 
530.34  exclusive bargaining representatives of teachers in the state 
530.35  the number and names of prospective participants within the 
530.36  district, the assignments available within the district, and the 
531.1   length of time for each exchange.  The exclusive bargaining 
531.2   representatives are requested to cooperatively participate in 
531.3   the coordination of exchanges to facilitate exchanges across all 
531.4   geographical regions of the state.  Prospective participants 
531.5   must contact teachers and districts with whom they are 
531.6   interested in making an exchange.  The prospective participants 
531.7   must make all arrangements to accomplish their exchange and the 
531.8   superintendents of the participating districts must approve the 
531.9   arrangements for the exchange in writing. 
531.10     Sec. 36.  Minnesota Statutes 1996, section 125.138, 
531.11  subdivision 1, is amended to read: 
531.12     Subdivision 1.  [ESTABLISHMENT.] A program of faculty 
531.13  collaboration shall be is established to allow Minnesota school 
531.14  districts and post-secondary institutions to arrange temporary 
531.15  placements in each other's institutions.  These arrangements 
531.16  must be made on a voluntary cooperative basis between a school 
531.17  district and post-secondary institution, or between 
531.18  post-secondary institutions.  Exchanges between post-secondary 
531.19  institutions may occur among campuses in the same system or in 
531.20  different systems. 
531.21     Sec. 37.  Minnesota Statutes 1996, section 125.138, 
531.22  subdivision 3, is amended to read: 
531.23     Subd. 3.  [SALARIES; BENEFITS; CERTIFICATION.] Temporary 
531.24  placements made under the program must not have a negative 
531.25  effect on participants' salaries, seniority, or other benefits.  
531.26  Notwithstanding sections 123.35, subdivision 6, and 125.04, a 
531.27  member of the staff of a post-secondary institution may teach in 
531.28  an elementary or secondary school or perform a service, agreed 
531.29  upon according to this section, for which a license would 
531.30  otherwise be required without holding the applicable license.  
531.31  In addition, a licensed educator employed by a school district 
531.32  may teach or perform a service, agreed upon according to this 
531.33  section, at a post-secondary institution without meeting the 
531.34  applicable qualifications of the post-secondary institution.  
531.35  A school district is not subject to section 124.19, subdivision 
531.36  3, as a result of entering into an agreement according to this 
532.1   section that enables a post-secondary educator to teach or 
532.2   provide services in the district.  All arrangements and details 
532.3   regarding the exchange must be mutually agreed to by each 
532.4   participating school district and post-secondary institution 
532.5   before implementation. 
532.6      Sec. 38.  Minnesota Statutes 1996, section 125.138, 
532.7   subdivision 4, is amended to read: 
532.8      Subd. 4.  [EDUCATORS' EMPLOYMENT; CONTINUATION.] An 
532.9   educator who held a temporary position or an exchanged position 
532.10  under this section shall must be continued in or restored to the 
532.11  position previously held, or to a position of like seniority, 
532.12  status, and pay upon return.  Retirement benefits under an 
532.13  employer-sponsored pension or retirement plan shall must not be 
532.14  reduced because of time spent on an exchange or temporary 
532.15  position under section 125.138. 
532.16     Sec. 39.  Minnesota Statutes 1996, section 125.138, 
532.17  subdivision 5, is amended to read: 
532.18     Subd. 5.  [ENTITLEMENT TO BENEFITS AND POSITION.] An 
532.19  educator who is continued in or restored to a position in 
532.20  accordance with subdivision 4: 
532.21     (1) shall must be continued or restored without loss of 
532.22  seniority; and 
532.23     (2) may participate in insurance or other benefits offered 
532.24  by the employer under its established rules and practices. 
532.25     Sec. 40.  Minnesota Statutes 1996, section 125.16, is 
532.26  amended to read: 
532.27     125.16 [TEACHERS' REPORTS.] 
532.28     No An order shall must not be issued for the payment of the 
532.29  wages of any teacher while the teacher is in default in making 
532.30  reports or in returning the teacher's register.  The teachers, 
532.31  principals, and superintendents shall make such reports as may 
532.32  be required by law or the rules of the state or local board 
532.33  under like penalty. 
532.34     Sec. 41.  Minnesota Statutes 1996, section 125.17, 
532.35  subdivision 2, is amended to read: 
532.36     Subd. 2.  [PROBATIONARY PERIOD; DISCHARGE OR DEMOTION.] All 
533.1   teachers in the public schools in cities of the first class 
533.2   during the first three years of consecutive employment shall be 
533.3   deemed to be in a probationary period of employment during which 
533.4   period any annual contract with any teacher may, or may not, be 
533.5   renewed as the school board, after consulting with the peer 
533.6   review committee charged with evaluating the probationary 
533.7   teachers under subdivision 2a or 2b, shall see fit.  The school 
533.8   site management team or the school board if there is no school 
533.9   site management team, shall must adopt a plan for a written 
533.10  evaluation of teachers during the probationary period according 
533.11  to subdivision 2a.  Evaluation by the peer review committee 
533.12  charged with evaluating probationary teachers under subdivision 
533.13  2a shall must occur at least three times each year for a teacher 
533.14  performing services on 120 or more school days, at least two 
533.15  times each year for a teacher performing services on 60 to 119 
533.16  school days, and at least one time each year for a teacher 
533.17  performing services on fewer than 60 school days.  Days devoted 
533.18  to parent-teacher conferences, teachers' workshops, and other 
533.19  staff development opportunities and days on which a teacher is 
533.20  absent from school shall must not be included in determining the 
533.21  number of school days on which a teacher performs services.  The 
533.22  school board may, during such probationary period, discharge or 
533.23  demote a teacher for any of the causes as specified in this 
533.24  code.  The board must give a written statement of the cause of 
533.25  such discharge or demotion shall be given to the teacher by the 
533.26  school board at least 30 days before such removal or 
533.27  demotion shall become becomes effective, and.  The teacher so 
533.28  notified shall have has no right of appeal therefrom from the 
533.29  discharge or demotion.  
533.30     Sec. 42.  Minnesota Statutes 1996, section 125.17, 
533.31  subdivision 2b, is amended to read: 
533.32     Subd. 2b.  [PEER REVIEW FOR PROBATIONARY TEACHERS.] A 
533.33  school board and an exclusive representative of the teachers in 
533.34  the district shall must develop a probationary teacher peer 
533.35  review process through joint agreement.  
533.36     Sec. 43.  Minnesota Statutes 1996, section 125.17, 
534.1   subdivision 3, is amended to read: 
534.2      Subd. 3.  [PERIOD OF SERVICE AFTER PROBATIONARY PERIOD; 
534.3   DISCHARGE OR DEMOTION.] After the completion of such 
534.4   probationary period, without discharge, such teachers as are 
534.5   thereupon reemployed shall continue in service and hold their 
534.6   respective position during good behavior and efficient and 
534.7   competent service and shall must not be discharged or demoted 
534.8   except for cause after a hearing. 
534.9      Any A probationary teacher shall be is deemed to have been 
534.10  reemployed for the ensuing school year, unless the school board 
534.11  in charge of such school shall give gave such teacher notice in 
534.12  writing before June 1 of the termination of such employment.  In 
534.13  event of such notice the employment shall terminate terminates 
534.14  at the close of the school sessions of the current school year.  
534.15     Sec. 44.  Minnesota Statutes 1996, section 125.17, 
534.16  subdivision 3b, is amended to read: 
534.17     Subd. 3b.  [PEER REVIEW FOR CONTINUING CONTRACT TEACHERS.] 
534.18  A school board and an exclusive representative of the teachers 
534.19  in the district shall must develop a peer review process for 
534.20  nonprobationary teachers through joint agreement.  
534.21     Sec. 45.  Minnesota Statutes 1996, section 125.17, 
534.22  subdivision 4, is amended to read: 
534.23     Subd. 4.  [GROUNDS FOR DISCHARGE OR DEMOTION.] Causes for 
534.24  the discharge or demotion of a teacher either during or after 
534.25  the probationary period shall must be: 
534.26     (1) Immoral character, conduct unbecoming a teacher, or 
534.27  insubordination; 
534.28     (2) Failure without justifiable cause to teach without 
534.29  first securing the written release of the school board having 
534.30  the care, management, or control of the school in which the 
534.31  teacher is employed; 
534.32     (3) Inefficiency in teaching or in the management of a 
534.33  school; 
534.34     (4) Affliction with active tuberculosis or other 
534.35  communicable disease shall must be considered as cause for 
534.36  removal or suspension while the teacher is suffering from such 
535.1   disability; or 
535.2      (5) Discontinuance of position or lack of pupils. 
535.3      For purposes of this subdivision, conduct unbecoming a 
535.4   teacher includes an unfair discriminatory practice described in 
535.5   section 363.03, subdivision 5.  
535.6      Sec. 46.  Minnesota Statutes 1996, section 125.17, 
535.7   subdivision 5, is amended to read: 
535.8      Subd. 5.  [HEARING OF CHARGES AGAINST TEACHER.] The charges 
535.9   against a teacher shall must be in writing and signed by the 
535.10  person making the same and then filed with the secretary or 
535.11  clerk of the school board having charge of the school in which 
535.12  the teacher is employed.  Such The school board, before 
535.13  discharging or demoting a teacher, shall must then accord the 
535.14  teacher against whom such charges have been filed a full hearing 
535.15  and give to the teacher at least ten days' notice in writing of 
535.16  the time and place of such hearing; such.  The notice may be 
535.17  served personally or sent by certified mail addressed to such 
535.18  the teacher at the teacher's last known post office address; 
535.19  provided, that.  If the charge be is made by any a person 
535.20  not in connection with the school system the charge may be 
535.21  disregarded by such the school board.  If the grounds are those 
535.22  specified in subdivision 4, clause (1), (2), (3), or (4), the 
535.23  notice must also state a teacher may request arbitration under 
535.24  subdivision 10a.  Upon such hearing being held such At the 
535.25  hearing, the school board or an arbitrator shall hear all 
535.26  evidence that may be adduced in support of the charges and for 
535.27  the teacher's defense thereto to the charges.  Either 
535.28  party shall have has the right to have a written record of the 
535.29  hearing at the expense of the board and to have witnesses 
535.30  subpoenaed and all witnesses so subpoenaed shall must be 
535.31  examined under oath.  Any member of the school board conducting 
535.32  such a hearing shall have has authority to issue subpoenas and 
535.33  to administer oaths to witnesses. 
535.34     Sec. 47.  Minnesota Statutes 1996, section 125.17, 
535.35  subdivision 6, is amended to read: 
535.36     Subd. 6.  [COUNSEL; EXAMINATION OF WITNESSES.] Each party 
536.1   appearing before the school board shall have has the right to be 
536.2   represented by counsel, and such counsel may examine and 
536.3   cross-examine witnesses and present arguments.  
536.4      Sec. 48.  Minnesota Statutes 1996, section 125.17, 
536.5   subdivision 7, is amended to read: 
536.6      Subd. 7.  [HEARINGS.] All hearings before the school 
536.7   board shall must be private or may be public at the decision of 
536.8   the teacher against whom such charges have been filed.  
536.9      Sec. 49.  Minnesota Statutes 1996, section 125.17, 
536.10  subdivision 8, is amended to read: 
536.11     Subd. 8.  [DECISION, WHEN RENDERED.] Such The hearing must 
536.12  be concluded and a decision in writing, stating the grounds on 
536.13  which it is based, rendered within 25 days after giving of such 
536.14  notice.  Where the hearing is before a school board the teacher 
536.15  may be discharged or demoted upon the affirmative vote of a 
536.16  majority of the members of the school board.  If the charges, or 
536.17  any of such, are found to be true, the school board conducting 
536.18  the hearing shall must discharge, demote, or suspend the 
536.19  teacher, as seems to be for the best interest of the school.  No 
536.20  A teacher shall must not be discharged for either of the causes 
536.21  specified in subdivision 4, clause (3), except during the school 
536.22  year, and then only upon charges filed at least four months 
536.23  before the close of the school sessions of such school year.  
536.24     Sec. 50.  Minnesota Statutes 1996, section 125.17, 
536.25  subdivision 9, is amended to read: 
536.26     Subd. 9.  [CHARGES EXPUNGED FROM RECORDS.] In all cases 
536.27  where the final decision is in favor of the teacher the charge 
536.28  or charges shall must be physically expunged from the records.  
536.29     Sec. 51.  Minnesota Statutes 1996, section 125.17, 
536.30  subdivision 10, is amended to read: 
536.31     Subd. 10.  [SUSPENSION PENDING HEARING; SALARY.] Upon the 
536.32  filing of charges After charges are filed against a teacher, the 
536.33  school board may suspend the teacher from regular duty.  If, 
536.34  upon final decision, the teacher is suspended or removed after 
536.35  the final decision, the school board may in its discretion 
536.36  determine the teacher's salary or compensation as of the time of 
537.1   filing the charges.  If the final decision is favorable to the 
537.2   teacher there shall be no abatement of, the board must not abate 
537.3   the teacher's salary or compensation.  
537.4      Sec. 52.  Minnesota Statutes 1996, section 125.17, 
537.5   subdivision 10a, is amended to read: 
537.6      Subd. 10a.  [HEARING AND DETERMINATION BY ARBITRATOR.] A 
537.7   teacher against whom charges have been filed alleging any cause 
537.8   for discharge or demotion specified in subdivision 4, clause 
537.9   (1), (2), (3), or (4), may elect a hearing before an arbitrator 
537.10  instead of the school board.  The hearing is governed by this 
537.11  subdivision.  
537.12     (a) The teacher must make a written request for a hearing 
537.13  before an arbitrator within ten days after receiving a written 
537.14  notice of the filing of charges required by subdivision 5.  
537.15  Failure to request a hearing before an arbitrator during this 
537.16  period is considered acquiescence to a hearing before the board. 
537.17     (b) If the teacher and the school board are unable to 
537.18  mutually agree on an arbitrator, the school board shall must 
537.19  request from the bureau of mediation services a list of five 
537.20  persons to serve as an arbitrator.  If the teacher and the 
537.21  school board are unable to mutually agree on an arbitrator from 
537.22  the list provided, the parties shall alternately strike names 
537.23  from the list until the name of one arbitrator remains.  The 
537.24  person remaining after the striking procedure shall must be the 
537.25  arbitrator.  If the parties are unable to agree on who shall 
537.26  strike the first name, the question must be decided by a flip of 
537.27  a coin.  The teacher and the school board shall must share 
537.28  equally the costs and fees of the arbitrator. 
537.29     (c) The arbitrator shall determine, by a preponderance of 
537.30  the evidence, whether the causes specified in subdivision 4, 
537.31  clause (1), (2), (3), or (4), exist to support the proposed 
537.32  discharge or demotion.  A lesser penalty than discharge or 
537.33  demotion may be imposed by the arbitrator only to the extent 
537.34  that either party proposes such lesser penalty in the 
537.35  proceeding.  In making the determination, the arbitration 
537.36  proceeding is governed by sections 572.11 to 572.17 and by the 
538.1   collective bargaining agreement applicable to the teacher. 
538.2      (d) An arbitration hearing conducted under this subdivision 
538.3   is a meeting for preliminary consideration of allegations or 
538.4   charges within the meaning of section 471.705, subdivision 1d, 
538.5   clause (c), and shall must be closed, unless the teacher 
538.6   requests it to be open. 
538.7      (e) The arbitrator's decision is final and binding on the 
538.8   parties, subject to sections 572.18 to 572.26.  
538.9      Sec. 53.  Minnesota Statutes 1996, section 125.17, 
538.10  subdivision 11, is amended to read: 
538.11     Subd. 11.  [SERVICES TERMINATED BY DISCONTINUANCE OR LACK 
538.12  OF PUPILS; PREFERENCE GIVEN.] (a) Any A teacher whose services 
538.13  are terminated on account of discontinuance of position or lack 
538.14  of pupils shall must receive first consideration for other 
538.15  positions in the district for which that teacher is qualified.  
538.16  In the event it becomes necessary to discontinue one or more 
538.17  positions, in making such discontinuance, teachers shall must be 
538.18  discontinued in any department in the inverse order in which 
538.19  they were employed. 
538.20     (b) Notwithstanding the provisions of clause (a), no a 
538.21  teacher shall be is not entitled to exercise any seniority when 
538.22  that exercise results in that teacher being retained by the 
538.23  district in a field for which the teacher holds only a 
538.24  provisional license, as defined by the board of teaching, unless 
538.25  that exercise of seniority results in the termination of 
538.26  services, on account of discontinuance of position or lack of 
538.27  pupils, of another teacher who also holds a provisional license 
538.28  in the same field.  The provisions of this clause shall do not 
538.29  apply to vocational education licenses.  
538.30     (c) Notwithstanding the provisions of clause (a), no a 
538.31  teacher shall must not be reinstated to a position in a field in 
538.32  which the teacher holds only a provisional license, other than a 
538.33  vocational education license, while another teacher who holds a 
538.34  nonprovisional license in the same field is available for 
538.35  reinstatement. 
538.36     Sec. 54.  Minnesota Statutes 1996, section 125.17, 
539.1   subdivision 12, is amended to read: 
539.2      Subd. 12.  [RECORDS RELATING TO INDIVIDUAL TEACHER; ACCESS; 
539.3   EXPUNGEMENT.] All evaluations and files generated within 
539.4   a school district relating to each individual teacher shall must 
539.5   be available to each individual teacher upon the teacher's 
539.6   written request.  Effective January 1, 1976, all evaluations and 
539.7   files, wherever generated, relating to each individual teacher 
539.8   shall must be available to each individual teacher upon the 
539.9   teacher's written request.  The teacher shall have has the right 
539.10  to reproduce any of the contents of the files at the teacher's 
539.11  expense and to submit for inclusion in the file written 
539.12  information in response to any material contained therein. 
539.13     A school district may destroy the files as provided by law 
539.14  and shall must expunge from the teacher's file any material 
539.15  found to be false or substantially inaccurate through the 
539.16  grievance procedure required pursuant to section 179A.20, 
539.17  subdivision 4; provided,.  The grievance procedure promulgated 
539.18  by the director of the bureau of mediation services, pursuant to 
539.19  section 179A.04, subdivision 3, clause (h), shall apply applies 
539.20  to those principals and supervisory employees not included in an 
539.21  appropriate unit as defined in section 179A.03.  Expungement 
539.22  proceedings shall must be commenced within the time period 
539.23  provided in the collective bargaining agreement for the 
539.24  commencement of a grievance.  If no time period is provided in 
539.25  the bargaining agreement, the expungement proceedings shall must 
539.26  commence within 15 days after the teacher has knowledge of the 
539.27  inclusion in the teacher's file of the material the teacher 
539.28  seeks to have expunged.  
539.29     Sec. 55.  Minnesota Statutes 1996, section 125.18, is 
539.30  amended to read: 
539.31     125.18 [SABBATICAL LEAVE FOR SCHOOL TEACHERS.] 
539.32     Subdivision 1.  [QUALIFICATIONS.] A teacher who holds a 
539.33  license, according to this chapter, and a contract for 
539.34  employment by a school district or other organization providing 
539.35  public education may be granted a sabbatical leave by the board 
539.36  employing the teacher under rules promulgated by the board. 
540.1      Subd. 2.  [RETURN TO POSITION.] Any A teacher who makes 
540.2   application applies for and accepts sabbatical leave shall agree 
540.3   that, upon the conclusion of said sabbatical leave, the teacher 
540.4   shall return to the teacher's position for a period determined 
540.5   by the board before the leave is granted, or repay the district 
540.6   the portion of salary received while on sabbatical leave. 
540.7      Subd. 3.  [RETAIN RIGHTS IN EMPLOYING DISTRICT.] Any A 
540.8   teacher who has been granted a sabbatical leave shall must 
540.9   retain all rights in the employing district as though teaching 
540.10  in that district. 
540.11     Subd. 4.  [DEFINITION.] The term sabbatical leave, as used 
540.12  in this section, shall mean means compensated leaves of absence 
540.13  granted for purposes of professional improvement or service. 
540.14     Sec. 56.  Minnesota Statutes 1996, section 125.181, is 
540.15  amended to read: 
540.16     125.181 [PROFESSIONAL PRACTICES; INTENT.] 
540.17     The purpose of sections 125.181 to 125.185, is to develop 
540.18  standards of ethical conduct for the guidance and improvement of 
540.19  the teaching profession and to provide measures through which 
540.20  the observance of such standards by the members of the 
540.21  profession may be promoted and enforced.  
540.22     Sec. 57.  Minnesota Statutes 1996, section 125.183, 
540.23  subdivision 1, is amended to read: 
540.24     Subdivision 1.  [BOARD OF TEACHING.] The board of teaching 
540.25  consists of 11 members appointed by the governor.  Membership 
540.26  terms, compensation of members, removal of members, the filling 
540.27  of membership vacancies, and fiscal year and reporting 
540.28  requirements shall be are as provided in sections 214.07 to 
540.29  214.09.  No member may be reappointed for more than one 
540.30  additional term. 
540.31     Sec. 58.  Minnesota Statutes 1996, section 125.183, 
540.32  subdivision 4, is amended to read: 
540.33     Subd. 4.  [VACANT POSITION.] The position of a member who 
540.34  leaves Minnesota or whose employment status changes to a 
540.35  category different from that from which appointed shall be is 
540.36  deemed vacant.  
541.1      Sec. 59.  Minnesota Statutes 1996, section 125.183, 
541.2   subdivision 5, is amended to read: 
541.3      Subd. 5.  [ADMINISTRATION, TERMS, COMPENSATION; REMOVAL; 
541.4   VACANCIES.] The provision of staff, administrative services and 
541.5   office space; the review and processing of complaints; the 
541.6   setting of fees; the selection and duties of an executive 
541.7   secretary to serve the board; and other provisions relating to 
541.8   board operations shall be are as provided in chapter 214.  
541.9   Membership terms, compensation of members, removal of members, 
541.10  the filling of membership vacancies, and fiscal year and 
541.11  reporting requirements shall be are as provided in sections 
541.12  214.07 to 214.09.  
541.13     Sec. 60.  Minnesota Statutes 1996, section 125.184, is 
541.14  amended to read: 
541.15     125.184 [MEETINGS.] 
541.16     Subdivision 1.  [MEETINGS.] The board of teaching shall 
541.17  must meet regularly at such the times and places as the board 
541.18  shall determine determines.  Meetings shall must be called by 
541.19  the chair or at the written request of any eight members. 
541.20     Subd. 2.  [EXECUTIVE SECRETARY.] The board of teaching 
541.21  shall must have an executive secretary who shall be is in the 
541.22  unclassified civil service and who shall is not be a member of 
541.23  the board. 
541.24     Sec. 61.  Minnesota Statutes 1996, section 125.185, 
541.25  subdivision 1, is amended to read: 
541.26     Subdivision 1.  [CODE OF ETHICS.] The board of teaching 
541.27  shall must develop by rule a code of ethics covering standards 
541.28  of professional teaching practices, including areas of ethical 
541.29  conduct and professional performance and methods of enforcement. 
541.30     Sec. 62.  Minnesota Statutes 1996, section 125.185, 
541.31  subdivision 2, is amended to read: 
541.32     Subd. 2.  [ADVISE MEMBERS OF PROFESSION.] The board shall 
541.33  must act in an advisory capacity to members of the profession in 
541.34  matters of interpretation of the code of ethics.  
541.35     Sec. 63.  Minnesota Statutes 1996, section 125.185, 
541.36  subdivision 4, is amended to read: 
542.1      Subd. 4.  [LICENSE AND RULES.] (a) The board shall must 
542.2   adopt rules to license public school teachers and interns 
542.3   subject to chapter 14. 
542.4      (b) The board shall must adopt rules requiring a person to 
542.5   successfully complete a skills examination in reading, writing, 
542.6   and mathematics as a requirement for initial teacher licensure.  
542.7   Such rules shall must require college and universities offering 
542.8   a board approved teacher preparation program to provide remedial 
542.9   assistance to persons who did not achieve a qualifying score on 
542.10  the skills examination, including those for whom English is a 
542.11  second language. 
542.12     (c) The board shall must adopt rules to approve teacher 
542.13  preparation programs. 
542.14     (d) The board shall must provide the leadership and shall 
542.15  adopt rules for the redesign of teacher education programs to 
542.16  implement a research based, results-oriented curriculum that 
542.17  focuses on the skills teachers need in order to be effective.  
542.18  The board shall implement new systems of teacher preparation 
542.19  program evaluation to assure program effectiveness based on 
542.20  proficiency of graduates in demonstrating attainment of program 
542.21  outcomes. 
542.22     (e) The board shall must adopt rules requiring successful 
542.23  completion of an examination of general pedagogical knowledge 
542.24  and examinations of licensure-specific teaching skills.  The 
542.25  rules shall be effective on the dates determined by the board, 
542.26  but not later than July 1, 1999. 
542.27     (f) The board shall must adopt rules requiring teacher 
542.28  educators to work directly with elementary or secondary school 
542.29  teachers in elementary or secondary schools to obtain periodic 
542.30  exposure to the elementary or secondary teaching environment. 
542.31     (g) The board shall must grant licenses to interns and to 
542.32  candidates for initial licenses. 
542.33     (h) The board shall must design and implement an assessment 
542.34  system which requires a candidate for an initial license and 
542.35  first continuing license to demonstrate the abilities necessary 
542.36  to perform selected, representative teaching tasks at 
543.1   appropriate levels. 
543.2      (i) The board shall must receive recommendations from local 
543.3   committees as established by the board for the renewal of 
543.4   teaching licenses. 
543.5      (j) The board shall must grant life licenses to those who 
543.6   qualify according to requirements established by the board, and 
543.7   suspend or revoke licenses pursuant to sections 125.09 and 
543.8   214.10.  The board shall must not establish any expiration date 
543.9   for application for life licenses.  
543.10     Sec. 64.  Minnesota Statutes 1996, section 125.185, 
543.11  subdivision 5, is amended to read: 
543.12     Subd. 5.  [REGISTER OF PERSONS LICENSED.] The executive 
543.13  secretary of the board of teaching shall keep a record of the 
543.14  proceedings of and a register of all persons licensed pursuant 
543.15  to the provisions of this chapter.  The register shall must show 
543.16  the name, address, license number and the renewal thereof of the 
543.17  license.  The board shall must on July 1, of each year or as 
543.18  soon thereafter as is practicable, compile a list of such duly 
543.19  licensed teachers and transmit a copy thereof of the list to the 
543.20  board.  A copy of the register shall must be available during 
543.21  business hours at the office of the board to any interested 
543.22  person.  
543.23     Sec. 65.  Minnesota Statutes 1996, section 125.185, 
543.24  subdivision 7, is amended to read: 
543.25     Subd. 7.  [FRAUD; GROSS MISDEMEANOR.] Any A person who 
543.26  shall in any manner claim claims to be a licensed teacher 
543.27  without a valid existing license issued by the board or any 
543.28  person who employs fraud or deception in applying for or 
543.29  securing a license shall be is guilty of a gross misdemeanor.  
543.30     Sec. 66.  Minnesota Statutes 1996, section 125.187, is 
543.31  amended to read: 
543.32     125.187 [VALIDITY OF CERTIFICATES OR LICENSES.] 
543.33     No A rule adopted by the board of teaching shall must not 
543.34  affect the validity of certificates or licenses to teach in 
543.35  effect on July 1, 1974, or the rights and privileges of the 
543.36  holders thereof, except that any such certificate or license may 
544.1   be suspended or revoked for any of the causes and by the 
544.2   procedures specified by law. 
544.3      Sec. 67.  Minnesota Statutes 1996, section 125.188, 
544.4   subdivision 1, is amended to read: 
544.5      Subdivision 1.  [REQUIREMENTS.] (a) A preparation program 
544.6   that is an alternative to the post-secondary teacher preparation 
544.7   program as a means to acquire an entrance license is 
544.8   established.  The program may be offered in any instructional 
544.9   field. 
544.10     (b) To participate in the alternative preparation program, 
544.11  the candidate must: 
544.12     (1) have a bachelor's degree; 
544.13     (2) pass an examination of skills in reading, writing, and 
544.14  mathematics as required by section 125.05; 
544.15     (3) have been offered a job to teach in a school district, 
544.16  group of districts, or an education district approved by the 
544.17  board of teaching to offer an alternative preparation licensure 
544.18  program; 
544.19     (4)(i) have a college major in the subject area to be 
544.20  taught; or 
544.21     (ii) have five years of experience in a field related to 
544.22  the subject to be taught; and 
544.23     (5) document successful experiences working with children. 
544.24     (c) An alternative preparation license is of one year 
544.25  duration and is issued by the board of teaching to participants 
544.26  on admission to the alternative preparation program.  
544.27     (d) The board of teaching shall must ensure that one of the 
544.28  purposes of this program is to enhance the school 
544.29  desegregation/integration policies adopted by the state.  
544.30     Sec. 68.  Minnesota Statutes 1996, section 125.188, 
544.31  subdivision 3, is amended to read: 
544.32     Subd. 3.  [PROGRAM APPROVAL.] (a) The board of teaching 
544.33  shall must approve alternative preparation programs based on 
544.34  criteria adopted by the board. 
544.35     (b) An alternative preparation program at a school 
544.36  district, group of schools, or an education district must be 
545.1   affiliated with a post-secondary institution that has a teacher 
545.2   preparation program. 
545.3      Sec. 69.  Minnesota Statutes 1996, section 125.188, 
545.4   subdivision 5, is amended to read: 
545.5      Subd. 5.  [STANDARD ENTRANCE LICENSE.] The board of 
545.6   teaching shall must issue a standard entrance license to an 
545.7   alternative preparation licensee who has successfully completed 
545.8   the school year in the alternative preparation program and who 
545.9   has received a positive recommendation from the licensee's 
545.10  mentorship team. 
545.11     Sec. 70.  Minnesota Statutes 1996, section 125.1885, 
545.12  subdivision 5, is amended to read: 
545.13     Subd. 5.  [STANDARD ENTRANCE LICENSE.] The state board of 
545.14  education shall must issue a standard entrance license to an 
545.15  alternative preparation licensee who has successfully completed 
545.16  the school year in the alternative preparation program and who 
545.17  has received a positive recommendation from the licensee's 
545.18  mentorship team. 
545.19     Sec. 71.  Minnesota Statutes 1996, section 125.189, is 
545.20  amended to read: 
545.21     125.189 [TEACHERS OF DEAF AND HARD OF HEARING STUDENTS; 
545.22  LICENSURE REQUIREMENTS.] 
545.23     The board of teaching will must review and determine 
545.24  appropriate licensure requirements for a candidate for a license 
545.25  or an applicant for a continuing license to teach deaf and hard 
545.26  of hearing students in prekindergarten through grade 12.  In 
545.27  addition to other requirements, a candidate must demonstrate the 
545.28  minimum level of proficiency in American sign language as 
545.29  determined by the board.  
545.30     Sec. 72.  Minnesota Statutes 1996, section 125.1895, 
545.31  subdivision 4, is amended to read: 
545.32     Subd. 4.  [REIMBURSEMENT.] For purposes of revenue under 
545.33  sections 124.321 and 124.322, the department of children, 
545.34  families, and learning shall must only reimburse school 
545.35  districts for the services of those interpreters/transliterators 
545.36  who satisfy the standards of competency under this section.  
546.1      Sec. 73.  Minnesota Statutes 1996, section 125.211, 
546.2   subdivision 2, is amended to read: 
546.3      Subd. 2.  [RESPONSIBILITY.] By July 1, 1989, the board of 
546.4   teaching shall must begin to evaluate the effectiveness of 
546.5   prebaccalaureate, postbaccalaureate, and other alternative 
546.6   program structures for preparing candidates for entrance into 
546.7   the teaching profession.  The evaluation shall be conducted by 
546.8   independent research centers or evaluators who are not 
546.9   associated with a Minnesota teacher education institution and 
546.10  shall be longitudinal in nature.  By July 1, 1990, the board of 
546.11  teaching shall make a preliminary report on the effectiveness of 
546.12  alternative program structures to the education and finance 
546.13  committees of the legislature. 
546.14     Sec. 74.  Minnesota Statutes 1996, section 125.230, 
546.15  subdivision 4, is amended to read: 
546.16     Subd. 4.  [EMPLOYMENT CONDITIONS.] A school district 
546.17  shall must pay a teaching resident a salary equal to 75 percent 
546.18  of the salary of a first-year teacher with a bachelor's degree 
546.19  in the district.  The resident shall be a member of the local 
546.20  bargaining unit and shall be covered under the terms of the 
546.21  contract, except for salary and benefits, unless otherwise 
546.22  provided in this subdivision.  The school district shall must 
546.23  provide health insurance coverage for the resident if the 
546.24  district provides it for teachers, and may provide other 
546.25  benefits upon negotiated agreement. 
546.26     Sec. 75.  Minnesota Statutes 1996, section 125.230, 
546.27  subdivision 6, is amended to read: 
546.28     Subd. 6.  [LEARNING AND DEVELOPMENT REVENUE ELIGIBILITY.] A 
546.29  school district with an approved teaching residency program may 
546.30  use learning and development revenue for each teaching resident 
546.31  in kindergarten through grade six.  A district also may use the 
546.32  revenue for a paraprofessional who is a person of color enrolled 
546.33  in an approved teacher preparation program.  A school 
546.34  district shall must not use a teaching resident to replace an 
546.35  existing teaching position unless: 
546.36     (1) there is no teacher available who is properly licensed 
547.1   to fill the vacancy, who has been placed on unrequested leave of 
547.2   absence in the district, and who wishes to be reinstated; and 
547.3      (2) the district's collective bargaining agreement includes 
547.4   a memorandum of understanding that permits teaching residents to 
547.5   fill an existing teaching position. 
547.6      Sec. 76.  Minnesota Statutes 1996, section 125.230, 
547.7   subdivision 7, is amended to read: 
547.8      Subd. 7.  [RECOMMENDATION FOR LICENSURE REQUIREMENTS.] (a) 
547.9   The board of teaching shall must develop for teachers of 
547.10  students in prekindergarten through grade 12, model teaching 
547.11  residency outcomes and assessments, and mentoring programs. 
547.12     (b) The board of teaching shall must report to the 
547.13  education committees of the legislature by February 15, 1994, on 
547.14  developing a residency program as part of teacher licensure.  
547.15  The report shall at least discuss: 
547.16     (1) whether a teacher residency program should be a 
547.17  prerequisite to obtaining an initial teaching license or a 
547.18  continuing teacher license; 
547.19     (2) the number of teacher residency positions available 
547.20  statewide by school district; 
547.21     (3) how a teacher residency program and a mentorship 
547.22  program for school teachers can be structured; 
547.23     (4) whether additional state funding for teacher residency 
547.24  programs is required; 
547.25     (5) the interrelationship between existing teacher 
547.26  preparation programs and a teacher residency program; 
547.27     (6) issues related to implementing a teacher residency 
547.28  program, including a timeline for implementing the program; and 
547.29     (7) how a teacher residency program may impact upon a 
547.30  teacher licensed in another state who seeks a teaching position 
547.31  in Minnesota. 
547.32     Sec. 77.  Minnesota Statutes 1996, section 125.231, 
547.33  subdivision 3, is amended to read: 
547.34     Subd. 3.  [APPLICATIONS.] The board of teaching shall must 
547.35  make application forms available to sites interested in 
547.36  developing or expanding a mentorship program.  A school 
548.1   district, a group of school districts, or a coalition of 
548.2   districts, teachers and teacher education institutions may apply 
548.3   for a teacher mentorship program grant.  The board of teaching, 
548.4   in consultation with the teacher mentoring task force, shall 
548.5   must approve or disapprove the applications.  To the extent 
548.6   possible, the approved applications must reflect effective 
548.7   mentoring components, include a variety of coalitions and be 
548.8   geographically distributed throughout the state.  The board of 
548.9   teaching shall must encourage the selected sites to consider the 
548.10  use of its assessment procedures.  
548.11     Sec. 78.  Minnesota Statutes 1996, section 125.53, is 
548.12  amended to read: 
548.13     125.53 [DESIGNATED STATE OFFICIAL.] 
548.14     For the purposes of the agreement set forth in section 
548.15  125.52, the designated state official for this state shall be is 
548.16  the commissioner of children, families, and learning. 
548.17     Sec. 79.  Minnesota Statutes 1996, section 125.54, is 
548.18  amended to read: 
548.19     125.54 [RECORD OF CONTRACTS.] 
548.20     Two copies of all contracts made on behalf of this state 
548.21  pursuant to the agreement set forth in section 125.52 shall must 
548.22  be kept on file in the office of the commissioner of children, 
548.23  families, and learning. 
548.24     Sec. 80.  Minnesota Statutes 1996, section 125.60, 
548.25  subdivision 2, is amended to read: 
548.26     Subd. 2.  [LEAVE OF ABSENCE.] The board of any district may 
548.27  grant an extended leave of absence without salary to any full- 
548.28  or part-time elementary or secondary teacher who has been 
548.29  employed by the district for at least five years and has at 
548.30  least ten years of allowable service, as defined in section 
548.31  354.05, subdivision 13, or the bylaws of the appropriate 
548.32  retirement association or ten years of full-time teaching 
548.33  service in Minnesota public elementary and secondary schools.  
548.34  The maximum duration of an extended leave of absence pursuant to 
548.35  this section shall must be determined by mutual agreement of the 
548.36  board and the teacher at the time the leave is granted and shall 
549.1   be at least three but no more than five years.  An extended 
549.2   leave of absence pursuant to this section shall be taken by 
549.3   mutual consent of the board and the teacher.  If the school 
549.4   board denies a teacher's request, it shall must provide 
549.5   reasonable justification for the denial.  
549.6      Sec. 81.  Minnesota Statutes 1996, section 125.60, 
549.7   subdivision 3, is amended to read: 
549.8      Subd. 3.  [REINSTATEMENT.] Except as provided in 
549.9   subdivisions 6a and 6b, a teacher on an extended leave of 
549.10  absence pursuant to this section shall have the right to be 
549.11  reinstated to a position for which the teacher is licensed at 
549.12  the beginning of any school year which immediately follows a 
549.13  year of the extended leave of absence, unless the teacher fails 
549.14  to give the required notice of intention to return or is 
549.15  discharged or placed on unrequested leave of absence or the 
549.16  contract is terminated pursuant to section 125.12 or 125.17 
549.17  while the teacher is on the extended leave.  The board shall is 
549.18  not be obligated to reinstate any teacher who is on an extended 
549.19  leave of absence pursuant to this section, unless the teacher 
549.20  advises advised the board of the intention to return before 
549.21  February 1 in the school year preceding the school year in which 
549.22  the teacher wishes to return or by February 1 in the calendar 
549.23  year in which the leave is scheduled to terminate.  
549.24     Sec. 82.  Minnesota Statutes 1996, section 125.60, 
549.25  subdivision 4, is amended to read: 
549.26     Subd. 4.  [SENIORITY AND CONTINUING CONTRACT RIGHTS.] Any 
549.27  teacher who is reinstated to a teaching position after an 
549.28  extended leave of absence pursuant to this section shall retain 
549.29  seniority and continuing contract rights in the employing 
549.30  district as though the teacher had been teaching in the district 
549.31  during the period of the extended leave; provided, however,.  
549.32  This subdivision shall not be construed to require a board to 
549.33  reinstate a teacher to any particular position or to include the 
549.34  years spent on the extended leave of absence in the 
549.35  determination of a teacher's salary upon return to teaching in 
549.36  this district. 
550.1      Sec. 83.  Minnesota Statutes 1996, section 125.60, 
550.2   subdivision 6a, is amended to read: 
550.3      Subd. 6a.  [EMPLOYMENT IN ANOTHER DISTRICT.] No A school 
550.4   board shall not be obligated to reinstate a teacher who takes a 
550.5   full-time or part-time position as a teacher in another 
550.6   Minnesota school district while on an extended leave of absence 
550.7   pursuant to this section.  This subdivision shall not apply to a 
550.8   teacher who is employed as a substitute teacher.  
550.9      Sec. 84.  Minnesota Statutes 1996, section 125.60, 
550.10  subdivision 8, is amended to read: 
550.11     Subd. 8.  [BENEFITS.] A teacher on an extended leave of 
550.12  absence shall receive all of the health, accident, medical, 
550.13  surgical and hospitalization insurance or benefits, for both the 
550.14  teacher and the teacher's dependents, for which the teacher 
550.15  would otherwise be eligible if not on an extended leave,.  A 
550.16  teacher shall receive the coverage if such coverage is available 
550.17  from the school district's insurer, if the teacher requests the 
550.18  coverage, and if the teacher either (a) reimburses the district 
550.19  for the full amount of the premium necessary to maintain the 
550.20  coverage within one month following the district's payment of 
550.21  the premium, or (b) if the district is wholly or partially 
550.22  self-insured, pays the district, according to a schedule agreed 
550.23  upon by the teacher and the school board, an amount determined 
550.24  by the school board to be the amount that would be charged for 
550.25  the coverage chosen by the teacher if the school board purchased 
550.26  all health, accident, medical, surgical and hospitalization 
550.27  coverage for its teachers from an insurer.  
550.28     Sec. 85.  Minnesota Statutes 1996, section 125.611, 
550.29  subdivision 1, is amended to read: 
550.30     Subdivision 1.  [CRITERIA.] For purposes of this section, 
550.31  "teacher" means a teacher as defined in section 125.03, 
550.32  subdivision 1, who:  
550.33     (a) is employed in a public elementary or secondary school 
550.34  in the state and 
550.35     (b) either 
550.36     (1)(i) has not less than at least 15 total years of 
551.1   full-time teaching service in elementary, secondary, and 
551.2   technical colleges, or at least 15 years of allowable service as 
551.3   defined in sections 354.05, subdivision 13; 354.092; 354.093; 
551.4   354.094; 354.53; 354.66; 354A.011, subdivision 4; 354A.091; 
551.5   354A.092; 354A.093; 354A.094; or Laws 1982, chapter 578, article 
551.6   II, section 1 and 
551.7      (ii) has or will have attained the age of 55 years but less 
551.8   than 65 years as of the June 30 in the school year during which 
551.9   an application for an early retirement incentive is made, or 
551.10     (2) has not less than at least 30 total years of full-time 
551.11  teaching service in elementary, secondary, and technical 
551.12  colleges, or at least 30 years of allowable service as defined 
551.13  in sections 354.05, subdivision 13; 354.092; 354.093; 354.094; 
551.14  354.53; 354.66; 354A.011, subdivision 4; 354A.091; 354A.092; 
551.15  354A.093; 354A.094; or Laws 1982, chapter 578, article II, 
551.16  section 1. 
551.17     Sec. 86.  Minnesota Statutes 1996, section 125.611, 
551.18  subdivision 13, is amended to read: 
551.19     Subd. 13.  [APPLICATIONS.] A teacher meeting the 
551.20  requirements of subdivision 1 may apply to the school board of 
551.21  the employing district for a contract for termination of 
551.22  services, withdrawal from active teaching service, and payment 
551.23  of an early retirement incentive.  This application shall must 
551.24  be submitted on or before February 1 of the school year at the 
551.25  end of which the teacher wishes to retire.  A school board shall 
551.26  must approve or deny the application within 30 days after it is 
551.27  received by the board.  The amount of the early retirement 
551.28  incentive shall be agreed upon between the teacher and the 
551.29  school board.  The early retirement incentive shall be paid by 
551.30  the employing district at the time and in the manner mutually 
551.31  agreed upon by a teacher and the board.  
551.32     Sec. 87.  Minnesota Statutes 1996, section 125.62, 
551.33  subdivision 2, is amended to read: 
551.34     Subd. 2.  [APPLICATION.] To obtain a joint grant, a joint 
551.35  application shall must be submitted to the state board of 
551.36  education.  The application must be developed with the 
552.1   participation of the parent advisory committee, established 
552.2   according to section 126.51, and the Indian advisory committee 
552.3   at the post-secondary institution.  The joint application shall 
552.4   set forth: 
552.5      (1) the in-kind, coordination, and mentorship services to 
552.6   be provided by the post-secondary institution; and 
552.7      (2) the coordination and mentorship services to be provided 
552.8   by the school district. 
552.9      Sec. 88.  Minnesota Statutes 1996, section 125.62, 
552.10  subdivision 3, is amended to read: 
552.11     Subd. 3.  [REVIEW AND COMMENT.] The state board shall must 
552.12  submit the joint application to the Minnesota Indian scholarship 
552.13  committee for review and comment. 
552.14     Sec. 89.  Minnesota Statutes 1996, section 125.62, 
552.15  subdivision 7, is amended to read: 
552.16     Subd. 7.  [LOAN FORGIVENESS.] The loan may be forgiven if 
552.17  the recipient is employed as a teacher, as defined in section 
552.18  125.12 or 125.17, in an eligible school or program in 
552.19  Minnesota.  One-fourth of the principal of the outstanding loan 
552.20  amount shall be forgiven for each year of eligible employment, 
552.21  or a pro rata amount for eligible employment during part of a 
552.22  school year, part-time employment as a substitute teacher, or 
552.23  other eligible part-time teaching.  Loans for $2,500 or less may 
552.24  be forgiven at the rate of up to $1,250 per year.  The following 
552.25  schools and programs are eligible for the purposes of loan 
552.26  forgiveness: 
552.27     (1) a school or program operated by a school district; 
552.28     (2) a tribal contract school eligible to receive aid 
552.29  according to section 124.86; 
552.30     (3) a head start program; 
552.31     (4) an early childhood family education program; 
552.32     (5) a program providing educational services to children 
552.33  who have not entered kindergarten; or 
552.34     (6) a program providing educational enrichment services to 
552.35  American Indian students in grades kindergarten through 12. 
552.36     If a person has an outstanding loan obtained through this 
553.1   program, the duty to make payments of principal and interest may 
553.2   be deferred during any time period the person is enrolled at 
553.3   least one-half time in an advanced degree program in a field 
553.4   that leads to employment by a school district.  To defer loan 
553.5   obligations, the person shall provide written notification to 
553.6   the state board of education and the recipients of the joint 
553.7   grant that originally authorized the loan.  Upon approval by the 
553.8   state board and the joint grant recipients, payments shall be 
553.9   deferred.  
553.10     The higher education services office shall approve the loan 
553.11  forgiveness program, loan deferral, and procedures to administer 
553.12  the program shall be approved by the higher education services 
553.13  office. 
553.14     Sec. 90.  Minnesota Statutes 1996, section 125.623, 
553.15  subdivision 3, is amended to read: 
553.16     Subd. 3.  [PROGRAM REQUIREMENTS.] (a) A grant recipient 
553.17  shall must recruit persons of color to be teachers in 
553.18  elementary, secondary, early childhood or parent education, and 
553.19  provide support in linking program participants with jobs in the 
553.20  recipient's school district. 
553.21     (b) A grant recipient shall must establish an advisory 
553.22  council composed of representatives of communities of color. 
553.23     (c) A grant recipient, with the assistance of the advisory 
553.24  council, shall must recruit high school students and other 
553.25  persons, including educational paraprofessionals, support them 
553.26  through the higher education application and admission process, 
553.27  advise them while enrolled and link them with support resources 
553.28  in the college or university and the community. 
553.29     (d) A grant recipient shall must award stipends to students 
553.30  of color enrolled in an approved licensure program to help cover 
553.31  the costs of tuition, student fees, supplies, and books.  
553.32  Stipend awards must be based on a student's financial need and 
553.33  students must apply for any additional financial aid they are 
553.34  eligible for to supplement this program.  No more than ten 
553.35  percent of the grant may be used for costs of administering the 
553.36  program.  Students must agree to teach in the grantee school 
554.1   district for at least two years after licensure.  If the 
554.2   district has no licensed positions open, the student may teach 
554.3   in another district in Minnesota. 
554.4      (e) The commissioner of children, families, and learning 
554.5   shall consider the following criteria in awarding grants: 
554.6      (1) whether the program is likely to increase the 
554.7   recruitment and retention of students of color in teaching; 
554.8      (2) whether grant recipients will recruit paraprofessionals 
554.9   from the district to work in its schools; and 
554.10     (3) whether grant recipients will establish or have a 
554.11  mentoring program for students of color. 
554.12     Sec. 91.  Minnesota Statutes 1996, section 125.80, is 
554.13  amended to read: 
554.14     125.80 [TEACHER LUNCH PERIOD.] 
554.15     Each A teacher shall must be provided with a duty-free 
554.16  lunch period, scheduled according to school board policy or 
554.17  negotiated agreement. 
554.18     Sec. 92.  Minnesota Statutes 1996, section 126.36, 
554.19  subdivision 1, is amended to read: 
554.20     Subdivision 1.  [BILINGUAL AND ENGLISH AS A SECOND LANGUAGE 
554.21  LICENSES.] The board of teaching, hereinafter the board, shall 
554.22  must grant teaching licenses in bilingual education and English 
554.23  as a second language to persons who present satisfactory 
554.24  evidence that they: 
554.25     (a) Possess competence and communicative skills in English 
554.26  and in another language; 
554.27     (b) Possess a bachelor's degree or other academic degree 
554.28  approved by the board, and meet such requirements as to course 
554.29  of study and training as the board may prescribe.  
554.30     Sec. 93.  Minnesota Statutes 1996, section 126.36, 
554.31  subdivision 5, is amended to read: 
554.32     Subd. 5.  [PERSONS ELIGIBLE FOR EMPLOYMENT.] Any person 
554.33  licensed under this section shall be eligible for employment by 
554.34  a school board as a teacher in a bilingual education or English 
554.35  as a second language program in which the language for which the 
554.36  person is licensed is taught or used as a medium of 
555.1   instruction.  A school board may prescribe only those additional 
555.2   qualifications for teachers licensed under this section as are 
555.3   approved by the board of teaching.  
555.4      Sec. 94.  Minnesota Statutes 1996, section 126.36, 
555.5   subdivision 7, is amended to read: 
555.6      Subd. 7.  [AFFIRMATIVE EFFORTS IN HIRING.] In hiring for 
555.7   all positions in bilingual education programs school, 
555.8   districts shall must give preference to and make affirmative 
555.9   efforts to seek, recruit, and employ persons who are (a) native 
555.10  speakers of the language which is the medium of instruction in 
555.11  the bilingual education program, and (b) who share the culture 
555.12  of the limited English speaking children who are enrolled in the 
555.13  program.  The district shall provide procedures for the 
555.14  involvement of the parent advisory committees in designing the 
555.15  procedures for the recruitment, screening and selection of 
555.16  applicants, provided that nothing herein shall.  This section 
555.17  must not be construed to limit the school board's authority to 
555.18  hire and discharge personnel.  
555.19     Sec. 95.  Minnesota Statutes 1996, section 126.70, 
555.20  subdivision 1, is amended to read: 
555.21     Subdivision 1.  [STAFF DEVELOPMENT COMMITTEE.] A school 
555.22  board shall must use the revenue authorized in section 124A.29 
555.23  for in-service education for programs under section 126.77, 
555.24  subdivision 2, or for staff development plans under this 
555.25  section.  The board must establish a staff development committee 
555.26  to develop the plan, assist site decision-making teams in 
555.27  developing a site plan consistent with the goals of the plan, 
555.28  and evaluate staff development efforts at the site level.  A 
555.29  majority of the advisory committee must be teachers representing 
555.30  various grade levels, subject areas, and special education.  The 
555.31  advisory committee must also include nonteaching staff, parents, 
555.32  and administrators.  Districts shall must report staff 
555.33  development results and expenditures to the commissioner in the 
555.34  form and manner determined by the commissioner.  The expenditure 
555.35  report shall must include expenditures by the school board for 
555.36  district level activities and expenditures made by the staff.  
556.1   The report shall must provide a breakdown of expenditures for 
556.2   (1) curriculum development and programs, (2) in-service 
556.3   education, workshops, and conferences, and (3) the cost of 
556.4   teachers or substitute teachers for staff development purposes.  
556.5   Within each of these categories, the report shall must also 
556.6   indicate whether the expenditures were incurred at the district 
556.7   level or the school site level, and whether the school site 
556.8   expenditures were made possible by the grants to school sites 
556.9   that demonstrate exemplary use of allocated staff development 
556.10  revenue.  These expenditures are to be reported using the UFARS 
556.11  system.  The commissioner shall report the staff development 
556.12  expenditure data to the education committees of the legislature 
556.13  by February 15 each year.  
556.14     Sec. 96.  Minnesota Statutes 1996, section 126.70, 
556.15  subdivision 2a, is amended to read: 
556.16     Subd. 2a.  [STAFF DEVELOPMENT OUTCOMES.] The staff 
556.17  development committee shall must adopt a staff development plan 
556.18  for improving student achievement of education outcomes.  The 
556.19  plan must be consistent with education outcomes that the school 
556.20  board determines.  The plan shall must include ongoing staff 
556.21  development activities that contribute toward continuous 
556.22  improvement in achievement of the following goals: 
556.23     (1) improve student achievement of state and local 
556.24  education standards in all areas of the curriculum; 
556.25     (2) effectively meet the needs of a diverse student 
556.26  population, including at-risk children, children with 
556.27  disabilities, and gifted children, within the regular classroom 
556.28  and other settings; 
556.29     (3) provide an inclusive curriculum for a racially, 
556.30  ethnically, and culturally diverse student population that is 
556.31  consistent with the state education diversity rule and the 
556.32  district's education diversity plan; 
556.33     (4) improve staff ability to collaborate and consult with 
556.34  one another and to resolve conflicts; 
556.35     (5) effectively teach and model violence prevention policy 
556.36  and curriculum that address issues of harassment and teach 
557.1   nonviolent alternatives for conflict resolution; and 
557.2      (6) provide teachers and other members of site-based 
557.3   management teams with appropriate management and financial 
557.4   management skills. 
557.5      Sec. 97.  Minnesota Statutes 1997 Supplement, section 
557.6   126.72, subdivision 2, is amended to read: 
557.7      Subd. 2.  [PURPOSE.] The school board shall must determine 
557.8   the needs of its classroom teachers and the need for changes in 
557.9   its curriculum.  In determining these needs, the school board 
557.10  shall must obtain recommendations from classroom teachers, staff 
557.11  responsible for curriculum, and the curriculum advisory 
557.12  committee.  It shall consider assessment results, other test 
557.13  results, the need for mentor teachers, and the district 
557.14  improvement plan portion of the report adopted according to 
557.15  section 123.972, subdivision 5 3.  Contracts executed under this 
557.16  section shall relate directly to the identified needs. 
557.17     Sec. 98.  Minnesota Statutes 1996, section 126.72, 
557.18  subdivision 3, is amended to read: 
557.19     Subd. 3.  [SELECTION COMMITTEE.] A committee of six members 
557.20  appointed by the school board shall recommend teachers to 
557.21  receive contracts.  Three members of the committee shall be 
557.22  classroom teachers.  Three members shall be administrators, 
557.23  parents, members of the school board, or members of the 
557.24  community.  The committee shall consider only classroom teachers 
557.25  who have background, knowledge, or expertise needed to perform 
557.26  duties in the areas of need identified by the school board.  
557.27  Years of service in the district shall must not be a factor for 
557.28  consideration by the committee.  No A teacher shall not have a 
557.29  right to a contract under this section based on seniority or 
557.30  order of employment in the district.  The committee shall 
557.31  recommend to the school board names of individual teachers.  The 
557.32  number of individual teachers recommended shall be approximately 
557.33  the number designated by the school board to meet the identified 
557.34  needs.  The school board may award contracts to any of the 
557.35  recommended teachers but not to any others.  The board may 
557.36  request the committee to recommend additional names of teachers. 
558.1      Sec. 99.  Minnesota Statutes 1996, section 126.72, 
558.2   subdivision 6, is amended to read: 
558.3      Subd. 6.  [REPORT.] Each district awarding contracts under 
558.4   this section is encouraged to submit a report to the 
558.5   commissioner of children, families, and learning.  The report 
558.6   shall indicate the number of contracts awarded, whether duties 
558.7   are to be performed before, during, or after the school day or 
558.8   during the summer, the total cost of all contracts, and a 
558.9   general description of the duties.  The statement shall also 
558.10  describe how the recommendations required by subdivision 2 were 
558.11  obtained.  Any problems associated with implementing this 
558.12  section may be included. 
558.13     Sec. 100.  [REPEALER.] 
558.14     Minnesota Statutes 1996, section 125.10, is repealed. 
558.15     Sec. 101.  [INSTRUCTION TO REVISOR.] 
558.16     The revisor of statutes shall renumber each section of 
558.17  Minnesota Statutes listed in column A with the number listed in 
558.18  column B.  The revisor shall also make necessary cross-reference 
558.19  changes consistent with the renumbering. 
558.20        Column A                        Column B 
558.21       125.01                         125A.01
558.22       125.02                         125A.02
558.23       125.52                         125A.05
558.24       125.53                         125A.06
558.25       125.54                         125A.07
558.26       125.181                        125A.10
558.27       125.182                        125A.11
558.28       125.183, subd. 1               125A.12, subd. 1
558.29                subd. 3                        subd. 2
558.30                subd. 4                        subd. 3
558.31                subd. 5                        subd. 4
558.32                subd. 6                        subd. 5
558.33       125.184                        125A.13
558.34       125.185, subd. 1               125A.14, subd. 1
558.35                subd. 2                        subd. 2
558.36                subd. 3                        subd. 3
559.1                 subd. 4                        subd. 4
559.2                 subd. 4b                       subd. 5
559.3                 subd. 5                        subd. 6
559.4                 subd. 6                        subd. 7
559.5                 subd. 7                        subd. 8
559.6                 subd. 9                        subd. 9
559.7                 subd. 10                       subd. 10
559.8        125.03, subd. 1                125A.19, subd. 1
559.9                subd. 4                         subd. 2
559.10       125.04                         125A.20
559.11       125.187                        125A.21
559.12       125.05, subd. 1                125A.22, subd. 1
559.13               subd. 1a                        subd. 2
559.14               subd. 1c                        subd. 3
559.15               subd. 2                         subd. 4
559.16               subd. 3                         subd. 5
559.17               subd. 4                         subd. 6
559.18               subd. 6                         subd. 7
559.19               subd. 8                         subd. 8
559.20               subd. 9                         subd. 9
559.21       126.36, subd. 1                125A.23, subd. 1
559.22               subd. 2                         subd. 2
559.23               subd. 3                         subd. 3
559.24               subd. 4                         subd. 4
559.25               subd. 5                         subd. 5
559.26               subd. 7                         subd. 6
559.27       125.06                         125A.24
559.28       125.188                        125A.25
559.29       125.1885                       125A.26
559.30       125.189                        125A.27
559.31       121.11, subd. 12               125A.30
559.32       121.611                        125A.31
559.33       125.032                        125A.32
559.34       125.031                        125A.33
559.35       125.1895                       125A.34
559.36       125.03, subd. 6                125A.35
560.1        125.191                        125A.36
560.2        125.08                         125A.40
560.3        125.11                         125A.41
560.4        125.09, subd. 1                125A.42, subd. 1
560.5                subd. 4                         subd. 2
560.6                subd. 5                         subd. 3
560.7        125.12, subd. 1                125A.45, subd. 1
560.8                subd. 1a                        subd. 2
560.9                subd. 2                         subd. 3
560.10               subd. 2a                        subd. 4
560.11               subd. 3                         subd. 5
560.12               subd. 3b                        subd. 6
560.13               subd. 4                         subd. 7
560.14               subd. 4b                        subd. 8
560.15               subd. 6                         subd. 9
560.16               subd. 6a                        subd. 10
560.17               subd. 6b                        subd. 11
560.18               subd. 7                         subd. 12
560.19               subd. 8                         subd. 13
560.20               subd. 9                         subd. 14
560.21               subd. 9a                        subd. 15
560.22               subd. 10                        subd. 16
560.23               subd. 11                        subd. 17
560.24               subd. 13                        subd. 18
560.25               subd. 14                        subd. 19
560.26       125.17, subd. 1                125A.46, subd. 1
560.27               subd. 2                         subd. 2
560.28               subd. 2b                        subd. 3
560.29               subd. 3                         subd. 4
560.30               subd. 3b                        subd. 5
560.31               subd. 4                         subd. 6
560.32               subd. 5                         subd. 7
560.33               subd. 6                         subd. 8
560.34               subd. 7                         subd. 9
560.35               subd. 8                         subd. 10
560.36               subd. 9                         subd. 11
561.1                subd. 10                        subd. 12
561.2                subd. 10a                       subd. 13
561.3                subd. 11                        subd. 14
561.4                subd. 12                        subd. 15
561.5        125.121                        125A.47
561.6        126.72                         125A.48
561.7        123.35, subd. 5                125A.49
561.8        125.14                         125A.50
561.9        125.13                         125A.51
561.10       125.135                        125A.52
561.11       125.138                        125A.53
561.12       125.1385                       125A.54
561.13       125.15                         125A.57
561.14       125.16                         125A.58
561.15       125.706                        125A.59
561.16       125.80                         125A.60
561.17       125.60, subd. 1                125A.62, subd. 1
561.18               subd. 2                         subd. 2
561.19               subd. 3                         subd. 3
561.20               subd. 4                         subd. 4
561.21               subd. 5                         subd. 5
561.22               subd. 6                         subd. 6
561.23               subd. 6a                        subd. 7
561.24               subd. 6b                        subd. 8
561.25               subd. 8                         subd. 9
561.26       125.18                         125A.63
561.27       125.615                        125A.64
561.28       125.611, subd. 1               125A.65, subd. 1
561.29                subd. 2                        subd. 2
561.30                subd. 11                       subd. 3
561.31                subd. 12                       subd. 4
561.32                subd. 13                       subd. 5
561.33       124.278                        125A.67
561.34       125.211                        125A.70
561.35       125.230                        125A.72 
561.36       123.35, subd. 13               125A.73 
562.1        125.231, subd. 1               125A.75, subd. 1
562.2                 subd. 3                        subd. 2
562.3                 subd. 4                        subd. 3
562.4                 subd. 5                        subd. 4
562.5                 subd. 7                        subd. 5
562.6        124C.41                        125A.77
562.7        126.70, subd. 1                125A.79, subd. 1
562.8                subd. 2                         subd. 2
562.9                subd. 2a                        subd. 3
562.10       124A.29                        125A.80
562.11       124A.292                       125A.81 
562.12       125.62                         125A.83
562.13       125.623                        125A.84
562.14       125.241                        125A.87
562.15                             ARTICLE 9 
562.16                            CHAPTER 125B 
562.17                  STUDENTS AND SCHOOL ENVIRONMENT 
562.18     Section 1.  Minnesota Statutes 1996, section 121.207, 
562.19  subdivision 2, is amended to read: 
562.20     Subd. 2.  [REPORTS; CONTENT.] On or before By January 1, 
562.21  1994, the commissioner of children, families, and learning, in 
562.22  consultation with the criminal and juvenile information policy 
562.23  group, shall develop a standardized form to be used by schools 
562.24  to report incidents involving the use or possession of a 
562.25  dangerous weapon in school zones.  The form shall include the 
562.26  following information: 
562.27     (1) a description of each incident, including a description 
562.28  of the dangerous weapon involved in the incident; 
562.29     (2) where, at what time, and under what circumstances the 
562.30  incident occurred; 
562.31     (3) information about the offender, other than the 
562.32  offender's name, including the offender's age; whether the 
562.33  offender was a student and, if so, where the offender attended 
562.34  school; and whether the offender was under school expulsion or 
562.35  suspension at the time of the incident; 
562.36     (4) information about the victim other than the victim's 
563.1   name, if any, including the victim's age; whether the victim was 
563.2   a student and, if so, where the victim attended school; and if 
563.3   the victim was not a student, whether the victim was employed at 
563.4   the school; 
563.5      (5) the cost of the incident to the school and to the 
563.6   victim; and 
563.7      (6) the action taken by the school administration to 
563.8   respond to the incident. 
563.9      The commissioner also shall develop an alternative 
563.10  reporting format that allows school districts to provide 
563.11  aggregate data, with an option to use computer technology to 
563.12  report the data. 
563.13     Sec. 2.  Minnesota Statutes 1996, section 121.207, 
563.14  subdivision 3, is amended to read: 
563.15     Subd. 3.  [REPORTS; FILING REQUIREMENTS.] By February 1 and 
563.16  July 1 of each year, each school shall report incidents 
563.17  involving the use or possession of a dangerous weapon in school 
563.18  zones to the commissioner of children, families, and learning.  
563.19  The reports shall must be made on the standardized forms or 
563.20  using the alternative format developed by the commissioner under 
563.21  subdivision 2.  The commissioner shall compile the information 
563.22  it receives from the schools and report it annually to the 
563.23  commissioner of public safety, the criminal and juvenile 
563.24  information policy group, and the legislature. 
563.25     Sec. 3.  Minnesota Statutes 1996, section 126.05, is 
563.26  amended to read: 
563.27     126.05 [TEACHER TRAINING, EFFECTS OF DRUGS AND ALCOHOL.] 
563.28     All educational institutions providing teacher education 
563.29  shall must offer a program in the personal use and misuse of and 
563.30  dependency on tobacco, alcohol, drugs and other chemicals, and. 
563.31  Every student attending such institution educational 
563.32  institutions in preparation for teaching service shall be 
563.33  required to take and to satisfactorily complete such a program.  
563.34  Every student who graduates after June, 1974, shall complete 
563.35  such a course. 
563.36     Sec. 4.  Minnesota Statutes 1996, section 126.14, is 
564.1   amended to read: 
564.2      126.14 [UNITED STATES FLAG.] 
564.3      Subdivision 1.  [DISPLAYED BY SCHOOLS.] There shall be 
564.4   displayed at Every public school in Minnesota when in session 
564.5   must display an appropriate United States flag when in session.  
564.6   Such display The flag shall be displayed upon the school grounds 
564.7   or outside the school building, upon on a proper staff, on every 
564.8   legal holiday occurring during the school term and at such other 
564.9   times as the respective boards board of such districts the 
564.10  district may direct and.  The flag must be displayed within the 
564.11  principal rooms of such the school building at all other times 
564.12  while the same school is in session. 
564.13     Subd. 2.  [SCHOOL BOARDS TO PROVIDE FLAGS AND STAFFS.] It 
564.14  shall be the duty of each The board to must provide such the 
564.15  flag for each of the school buildings of in their respective 
564.16  districts, together with a suitable staff for the to display 
564.17  thereof the flag outside of such the school building and proper 
564.18  arrangement for the to display thereof within such the flag in 
564.19  the building, and a suitable receptacle for the safekeeping 
564.20  of such the flag when not in use, as by this section directed, 
564.21  at all times.  
564.22     Sec. 5.  Minnesota Statutes 1996, section 126.15, 
564.23  subdivision 2, is amended to read: 
564.24     Subd. 2.  [APPOINTMENT OF MEMBERS.] Unless the parents or 
564.25  guardian of a pupil object in writing to the school authorities 
564.26  to the appointment of the pupil on a school safety patrol, it is 
564.27  lawful for any pupil over nine years of age to be appointed and 
564.28  designated as a member thereof, provided that of the patrol in 
564.29  any school in which there are no pupils who have attained such 
564.30  age, any pupil in the highest grade therein may be so appointed 
564.31  and designated.  School authorities may also appoint and 
564.32  designate nonpupil adults as members of a school safety patrol 
564.33  on a voluntary or for-hire basis. 
564.34     Sec. 6.  Minnesota Statutes 1996, section 126.15, 
564.35  subdivision 3, is amended to read: 
564.36     Subd. 3.  [LIABILITY NOT TO ATTACH.] No liability shall 
565.1   attach either to the school, educational institution, governing 
565.2   board, directing authority, or any individual director, board 
565.3   member, superintendent, principal, teacher, or other school 
565.4   authority by virtue of the organization, maintenance, or 
565.5   operation of such a school safety patrol because of injuries 
565.6   sustained by any pupil, whether a member of the patrol or 
565.7   otherwise by reason of the operation and maintenance thereof of 
565.8   the patrol.  
565.9      Sec. 7.  Minnesota Statutes 1996, section 126.1995, is 
565.10  amended to read: 
565.11     126.1995 [SAFETY REQUIREMENT GUIDELINES.] 
565.12     The department of children, families, and learning, in 
565.13  cooperation with the Minnesota fire marshal's division, shall 
565.14  must develop guidelines for school lab safety.  The guidelines 
565.15  shall include a list of safety requirements and an explanation 
565.16  of the minimum state and national laws, codes, and standards 
565.17  affecting school lab safety the Minnesota fire marshal considers 
565.18  necessary for schools to implement.  The district superintendent 
565.19  must shall ensure that every school lab within the district 
565.20  complies with the school lab safety requirements.  Lack of 
565.21  funding is not an excuse for noncompliance. 
565.22     Sec. 8.  Minnesota Statutes 1996, section 126.21, 
565.23  subdivision 3, is amended to read: 
565.24     Subd. 3.  [EXCEPTIONS.] (1) (a) Notwithstanding any other 
565.25  state law to the contrary, in athletic programs operated by 
565.26  educational institutions or public services and designed for 
565.27  participants 12 years old or older or in the 7th grade or above, 
565.28  it is not an unfair discriminatory practice to restrict 
565.29  membership on an athletic team to participants of one sex whose 
565.30  overall athletic opportunities have previously been limited. 
565.31     (2) (b) When an educational institution or a public service 
565.32  provides athletic teams for children 11 years old or younger or 
565.33  in the 6th grade or below, those teams shall be operated without 
565.34  restrictions on the basis of sex, except that when overall 
565.35  athletic opportunities for one sex have previously been limited 
565.36  and there is a demonstrated interest by members of that sex to 
566.1   participate on a team restricted to members of that sex, the 
566.2   educational institution or public service may provide a team 
566.3   restricted to members of that sex. 
566.4      (3) (c) When two teams in the same sport are in fact 
566.5   separated or substantially separated according to sex, the two 
566.6   teams shall be provided with substantially equal budgets per 
566.7   participant, exclusive of gate receipts and other revenues 
566.8   generated by that sport, and in all other respects shall be 
566.9   treated in a substantially equal manner.  However, nothing in 
566.10  this section shall be construed to require the two teams to 
566.11  conduct combined practice sessions or any other combined 
566.12  activities related to athletics. 
566.13     (4) (d) If two teams are provided in the same sport, one of 
566.14  these teams may be restricted to members of a sex whose overall 
566.15  athletic opportunities have previously been limited, and members 
566.16  of either sex shall be permitted to try out for the other team. 
566.17     (5) (e) Notwithstanding the provisions of clauses (1), (2) 
566.18  paragraphs (a), (b), and (4) (d), any wrestling team may be 
566.19  restricted to members of one sex whether or not the overall 
566.20  athletic opportunities of that sex have previously been limited, 
566.21  provided that programs or events are provided for each sex to 
566.22  the extent the educational institution or public service 
566.23  determines that these programs or events are necessary to 
566.24  accommodate the demonstrated interest of each sex to participate 
566.25  in wrestling. 
566.26     Sec. 9.  Minnesota Statutes 1996, section 126.21, 
566.27  subdivision 5, is amended to read: 
566.28     Subd. 5.  [RULES.] The state board of education, after 
566.29  consultation with the commissioner of human rights shall must 
566.30  promulgate rules in accordance with chapter 14 to implement this 
566.31  section to prevent discrimination in elementary and secondary 
566.32  school athletic programs operated by educational institutions.  
566.33  The rules promulgated by the state board pursuant to this 
566.34  section shall not require athletic competition or tournaments 
566.35  for teams whose membership may be restricted to members of a sex 
566.36  whose overall athletic opportunities have previously been 
567.1   limited to be scheduled in conjunction with the scheduling of 
567.2   athletic competition or tournaments for teams whose membership 
567.3   is not so restricted by this section.  Any organization, 
567.4   association or league entered into by elementary or secondary 
567.5   schools or public services for the purpose of promoting sports 
567.6   or adopting rules and regulations for the conduct of athletic 
567.7   contests between members shall provide rules and regulations and 
567.8   conduct its activities so as to permit its members to comply 
567.9   fully with this section.  The rules of that organization, 
567.10  association or league may provide separate seasons for athletic 
567.11  competition or tournaments in a sport for teams whose membership 
567.12  may be restricted to members of a sex whose overall athletic 
567.13  opportunities have previously been limited from athletic 
567.14  competition or tournaments established for teams in that same 
567.15  sport whose membership is not so restricted by this section, and 
567.16  its rules may prohibit a participating student from competing on 
567.17  more than one school team in a given sport during a single 
567.18  school year.  
567.19     Sec. 10.  Minnesota Statutes 1996, section 127.17, 
567.20  subdivision 1, is amended to read: 
567.21     Subdivision 1.  [MEMBERSHIP REGULATED.] It shall be is 
567.22  unlawful for any pupil, registered as such and attending any 
567.23  public elementary, high school, community college, or technical 
567.24  college, which is partially or wholly maintained by public 
567.25  funds, to join, become a member of, or to solicit any other 
567.26  pupil of any such public school to join, or become a member of, 
567.27  any secret fraternity or society wholly or partially formed from 
567.28  the membership of pupils attending any such public schools or to 
567.29  take part in the organization or formation of any such 
567.30  fraternity or society, except such societies or associations as 
567.31  are sanctioned by the district school board of the district 
567.32  concerned.  
567.33     Sec. 11.  Minnesota Statutes 1996, section 127.17, 
567.34  subdivision 3, is amended to read: 
567.35     Subd. 3.  [PENALTIES.] The boards shall have full power and 
567.36  authority, pursuant to the adoption of such rules and 
568.1   regulations made and adopted by them, to A school board may 
568.2   suspend or dismiss any pupil of such the schools therefrom, or 
568.3   to prevent them, or any of them, from graduating or 
568.4   participating in school honors when, after investigation, in the 
568.5   judgment of such boards the board or a majority of their its 
568.6   membership, such the pupil is guilty of violating any of the 
568.7   provisions of this section or is guilty of violating any rule or 
568.8   regulation adopted by such boards the board for the purpose of 
568.9   governing such its schools, or enforcing this section.  
568.10     Sec. 12.  Minnesota Statutes 1996, section 127.17, 
568.11  subdivision 4, is amended to read: 
568.12     Subd. 4.  ["RUSHING" OR SOLICITING FORBIDDEN.] It is a 
568.13  misdemeanor for any person, not a pupil of the schools, to be 
568.14  upon school grounds, or to enter any school building, for the 
568.15  purpose of "rushing" or soliciting any pupil of the schools to 
568.16  join any fraternity, society, or association organized outside 
568.17  of the schools.  Municipal and county District courts have 
568.18  jurisdiction of offenses committed under this subdivision.  All 
568.19  persons found guilty shall be fined not less than $2, nor more 
568.20  than $10, to be paid to the county treasurer or, upon failure to 
568.21  pay the fine, to be imprisoned for not more than ten days.  
568.22     Sec. 13.  Minnesota Statutes 1996, section 127.40, 
568.23  subdivision 4, is amended to read: 
568.24     Subd. 4.  [SCHOOL-BASED OMBUDSPERSON.] "School-based 
568.25  ombudsperson" means an administrator, a teacher, a parent, or a 
568.26  student representative who shall have the responsibilities as 
568.27  outlined in under section 127.412. 
568.28     Sec. 14.  Minnesota Statutes 1996, section 127.41, is 
568.29  amended to read: 
568.30     127.41 [DISCIPLINE AND REMOVAL OF STUDENTS FROM CLASS.] 
568.31     Subdivision 1.  [REQUIRED POLICY.] Each school board shall 
568.32  must adopt a written districtwide school discipline policy which 
568.33  shall include includes written rules of conduct for students, 
568.34  minimum consequences for violations of the rules, and grounds 
568.35  and procedures for removal of a student from class.  The policy 
568.36  shall must be developed with the participation of 
569.1   administrators, teachers, employees, pupils, parents, community 
569.2   members, and such other individuals or organizations as the 
569.3   board determines appropriate.  A school site council may adopt 
569.4   additional provisions to the policy subject to the approval of 
569.5   the school board. 
569.6      Subd. 2.  [GROUNDS FOR REMOVAL FROM CLASS.] The policy 
569.7   shall must establish the various grounds for which a student may 
569.8   be removed from a class in the district for a period of time 
569.9   pursuant to the procedures specified in the policy.  The grounds 
569.10  in the policy shall must include at least the following 
569.11  provisions as well as other grounds determined appropriate by 
569.12  the board:  
569.13     (a) willful conduct which materially and substantially 
569.14  disrupts the rights of others to an education; 
569.15     (b) willful conduct which endangers school district 
569.16  employees, the student or other students, or the property of the 
569.17  school; and 
569.18     (c) willful violation of any rule of conduct specified in 
569.19  the discipline policy adopted by the board.  
569.20     Subd. 3.  [POLICY COMPONENTS.] The policy shall must 
569.21  include at least the following components:  
569.22     (a) rules governing student conduct and procedures for 
569.23  informing students of the rules; 
569.24     (b) the grounds for removal of a student from a class; 
569.25     (c) the authority of the classroom teacher to remove 
569.26  students from the classroom pursuant to procedures and rules 
569.27  established in the district's policy; 
569.28     (d) the procedures for removal of a student from a class by 
569.29  a teacher, school administrator, or other school district 
569.30  employee; 
569.31     (e) the period of time for which a student may be removed 
569.32  from a class, which may not exceed five class periods for a 
569.33  violation of a rule of conduct; 
569.34     (f) provisions relating to the responsibility for and 
569.35  custody of a student removed from a class; 
569.36     (g) the procedures for return of a student to the specified 
570.1   class from which the student has been removed; 
570.2      (h) the procedures for notifying a student and the 
570.3   student's parents or guardian of violations of the rules of 
570.4   conduct and of resulting disciplinary actions; 
570.5      (i) any procedures determined appropriate for encouraging 
570.6   early involvement of parents or guardians in attempts to improve 
570.7   a student's behavior; 
570.8      (j) any procedures determined appropriate for encouraging 
570.9   early detection of behavioral problems; 
570.10     (k) any procedures determined appropriate for referring a 
570.11  student in need of special education services to those services; 
570.12     (1) the procedures for consideration of whether there is a 
570.13  need for a further assessment or of whether there is a need for 
570.14  a review of the adequacy of a current individual education plan 
570.15  of a student with a disability who is removed from class; 
570.16     (m) procedures for detecting and addressing chemical abuse 
570.17  problems of a student while on the school premises; 
570.18     (n) the minimum consequences for violations of the code of 
570.19  conduct; and 
570.20     (o) procedures for immediate and appropriate interventions 
570.21  tied to violations of the code.  
570.22     Sec. 15.  Minnesota Statutes 1996, section 127.411, is 
570.23  amended to read: 
570.24     127.411 [SCHOOL SITE MEDIATION BOARD.] 
570.25     Subdivision 1.  [BOARD ALLOWED.] A school district or 
570.26  school site council may establish a school site mediation 
570.27  board.  The board shall must consist of equal numbers of staff 
570.28  and parents and, in the case of secondary schools, student 
570.29  representatives.  Members shall be representative of the school 
570.30  community and shall must be selected by a method as determined 
570.31  in the district's discipline policy. 
570.32     Subd. 2.  [PURPOSES AND DUTIES.] The board shall must 
570.33  mediate issues in dispute at the school site related to the 
570.34  implementation of district and school site codes of conduct 
570.35  under sections 127.40 to 127.413, and the application of the 
570.36  codes to a student. 
571.1      Sec. 16.  Minnesota Statutes 1996, section 127.412, is 
571.2   amended to read: 
571.3      127.412 [OMBUDSPERSON SERVICE.] 
571.4      A school district or school site council may establish an 
571.5   ombudsperson service for students, parents, and staff.  The 
571.6   service shall must consist of an administrator, a student, a 
571.7   parent, and a teacher.  The school site shall must notify 
571.8   students, parents, and staff of the availability of the 
571.9   service.  The service shall must provide advocacy for 
571.10  enforcement of the codes of conduct and the procedures to 
571.11  remediate disputes related to implementation of the code of 
571.12  conduct and the goals of the school in maintaining an orderly 
571.13  learning environment for all students. 
571.14     Sec. 17.  Minnesota Statutes 1996, section 127.413, is 
571.15  amended to read: 
571.16     127.413 [NOTIFICATION.] 
571.17     Representatives of the school board and the exclusive 
571.18  representative of the teachers shall discuss issues related to 
571.19  notification prior to placement in classrooms of students with 
571.20  histories of violent behavior and any need for intervention 
571.21  services or conflict resolution or training for staff in such 
571.22  these cases. 
571.23     Sec. 18.  Minnesota Statutes 1996, section 127.42, is 
571.24  amended to read: 
571.25     127.42 [REVIEW OF POLICY.] 
571.26     The principal or other person having general control and 
571.27  supervision of the school, and representatives of parents, 
571.28  students, and staff in a school building shall confer at least 
571.29  annually to review the discipline policy and to assess whether 
571.30  the policy has been enforced.  Each A school board shall must 
571.31  conduct an annual review of the districtwide discipline policy. 
571.32     Sec. 19.  Minnesota Statutes 1996, section 127.44, is 
571.33  amended to read: 
571.34     127.44 [AVERSIVE AND DEPRIVATION PROCEDURES.] 
571.35     The state board of education shall must adopt rules 
571.36  governing the use of aversive and deprivation procedures by 
572.1   school district employees or persons under contract with a 
572.2   school district.  The rules must: 
572.3      (1) promote the use of positive approaches and must not 
572.4   encourage or require the use of aversive or deprivation 
572.5   procedures; 
572.6      (2) require that planned application of aversive and 
572.7   deprivation procedures be a part of an individual education 
572.8   plan; 
572.9      (3) require parents or guardians to be notified after the 
572.10  use of aversive or deprivation procedures in an emergency; 
572.11     (4) establish health and safety standards for the use of 
572.12  time-out procedures that require a safe environment, continuous 
572.13  monitoring of the child, ventilation, and adequate space; and 
572.14     (5) contain a list of prohibited procedures. 
572.15     Sec. 20.  Minnesota Statutes 1996, section 127.45, 
572.16  subdivision 2, is amended to read: 
572.17     Subd. 2.  [CORPORAL PUNISHMENT NOT ALLOWED.] An employee or 
572.18  agent of a public school district shall not inflict corporal 
572.19  punishment or cause corporal punishment to be inflicted upon a 
572.20  pupil to reform unacceptable conduct or as a penalty for 
572.21  unacceptable conduct. 
572.22     Sec. 21.  Minnesota Statutes 1996, section 127.455, is 
572.23  amended to read: 
572.24     127.455 [MODEL POLICY.] 
572.25     Subdivision 1.  [MODEL POLICY.] The commissioner of 
572.26  children, families, and learning shall maintain and make 
572.27  available to school boards a model sexual, religious, and racial 
572.28  harassment and violence policy.  The model policy shall address 
572.29  the requirements of section 127.46.  
572.30     Subd. 2.  [SUBMISSION TO COMMISSIONER.] Each school 
572.31  board shall must submit to the commissioner of children, 
572.32  families, and learning a copy of the sexual, religious, and 
572.33  racial harassment and sexual, religious, and racial violence 
572.34  policy the board has adopted.  
572.35     Sec. 22.  Minnesota Statutes 1996, section 127.46, is 
572.36  amended to read: 
573.1      127.46 [SEXUAL, RELIGIOUS, AND RACIAL HARASSMENT AND 
573.2   VIOLENCE POLICY.] 
573.3      Each A school board shall must adopt a written sexual, 
573.4   religious, and racial harassment and sexual, religious, and 
573.5   racial violence policy that conforms with sections 363.01 to 
573.6   363.15.  The policy shall apply to pupils, teachers, 
573.7   administrators, and other school personnel, include reporting 
573.8   procedures, and set forth disciplinary actions that will be 
573.9   taken for violation of the policy.  Disciplinary actions must 
573.10  conform with collective bargaining agreements and sections 
573.11  127.27 to 127.39.  The policy must be conspicuously posted 
573.12  throughout each school building, given to each district employee 
573.13  and independent contractor at the time of entering into the 
573.14  person's employment contract, and included in each school's 
573.15  student handbook on school policies.  Each school must develop a 
573.16  process for discussing the school's sexual, religious, and 
573.17  racial harassment and violence policy with students and school 
573.18  employees.  
573.19     Sec. 23.  Minnesota Statutes 1996, section 127.47, 
573.20  subdivision 2, is amended to read: 
573.21     Subd. 2.  [DISSEMINATION.] The locker policy must be 
573.22  disseminated to parents and students in the way that other 
573.23  policies of general application to students are disseminated.  A 
573.24  copy of the policy must be provided to a student the first time 
573.25  after the policy is effective that the student is given the use 
573.26  of a locker. 
573.27     Sec. 24.  Minnesota Statutes 1996, section 127.48, is 
573.28  amended to read: 
573.29     127.48 [POLICY TO REFER FIREARMS POSSESSOR.] 
573.30     Each A school board must have a policy requiring the 
573.31  appropriate school official to, as soon as practicable, refer to 
573.32  the criminal justice or juvenile delinquency system, as 
573.33  appropriate, any a pupil who brings a firearm to school 
573.34  unlawfully. 
573.35     Sec. 25.  [REPEALER.] 
573.36     Minnesota Statutes 1996, section 127.17, subdivision 2, is 
574.1   repealed. 
574.2      Sec. 26.  [INSTRUCTION TO REVISOR.] 
574.3      The revisor of statutes shall renumber each section of 
574.4   Minnesota Statutes listed in column A with the number listed in 
574.5   column B.  The revisor shall also make necessary cross-reference 
574.6   changes consistent with the renumbering. 
574.7         Column A                        Column B 
574.8        126.01                         125B.01
574.9        126.14                         125B.03
574.10       126.091                        125B.05
574.11       126.83                         125B.07
574.12       126.256                        125B.08
574.13       126.1995                       125B.10
574.14       126.033, subd. 1               125B.15, subd. 1
574.15                subd. 2                        subd. 2
574.16                subd. 3                        subd. 3
574.17                subd. 5                        subd. 4
574.18       126.034                        125B.16
574.19       126.035                        125B.17
574.20       126.036                        125B.18
574.21       126.037                        125B.19
574.22       126.05                         125B.20
574.23       126.15                         125B.25
574.24       127.40                         125B.26
574.25       127.41                         125B.27
574.26       127.411                        125B.28
574.27       127.412                        125B.30
574.28       127.413                        125B.31
574.29       127.42                         125B.32
574.30       127.43                         125B.33
574.31       127.44                         125B.34
574.32       127.45                         125B.35
574.33       127.455, subd. 1               125B.36, subd. 1
574.34                subd. 2                        subd. 3
574.35       127.46                         125B.36, subd. 2
574.36       126.21                         125B.37
575.1        127.465                        125B.38
575.2        127.17, subd. 1                125B.40, subd. 1
575.3                subd. 3                         subd. 2
575.4                subd. 4                         subd. 3
575.5        127.47                         125B.41
575.6        127.48                         125B.43
575.7        121.207                        125B.44
575.8        127.26                         125B.50
575.9        127.27                         125B.51
575.10       127.28                         125B.52
575.11       127.281                        125B.53
575.12       127.282                        125B.54
575.13       127.29                         125B.55
575.14       127.30, subd. 1                125B.56, subd. 1
575.15               subd. 1a                        subd. 2
575.16               subd. 2                         subd. 3
575.17               subd. 3                         subd. 4
575.18       127.31, subd. 1                125B.57, subd. 1
575.19               subd. 2                         subd. 2
575.20               subd. 3                         subd. 3
575.21               subd. 4                         subd. 4
575.22               subd. 5                         subd. 5
575.23               subd. 7                         subd. 6
575.24               subd. 8                         subd. 7
575.25               subd. 9                         subd. 8
575.26               subd. 10                        subd. 9
575.27               subd. 11                        subd. 10
575.28               subd. 12                        subd. 11
575.29               subd. 13                        subd. 12
575.30               subd. 14                        subd. 13
575.31               subd. 15                        subd. 14
575.32       127.311                        125B.58
575.33       127.32                         125B.59
575.34       127.33                         125B.60
575.35       127.34                         125B.61
575.36       127.35                         125B.62
576.1        127.36                         125B.63
576.2        127.37                         125B.64
576.3        127.38                         125B.65
576.4        127.39                         125B.66
576.5                              ARTICLE 10 
576.6                             CHAPTER 129C 
576.7                      CENTER FOR ARTS EDUCATION 
576.8      Section 1.  Minnesota Statutes 1996, section 124C.07, is 
576.9   amended to read: 
576.10     124C.07 [COMPREHENSIVE ARTS PLANNING PROGRAM.] 
576.11     The Lola and Rudy Perpich Minnesota center for arts 
576.12  education shall prescribe the form and manner of application by 
576.13  one or more school districts to be designated as a site to 
576.14  participate in the comprehensive arts planning program.  Up to 
576.15  30 sites may be selected.  The center shall designate sites in 
576.16  consultation with the Minnesota alliance for arts in education 
576.17  and the Minnesota state arts board.  
576.18     Sec. 2.  Minnesota Statutes 1996, section 124C.08, 
576.19  subdivision 2, is amended to read: 
576.20     Subd. 2.  [CRITERIA.] The center, in consultation with the 
576.21  comprehensive arts planning program state steering committee, 
576.22  shall must establish criteria for site selection.  Criteria 
576.23  shall include at least the following:  
576.24     (1) a willingness by the district or group of districts to 
576.25  designate a program chair for comprehensive arts planning with 
576.26  sufficient authority to implement the program; 
576.27     (2) a willingness by the district or group of districts to 
576.28  create a committee comprised of school district and community 
576.29  people whose function is to promote comprehensive arts education 
576.30  in the district; 
576.31     (3) commitment on the part of committee members to 
576.32  participate in training offered by the department of children, 
576.33  families, and learning; 
576.34     (4) a commitment of the committee to conduct a needs 
576.35  assessment of arts education; 
576.36     (5) commitment by the committee to evaluate its involvement 
577.1   in the program; 
577.2      (6) a willingness by the district to adopt a long-range 
577.3   plan for arts education in the district; and 
577.4      (7) location of the district or group of districts to 
577.5   assure representation of urban, suburban, and rural districts 
577.6   and distribution of sites throughout the state. 
577.7      Sec. 3.  Minnesota Statutes 1996, section 124C.08, 
577.8   subdivision 3, is amended to read: 
577.9      Subd. 3.  [PROGRAM ACCOUNTS.] A district receiving funds 
577.10  shall must maintain a separate account for the receipt and 
577.11  disbursement of all funds relating to the program.  The funds 
577.12  shall must be spent only for the purpose of arts education 
577.13  programs, including teacher release time. 
577.14     Sec. 4.  Minnesota Statutes 1996, section 124C.09, is 
577.15  amended to read: 
577.16     124C.09 [MATERIALS, TRAINING, AND ASSISTANCE.] 
577.17     The Lola and Rudy Perpich Minnesota center for arts 
577.18  education, in cooperation with the Minnesota alliance for arts 
577.19  in education and the Minnesota state arts board shall must 
577.20  provide materials, training, and assistance to the arts 
577.21  education committees in the school districts.  The center may 
577.22  contract with the Minnesota alliance for arts in education for 
577.23  its involvement in providing services, including staff 
577.24  assistance, to the program. 
577.25     Sec. 5.  Minnesota Statutes 1997 Supplement, section 
577.26  129C.10, subdivision 3, is amended to read: 
577.27     Subd. 3.  [POWERS AND DUTIES OF BOARD.] (a) The board has 
577.28  the powers necessary for the care, management, and control of 
577.29  the Lola and Rudy Perpich Minnesota center for arts education 
577.30  and all its real and personal property.  The powers shall 
577.31  include, but are not limited to, those listed in this 
577.32  subdivision. 
577.33     (b) The board may employ and discharge necessary employees, 
577.34  and contract for other services to ensure the efficient 
577.35  operation of the center for arts education. 
577.36     (c) The board may receive and award grants.  The board may 
578.1   establish a charitable foundation and accept, in trust or 
578.2   otherwise, any gift, grant, bequest, or devise for educational 
578.3   purposes and hold, manage, invest, and dispose of them and the 
578.4   proceeds and income of them according to the terms and 
578.5   conditions of the gift, grant, bequest, or devise and its 
578.6   acceptance.  The board shall must adopt internal procedures to 
578.7   administer and monitor aids and grants. 
578.8      (d) The board may establish or coordinate evening, 
578.9   continuing education, extension, and summer programs for 
578.10  teachers and pupils. 
578.11     (e) The board may identify pupils who have artistic talent, 
578.12  either demonstrated or potential, in dance, literary arts, media 
578.13  arts, music, theater, and visual arts, or in more than one art 
578.14  form. 
578.15     (f) The board shall must educate pupils with artistic 
578.16  talent by providing:  
578.17     (1) an interdisciplinary academic and arts program for 
578.18  pupils in the 11th and 12th grades.  The total number of pupils 
578.19  accepted under this clause and clause (2) shall not exceed 300; 
578.20     (2) additional instruction to pupils for a 13th grade. 
578.21  Pupils eligible for this instruction are those enrolled in 12th 
578.22  grade who need extra instruction and who apply to the board, or 
578.23  pupils enrolled in the 12th grade who do not meet learner 
578.24  outcomes established by the board; 
578.25     (3) intensive arts seminars for one or two weeks for pupils 
578.26  in grades 9 to 12; 
578.27     (4) summer arts institutes for pupils in grades 9 to 12; 
578.28     (5) artist mentor and extension programs in regional sites; 
578.29  and 
578.30     (6) teacher education programs for indirect curriculum 
578.31  delivery. 
578.32     (g) The board may determine the location for the Lola and 
578.33  Rudy Perpich Minnesota center for arts education and any 
578.34  additional facilities related to the center, including the 
578.35  authority to lease a temporary facility. 
578.36     (h) The board must plan for the enrollment of pupils on an 
579.1   equal basis from each congressional district.  
579.2      (i) The board may establish task forces as needed to advise 
579.3   the board on policies and issues.  The task forces expire as 
579.4   provided in section 15.059, subdivision 6.  
579.5      (j) The board may request the commissioner of children, 
579.6   families, and learning for assistance and services. 
579.7      (k) The board may enter into contracts with other public 
579.8   and private agencies and institutions for residential and 
579.9   building maintenance services if it determines that these 
579.10  services could be provided more efficiently and less expensively 
579.11  by a contractor than by the board itself.  The board may also 
579.12  enter into contracts with public or private agencies and 
579.13  institutions, school districts or combinations of school 
579.14  districts, or service cooperatives to provide supplemental 
579.15  educational instruction and services. 
579.16     (l) The board may provide or contract for services and 
579.17  programs by and for the center for arts education, including a 
579.18  store, operating in connection with the center; theatrical 
579.19  events; and other programs and services that, in the 
579.20  determination of the board, serve the purposes of the center. 
579.21     (m) The board may provide for transportation of pupils to 
579.22  and from the center for arts education for all or part of the 
579.23  school year, as the board considers advisable and subject to its 
579.24  rules.  Notwithstanding any other law to the contrary, the board 
579.25  may charge a reasonable fee for transportation of pupils.  Every 
579.26  driver providing transportation of pupils under this paragraph 
579.27  must possess all qualifications required by the state board of 
579.28  education.  The board may contract for furnishing authorized 
579.29  transportation under rules established by the commissioner of 
579.30  children, families, and learning and may purchase and furnish 
579.31  gasoline to a contract carrier for use in the performance of a 
579.32  contract with the board for transportation of pupils to and from 
579.33  the center for arts education.  When transportation is provided, 
579.34  scheduling of routes, establishment of the location of bus 
579.35  stops, the manner and method of transportation, the control and 
579.36  discipline of pupils, and any other related matter is within the 
580.1   sole discretion, control, and management of the board. 
580.2      (n) The board may provide room and board for its pupils.  
580.3   If the board provides room and board, it shall charge a 
580.4   reasonable fee for the room and board.  The fee is not subject 
580.5   to chapter 14 and is not a prohibited fee according to sections 
580.6   120.71 to 120.76. 
580.7      (o) The board may establish and set fees for services and 
580.8   programs.  If the board sets fees not authorized or prohibited 
580.9   by the Minnesota public school fee law, it may do so without 
580.10  complying with the requirements of section 120.75, subdivision 1.
580.11     (p) The board may apply for all competitive grants 
580.12  administered by agencies of the state and other government or 
580.13  nongovernment sources. 
580.14     Sec. 6.  Minnesota Statutes 1996, section 129C.10, 
580.15  subdivision 3a, is amended to read: 
580.16     Subd. 3a.  [CENTER ACCOUNT.] There is established in the 
580.17  state treasury A center for arts education account is 
580.18  established in the special revenue fund in the state treasury.  
580.19  All money collected by the board, including rental income, shall 
580.20  must be deposited in the account.  Money in the account, 
580.21  including interest earned, is appropriated to the board for the 
580.22  operation of its services and programs. 
580.23     Sec. 7.  Minnesota Statutes 1996, section 129C.10, 
580.24  subdivision 3b, is amended to read: 
580.25     Subd. 3b.  [APPEAL.] A parent who disagrees with a board 
580.26  action that adversely affects the academic program of an 
580.27  enrolled pupil may appeal the board's action to the commissioner 
580.28  of children, families, and learning within 30 days of the 
580.29  board's action.  The decision of the commissioner shall be 
580.30  binding on the board.  The board shall must inform each pupil 
580.31  and parent at the time of enrolling of a parent's right to 
580.32  appeal a board action affecting the pupil's academic program. 
580.33     Sec. 8.  Minnesota Statutes 1996, section 129C.10, 
580.34  subdivision 4, is amended to read: 
580.35     Subd. 4.  [EMPLOYEES.] (a)(1) The board shall must appoint 
580.36  a director of the center for arts education who shall serve in 
581.1   the unclassified service. 
581.2      (2) The board shall must employ, upon recommendation of the 
581.3   director, a coordinator of resource programs who shall serve in 
581.4   the unclassified service. 
581.5      (3) The board shall must employ, upon recommendation of the 
581.6   director, up to six department chairs who shall serve in the 
581.7   unclassified service.  The chairs shall be licensed teachers 
581.8   unless no licensure exists for the subject area or discipline 
581.9   for which the chair is hired. 
581.10     (4) The board may employ other necessary employees, upon 
581.11  recommendation of the director. 
581.12     (5) The board shall must employ, upon recommendation of the 
581.13  director, an executive secretary for the director, who shall 
581.14  serve in the unclassified service. 
581.15     (b) The employees hired under this subdivision and other 
581.16  necessary employees hired by the board shall be state employees 
581.17  in the executive branch. 
581.18     Sec. 9.  Minnesota Statutes 1996, section 129C.10, 
581.19  subdivision 6, is amended to read: 
581.20     Subd. 6.  [PUBLIC POST-SECONDARY INSTITUTIONS; PROVIDING 
581.21  SPACE.] Public post-secondary institutions shall must provide 
581.22  space for programs offered by the Lola and Rudy Perpich 
581.23  Minnesota center for arts education at no cost or reasonable 
581.24  cost to the center to the extent that space is available at the 
581.25  public post-secondary institutions. 
581.26     Sec. 10.  Minnesota Statutes 1996, section 129C.15, is 
581.27  amended to read: 
581.28     129C.15 [RESOURCE, MAGNET, AND OUTREACH PROGRAMS.] 
581.29     Subdivision 1.  [RESOURCE AND OUTREACH.] The center 
581.30  shall must offer resource and outreach programs and services 
581.31  statewide aimed at the enhancement of arts education 
581.32  opportunities for pupils in elementary and secondary school.  
581.33  The programs and services shall must include: 
581.34     (1) developing and demonstrating exemplary curriculum, 
581.35  instructional practices, and assessment; 
581.36     (2) disseminating information; and 
582.1      (3) providing programs for pupils and teachers that develop 
582.2   technical and creative skills in art forms that are 
582.3   underrepresented and in geographic regions that are underserved. 
582.4      Subd. 2.  [MAGNET PROGRAMS.] The center shall must identify 
582.5   at least one school district in each congressional district with 
582.6   interest and the potential to offer magnet arts programs using 
582.7   the curriculum developed by the Lola and Rudy Perpich Minnesota 
582.8   center for arts education. 
582.9      Subd. 3.  [CENTER RESPONSIBILITIES.] The center shall must: 
582.10     (1) provide information and technical services to arts 
582.11  teachers, professional arts organizations, school districts, and 
582.12  the department of children, families, and learning; 
582.13     (2) gather and conduct research in arts education; 
582.14     (3) design and promote arts education opportunities for all 
582.15  Minnesota pupils in elementary and secondary schools; and 
582.16     (4) serve as liaison for the department of children, 
582.17  families, and learning to national organizations for arts 
582.18  education.  
582.19     Sec. 11.  [INSTRUCTION TO REVISOR.] 
582.20     The revisor of statutes shall renumber each section of 
582.21  Minnesota Statutes listed in column A with the number listed in 
582.22  column B.  The revisor shall also make necessary cross-reference 
582.23  changes consistent with the renumbering. 
582.24        Column A                        Column B 
582.25        124C.09                         129C.20
582.26        124C.07                         129C.25
582.27        124C.08                         129C.26
582.28                             ARTICLE 11 
582.29                         GENERAL PROVISIONS 
582.30     Section 1.  [BONDS AND CERTIFICATES.] 
582.31     A debt obligation authorized and issued by a repealed 
582.32  section in this act must be paid for and retired according to 
582.33  the section authorizing the debt obligation and the terms of the 
582.34  obligation and bond indentures and trust agreements. 
582.35     Sec. 2.  [REPEALER.] 
582.36     Minnesota Statutes 1996, section 127.01, is repealed. 
583.1      Sec. 3.  [REVISOR INSTRUCTION.] 
583.2      (a) If a provision of a section of Minnesota Statutes 
583.3   amended by this act is amended by the 1998 regular session, the 
583.4   revisor shall codify the amendment consistent with the 
583.5   recodification of the affected section by this act, 
583.6   notwithstanding any law to the contrary. 
583.7      (b) In the next and subsequent editions of Minnesota 
583.8   Statutes and Minnesota Rules, the revisor shall correct all 
583.9   cross-references to sections renumbered, recodified, or repealed 
583.10  by this act. 
583.11     Sec. 4.  [EFFECTIVE DATE.] 
583.12     This act is effective July 1, 1998.