1.1                          A bill for an act 
  1.2             relating to general education; special programs; 
  1.3             lifework development; education organization and 
  1.4             cooperation; education excellence; nutrition and other 
  1.5             education programs; nonfunding education policy 
  1.6             issues; libraries; technology; state agencies; making 
  1.7             conforming technical changes; appropriating money; 
  1.8             amending Minnesota Statutes 1996, sections 12.21, 
  1.9             subdivision 3; 120.0111; 120.062, subdivisions 3, 6, 
  1.10            7, 9, and 11; 120.064, subdivisions 3, 8, 10, 20a, and 
  1.11            by adding a subdivision; 120.101, subdivision 5; 
  1.12            120.1701, subdivision 3; 120.181; 121.11, subdivisions 
  1.13            7c and 9; 121.15, subdivisions 6, 7, and by adding 
  1.14            subdivisions; 121.602, subdivisions 1, 2, and 4; 
  1.15            121.611; 121.615, subdivisions 2, 3, 5, 6, 7, 8, 9, 
  1.16            and 10; 121.703, subdivision 3; 121.904, subdivision 
  1.17            4a; 121.932, by adding a subdivision; 123.35, 
  1.18            subdivision 8, and by adding a subdivision; 123.3514, 
  1.19            subdivisions 4, 4a, 4e, 6, 6c, 8, and by adding 
  1.20            subdivisions; 123.39, subdivision 6; 123.70, 
  1.21            subdivisions 5, 7, and 10; 123.799, subdivision 1; 
  1.22            123.7991, subdivisions 1 and 2; 123.951; 123.972, 
  1.23            subdivision 5; 124.08; 124.17, subdivisions 1, 1d, 4, 
  1.24            and by adding a subdivision; 124.193; 124.195, 
  1.25            subdivisions 2, 7, 10, 11, and by adding a 
  1.26            subdivision; 124.225, subdivisions 1, 13, 14, 15, 16, 
  1.27            and 17; 124.226, subdivision 10; 124.2445; 124.2455; 
  1.28            124.248, subdivision 4, and by adding a subdivision; 
  1.29            124.26, subdivision 1b; 124.2613, subdivisions 3, 4, 
  1.30            and 6; 124.2711, subdivision 2a; 124.2727, subdivision 
  1.31            6d; 124.273, subdivisions 1d, 1e, 1f, and 1g; 124.276, 
  1.32            subdivision 3, and by adding a subdivision; 124.312, 
  1.33            subdivisions 4 and 5; 124.313; 124.314, subdivisions 1 
  1.34            and 2; 124.3201, subdivisions 1, 2, 3, and 4; 124.323, 
  1.35            subdivisions 1 and 2; 124.42, subdivision 4; 124.431, 
  1.36            subdivision 11; 124.45; 124.48, subdivision 3; 
  1.37            124.481; 124.574, subdivisions 1, 2d, 2f, 5, 6, and 9; 
  1.38            124.83, subdivisions 1 and 2; 124.86, subdivision 2, 
  1.39            and by adding a subdivision; 124.91, subdivisions 1 
  1.40            and 5; 124.912, subdivisions 1, 2, 3, and 6; 124.916, 
  1.41            subdivisions 1, 2, and 3; 124.918, subdivision 6, and 
  1.42            by adding a subdivision; 124.95, subdivision 2; 
  1.43            124A.02, subdivision 21; 124A.03, subdivisions 1c, 1f, 
  1.44            1g, and 3c; 124A.22, subdivisions 2, 3, 8a, 10, 11, 
  1.45            13, 13c, 13d, and by adding a subdivision; 124A.225, 
  1.46            subdivision 1; 124A.23, subdivisions 1, 2, 3, and 5; 
  2.1             124A.26; 124A.28; 124C.45, subdivision 1a; 124C.46, 
  2.2             subdivisions 1 and 2; 124C.498, subdivisions 1, 2, and 
  2.3             3; 125.05, subdivisions 1c and 2; 126.036; 126.037, 
  2.4             subdivision 1; 126.113; 126.22, subdivisions 2, 3, and 
  2.5             3a; 126.23, subdivision 1; 126.531, subdivision 3; 
  2.6             127.26; 127.27, subdivisions 5, 6, 7, 8, 10, and by 
  2.7             adding a subdivision; 127.281; 127.29; 127.30, 
  2.8             subdivisions 1, 2, 3, and by adding a subdivision; 
  2.9             127.31, subdivisions 2, 7, 8, 13, 14, and 15; 127.311; 
  2.10            127.32; 127.33; 127.36; 127.37; 127.38; 128A.02, by 
  2.11            adding a subdivision; 128C.02, subdivision 2, and by 
  2.12            adding a subdivision; 128C.12, subdivision 1; 129C.10, 
  2.13            subdivision 3; 134.155, subdivisions 2 and 3; 134.34, 
  2.14            subdivision 4; 136D.72, subdivisions 2 and 3; 144.29; 
  2.15            169.01, subdivision 6; 169.21, subdivision 2; 169.435, 
  2.16            subdivision 2; 169.443, subdivision 3; 169.444, 
  2.17            subdivisions 2, 5, 6, 7, and by adding a subdivision; 
  2.18            169.447, subdivision 6; 169.4501, subdivisions 1 and 
  2.19            2; 169.4502, subdivisions 2, 7, 9, 11, and by adding 
  2.20            subdivisions; 169.4503, subdivisions 1, 2, 10, 13, 14, 
  2.21            17, 19, 23, 24, and by adding a subdivision; 169.4504, 
  2.22            subdivision 1, and by adding a subdivision; 169.452; 
  2.23            171.321, subdivision 3; 171.3215, subdivision 4; 
  2.24            179A.03, subdivision 19; 245.493, subdivision 1; 
  2.25            245.91, subdivision 2; 260A.02, subdivision 3; and 
  2.26            268.665, subdivision 2; Laws 1991, chapter 265, 
  2.27            article 1, section 30, as amended; Laws 1993, chapter 
  2.28            146, article 5, section 20; Laws 1994, chapter 647, 
  2.29            article 7, section 18, subdivisions 2 and 3; Laws 
  2.30            1995, First Special Session chapter 3, articles 1, 
  2.31            section 56; 2, section 52; 3, section 11, subdivisions 
  2.32            1, 2, and 5; 4, section 29, subdivision 8; 8, section 
  2.33            25, subdivision 12; 11, section 21, subdivision 3; and 
  2.34            12, section 7, subdivision 1; Laws 1996, chapters 412, 
  2.35            article 4, section 34, subdivision 4; and 461, section 
  2.36            3, subdivision 2; proposing coding for new law in 
  2.37            Minnesota Statutes, chapters 120; 121; 124; 124A; 126; 
  2.38            127; 128C; 135A; and 290; repealing Minnesota Statutes 
  2.39            1996, sections 120.105; 120.65; 121.11, subdivision 8; 
  2.40            121.602, subdivisions 3 and 5; 121.904, subdivisions 
  2.41            4c and 4d; 121.912, subdivision 7; 124.155; 124.223; 
  2.42            124.225, subdivisions 3a, 7a, 7b, 7d, 7e, 8a, and 8k; 
  2.43            124.226; 124.2728; 124.276, subdivision 2; 124.312, 
  2.44            subdivisions 4 and 5; 124.3201, subdivisions 2a and 
  2.45            2b; 124.912, subdivisions 2 and 3; 124A.02, 
  2.46            subdivision 24; 124A.22, subdivisions 4, 4a, and 4b; 
  2.47            124A.26, subdivisions 1a, 2, 3, 4, and 5; 127.31, 
  2.48            subdivision 6; 128B.10; 134.34, subdivision 4a; 
  2.49            134.46; 169.4502, subdivision 6; 169.4503, 
  2.50            subdivisions 3, 8, 9, 11, 12, and 22; and 169.454, 
  2.51            subdivision 11. 
  2.52  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  2.53                             ARTICLE 1
  2.54                         GENERAL EDUCATION
  2.55     Section 1.  Minnesota Statutes 1996, section 120.062, 
  2.56  subdivision 9, is amended to read: 
  2.57     Subd. 9.  [TRANSPORTATION.] (a) If requested by the parent 
  2.58  of a pupil, the nonresident district shall provide 
  2.59  transportation within the district.  The state shall pay 
  2.60  transportation aid to the district according to section 124.225. 
  2.61     The resident district is not required to provide or pay for 
  3.1   transportation between the pupil's residence and the border of 
  3.2   the nonresident district.  A parent may be reimbursed by the 
  3.3   nonresident district for the costs of transportation from the 
  3.4   pupil's residence to the border of the nonresident district if 
  3.5   the pupil is from a family whose income is at or below the 
  3.6   poverty level, as determined by the federal government.  The 
  3.7   reimbursement may not exceed the pupil's actual cost of 
  3.8   transportation or 15 cents per mile traveled, whichever is 
  3.9   less.  Reimbursement may not be paid for more than 250 miles per 
  3.10  week.  
  3.11     At the time a nonresident district notifies a parent or 
  3.12  guardian that an application has been accepted under subdivision 
  3.13  5 or 6, the nonresident district must provide the parent or 
  3.14  guardian with the following information regarding the 
  3.15  transportation of nonresident pupils under this section: 123.39, 
  3.16  subdivision 6. 
  3.17     (1) a nonresident district may transport a pupil within the 
  3.18  pupil's resident district under this section only with the 
  3.19  approval of the resident district; and 
  3.20     (2) a parent or guardian of a pupil attending a nonresident 
  3.21  district under this section may appeal under section 123.39, 
  3.22  subdivision 6, the refusal of the resident district to allow the 
  3.23  nonresident district to transport the pupil within the resident 
  3.24  district. 
  3.25     (b) Notwithstanding paragraph (a) and section 124.225, 
  3.26  subdivision 8l, transportation provided by a nonresident 
  3.27  district between home and school for a pupil attending school 
  3.28  under this section is authorized for nonregular transportation 
  3.29  revenue under section 124.225, if the following criteria are met:
  3.30     (1) the school that the pupil was attending prior to 
  3.31  enrolling in the nonresident district under this section was 
  3.32  closed; 
  3.33     (2) the distance from the closed school to the next nearest 
  3.34  school in the district that the student could attend is at least 
  3.35  20 miles; 
  3.36     (3) the pupil's residence is at least 20 miles from any 
  4.1   school that the pupil could attend in the resident district; and 
  4.2      (4) the pupil's residence is closer to the school of 
  4.3   attendance in the nonresident district than to any school the 
  4.4   pupil could attend in the resident district. 
  4.5      Sec. 2.  Minnesota Statutes 1996, section 121.904, 
  4.6   subdivision 4a, is amended to read: 
  4.7      Subd. 4a.  [LEVY RECOGNITION.] (a) "School district tax 
  4.8   settlement revenue" means the current, delinquent, and 
  4.9   manufactured home property tax receipts collected by the county 
  4.10  and distributed to the school district, including distributions 
  4.11  made pursuant to section 279.37, subdivision 7, and excluding 
  4.12  the amount levied pursuant to section 124.914, subdivision 1. 
  4.13     (b) In June of each year, the school district shall 
  4.14  recognize as revenue, in the fund for which the levy was made, 
  4.15  the lesser of:  
  4.16     (1) the May, June, and July school district tax settlement 
  4.17  revenue received in that calendar year; or 
  4.18     (2) the sum of:  the state aids and credits enumerated in 
  4.19  section 124.155, subdivision 2, which are for the fiscal year 
  4.20  payable in that fiscal year plus an amount equal to the levy 
  4.21  recognized as revenue in June of the prior year plus 31 percent 
  4.22  for fiscal year 1996 and thereafter of the amount of the levy 
  4.23  certified in the prior calendar year according to section 
  4.24  124A.03, subdivision 2, plus or minus auditor's adjustments, not 
  4.25  including levy portions that are assumed by the state; or 
  4.26     (3) 18.1 percent for fiscal year 1996, the percent 
  4.27  determined under Laws 1996, chapter 461, section 3, for fiscal 
  4.28  year 1997 and that same percent thereafter of the amount of the 
  4.29  levy certified in the prior calendar year, plus or minus 
  4.30  auditor's adjustments, not including levy portions that are 
  4.31  assumed by the state, which remains after subtracting, by fund, 
  4.32  the amounts levied for the following purposes:  
  4.33     (i) reducing or eliminating projected deficits in the 
  4.34  reserved fund balance accounts for unemployment insurance and 
  4.35  bus purchases; 
  4.36     (ii) statutory operating debt pursuant to section 124.914, 
  5.1   subdivision 1; 
  5.2      (iii) retirement and severance pay pursuant to sections 
  5.3   122.531, subdivision 9, 124.2725, subdivision 15, 124.4945, 
  5.4   124.912, subdivision 1, and 124.916, subdivision 3, and Laws 
  5.5   1975, chapter 261, section 4; 
  5.6      (iv) amounts levied for bonds issued and interest thereon, 
  5.7   amounts levied for debt service loans and capital loans, amounts 
  5.8   levied for down payments under section 124.82, subdivision 3; 
  5.9   and 
  5.10     (v) amounts levied under section 124.755.  
  5.11     Notwithstanding the foregoing, the levy recognition 
  5.12  percentage for the referendum levy certified according to 
  5.13  section 124A.03, subdivision 2, is 31 percent. 
  5.14     (i) 31 percent of the referendum levy certified in the 
  5.15  prior calendar year according to section 124A.03, subdivision 2; 
  5.16  plus 
  5.17     (ii) the entire amount of the levy certified in the prior 
  5.18  calendar year according to sections 124.912, subdivisions 1, 
  5.19  paragraph (2), 2, and 3; 124.315, subdivision 4; 124.916, 
  5.20  subdivisions 1, 2, and 3, paragraphs (4), (5), and (6); and 
  5.21  124.918, subdivision 6. 
  5.22     (c) In July of each year, the school district shall 
  5.23  recognize as revenue that portion of the school district tax 
  5.24  settlement revenue received in that calendar year and not 
  5.25  recognized as revenue for the previous fiscal year pursuant to 
  5.26  clause (b).  
  5.27     (d) All other school district tax settlement revenue shall 
  5.28  be recognized as revenue in the fiscal year of the settlement. 
  5.29  Portions of the school district levy assumed by the state, 
  5.30  including prior year adjustments and the amount to fund the 
  5.31  school portion of the reimbursement made pursuant to section 
  5.32  273.425, shall be recognized as revenue in the fiscal year 
  5.33  beginning in the calendar year for which the levy is payable. 
  5.34     Sec. 3.  Minnesota Statutes 1996, section 123.3514, is 
  5.35  amended by adding a subdivision to read: 
  5.36     Subd. 3a.  [ALTERNATIVE PUPIL.] "Alternative pupil" means 
  6.1   an 11th or 12th grade student not enrolled in a public school 
  6.2   district and includes students attending nonpublic schools.  An 
  6.3   alternative pupil is considered a pupil for purposes of section 
  6.4   123.3514 only.  An alternative pupil must register with the 
  6.5   commissioner of children, families, and learning before 
  6.6   participating in the post-secondary enrollment options program.  
  6.7   The commissioner shall prescribe the form and manner of the 
  6.8   registration and may request any necessary information from the 
  6.9   alternative pupil. 
  6.10     Sec. 4.  Minnesota Statutes 1996, section 123.3514, 
  6.11  subdivision 4, is amended to read: 
  6.12     Subd. 4.  [AUTHORIZATION; NOTIFICATION.] Notwithstanding 
  6.13  any other law to the contrary, an 11th or 12th grade pupil 
  6.14  enrolled in a public school or an American Indian-controlled 
  6.15  tribal contract or grant school eligible for aid under section 
  6.16  124.86, except a foreign exchange pupil enrolled in a district 
  6.17  under a cultural exchange program, may apply to an eligible 
  6.18  institution, as defined in subdivision 3, to enroll in 
  6.19  nonsectarian courses offered by that post-secondary 
  6.20  institution.  If an institution accepts a secondary pupil for 
  6.21  enrollment under this section, the institution shall send 
  6.22  written notice to the pupil, the pupil's school or school 
  6.23  district, and the commissioner of children, families, and 
  6.24  learning within ten days of acceptance.  The notice shall 
  6.25  indicate the course and hours of enrollment of that pupil.  If 
  6.26  the pupil enrolls in a course for post-secondary credit, the 
  6.27  institution shall notify the pupil about payment in the 
  6.28  customary manner used by the institution. 
  6.29     Sec. 5.  Minnesota Statutes 1996, section 123.3514, 
  6.30  subdivision 4a, is amended to read: 
  6.31     Subd. 4a.  [COUNSELING.] To the extent possible, the school 
  6.32  or school district shall provide counseling services to pupils 
  6.33  and their parents or guardian before the pupils enroll in 
  6.34  courses under this section to ensure that the pupils and their 
  6.35  parents or guardian are fully aware of the risks and possible 
  6.36  consequences of enrolling in post-secondary courses.  The school 
  7.1   or school district shall provide information on the program 
  7.2   including who may enroll, what institutions and courses are 
  7.3   eligible for participation, the decision-making process for 
  7.4   granting academic credits, financial arrangements for tuition, 
  7.5   books and materials, eligibility criteria for transportation 
  7.6   aid, available support services, the need to arrange an 
  7.7   appropriate schedule, consequences of failing or not completing 
  7.8   a course in which the pupil enrolls, the effect of enrolling in 
  7.9   this program on the pupil's ability to complete the required 
  7.10  high school graduation requirements, and the academic and social 
  7.11  responsibilities that must be assumed by the pupils and their 
  7.12  parents or guardian.  The person providing counseling shall 
  7.13  encourage pupils and their parents or guardian to also use 
  7.14  available counseling services at the post-secondary institutions 
  7.15  before the quarter or semester of enrollment to ensure that 
  7.16  anticipated plans are appropriate.  
  7.17     Prior to enrolling in a course, the pupil and the pupil's 
  7.18  parents or guardian must sign a form that must be provided by 
  7.19  the school or school district and may be obtained from a 
  7.20  post-secondary institution stating that they have received the 
  7.21  information specified in this subdivision and that they 
  7.22  understand the responsibilities that must be assumed in 
  7.23  enrolling in this program.  The department of children, 
  7.24  families, and learning shall, upon request, provide technical 
  7.25  assistance to a school or school district in developing 
  7.26  appropriate forms and counseling guidelines. 
  7.27     Sec. 6.  Minnesota Statutes 1996, section 123.3514, 
  7.28  subdivision 4e, is amended to read: 
  7.29     Subd. 4e.  [COURSES ACCORDING TO AGREEMENTS.] An eligible 
  7.30  pupil, according to subdivision 4, may enroll in a nonsectarian 
  7.31  course taught by a secondary teacher or a post-secondary faculty 
  7.32  member and offered at a secondary school, or another location, 
  7.33  according to an agreement between a public school board and the 
  7.34  governing body of an eligible public post-secondary system or an 
  7.35  eligible private post-secondary institution, as defined in 
  7.36  subdivision 3.  All provisions of this section shall apply to a 
  8.1   pupil, public school board, school district, and the governing 
  8.2   body of a post-secondary institution, except as otherwise 
  8.3   provided. 
  8.4      Sec. 7.  Minnesota Statutes 1996, section 123.3514, 
  8.5   subdivision 6, is amended to read: 
  8.6      Subd. 6.  [FINANCIAL ARRANGEMENTS.] For a pupil enrolled in 
  8.7   a course under this section, the department of children, 
  8.8   families, and learning shall make payments according to this 
  8.9   subdivision for courses that were taken for secondary credit.  
  8.10     The department shall not make payments to a school district 
  8.11  or post-secondary institution for a course taken for 
  8.12  post-secondary credit only.  The department shall not make 
  8.13  payments to a post-secondary institution for a course from which 
  8.14  a student officially withdraws during the first 14 days of the 
  8.15  quarter or semester or who has been absent from the 
  8.16  post-secondary institution for the first 15 consecutive school 
  8.17  days of the quarter or semester and is not receiving instruction 
  8.18  in the home or hospital. 
  8.19     A post-secondary institution shall receive the following: 
  8.20     (1) for an institution granting quarter credit, the 
  8.21  reimbursement per credit hour shall be an amount equal to 88 
  8.22  percent of the product of the formula allowance, multiplied by 
  8.23  1.3, and divided by 45; or 
  8.24     (2) for an institution granting semester credit, the 
  8.25  reimbursement per credit hour shall be an amount equal to 88 
  8.26  percent of the product of the general revenue formula allowance, 
  8.27  multiplied by 1.3, and divided by 30. 
  8.28     The department of children, families, and learning shall 
  8.29  pay to each post-secondary institution 100 percent of the amount 
  8.30  in clause (1) or (2) within 30 days of receiving initial 
  8.31  enrollment information each quarter or semester.  If changes in 
  8.32  enrollment occur during a quarter or semester, the change shall 
  8.33  be reported by the post-secondary institution at the time the 
  8.34  enrollment information for the succeeding quarter or semester is 
  8.35  submitted.  At any time the department of children, families, 
  8.36  and learning notifies a post-secondary institution that an 
  9.1   overpayment has been made, the institution shall promptly remit 
  9.2   the amount due.  Notwithstanding the amount of the formula 
  9.3   allowance in section 124A.22, subdivision 2, the commissioner 
  9.4   shall use the amount of the formula allowance minus $300 for 
  9.5   fiscal year 1998 and later fiscal years in determining payments 
  9.6   under this subdivision and subdivision 6b. 
  9.7      Sec. 8.  Minnesota Statutes 1996, section 123.3514, 
  9.8   subdivision 6c, is amended to read: 
  9.9      Subd. 6c.  [FINANCIAL ARRANGEMENTS FOR COURSES PROVIDED 
  9.10  ACCORDING TO AGREEMENTS.] (a) The agreement between a public 
  9.11  school board and the governing body of a public post-secondary 
  9.12  system or private post-secondary institution shall set forth the 
  9.13  payment amounts and arrangements, if any, from the public school 
  9.14  board to the post-secondary institution.  No payments shall be 
  9.15  made by the department of children, families, and learning 
  9.16  according to subdivision 6 or 6b.  For the purpose of computing 
  9.17  state aids for a school district, a pupil enrolled according to 
  9.18  subdivision 4e shall be counted in the average daily membership 
  9.19  of the school district as though the pupil were enrolled in a 
  9.20  secondary course that is not offered in connection with an 
  9.21  agreement.  Nothing in this subdivision shall be construed to 
  9.22  prohibit a public post-secondary system or private 
  9.23  post-secondary institution from receiving additional state 
  9.24  funding that may be available under any other law.  
  9.25     (b) If a course is provided under subdivision 4e, offered 
  9.26  at a secondary school, and taught by a secondary teacher, the 
  9.27  post-secondary system or institution must not require a payment 
  9.28  from the school board that exceeds the cost to the 
  9.29  post-secondary institution that is directly attributable to 
  9.30  providing that course. 
  9.31     Sec. 9.  Minnesota Statutes 1996, section 123.3514, is 
  9.32  amended by adding a subdivision to read: 
  9.33     Subd. 6d.  [ALTERNATIVE PUPILS FINANCIAL ARRANGEMENTS.] For 
  9.34  an alternative pupil enrolled in a course under this section, 
  9.35  the department must make payments to the eligible institution 
  9.36  according to subdivision 6.  The department must not make any 
 10.1   payments to a school district for alternative pupils. 
 10.2      Sec. 10.  Minnesota Statutes 1996, section 123.3514, is 
 10.3   amended by adding a subdivision to read: 
 10.4      Subd. 6e.  [TUITION AT NONPUBLIC SECONDARY INSTITUTION.] A 
 10.5   nonpublic secondary institution must proportionately adjust its 
 10.6   tuition to accurately reflect the time an alternative pupil 
 10.7   spends in post-secondary enrollment courses. 
 10.8      Sec. 11.  Minnesota Statutes 1996, section 123.39, 
 10.9   subdivision 6, is amended to read: 
 10.10     Subd. 6.  For the purposes of this subdivision, a 
 10.11  "nonresident pupil" is a pupil who resides in one district, 
 10.12  defined as the "resident district" and attends school in another 
 10.13  district, defined as the "nonresident district." 
 10.14     If requested, a nonresident district may shall transport a 
 10.15  nonresident pupil within its borders and may transport a 
 10.16  nonresident pupil within the pupil's resident district.  A 
 10.17  nonresident district may not transport a nonresident pupil on a 
 10.18  school district owned or contractor operated school bus within 
 10.19  the pupil's resident district without the approval of the 
 10.20  resident district under section 120.062. 
 10.21     The parent or guardian of a nonresident pupil attending a 
 10.22  nonresident district under section 120.062 may submit a written 
 10.23  request to the resident district asking that the resident 
 10.24  district allow the nonresident district to provide 
 10.25  transportation for the pupil within the pupil's resident 
 10.26  district.  The resident district must approve or disapprove the 
 10.27  request, in writing, within 30 days.  The parent or guardian may 
 10.28  appeal the refusal of the resident district to the commissioner 
 10.29  of children, families, and learning.  The commissioner must act 
 10.30  on the appeal within 30 days.  If a nonresident district decides 
 10.31  to transport a nonresident pupil within the pupil's resident 
 10.32  district, the nonresident district must notify the pupil's 
 10.33  resident district of its decision, in writing, prior to 
 10.34  providing transportation. 
 10.35     Sec. 12.  Minnesota Statutes 1996, section 124.08, is 
 10.36  amended to read: 
 11.1      124.08 [SCHOOL ENDOWMENT FUND, DESIGNATION.] 
 11.2      For the purpose of aid to public schools, a school 
 11.3   endowment fund is established.  
 11.4      The school endowment fund shall consist of the income from 
 11.5   the permanent school fund.  The commissioner of children, 
 11.6   families, and learning may accept for and on behalf of the 
 11.7   permanent school fund a donation of cash, marketable securities, 
 11.8   or other personal property.  A noncash donation, other than a 
 11.9   donation of marketable securities, must be disposed of for cash 
 11.10  as soon as the commissioner can obtain fair market value for the 
 11.11  donation.  Marketable securities may be disposed of at the 
 11.12  discretion of the state board of investment consistent with 
 11.13  sections 11A.16 and 11A.24.  A cash donation and the cash 
 11.14  receipts from a donation disposed of for cash must be credited 
 11.15  immediately to the permanent school fund.  Earnings from 
 11.16  marketable securities are earnings of the permanent school fund. 
 11.17  Notwithstanding section 16A.125, subdivisions 5 and 5a, all 
 11.18  income generated from assets held for and in the permanent 
 11.19  school fund shall be deposited in the fund.  No state agency may 
 11.20  use the revenue for administrative or management purposes. 
 11.21     Sec. 13.  Minnesota Statutes 1996, section 124.17, 
 11.22  subdivision 1, is amended to read: 
 11.23     Subdivision 1.  [PUPIL UNIT.] Pupil units for each resident 
 11.24  pupil in average daily membership shall be counted according to 
 11.25  this subdivision.  
 11.26     (a) A prekindergarten pupil with a disability who is 
 11.27  enrolled in a program approved by the commissioner and has an 
 11.28  individual education plan is counted as the ratio of the number 
 11.29  of hours of assessment and education service to 825 with a 
 11.30  minimum of 0.28, but not more than one. 
 11.31     (b) A prekindergarten pupil who is assessed but determined 
 11.32  not to be handicapped is counted as the ratio of the number of 
 11.33  hours of assessment service to 825.  
 11.34     (c) A kindergarten pupil with a disability who is enrolled 
 11.35  in a program approved by the commissioner is counted as the 
 11.36  ratio of the number of hours of assessment and education 
 12.1   services required in the fiscal year by the pupil's individual 
 12.2   education program plan to 875, but not more than one. 
 12.3      (d) A kindergarten pupil who is not included in paragraph 
 12.4   (c) is counted as .53 of a pupil unit for fiscal year 1995 and 
 12.5   thereafter. 
 12.6      (e) A pupil who is in any of grades 1 to 6 is counted as 
 12.7   1.06 pupil units for fiscal year 1995 1998 and thereafter.  For 
 12.8   fiscal year 1998 and thereafter, a pupil who is in any of grades 
 12.9   1 to 3 is counted as 1.08 pupil units. 
 12.10     (f) For fiscal year 1996 and fiscal year 1997, A pupil who 
 12.11  is in any of grades 7 to 12 is counted as 1.3 pupil units.  For 
 12.12  fiscal year 1998, a pupil who is in any of grades 7 to 12 is 
 12.13  counted as 1.25 pupil units.  For fiscal year 1999 and later 
 12.14  years, a pupil who is in any of grades 7 to 12 is counted as 1.2 
 12.15  pupil units. 
 12.16     (g) For fiscal year 1996 and fiscal year 1997, A pupil who 
 12.17  is in the post-secondary enrollment options program is counted 
 12.18  as 1.3 pupil units.  For fiscal year 1998, a pupil who is in the 
 12.19  post-secondary enrollment options program is counted as 1.25 
 12.20  pupil units.  For fiscal year 1999 and later years, a pupil who 
 12.21  is in the post-secondary enrollment options program is counted 
 12.22  as 1.2 pupil units. 
 12.23     (h) In fiscal year 1998, the pupil units used in computing 
 12.24  a district's general education revenue and referendum revenue 
 12.25  may not be reduced by more than two percent due to the reduction 
 12.26  in the secondary pupil weight from 1.3 as specified in 
 12.27  paragraphs (f) and (g).  In fiscal year 1999 and later years, 
 12.28  the pupil units used in computing a district's general education 
 12.29  revenue and referendum revenue may not be decreased by more than 
 12.30  four percent due to the reduction in the secondary weight from 
 12.31  1.3 as specified in paragraphs (f) and (g). 
 12.32     Sec. 14.  Minnesota Statutes 1996, section 124.17, 
 12.33  subdivision 1d, is amended to read: 
 12.34     Subd. 1d.  [AFDC COMPENSATION REVENUE PUPIL UNITS.] AFDC 
 12.35  Compensation revenue pupil units for fiscal year 1993 1998 and 
 12.36  thereafter must be computed according to this subdivision.  
 13.1      (a) The AFDC compensation revenue concentration percentage 
 13.2   for each building in a district equals the product of 100 times 
 13.3   the ratio of:  
 13.4      (1) the sum of the number of pupils enrolled in the 
 13.5   district from families receiving aid to families with dependent 
 13.6   children according to subdivision 1e building eligible to 
 13.7   receive free lunch plus one-third of the pupils eligible to 
 13.8   receive reduced priced lunch on October 1 of the previous fiscal 
 13.9   year; to 
 13.10     (2) the number of pupils in average daily membership 
 13.11  according to subdivision 1e enrolled in the district the 
 13.12  building on October 1 of the previous fiscal year. 
 13.13     (b) The AFDC compensation revenue pupil weighting factor 
 13.14  for a district building equals the lesser of one or the quotient 
 13.15  obtained by dividing the district's AFDC building's compensation 
 13.16  revenue concentration percentage by 11.5 80.0.  
 13.17     (c) The AFDC compensation revenue pupil units for a 
 13.18  district for fiscal year 1993 and thereafter building equals the 
 13.19  product of:  
 13.20     (1) the sum of the number of pupils enrolled in the 
 13.21  district from families receiving aid to families with dependent 
 13.22  children according to subdivision 1e building eligible to 
 13.23  receive free lunch and one-third of the pupils eligible to 
 13.24  receive reduced priced lunch; times 
 13.25     (2) the AFDC compensation revenue pupil weighting factor 
 13.26  for the district building; times 
 13.27     (3) .67 .59. 
 13.28     The percentages in this subdivision must be based on the 
 13.29  count of individual pupils and not on a building average or 
 13.30  minimum. 
 13.31     Sec. 15.  Minnesota Statutes 1996, section 124.17, 
 13.32  subdivision 4, is amended to read: 
 13.33     Subd. 4.  [LEARNING YEAR PUPIL UNITS.] (a) When a pupil is 
 13.34  enrolled in a learning year program according to under section 
 13.35  121.585, an area learning center according to under sections 
 13.36  124C.45 and 124C.46, or an alternative program approved by the 
 14.1   commissioner, for more than 1,020 hours in a school year for a 
 14.2   secondary student and for, more than 935 hours in a school year 
 14.3   for an elementary student, or more than 425 hours in a school 
 14.4   year for a kindergarten student without a disability, that pupil 
 14.5   may be counted as more than one pupil in average daily 
 14.6   membership.  The amount in excess of one pupil must be 
 14.7   determined by the ratio of the number of hours of instruction 
 14.8   provided to that pupil in excess of:  (i) the greater of 1,020 
 14.9   hours or the number of hours required for a full-time secondary 
 14.10  pupil in the district to 1,020 for a secondary pupil and of; 
 14.11  (ii) the greater of 935 hours or the number of hours required 
 14.12  for a full-time elementary pupil in the district to 935 for an 
 14.13  elementary pupil in grades 1 through 6; and (iii) the greater of 
 14.14  425 hours or the number of hours required for a full-time 
 14.15  kindergarten student without a disability in the district to 425 
 14.16  for a kindergarten student without a disability.  Hours that 
 14.17  occur after the close of the instructional year in June shall be 
 14.18  attributable to the following fiscal year.  A kindergarten 
 14.19  student must not be counted as more than 1.2 pupils in average 
 14.20  daily membership under this subdivision. 
 14.21     (b)(i) To receive general education revenue for a pupil in 
 14.22  an alternative program that has an independent study component, 
 14.23  a school district must meet the requirements in this paragraph.  
 14.24  The school district must develop with the pupil a continual 
 14.25  learning plan for the pupil.  A district must allow a minor 
 14.26  pupil's parent or guardian to participate in developing the 
 14.27  plan, if the parent or guardian wants to participate.  The plan 
 14.28  must identify the learning experiences and expected outcomes 
 14.29  needed for satisfactory credit for the year and for graduation.  
 14.30  The plan must be updated each year.  Each school district that 
 14.31  has a state-approved public alternative program must reserve 
 14.32  revenue in an amount equal to at least 90 percent of the 
 14.33  district average general education revenue per pupil unit less 
 14.34  compensatory revenue per pupil unit times the number of pupil 
 14.35  units generated by students attending a state-approved public 
 14.36  alternative program.  The amount of reserved revenue available 
 15.1   under this subdivision may only be spent for program costs 
 15.2   associated with the state-approved public alternative program.  
 15.3   Compensatory revenue must be allocated according to section 
 15.4   124A.28, subdivision 1a. 
 15.5      (ii) General education revenue for a pupil in an approved 
 15.6   alternative program without an independent study component must 
 15.7   be prorated for a pupil participating for less than a full year, 
 15.8   or its equivalent.  Each school district that has a 
 15.9   state-approved public alternative program must reserve revenue 
 15.10  in an amount equal to at least 90 percent of the district 
 15.11  average general education revenue per pupil unit less 
 15.12  compensatory revenue per pupil unit times the number of pupil 
 15.13  units generated by students attending a state-approved public 
 15.14  alternative program.  The amount of reserved revenue available 
 15.15  under this subdivision may only be spent for program costs 
 15.16  associated with the state-approved public alternative program.  
 15.17  Compensatory revenue must be allocated according to section 
 15.18  124A.28, subdivision 1a.  
 15.19     (iii) General education revenue for a pupil in an approved 
 15.20  alternative program that has an independent study component must 
 15.21  be paid for each hour of teacher contact time and each hour of 
 15.22  independent study time completed toward a credit or graduation 
 15.23  standards necessary for graduation.  Average daily membership 
 15.24  for a pupil shall equal the number of hours of teacher contact 
 15.25  time and independent study time divided by 1,020. 
 15.26     (iv) For an alternative program having an independent study 
 15.27  component, the commissioner shall require a description of the 
 15.28  courses in the program, the kinds of independent study involved, 
 15.29  the expected learning outcomes of the courses, and the means of 
 15.30  measuring student performance against the expected outcomes. 
 15.31     Sec. 16.  Minnesota Statutes 1996, section 124.17, is 
 15.32  amended by adding a subdivision to read: 
 15.33     Subd. 6.  [FREE AND REDUCED PRICED LUNCHES.] The 
 15.34  commissioner shall determine the number of children eligible to 
 15.35  receive either a free or reduced priced lunch on October 1 each 
 15.36  year.  The commissioner may use federal definitions for these 
 16.1   purposes and may adjust these definitions as appropriate.  The 
 16.2   commissioner may adopt reporting guidelines to assure accuracy 
 16.3   of data counts and eligibility.  Districts shall use any 
 16.4   guidelines adopted by the commissioner. 
 16.5      Sec. 17.  Minnesota Statutes 1996, section 124.195, 
 16.6   subdivision 2, is amended to read: 
 16.7      Subd. 2.  [DEFINITIONS.] (a) The term "other district 
 16.8   receipts" means payments by county treasurers pursuant to 
 16.9   section 276.10, apportionments from the school endowment fund 
 16.10  pursuant to section 124.09, apportionments by the county auditor 
 16.11  pursuant to section 124.10, subdivision 2, and payments to 
 16.12  school districts by the commissioner of revenue pursuant to 
 16.13  chapter 298.  
 16.14     (b) The term "cumulative amount guaranteed" means the sum 
 16.15  of the following: 
 16.16     (1) one-third of the final adjustment payment according to 
 16.17  subdivision 6; plus 
 16.18     (2) the product of 
 16.19     (i) the cumulative disbursement percentage shown in 
 16.20  subdivision 3; times 
 16.21     (ii) the sum of 
 16.22     85 90 percent of the estimated aid and credit entitlements 
 16.23  paid according to subdivision 10; plus 
 16.24     100 percent of the entitlements paid according to 
 16.25  subdivisions 8 and 9; plus 
 16.26     the other district receipts; plus 
 16.27     the final adjustment payment according to subdivision 6.  
 16.28     (c) The term "payment date" means the date on which state 
 16.29  payments to school districts are made by the electronic funds 
 16.30  transfer method.  If a payment date falls on a Saturday, a 
 16.31  Sunday, or a weekday which is a legal holiday, the payment shall 
 16.32  be made on the immediately following business day.  The 
 16.33  commissioner of children, families, and learning may make 
 16.34  payments on dates other than those listed in subdivision 3, but 
 16.35  only for portions of payments from any preceding payment dates 
 16.36  which could not be processed by the electronic funds transfer 
 17.1   method due to documented extenuating circumstances. 
 17.2      Sec. 18.  Minnesota Statutes 1996, section 124.195, 
 17.3   subdivision 7, is amended to read: 
 17.4      Subd. 7.  [PAYMENTS TO SCHOOL NONOPERATING FUNDS.] Each 
 17.5   fiscal year state general fund payments for a district 
 17.6   nonoperating fund shall be made at 85 90 percent of the 
 17.7   estimated entitlement during the fiscal year of the entitlement, 
 17.8   unless a higher rate has been established according to section 
 17.9   121.904, subdivision 4d.  This amount shall be paid in 12 equal 
 17.10  monthly installments.  The amount of the actual entitlement, 
 17.11  after adjustment for actual data, minus the payments made during 
 17.12  the fiscal year of the entitlement shall be paid prior to 
 17.13  October 31 of the following school year.  The commissioner may 
 17.14  make advance payments of homestead and agricultural credit aid 
 17.15  for a district's debt service fund earlier than would occur 
 17.16  under the preceding schedule if the district submits evidence 
 17.17  showing a serious cash flow problem in the fund.  The 
 17.18  commissioner may make earlier payments during the year and, if 
 17.19  necessary, increase the percent of the entitlement paid to 
 17.20  reduce the cash flow problem. 
 17.21     Sec. 19.  Minnesota Statutes 1996, section 124.195, 
 17.22  subdivision 10, is amended to read: 
 17.23     Subd. 10.  [AID PAYMENT PERCENTAGE.] Except as provided in 
 17.24  subdivisions 8, 9, and 11, each fiscal year, all education aids 
 17.25  and credits in this chapter and chapters 121, 123, 124A, 124B, 
 17.26  125, 126, 134, and section 273.1392, shall be paid at 90 percent 
 17.27  for districts operating a program under section 121.585 for 
 17.28  grades 1 to 12 for all students in the district and 85 percent 
 17.29  for other districts of the estimated entitlement during the 
 17.30  fiscal year of the entitlement, unless a higher rate has been 
 17.31  established according to section 121.904, subdivision 4d.  
 17.32  Districts operating a program under section 121.585 for grades 1 
 17.33  to 12 for all students in the district shall receive 85 percent 
 17.34  of the estimated entitlement plus an additional amount of 
 17.35  general education aid equal to five percent of the estimated 
 17.36  entitlement.  For all districts,.  The final adjustment payment, 
 18.1   according to subdivision 6, shall be the amount of the actual 
 18.2   entitlement, after adjustment for actual data, minus the 
 18.3   payments made during the fiscal year of the entitlement. 
 18.4      Sec. 20.  Minnesota Statutes 1996, section 124.195, 
 18.5   subdivision 11, is amended to read: 
 18.6      Subd. 11.  [NONPUBLIC AIDS.] The state shall pay aid 
 18.7   according to sections 123.931 to 123.947 for pupils attending 
 18.8   nonpublic schools as follows: 
 18.9      (1) an advance payment by November 30 equal to 85 90 
 18.10  percent of the estimated entitlement for the current fiscal 
 18.11  year; and 
 18.12     (2) a final payment by October 31 of the following fiscal 
 18.13  year, adjusted for actual data.  
 18.14     If a payment advance to meet cash flow needs is requested 
 18.15  by a district and approved by the commissioner, the state shall 
 18.16  pay basic nonpublic pupil transportation aid according to 
 18.17  section 124.225 attributable to pupils attending nonpublic 
 18.18  schools by October 31. 
 18.19     Sec. 21.  Minnesota Statutes 1996, section 124.225, 
 18.20  subdivision 1, is amended to read: 
 18.21     Subdivision 1.  [DEFINITIONS.] For purposes of this section 
 18.22  and section 124.3201, the terms defined in this subdivision have 
 18.23  the meanings given to them. 
 18.24     (a) "FTE" means a full-time equivalent pupil whose 
 18.25  transportation is authorized for aid purposes by section 124.223.
 18.26     (b) "Authorized cost for regular transportation" 
 18.27  means "Actual expenditure per pupil transported in the regular 
 18.28  and excess transportation categories" means the quotient 
 18.29  obtained by dividing: 
 18.30     (1) the sum of: 
 18.31     (1) (i) all expenditures for transportation in the regular 
 18.32  category, as defined in paragraph (c) (b), clause (1), for which 
 18.33  aid is authorized in section 124.223 and the excess category, as 
 18.34  defined in paragraph (b), clause (2), plus 
 18.35     (2) (ii) an amount equal to one year's depreciation on the 
 18.36  district's school bus fleet and mobile units computed on a 
 19.1   straight line basis at the rate of 15 percent per year for 
 19.2   districts operating a program under section 121.585 for grades 1 
 19.3   to 12 for all students in the district and 12-1/2 percent per 
 19.4   year for other districts of the cost of the fleet, plus 
 19.5      (3) an amount equal to one year's depreciation on district 
 19.6   school buses reconditioned by the department of corrections 
 19.7   computed on a straight line basis at the rate of 33-1/3 percent 
 19.8   per year of the cost to the district of the reconditioning, plus 
 19.9      (4) (iii) an amount equal to one year's depreciation on the 
 19.10  district's type three school buses, as defined in section 
 19.11  169.01, subdivision 6, clause (5), which must be used a majority 
 19.12  of the time for the pupil transportation purposes in sections 
 19.13  124.223 and 124.226, subdivisions 5, 8, and 9, and were 
 19.14  purchased after July 1, 1982, for authorized transportation of 
 19.15  pupils, computed on a straight line basis at the rate of 20 
 19.16  percent per year of the cost of the type three school buses by: 
 19.17     (2) the number of pupils eligible for transportation in the 
 19.18  regular category, as defined in paragraph (b), clause (1), and 
 19.19  the excess category, as defined in paragraph (b), clause (2).  
 19.20     (c) (b) "Transportation category" means a category of 
 19.21  transportation service provided to pupils as follows:  
 19.22     (1) Regular transportation is transportation services 
 19.23  provided during the regular school year under section 124.223, 
 19.24  subdivisions 1 and 2, excluding the following transportation 
 19.25  services provided under section 124.223, subdivision 1:  
 19.26  transportation between schools; transportation to and from 
 19.27  service-learning programs; noon transportation to and from 
 19.28  school for kindergarten pupils attending half-day sessions; 
 19.29  transportation of pupils to and from schools located outside 
 19.30  their normal attendance areas under the provisions of a plan for 
 19.31  desegregation mandated by the state board of education or under 
 19.32  court order; and transportation of elementary pupils to and from 
 19.33  school within a mobility zone.: 
 19.34     (i) transportation to and from school during the regular 
 19.35  school year for resident elementary pupils residing one mile or 
 19.36  more from the public or nonpublic school they attend, and 
 20.1   resident secondary pupils residing two miles or more from the 
 20.2   public or nonpublic school they attend, excluding desegregation 
 20.3   transportation and noon kindergarten transportation; but with 
 20.4   respect to transportation of pupils to and from nonpublic 
 20.5   schools, only to the extent permitted by sections 123.76 to 
 20.6   123.79; 
 20.7      (ii) transportation of resident pupils to and from language 
 20.8   immersion programs; 
 20.9      (iii) transportation of a pupil who is a custodial parent 
 20.10  and that pupil's child between the pupil's home and the child 
 20.11  care provider and between the provider and the school, if the 
 20.12  home and provider are within the attendance area of the school; 
 20.13  and 
 20.14     (iv) transportation to and from or board and lodging in 
 20.15  another district, of resident pupils of a district without a 
 20.16  secondary school. 
 20.17     For the purposes of this paragraph, a district may 
 20.18  designate a licensed day care facility, respite care facility, 
 20.19  the residence of a relative, or the residence of a person chosen 
 20.20  by the pupil's parent or guardian as the home of a pupil for 
 20.21  part or all of the day, if requested by the pupil's parent or 
 20.22  guardian, and if that facility or residence is within the 
 20.23  attendance area of the school the pupil attends. 
 20.24     (2) Nonregular transportation is transportation services 
 20.25  provided under section 124.223, subdivision 1, that are excluded 
 20.26  from the regular category and transportation services provided 
 20.27  under section 124.223, subdivisions 3, 4, 5, 6, 7, 8, 9, and 10. 
 20.28     (3) Excess transportation is transportation to and from 
 20.29  school during the regular school year for secondary pupils 
 20.30  residing at least one mile but less than two miles from the 
 20.31  public school they could attend or from the nonpublic school 
 20.32  actually attended they attend, and transportation to and from 
 20.33  school for pupils residing less than one mile from school who 
 20.34  are transported because of extraordinary traffic, drug, or crime 
 20.35  hazards. 
 20.36     (4) (3) Desegregation transportation is transportation 
 21.1   within and outside of the district during the regular school 
 21.2   year of pupils to and from schools located outside their normal 
 21.3   attendance areas under a plan for desegregation mandated by the 
 21.4   state board or under court order.  
 21.5      (5) Handicapped transportation is transportation provided 
 21.6   under section 124.223, subdivision 4, for pupils with a 
 21.7   disability between home or a respite care facility and school or 
 21.8   other buildings where special instruction required by sections 
 21.9   120.17 and 120.1701 is provided. 
 21.10     (4) "Transportation services for pupils with disabilities" 
 21.11  is: 
 21.12     (i) transportation of pupils with disabilities who cannot 
 21.13  be transported on a regular school bus between home or a respite 
 21.14  care facility and school; 
 21.15     (ii) necessary transportation of pupils with disabilities 
 21.16  from home or from school to other buildings, including centers 
 21.17  such as developmental achievement centers, hospitals, and 
 21.18  treatment centers where special instruction or services required 
 21.19  by sections 120.17 and 120.1701 are provided, within or outside 
 21.20  the district where services are provided; 
 21.21     (iii) necessary transportation for resident pupils with 
 21.22  disabilities required by sections 120.17, subdivision 4a, and 
 21.23  120.1701; 
 21.24     (iv) board and lodging for pupils with disabilities in a 
 21.25  district maintaining special classes; 
 21.26     (v) transportation from one educational facility to another 
 21.27  within the district for resident pupils enrolled on a 
 21.28  shared-time basis in educational programs, and necessary 
 21.29  transportation required by sections 120.17, subdivision 9, and 
 21.30  120.1701, for resident pupils with disabilities who are provided 
 21.31  special instruction and services on a shared-time basis; 
 21.32     (vi) transportation for resident pupils with disabilities 
 21.33  to and from board and lodging facilities when the pupil is 
 21.34  boarded and lodged for educational purposes; and 
 21.35     (vii) services described in clauses (i) to (vi), when 
 21.36  provided for pupils with disabilities in conjunction with a 
 22.1   summer instructional program that relates to the pupil's 
 22.2   individual education plan or in conjunction with a learning year 
 22.3   program established under section 121.585. 
 22.4      (5) "Nonpublic nonregular transportation" is: 
 22.5      (i) transportation from one educational facility to another 
 22.6   within the district for resident pupils enrolled on a 
 22.7   shared-time basis in educational programs, excluding 
 22.8   transportation for nonpublic pupils with disabilities under 
 22.9   clause (4); 
 22.10     (ii) transportation within district boundaries between a 
 22.11  nonpublic school and a public school or a neutral site for 
 22.12  nonpublic school pupils who are provided pupil support services 
 22.13  pursuant to section 123.935; and 
 22.14     (iii) late transportation home from school or between 
 22.15  schools within a district for nonpublic school pupils involved 
 22.16  in after-school activities. 
 22.17     (d) (c) "Mobile unit" means a vehicle or trailer designed 
 22.18  to provide facilities for educational programs and services, 
 22.19  including diagnostic testing, guidance and counseling services, 
 22.20  and health services.  A mobile unit located off nonpublic school 
 22.21  premises is a neutral site as defined in section 123.932, 
 22.22  subdivision 9. 
 22.23     (e) "Current year" means the school year for which aid will 
 22.24  be paid.  
 22.25     (f) "Base year" means the second school year preceding the 
 22.26  school year for which aid will be paid.  
 22.27     (g) "Base cost" means the ratio of: 
 22.28     (1) the sum of the authorized cost in the base year for 
 22.29  regular transportation as defined in paragraph (b) plus the 
 22.30  actual cost in the base year for excess transportation as 
 22.31  defined in paragraph (c); 
 22.32     (2) to the sum of the number of weighted FTE's in the 
 22.33  regular and excess categories in the base year. 
 22.34     (h) "Pupil weighting factor" for the excess transportation 
 22.35  category for a school district means the lesser of one, or the 
 22.36  result of the following computation: 
 23.1      (1) Divide the square mile area of the school district by 
 23.2   the number of FTE's in the regular and excess categories in the 
 23.3   base year. 
 23.4      (2) Raise the result in clause (1) to the one-fifth power. 
 23.5      (3) Divide four-tenths by the result in clause (2). 
 23.6      The pupil weighting factor for the regular transportation 
 23.7   category is one.  
 23.8      (i) "Weighted FTE's"  means the number of FTE's in each 
 23.9   transportation category multiplied by the pupil weighting factor 
 23.10  for that category. 
 23.11     (j) "Sparsity index" for a school district means the 
 23.12  greater of .005 or the ratio of the square mile area of the 
 23.13  school district to the sum of the number of weighted FTE's by 
 23.14  the district in the regular and excess categories in the base 
 23.15  year. 
 23.16     (k) "Density index" for a school district means the greater 
 23.17  of one or the result obtained by subtracting the product of the 
 23.18  district's sparsity index times 20 from two. 
 23.19     (l) "Contract transportation index" for a school district 
 23.20  means the greater of one or the result of the following 
 23.21  computation: 
 23.22     (1) Multiply the district's sparsity index by 20. 
 23.23     (2) Select the lesser of one or the result in clause (1). 
 23.24     (3) Multiply the district's percentage of regular FTE's in 
 23.25  the current year using vehicles that are not owned by the school 
 23.26  district by the result in clause (2). 
 23.27     (m) "Adjusted predicted base cost" means the predicted base 
 23.28  cost as computed in subdivision 3a as adjusted under subdivision 
 23.29  7a. 
 23.30     (n) "Regular transportation allowance" means the adjusted 
 23.31  predicted base cost, inflated and adjusted under subdivision 7b. 
 23.32     Sec. 22.  Minnesota Statutes 1996, section 124.225, 
 23.33  subdivision 13, is amended to read: 
 23.34     Subd. 13.  [TARGETED NEEDS TRANSPORTATION REVENUE.] A 
 23.35  district's targeted needs transportation revenue for the 
 23.36  1996-1997 and later 1997-1998 school years equals the sum of the 
 24.1   special programs transportation revenue according to subdivision 
 24.2   14, the integration transportation revenue according to 
 24.3   subdivision 15, and the nonpublic pupil transportation revenue 
 24.4   aid according to subdivision 16. 
 24.5      Sec. 23.  Minnesota Statutes 1996, section 124.225, 
 24.6   subdivision 14, is amended to read: 
 24.7      Subd. 14.  [SPECIAL PROGRAMS TRANSPORTATION REVENUE.] A 
 24.8   district's special programs transportation revenue for the 
 24.9   1996-1997 and later 1997-1998 school years equals the sum of: 
 24.10     (a) the district's actual cost in the base year for 
 24.11  transportation services for children with disabilities under 
 24.12  section 124.223, subdivisions 4, 5, 7, and 8 subdivision 1, 
 24.13  paragraph (b), clause (4), times the ratio of the district's 
 24.14  average daily membership for the current school year to the 
 24.15  district's average daily membership for the base year; plus 
 24.16     (b) the greater of zero or 80 percent of the difference 
 24.17  between: 
 24.18     (1) the district's actual cost in the current year for 
 24.19  transportation services for children with disabilities under 
 24.20  section 124.223, subdivisions 4, 5, 7, and 8 subdivision 1, 
 24.21  paragraph (b), clause (4); and 
 24.22     (2) the amount computed in paragraph (a). 
 24.23     Sec. 24.  Minnesota Statutes 1996, section 124.225, 
 24.24  subdivision 15, is amended to read: 
 24.25     Subd. 15.  [INTEGRATION TRANSPORTATION REVENUE.] A 
 24.26  district's integration transportation revenue for the 1996-1997 
 24.27  and later 1997-1998 school years equals the following amounts: 
 24.28     (a) for independent school district No. 709, Duluth, $4 
 24.29  times the actual pupil units for the school year; 
 24.30     (b) for independent school district No. 625, St. Paul, $73 
 24.31  times the actual pupil units for the school year; and 
 24.32     (c) for special school district No. 1, Minneapolis, $158 
 24.33  times the actual pupil units for the school year. 
 24.34     Sec. 25.  Minnesota Statutes 1996, section 124.225, 
 24.35  subdivision 16, is amended to read: 
 24.36     Subd. 16.  [NONPUBLIC PUPIL TRANSPORTATION REVENUE AID.] 
 25.1   (a) A district's nonpublic pupil transportation revenue aid for 
 25.2   the 1996-1997 and later school years for transportation services 
 25.3   for nonpublic school pupils according to sections 123.39, 123.76 
 25.4   to 123.78, 124.223, and 124.226 this section, equals the sum of 
 25.5   the amounts computed in paragraphs (b) and (c).  This revenue 
 25.6   aid does not limit the obligation to transport pupils under 
 25.7   sections 123.76 to 123.79. 
 25.8      (b) For regular and excess transportation according to 
 25.9   section 124.225, subdivision 1, paragraph (c) (b), clauses (1) 
 25.10  and (3) (2), an amount equal to the product of: 
 25.11     (1) the district's actual expenditure per pupil transported 
 25.12  in the regular and excess transportation categories during the 
 25.13  second preceding school year; times 
 25.14     (2) the number of nonpublic school pupils residing in the 
 25.15  district who receive regular or excess transportation service or 
 25.16  reimbursement for the current school year; times 
 25.17     (3) the ratio of the formula allowance pursuant to section 
 25.18  124A.22, subdivision 2, for the current school year to the 
 25.19  formula allowance pursuant to section 124A.22, subdivision 2, 
 25.20  for the second preceding school year. 
 25.21     (c) For nonpublic nonregular transportation according to 
 25.22  section 124.225, subdivision 1, paragraph (c) (b), 
 25.23  clause (2) (5), excluding transportation services for children 
 25.24  with disabilities under section 124.223, subdivisions 4, 5, 7, 
 25.25  and 8, and late activity transportation according to section 
 25.26  124.226, subdivision 9, an amount equal to the product of: 
 25.27     (1) the district's actual expenditure for nonpublic 
 25.28  nonregular and late activity transportation for nonpublic school 
 25.29  pupils during the second preceding school year; times 
 25.30     (2) the ratio of the formula allowance pursuant to section 
 25.31  124A.22, subdivision 2, for the current school year to the 
 25.32  formula allowance pursuant to section 124A.22, subdivision 2, 
 25.33  for the second preceding school year. 
 25.34     (d) Notwithstanding the amount of the formula allowance for 
 25.35  fiscal years 1997 and 1998 in section 124A.22, subdivision 2, 
 25.36  the commissioner shall use the amount of the formula 
 26.1   allowance for the current year less $300 in determining the 
 26.2   nonpublic pupil transportation revenue in paragraphs (b) and (c) 
 26.3   for fiscal years 1997 and 1998. 
 26.4      Sec. 26.  Minnesota Statutes 1996, section 124.225, 
 26.5   subdivision 17, is amended to read: 
 26.6      Subd. 17.  [TARGETED NEEDS TRANSPORTATION AID.] (a) For 
 26.7   fiscal years 1997 and 1998, a district's targeted needs 
 26.8   transportation aid is the difference between its targeted needs 
 26.9   transportation revenue under subdivision 13 and its targeted 
 26.10  needs transportation levy under section 124.226, subdivision 10. 
 26.11     (b) If a district does not levy the entire amount 
 26.12  permitted, aid must be reduced in proportion to the actual 
 26.13  amount levied. 
 26.14     Sec. 27.  Minnesota Statutes 1996, section 124.226, 
 26.15  subdivision 10, is amended to read: 
 26.16     Subd. 10.  [TARGETED NEEDS TRANSPORTATION LEVY.] A school 
 26.17  district may make a levy for targeted needs transportation costs 
 26.18  according to this subdivision.  The amount of the levy shall be 
 26.19  the result of the following computation: 
 26.20     (1) For fiscal year years 1997 and later 1998, targeted 
 26.21  needs transportation levy equalization revenue equals 28 percent 
 26.22  of the sum of the district's special programs transportation 
 26.23  revenue under section 124.225, subdivision 14, and the 
 26.24  district's integration transportation revenue under section 
 26.25  124.225, subdivision 15. 
 26.26     (2) The targeted needs transportation levy equals the 
 26.27  result in clause (1) times the lesser of one or the ratio of (i) 
 26.28  the quotient derived by dividing the adjusted net tax capacity 
 26.29  of the district for the year before the year the levy is 
 26.30  certified by the actual pupil units in the district for the 
 26.31  school year to which the levy is attributable, to (ii) $3,540. 
 26.32     Sec. 28.  Minnesota Statutes 1996, section 124.912, 
 26.33  subdivision 1, is amended to read: 
 26.34     Subdivision 1.  [STATUTORY OBLIGATIONS.] (a) A school 
 26.35  district may levy: 
 26.36     (1) the amount authorized for liabilities of dissolved 
 27.1   districts pursuant to section 122.45; 
 27.2      (2) the amounts necessary to pay the district's obligations 
 27.3   under section 268.06, subdivision 25; and the amounts necessary 
 27.4   to pay for job placement services offered to employees who may 
 27.5   become eligible for benefits pursuant to section 268.08 for the 
 27.6   fiscal year the levy is certified; 
 27.7      (3) the amounts necessary to pay the district's obligations 
 27.8   under section 127.05; 
 27.9      (4) the amounts authorized by section 122.531; 
 27.10     (5) the amounts necessary to pay the district's obligations 
 27.11  under section 122.533; and 
 27.12     (6) for severance pay required by sections 120.08, 
 27.13  subdivision 3, and 122.535, subdivision 6. 
 27.14     (b) Each year, a member district of an education district 
 27.15  that levies under this subdivision must transfer the amount of 
 27.16  revenue certified under paragraph (b) to the education district 
 27.17  board according to this subdivision.  By June 20 and November 30 
 27.18  of each year, an amount must be transferred equal to: 
 27.19     (1) 50 percent times 
 27.20     (2) the amount certified in paragraph (b) minus homestead 
 27.21  and agricultural credit aid allocated for that levy according to 
 27.22  section 273.1398, subdivision 6. 
 27.23     Sec. 29.  Minnesota Statutes 1996, section 124.912, 
 27.24  subdivision 2, is amended to read: 
 27.25     Subd. 2.  [DESEGREGATION.] Each year, special school 
 27.26  district No. 1, Minneapolis, may levy an amount not to exceed 
 27.27  $197 times its actual pupil units for that fiscal year; 
 27.28  independent school district No. 625, St. Paul, may levy an 
 27.29  amount not to exceed $197 times its actual pupil units for that 
 27.30  fiscal year; and independent school district No. 709, Duluth, 
 27.31  may levy an amount not to exceed the sum of $660,000 and the 
 27.32  amount raised by a tax rate of 2.0 percent times the adjusted 
 27.33  net tax capacity of the district.  Notwithstanding section 
 27.34  121.904, the entire amount of this levy shall be recognized as 
 27.35  revenue for the fiscal year in which the levy is certified.  
 27.36  This levy shall not be considered in computing the aid reduction 
 28.1   under section 124.155. 
 28.2      Sec. 30.  Minnesota Statutes 1996, section 124.912, 
 28.3   subdivision 3, is amended to read: 
 28.4      Subd. 3.  [RULE COMPLIANCE.] Each year a district that is 
 28.5   required to implement a plan according to the requirements of 
 28.6   Minnesota Rules, parts 3535.0200 to 3535.2200, may levy an 
 28.7   amount not to exceed a net tax rate of 2.0 percent times the 
 28.8   adjusted net tax capacity of the district for taxes payable in 
 28.9   1991 and thereafter.  A district that levies according to 
 28.10  subdivision 2 may not levy according to this subdivision.  
 28.11  Notwithstanding section 121.904, the entire amount of this levy 
 28.12  shall be recognized as revenue for the fiscal year in which the 
 28.13  levy is certified.  This levy shall not be considered in 
 28.14  computing the aid reduction under section 124.155.  
 28.15     Sec. 31.  Minnesota Statutes 1996, section 124.916, 
 28.16  subdivision 1, is amended to read: 
 28.17     Subdivision 1.  [HEALTH INSURANCE.] (a) A school district 
 28.18  may levy the amount necessary to make employer contributions for 
 28.19  insurance for retired employees under this subdivision.  
 28.20  Notwithstanding section 121.904, 50 percent of the amount levied 
 28.21  shall be recognized as revenue for the fiscal year in which the 
 28.22  levy is certified.  This levy shall not be considered in 
 28.23  computing the aid reduction under section 124.155. 
 28.24     (b) The school board of a joint vocational technical 
 28.25  district formed under sections 136C.60 to 136C.69 and the school 
 28.26  board of a school district may provide employer-paid hospital, 
 28.27  medical, and dental benefits to a person who: 
 28.28     (1) is eligible for employer-paid insurance under 
 28.29  collective bargaining agreements or personnel plans in effect on 
 28.30  June 30, 1992; 
 28.31     (2) has at least 25 years of service credit in the public 
 28.32  pension plan of which the person is a member on the day before 
 28.33  retirement or, in the case of a teacher, has a total of at least 
 28.34  25 years of service credit in the teachers retirement 
 28.35  association, a first-class city teacher retirement fund, or any 
 28.36  combination of these; 
 29.1      (3) upon retirement is immediately eligible for a 
 29.2   retirement annuity; 
 29.3      (4) is at least 55 and not yet 65 years of age; and 
 29.4      (5) retires on or after May 15, 1992, and before July 21, 
 29.5   1992. 
 29.6      A school board paying insurance under this subdivision may 
 29.7   not exclude any eligible employees. 
 29.8      (c) An employee who is eligible both for the health 
 29.9   insurance benefit under this subdivision and for an early 
 29.10  retirement incentive under a collective bargaining agreement or 
 29.11  personnel plan established by the employer must select either 
 29.12  the early retirement incentive provided under the collective 
 29.13  bargaining agreement personnel plan or the incentive provided 
 29.14  under this subdivision, but may not receive both.  For purposes 
 29.15  of this subdivision, a person retires when the person terminates 
 29.16  active employment and applies for retirement benefits.  The 
 29.17  retired employee is eligible for single and dependent coverages 
 29.18  and employer payments to which the person was entitled 
 29.19  immediately before retirement, subject to any changes in 
 29.20  coverage and employer and employee payments through collective 
 29.21  bargaining or personnel plans, for employees in positions 
 29.22  equivalent to the position from which the employee retired.  The 
 29.23  retired employee is not eligible for employer-paid life 
 29.24  insurance.  Eligibility ceases when the retired employee attains 
 29.25  the age of 65, or when the employee chooses not to receive the 
 29.26  retirement benefits for which the employee has applied, or when 
 29.27  the employee is eligible for employer-paid health insurance from 
 29.28  a new employer.  Coverages must be coordinated with relevant 
 29.29  health insurance benefits provided through the federally 
 29.30  sponsored Medicare program.  
 29.31     (d) Unilateral implementation of this section by a public 
 29.32  employer is not an unfair labor practice for purposes of chapter 
 29.33  179A.  The authority provided in this subdivision for an 
 29.34  employer to pay health insurance costs for certain retired 
 29.35  employees is not subject to the limits in section 179A.20, 
 29.36  subdivision 2a. 
 30.1      (e) If a school district levies according to this 
 30.2   subdivision, it may not also levy according to section 122.531, 
 30.3   subdivision 9, for eligible employees. 
 30.4      Sec. 32.  Minnesota Statutes 1996, section 124.916, 
 30.5   subdivision 2, is amended to read: 
 30.6      Subd. 2.  [RETIRED EMPLOYEE HEALTH BENEFITS.] For taxes 
 30.7   payable in 1996, 1997, 1998, and 1999 only, a school district 
 30.8   may levy an amount up to the amount the district is required by 
 30.9   the collective bargaining agreement in effect on March 30, 1992, 
 30.10  to pay for health insurance or unreimbursed medical expenses for 
 30.11  licensed and nonlicensed employees who have terminated services 
 30.12  in the employing district and withdrawn from active teaching 
 30.13  service or other active service, as applicable, before July 1, 
 30.14  1992.  The total amount of the levy each year may not exceed 
 30.15  $300,000.  
 30.16     Notwithstanding section 121.904, 50 percent of the proceeds 
 30.17  of this levy shall be recognized in the fiscal year in which it 
 30.18  is certified. 
 30.19     Sec. 33.  Minnesota Statutes 1996, section 124.916, 
 30.20  subdivision 3, is amended to read: 
 30.21     Subd. 3.  [RETIREMENT LEVIES.] (1) In addition to the 
 30.22  excess levy authorized in 1976 any district within a city of the 
 30.23  first class which was authorized in 1975 to make a retirement 
 30.24  levy under Minnesota Statutes 1974, section 275.127 and chapter 
 30.25  422A may levy an amount per pupil unit which is equal to the 
 30.26  amount levied in 1975 payable 1976, under Minnesota Statutes 
 30.27  1974, section 275.127 and chapter 422A, divided by the number of 
 30.28  pupil units in the district in 1976-1977. 
 30.29     (2) In 1979 and each year thereafter, any district which 
 30.30  qualified in 1976 for an extra levy under paragraph (1) shall be 
 30.31  allowed to levy the same amount as levied for retirement in 1978 
 30.32  under this clause reduced each year by ten percent of the 
 30.33  difference between the amount levied for retirement in 1971 
 30.34  under Minnesota Statutes 1971, sections 275.127 and 422.01 to 
 30.35  422.54 and the amount levied for retirement in 1975 under 
 30.36  Minnesota Statutes 1974, section 275.127 and chapter 422A. 
 31.1      (3) In 1991 and each year thereafter, a district to which 
 31.2   this subdivision applies may levy an additional amount required 
 31.3   for contributions to the Minneapolis employees retirement fund 
 31.4   as a result of the maximum dollar amount limitation on state 
 31.5   contributions to the fund imposed under section 422A.101, 
 31.6   subdivision 3.  The additional levy shall not exceed the most 
 31.7   recent amount certified by the board of the Minneapolis 
 31.8   employees retirement fund as the district's share of the 
 31.9   contribution requirement in excess of the maximum state 
 31.10  contribution under section 422A.101, subdivision 3.  
 31.11     (4) For taxes payable in 1994 and thereafter, special 
 31.12  school district No. 1, Minneapolis, and independent school 
 31.13  district No. 625, St. Paul, may levy for the increase in the 
 31.14  employer retirement fund contributions, under Laws 1992, chapter 
 31.15  598, article 5, section 1.  Notwithstanding section 121.904, the 
 31.16  entire amount of this levy may be recognized as revenue for the 
 31.17  fiscal year in which the levy is certified.  This levy shall not 
 31.18  be considered in computing the aid reduction under section 
 31.19  124.155. 
 31.20     (5) If the employer retirement fund contributions under 
 31.21  section 354A.12, subdivision 2a, are increased for fiscal year 
 31.22  1994 or later fiscal years, special school district No. 1, 
 31.23  Minneapolis, and independent school district No. 625, St. Paul, 
 31.24  may levy in payable 1994 or later an amount equal to the amount 
 31.25  derived by applying the net increase in the employer retirement 
 31.26  fund contribution rate of the respective teacher retirement fund 
 31.27  association between fiscal year 1993 and the fiscal year 
 31.28  beginning in the year after the levy is certified to the total 
 31.29  covered payroll of the applicable teacher retirement fund 
 31.30  association.  Notwithstanding section 121.904, the entire amount 
 31.31  of this levy may be recognized as revenue for the fiscal year in 
 31.32  which the levy is certified.  This levy shall not be considered 
 31.33  in computing the aid reduction under section 124.155.  If an 
 31.34  applicable school district levies under this paragraph, they may 
 31.35  not levy under paragraph (4). 
 31.36     (6) In addition to the levy authorized under paragraph (5), 
 32.1   special school district No. 1, Minneapolis, may also levy 
 32.2   payable in 1997 or later an amount equal to the contributions 
 32.3   under section 423A.02, subdivision 3, and may also levy in 
 32.4   payable 1994 or later an amount equal to the state aid 
 32.5   contribution under section 354A.12, subdivision 3b.  Independent 
 32.6   school district No. 625, St. Paul, may levy payable in 1997 or 
 32.7   later an amount equal to the supplemental contributions under 
 32.8   section 423A.02, subdivision 3.  Notwithstanding section 
 32.9   121.904, the entire amount of these levies may be recognized as 
 32.10  revenue for the fiscal year in which the levy is certified.  
 32.11  These levies shall not be considered in computing the aid 
 32.12  reduction under section 124.155. 
 32.13     Sec. 34.  Minnesota Statutes 1996, section 124.918, 
 32.14  subdivision 6, is amended to read: 
 32.15     Subd. 6.  [ADJUSTMENTS FOR LAW CHANGES.] Whenever a change 
 32.16  enacted in law changes the levy authority for a school district 
 32.17  or an intermediate school district for a fiscal year after the 
 32.18  levy for that fiscal year has been certified by the district 
 32.19  under section 275.07, the department of children, families, and 
 32.20  learning shall adjust the next levy certified by the district by 
 32.21  the amount of the change in levy authority for that fiscal year 
 32.22  resulting from the change.  Notwithstanding section 121.904, the 
 32.23  entire amount for fiscal year 1992 and 50 percent for fiscal 
 32.24  years thereafter of the levy adjustment must be recognized as 
 32.25  revenue in the fiscal year the levy is certified, if sufficient 
 32.26  levy resources are available under generally accepted accounting 
 32.27  principles in the district fund where the adjustment is to 
 32.28  occur.  School districts that do not have sufficient levy 
 32.29  resources available in the fund where the adjustment is to occur 
 32.30  shall recognize in the fiscal year the levy is certified an 
 32.31  amount equal to the levy resources available.  The remaining 
 32.32  adjustment amount shall be recognized as revenue in the fiscal 
 32.33  year after the levy is certified. 
 32.34     Sec. 35.  Minnesota Statutes 1996, section 124.918, is 
 32.35  amended by adding a subdivision to read: 
 32.36     Subd. 9.  [INCOME TAX LIABILITY.] No later than October 1 
 33.1   of each year, the commissioner of children, families, and 
 33.2   learning shall report to each school district the preliminary 
 33.3   aggregate individual income tax liability for that district for 
 33.4   the previous year, as reported by the commissioner of revenue. 
 33.5      Sec. 36.  Minnesota Statutes 1996, section 124A.02, 
 33.6   subdivision 21, is amended to read: 
 33.7      Subd. 21.  [SHARED TIME AID.] For fiscal year 1998 and 
 33.8   later, aid for shared time pupils shall equal the formula 
 33.9   allowance minus $300 times the full-time equivalent actual pupil 
 33.10  units for shared time pupils.  Aid for shared time pupils shall 
 33.11  be in addition to any other aid to which the district is 
 33.12  otherwise entitled.  Shared time average daily membership shall 
 33.13  not be used in the computation of pupil units under section 
 33.14  124.17, subdivision 1, for any purpose other than the 
 33.15  computation of shared time aid pursuant to subdivisions 20 to 22 
 33.16  and section 124A.034, subdivisions 1 to 1b. 
 33.17     Sec. 37.  Minnesota Statutes 1996, section 124A.03, 
 33.18  subdivision 1c, is amended to read: 
 33.19     Subd. 1c.  [REFERENDUM ALLOWANCE LIMIT.] Notwithstanding 
 33.20  subdivision 1b, a district's referendum allowance must not 
 33.21  exceed the greater of:  
 33.22     (1) the district's referendum allowance for fiscal year 
 33.23  1994; or 
 33.24     (2) 25 percent of the formula allowance minus $300 for 
 33.25  fiscal year 1997 and later; or 
 33.26     (3) for a newly reorganized district created after July 1, 
 33.27  1994, the sum of the referendum revenue authority for the 
 33.28  reorganizing districts for the fiscal year preceding the 
 33.29  reorganization, divided by the sum of the actual pupil units of 
 33.30  the reorganizing districts for the fiscal year preceding the 
 33.31  reorganization. 
 33.32     Sec. 38.  Minnesota Statutes 1996, section 124A.03, 
 33.33  subdivision 1f, is amended to read: 
 33.34     Subd. 1f.  [REFERENDUM EQUALIZATION REVENUE.] A district's 
 33.35  referendum equalization revenue equals $315 $350 times the 
 33.36  district's actual pupil units for that year. 
 34.1      Referendum equalization revenue must not exceed a 
 34.2   district's total referendum revenue for that year. 
 34.3      Sec. 39.  Minnesota Statutes 1996, section 124A.03, 
 34.4   subdivision 1g, is amended to read: 
 34.5      Subd. 1g.  [REFERENDUM EQUALIZATION LEVY.] (a) For fiscal 
 34.6   year 1996, a district's referendum equalization levy equals the 
 34.7   district's referendum equalization revenue times the lesser of 
 34.8   one or the ratio of the district's adjusted net tax capacity per 
 34.9   actual pupil unit to 100 percent of the equalizing factor as 
 34.10  defined in section 124A.02, subdivision 8. 
 34.11     (b) For fiscal year 1997 1999 and thereafter, a district's 
 34.12  referendum equalization levy for a referendum levied against the 
 34.13  referendum market value of all taxable property as defined in 
 34.14  section 124A.02, subdivision 3b, equals the district's 
 34.15  referendum equalization revenue times the lesser of one or the 
 34.16  ratio of the district's referendum market value per actual pupil 
 34.17  unit to $476,000. 
 34.18     (c) (b) For fiscal year 1997 1999 and thereafter, a 
 34.19  district's referendum equalization levy for a referendum levied 
 34.20  against the net tax capacity of all taxable property equals the 
 34.21  district's referendum equalization revenue times the lesser of 
 34.22  one or the ratio of the district's adjusted net tax capacity per 
 34.23  actual pupil unit to 100 percent of the equalizing factor for 
 34.24  that year $10,130. 
 34.25     Sec. 40.  Minnesota Statutes 1996, section 124A.03, 
 34.26  subdivision 3c, is amended to read: 
 34.27     Subd. 3c.  [REFERENDUM ALLOWANCE REDUCTION.] For fiscal 
 34.28  year 1998 1999 and later, a district's referendum allowance for 
 34.29  referendum authority under subdivision 1c is reduced as provided 
 34.30  in this subdivision.  
 34.31     (a) For referendum revenue authority approved before June 
 34.32  1, 1996, and effective for fiscal year 1997, the reduction 
 34.33  equals the amount of the reduction computed for fiscal year 1997 
 34.34  under subdivision 3b times the lesser of one or the ratio of the 
 34.35  referendum allowance for the district to the amount determined 
 34.36  in subdivision 1c, clause (2), for fiscal year 1997.  
 35.1      (b) For referendum revenue authority approved before June 
 35.2   1, 1996, and effective beginning in fiscal year 1998, the 
 35.3   reduction equals the amount of the reduction computed for fiscal 
 35.4   year 1998 under subdivision 3b times the lesser of one or the 
 35.5   ratio of the referendum allowance for the district to the amount 
 35.6   determined in subdivision 1c, clause (2), for fiscal year 1998.  
 35.7      (c) For referendum revenue authority approved after May 31, 
 35.8   1996, there is no reduction.  
 35.9      (d) For districts with more than one referendum authority, 
 35.10  the reduction shall be computed separately for each authority.  
 35.11  The reduction shall be applied first to authorities levied 
 35.12  against tax capacity, and then to authorities levied against 
 35.13  referendum market value.  For districts with more than one 
 35.14  authority levied against net tax capacity or against referendum 
 35.15  market value, the referendum allowance reduction shall be 
 35.16  applied first to the authority with the earliest expiration date.
 35.17     (e) For a newly reorganized district created after July 1, 
 35.18  1996, the referendum revenue reduction equals the lesser of the 
 35.19  amount calculated for the combined district, or the sum of the 
 35.20  amounts by which each of the reorganizing district's 
 35.21  supplemental revenue reduction exceeds its respective 
 35.22  supplemental revenue allowances calculated for the year 
 35.23  preceding the year of reorganization. 
 35.24     Sec. 41.  [124A.038] [DISCRETIONARY REVENUE.] 
 35.25     Subdivision 1.  [DISCRETIONARY REVENUE ALLOWANCE.] A 
 35.26  district's discretionary revenue allowance equals the 
 35.27  discretionary revenue authority for that year divided by its 
 35.28  actual pupil units for that school year.  A district's 
 35.29  discretionary revenue allowance must not exceed 25 percent of 
 35.30  the formula allowance for the fiscal year for which it is 
 35.31  attributable.  A district that qualifies for sparsity revenue 
 35.32  under section 124A.22 is not subject to a discretionary revenue 
 35.33  allowance limit.  This revenue is in addition to authority under 
 35.34  section 124A.03. 
 35.35     Subd. 2.  [TOTAL DISCRETIONARY REVENUE.] The total 
 35.36  discretionary revenue for each district equals the district's 
 36.1   discretionary revenue allowance times the actual pupil units for 
 36.2   the school year. 
 36.3      Subd. 3.  [DISCRETIONARY REVENUE.] (a) The revenue 
 36.4   authorized by section 124A.22, subdivision 1, may be increased 
 36.5   in the amount approved by the voters of the district at a 
 36.6   referendum called for that purpose.  The referendum may be 
 36.7   called by the school board or shall be called by the school 
 36.8   board upon written petition of qualified voters of the 
 36.9   district.  The referendum shall be conducted during the calendar 
 36.10  year before the increased revenue, if approved, first becomes 
 36.11  payable.  Only one election to approve an increase may be held 
 36.12  in a calendar year.  Unless the referendum is conducted by mail 
 36.13  under paragraph (g), the referendum must be held on the first 
 36.14  Tuesday after the first Monday in November.  The ballot shall 
 36.15  state the maximum amount of the increased revenue per actual 
 36.16  pupil unit, the estimated income tax rate as a percentage of 
 36.17  taxable personal income in the first year it is to be applied, 
 36.18  and that the revenue shall be used to finance school 
 36.19  operations.  The ballot may state that existing discretionary 
 36.20  revenue authority or referendum revenue authority is expiring.  
 36.21  In this case, the ballot may also compare the proposed income 
 36.22  tax authority to the existing expiring income or property tax 
 36.23  authority, and express the proposed increase as the amount, if 
 36.24  any, over the expiring discretionary or referendum revenue 
 36.25  authority.  The ballot shall designate the specific number of 
 36.26  years, not to exceed five, for which the discretionary revenue 
 36.27  authorization shall apply.  The ballot may contain a textual 
 36.28  portion with the information required in this subdivision and a 
 36.29  question stating substantially the following: 
 36.30     "Shall the increase in the revenue proposed by (petition 
 36.31  to) the board .........., independent school district No. .., be 
 36.32  approved?" 
 36.33     If approved, an amount equal to the approved revenue per 
 36.34  actual pupil unit times the actual pupil units for the school 
 36.35  year beginning in the year after the revenue is authorized for 
 36.36  the number of years approved, if applicable, or until revoked or 
 37.1   reduced by the voters of the district at a subsequent referendum.
 37.2      (b) The school board shall prepare and deliver by first 
 37.3   class mail at least 15 days but no more than 30 days prior to 
 37.4   the day of the referendum to each residential address in the 
 37.5   school district, a notice of the referendum and the proposed 
 37.6   revenue increase.  The notice must project the anticipated 
 37.7   amount of tax increase in annual dollars and annual percentage 
 37.8   for typical family incomes within the school district. 
 37.9      The notice for a referendum may state that an existing 
 37.10  discretionary or referendum revenue authority is expiring and 
 37.11  project the anticipated amount of increase over the existing 
 37.12  discretionary income tax or referendum property tax, if any, in 
 37.13  annual dollars and annual percentage for typical family incomes 
 37.14  within the school district. 
 37.15     The notice must include the following statement:  "Passage 
 37.16  of this referendum will result in an increase in your personal 
 37.17  income taxes." 
 37.18     (c) A referendum on the question of revoking or reducing 
 37.19  the increased revenue amount authorized pursuant to paragraph 
 37.20  (a) may be called by the school board and shall be called by the 
 37.21  school board upon the written petition of qualified voters of 
 37.22  the district.  A referendum to revoke or reduce the revenue 
 37.23  amount must be based upon the amount per actual pupil unit that 
 37.24  was stated to be the basis for the initial authorization.  
 37.25  Revenue approved by the voters of the district pursuant to 
 37.26  paragraph (a), must be received at least once before it is 
 37.27  subject to a referendum on its revocation or reduction for 
 37.28  subsequent years.  Only one revocation or reduction referendum 
 37.29  may be held to revoke or reduce referendum revenue for any 
 37.30  specific year and for years thereafter. 
 37.31     (d) A petition authorized by paragraph (a) or (c) shall be 
 37.32  effective if signed by a number of qualified voters in excess of 
 37.33  15 percent of the registered voters of the school district on 
 37.34  the day the petition is filed with the school board.  A 
 37.35  referendum invoked by petition shall be held on the date 
 37.36  specified in paragraph (a). 
 38.1      (e) The approval of 50 percent plus one of those voting on 
 38.2   the question is required to pass a referendum authorized by this 
 38.3   subdivision. 
 38.4      (f) At least 15 days prior to the day of the referendum, 
 38.5   the district shall submit a copy of the notice required under 
 38.6   paragraph (b) to the commissioner of education.  Within 15 days 
 38.7   after the results of the referendum have been certified by the 
 38.8   school board, or in the case of a recount, the certification of 
 38.9   the results of the recount by the canvassing board, the district 
 38.10  shall notify the commissioner of education of the results of the 
 38.11  referendum. 
 38.12     (g) Any referendum under this section held on a day other 
 38.13  than the first Tuesday after the first Monday in November must 
 38.14  be conducted by mail in accordance with section 204B.46.  
 38.15  Notwithstanding paragraph (b) to the contrary, in the case of a 
 38.16  referendum conducted by mail under this paragraph, the notice 
 38.17  required by paragraph (b) shall be prepared and delivered by 
 38.18  first class mail at least 20 days before the referendum. 
 38.19     Subd. 4.  [REFERENDUM DATE.] In addition to the referenda 
 38.20  allowed in subdivision 3, paragraph (a), the commissioner may 
 38.21  authorize a referendum for a different day. 
 38.22     (a) The commissioner may grant authority to a district to 
 38.23  hold a referendum on a different day if the district is in 
 38.24  statutory operating debt and has an approved plan or has 
 38.25  received an extension from the department to file a plan to 
 38.26  eliminate the statutory operating debt. 
 38.27     (b) The commissioner may approve, deny, or modify each 
 38.28  district's request for a referendum levy on a different day 
 38.29  within 60 days of receiving the request from a district. 
 38.30     Sec. 42.  Minnesota Statutes 1996, section 124A.22, 
 38.31  subdivision 2, is amended to read: 
 38.32     Subd. 2.  [BASIC REVENUE.] The basic revenue for each 
 38.33  district equals the formula allowance times the actual pupil 
 38.34  units for the school year.  The formula allowance for fiscal 
 38.35  year 1995 is $3,150.  The formula allowance for fiscal year 1996 
 38.36  1998 is $3,205 $3,540.  The formula allowance for fiscal year 
 39.1   1997 1999 is $3,505 and for fiscal year 1998 and subsequent 
 39.2   fiscal years the formula allowance is $3,430 $3,575. 
 39.3      Sec. 43.  Minnesota Statutes 1996, section 124A.22, 
 39.4   subdivision 3, is amended to read: 
 39.5      Subd. 3.  [COMPENSATORY EDUCATION REVENUE.] The 
 39.6   compensatory education revenue for each building in the district 
 39.7   equals the formula allowance less $300 times the AFDC 
 39.8   compensation revenue pupil units computed according to section 
 39.9   124.17, subdivision 1d.  Revenue shall be paid to the district 
 39.10  and must be allocated according to section 124A.28, subdivision 
 39.11  1a. 
 39.12     Sec. 44.  Minnesota Statutes 1996, section 124A.22, 
 39.13  subdivision 8a, is amended to read: 
 39.14     Subd. 8a.  [SUPPLEMENTAL LEVY.] To obtain supplemental 
 39.15  revenue, a district may levy an amount not more than the product 
 39.16  of its supplemental revenue for the school year times the lesser 
 39.17  of one or the ratio of its general education levy to its general 
 39.18  education revenue, excluding transition revenue and supplemental 
 39.19  revenue, for the same year adjusted net tax capacity per actual 
 39.20  pupil unit to $10,130. 
 39.21     Sec. 45.  Minnesota Statutes 1996, section 124A.22, 
 39.22  subdivision 10, is amended to read: 
 39.23     Subd. 10.  [TOTAL OPERATING CAPITAL REVENUE.] (a) For 
 39.24  fiscal year 1997 1999 and thereafter, total operating capital 
 39.25  revenue for a district equals the amount determined under 
 39.26  paragraph (b), or (c), (d), (e), or (f), plus $68 times the 
 39.27  actual pupil units for the school year.  The revenue must be 
 39.28  placed in a reserved account in the general fund and may only be 
 39.29  used according to subdivision 11. 
 39.30     (b) For fiscal years 1996 1999 and later, capital revenue 
 39.31  for a district equals $100 times the district's maintenance cost 
 39.32  index times its actual pupil units for the school year. 
 39.33     (c) For 1996 and later fiscal years, the previous formula 
 39.34  revenue for a district equals $128 times its actual pupil units 
 39.35  for fiscal year 1995. 
 39.36     (d) Notwithstanding paragraph (b), for fiscal year 1996, 
 40.1   the revenue for each district equals 25 percent of the amount 
 40.2   determined in paragraph (b) plus 75 percent of the previous 
 40.3   formula revenue. 
 40.4      (e) Notwithstanding paragraph (b), for fiscal year 1997, 
 40.5   the revenue for each district equals 50 percent of the amount 
 40.6   determined in paragraph (b) plus 50 percent of the previous 
 40.7   formula revenue. 
 40.8      (f) Notwithstanding paragraph (b), for fiscal year 1998, 
 40.9   the revenue for each district equals 75 percent of the amount 
 40.10  determined in paragraph (b) plus 25 percent of the previous 
 40.11  formula revenue. 
 40.12     (g) The revenue for a district that operates a program 
 40.13  under section 121.585, is increased by an amount equal 
 40.14  to $15 $30 times the number of actual pupil units at the site 
 40.15  where the program is implemented. 
 40.16     Sec. 46.  Minnesota Statutes 1996, section 124A.22, 
 40.17  subdivision 11, is amended to read: 
 40.18     Subd. 11.  [USES OF TOTAL OPERATING CAPITAL REVENUE.] Total 
 40.19  operating capital revenue may be used only for the following 
 40.20  purposes: 
 40.21     (1) to acquire land for school purposes; 
 40.22     (2) to acquire or construct buildings for school purposes, 
 40.23  up to $400,000; 
 40.24     (3) to rent or lease buildings, including the costs of 
 40.25  building repair or improvement that are part of a lease 
 40.26  agreement; 
 40.27     (4) to improve and repair school sites and buildings, and 
 40.28  equip or reequip school buildings with permanent attached 
 40.29  fixtures; 
 40.30     (5) for a surplus school building that is used 
 40.31  substantially for a public nonschool purpose; 
 40.32     (6) to eliminate barriers or increase access to school 
 40.33  buildings by individuals with a disability; 
 40.34     (7) to bring school buildings into compliance with the 
 40.35  uniform fire code adopted according to chapter 299F; 
 40.36     (8) to remove asbestos from school buildings, encapsulate 
 41.1   asbestos, or make asbestos-related repairs; 
 41.2      (9) to clean up and dispose of polychlorinated biphenyls 
 41.3   found in school buildings; 
 41.4      (10) to clean up, remove, dispose of, and make repairs 
 41.5   related to storing heating fuel or transportation fuels such as 
 41.6   alcohol, gasoline, fuel oil, and special fuel, as defined in 
 41.7   section 296.01; 
 41.8      (11) for energy audits for school buildings and to modify 
 41.9   buildings if the audit indicates the cost of the modification 
 41.10  can be recovered within ten years; 
 41.11     (12) to improve buildings that are leased according to 
 41.12  section 123.36, subdivision 10; 
 41.13     (13) to pay special assessments levied against school 
 41.14  property but not to pay assessments for service charges; 
 41.15     (14) to pay principal and interest on state loans for 
 41.16  energy conservation according to section 216C.37 or loans made 
 41.17  under the northeast Minnesota economic protection trust fund act 
 41.18  according to sections 298.292 to 298.298; 
 41.19     (15) to purchase or lease interactive telecommunications 
 41.20  equipment; 
 41.21     (16) by school board resolution, to transfer money into the 
 41.22  debt redemption fund to:  (i) pay the amounts needed to meet, 
 41.23  when due, principal and interest payments on certain obligations 
 41.24  issued according to chapter 475; or (ii) pay principal and 
 41.25  interest on debt service loans or capital loans according to 
 41.26  section 124.44; 
 41.27     (17) to pay capital expenditure equipment-related 
 41.28  assessments of any entity formed under a cooperative agreement 
 41.29  between two or more districts; 
 41.30     (18) to purchase or lease computers and related materials, 
 41.31  copying machines, telecommunications equipment, and other 
 41.32  noninstructional equipment; 
 41.33     (19) to purchase or lease assistive technology or equipment 
 41.34  for instructional programs; 
 41.35     (20) to purchase textbooks; 
 41.36     (21) to purchase new and replacement library books; 
 42.1      (22) to purchase vehicles; 
 42.2      (23) to purchase or lease telecommunications equipment, 
 42.3   computers, and related equipment for integrated information 
 42.4   management systems for: 
 42.5      (i) managing and reporting learner outcome information for 
 42.6   all students under a results-oriented graduation rule; 
 42.7      (ii) managing student assessment, services, and achievement 
 42.8   information required for students with individual education 
 42.9   plans; and 
 42.10     (iii) other classroom information management needs; and 
 42.11     (24) to pay personnel costs directly related to the 
 42.12  acquisition, operation, and maintenance of telecommunications 
 42.13  systems, computers, related equipment, and network and 
 42.14  applications software. 
 42.15     Sec. 47.  Minnesota Statutes 1996, section 124A.22, is 
 42.16  amended by adding a subdivision to read: 
 42.17     Subd. 12a.  [COMPENSATORY TRANSITION REVENUE.] A district's 
 42.18  compensatory transition revenue is equal to the difference 
 42.19  between: 
 42.20     (1) the amount the district would have received under 
 42.21  Minnesota Statutes 1996, section 124A.22, subdivision 3, for 
 42.22  fiscal year 1998, adjusted for any increase in the formula 
 42.23  allowance for that year; and 
 42.24     (2) the amount the district receives under subdivision 3. 
 42.25     Sec. 48.  Minnesota Statutes 1996, section 124A.22, 
 42.26  subdivision 13, is amended to read: 
 42.27     Subd. 13.  [TRANSPORTATION SPARSITY DEFINITIONS.] The 
 42.28  definitions in this subdivision apply to subdivisions 13a and 
 42.29  13b. 
 42.30     (a) "Sparsity index" for a school district means the 
 42.31  greater of .2 or the ratio of the square mile area of the school 
 42.32  district to the actual pupil units of the school district. 
 42.33     (b) "Density index" for a school district means the ratio 
 42.34  of the square mile area of the school district to the actual 
 42.35  pupil units of the school district.  However, the density index 
 42.36  for a school district cannot be greater than .2 or less than 
 43.1   .005. 
 43.2      (c) "Fiscal year 1996 base allowance" for a school district 
 43.3   means the result of the following computation: 
 43.4      (1) sum the following amounts: 
 43.5      (i) the fiscal year 1996 regular transportation revenue for 
 43.6   the school district according to section 124.225, subdivision 
 43.7   7d, paragraph (a), excluding the revenue attributable nonpublic 
 43.8   school pupils and to pupils with disabilities receiving special 
 43.9   transportation services; plus 
 43.10     (ii) the fiscal year 1996 nonregular transportation revenue 
 43.11  for the school district according to section 124.225, 
 43.12  subdivision 7d, paragraph (b), excluding the revenue for 
 43.13  desegregation transportation according to section 124.225, 
 43.14  subdivision 1, paragraph (c), clause (4), and the revenue 
 43.15  attributable to nonpublic school pupils and to pupils with 
 43.16  disabilities receiving special transportation services or board 
 43.17  and lodging; plus 
 43.18     (iii) the fiscal year 1996 excess transportation levy for 
 43.19  the school district according to section 124.226, subdivision 5, 
 43.20  excluding the levy attributable to nonpublic school pupils; plus 
 43.21     (iv) the fiscal year 1996 late activity bus levy for the 
 43.22  school district according to section 124.226, subdivision 9, 
 43.23  excluding the levy attributable to nonpublic school pupils; plus 
 43.24     (v) an amount equal to one-third of the fiscal year 1996 
 43.25  bus depreciation for the school district according to section 
 43.26  124.225, subdivision 1, paragraph (b), clauses (2), (3), and (4).
 43.27     (2) divide the result in clause (1) by the school districts 
 43.28  district's 1995-1996 actual fund balance pupil units. 
 43.29     Sec. 49.  Minnesota Statutes 1996, section 124A.22, 
 43.30  subdivision 13c, is amended to read: 
 43.31     Subd. 13c.  [TRANSITION REVENUE ADJUSTMENT.] A district's 
 43.32  transition revenue adjustment equals the district's transition 
 43.33  allowance times the actual pupil units for the school year, plus 
 43.34  compensatory transition revenue. 
 43.35     Sec. 50.  Minnesota Statutes 1996, section 124A.22, 
 43.36  subdivision 13d, is amended to read: 
 44.1      Subd. 13d.  [TRANSITION LEVY ADJUSTMENT.] A district's 
 44.2   general education levy shall be adjusted by an amount equal to 
 44.3   the district's transition revenue times the lesser of 1 or the 
 44.4   ratio of the district's general education levy to its general 
 44.5   education revenue, excluding transition revenue and supplemental 
 44.6   revenue its adjusted net tax capacity per actual pupil unit to 
 44.7   $10,130. 
 44.8      Sec. 51.  Minnesota Statutes 1996, section 124A.23, 
 44.9   subdivision 1, is amended to read: 
 44.10     Subdivision 1.  [GENERAL EDUCATION TAX RATE.] The 
 44.11  commissioner shall establish the general education tax rate by 
 44.12  July 1 of each year for levies payable in the following year.  
 44.13  The general education tax capacity rate shall be a rate, rounded 
 44.14  up to the nearest tenth hundredth of a percent, that, when 
 44.15  applied to the adjusted net tax capacity for all districts, 
 44.16  raises the amount specified in this subdivision.  The general 
 44.17  education tax rate shall be the rate that raises $1,054,000,000 
 44.18  for fiscal year 1996 and $1,359,000,000 for fiscal year 1997 
 44.19  1998 and $1,334,825,000 for fiscal year 1999 and later fiscal 
 44.20  years.  The general education tax rate may not be changed due to 
 44.21  changes or corrections made to a district's adjusted net tax 
 44.22  capacity after the tax rate has been established.  If the levy 
 44.23  target for fiscal year 1999 is changed by another law enacted 
 44.24  during the 1997 session, the commissioner shall reduce the 
 44.25  target in this bill by the amount of the reduction in the 
 44.26  enacted law. 
 44.27     Sec. 52.  Minnesota Statutes 1996, section 124A.23, 
 44.28  subdivision 2, is amended to read: 
 44.29     Subd. 2.  [GENERAL EDUCATION LEVY.] To obtain general 
 44.30  education revenue, excluding transition revenue and supplemental 
 44.31  revenue, a district may levy an amount not to exceed the general 
 44.32  education tax rate times the adjusted net tax capacity of the 
 44.33  district for the preceding year.  If the amount of the general 
 44.34  education levy would exceed the general education revenue, 
 44.35  excluding supplemental revenue, the general education levy shall 
 44.36  be determined according to subdivision 3.  
 45.1      Sec. 53.  Minnesota Statutes 1996, section 124A.23, 
 45.2   subdivision 3, is amended to read: 
 45.3      Subd. 3.  [GENERAL EDUCATION LEVY; DISTRICTS OFF THE 
 45.4   FORMULA.] If the amount of the general education levy for a 
 45.5   district exceeds the district's general education revenue, 
 45.6   excluding training and experience transition revenue and 
 45.7   supplemental revenue, the amount of the general education levy 
 45.8   shall be limited to the following: 
 45.9      (1) the district's general education revenue, excluding 
 45.10  training and experience transition revenue and supplemental 
 45.11  revenue; plus 
 45.12     (2) the amount of the aid reduction for the same school 
 45.13  year according to section 124A.24; minus 
 45.14     (3) payments made for the same school year according to 
 45.15  section 124A.035, subdivision 4. 
 45.16     For purposes of statutory cross-reference, a levy made 
 45.17  according to this subdivision shall be construed to be the levy 
 45.18  made according to subdivision 2. 
 45.19     Sec. 54.  Minnesota Statutes 1996, section 124A.23, 
 45.20  subdivision 5, is amended to read: 
 45.21     Subd. 5.  [USES OF REVENUE.] Except as provided in 
 45.22  section sections 124A.22, subdivision 11; 124A.225; and 124A.28, 
 45.23  general education revenue may be used during the regular school 
 45.24  year and the summer for general and special school purposes. 
 45.25     Sec. 55.  Minnesota Statutes 1996, section 124A.26, is 
 45.26  amended to read: 
 45.27     124A.26 [REDUCTION TO GENERAL EDUCATION REVENUE FUND 
 45.28  BALANCE PUPIL UNITS.] 
 45.29     Subdivision 1.  [REVENUE REDUCTION DEFINITION.] A 
 45.30  district's general education revenue for a school year shall be 
 45.31  reduced if the estimated net unappropriated operating fund 
 45.32  balance as of June 30 in the prior school year exceeds 25 
 45.33  percent of the formula allowance for the current fiscal year 
 45.34  times the fund balance pupil units in the prior year.  For 
 45.35  purposes of this subdivision and section 124.243, subdivision 2, 
 45.36  Fund balance pupil units means the number of resident pupil 
 46.1   units in average daily membership, including shared time pupils, 
 46.2   according to section 124A.02, subdivision 20, plus 
 46.3      (1) pupils attending the district for which general 
 46.4   education aid adjustments are made according to section 
 46.5   124A.036, subdivision 5; minus 
 46.6      (2) the sum of the resident pupils attending other 
 46.7   districts for which general education aid adjustments are made 
 46.8   according to section 124A.036, subdivision 5, plus pupils for 
 46.9   whom payment is made according to section 126.22, subdivision 8, 
 46.10  or 126.23.  The amount of the reduction shall equal the lesser 
 46.11  of: 
 46.12     (1) the amount of the excess, or 
 46.13     (2) $250 times the actual pupil units for the school year. 
 46.14     The final adjustment payments made under section 124.195, 
 46.15  subdivision 6, must be adjusted to reflect actual net operating 
 46.16  fund balances as of June 30 of the prior school year. 
 46.17     Subd. 1a.  [ALTERNATIVE REDUCTION CALCULATION.] For any 
 46.18  district where the ratio of (1) the number of nonpublic students 
 46.19  ages 5 to 18, according to the report required under section 
 46.20  120.102, to (2) the total number of residents in the district 
 46.21  ages 5 to 18 as counted according to the annual fall school 
 46.22  census is greater than 40 percent, the district's net 
 46.23  unappropriated operating fund balance for that year for the 
 46.24  purpose of calculating the fund balance reduction under this 
 46.25  section is equal to the sum of the district's net unappropriated 
 46.26  fund balance in the general, transportation, and food service 
 46.27  funds. 
 46.28     Subd. 2.  [LEVY REDUCTION.] If a district's general 
 46.29  education revenue is reduced, the general education levy shall 
 46.30  be reduced by the following amount: 
 46.31     (1) the reduction specified in subdivision 1, times 
 46.32     (2) the lesser of one or the ratio of the district's 
 46.33  general education levy to its general education revenue, 
 46.34  excluding training and experience revenue and supplemental 
 46.35  revenue adjusted net tax capacity per actual pupil unit to 
 46.36  $10,130. 
 47.1      Subd. 3.  [AID REDUCTION.] A district's general education 
 47.2   aid shall be reduced by an amount equal to the difference 
 47.3   between the revenue reduction and the levy reduction. 
 47.4      Subd. 4.  [ALLOCATION AMONG OPERATING FUNDS.] The revenue 
 47.5   reduction required under this section must be allocated to the 
 47.6   transportation fund and the community service fund in the 
 47.7   following manner: 
 47.8      (1) each year, a school district shall calculate the ratio 
 47.9   of the transportation net unappropriated operating fund balance 
 47.10  and the community service net unappropriated operating fund 
 47.11  balance to the total net unappropriated operating fund balance; 
 47.12     (2) multiply the ratios computed in clause (1) by the total 
 47.13  fund balance reduction required under this section; 
 47.14     (3) the school district shall transfer the amounts, if any, 
 47.15  calculated in clause (2) from the transportation and community 
 47.16  service funds to the general fund. 
 47.17     Subd. 5.  [ALLOCATION AMONG ACCOUNTS.] The district must 
 47.18  apportion any fund balance reduction under this section among 
 47.19  all reserved and unreserved fund balance accounts included in 
 47.20  the net unappropriated operating fund balance in the proportion 
 47.21  that each account bears to the total. 
 47.22     Sec. 56.  Minnesota Statutes 1996, section 124A.28, is 
 47.23  amended to read: 
 47.24     124A.28 [COMPENSATORY EDUCATION REVENUE.] 
 47.25     Subdivision 1.  [USE OF THE REVENUE.] The compensatory 
 47.26  education revenue under section 124A.22, subdivision 3, must be 
 47.27  used to meet the educational needs of pupils whose educational 
 47.28  achievement progress toward meeting state or local content or 
 47.29  performance standards is below the level that is appropriate for 
 47.30  pupils learners of their age.  These needs may be met by 
 47.31  providing the Any of the following may be provided to meet these 
 47.32  learners' needs: 
 47.33     (1) direct instructional services under the assurance of 
 47.34  mastery program according to section 124.311 124.3111; 
 47.35     (2) remedial instruction in reading, language arts, and 
 47.36  mathematics, other content areas, or study skills to improve the 
 48.1   achievement level of these pupils learners; 
 48.2      (3) additional teachers and teacher aides to provide more 
 48.3   individualized instruction to these pupils learners through 
 48.4   individual tutoring, lower instructor-to-learner ratios, or team 
 48.5   teaching; 
 48.6      (4) summer programs that enable these pupils to improve 
 48.7   their achievement or that reemphasize material taught during the 
 48.8   regular school year; 
 48.9      (5) in-service education comprehensive and ongoing staff 
 48.10  development consistent with district and site plans according to 
 48.11  section 126.70, for teachers, teacher aides, principals, and 
 48.12  other personnel to improve their ability to recognize identify 
 48.13  the needs of these pupils learners and provide 
 48.14  appropriate responses to the pupils' needs remediation, 
 48.15  intervention, accommodations, or modifications; 
 48.16     (6) for instructional material for these pupils including:  
 48.17  textbooks, workbooks, periodicals, pamphlets, photographs, 
 48.18  reproductions, filmstrips, prepared slides, prerecorded video 
 48.19  programs, sound recordings, desk charts, games, study prints and 
 48.20  pictures, desk maps, models, learning kits, blocks and cubes, 
 48.21  flashcards, instructional computer software programs, pencils, 
 48.22  pens, crayons, notebooks, duplicating fluids, and 
 48.23  papers materials and technology appropriate for meeting the 
 48.24  individual needs of these learners; 
 48.25     (7) programs to reduce truancy, encourage completion of 
 48.26  high school, enhance self-concept, provide health services, 
 48.27  provide nutrition services, provide a safe and secure learning 
 48.28  environment, provide coordination for pupils receiving services 
 48.29  from other governmental agencies, provide psychological services 
 48.30  to determine the level of social, emotional, cognitive, and 
 48.31  intellectual development, and provide counseling services, 
 48.32  guidance services, and social work services; 
 48.33     (8) bilingual programs, bicultural programs, and programs 
 48.34  for pupils learners of limited English proficiency; 
 48.35     (9) all day kindergarten; 
 48.36     (10) extended school day and extended school year programs; 
 49.1   and 
 49.2      (11) substantial parent involvement in developing and 
 49.3   implementing remedial education or intervention plans for a 
 49.4   learner, including learning contracts between the school, the 
 49.5   learner, and the parent that establish achievement goals and 
 49.6   responsibilities of the learner and the learner's parent or 
 49.7   guardian; and 
 49.8      (12) other methods to increase achievement, as needed.  
 49.9      Subd. 1a.  [BUILDING ALLOCATION.] A district must consider 
 49.10  the concentration of children from low-income families 
 49.11  in allocate revenue to each school building in the district when 
 49.12  allocating compensatory revenue where the children who have 
 49.13  generated the revenue are served. 
 49.14     If the pupil is served at a site other than one owned and 
 49.15  operated by the district, the revenue shall be paid to the 
 49.16  district and used for services for pupils who generate the 
 49.17  revenue. 
 49.18     Subd. 2.  [SEPARATE ACCOUNTS.] Each district that receives 
 49.19  compensatory education revenue shall maintain separate accounts 
 49.20  to identify expenditures for salaries and programs related to 
 49.21  this revenue. 
 49.22     Subd. 3.  [ANNUAL EXPENDITURE REPORT.] Each year a district 
 49.23  that receives compensatory education revenue shall submit a 
 49.24  report identifying the expenditures it incurred in providing 
 49.25  compensatory education to the pupils described in to meet the 
 49.26  needs of eligible learners under subdivision 1.  The report must 
 49.27  conform to uniform financial and reporting standards established 
 49.28  for this purpose. 
 49.29     Sec. 57.  [124A.50] [CITATION.] 
 49.30     Sections 57 to 64 may be cited as the "Minnesota Common 
 49.31  Schools of Excellence Act." 
 49.32     Sec. 58.  [124A.51] [PURPOSE.] 
 49.33     The purposes of the Minnesota Common Schools of Excellence 
 49.34  Act are the following: 
 49.35     (1) to ensure that the fundamental right to an education 
 49.36  under the state Constitution is met for all children; 
 50.1      (2) to provide all parents with the freedom to choose the 
 50.2   educational setting most effective for their children; 
 50.3      (3) to encourage socioeconomic integration through choice 
 50.4   and increased access; 
 50.5      (4) to make alternative learning environments available to 
 50.6   pupils who do not perform satisfactorily in traditional schools; 
 50.7      (5) to increase the role families play in the education of 
 50.8   their children; and 
 50.9      (6) to reestablish confidence in the educational process by 
 50.10  generating greater family commitment to the school of choice and 
 50.11  creating responsive and professional relationships between 
 50.12  educators and parents. 
 50.13     Sec. 59.  [124A.52] [MINNESOTA COMMON SCHOOLS OF 
 50.14  EXCELLENCE.] 
 50.15     Subdivision 1.  [ELIGIBLE SCHOOL.] A school is eligible to 
 50.16  participate if it meets the following requirements: 
 50.17     (1) the school conforms to the provisions of chapter 363; 
 50.18     (2) has, or can demonstrate that it will have in the school 
 50.19  year following certification, a student population where the 
 50.20  number of children attending eligible for free and reduced lunch 
 50.21  is at least 25 percent of the total students attending.  A 
 50.22  school will be considered to have met this requirement if actual 
 50.23  attendance measured after the end of the school year is within 
 50.24  2.5 percentage points of this goal; 
 50.25     (3) operates a specific curriculum and student assessment 
 50.26  system that fully implements the basic graduation standards and 
 50.27  the complete profiles of learning standards as defined by the 
 50.28  state board of education.  The board, in consultation with the 
 50.29  chairs of the education funding divisions of the house and 
 50.30  senate, shall establish guidelines to determine if this criteria 
 50.31  has been met; 
 50.32     (4) the school provides a personalized learning plan for 
 50.33  each eligible student; and 
 50.34     (5) the school makes an application through its legal 
 50.35  governing board to the board of the district in which it is 
 50.36  located prior to December 1, requesting approval as an eligible 
 51.1   school for the next school year.  By the following February 1, 
 51.2   the board shall, by resolution, accept or deny the application.  
 51.3   The resolution shall state the reasons for the decision.  The 
 51.4   application must demonstrate that the school meets the 
 51.5   requirements of clauses (1) to (5). 
 51.6      Subd. 2.  [EMPLOYEES.] Faculty of eligible schools are 
 51.7   covered under chapter 179A. 
 51.8      Subd. 3.  [ELIGIBLE FEES AND CHARGES.] Except as provided 
 51.9   in this subdivision, an eligible school must not charge an 
 51.10  eligible student more than the basic certificate amount.  An 
 51.11  eligible school may charge for additional educationally related 
 51.12  services for children demonstrating a need for such services.  
 51.13  The services must compensate for achievement difficulties of the 
 51.14  child.  In the case of a child with an individualized education 
 51.15  plan, a parent or guardian may apply to the department for an 
 51.16  increase in the certificate amount to cover the cost of these 
 51.17  services not otherwise covered. 
 51.18     Sec. 60.  [124A.53] [APPLICATIONS AND ACCEPTANCE.] 
 51.19     Subdivision 1.  [APPLICATION FORMS.] Every public school, 
 51.20  each eligible nonpublic school, and the state board of education 
 51.21  must make available application forms for participation in the 
 51.22  common school preservation program. 
 51.23     Subd. 2.  [SUBMISSION OF APPLICATIONS.] The parent or 
 51.24  guardian of an eligible pupil shall submit a single application 
 51.25  to an eligible school for enrollment the following fall.  The 
 51.26  parent or guardian shall also indicate whether the pupil has 
 51.27  siblings who are applying for participation in the program and 
 51.28  whether, for the purposes of subdivision 3, paragraph (b), the 
 51.29  pupil and siblings should be treated as a single applicant or 
 51.30  individually. 
 51.31     Subd. 3.  [ADMISSION OF PUPILS.] A school shall determine 
 51.32  admission of a pupil in the following manner. 
 51.33     (a) A school shall admit a pupil if the pupil is attending 
 51.34  the school to which application is made at the time of making 
 51.35  the application or a sibling of the pupil has attended the 
 51.36  school to which application is made.  If the number of eligible 
 52.1   pupils is covered by this clause exceeds the number of spaces 
 52.2   available, priority shall be given to pupils currently attending 
 52.3   the school. 
 52.4      (b) If spaces are available after admitting pupils 
 52.5   described in paragraph (a), the school shall accept pupils for 
 52.6   admission up to the maximum number of spaces available. 
 52.7      Nothing in this subdivision shall affect the admissions 
 52.8   criteria established by a nonpublic school. 
 52.9      Subd. 4.  [NOTIFICATIONS.] The school shall notify each 
 52.10  applicant whether the pupil has been accepted for or denied 
 52.11  admission.  The parent or guardian shall notify the school 
 52.12  whether the pupil will attend the school.  After receiving the 
 52.13  notices from parents and guardians, if there are unfilled 
 52.14  spaces, the school may accept additional pupils for admission. 
 52.15     Sec. 61.  [124A.54] [COMMON SCHOOL CERTIFICATE.] 
 52.16     (a) A student attending a qualifying school is eligible for 
 52.17  a common school certificate according to this section.  Each 
 52.18  student shall receive a certificate equal to:  (1) the basic 
 52.19  amount of $6,000, plus (2) $6,000 times the percentage developed 
 52.20  according to paragraph (b). 
 52.21     (b) The percentage for paragraph (a) is equal to:  (1) 
 52.22  three, times (2) the ratio of family income defined for the 
 52.23  purpose of free and reduced lunch to twice the maximum income 
 52.24  eligible for free lunch, times (3) 1 minus the ratio of the 
 52.25  actual grade of attendance of the child to 12. 
 52.26     A pupil for whom payment is made under this section may not 
 52.27  be counted under section 123.935, 124.17, or 124A.034.  The 
 52.28  department shall develop a system to redeem the certificates for 
 52.29  eligible schools.  The amounts in paragraph (a) shall be 
 52.30  increased annually by the percentage change in the United States 
 52.31  Consumer Price Index. 
 52.32     Sec. 62.  [124A.55] [IMPLEMENTATION GUIDELINES.] 
 52.33     The state board of education shall adopt guidelines 
 52.34  necessary to implement the Common School Preservation Act of 
 52.35  1997.  The guidelines must be adopted with the advice of the 
 52.36  chairs of the appropriate education funding divisions in the 
 53.1   house and senate.  The guidelines must include provisions for 
 53.2   the data required for eligibility; the dates required for 
 53.3   application and admission and grounds for exceptions to the 
 53.4   dates; substantial hardship situations; midyear pupil transfers; 
 53.5   the dates for transfer of certificates to parents or guardians 
 53.6   under section 61; and the pupil application form. 
 53.7      Sec. 63.  [124A.56] [COMMON SCHOOL AID APPROPRIATION.] 
 53.8      $50,000,000 is annually appropriated from the general fund 
 53.9   to the commissioner of children, families, and learning for the 
 53.10  redemption of common school certificates under section 124A.54.  
 53.11  Any unexpended amount each year shall not cancel and shall not 
 53.12  be included in the reallocation under section 124.14, 
 53.13  subdivision 7, but shall be placed in a separate account in the 
 53.14  general fund to be used for the purposes of section 124A.54.  Of 
 53.15  the appropriation, $150,000 is for the commissioner to develop 
 53.16  and implement an information system that provides performance 
 53.17  data to parents of eligible schools. 
 53.18     Sec. 64.  [124A.57] [SEVERABILITY.] 
 53.19     If any portion of sections 124A.50 to 124A.56 are found by 
 53.20  a court to be unconstitutional, the remaining portions of the 
 53.21  sections shall remain in effect. 
 53.22     Sec. 65.  Minnesota Statutes 1996, section 124C.45, 
 53.23  subdivision 1a, is amended to read: 
 53.24     Subd. 1a.  [RESERVE REVENUE.] Each school district that is 
 53.25  a member of an area learning center must reserve revenue in an 
 53.26  amount equal to at least 90 percent of the basic district 
 53.27  average general education revenue generated by each student less 
 53.28  compensatory revenue unit times the number of pupil units 
 53.29  attending an area learning center program under this section.  
 53.30  The amount of reserved revenue under this subdivision may only 
 53.31  be spent on program costs associated with the area learning 
 53.32  center. 
 53.33     Sec. 66.  Minnesota Statutes 1996, section 126.23, 
 53.34  subdivision 1, is amended to read: 
 53.35     Subdivision 1.  [AID.] If a pupil enrolls in an alternative 
 53.36  program, eligible under section 126.22, subdivision 3, paragraph 
 54.1   (d), or subdivision 3a, operated by a private organization that 
 54.2   has contracted with a school district to provide educational 
 54.3   services for eligible pupils under section 126.22, subdivision 
 54.4   2, the district contracting with the private organization must 
 54.5   reimburse the provider an amount equal to at least 90 percent of 
 54.6   the basic district's average general education less compensatory 
 54.7   revenue of the district for each pupil attending the program 
 54.8   full time per pupil unit times the number of pupil units for 
 54.9   pupils attending the program.  Compensatory revenue must be 
 54.10  allocated according to section 124A.28, subdivision 1a.  For a 
 54.11  pupil attending the program part time, basic the revenue paid to 
 54.12  the program shall be reduced proportionately, according to the 
 54.13  amount of time the pupil attends the program, and basic revenue 
 54.14  paid to the district shall be reduced accordingly.  Pupils for 
 54.15  whom a district provides reimbursement may not be counted by the 
 54.16  district for any purpose other than computation of basic 
 54.17  revenue, according to section 124A.22, subdivision 2 general 
 54.18  education revenue.  If payment is made to a district or program 
 54.19  for a pupil under this section, the department of children, 
 54.20  families, and learning shall not make a payment for the same 
 54.21  pupil under section 126.22, subdivision 8. 
 54.22     Sec. 67.  Minnesota Statutes 1996, section 179A.03, 
 54.23  subdivision 19, is amended to read: 
 54.24     Subd. 19.  [TERMS AND CONDITIONS OF EMPLOYMENT.] "Terms and 
 54.25  conditions of employment" means the hours of employment, the 
 54.26  compensation therefor including fringe benefits except 
 54.27  retirement contributions or benefits other than employer payment 
 54.28  of, or contributions to, premiums for group insurance coverage 
 54.29  of retired employees or severance pay, and the employer's 
 54.30  personnel policies affecting the working conditions of the 
 54.31  employees.  In the case of professional employees for schools 
 54.32  not operating under sections 57 to 64, the term does not mean 
 54.33  educational policies of a school district.  "Terms and 
 54.34  conditions of employment" is subject to section 179A.07.  
 54.35     Sec. 68.  [290.0621] [SCHOOL REFERENDUM TAX.] 
 54.36     Subdivision 1.  [IMPOSITION.] In addition to all other 
 55.1   taxes imposed by this chapter, a tax is imposed on individuals 
 55.2   who reside within the territory of a school district in which 
 55.3   the voters approved a tax increase at a referendum conducted 
 55.4   under section 124A.038 for that purpose in 1998 or a subsequent 
 55.5   year.  This tax does not apply to referendums on bond issues.  
 55.6   Individuals residing in the district on the last day of the 
 55.7   taxable year are subject to the tax. 
 55.8      Subd. 2.  [RATE.] The commissioner of revenue shall 
 55.9   annually determine the rate of the tax imposed under this 
 55.10  section as the percentage of taxable income of individuals 
 55.11  subject to the tax.  The school referendum tax rate is computed 
 55.12  as follows: 
 55.13     (1) for each district described in subdivision 1, the 
 55.14  discretionary revenue contribution ratio equals the lesser of: 
 55.15     (i) the ratio of taxable income of individuals residing in 
 55.16  the district during the previous taxable year, divided by the 
 55.17  actual pupil units, to the discretionary equalizing factor; or 
 55.18     (ii) 10/7; 
 55.19     (2) the discretionary revenue equalizing factor equals the 
 55.20  amount of taxable income of individuals residing in all 
 55.21  districts subject to this section during the previous taxable 
 55.22  year, divided by actual pupil units for those districts; or 
 55.23     (3) for each district described in subdivision 1, the 
 55.24  school referendum tax rate equals the ratio of: 
 55.25     (i) the product of the district's total discretionary 
 55.26  revenue under section 124A.038, subdivision 1e, times the 
 55.27  district's discretionary revenue contribution ratio; to 
 55.28     (ii) the taxable income of individuals residing in the 
 55.29  district during the previous taxable year. 
 55.30     Subd. 3.  [REVENUE DISTRIBUTION.] Revenue raised in 
 55.31  subdivision 1 shall be placed in a special account in the 
 55.32  general fund.  The amount necessary to make payments to school 
 55.33  districts under section 41 is annually appropriated from the 
 55.34  general fund to the commissioner of children, families, and 
 55.35  learning and shall be paid to school districts according to 
 55.36  section 124.195.  If the amount in the account is less than the 
 56.1   amount needed to make the payments, the commissioner shall 
 56.2   adjust the discretionary revenue equalizing factor in 
 56.3   subdivision 2 the next year by an amount necessary to raise the 
 56.4   shortfall. 
 56.5      Sec. 69.  [290.0622] [DEPARTMENT OF REVENUE.] 
 56.6      The commissioner of revenue shall require taxpayers to 
 56.7   report on their individual income tax returns the identifying 
 56.8   number of the school district they lived in on the final day of 
 56.9   the tax year.  The commissioner shall provide taxpayers with a 
 56.10  listing of school district names and numbers to facilitate 
 56.11  compliance with this provision. 
 56.12     No later than September 15 of each year, the commissioner 
 56.13  of revenue shall report to the commissioner of children, 
 56.14  families, and learning the preliminary aggregate individual 
 56.15  income tax liability for each school district in the state. 
 56.16     In years in which surtaxes are authorized, the commissioner 
 56.17  of revenue shall collect the surtax along with the individual 
 56.18  income tax.  The instructions for completing the individual 
 56.19  income tax return shall include a listing of school districts 
 56.20  that have authorized surtaxes and the surtax rates. 
 56.21     Sec. 70.  [290.433] [SCHOOL INFORMATION ON FORMS.] 
 56.22     Subdivision 1.  [REPORTING REQUIRED.] Every individual who 
 56.23  files an income tax return or a property tax refund claim form 
 56.24  must identify at the place provided on the return or the claim 
 56.25  form, but not both, the name of the school, if any, at which 
 56.26  each dependent child of the individual will be enrolled for the 
 56.27  school year which begins during the calendar year when the 
 56.28  return or claim is filed. 
 56.29     Subd. 2.  [USE OF INFORMATION.] The commissioner shall 
 56.30  annually compile the information provided under subdivision 1 in 
 56.31  a form that will indicate for each school in the state the 
 56.32  number of children expected to be enrolled in the school that 
 56.33  year by $10,000 ranges of taxable income according to 
 56.34  information provided on income tax returns and federal adjusted 
 56.35  gross income according to information provided on property tax 
 56.36  refund claims.  The commissioner shall provide the information 
 57.1   to the commissioner of children, families, and learning. 
 57.2      Sec. 71.  Laws 1991, chapter 265, article 1, section 30, as 
 57.3   amended by Laws 1993, chapter 224, article 8, section 19, is 
 57.4   amended to read: 
 57.5      Sec. 30.  [BADGER SCHOOL DISTRICT FUND BALANCE.] 
 57.6      If independent school district No. 676, Badger, receives 
 57.7   payment of delinquent property taxes from one taxpayer and the 
 57.8   payment is more than five percent of the total property taxes 
 57.9   paid in the fiscal year in which the payment is received, 
 57.10  general education revenue for the district shall not be reduced 
 57.11  according to Minnesota Statutes, section 124A.26, subdivision 1, 
 57.12  for an excess fund balance attributed to the payment for the 
 57.13  following five ten fiscal years. 
 57.14     Sec. 72.  Laws 1995, First Special Session chapter 3, 
 57.15  article 1, section 56, is amended to read: 
 57.16     Sec. 56.  [SUPPLEMENTAL REVENUE REDUCTION.] 
 57.17     For fiscal years 1996 1998 and 1997 1999, if a district's 
 57.18  ratio of 1992 adjusted net tax capacity divided by 1994-1995 
 57.19  actual pupil units to $9,025 is less than or equal to .25, then 
 57.20  the difference under Minnesota Statutes, section 124A.22, 
 57.21  subdivision 9, clause (2), is equal to $25 $0 for purposes of 
 57.22  computing the district's supplemental revenue under Minnesota 
 57.23  Statutes, section 124A.22, subdivision 8.  For purposes of 
 57.24  computing the referendum allowance reduction under Minnesota 
 57.25  Statutes, section 124A.03, subdivision 3b, the supplemental 
 57.26  revenue reduction shall be computed according to Minnesota 
 57.27  Statutes, section 124A.22, subdivision 9. 
 57.28     Sec. 73.  Laws 1995, First Special Session chapter 3, 
 57.29  article 2, section 52, is amended to read: 
 57.30     Sec. 52.  [TRANSPORTATION AIDS AND LEVIES; SUSPENSION.] 
 57.31     Minnesota Statutes 1994, sections 124.225, subdivisions 1, 
 57.32  3a, 7a, 7b, 7d, 7e, 8a, 8k, and 8m, and 10; and 124.226, 
 57.33  subdivisions 1, 2, 3a, 4, 5, 6, 7, and 8, do not apply to aids 
 57.34  payable in fiscal years 1997 and 1998 or to levies made in 1995 
 57.35  and 1996 for taxes payable in 1996 and 1997. 
 57.36     Sec. 74.  Laws 1996, chapter 461, section 3, subdivision 2, 
 58.1   is amended to read: 
 58.2      Subd. 2.  [APPROPRIATION.] $180,000,000 The amount 
 58.3   necessary is appropriated from the general fund to the 
 58.4   commissioner of children, families, and learning for fiscal year 
 58.5   1997 to reduce eliminate the property tax levy recognition 
 58.6   percentage under Minnesota Statutes 1996, section 121.904, 
 58.7   subdivision 4a, paragraph (b), clause (3).  This appropriation 
 58.8   replaces the appropriation for fiscal year 1997 made under 
 58.9   Minnesota Statutes, section 16A.152, subdivision 2, as a result 
 58.10  of the November 1995 forecast. 
 58.11     Sec. 75.  [LEVY ADJUSTMENT ATTRIBUTABLE TO THE REPEAL OF 
 58.12  THE K-12 APPROPRIATIONS CAPS.] 
 58.13     Notwithstanding Minnesota Statutes, section 124.918, 
 58.14  subdivision 6, a school district may spread any positive 
 58.15  referendum levy adjustments for fiscal year 1998 due to the 
 58.16  change in the general education basic formula allowance under 
 58.17  section 124A.22, subdivision 2, and the pupil unit weightings 
 58.18  under section 124.17, over a three-year period beginning with 
 58.19  taxes payable in 1998. 
 58.20     Sec. 76.  [FISCAL YEAR 2000 AND 2001 APPROPRIATIONS.] 
 58.21     The appropriations for the 2000-2001 biennium for programs 
 58.22  contained in this act shall be $3,708,000,000 for fiscal year 
 58.23  2000 and $3,858,000,000 for fiscal year 2001, plus or minus any 
 58.24  adjustments due to variance in pupil forecasts, levies, or other 
 58.25  factors generating entitlements for the general revenue 
 58.26  program.  These amounts shall first be allocated to fully fund 
 58.27  the general revenue program.  Amounts remaining shall be 
 58.28  allocated to other programs in proportion to the fiscal year 
 58.29  1999 appropriations or to entitlements generated by existing law 
 58.30  for those programs for each year, up to the amount of the 
 58.31  entitlement or the fiscal year 1999 appropriations.  Any amounts 
 58.32  remaining after allocation to these programs shall be maintained 
 58.33  for allocation recommendations by the governor and legislature 
 58.34  in the 1999 session. 
 58.35     Sec. 77.  [PROPERTY TAX REDUCTION PROTECTION.] 
 58.36     (a) The commissioner shall determine the levies specified 
 59.1   in paragraphs (b), (c), and (d), for fiscal year 1999, according 
 59.2   to this section. 
 59.3      (b) Total levies under Minnesota Statutes, section 124.91, 
 59.4   subdivision 1, shall not exceed $23,510,000.  The commissioner 
 59.5   shall proportionately reduce requests from districts to limit 
 59.6   the statewide total to this amount. 
 59.7      (c) Total levies under Minnesota Statutes, section 124.239, 
 59.8   subdivision 5, paragraph (b), shall not exceed $8,400,000.  The 
 59.9   commissioner shall proportionately reduce requests from 
 59.10  districts to limit the statewide total to this amount. 
 59.11     (d) Total levies under Minnesota Statutes, section 124.84, 
 59.12  shall not exceed $3,200,000.  The commissioner shall 
 59.13  proportionately reduce requests from districts to limit the 
 59.14  statewide total to this amount. 
 59.15     Sec. 78.  [COMPENSATORY REVENUE GROWTH LIMIT.] 
 59.16     For fiscal years 1998 and 1999, the commissioner shall 
 59.17  limit the growth in compensatory revenue a district receives 
 59.18  according to this article.  The commissioner shall compare the 
 59.19  compensatory revenue a district receives under the changes in 
 59.20  section 13 with the compensatory revenue per pupil unit a 
 59.21  district would have received if section 13 had not been 
 59.22  enacted.  The pupil units shall be adjusted for the weight 
 59.23  change in grades 1 through 3.  A district may not receive an 
 59.24  increase in compensatory revenue in excess of $300 per pupil 
 59.25  unit. 
 59.26     Sec. 79.  [FUNDING FOR EARLY CHILDHOOD PROGRAMS.] 
 59.27     School districts must use ten percent of the total revenue 
 59.28  received from the state for programs developed to prepare 
 59.29  children for school.  These programs include, but are not 
 59.30  limited to, Head Start, early childhood and family education, 
 59.31  and learning readiness. 
 59.32     Sec. 80.  [APPROPRIATIONS.] 
 59.33     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 59.34  LEARNING.] The sums indicated in this section are appropriated 
 59.35  from the general fund to the department of children, families, 
 59.36  and learning for the fiscal years designated.  
 60.1      Subd. 2.  [GENERAL AND SUPPLEMENTAL EDUCATION AID.] For 
 60.2   general and supplemental education aid:  
 60.3        $2,528,386,000  .....    1998
 60.4        $2,647,829,000  .....    1999
 60.5      The 1998 appropriation includes $227,451,000 for 1997 and 
 60.6   $2,300,935,000 for 1998.  
 60.7      The 1999 appropriation includes $241,759,000 for 1998 and 
 60.8   $2,406,070,000 for 1999.  
 60.9      Of the 1998 appropriation, the first $113,800,000 is from 
 60.10  the education aids reserve of the general fund. 
 60.11     Subd. 3.  [TRANSPORTATION SAFETY.] For student 
 60.12  transportation safety aid according to Minnesota Statutes, 
 60.13  section 124.225, subdivision 8m: 
 60.14       $1,430,000     .....     1998 
 60.15       $1,458,000     .....     1999
 60.16     The 1998 appropriation includes $129,000 for 1997 and 
 60.17  $1,301,000 for 1998.  
 60.18     The 1999 appropriation includes $144,000 for 1997 and 
 60.19  $1,314,000 for 1998. 
 60.20     Subd. 4.  [TRANSPORTATION AID FOR ENROLLMENT OPTIONS.] For 
 60.21  transportation of pupils attending post-secondary institutions 
 60.22  according to Minnesota Statutes, section 123.3514, or for 
 60.23  transportation of pupils attending nonresident districts 
 60.24  according to Minnesota Statutes, section 120.062: 
 60.25       $102,000     .....     1998
 60.26       $102,000     .....     1999
 60.27     Any balance in the first year does not cancel but is 
 60.28  available in the second year. 
 60.29     Subd. 5.  [WIDE AREA TRANSPORTATION SERVICE PILOT PROJECT.] 
 60.30  To expand the wide area transportation service project: 
 60.31       $170,000      .....      1998 
 60.32       $ 50,000      .....      1999 
 60.33     Of the amount in fiscal year 1998, $70,000 is for a grant 
 60.34  to the Minnesota river valley special education cooperative for 
 60.35  a computerized routing system. 
 60.36     The purpose is to expand the project for the computerized 
 61.1   mapping and scheduling programs for school districts to jointly 
 61.2   provide transportation services for low-incidence programs.  The 
 61.3   department shall work with representatives of the affected 
 61.4   programs, transportation managers from both metropolitan and 
 61.5   rural districts, and the metropolitan council.  The department 
 61.6   shall contract for services and provide oversight.  The 
 61.7   department must report to the education committees of the state 
 61.8   legislature by February 15, 1998, on the operation of the wide 
 61.9   area transportation service project, including details regarding 
 61.10  whether the project is meeting its objectives and any problems 
 61.11  related to the service provided by the project.  The project 
 61.12  shall consider the relationship of education transportation with 
 61.13  transportation services provided by noneducation agencies.  
 61.14     Any balance in the first year does not cancel but is 
 61.15  available in the second year. 
 61.16     Subd. 6.  [INTERDISTRICT DESEGREGATION OR INTEGRATION 
 61.17  TRANSPORTATION GRANTS.] For interdistrict desegregation or 
 61.18  integration transportation grants under Minnesota Statutes, 
 61.19  section 124.227: 
 61.20       $800,000       .....     1998
 61.21       $970,000       .....     1999
 61.22     Any balance in the first year does not cancel but is 
 61.23  available in the second year. 
 61.24     Subd. 7.  [TARGETED NEEDS TRANSPORTATION AID.] For aid 
 61.25  payments for targeted needs transportation aid under Minnesota 
 61.26  Statutes, section 124.225, subdivision 13: 
 61.27       $76,195,000    .....     1998
 61.28       $24,303,000    .....     1999
 61.29     The 1998 appropriation includes $7,148,000 for 1997 and 
 61.30  $69,047,000 for 1998. 
 61.31     The 1999 appropriation includes $7,671,000 for 1998 and 
 61.32  $16,632,000 for 1999. 
 61.33     Subd. 8.  [HEALTH AND SAFETY AID.] For health and safety 
 61.34  aid according to Minnesota Statutes, section 124.83, subdivision 
 61.35  5: 
 61.36       $14,081,000    .....     1998 
 62.1        $14,179,000    .....     1999 
 62.2      The 1998 appropriation includes $1,132,000 for 1997 and 
 62.3   $12,949,000 for 1998.  
 62.4      The 1999 appropriation includes $1,438,000 for 1998 and 
 62.5   $12,741,000 for 1999.  
 62.6      For fiscal year 1999, the sum of total health and safety 
 62.7   revenue may not exceed $76,000,000.  The commissioner shall 
 62.8   establish criteria for prioritizing district health and safety 
 62.9   project applications not to exceed this amount. 
 62.10     Subd. 9.  [DEBT SERVICE AID.] For debt service aid 
 62.11  according to Minnesota Statutes, section 124.95, subdivision 5: 
 62.12       $35,480,000     .....     1998
 62.13       $38,408,000     .....     1999
 62.14     The 1998 appropriation includes $3,313,000 for 1997 and 
 62.15  $32,167,000 for 1998. 
 62.16     The 1999 appropriation includes $3,573,000 for 1998 and 
 62.17  $34,835,000 for 1999. 
 62.18     Sec. 81.  [REPEALER.] 
 62.19     Minnesota Statutes 1996, sections 121.904, subdivisions 4c 
 62.20  and 4d; 121.912, subdivision 7; 124.155; and 124A.26, 
 62.21  subdivisions 1a, 2, 3, 4, and 5, are repealed. 
 62.22     (a) Minnesota Statutes 1996, sections 124.223; 124.225, 
 62.23  subdivisions 3a, 7a, 7b, 7d, 7e, 8a, and 8k; 124A.02, 
 62.24  subdivision 24; and 124A.22, subdivisions 4, 4a, and 4b, are 
 62.25  repealed effective July 1, 1997. 
 62.26     (b) Minnesota Statutes 1996, sections 124.226; and 124.912, 
 62.27  subdivisions 2 and 3, are repealed effective for revenue for 
 62.28  fiscal year 1999. 
 62.29     Sec. 82.  [EFFECTIVE DATE.] 
 62.30     Sections 2, 15, 17, 18, 19, 29 to 34, 53, and 74 are 
 62.31  effective the day following final enactment.  Sections 12, 14, 
 62.32  16, 43, 47, 48, 55, 56, 57, 66, and 67 are effective for revenue 
 62.33  for fiscal year 1998.  Section 45 is effective for revenue for 
 62.34  fiscal year 1999, except that the allowance increase in section 
 62.35  45 is effective for revenue for fiscal year 1998.  Section 28 is 
 62.36  effective for taxes payable in 1998.  Sections 26 and 27 are 
 63.1   effective retroactively to July 1, 1996. 
 63.2                              ARTICLE 2
 63.3                           SPECIAL PROGRAMS
 63.4      Section 1.  Minnesota Statutes 1996, section 120.1701, 
 63.5   subdivision 3, is amended to read: 
 63.6      Subd. 3.  [STATE INTERAGENCY COORDINATING COUNCIL.] An 
 63.7   interagency coordinating council of at least 17, but not more 
 63.8   than 25 members is established, in compliance with Public Law 
 63.9   Number 102-119, section 682.  The members shall be appointed by 
 63.10  the governor.  Council members shall elect the council chair.  
 63.11  The representative of the commissioner of children, families, 
 63.12  and learning may not serve as the chair.  The council shall be 
 63.13  composed of at least five parents, including persons of color, 
 63.14  of children with disabilities under age 12, including at least 
 63.15  three parents of a child with a disability under age seven, five 
 63.16  representatives of public or private providers of services for 
 63.17  children with disabilities under age five, including a special 
 63.18  education director, county social service director, and a 
 63.19  community health services or public health nursing 
 63.20  administrator, one member of the senate, one member of the house 
 63.21  of representatives, one representative of teacher preparation 
 63.22  programs in early childhood-special education or other 
 63.23  preparation programs in early childhood intervention, at least 
 63.24  one representative of advocacy organizations for children with 
 63.25  disabilities under age five, one physician who cares for young 
 63.26  children with special health care needs, one representative each 
 63.27  from the commissioners of commerce, children, families, and 
 63.28  learning, health, human services, and economic security, and a 
 63.29  representative from Indian health services or a tribal council.  
 63.30  Section 15.059, subdivisions 2 to 5, apply to the council.  The 
 63.31  council shall meet at least quarterly.  
 63.32     The council shall address methods of implementing the state 
 63.33  policy of developing and implementing comprehensive, 
 63.34  coordinated, multidisciplinary interagency programs of early 
 63.35  intervention services for children with disabilities and their 
 63.36  families. 
 64.1      The duties of the council include recommending policies to 
 64.2   ensure a comprehensive and coordinated system of all state and 
 64.3   local agency services for children under age five with 
 64.4   disabilities and their families.  The policies must address how 
 64.5   to incorporate each agency's services into a unified state and 
 64.6   local system of multidisciplinary assessment practices, 
 64.7   individual intervention plans, comprehensive systems to find 
 64.8   children in need of services, methods to improve public 
 64.9   awareness, and assistance in determining the role of interagency 
 64.10  early intervention committees.  
 64.11     Each year by June 1, the council shall recommend to the 
 64.12  governor and the commissioners of children, families, and 
 64.13  learning, health, human services, commerce, and economic 
 64.14  security policies for a comprehensive and coordinated system. 
 64.15     Notwithstanding any other law to the contrary, the state 
 64.16  interagency coordinating council shall expire on June 30, 1997 
 64.17  2001. 
 64.18     Sec. 2.  Minnesota Statutes 1996, section 120.181, is 
 64.19  amended to read: 
 64.20     120.181 [PLACEMENT OF CHILDREN WITHOUT DISABILITIES; 
 64.21  EDUCATION AND TRANSPORTATION.] 
 64.22     The responsibility for providing instruction and 
 64.23  transportation for a pupil without a disability who has a 
 64.24  short-term or temporary physical or emotional illness or 
 64.25  disability, as determined by the standards of the state board, 
 64.26  and who is temporarily placed for care and treatment for that 
 64.27  illness or disability, shall be determined as provided in this 
 64.28  section.  
 64.29     (a) The school district of residence of the pupil shall be 
 64.30  the district in which the pupil's parent or guardian resides, or 
 64.31  when neither the pupil's parent or guardian resides within the 
 64.32  state and tuition has been denied, the district designated by 
 64.33  the commissioner of children, families, and learning if neither 
 64.34  parent nor guardian is living within the state.  
 64.35     (b) Prior to the placement of a pupil for care and 
 64.36  treatment, the district of residence shall be notified and 
 65.1   provided an opportunity to participate in the placement 
 65.2   decision.  When an immediate emergency placement is necessary 
 65.3   and time does not permit resident district participation in the 
 65.4   placement decision, the district in which the pupil is 
 65.5   temporarily placed, if different from the district of residence, 
 65.6   shall notify the district of residence of the emergency 
 65.7   placement within 15 days of the placement.  
 65.8      (c) When a pupil without a disability is temporarily placed 
 65.9   for care and treatment in a day program and the pupil continues 
 65.10  to live within the district of residence during the care and 
 65.11  treatment, the district of residence shall provide instruction 
 65.12  and necessary transportation for the pupil.  The district may 
 65.13  provide the instruction at a school within the district of 
 65.14  residence, at the pupil's residence, or in the case of a 
 65.15  placement outside of the resident district, in the district in 
 65.16  which the day treatment program is located by paying tuition to 
 65.17  that district.  The district of placement may contract with a 
 65.18  facility to provide instruction by teachers licensed by the 
 65.19  state board of teaching.  
 65.20     (d) When a pupil without a disability is temporarily placed 
 65.21  in a residential program for care and treatment, the district in 
 65.22  which the pupil is placed shall provide instruction for the 
 65.23  pupil and necessary transportation while the pupil is receiving 
 65.24  instruction, and in the case of a placement outside of the 
 65.25  district of residence, the nonresident district shall bill the 
 65.26  district of residence for the actual cost of providing the 
 65.27  instruction for the regular school year and for summer school, 
 65.28  excluding transportation costs.  When a pupil without a 
 65.29  disability is temporarily placed in a residential program 
 65.30  outside the district of residence, the administrator of the 
 65.31  court placing the pupil shall send timely written notice of the 
 65.32  placement to the district of residence.  The district of 
 65.33  placement may contract with a residential facility to provide 
 65.34  instruction by teachers licensed by the state board of teaching. 
 65.35     (e) The district of residence shall include the pupil in 
 65.36  its residence count of pupil units and pay tuition as provided 
 66.1   in section 124.18 to the district providing the instruction.  
 66.2   Transportation costs shall be paid by the district providing the 
 66.3   transportation and the state shall pay transportation aid to 
 66.4   that district.  For purposes of computing state transportation 
 66.5   aid, pupils governed by this subdivision shall be included in 
 66.6   the disabled transportation category.  
 66.7      Sec. 3.  Minnesota Statutes 1996, section 124.2613, 
 66.8   subdivision 3, is amended to read: 
 66.9      Subd. 3.  [QUALIFYING SCHOOL SITE.] (a) The commissioner 
 66.10  shall rank all school sites with kindergarten programs that do 
 66.11  not exclusively serve students under section 120.17.  The 
 66.12  ranking must be from highest to lowest based on the site's free 
 66.13  and reduced lunch count as a percent of the fall enrollment 
 66.14  using the preceding October 1 enrollment data.  Once a school 
 66.15  site is calculated to be eligible, it remains eligible for the 
 66.16  duration of the pilot program.  For each school site, the 
 66.17  percentage used to calculate the ranking must be the greater of 
 66.18  (1) the percent of the fall kindergarten enrollment receiving 
 66.19  free and reduced lunch, or (2) the percent of the total fall 
 66.20  enrollment receiving free and reduced lunch.  The list of ranked 
 66.21  sites must be separated into the following geographic areas:  
 66.22  Minneapolis district, St. Paul district, suburban Twin Cities 
 66.23  districts in the seven-county metropolitan area, and school 
 66.24  districts in greater Minnesota. 
 66.25     (b) The commissioner shall establish a process and 
 66.26  timelines to qualify school sites for the next school year.  
 66.27  School sites must be qualified in each geographic area from the 
 66.28  list of ranked sites until the estimated revenue available for 
 66.29  this program has been allocated.  The total estimated revenue of 
 66.30  $3,500,000 must be distributed to qualified school sites in each 
 66.31  geographic area as follows:  25 percent for Minneapolis sites, 
 66.32  25 percent for St. Paul sites, 25 percent for suburban Twin 
 66.33  Cities sites, and 25 percent for greater Minnesota. 
 66.34     Sec. 4.  Minnesota Statutes 1996, section 124.2613, 
 66.35  subdivision 4, is amended to read: 
 66.36     Subd. 4.  [PROGRAM.] A qualifying school site must develop 
 67.1   its first-grade preparedness program in collaboration with other 
 67.2   providers of school readiness and child development services.  A 
 67.3   school site must either offer a full-day kindergarten program to 
 67.4   participating children who are five years of age or older for 
 67.5   the full school day every day or a half-day, a program for 
 67.6   participating children who are four years old, or a combination 
 67.7   of both.  The program may offer as an option to families home 
 67.8   visits and other practices as appropriate, and may provide such 
 67.9   services with the consent of the parent or guardian.  Full-day 
 67.10  and half-day kindergarten Program providers must ensure that the 
 67.11  program they provide supplements existing school readiness and 
 67.12  child development programs and complements the services provided 
 67.13  with compensatory revenue.  Where possible, individuals 
 67.14  receiving assistance under a family assistance plan can meet the 
 67.15  work activity requirement of the plan by participating in a 
 67.16  first-grade preparedness program as a volunteer. 
 67.17     Sec. 5.  Minnesota Statutes 1996, section 124.2613, 
 67.18  subdivision 6, is amended to read: 
 67.19     Subd. 6.  [PREPAREDNESS REVENUE.] (a) A qualifying school 
 67.20  district is eligible for first-grade preparedness revenue equal 
 67.21  to the basic formula allowance for that year times the number of 
 67.22  pupil units calculated according to paragraph (b) in each 
 67.23  qualifying school site.  If the first-grade preparedness revenue 
 67.24  is insufficient to fully fund the formula amounts, the 
 67.25  commissioner shall prorate the revenue provided to each 
 67.26  qualifying school site of children five years of age or older 
 67.27  enrolled in a kindergarten program at the site on October 1 of 
 67.28  the previous year times .53. 
 67.29     (b) A pupil enrolled in a half-day first-grade preparedness 
 67.30  program under this section is counted as .53 pupil units.  A 
 67.31  pupil enrolled in a full-day first-grade preparedness program 
 67.32  under this section is counted as a kindergarten pupil under 
 67.33  section 124.17, subdivision 1, plus an additional .53 pupil 
 67.34  units. 
 67.35     (c) This revenue must supplement and not replace 
 67.36  compensatory revenue that the district uses for the same or 
 68.1   similar purposes under chapter 124A. 
 68.2      (c) A pupil enrolled in the first grade preparedness 
 68.3   program at a qualifying school site is eligible for 
 68.4   transportation under section 123.39, subdivision 1.  
 68.5      (d) First grade preparedness revenue paid to a charter 
 68.6   school for which a school district is providing transportation 
 68.7   according to section 120.064, subdivision 15, shall be decreased 
 68.8   by an amount equal to the product of $170 times the pupil units 
 68.9   calculated according to paragraph (b).  This amount shall be 
 68.10  paid to the school district for transportation costs.  
 68.11     Sec. 6.  Minnesota Statutes 1996, section 124.2711, 
 68.12  subdivision 2a, is amended to read: 
 68.13     Subd. 2a.  [EARLY CHILDHOOD FAMILY EDUCATION LEVY.] To 
 68.14  obtain early childhood family education revenue, a district may 
 68.15  levy an amount equal to the tax rate of .609 .653 percent times 
 68.16  the adjusted tax capacity of the district for the year preceding 
 68.17  the year the levy is certified.  If the amount of the early 
 68.18  childhood family education levy would exceed the early childhood 
 68.19  family education revenue, the early childhood family education 
 68.20  levy shall equal the early childhood family education revenue. 
 68.21     Sec. 7.  Minnesota Statutes 1996, section 124.273, 
 68.22  subdivision 1d, is amended to read: 
 68.23     Subd. 1d.  [LEP BASE REVENUE.] (a) The limited English 
 68.24  proficiency programs base revenue equals the sum of the 
 68.25  following amounts, computed using base year data:  
 68.26     (1) 68 percent of the salary of one full-time equivalent 
 68.27  teacher for each 40 pupils of limited English proficiency 
 68.28  enrolled, or 68 percent of the salary of one-half of a full-time 
 68.29  teacher in a district with 20 or fewer pupils of limited English 
 68.30  proficiency enrolled; and 
 68.31     (2) for supplies and equipment purchased or rented for use 
 68.32  in the instruction of pupils of limited English proficiency an 
 68.33  amount equal to 47 percent of the sum actually spent by the 
 68.34  district but not to exceed an average of $47 in any one school 
 68.35  year for each pupil of limited English proficiency receiving 
 68.36  instruction. 
 69.1      (b) For the purposes of this subdivision, a teacher 
 69.2   includes nonlicensed personnel who provide direct instruction to 
 69.3   students of limited English proficiency under the supervision of 
 69.4   a licensed teacher. 
 69.5      (c) If requested by a school district operating a limited 
 69.6   English proficiency program during the base year for less than 
 69.7   the full school year, the commissioner may adjust the base 
 69.8   revenue to reflect the expenditures that would have occurred 
 69.9   during the base year had the program been operated for the full 
 69.10  school year. 
 69.11     Sec. 8.  Minnesota Statutes 1996, section 124.273, 
 69.12  subdivision 1e, is amended to read: 
 69.13     Subd. 1e.  [AID.] A district's limited English proficiency 
 69.14  aid for fiscal year 1996 1998 and later equals the aid 
 69.15  percentage factor under section 124.3201, subdivision 1, times 
 69.16  the district's limited English proficiency revenue.  For fiscal 
 69.17  year 1999 and later, a district's limited English proficiency 
 69.18  aid equals the district's limited proficiency revenue. 
 69.19     Sec. 9.  Minnesota Statutes 1996, section 124.273, 
 69.20  subdivision 1f, is amended to read: 
 69.21     Subd. 1f.  [STATE TOTAL LEP REVENUE.] (a) The state total 
 69.22  limited English proficiency programs revenue for fiscal 
 69.23  year 1996 1998 equals $12,202,000 $14,629,000.  The state total 
 69.24  limited English proficiency programs revenue for fiscal 
 69.25  year 1997 1998 equals $13,299,000 $16,092,000.  
 69.26     (b) The state total limited English proficiency programs 
 69.27  revenue for later fiscal years equals: 
 69.28     (1) the state total limited English proficiency programs 
 69.29  revenue for the preceding fiscal year; times 
 69.30     (2) the program growth factor under section 124.3201, 
 69.31  subdivision 1; times 
 69.32     (3) the ratio of the state total number of pupils with 
 69.33  limited English proficiency for the current fiscal year to the 
 69.34  state total number of pupils with limited English proficiency 
 69.35  for the preceding fiscal year. 
 69.36     Sec. 10.  Minnesota Statutes 1996, section 124.273, 
 70.1   subdivision 1g, is amended to read: 
 70.2      Subd. 1g.  [SCHOOL DISTRICT LEP REVENUE.] (a) A school 
 70.3   district's limited English proficiency programs revenue for 
 70.4   fiscal year 1996 and later equals the state total limited 
 70.5   English proficiency programs revenue, minus the amount 
 70.6   determined under paragraph (b), times the ratio of the 
 70.7   district's adjusted limited English proficiency programs base 
 70.8   revenue to the state total adjusted limited English proficiency 
 70.9   programs base revenue, plus the amount in paragraph (c). 
 70.10     (b) Notwithstanding paragraph (a), if the limited English 
 70.11  proficiency programs base revenue for a district equals zero, 
 70.12  the limited English proficiency programs revenue equals the sum 
 70.13  of the following amounts, computed using current year data: 
 70.14     (1) 68 percent of the salary of one full-time equivalent 
 70.15  teacher for each 40 pupils of limited English proficiency 
 70.16  enrolled, or 68 percent of the salary of one-half of a full-time 
 70.17  teacher in a district with 20 or fewer pupils of limited English 
 70.18  proficiency enrolled; and 
 70.19     (2) for supplies and equipment purchased or rented for use 
 70.20  in the instruction of pupils of limited English proficiency an 
 70.21  amount equal to 47 percent of the sum actually spent by the 
 70.22  district but not to exceed an average of $47 in any one school 
 70.23  year for each pupil of limited English proficiency receiving 
 70.24  instruction. 
 70.25     (c) $200 times the number of limited English proficient 
 70.26  pupils residing in the district in the current year times the 
 70.27  lesser of one or the quotient of the ratio of the number of 
 70.28  limited English proficiency pupils residing in the district in 
 70.29  the current year to the number of pupils in average daily 
 70.30  membership residing in the district and 11.5 percent. 
 70.31     Sec. 11.  Minnesota Statutes 1996, section 124.312, 
 70.32  subdivision 4, is amended to read: 
 70.33     Subd. 4.  [INTEGRATION REVENUE.] For fiscal year years 
 70.34  1996, 1997, and later fiscal years 1998, integration revenue 
 70.35  equals the sum of integration aid and integration levy under 
 70.36  section 124.912, subdivision 2. 
 71.1      Sec. 12.  Minnesota Statutes 1996, section 124.312, 
 71.2   subdivision 5, is amended to read: 
 71.3      Subd. 5.  [INTEGRATION AID.] For fiscal year years 1996, 
 71.4   1997, and later fiscal years 1998, integration aid equals the 
 71.5   following amounts: 
 71.6      (1) for independent school district No. 709, Duluth, 
 71.7   $1,385,000; 
 71.8      (2) for independent school district No. 625, St. Paul, 
 71.9   $8,090,700; and 
 71.10     (3) for special school district No. 1, Minneapolis, 
 71.11  $9,368,300. 
 71.12     Sec. 13.  Minnesota Statutes 1996, section 124.313, is 
 71.13  amended to read: 
 71.14     124.313 [TARGETED NEEDS REVENUE.] 
 71.15     For fiscal year 1996 1999 and thereafter, a school 
 71.16  district's targeted needs revenue equals the sum of: 
 71.17     (1) assurance of mastery revenue according to section 
 71.18  124.311; plus 
 71.19     (2) the district's limited English proficiency revenue 
 71.20  computed according to section 124.273, subdivision 1d; plus 
 71.21     (3) integration revenue computed according to section 
 71.22  124.312, subdivision 4. 
 71.23     Sec. 14.  Minnesota Statutes 1996, section 124.314, 
 71.24  subdivision 1, is amended to read: 
 71.25     Subdivision 1.  [AID.] For fiscal year 1996 1999 and 
 71.26  thereafter, a school district's targeted needs aid equals the 
 71.27  sum of its assurance of mastery aid according to section 
 71.28  124.311, and its limited English proficiency aid according to 
 71.29  section 124.273, subdivision 1e, and its integration aid 
 71.30  according to section 124.312, subdivision 5. 
 71.31     Sec. 15.  Minnesota Statutes 1996, section 124.314, 
 71.32  subdivision 2, is amended to read: 
 71.33     Subd. 2.  [LEVY.] For fiscal year 1996 1999 and thereafter, 
 71.34  a school district's targeted needs levy equals the sum of its 
 71.35  integration levy under section 124.912, subdivision 2, and that 
 71.36  portion of its special education levy attributed to the limited 
 72.1   English proficiency program. 
 72.2      Sec. 16.  [124.315] [INTEGRATION REVENUE.] 
 72.3      Subdivision 1.  [USE OF THE REVENUE.] Integration revenue 
 72.4   under this section must be used for programs established under a 
 72.5   desegregation plan mandated by the state board or under court 
 72.6   order, to increase learning opportunities and reduce the 
 72.7   learning gap between learners living in high concentrations of 
 72.8   poverty and their peers. 
 72.9      Subd. 2.  [SEPARATE ACCOUNT.] Integration revenue shall be 
 72.10  maintained in a separate account to identify expenditures for 
 72.11  salaries and programs related to this revenue. 
 72.12     Subd. 3.  [INTEGRATION REVENUE.] For fiscal year 1999 and 
 72.13  later fiscal years, integration revenue equals the following 
 72.14  amounts: 
 72.15     (1) for independent school district No. 709, Duluth, $193 
 72.16  times the actual pupil units for the school year; 
 72.17     (2) for independent school district No. 625, St. Paul, $427 
 72.18  times the actual pupil units for the school year; 
 72.19     (3) for special school district No. 1, Minneapolis, $523 
 72.20  times the actual pupil units for the school year; and 
 72.21     (4) for a district not listed in clause (1), (2), or (3) 
 72.22  that is required to implement a plan according to the 
 72.23  requirements of Minnesota Rules, parts 3535.0200 to 3535.2200, 
 72.24  the lesser of the actual cost of implementing the plan during 
 72.25  the fiscal year or $93 times the actual pupil units for the 
 72.26  school year. 
 72.27     Subd. 4.  [INTEGRATION LEVY.] A district may levy an amount 
 72.28  equal to 46 percent of the district's integration revenue as 
 72.29  defined in subdivision 3. 
 72.30     Subd. 5.  [INTEGRATION AID.] A district's integration aid 
 72.31  equals 54 percent of the district's integration revenue as 
 72.32  defined in subdivision 3. 
 72.33     Subd. 6.  [ALTERNATIVE ATTENDANCE PROGRAMS.] (a) The 
 72.34  integration aid under subdivision 5 must be adjusted for each 
 72.35  pupil attending a nonresident district under sections 120.062, 
 72.36  120.075, 120.0751, 120.0752, and 124C.45 to 124C.48, if the 
 73.1   enrollment of the pupil in the nonresident district contributes 
 73.2   to desegregation or integration purposes.  The adjustments must 
 73.3   be made according to this subdivision.  
 73.4      (b) Aid paid to the district of the pupil's residence must 
 73.5   be reduced by an amount equal to the revenue per actual pupil 
 73.6   unit of the resident district times the number of actual pupil 
 73.7   units attributable to the pupil for the time the pupil is 
 73.8   enrolled in a nonresident district. 
 73.9      (c) Aid paid to a district serving nonresidents must be 
 73.10  increased by an amount equal to the aid reduction to the 
 73.11  resident district under paragraphs (b) and (d).  
 73.12     (d) If the amount of the reduction to be made from the aid 
 73.13  of a district is greater than the amount of aid otherwise due 
 73.14  the district, the excess reduction must be made from other state 
 73.15  aids due the district. 
 73.16     Sec. 17.  Minnesota Statutes 1996, section 124.3201, 
 73.17  subdivision 1, is amended to read: 
 73.18     Subdivision 1.  [DEFINITIONS.] For the purposes of this 
 73.19  section and sections 124.3202 and 124.321, the definitions in 
 73.20  this subdivision apply. 
 73.21     (a) "Base year" for fiscal year 1996 and fiscal year 1997 
 73.22  means the 1994 summer program and the 1994-1995 school year.  
 73.23  Base year for 1998 and later fiscal years means the second 
 73.24  fiscal year preceding the fiscal year for which aid will be paid.
 73.25     (b) "Basic revenue" has the meaning given it in section 
 73.26  124A.22, subdivision 2.  For the purposes of computing basic 
 73.27  revenue pursuant to this section, each child with a disability 
 73.28  shall be counted as prescribed in section 124.17, subdivision 1. 
 73.29     (c) "Essential personnel" means teachers, related services, 
 73.30  and support services staff providing direct services to students.
 73.31     (d) "Average daily membership" has the meaning given it in 
 73.32  section 124.17. 
 73.33     (e) "Program growth factor" means 1.00 for fiscal year 1998 
 73.34  2000 and later. 
 73.35     (f) "Aid percentage factor" means 60 percent for fiscal 
 73.36  year 1996, 70 percent for fiscal year 1997, 80 percent for 
 74.1   fiscal year 1998, 90 percent for fiscal year 1999, and 100 
 74.2   percent for fiscal years 2000 and later. 
 74.3      (g) "Levy percentage factor" means 100 minus the aid 
 74.4   percentage factor for that year. 
 74.5      Sec. 18.  Minnesota Statutes 1996, section 124.3201, 
 74.6   subdivision 2, is amended to read: 
 74.7      Subd. 2.  [SPECIAL EDUCATION BASE REVENUE.] (a) The special 
 74.8   education base revenue equals the sum of the following amounts 
 74.9   computed using base year data: 
 74.10     (1) 68 percent of the salary of each essential person 
 74.11  employed in the district's program for children with a 
 74.12  disability during the regular school year, whether the person is 
 74.13  employed by one or more districts; 
 74.14     (2) for the Minnesota state academy for the deaf or the 
 74.15  Minnesota state academy for the blind, 68 percent of the salary 
 74.16  of each instructional aide assigned to a child attending the 
 74.17  academy, if that aide is required by the child's individual 
 74.18  education plan; 
 74.19     (3) for special instruction and services provided to any 
 74.20  pupil by contracting with public, private, or voluntary agencies 
 74.21  other than school districts, in place of special instruction and 
 74.22  services provided by the district, 52 percent of the difference 
 74.23  between the amount of the contract and the basic revenue of the 
 74.24  district for that pupil for the fraction of the school day the 
 74.25  pupil receives services under the contract; 
 74.26     (4) for special instruction and services provided to any 
 74.27  pupil by contracting for services with public, private, or 
 74.28  voluntary agencies other than school districts, that are 
 74.29  supplementary to a full educational program provided by the 
 74.30  school district, 52 percent of the amount of the contract for 
 74.31  that pupil; 
 74.32     (5) for supplies and equipment purchased or rented for use 
 74.33  in the instruction of children with a disability an amount equal 
 74.34  to 47 percent of the sum actually expended by the district but 
 74.35  not to exceed an average of $47 in any one school year for each 
 74.36  child with a disability receiving instruction; and 
 75.1      (6) for fiscal years 1997 and later, special education base 
 75.2   revenue shall include amounts under clauses (1) to (5) for 
 75.3   special education summer programs provided during the base year 
 75.4   for that fiscal year; and 
 75.5      (7) for fiscal years 1999 and later, the cost of providing 
 75.6   transportation services for children with disabilities under 
 75.7   section 124.225, subdivision 1, paragraph (b), clause (4). 
 75.8      (b) If requested by a school district operating a special 
 75.9   education program during the base year for less than the full 
 75.10  school year, the commissioner may adjust the base revenue to 
 75.11  reflect the expenditures that would have occurred during the 
 75.12  base year had the program been operated for the full school year.
 75.13     Sec. 19.  Minnesota Statutes 1996, section 124.3201, 
 75.14  subdivision 3, is amended to read: 
 75.15     Subd. 3.  [ADJUSTED SPECIAL EDUCATION BASE REVENUE.] For 
 75.16  fiscal year 1996 1997 and later, a district's adjusted special 
 75.17  education base revenue equals the district's special education 
 75.18  base revenue times the ratio of the district's average daily 
 75.19  membership for the current school year to the district's average 
 75.20  daily membership for the base year; plus the district's special 
 75.21  education tuition revenue under subdivision 2a and special 
 75.22  education court placement revenue under subdivision 2b. 
 75.23     Sec. 20.  Minnesota Statutes 1996, section 124.3201, 
 75.24  subdivision 4, is amended to read: 
 75.25     Subd. 4.  [STATE TOTAL SPECIAL EDUCATION REVENUE.] The 
 75.26  state total special education revenue for fiscal year 1996 1998 
 75.27  equals $327,846,000 $358,542,000.  The state total special 
 75.28  education revenue for fiscal year 1997 1999 equals 
 75.29  $347,810,000 $435,322,000.  The state total special education 
 75.30  revenue for later fiscal years equals:  
 75.31     (1) the state total special education revenue for the 
 75.32  preceding fiscal year; times 
 75.33     (2) the program growth factor; times 
 75.34     (3) the ratio of the state total average daily membership 
 75.35  for the current fiscal year to the state total average daily 
 75.36  membership for the preceding fiscal year. 
 76.1      Sec. 21.  Minnesota Statutes 1996, section 124.323, 
 76.2   subdivision 1, is amended to read: 
 76.3      Subdivision 1.  [DEFINITIONS.] In this section, the 
 76.4   definitions in this subdivision apply. 
 76.5      (a) "Unreimbursed special education cost" means the sum of 
 76.6   the following: 
 76.7      (1) expenditures for teachers' salaries, contracted 
 76.8   services, supplies, and equipment, and transportation services 
 76.9   eligible for revenue under sections 124.3201 and 124.3202; plus 
 76.10     (2) expenditures for tuition bills received under section 
 76.11  120.17 for services eligible for revenue under sections 
 76.12  124.3201, subdivision 2, and 124.3202, subdivision 1; minus 
 76.13     (3) revenue for teachers' salaries, contracted services, 
 76.14  supplies, and equipment under sections 124.3201 and 124.3202; 
 76.15  minus 
 76.16     (4) tuition receipts under section 120.17 for services 
 76.17  eligible for revenue under sections 124.3201, subdivision 2, and 
 76.18  124.3202, subdivision 1. 
 76.19     (b) "General revenue," for fiscal year 1996, means the sum 
 76.20  of the general education revenue according to section 124A.22, 
 76.21  subdivision 1, as adjusted according to section 124A.036, 
 76.22  subdivision 5, plus the total referendum revenue according to 
 76.23  section 124A.03, subdivision 1e.  For fiscal years 1997 and 
 76.24  later, "general revenue" means the sum of the general education 
 76.25  revenue according to section 124A.22, subdivision 1, as adjusted 
 76.26  according to section 124A.036, subdivision 5, plus the total 
 76.27  referendum revenue minus transportation sparsity revenue minus 
 76.28  total operating capital revenue. 
 76.29     Sec. 22.  Minnesota Statutes 1996, section 124.323, 
 76.30  subdivision 2, is amended to read: 
 76.31     Subd. 2.  [EXCESS COST REVENUE.] For 1996 1997 and later 
 76.32  fiscal years, a district's special education excess cost revenue 
 76.33  equals 70 the greatest of: 
 76.34     (a) 70 percent of the difference between (1) the district's 
 76.35  unreimbursed special education cost and (2) six percent for 
 76.36  fiscal year 1996 and 5.7 percent for fiscal year 1997 and later 
 77.1   years of the district's general revenue; 
 77.2      (b) 70 percent of the difference between (1) the increase 
 77.3   in the district's unreimbursed special education cost between 
 77.4   the base year as defined in section 124.3201, subdivision 1, and 
 77.5   the current year and (2) 1.6 percent of the district's general 
 77.6   revenue; or 
 77.7      (c) zero. 
 77.8      Sec. 23.  Minnesota Statutes 1996, section 124.48, 
 77.9   subdivision 3, is amended to read: 
 77.10     Subd. 3.  [INDIAN SCHOLARSHIP COMMITTEE.] The Minnesota 
 77.11  Indian scholarship committee is established.  Members shall be 
 77.12  appointed by the state board with the assistance of the Indian 
 77.13  affairs council as provided in section 3.922, subdivision 6.  
 77.14  Members shall be reimbursed for expenses as provided in section 
 77.15  15.059, subdivision 6.  The state board shall determine the 
 77.16  membership terms and duration of the committee, which expires no 
 77.17  later than June 30, 1997 2001.  The committee shall provide 
 77.18  advice to the state board in awarding scholarships to eligible 
 77.19  American Indian students and in administering the state board's 
 77.20  duties regarding awarding of American Indian post-secondary 
 77.21  preparation grants to school districts. 
 77.22     Sec. 24.  Minnesota Statutes 1996, section 124.481, is 
 77.23  amended to read: 
 77.24     124.481 [INDIAN POST-SECONDARY PREPARATION GRANTS.] 
 77.25     The state board of education, with the advice of the 
 77.26  Minnesota Indian scholarship committee, may make grants to 
 77.27  school districts or tribal grant or contract schools to support 
 77.28  post-secondary preparation for secondary pupils who are of 
 77.29  one-fourth or more Indian ancestry and who, in the opinion of 
 77.30  the superintendent, have the capabilities to benefit from higher 
 77.31  education.  Distribution of the grants must be in accordance 
 77.32  with a plan prepared by the state board, with the advice of the 
 77.33  Minnesota Indian scholarship committee, that describes the 
 77.34  objectives and methods of implementing the grant program, 
 77.35  including the manner in which grants will be distributed in 
 77.36  proportion to the geographical distribution of the Indian 
 78.1   population of the state. 
 78.2      Sec. 25.  Minnesota Statutes 1996, section 124.574, 
 78.3   subdivision 1, is amended to read: 
 78.4      Subdivision 1.  The purpose of this section is to provide a 
 78.5   method to fund programs for secondary vocational education 
 78.6   school-to-work activities for children with a disability.  As 
 78.7   used in this section, the term "children with a disability" 
 78.8   shall have the meaning ascribed to it in section 120.03. 
 78.9      Sec. 26.  Minnesota Statutes 1996, section 124.574, 
 78.10  subdivision 2d, is amended to read: 
 78.11     Subd. 2d.  [BASE REVENUE.] (a) The secondary vocational 
 78.12  school-to-work disabled program base revenue equals the sum of 
 78.13  the following amounts computed using base year data: 
 78.14     (1) 68 percent of the salary of each essential licensed 
 78.15  person who provides direct instructional services to students 
 78.16  employed during that fiscal year for services rendered in that 
 78.17  district's secondary vocational education programs 
 78.18  school-to-work activities for children with a disability; 
 78.19     (2) 47 percent of the costs of necessary equipment for 
 78.20  secondary vocational education programs school-to-work 
 78.21  activities for children with a disability; 
 78.22     (3) 47 percent of the costs of necessary travel between 
 78.23  instructional sites by secondary vocational education 
 78.24  school-to-work teachers of children with a disability but not 
 78.25  including travel to and from local, regional, district, state, 
 78.26  or national vocational student organization meetings; 
 78.27     (4) 47 percent of the costs of necessary supplies for 
 78.28  secondary vocational education programs school-to-work 
 78.29  activities for children with a disability but not to exceed an 
 78.30  average of $47 in any one school year for each child with a 
 78.31  disability receiving these services; 
 78.32     (5) for secondary vocational education programs 
 78.33  school-to-work activities for children with disabilities 
 78.34  provided by a contract approved by the commissioner with public, 
 78.35  private, or voluntary agencies other than a Minnesota school 
 78.36  district or cooperative center, in place of programs provided by 
 79.1   the district, 52 percent of the difference between the amount of 
 79.2   the contract and the basic revenue of the district for that 
 79.3   pupil for the fraction of the school day the pupil receives 
 79.4   services under the contract; 
 79.5      (6) for secondary vocational education programs 
 79.6   school-to-work activities for children with disabilities 
 79.7   provided by a contract approved by the commissioner with public, 
 79.8   private, or voluntary agencies other than a Minnesota school 
 79.9   district or cooperative center, that are supplementary to a full 
 79.10  educational program provided by the school district, 52 percent 
 79.11  of the amount of the contract; and 
 79.12     (7) for a contract approved by the commissioner with 
 79.13  another Minnesota school district or cooperative center for 
 79.14  vocational evaluation services for children with a disability 
 79.15  for children that are not yet enrolled in grade 12, 52 percent 
 79.16  of the amount of the contract. 
 79.17     (b) If requested by a school district operating a 
 79.18  school-to-work disabled program during the base year for less 
 79.19  than the full school year, the commissioner may adjust the base 
 79.20  revenue to reflect the expenditures that would have occurred 
 79.21  during the base year had the program been operated for the full 
 79.22  year. 
 79.23     Sec. 27.  Minnesota Statutes 1996, section 124.574, 
 79.24  subdivision 2f, is amended to read: 
 79.25     Subd. 2f.  [STATE TOTAL SECONDARY VOCATIONAL-DISABLED 
 79.26  SCHOOL-TO-WORK PROGRAM-DISABLED REVENUE.] The state 
 79.27  total secondary vocational-disabled school-to-work 
 79.28  program-disabled revenue for fiscal year 1996 1998 equals 
 79.29  $8,520,000 $8,924,000.  The state total secondary 
 79.30  vocational-disabled school-to-work program-disabled revenue for 
 79.31  fiscal year 1997 1999 equals $8,830,000 $8,976,000.  The state 
 79.32  total secondary vocational-disabled school-to-work 
 79.33  program-disabled revenue for later fiscal years equals:  
 79.34     (1) the state total secondary vocational-disabled revenue 
 79.35  for the preceding fiscal year; times 
 79.36     (2) the program growth factor; times 
 80.1      (3) the ratio of the state total average daily membership 
 80.2   for the current fiscal year to the state total average daily 
 80.3   membership for the preceding fiscal year. 
 80.4      Sec. 28.  Minnesota Statutes 1996, section 124.574, 
 80.5   subdivision 5, is amended to read: 
 80.6      Subd. 5.  The aid provided pursuant to this section shall 
 80.7   be paid only for services rendered as designated in subdivision 
 80.8   2 or for the costs designated in subdivision 3 which are 
 80.9   incurred in secondary vocational education programs 
 80.10  school-to-work activities for children with a disability which 
 80.11  are approved by the commissioner of children, families, and 
 80.12  learning and operated in accordance with rules promulgated by 
 80.13  the state board.  These rules shall be subject to the 
 80.14  restrictions provided in section 124.573, subdivision 3.  The 
 80.15  procedure for application for approval of these programs shall 
 80.16  be as provided in section 124.32, subdivisions 7 and 10, and the 
 80.17  application review process shall be conducted by the vocational 
 80.18  education section of the state office of lifework development in 
 80.19  the department. 
 80.20     Sec. 29.  Minnesota Statutes 1996, section 124.574, 
 80.21  subdivision 6, is amended to read: 
 80.22     Subd. 6.  All aid pursuant to this section shall be paid to 
 80.23  the district or cooperative center providing the services.  All 
 80.24  aid received by a district or center from any source for 
 80.25  secondary vocational education school-to-work activities for 
 80.26  children with a disability shall be utilized solely for that 
 80.27  purpose. 
 80.28     Sec. 30.  Minnesota Statutes 1996, section 124.574, 
 80.29  subdivision 9, is amended to read: 
 80.30     Subd. 9.  [REVENUE ALLOCATION FROM COOPERATIVE CENTERS AND 
 80.31  INTERMEDIATE DISTRICTS.] For purposes of this section and 
 80.32  section 124.321, a cooperative center or an intermediate 
 80.33  district shall allocate its approved expenditures for secondary 
 80.34  vocational programs school-to-work activities for children with 
 80.35  a disability among participating school districts.  Aid for 
 80.36  secondary vocational programs school-to-work activities for 
 81.1   children with a disability for services provided by a 
 81.2   cooperative or intermediate district shall be paid to the 
 81.3   participating school districts. 
 81.4      Sec. 31.  Minnesota Statutes 1996, section 124.86, 
 81.5   subdivision 2, is amended to read: 
 81.6      Subd. 2.  [REVENUE AMOUNT.] An American Indian-controlled 
 81.7   tribal contract or grant school that is located on a reservation 
 81.8   within the state and that complies with the requirements in 
 81.9   subdivision 1 is eligible to receive tribal contract or grant 
 81.10  school aid.  The amount of aid is derived by: 
 81.11     (1) multiplying the formula allowance under section 
 81.12  124A.22, subdivision 2, less $170, times the difference between 
 81.13  (a) the actual pupil units as defined in section 124A.02, 
 81.14  subdivision 15, in average daily membership, excluding section 
 81.15  124.17, subdivision 2f, and (b) the number of pupils for the 
 81.16  current school year, weighted according to section 124.17, 
 81.17  subdivision 1, receiving benefits under section 123.933 or 
 81.18  123.935 or for which the school is receiving reimbursement under 
 81.19  section 126.23; 
 81.20     (2) adding to the result in clause (1) an amount equal to 
 81.21  the product of the formula allowance under section 124A.22, 
 81.22  subdivision 2, less $300 times the tribal contract compensation 
 81.23  revenue pupil units; 
 81.24     (3) subtracting from the result in clause (1) (2) the 
 81.25  amount of money allotted to the school by the federal government 
 81.26  through Indian School Equalization Program of the Bureau of 
 81.27  Indian Affairs, according to Code of Federal Regulations, title 
 81.28  25, part 39, subparts A to E, for the basic program as defined 
 81.29  by section 39.11, paragraph (b), for the base rate as applied to 
 81.30  kindergarten through twelfth grade, excluding small school 
 81.31  adjustments and additional weighting, but not money allotted 
 81.32  through subparts F to L for contingency funds, school board 
 81.33  training, student training, interim maintenance and minor 
 81.34  repair, interim administration cost, prekindergarten, and 
 81.35  operation and maintenance, and the amount of money that is 
 81.36  received according to section 126.23; 
 82.1      (3) (4) dividing the result in clause (2) (3) by the sum 
 82.2   of the actual pupil units in average daily membership, excluding 
 82.3   section 124.17, subdivision 2f, plus the tribal contract 
 82.4   compensation revenue pupil units; and 
 82.5      (4) (5) multiplying the sum of the actual pupil units, 
 82.6   including section 124.17, subdivision 2f, in average daily 
 82.7   membership plus the tribal contract compensation revenue pupil 
 82.8   units by the lesser of $1,500 or the sum of the result in 
 82.9   clause (3) plus $300 (4). 
 82.10     Sec. 32.  Minnesota Statutes 1996, section 124.86, is 
 82.11  amended by adding a subdivision to read: 
 82.12     Subd. 5.  [TRIBAL CONTRACT PUPIL UNITS.] Pupil units for 
 82.13  pupils enrolled in tribal contract schools shall be used only 
 82.14  for the purpose of computing tribal contract aid according to 
 82.15  this section. 
 82.16     Sec. 33.  Minnesota Statutes 1996, section 124.912, 
 82.17  subdivision 6, is amended to read: 
 82.18     Subd. 6.  [CRIME RELATED COSTS.] For taxes levied in 1991 
 82.19  and subsequent years, payable in 1992 and subsequent years, each 
 82.20  school district may make a levy on all taxable property located 
 82.21  within the school district for the purposes specified in this 
 82.22  subdivision.  The maximum amount which may be levied for all 
 82.23  costs under this subdivision shall be equal to $1 $1.50 
 82.24  multiplied by the population of the school district.  For 
 82.25  purposes of this subdivision, "population" of the school 
 82.26  district means the same as contained in section 275.14.  The 
 82.27  proceeds of the levy must be used for reimbursing the cities and 
 82.28  counties who contract with the school district for the following 
 82.29  purposes:  (1) to pay the costs incurred for the salaries, 
 82.30  benefits, and transportation costs of peace officers and 
 82.31  sheriffs for liaison services in the district's middle and 
 82.32  secondary schools; (2) to pay the costs for a drug abuse 
 82.33  prevention program as defined in Minnesota Statutes 1991 
 82.34  Supplement, section 609.101, subdivision 3, paragraph (f), in 
 82.35  the elementary schools; or (3) to pay the costs for a gang 
 82.36  resistance education training curriculum in the middle schools.  
 83.1   The school district must initially attempt to contract for these 
 83.2   services with the police department of each city or the 
 83.3   sheriff's department of the county within the school district 
 83.4   containing the school receiving the services.  If a local police 
 83.5   department or a county sheriff's department does not wish to 
 83.6   provide the necessary services, the district may contract for 
 83.7   these services with any other police or sheriff's department 
 83.8   located entirely or partially within the school district's 
 83.9   boundaries.  The levy authorized under this subdivision is not 
 83.10  included in determining the school district's levy limitations. 
 83.11     Sec. 34.  Minnesota Statutes 1996, section 124C.498, 
 83.12  subdivision 1, is amended to read: 
 83.13     Subdivision 1.  [POLICY AND PURPOSE.] (a) A metropolitan 
 83.14  magnet school grant program is established for the purpose of 
 83.15  promoting integrated education for students in prekindergarten 
 83.16  through grade 12, increase mutual understanding among all 
 83.17  students, and address the inability of local school districts to 
 83.18  provide required construction funds through local property 
 83.19  taxes.  The program seeks to encourage school districts located 
 83.20  in whole or in part within the seven-county metropolitan area to 
 83.21  make available to school age children residing in the 
 83.22  metropolitan area those educational programs, services, and 
 83.23  facilities that are essential to meeting all children's needs 
 83.24  and abilities.  The program anticipates using the credit of the 
 83.25  state, to a limited degree, to provide grants to metropolitan 
 83.26  area school districts to improve the educational opportunities 
 83.27  and academic achievement of disadvantaged children and the 
 83.28  facilities that are available to those children.  
 83.29     (b) Metropolitan magnet school programs established under 
 83.30  this section are exempt from the same statutes and rules 
 83.31  applicable to a school under section 124A.50. 
 83.32     Sec. 35.  Minnesota Statutes 1996, section 124C.498, 
 83.33  subdivision 3, is amended to read: 
 83.34     Subd. 3.  [GRANT APPLICATION PROCESS.] (a) Any group of 
 83.35  school districts that meets the criteria required under 
 83.36  paragraph (b)(i) may apply for a magnet school grant in an 
 84.1   amount not to exceed $10,000,000 $15,000,000 for the approved 
 84.2   costs or expansion of a magnet school facility. 
 84.3      (b)(i) Any group of districts that submits an application 
 84.4   for a grant shall submit a proposal to the commissioner for 
 84.5   review and comment under section 121.15, and the commissioner 
 84.6   shall prepare a review and comment on the proposed magnet school 
 84.7   facility, regardless of the amount of the capital expenditure 
 84.8   required to design, acquire, construct, remodel, improve, 
 84.9   furnish, or equip the facility.  The commissioner must not 
 84.10  approve an application for a magnet school grant for any 
 84.11  facility unless the facility receives a favorable review and 
 84.12  comment under section 121.15 and the participating districts: 
 84.13     (1) establish a joint powers board under section 471.59 to 
 84.14  represent all participating districts and govern the magnet 
 84.15  school facility; 
 84.16     (2) design the planned magnet school facility to meet the 
 84.17  applicable requirements contained in Minnesota Rules, chapter 
 84.18  3535; 
 84.19     (3) submit a statement of need, including reasons why the 
 84.20  magnet school will facilitate integration and improve learning; 
 84.21     (4) prepare an educational plan that includes input from 
 84.22  both community and professional staff; and 
 84.23     (5) develop an education program that will improve learning 
 84.24  opportunities for students attending the magnet school. 
 84.25     (ii) The districts may develop a plan that permits social 
 84.26  service, health, and other programs serving students and 
 84.27  community residents to be located within the magnet school 
 84.28  facility.  The commissioner shall consider this plan when 
 84.29  preparing a review and comment on the proposed facility.  
 84.30     (c) When two or more districts enter into an agreement 
 84.31  establishing a joint powers board to govern the magnet school 
 84.32  facility, all member districts shall have the same powers.  
 84.33     (d) A joint powers board of participating school districts 
 84.34  established under paragraphs (b) and (c) that intends to apply 
 84.35  for a grant shall adopt a resolution stating the costs of the 
 84.36  proposed project, the purpose for which the debt is to be 
 85.1   incurred, and an estimate of the dates when the contracts for 
 85.2   the proposed project will be completed.  A copy of the 
 85.3   resolution must accompany any application for a state grant 
 85.4   under this section. 
 85.5      (e)(i) The commissioner shall examine and consider all 
 85.6   grant applications.  If the commissioner finds that any joint 
 85.7   powers district is not a qualified grant applicant, the 
 85.8   commissioner shall promptly notify that joint powers board.  The 
 85.9   commissioner shall make awards to no more than two qualified 
 85.10  applicants whose applications have been on file with the 
 85.11  commissioner more than 30 days.  
 85.12     (ii) A grant award is subject to verification by the joint 
 85.13  powers board under paragraph (f).  A grant award must not be 
 85.14  made until the participating districts determine the site of the 
 85.15  magnet school facility.  If the total amount of the approved 
 85.16  applications exceeds the amount of grant funding that is or can 
 85.17  be made available, the commissioner shall allot the available 
 85.18  amount equally between the approved applicant districts.  The 
 85.19  commissioner shall promptly certify to each qualified joint 
 85.20  powers board the amount, if any, of the grant awarded to it. 
 85.21     (f) Each grant must be evidenced by a contract between the 
 85.22  joint powers board and the state acting through the 
 85.23  commissioner.  The contract obligates the state to pay to the 
 85.24  joint powers board an amount computed according to paragraph 
 85.25  (e)(ii) and a schedule, and terms and conditions acceptable to 
 85.26  the commissioner of finance. 
 85.27     Sec. 36.  [126.225] [ADDITIONAL REVENUE FOR HOMELESS 
 85.28  STUDENTS.] 
 85.29     In addition to revenue received under section 126.22, 
 85.30  subdivisions 7 and 8, and section 126.23, subdivision 1, a 
 85.31  district shall receive additional revenue for homeless pupils 
 85.32  who are eligible to participate in the graduation incentives 
 85.33  program according to section 126.22, subdivision 1, paragraph 
 85.34  (a), clause (9), equal to $100 per pupil unit.  The revenue 
 85.35  received under this section shall be used for expanding 
 85.36  education services to include preschool, after-school, or summer 
 86.1   school programs to provide transition and follow-up services to 
 86.2   homeless pupils who are placed or mainstreamed in a district 
 86.3   school, or to provide parent education and support services.  
 86.4   The additional revenue shall be paid to the public or nonprofit 
 86.5   school program providing services to homeless pupils. 
 86.6      Sec. 37.  [126.256] [AMERICAN SIGN LANGUAGE.] 
 86.7      Satisfactory completion of courses in American sign 
 86.8   language in a public elementary or secondary school shall be 
 86.9   accorded equal standing with satisfactory completion of courses 
 86.10  in any world language. 
 86.11     Sec. 38.  Minnesota Statutes 1996, section 126.531, 
 86.12  subdivision 3, is amended to read: 
 86.13     Subd. 3.  Each committee shall be reimbursed for expenses 
 86.14  according to section 15.059, subdivision 6.  The state board 
 86.15  shall determine the membership terms and the duration of each 
 86.16  committee, which expire no later than June 30, 1997 2001. 
 86.17     Sec. 39.  [126.79] [LEARN AND EARN GRADUATION ACHIEVEMENT 
 86.18  PROGRAM.] 
 86.19     Subdivision 1.  [GRANT PROGRAM ESTABLISHED.] A learn and 
 86.20  earn graduation achievement grant program is established under 
 86.21  the administration of the commissioner of children, families, 
 86.22  and learning.  The purpose of the program is to aid local 
 86.23  communities in their efforts to decrease youth crime by 
 86.24  improving the secondary educational success and increasing the 
 86.25  post-secondary educational opportunities of low-income high 
 86.26  school students who reside in and attend schools in communities 
 86.27  that have a high level of poverty and juvenile crime.  The 
 86.28  commissioner shall make grants under this section to applicants 
 86.29  to establish local learn and earn programs that are 
 86.30  school-centered and that use a community-based approach that 
 86.31  provides eligible youth in grades 9 through 12 with individually 
 86.32  tailored opportunities for academic enrichment, community 
 86.33  service, and personal development that lead to a high school 
 86.34  diploma and post-secondary education. 
 86.35     Subd. 2.  [PROGRAM OUTCOME MEASURES.] The goals of the 
 86.36  learn and earn graduation achievement program are to: 
 87.1      (1) increase school attendance; 
 87.2      (2) decrease school suspensions and dropouts; 
 87.3      (3) increase youth academic achievement, measured by 
 87.4   graduation rates and post-secondary enrollment; and 
 87.5      (4) decrease juvenile crime. 
 87.6      Subd. 3.  [LOCAL PROGRAMS; APPLICATION PROCEDURE; GRANT 
 87.7   AWARDS.] The commissioner shall make grants to eligible 
 87.8   applicants to establish local learn and earn programs.  Each 
 87.9   program shall operate for at least a four-year period.  A local 
 87.10  program shall select its participants from among eligible 
 87.11  students who are entering or are in the ninth grade at the 
 87.12  inception of the program.  A program may not refill a program 
 87.13  slot with another student if a student drops out of the program. 
 87.14  Students selected to participate in the program shall be 
 87.15  considered part of the program class and students who drop out 
 87.16  may return to the program at any time prior to graduation. 
 87.17     The commissioner shall establish the application procedure 
 87.18  for awarding grants under this section.  The commissioner shall 
 87.19  begin awarding grants by September 1, 1997. 
 87.20     Subd. 4.  [GRANT ELIGIBILITY.] An applicant for a grant 
 87.21  must be a public secondary school, a nonprofit community-based 
 87.22  agency cooperating with a secondary school, area learning 
 87.23  center, or alternative learning program approved by the 
 87.24  commissioner.  Grant applicants must meet all of the following 
 87.25  criteria: 
 87.26     (1) at least 20 percent of the students at the 
 87.27  participating school or program are eligible to receive a free 
 87.28  school lunch; 
 87.29     (2) the area which the participating school or program 
 87.30  serves has a high juvenile crime rate or has experienced a 
 87.31  significant increase in juvenile crime over the past three 
 87.32  school years; 
 87.33     (3) the applicant has a designated program coordinator who 
 87.34  will coordinate school and community resources to provide 
 87.35  students with sufficient support and continuity to realize 
 87.36  program goals; and 
 88.1      (4) the applicant has established an advisory committee 
 88.2   that includes representatives of the students and families 
 88.3   served by the program and community organizations serving youth 
 88.4   and families.  The applicant may use an existing advisory 
 88.5   committee that includes this representation. 
 88.6      At least 80 percent of a local learn and earn program's 
 88.7   participating students at the inception of the program must 
 88.8   reside in households with incomes at or below the federal 
 88.9   poverty level adjusted for family size. 
 88.10     The commissioner shall give priority to funding local learn 
 88.11  and earn programs that serve those communities that have the 
 88.12  highest juvenile crime rates and the largest concentrations of 
 88.13  economically disadvantaged youth. 
 88.14     Subd. 5.  [STUDENT ELIGIBILITY.] A student is eligible to 
 88.15  participate in a local learn and earn program if the student: 
 88.16     (1) is enrolled in the participating school; 
 88.17     (2) is entering or is in the ninth grade at the inception 
 88.18  of the program; and 
 88.19     (3) resides in a household whose income is at or below the 
 88.20  federal poverty level adjusted for family size, has been 
 88.21  recommended for the program by a teacher or other community 
 88.22  member, has requested to participate, or whose participation has 
 88.23  been requested by a family member, according to a procedure to 
 88.24  be developed by the applicant. 
 88.25     Subd. 6.  [PROGRAM COMPONENTS.] Each learn and earn 
 88.26  graduation achievement program must provide the opportunity for 
 88.27  participating students to complete: 
 88.28     (1) 250 hours each year, not including regular required 
 88.29  classroom hours, in basic education competency skills; 
 88.30     (2) 250 hours each year of community service; and 
 88.31     (3) 250 hours each year of cultural enrichment and personal 
 88.32  development, including but not limited to adult mentoring; 
 88.33  participating in community cultural events; developing life 
 88.34  skills for use in the home, workplace, and community; and 
 88.35  learning to set goals, manage time, and make appropriate 
 88.36  behavior choices for varying social situations. 
 89.1      Subd. 7.  [PROGRAM INCENTIVES.] (a) Each participating 
 89.2   student shall receive a monetary stipend for each hour spent in 
 89.3   a program component activity, plus a bonus upon completion of 
 89.4   each component during each year of the program. 
 89.5      (b) An additional amount equal to or greater than each 
 89.6   student's earned stipends and bonuses must be deposited for the 
 89.7   student in a post-secondary opportunities interest-bearing 
 89.8   account, established by the commissioner through the higher 
 89.9   education services office.  A student may, upon graduation from 
 89.10  high school, use the funds accumulated for the student toward 
 89.11  the costs of attending a Minnesota post-secondary institution or 
 89.12  participating in a Minnesota post-secondary program.  Funds 
 89.13  accumulated for a student shall be available to the student from 
 89.14  the time the student graduates from high school until ten years 
 89.15  after the date the student entered the learn and earn graduation 
 89.16  achievement program.  After ten years, the commissioner shall 
 89.17  close the student's account and any remaining money in the 
 89.18  account shall revert to the general fund. 
 89.19     The commissioner shall establish a procedure for providing 
 89.20  the monetary stipends and bonuses to students.  The commissioner 
 89.21  may delegate this authority to grantees. 
 89.22     Subd. 8.  [PROGRAM COORDINATOR.] The local learn and earn 
 89.23  program coordinator must maintain contact with all participating 
 89.24  students and their families; work with the school to link 
 89.25  students with the resources needed to improve their educational 
 89.26  skills; arrange for community service and cultural enrichment 
 89.27  opportunities for students; maintain records regarding student 
 89.28  completion of program component hours; and perform other 
 89.29  administrative duties as necessary.  A program coordinator must, 
 89.30  to the extent possible, agree to remain with the program for 
 89.31  four years to provide continuity of adult contact to the 
 89.32  participating students. 
 89.33     Subd. 9.  [EVALUATION AND REPORTS.] The commissioner shall 
 89.34  collect information about participating students and a 
 89.35  demographically similar control group and shall evaluate the 
 89.36  short-term and long-term benefits participating students receive 
 90.1   from the learn and earn graduation achievement program, based on 
 90.2   the outcome measures specified in subdivision 2, and any other 
 90.3   criteria established by the commissioner as part of the grant 
 90.4   application process.  The evaluation must include a statistical 
 90.5   comparison of students participating in the program and the 
 90.6   control group.  The commissioner shall track participating 
 90.7   students and the control group for a minimum of six years from 
 90.8   the start of the program.  The commissioner shall submit a 
 90.9   preliminary report to the governor and the chairs of the senate 
 90.10  and house committees having jurisdiction over education and 
 90.11  crime prevention by December 15, 2000, regarding continuation of 
 90.12  the learn and earn graduation achievement program for 
 90.13  participating schools and expansion of the program to additional 
 90.14  schools.  The commissioner shall submit a final report by 
 90.15  December 15, 2002. 
 90.16     Sec. 40.  Minnesota Statutes 1996, section 245.493, 
 90.17  subdivision 1, is amended to read: 
 90.18     Subdivision 1.  [REQUIREMENTS TO QUALIFY AS A LOCAL 
 90.19  CHILDREN'S MENTAL HEALTH COLLABORATIVE.] In order to qualify as 
 90.20  a local children's mental health collaborative and be eligible 
 90.21  to receive start-up funds, the representatives of the local 
 90.22  system of care, or at a minimum one county, one school district 
 90.23  or special education cooperative, and one mental health entity 
 90.24  must agree to the following: 
 90.25     (1) to establish a local children's mental health 
 90.26  collaborative and develop an integrated service system; and 
 90.27     (2) to commit resources to providing services through the 
 90.28  local children's mental health collaborative; and 
 90.29     (3) develop a plan to contribute funds to the children's 
 90.30  mental health collaborative. 
 90.31     Sec. 41.  Minnesota Statutes 1996, section 260A.02, 
 90.32  subdivision 3, is amended to read: 
 90.33     Subd. 3.  [CONTINUING TRUANT.] "Continuing truant" means a 
 90.34  child who is subject to the compulsory instruction requirements 
 90.35  of section 120.101 and is absent from instruction in a school, 
 90.36  as defined in section 120.05, without valid excuse within a 
 91.1   single school year for: 
 91.2      (1) three days if the child is in elementary school; or 
 91.3      (2) three or more class periods on three days if the child 
 91.4   is in middle school, junior high school, or high school. 
 91.5      A child is not a continuing truant if the child is 
 91.6   withdrawn from school by the child's parents because of a 
 91.7   dispute with the school concerning the provision of special 
 91.8   education services under the Individuals with Disabilities 
 91.9   Education Act or accommodations and modifications under the 
 91.10  Americans with Disabilities Act, if the parent makes good faith 
 91.11  efforts to provide the child educational services from any other 
 91.12  source.  No parent who withdraws a child from school during a 
 91.13  dispute with the school concerning the provision of special 
 91.14  education services or accommodations and modifications is 
 91.15  required to file home school papers, if the parent provides 
 91.16  written notice to the department of children, families, and 
 91.17  learning or the district of the plan for the child's education. 
 91.18     Nothing in this section shall prevent a school district 
 91.19  from notifying a truant child's parent or legal guardian of the 
 91.20  child's truancy or otherwise addressing a child's attendance 
 91.21  problems prior to the child becoming a continuing truant. 
 91.22     Sec. 42.  Laws 1994, chapter 647, article 7, section 18, 
 91.23  subdivision 2, is amended to read: 
 91.24     Subd. 2.  [ELIGIBILITY; APPLICATION.] A school district or 
 91.25  a group of school districts that have entered into a joint 
 91.26  powers agreement under Minnesota Statutes, section 471.59, to 
 91.27  provide for a magnet school or magnet program is eligible to 
 91.28  apply for an educational performance improvement grant.  The 
 91.29  application shall be on a form approved by the commissioner of 
 91.30  education.  The commissioner shall make recommendations to the 
 91.31  state board of education on which districts should be considered 
 91.32  for a grant contract.  The commissioner shall give priority to 
 91.33  school districts: 
 91.34     (1) in which at least one school has received a school 
 91.35  improvement incentive grant under Minnesota Statutes 1993 
 91.36  Supplement, section 121.602, subdivision 5; and 
 92.1      (2) that demonstrate a commitment to increasing 
 92.2   accountability by using a results-oriented system for measuring 
 92.3   student achievement. 
 92.4      Sec. 43.  Laws 1994, chapter 647, article 7, section 18, 
 92.5   subdivision 3, is amended to read: 
 92.6      Subd. 3.  [CONTRACT.] The state board of education may 
 92.7   enter into a one-year contract with a school district or group 
 92.8   of school districts for the purpose of awarding an educational 
 92.9   performance improvement grant.  The state board shall award a 
 92.10  grant only for measurable gains in student achievement.  The 
 92.11  terms of the contract shall at minimum address: 
 92.12     (1) the criteria and assessments to be used in measuring 
 92.13  student achievement; 
 92.14     (2) the district's baseline level of student achievement 
 92.15  for the district or group of districts; 
 92.16     (3) the level of student achievement, desegregation or 
 92.17  diversity, or improved operations to be reached under the 
 92.18  contract; 
 92.19     (4) a timeline for determining whether the contract goals 
 92.20  have been met; and 
 92.21     (5) at the discretion of the state board, provisions 
 92.22  governing the award of a partial grant to the district or group 
 92.23  of districts if the contract goals are not fully met. 
 92.24     Sec. 44.  Laws 1995, First Special Session chapter 3, 
 92.25  article 3, section 11, subdivision 1, is amended to read: 
 92.26     Subdivision 1.  [PURPOSE.] A pilot program is established 
 92.27  to support general education classroom teachers who teach 
 92.28  children with specific learning disabilities.  The goals of the 
 92.29  pilot program are to: 
 92.30     (1) increase participation of these children in 
 92.31  noncategorical programming designed to encourage their maximum 
 92.32  potential and maintain their self-esteem; 
 92.33     (2) demonstrate results in measurable educational outcomes; 
 92.34     (3) provide alternatives to special education that focus on 
 92.35  children's educational progress and results, respond to the 
 92.36  individual child, are efficient and cost-effective, and ensure 
 93.1   the rights of eligible children and their families to due 
 93.2   process; 
 93.3      (4) increase general education's ability to educate in a 
 93.4   manner that decreases the need for pull-out programs for 
 93.5   students with specific learning disabilities; and 
 93.6      (5) implement alternative approaches to conflict 
 93.7   resolution; and 
 93.8      (6) provide assistive technology to make individualized 
 93.9   student accommodations. 
 93.10     Sec. 45.  Laws 1995, First Special Session chapter 3, 
 93.11  article 3, section 11, subdivision 2, is amended to read: 
 93.12     Subd. 2.  [DEFINITIONS.] For the purposes of this section 
 93.13  the terms defined in this subdivision have the meanings given 
 93.14  them. 
 93.15     (a) "Accommodation" means any technique that alters the 
 93.16  educational setting to enable the child to reach the child's 
 93.17  maximum potential and to demonstrate more accurately the child's 
 93.18  knowledge and educational progress.  Accommodations may include, 
 93.19  but are not limited to:  preferential seating, paraphrasing of 
 93.20  information, instructions, practice activities and directions 
 93.21  provided in a manner consistent with the child's learning style, 
 93.22  opportunity for increased response time, more frequent 
 93.23  opportunity for review, extended time to complete assignments 
 93.24  and tests, larger print for assignments or tests, special study 
 93.25  sheets, extended or untimed tests, oral testing and answering, 
 93.26  and use of assistive technology within and outside the 
 93.27  educational environment. 
 93.28     (b) "Assistive technology device" means any item, piece of 
 93.29  equipment, or product system, whether acquired commercially off 
 93.30  the shelf, modified, or customized, that is used to increase, 
 93.31  maintain, or improve functional capabilities is as defined in 
 93.32  Minnesota Statutes, section 120.187. 
 93.33     (c) "Competency" means a documented and demonstrated 
 93.34  attitude, skill, or knowledge base resulting in an ability of 
 93.35  general education personnel to provide accommodations, 
 93.36  modifications, and personalized instruction, according to the 
 94.1   eligible child's individual learning styles, within general 
 94.2   education environments. 
 94.3      (d) "Consistently available" means that education personnel 
 94.4   who demonstrate competency are site-based and designated as a 
 94.5   resource for the development and use of accommodations, 
 94.6   modifications, and personalized instruction in general education.
 94.7      (e) "Eligible children" means those children who have 
 94.8   specific learning disabilities or conditions related to these 
 94.9   disabilities according to recognized professional standards and 
 94.10  documented by appropriately licensed personnel. 
 94.11     (f) "Learner plan" means a concise written plan that is 
 94.12  based on the eligible child's documented specific learning 
 94.13  disabilities and needs; includes the eligible child's strengths 
 94.14  that may compensate for those differences and needs; provides 
 94.15  the child, the child's parent, and all general education 
 94.16  personnel responsible for direct instruction with information 
 94.17  that results in clear understanding and subsequent use of 
 94.18  accommodations, modifications, and personalized instruction; and 
 94.19  includes methods of evaluating the child's progress that are 
 94.20  consistent with learning differences, needs, strengths, 
 94.21  modifications, and accommodations, and are at intervals 
 94.22  identical to the student population of the school in which the 
 94.23  child participating in Options Plus is enrolled. 
 94.24     (g) "Modification" means any technique that alters the 
 94.25  school work required, makes it different from the school work 
 94.26  required or other students in the same course, and encourages 
 94.27  the eligible child to reach the child's maximum potential and 
 94.28  facilitate educational success.  Modifications may include, but 
 94.29  are not limited to:  copies of teacher notes and lesson plans, 
 94.30  assisted note taking, reduced or altered assignments, increased 
 94.31  assignments in areas of strength, alternative test formats, 
 94.32  modified testing, peer assistance, cooperative learning, and 
 94.33  modified grading such as documentation of progress and results. 
 94.34     (h) "Parent" means a parent, guardian, or person acting as 
 94.35  a parent of a child. 
 94.36     (i) "Personalized instruction" means direct instruction 
 95.1   designed with knowledge of the child's learning style, 
 95.2   strengths, and differences, to assist the child to gain in skill 
 95.3   areas, so the child demonstrates progress toward and outcomes 
 95.4   necessary to become a successful citizen. 
 95.5      Sec. 46.  Laws 1995, First Special Session chapter 3, 
 95.6   article 3, section 11, subdivision 5, is amended to read: 
 95.7      Subd. 5.  [USE OF FUNDS.] Options Plus pilot program grants 
 95.8   shall be used to supplement staff development funding under 
 95.9   Minnesota Statutes, section 124A.29, to train general education 
 95.10  classroom teachers to meet the needs of children with specific 
 95.11  learning disabilities and provide assistive technology devices 
 95.12  in a general education setting.  The training shall result in 
 95.13  each participating teacher achieving the following competencies: 
 95.14     (1) understanding and communicating to the parents of the 
 95.15  child the options available for instruction; 
 95.16     (2) the ability to assess the learning environment and 
 95.17  provide the necessary accommodations, modifications, and 
 95.18  personalized instruction necessary to meet the needs of the 
 95.19  child; and 
 95.20     (3) the ability to work collaboratively and in teams with 
 95.21  other teachers and support and related services staff; and 
 95.22     (4) the ability to teach children to use the assistive 
 95.23  technology devices. 
 95.24     Sec. 47.  Laws 1995, First Special Session chapter 3, 
 95.25  article 8, section 25, subdivision 12, is amended to read: 
 95.26     Subd. 12.  [NETT LAKE.] For grants to independent school 
 95.27  district No. 707, Nett Lake: 
 95.28       $62,000     .....     1996 
 95.29       $62,000     .....     1997 
 95.30     $32,000 in 1996 and $32,000 in 1997 are for grants to 
 95.31  independent school district No. 707, Nett Lake, to pay property 
 95.32  insurance and boiler insurance premiums, and insurance premiums 
 95.33  under Minnesota Statutes, section 466.06. 
 95.34     $30,000 in 1996 and $30,000 in 1997 are for grants to 
 95.35  independent school district No. 707, Nett Lake, for the payment 
 95.36  of obligations of the school district for unemployment 
 96.1   compensation.  The appropriation must be paid to the appropriate 
 96.2   state agency for such purposes in the name of the school 
 96.3   district. 
 96.4      Sec. 48.  [AMERICAN SIGN LANGUAGE RECOGNIZED AS A WORLD 
 96.5   LANGUAGE.] 
 96.6      The state of Minnesota recognizes American sign language as 
 96.7   a fully developed, autonomous, natural language with distinct 
 96.8   grammar, syntax, vocabulary, and cultural heritage which is used 
 96.9   by a variety of deaf, hard-of-hearing, deaf-blind, and hearing 
 96.10  individuals in the United States, and hereby determines that 
 96.11  American sign language shall be accorded equal status with other 
 96.12  linguistic systems in the state's public elementary, secondary, 
 96.13  and higher education systems. 
 96.14     Sec. 49.  [MATCHING GRANTS FOR EDUCATION PROGRAMS SERVING 
 96.15  HOMELESS CHILDREN.] 
 96.16     A school district or a nonprofit entity contracting with a 
 96.17  school district to provide education and transition services for 
 96.18  homeless children is eligible for a matching grant for capital 
 96.19  facilities which serve homeless children and their families.  
 96.20  Grant proceeds may be used to design, furnish, equip, acquire, 
 96.21  repair, or construct a facility for providing education and 
 96.22  transition services for homeless pupils.  To obtain a grant, a 
 96.23  school district or nonprofit entity must submit an application 
 96.24  to the commissioner of children, families, and learning in the 
 96.25  form and manner the commissioner establishes.  Grants must be 
 96.26  matched by $1 of nonstate money for every $1 of grant money 
 96.27  received.  The commissioner shall take into consideration the 
 96.28  number of concentration of homeless children served by a school 
 96.29  district when awarding grants.  The commissioner may award 
 96.30  matching grants of up to $500,000 per school district. 
 96.31     Sec. 50.  [OSSEO LEVY.] 
 96.32     For levies payable in 1998 only, independent school 
 96.33  district No. 279, Osseo, may levy a tax in an amount not to 
 96.34  exceed $800,000.  The proceeds of this levy must be used to 
 96.35  provide instructional services for at-risk children. 
 96.36     Sec. 51.  [APPROPRIATIONS.] 
 97.1      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
 97.2   LEARNING.] The sums indicated in this section are appropriated 
 97.3   from the general fund to the department of children, families, 
 97.4   and learning for the fiscal years designated.  
 97.5      Subd. 2.  [AMERICAN INDIAN LANGUAGE AND CULTURE PROGRAMS.] 
 97.6   For grants to American Indian language and culture education 
 97.7   programs according to Minnesota Statutes, section 126.54, 
 97.8   subdivision 1: 
 97.9        $591,000     .....     1998
 97.10       $591,000     .....     1999
 97.11     The 1998 appropriation includes $59,000 for 1997 and 
 97.12  $532,000 for 1998.  
 97.13     The 1999 appropriation includes $59,000 for 1998 and 
 97.14  $532,000 for 1999.  
 97.15     Any balance in the first year does not cancel but is 
 97.16  available in the second year. 
 97.17     Subd. 3.  [AMERICAN INDIAN EDUCATION.] (a) For certain 
 97.18  American Indian education programs in school districts: 
 97.19       $175,000       .....     1998
 97.20       $175,000       .....     1999
 97.21     The 1998 appropriation includes $17,000 for 1997 and 
 97.22  $158,000 for 1998.  
 97.23     The 1999 appropriation includes $17,000 for 1998 and 
 97.24  $158,000 for 1999.  
 97.25     (b) These appropriations are available for expenditure with 
 97.26  the approval of the commissioner of the department of children, 
 97.27  families, and learning. 
 97.28     (c) The commissioner must not approve the payment of any 
 97.29  amount to a school district or school under this subdivision 
 97.30  unless that school district or school is in compliance with all 
 97.31  applicable laws of this state. 
 97.32     (d) Up to the following amounts may be distributed to the 
 97.33  following schools and school districts for each fiscal year:  
 97.34  $54,800, Pine Point School; $9,800 to independent school 
 97.35  district No. 166, Cook county; $14,900 to independent school 
 97.36  district No. 432, Mahnomen; $14,200 to independent school 
 98.1   district No. 435, Waubun; $42,200 to independent school district 
 98.2   No. 707, Nett Lake; and $39,100 to independent school district 
 98.3   No. 38, Red Lake.  These amounts must be spent only for the 
 98.4   benefit of American Indian pupils and to meet established state 
 98.5   educational standards or statewide requirements. 
 98.6      (e) Before a district or school can receive money under 
 98.7   this subdivision, the district or school must submit, to the 
 98.8   commissioner, evidence that it has complied with the uniform 
 98.9   financial accounting and reporting standards act, Minnesota 
 98.10  Statutes, sections 121.904 to 121.917. 
 98.11     Subd. 4.  [AMERICAN INDIAN POST-SECONDARY PREPARATION 
 98.12  GRANTS.] For American Indian post-secondary preparation grants 
 98.13  according to Minnesota Statutes, section 124.481: 
 98.14       $857,000     .....     1998
 98.15       $857,000     .....     1999
 98.16     Any balance in the first year does not cancel but is 
 98.17  available in the second year. 
 98.18     Subd. 5.  [AMERICAN INDIAN SCHOLARSHIPS.] For American 
 98.19  Indian scholarships according to Minnesota Statutes, section 
 98.20  124.48: 
 98.21       $1,600,000     .....     1998 
 98.22       $1,600,000     .....     1999 
 98.23     Any balance in the first year does not cancel but is 
 98.24  available in the second year. 
 98.25     Subd. 6.  [INDIAN TEACHER PREPARATION GRANTS.] (a) For 
 98.26  joint grants to assist Indian people to become teachers: 
 98.27       $190,000     .....     1998 
 98.28       $190,000     .....     1999 
 98.29     (b) Up to $70,000 each year is for a joint grant to the 
 98.30  University of Minnesota at Duluth and the Duluth school district.
 98.31     (c) Up to $40,000 each year is for a joint grant to each of 
 98.32  the following: 
 98.33     (1) Bemidji state university and the Red Lake school 
 98.34  district; 
 98.35     (2) Moorhead state university and a school district located 
 98.36  within the White Earth reservation; and 
 99.1      (3) Augsburg college, independent school district No. 625, 
 99.2   St. Paul, and the Minneapolis school district. 
 99.3      (d) Money not used for students at one location may be 
 99.4   transferred for use at another location. 
 99.5      (e) Any balance in the first year does not cancel but is 
 99.6   available in the second year. 
 99.7      Subd. 7.  [TRIBAL CONTRACT SCHOOLS.] For tribal contract 
 99.8   school aid according to Minnesota Statutes, section 124.86: 
 99.9        $2,265,000     .....     1998
 99.10       $2,743,000     .....     1999
 99.11     The 1998 appropriation includes $91,000 for 1997 and 
 99.12  $2,544,000 for 1998. 
 99.13     The 1999 appropriation includes $243,000 for 1998 and 
 99.14  $2,500,000 for 1999. 
 99.15     Subd. 8.  [EARLY CHILDHOOD PROGRAMS AT TRIBAL SCHOOLS.] For 
 99.16  early childhood family education programs at tribal contract 
 99.17  schools: 
 99.18       $68,000     .....     1998 
 99.19       $68,000     .....     1999 
 99.20     Subd. 9.  [AMERICAN SIGN LANGUAGE; TEACHER EDUCATION 
 99.21  HEARING.] To assist school districts in educating teachers in 
 99.22  American sign language: 
 99.23       $13,000     .....     1998
 99.24       $12,000     .....     1999
 99.25     Any balance in the first year does not cancel but is 
 99.26  available in the second year. 
 99.27     Subd. 10.  [MEXICAN ORIGIN EDUCATION GRANTS.] For grants 
 99.28  for a Mexican origin education pilot grant program: 
 99.29       $50,000     .....     1998
 99.30       $25,000     .....     1999
 99.31     Any balance in the first year does not cancel but is 
 99.32  available in the second year. 
 99.33     Subd. 11.  [LAY ADVOCATES.] To pay or reimburse lay 
 99.34  advocates for their time and expense as provided in Minnesota 
 99.35  Statutes, section 120.17: 
 99.36       $10,000     .....     1998
100.1      This appropriation is available until June 30, 1999. 
100.2      Subd. 12.  [OPTIONS PLUS PILOT GRANTS.] For grants to 
100.3   school districts for options plus pilot programs: 
100.4        $150,000    .....     1998 
100.5      Each grant shall not exceed $50,000. 
100.6      This appropriation is available until June 30, 1999.  
100.7      Subd. 13.  [MAGNET SCHOOL GRANTS.] For magnet school and 
100.8   program grants: 
100.9        $3,750,000     .....     1998 
100.10       $1,750,000     .....     1999 
100.11     These amounts may be used to plan, develop, design, 
100.12  acquire, construct, remodel, enlarge, or improve buildings or 
100.13  sites for magnet school facilities according to Minnesota 
100.14  Statutes, section 124C.498. 
100.15     Subd. 14.  [INTEGRATION PROGRAMS.] For grants according to: 
100.16  minority fellowship grants according to Laws 1994, chapter 647, 
100.17  article 8, section 29; minority teacher incentives according to 
100.18  Minnesota Statutes, section 124.278; teachers of color grants 
100.19  according to Minnesota Statutes, section 125.623; and cultural 
100.20  exchange grants according to Minnesota Statutes, section 126.43: 
100.21       $1,000,000     .....     1998
100.22       $1,000,000     .....     1999
100.23     Any balance in the first year does not cancel but is 
100.24  available in the second year. 
100.25     In awarding teacher of color grants, priority must be given 
100.26  to districts that have students who are currently in the process 
100.27  of completing their academic program. 
100.28     Subd. 15.  [SPECIAL EDUCATION AID.] For special education 
100.29  aid according to Minnesota Statutes, section 124.32: 
100.30       $282,505,000     .....     1998 
100.31       $382,519,000     .....     1999 
100.32     The 1998 appropriation includes $24,346,000 for 1997 and 
100.33  $258,159,000 for 1998.  
100.34     The 1999 appropriation includes $28,684,000 for 1998 and 
100.35  $353,835,000 for 1999.  
100.36     Subd. 16.  [AID FOR CHILDREN WITH A DISABILITY.] For aid 
101.1   according to Minnesota Statutes, section 124.32, subdivision 6, 
101.2   for children with a disability placed in residential facilities 
101.3   within the district boundaries for whom no district of residence 
101.4   can be determined: 
101.5        $586,000     .....     1998 
101.6        $644,000     .....     1999 
101.7      If the appropriation for either year is insufficient, the 
101.8   appropriation for the other year is available.  Any balance in 
101.9   the first year does not cancel but is available in the second 
101.10  year. 
101.11     Subd. 17.  [TRAVEL FOR HOME-BASED SERVICES.] For aid for 
101.12  teacher travel for home-based services according to Minnesota 
101.13  Statutes, section 124.32, subdivision 2b: 
101.14       $107,000     .....     1998 
101.15       $111,000     .....     1999 
101.16     The 1998 appropriation includes $8,000 for 1997 and $99,000 
101.17  for 1998.  
101.18     The 1999 appropriation includes $10,000 for 1998 and 
101.19  $101,000 for 1999.  
101.20     Subd. 18.  [SPECIAL EDUCATION EXCESS COST AID.] For excess 
101.21  cost aid: 
101.22       $28,045,000     .....     1998 
101.23       $47,654,000     .....     1999 
101.24     The 1998 appropriation includes $1,242,000 for 1997 and 
101.25  $26,803,000 for 1998.  
101.26     The 1999 appropriation includes $2,978,000 for 1998 and 
101.27  $44,676,000 for 1999. 
101.28     Subd. 19.  [TARGETED NEEDS AID.] For targeted needs aid: 
101.29       $47,392,000     .....     1998 
101.30       $58,657,000     .....     1999 
101.31     (a) Of the 1998 amount, $1,300,000 is for 1997 limited 
101.32  English proficiency aid and $13,491,000 is for 1998 limited 
101.33  English proficiency aid.  Of the 1998 amount, $1,364,000 is for 
101.34  1997 assurance of mastery aid and $12,393,000 is for 1998 
101.35  assurance of mastery aid.  Of the 1998 amount, $18,844,000 is 
101.36  for 1998 integration aid. 
102.1      (b) Of the 1999 amount, $1,819,000 is for 1998 limited 
102.2   English proficiency aid and $16,936,000 is for 1999 limited 
102.3   English proficiency aid.  Of the 1999 amount, $1,377,000 is for 
102.4   1998 assurance of mastery aid and $12,401,000 is for 1999 
102.5   assurance of mastery aid.  
102.6      (c) As a condition of receiving a grant, each district must 
102.7   continue to report its costs according to the uniform financial 
102.8   accounting and reporting system.  As a further condition of 
102.9   receiving a grant, each district must submit a report to the 
102.10  chairs of the education committees of the legislature about the 
102.11  actual expenditures it made for integration using the grant 
102.12  money including achievement results.  These grants may be used 
102.13  to transport students attending a nonresident district under 
102.14  Minnesota Statutes, section 120.062, to the border of the 
102.15  resident district.  A district may allocate a part of the grant 
102.16  to the transportation fund for this purpose. 
102.17     Subd. 20.  [SCHOOL-TO-WORK ACTIVITIES; STUDENTS WITH 
102.18  DISABILITIES.] For aid for secondary vocational education for 
102.19  pupils with disabilities according to Minnesota Statutes, 
102.20  section 124.574: 
102.21       $7,044,000     .....     1998 
102.22       $7,985,000     .....     1999 
102.23     The 1998 appropriation includes $618,000 for 1997 and 
102.24  $6,426,000 for 1998.  
102.25     The 1999 appropriation includes $713,000 for 1998 and 
102.26  $7,272,000 for 1999.  
102.27     Subd. 21.  [SPECIAL PROGRAMS EQUALIZATION AID.] For special 
102.28  education levy equalization aid according to Minnesota Statutes, 
102.29  section 124.321: 
102.30       $11,195,000     .....     1998
102.31       $ 5,780,000     .....     1999
102.32     The 1998 appropriation includes $1,817,000 for 1997 and 
102.33  $9,378,000 for 1998.  
102.34     The 1999 appropriation includes $1,053,000 for 1998 and 
102.35  $4,727,000 for 1999. 
102.36     Subd. 22.  [INTEGRATION AID.] For integration aid: 
103.1        $26,124,000     .....     1998
103.2      This appropriation is based on an entitlement of 
103.3   $29,026,000. 
103.4      Subd. 23.  [ADDITIONAL REVENUE FOR HOMELESS STUDENTS.] For 
103.5   additional revenue for homeless students according to Minnesota 
103.6   Statutes, section 126.225: 
103.7        $200,000     .....     1998
103.8        $200,000     .....     1999
103.9      The 1998 appropriation includes $20,000 for 1997 and 
103.10  $180,000 for 1998. 
103.11     The 1999 appropriation includes $20,000 for 1997 and 
103.12  $180,000 for 1999. 
103.13     Subd. 24.  [MATCHING GRANTS FOR EDUCATION PROGRAMS SERVING 
103.14  HOMELESS CHILDREN.] For matching grants for education programs 
103.15  for homeless children: 
103.16       $400,000     .....     1998
103.17     This appropriation is available until June 30, 1999. 
103.18     Subd. 25.  [FIRST-GRADE PREPAREDNESS.] For the first-grade 
103.19  preparedness program under section 124.2613: 
103.20       $5,850,000   .....     1998 
103.21       $6,500,000    .....     1999 
103.22     The 1998 appropriation includes $0 for 1997 and $5,850,000 
103.23  for 1998. 
103.24     The 1999 appropriation includes $520,000 for 1998 and 
103.25  $5,980,000 for 1999. 
103.26     Subd. 26.  [INDEPENDENT SCHOOL DISTRICT NO. 707, NETT LAKE; 
103.27  MEDIA SPECIALIST.] For a grant to independent school district 
103.28  No. 707, Nett Lake, for a media specialist for preschool through 
103.29  grade 6: 
103.30       $30,000     .....     1998
103.31     Subd. 27.  [EDUCATION PERFORMANCE IMPROVEMENT GRANTS.] For 
103.32  additional grants under Laws 1994, chapter 647, article 7, 
103.33  section 18, as amended: 
103.34       $1,600,000     .....     1998 
103.35     Consistent with the provisions of Laws 1994, chapter 647, 
103.36  article 7, section 18, as amended, a grant recipient that is a 
104.1   group of school districts that have entered into a joint powers 
104.2   agreement may use the grant proceeds to enhance student 
104.3   achievement and metropolitan desegregation. 
104.4      This appropriation is available until June 30, 1999. 
104.5      Subd. 28.  [CENTER FOR THE VICTIMS OF TORTURE.] For the 
104.6   center for victims of torture to hire a full-time psychologist 
104.7   to address behavioral problems exhibited by students in the 
104.8   public schools who are survivors of war traumas: 
104.9        $60,000     .....     1998
104.10       $60,000     .....     1999
104.11     Subd. 29.  [ADOLESCENT PARENT PROGRAM GRANTS.] For 
104.12  adolescent parent program grants: 
104.13       $1,000,000     .....     1998
104.14     Any balance in the first year does not cancel but is 
104.15  available in the second year. 
104.16     Subd. 30.  [CENTRAL MINNESOTA AREA LEARNING CENTER.] For 
104.17  two or more of the following school district, independent school 
104.18  district Nos. 47, Sauk Rapids; 51, Foley; 738, Holdingford; 739, 
104.19  Kimball; 742, St. Cloud; 748, Sartell; and 750, Cold Spring, 
104.20  that form a joint powers agreement under Minnesota Statutes, 
104.21  section 471.59, to establish the central Minnesota area learning 
104.22  center: 
104.23       $130,000     .....     1998
104.24     This appropriation is available until June 30, 1999. 
104.25     Subd. 31.  [LEARN AND EARN GRADUATION ACHIEVEMENT PROGRAM.] 
104.26  For the learn and earn graduation achievement program according 
104.27  to Minnesota Statutes, section 126.79: 
104.28       $1,000,000     .....     1998
104.29       $1,000,000     .....     1999
104.30     This appropriation is available until June 30, 2001. 
104.31     Subd. 32.  [NETT LAKE INSURANCE.] For grants to independent 
104.32  school district No. 707, Nett Lake: 
104.33       $79,000     .....     1998 
104.34       $60,000     .....     1999 
104.35     $19,000 in 1998 is for a grant to independent school 
104.36  district No. 707, Nett Lake, to reimburse the district for 
105.1   property and boiler insurance premiums paid in fiscal year 1996. 
105.2      $30,000 in 1998 and $30,000 in 1999 are for grants to 
105.3   independent school district No. 707, Nett Lake, to pay property 
105.4   insurance and boiler insurance premiums, and insurance premiums 
105.5   under Minnesota Statutes, section 466.06. 
105.6      $30,000 in 1998 and $30,000 in 1999 are for grants to 
105.7   independent school district No. 707, Nett Lake, for the payment 
105.8   of obligations of the school district for unemployment 
105.9   compensation.  The appropriation must be paid to the appropriate 
105.10  state agency for such purposes in the name of the school 
105.11  district. 
105.12     Subd. 33.  [ONE ROOM SCHOOLHOUSE.] For a grant to 
105.13  independent school district No. 690, Warroad, to operate the 
105.14  Angle Inlet School: 
105.15       $25,000     .....     1998
105.16       $25,000     .....     1999
105.17     Sec. 52.  [REPEALER.] 
105.18     Subdivision 1.  [REVENUE FOR FISCAL YEAR 1999.] Minnesota 
105.19  Statutes 1996, section 124.312, subdivisions 4 and 5, are 
105.20  repealed effective for revenue for fiscal year 1999. 
105.21     Subd. 2.  [JULY 1, 1996.] Minnesota Statutes 1996, section 
105.22  124.3201, subdivisions 2a and 2b, are repealed effective 
105.23  retroactively to July 1, 1996. 
105.24     Sec. 53.  [EFFECTIVE DATE.] 
105.25     Sections 5, 16, and 19 are effective retroactively to July 
105.26  1, 1996.  Sections 13 to 15 are effective for revenue for fiscal 
105.27  year 1999.  Section 18 is effective July 1, 1998. 
105.28                             ARTICLE 3
105.29                        LIFEWORK DEVELOPMENT
105.30     Section 1.  [121.498] [MINNESOTA CAREER INFORMATION 
105.31  SYSTEM.] 
105.32     (a) The department of children, families, and learning, 
105.33  through the Minnesota career information system, may provide 
105.34  career information to, including, but not limited to, school 
105.35  districts and other educational organizations, employment and 
105.36  training services, human service agencies, libraries, and 
106.1   families.  The department shall collect fees necessary to 
106.2   recover all expenditures related to the operation of the 
106.3   Minnesota career information system. 
106.4      (b) Grants and other legislative funds may be accepted and 
106.5   used for the improvement or operation of the Minnesota career 
106.6   information system.  All receipts shall be deposited in a 
106.7   special account in the special revenue fund that shall be 
106.8   carried over at the end of each fiscal year.  The money in the 
106.9   account, along with any interest earned, is appropriated to the 
106.10  commissioner of children, families, and learning for the 
106.11  Minnesota career information system and must be for the sole use 
106.12  and benefit of the system.  The department shall recognize that 
106.13  the Minnesota career information system operates under a 
106.14  self-supporting directive, and accordingly, must provide 
106.15  sufficient administrative latitude within the confines of law to 
106.16  enable the system to operate effectively. 
106.17     Sec. 2.  Minnesota Statutes 1996, section 121.615, 
106.18  subdivision 2, is amended to read: 
106.19     Subd. 2.  [CREATION OF FOUNDATION.] There is created the 
106.20  Minnesota school-to-work student organization foundation.  The 
106.21  purpose of the foundation shall be to promote vocational student 
106.22  organizations and applied leadership opportunities in Minnesota 
106.23  public and nonpublic schools through public-private 
106.24  partnerships.  The foundation shall be a nonprofit 
106.25  organization.  The board of directors of the foundation and 
106.26  activities of the foundation are under the direction of 
106.27  the department of children, families, and learning state board 
106.28  of education.  
106.29     Sec. 3.  Minnesota Statutes 1996, section 121.615, 
106.30  subdivision 3, is amended to read: 
106.31     Subd. 3.  [BOARD OF DIRECTORS.] The board of directors of 
106.32  the school-to-work student organization foundation shall consist 
106.33  of: 
106.34     (1) chairs or designees from the board of directors of FFA 
106.35  (formerly Future Farmers of America), Future Leaders of 
106.36  America/Future Homemakers of America, post-secondary agriculture 
107.1   students, home economics related occupations, Health Occupations 
107.2   Student Association, Distributive Education Clubs of America, 
107.3   Delta Upsilon Chi, Secondary Vocational Industrial Clubs of 
107.4   America, Post-secondary Vocational Industrial Clubs of America, 
107.5   Secondary Business Professionals of America, and Post-secondary 
107.6   Business Professionals of America; 
107.7      (2) four members from business and industry appointed by 
107.8   the governor; and 
107.9      (3) five students representing diverse vocational areas, 
107.10  three of whom are appointed by the commissioner of the 
107.11  department of children, families, and learning and two of whom 
107.12  are appointed by the chancellor of the Minnesota state colleges 
107.13  and universities with the advice of the executive councils of 
107.14  each vocational education student organization. 
107.15     (1) seven members appointed by the board of directors of 
107.16  the school-to-work student organizations and chosen so that each 
107.17  represents one of the following career areas:  agriculture, 
107.18  family and consumer sciences, service occupations, health 
107.19  occupations, marketing, business, and technical/industrial; 
107.20     (2) seven members from business, industry, and labor 
107.21  appointed by the governor to staggered terms and chosen so that 
107.22  each represents one of the following career areas:  agriculture, 
107.23  family and consumer sciences, service occupations, health 
107.24  occupations, marketing, business, and technical/industrial; 
107.25     (3) five students or alumni of school-to-work student 
107.26  organizations representing diverse career areas, three from 
107.27  secondary student organizations, and two from post-secondary 
107.28  student organizations.  The students or alumni shall be 
107.29  appointed by the criteria and process agreed upon by the 
107.30  executive directors of the student-to-work organizations; and 
107.31     (4) four members from education appointed by the governor 
107.32  to staggered terms and chosen so that each represents one of the 
107.33  following groups:  school district level administrators, 
107.34  secondary school administrators, middle school administrators, 
107.35  and post-secondary administrators. 
107.36     Executive directors of vocational education student 
108.1   organizations are ex officio, nonvoting members of the board. 
108.2      Sec. 4.  Minnesota Statutes 1996, section 121.615, 
108.3   subdivision 5, is amended to read: 
108.4      Subd. 5.  [POWERS AND DUTIES.] The foundation may: 
108.5      (1) identify and plan common goals and priorities for the 
108.6   various school-to-work student organizations in Minnesota; 
108.7      (2) publish brochures or booklets relating to the purposes 
108.8   of the foundation and collect reasonable fees for the 
108.9   publications; 
108.10     (3) seek and receive public and private money, grants, and 
108.11  in-kind services and goods from nonstate sources for the 
108.12  purposes of the foundation, without complying with section 7.09, 
108.13  subdivision 1; 
108.14     (4) contract with consultants on behalf of the 
108.15  school-to-work student organizations; and 
108.16     (5) plan, implement, and expend money for awards and other 
108.17  forms of recognition for school-to-work student activities; and 
108.18     (6) identify an appropriate name for the foundation. 
108.19     Sec. 5.  Minnesota Statutes 1996, section 121.615, 
108.20  subdivision 6, is amended to read: 
108.21     Subd. 6.  [CONTRACTS.] The foundation board of directors 
108.22  shall review and approve foundation personnel and programming 
108.23  contracts each contract of the board.  Each contract of the 
108.24  foundation board shall be subject to the same review and 
108.25  approval procedures as a contract of the state board of 
108.26  education. 
108.27     Sec. 6.  Minnesota Statutes 1996, section 121.615, 
108.28  subdivision 7, is amended to read: 
108.29     Subd. 7.  [FOUNDATION STAFF.] The commissioner of the 
108.30  department of children, families, and learning state board of 
108.31  education shall appoint the executive director of the foundation 
108.32  from three candidates nominated and submitted by the foundation 
108.33  board of directors and, as necessary, other staff who shall 
108.34  perform duties and have responsibilities solely related to the 
108.35  foundation.  The employees appointed are not state employees 
108.36  under chapter 43A, but are covered under section 3.736.  The 
109.1   employees may participate in the state health and state 
109.2   insurance plans for employees in unclassified service.  The 
109.3   employees shall be supervised by the executive director. 
109.4      The commissioner shall appoint from the office of lifework 
109.5   development a liaison to the foundation board. 
109.6      Sec. 7.  Minnesota Statutes 1996, section 121.615, 
109.7   subdivision 8, is amended to read: 
109.8      Subd. 8.  [PUBLIC FUNDING.] The commissioner of the 
109.9   department of children, families, and learning state shall 
109.10  identify and secure appropriate sources of state and federal 
109.11  funding from various state agencies, including, but not limited 
109.12  to, Minnesota state colleges and universities, for the operation 
109.13  and development of basic staffing of the foundation and 
109.14  individual student school-to-work student organizations at the 
109.15  state level. 
109.16     Sec. 8.  Minnesota Statutes 1996, section 121.615, 
109.17  subdivision 9, is amended to read: 
109.18     Subd. 9.  [PRIVATE FUNDING.] The foundation shall seek 
109.19  private resources to supplement the allocated state and 
109.20  federal available public money.  Individuals, businesses, and 
109.21  other organizations may contribute to the foundation in any 
109.22  manner specified by the board of directors.  All money received 
109.23  shall be administered by the board of directors. 
109.24     Sec. 9.  Minnesota Statutes 1996, section 121.615, 
109.25  subdivision 10, is amended to read: 
109.26     Subd. 10.  [REPORT.] The board of directors of the 
109.27  foundation shall submit an annual report and assessment to the 
109.28  office of lifework development and on the progress of its 
109.29  activities to the state board of education and to the board of 
109.30  trustees of the Minnesota state colleges and universities.  The 
109.31  annual report shall contain a financial report for the preceding 
109.32  year.  The foundation shall submit a biennium report to the 
109.33  legislature before February 15, in the odd-numbered year. 
109.34     Sec. 10.  Minnesota Statutes 1996, section 121.703, 
109.35  subdivision 3, is amended to read: 
109.36     Subd. 3.  [DUTIES.] (a) The commission shall: 
110.1      (1) develop, with the assistance of the governor, the 
110.2   commissioner of children, families, and learning, and affected 
110.3   state agencies, a comprehensive state plan to provide services 
110.4   under sections 121.701 to 121.710 and federal law; 
110.5      (2) actively pursue public and private funding sources for 
110.6   services, including funding available under federal law; 
110.7      (3) coordinate volunteer service-learning programs within 
110.8   the state; 
110.9      (4) develop, in cooperation with the workforce development 
110.10  council and the commissioner of children, families, and 
110.11  learning, volunteer service-learning programs, including 
110.12  curriculum, materials, and methods of instruction; 
110.13     (5) work collaboratively with the workforce development 
110.14  council, the commissioner of children, families, and learning, 
110.15  schools, public and private agencies, for-profit and nonprofit 
110.16  employers, and labor unions to identify mentoring and 
110.17  service-learning opportunities, solicit and recruit participants 
110.18  for these programs, and disseminate information on the programs; 
110.19     (6) administer the youth works grant program under sections 
110.20  121.704 to 121.709, with assistance from the commissioner of 
110.21  children, families, and learning and the executive director of 
110.22  the higher education services office, including soliciting and 
110.23  approving grant applications from eligible organizations, and 
110.24  administering individual postservice benefits; 
110.25     (7) establish an evaluation plan for programs developed and 
110.26  services provided under sections 121.701 to 121.710; 
110.27     (8) report to the governor, commissioner of children, 
110.28  families, and learning, and legislature; 
110.29     (9) provide oversight and support for school, campus, and 
110.30  community-based service programs; and 
110.31     (10) administer the federal AmeriCorps program. 
110.32     (b) Nothing in sections 121.701 to 121.710 precludes an 
110.33  organization from independently seeking public or private 
110.34  funding to accomplish purposes similar to those described in 
110.35  paragraph (a). 
110.36     (c) The commissioner of children, families, and learning 
111.1   shall consult with commission members before the commissioner 
111.2   selects the executive director for the commission, who shall 
111.3   serve in the unclassified service. 
111.4      Sec. 11.  Minnesota Statutes 1996, section 126.113, is 
111.5   amended to read: 
111.6      126.113 [EDUCATION IN AGRICULTURE EDUCATION LEADERSHIP 
111.7   COUNCIL.] 
111.8      Subdivision 1.  [ESTABLISHMENT; MEMBERSHIP.] The Minnesota 
111.9   education in agriculture leadership council is established to 
111.10  promote education about agriculture.  The Minnesota agriculture 
111.11  education leadership council is established.  The council is 
111.12  composed of 11 members as follows: 
111.13     (1) the chair of the University of Minnesota agricultural 
111.14  education program; 
111.15     (2) a representative of the commissioner of children, 
111.16  families, and learning; 
111.17     (3) the director of management education for the council of 
111.18  trustees of the Minnesota state colleges and universities; 
111.19     (4) the president and the president-elect of the Minnesota 
111.20  vocational agriculture instructors association; 
111.21     (5) a representative of the Future Farmers of America 
111.22  Foundation; 
111.23     (6) a representative of the commissioner of agriculture; 
111.24     (7) two members representing agriculture education and 
111.25  agriculture business appointed by the senate subcommittee on 
111.26  committees of the committee on rules and administration, with 
111.27  the recommendation of the chair of the committee on agriculture 
111.28  and rural development; and 
111.29     (8) two members representing agriculture education and 
111.30  agriculture business appointed by the speaker of the house, with 
111.31  the recommendation of the chair of the committee on agriculture. 
111.32     The following persons shall serve as nonvoting advisory 
111.33  members of the council: 
111.34     (1) the chair of the senate committee on agriculture and 
111.35  rural development; 
111.36     (2) the chair of the house committee on agriculture; 
112.1      (3) a member of the senate committee on agriculture and 
112.2   rural development and a member of the senate committee on 
112.3   children, families, and learning designated by the subcommittee 
112.4   on committees of the committee on rules and administration; and 
112.5      (4) a member of the house agriculture committee and a 
112.6   member of the house education committee designated by the 
112.7   speaker. 
112.8      Subd. 2.  [GOVERNANCE POWERS AND DUTIES.] The council must 
112.9   be appointed by the governor and has 12 members.  One member 
112.10  must be appointed from each congressional district and the 
112.11  remaining members must be appointed at large.  Council terms and 
112.12  removal of members are as provided in section 15.0575.  The 
112.13  council is governed by an executive board of directors.  The 
112.14  council may organize and appoint committees as it considers 
112.15  necessary. Specific powers and duties of the council are to: 
112.16     (1) develop recommendations regarding agriculture education 
112.17  programs in Minnesota; 
112.18     (2) make recommendations to the governor's work-force 
112.19  council regarding agricultural school-to-work programs; 
112.20     (3) coordinate and articulate Minnesota's agriculture 
112.21  education policy across all programs and institutions; 
112.22     (4) identify the critical needs for agriculture educators; 
112.23     (5) serve as a link between the agribusiness sector and the 
112.24  agriculture education system to communicate mutual concerns, 
112.25  needs, and projections; 
112.26     (6) establish and maintain an increased awareness of 
112.27  agriculture education and its continued need to all citizens of 
112.28  Minnesota; 
112.29     (7) may establish a Minnesota center for agriculture 
112.30  education and may establish the center's duties and 
112.31  responsibilities; and 
112.32     (8) gain broad public support for agriculture education in 
112.33  Minnesota. 
112.34     Subd. 3.  [COUNCIL OFFICERS; TERMS AND COMPENSATION OF 
112.35  APPOINTEES; STAFF.] (a) The council's membership terms, 
112.36  compensation, filing of vacancies, and removal of members are as 
113.1   provided in section 15.0575. 
113.2      (b) The council may employ an executive director and any 
113.3   other staff to carry out its functions. 
113.4      (c) The council expires June 30, 2001. 
113.5      Sec. 12.  [126.685] [LIFEWORK DEVELOPMENT PLAN.] 
113.6      A school district may require students in grades 7 through 
113.7   12 to develop and maintain a record of all of the students' 
113.8   lifework development activities.  This record would include, but 
113.9   is not limited to, the students' goals, skills, abilities, and 
113.10  interests, as well as information on formal service learning, 
113.11  out-of-school learning experiences, and career-related 
113.12  experiences, such as job shadowing, career mentoring, 
113.13  internships, apprenticeships, entrepreneurship, and other 
113.14  work-based learning activities.  This ongoing record would 
113.15  assist the students in choosing their school-based courses, 
113.16  assist them in completing the profiles of learning for high 
113.17  school graduation, and assist them in the research and 
113.18  exploration of career options.  Each school year, the record 
113.19  would be reviewed by the student, the student's parent or 
113.20  guardian, school and career counselors, and other appropriately 
113.21  trained school personnel to ensure that the record is updated 
113.22  and reflects the student's changing life goals and aspirations.  
113.23  The record would serve as the basis of a lifework plan that 
113.24  would be developed before graduation.  The plan would outline 
113.25  the skills the students need to develop in order to attain their 
113.26  career aspirations.  The plan would also outline future 
113.27  education and training options necessary to achieve their 
113.28  lifework goals. 
113.29     Sec. 13.  Minnesota Statutes 1996, section 268.665, 
113.30  subdivision 2, is amended to read: 
113.31     Subd. 2.  [MEMBERSHIP.] The governor's workforce 
113.32  development council is composed of 32 33 members appointed by 
113.33  the governor.  The members may be removed pursuant to section 
113.34  15.059.  In selecting the representatives of the council, the 
113.35  governor shall ensure that 50 percent of the members come from 
113.36  nominations provided by local workforce councils.  Local 
114.1   education representatives shall come from nominations provided 
114.2   by local education to employment partnerships.  The 32 members 
114.3   shall represent the following sectors:  
114.4      (a) State agencies:  the following individuals shall serve 
114.5   on the council:  
114.6      (1) commissioner of the Minnesota department of economic 
114.7   security; 
114.8      (2) commissioner of the Minnesota department of children, 
114.9   families, and learning; 
114.10     (3) commissioner of the Minnesota department of human 
114.11  services; and 
114.12     (4) commissioner of the Minnesota department of trade and 
114.13  economic development. 
114.14     (b) Business and industry:  six individuals shall represent 
114.15  the business and industry sectors of Minnesota. 
114.16     (c) Organized labor:  six individuals shall represent labor 
114.17  organizations of Minnesota. 
114.18     (d) Community-based organizations:  four individuals shall 
114.19  represent community-based organizations of Minnesota.  
114.20  Community-based organizations are defined by the Job Training 
114.21  Partnership Act as private nonprofit organizations that are 
114.22  representative of communities or significant segments of 
114.23  communities and that provide job training services, agencies 
114.24  serving youth, agencies serving individuals with disabilities, 
114.25  agencies serving displaced homemakers, union-related 
114.26  organizations, and employer-related nonprofit organizations and 
114.27  organizations serving nonreservation Indians and tribal 
114.28  governments. 
114.29     (e) Education:  five six individuals shall represent the 
114.30  education sector of Minnesota as follows:  
114.31     (1) one individual shall represent local public secondary 
114.32  education; 
114.33     (2) one individual shall have expertise in design and 
114.34  implementation of school-based service-learning; 
114.35     (3) one individual shall represent post-secondary 
114.36  education; 
115.1      (4) one individual shall represent secondary/post-secondary 
115.2   vocational institutions; and 
115.3      (5) the chancellor of the board of trustees of the 
115.4   Minnesota state colleges and universities; and 
115.5      (6) one individual shall have expertise in agricultural 
115.6   education. 
115.7      (f) Other:  two individuals shall represent other 
115.8   constituencies including: 
115.9      (1) units of local government; and 
115.10     (2) applicable state or local programs. 
115.11     The speaker and the minority leader of the house of 
115.12  representatives shall each appoint a representative to serve as 
115.13  an ex officio member of the council.  The majority and minority 
115.14  leaders of the senate shall each appoint a senator to serve as 
115.15  an ex officio member of the council.  After January 1, 1997, the 
115.16  Minnesota director of the corporation for national service shall 
115.17  also serve as an ex officio member.  
115.18     (g) Appointment:  each member shall be appointed for a term 
115.19  of three years from the first day of January or July immediately 
115.20  following their appointment.  Elected officials shall forfeit 
115.21  their appointment if they cease to serve in elected office.  
115.22     (h) Members of the council are compensated as provided in 
115.23  section 15.059, subdivision 3. 
115.24     Sec. 14.  Laws 1993, chapter 146, article 5, section 20, is 
115.25  amended to read: 
115.26     Sec. 20.  [REPEALER.] 
115.27     Sections 6 to 12 are repealed June 30, 1998 2001. 
115.28     Sec. 15.  Laws 1995, First Special Session chapter 3, 
115.29  article 4, section 29, subdivision 8, is amended to read: 
115.30     Subd. 8.  [EDUCATION AND EMPLOYMENT TRANSITIONS PROGRAM 
115.31  GRANTS.] For local education and employment transitions program 
115.32  grants: 
115.33       $2,500,000      .....      1996 
115.34       $2,500,000      .....      1997 
115.35     $600,000 each year is for development of a labor-management 
115.36  information system to support education to employment 
116.1   transitions programs. 
116.2      $575,000 each year is for youth apprenticeship program 
116.3   grants.  Youth apprenticeship program grants may only be awarded 
116.4   to local education and employment transitions partnerships or to 
116.5   a youth apprenticeship program that previously received a youth 
116.6   apprenticeship demonstration program grant according to Laws 
116.7   1993, chapter 335, section 7. 
116.8      $1,000,000 each year is for local program grants, of which 
116.9   $100,000 must be used for youth entrepreneurship grants under 
116.10  Minnesota Statutes, section 116J.655, and $100,000 must be used 
116.11  for youth employer grants under section 28.  
116.12     $325,000 each year is for state-level activities, including 
116.13  the governor's workforce development council. 
116.14     Any unexpended balance remaining in the first year does not 
116.15  cancel but is available in the second year. 
116.16     Grants to the Minnesota Historical Society under this 
116.17  subdivision are available during the fiscal year ending June 30, 
116.18  1998. 
116.19     Sec. 16.  [DAWSON-BOYD ADULT FARM MANAGEMENT LEVY.] 
116.20     In addition to other levies, independent school district 
116.21  No. 378, Dawson-Boyd, may levy an amount up to $132,000 for the 
116.22  unreimbursed costs of an adult farm management program.  This 
116.23  amount may be levied over a period of three years. 
116.24     Sec. 17.  [MODEL LIFEWORK LEARNING SITES.] 
116.25     Subdivision 1.  [PURPOSE.] A program is established to 
116.26  designate and create lifework learning sites that will develop 
116.27  and model practices of lifework learning.  Lifework learning 
116.28  includes vocational education and all other dimensions of 
116.29  education related to preparation for work, family and community 
116.30  responsibilities, and lifelong learning. 
116.31     Subd. 2.  [DEFINITION.] A "lifework learning site" means a 
116.32  site that focuses on lifework learning and school-to-work model 
116.33  practices.  A lifework learning site may include, but is not 
116.34  limited to: 
116.35     (1) a facility that is located or connected to a school; or 
116.36     (2) a facility colocated with an educational, commercial, 
117.1   or community enterprise. 
117.2      Subd. 3.  [DESIGNATION.] To be designated a "lifework 
117.3   learning site," the site must: 
117.4      (1) develop, implement, and model practices and techniques 
117.5   consistent with lifework learning and school-to-work performance 
117.6   indicators; 
117.7      (2) provide training to school and nonschool staff on 
117.8   lifework learning and school-to-work practices and 
117.9   methodologies; 
117.10     (3) provide real world, school-based, work-based, and 
117.11  service-based learning experiences that are integrated with 
117.12  academic studies to meet Minnesota's graduation standards; 
117.13     (4) conduct assessments and evaluations of the various 
117.14  lifework learning and school-to-work model practices; and 
117.15     (5) disseminate materials and information about the 
117.16  activities of the lifework learning site through the state's 
117.17  information clearinghouse on lifework learning and 
117.18  school-to-work. 
117.19     Subd. 4.  [APPLICATION.] (a) A lifework learning site 
117.20  applicant must be a public school, a school district, or 
117.21  multidistricts that are a partner in a local/regional 
117.22  school-to-work partnership.  To be eligible for designation as a 
117.23  lifework learning site and grant the public school or school 
117.24  district, or multidistricts must submit an application to the 
117.25  governor's workforce council in the form and manner prescribed 
117.26  by the council. 
117.27     (b) With the advice and upon the recommendation of the 
117.28  vocational high school planning committee appointed under Laws 
117.29  1995, First Special Session chapter 3, article 3, section 12, 
117.30  the council must select lifework learning sites based on the 
117.31  following criteria: 
117.32     (1) demonstration of a commitment to the purpose of 
117.33  lifework learning and school-to-work practices and 
117.34  methodologies; 
117.35     (2) capacity and willingness to work with the 
117.36  local/regional school-to-work partnership, and to coordinate, 
118.1   align, and reposition resources to ensure that adequate 
118.2   resources are available for the functioning of the site; 
118.3      (3) ability to implement teaching and learning strategies 
118.4   that support the graduation standards and innovative teaching 
118.5   and learning practices; 
118.6      (4) ability to develop and provide ongoing training for 
118.7   school and nonschool partners; 
118.8      (5) demonstration of the utilization of existing 
118.9   educational, commercial, or community facilities; 
118.10     (6) demonstration of how the lifework learning site will 
118.11  serve all learners within the community; and 
118.12     (7) demonstration of a long-term financial plan to sustain 
118.13  the lifework learning site. 
118.14     Subd. 5.  [START-UP GRANTS AWARDS.] A maximum of five shall 
118.15  be awarded to a site selected under subdivision 3 of this 
118.16  section.  In order for the site to receive the start-up grant, 
118.17  it must match the grant amount with federal, local, or private 
118.18  sources.  The grant shall be used for the start-up costs of the 
118.19  lifework learning site. 
118.20     Subd. 6.  [REPORT.] A public school, school district, or 
118.21  school district receiving a lifework learning site grant shall 
118.22  report annually for three years to the commissioner of children, 
118.23  families, and learning on the implementation and educational 
118.24  impact of the lifework learning site. 
118.25     Sec. 18.  [SOUTHWEST STAR CONCEPT SCHOOL.] 
118.26     Subdivision 1.  [PILOT PROJECT.] The Southwest Star Concept 
118.27  School pilot project is created.  The purpose of the project is 
118.28  to serve as a model for the state of Minnesota demonstrating the 
118.29  capability of a small school district to provide a curriculum 
118.30  focusing on applied learning and teaching methodology allowing 
118.31  students to reach high levels of performance on the state 
118.32  graduation standards. 
118.33     Subd. 2.  [ACTIVITIES.] The school board of independent 
118.34  school district No. 330, Heron Lake-Okabena, must develop the 
118.35  Southwest Star Concept School, including its academic framework, 
118.36  goals, and delivery system in consultation with community 
119.1   members, teachers, and parents. 
119.2      Subd. 3.  [REPORT.] Independent school district No. 330, 
119.3   Heron Lake-Okabena, shall conduct an ongoing study of the pilot 
119.4   project.  The ongoing study shall evaluate and compare outcomes 
119.5   and student performance to other similarly situated school 
119.6   districts and measure changes in outcomes and student 
119.7   performance within the school over time.  The school district 
119.8   shall annually report its results to the legislature by February 
119.9   15 of each year.  A final report must be issued by February 15, 
119.10  2002. 
119.11     Sec. 19.  [APPROPRIATIONS.] 
119.12     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
119.13  LEARNING.] The sums indicated in this section are appropriated 
119.14  from the general fund to the department of children, families, 
119.15  and learning for the fiscal years designated. 
119.16     Subd 2.  [YOUTH WORKS PROGRAM.] For the youth works program 
119.17  according to Minnesota Statutes, section 121.707: 
119.18       $1,863,000      .....      1998 
119.19       $1,813,000      .....      1999 
119.20     The commissioner may allocate up to $50,000 of the fiscal 
119.21  year 1998 appropriation is for the cost of administering the 
119.22  program. 
119.23     A grantee organization may provide health and child care 
119.24  coverage to the dependents of each participant enrolled in a 
119.25  full-time youth works program to the extent such coverage is not 
119.26  otherwise available. 
119.27     Subd. 3.  [EDUCATION AND EMPLOYMENT TRANSITIONS PROGRAM 
119.28  GRANTS.] For education and employment transitions program: 
119.29       $5,000,000      .....      1998 
119.30       $5,000,000      .....      1999 
119.31     $500,000 each year is for development of MnCEPs, an 
119.32  Internet-based education and employment information system.  
119.33  These are one-time funds. 
119.34     $1,250,000 each year is for a rebate program for qualifying 
119.35  employers who employ less than 250 employees, who offer youth 
119.36  internships to educators.  An employer may apply for a rebate of 
120.1   up to $500 for each paid youth internship and each educator 
120.2   internship, and up to $3,000 for each paid youth 
120.3   apprenticeship.  The commissioner shall determine the 
120.4   application and payment process. 
120.5      $500,000 each year is for youth apprenticeship program 
120.6   grants. 
120.7      $225,000 each year is for youth entrepreneurship grants 
120.8   under Minnesota Statutes, section 121.72.  Of this amount, 
120.9   $25,000 each year is for the high school student 
120.10  entrepreneurship program in independent school district No. 175, 
120.11  Westbrook.  This appropriation shall be used for expenses, 
120.12  including, but not limited to, salaries, travel, seminars, 
120.13  equipment purchases, contractual expenses, and other expenses 
120.14  related to the student-run business. 
120.15     $150,000 each year is for youth employer grants under Laws 
120.16  1995, First Special Session chapter 3, article 4, section 28. 
120.17     $150,000 each year is for parent and community awareness 
120.18  training. 
120.19     $825,000 each year is for the development of career 
120.20  assessment benchmarks, lifework portfolios, industry skill 
120.21  standards, curriculum development, career academies, and career 
120.22  programs for elementary, middle school, and at-risk learners. 
120.23     $400,000 each year is for state level activities, including 
120.24  the governor's workforce council. 
120.25     $275,000 each year is for development of occupational 
120.26  information. 
120.27     $425,000 each year is for a grant to be made available to a 
120.28  county government that has established school-to-work projects 
120.29  with schools located in a city of the first class.  These grants 
120.30  must be used to expand the number of at-risk students 
120.31  participating in these school-to-work projects.  Priority must 
120.32  be given to projects that demonstrate collaboration between 
120.33  private employers, collective bargaining representatives, school 
120.34  officials, and the county government and which prepare at-risk 
120.35  students for long-term employment with private sector employers 
120.36  paying a minimum of 150 percent of the federal poverty level for 
121.1   a family of four and with the majority of their employees in 
121.2   collective bargaining units. 
121.3      $300,000 each year is appropriated for agricultural 
121.4   school-to-work grants. 
121.5      Subd. 4.  [STUDENT ORGANIZATION FOUNDATION.] For the 
121.6   Minnesota school-to-work student organization foundation 
121.7   according to Minnesota Statutes, section 121.615: 
121.8        $200,000     .....     1998
121.9        $200,000     .....     1999
121.10     Subd. 5.  [LIFEWORK LEARNING SITES.] For lifework learning 
121.11  sites according to section 18: 
121.12       $500,000     .....     1998
121.13       $500,000     .....     1999
121.14     The amount of the appropriation not awarded in fiscal year 
121.15  1998 shall be available for fiscal year 1999. 
121.16     Subd. 6.  [SECONDARY VOCATIONAL AID.] For secondary 
121.17  vocational aid according to Minnesota Statutes, section 124.573: 
121.18       $10,617,000     .....     1998
121.19       $10,596,000     .....     1999
121.20     Subd. 7.  [AGRICULTURE EDUCATION LEADERSHIP COUNCIL.] For 
121.21  the operating costs of the Minnesota agriculture education 
121.22  leadership council: 
121.23       $200,000     .....     1998
121.24       $200,000     .....     1999
121.25     Subd. 8.  [SOUTHWEST STAR CONCEPT SCHOOL.] For a grant to 
121.26  independent school district No. 330, Heron Lake-Okabena, to 
121.27  establish the Southwest Star Concept School: 
121.28       $193,000     .....     1998
121.29     This appropriation may be used for equipment, activities 
121.30  beyond the classroom walls, professional planning assistance, 
121.31  monitoring, evaluating, and reporting activities related to the 
121.32  case study prepared in section 3. 
121.33                             ARTICLE 4
121.34               EDUCATION ORGANIZATION AND COOPERATION
121.35     Section 1.  Minnesota Statutes 1996, section 121.15, is 
121.36  amended by adding a subdivision to read: 
122.1      Subd. 1a.  [INDOOR AIR QUALITY RESOURCES; COMMISSIONER'S 
122.2   ROLE.] As part of the consultation under subdivision 1, the 
122.3   commissioner shall provide each school district with information 
122.4   concerning indoor air quality. 
122.5      Sec. 2.  Minnesota Statutes 1996, section 121.15, 
122.6   subdivision 6, is amended to read: 
122.7      Subd. 6.  [REVIEW AND COMMENT.] A school district, a 
122.8   special education cooperative, or a cooperative unit of 
122.9   government, as defined in section 123.35, subdivision 19b, 
122.10  paragraph (d), must not initiate an installment contract for 
122.11  purchase or a lease agreement, hold a referendum for bonds, nor 
122.12  solicit bids for new construction, expansion, or remodeling of 
122.13  an educational facility that requires an expenditure in excess 
122.14  of $400,000 per school site prior to review and comment by the 
122.15  commissioner.  A school board shall not separate portions of a 
122.16  single project into components to avoid the requirements of this 
122.17  subdivision.  
122.18     Sec. 3.  Minnesota Statutes 1996, section 121.15, 
122.19  subdivision 7, is amended to read: 
122.20     Subd. 7.  [INFORMATION REQUIRED.] A school board proposing 
122.21  to construct a facility described in subdivision 6 shall submit 
122.22  to the commissioner a proposal containing information including 
122.23  at least the following: 
122.24     (a) the geographic area proposed to be served, whether 
122.25  within or outside the boundaries of the school district; 
122.26     (b) the people proposed to be served, including census 
122.27  findings and projections for the next ten years of the number of 
122.28  preschool and school-aged people in the area; 
122.29     (c) the reasonably anticipated need for the facility or 
122.30  service to be provided; 
122.31     (d) a description of the construction in reasonable detail, 
122.32  including:  the expenditures contemplated; the estimated annual 
122.33  operating cost, including the anticipated salary and number of 
122.34  new staff necessitated by the proposal; and an evaluation of the 
122.35  energy efficiency and effectiveness of the construction, 
122.36  including estimated annual energy costs; and a description of 
123.1   the telephone capabilities of the facility and its classrooms; 
123.2      (e) a description of existing facilities within the area to 
123.3   be served and within school districts adjacent to the area to be 
123.4   served; the extent to which existing facilities or services are 
123.5   used; the extent to which alternate space is available, 
123.6   including other school districts, post-secondary institutions, 
123.7   other public or private buildings, or other noneducation 
123.8   community resources; and the anticipated effect that the 
123.9   facility will have on existing facilities and services; 
123.10     (f) the anticipated benefit of the facility to the area; 
123.11     (g) if known, the relationship of the proposed construction 
123.12  to any priorities that have been established for the area to be 
123.13  served; 
123.14     (h) the availability and manner of financing the facility 
123.15  and the estimated date to begin and complete the facility; 
123.16     (i) desegregation requirements that cannot be met by any 
123.17  other reasonable means; 
123.18     (j) the relationship of the proposed facility to the 
123.19  cooperative integrated learning needs of the area; and 
123.20     (k) the effects of the proposed facility on the district's 
123.21  operating budget; 
123.22     (l) the level of collaboration at the facility between the 
123.23  district and other governmental or nonprofit entities; and 
123.24     (m) the extent to which the district has minimized 
123.25  administrative overhead among facilities. 
123.26     Sec. 4.  Minnesota Statutes 1996, section 121.15, is 
123.27  amended by adding a subdivision to read: 
123.28     Subd. 7b.  [INDOOR AIR QUALITY.] A school board seeking a 
123.29  review and comment under this section must submit information 
123.30  demonstrating to the commissioner's satisfaction that: 
123.31     (1) indoor air quality issues have been considered; and 
123.32     (2) the architects and engineers designing the facility 
123.33  will have professional liability insurance. 
123.34     Sec. 5.  [121.1501] [SCHOOL FACILITY COMMISSIONING.] 
123.35     Subdivision 1.  [APPLICATION.] This section applies to the 
123.36  installation or retrofitting of heating, ventilation, and air 
124.1   conditioning systems for which review and comment of the project 
124.2   under section 121.15 has been requested after July 1, 1997. 
124.3      Subd. 2.  [SYSTEM INSPECTOR.] For purposes of this section, 
124.4   "system inspector" means: 
124.5      (1) a Minnesota licensed architect or engineer; or 
124.6      (2) an air balancing professional certified by either the 
124.7   associated air balance council (AABC) or the national 
124.8   environmental balancing bureau (NEBB). 
124.9      Subd. 3.  [CERTIFICATION.] Prior to occupying or 
124.10  reoccupying a school facility affected by this section, a school 
124.11  board or its designee must submit a document prepared by a 
124.12  system inspector to the local building official or, if the 
124.13  uniform building code does not apply to the school facility, to 
124.14  the commissioner, verifying that the facility's heating, 
124.15  ventilation, and air conditioning system has been installed and 
124.16  operates according to design specifications. 
124.17     Subd. 4.  [OCCUPANCY.] If the document submitted by the 
124.18  school board to the local building official or the commissioner 
124.19  does not demonstrate to that official's satisfaction that the 
124.20  heating, ventilation, and air conditioning system has been 
124.21  installed correctly or that the system is not operating at a 
124.22  level to meet design specifications, the official or 
124.23  commissioner may allow up to one year of occupancy while the 
124.24  heating, ventilation, and air conditioning system is improved to 
124.25  a level that is considered satisfactory by the system inspector. 
124.26     Sec. 6.  Minnesota Statutes 1996, section 124.193, is 
124.27  amended to read: 
124.28     124.193 [PROHIBITED AID AND LEVIES.] 
124.29     Subdivision 1.  [GENERAL PROHIBITION.] Unless specifically 
124.30  permitted in the provision authorizing an aid or a levy, 
124.31  cooperative units of government defined in section 123.35, 
124.32  subdivision 19b, paragraph (d), are prohibited from making a 
124.33  property tax levy or qualifying for or receiving any form of 
124.34  state aid except that a cooperative unit may apply for and 
124.35  receive a grant on behalf of its members as provided in 
124.36  subdivisions 2 and 3. 
125.1      Subd. 2.  [GRANTS.] A cooperative unit may apply for and 
125.2   receive a grant on behalf of its members. 
125.3      Subd. 3.  [ALLOCATION FROM MEMBERS.] By July 15 of each 
125.4   year, a school district may, by board resolution, request the 
125.5   department to make a payment to a third party.  The total sum of 
125.6   the payments for the year may not exceed the lesser of (a) the 
125.7   district's general education aid for the fiscal year beginning 
125.8   July 1, according to sections 124A.036, subdivision 5, and 
125.9   124A.23, subdivision 4, or (b) an amount equal to $100 times the 
125.10  fund balance pupil units for the fiscal year beginning July 1.  
125.11  By July 30 of each year, the school district must report to the 
125.12  commissioner the amount allocated.  The amount shall be paid to 
125.13  the third party according to section 124.195, subdivision 15.  
125.14  Amounts paid to third parties under this subdivision shall be 
125.15  recognized and reported as revenues and expenditures on the 
125.16  school district's books of account under sections 121.904 and 
125.17  121.906. 
125.18     Sec. 7.  Minnesota Statutes 1996, section 124.195, is 
125.19  amended by adding a subdivision to read: 
125.20     Subd. 15.  [PAYMENTS TO THIRD PARTIES.] Notwithstanding 
125.21  subdivision 3, 90 percent of the amounts under section 124.193, 
125.22  subdivision 3, shall be paid in equal installments on August 30, 
125.23  December 30, and March 30, with a ten percent final adjustment 
125.24  payment on October 30 of the next fiscal year. 
125.25     Sec. 8.  Minnesota Statutes 1996, section 124.2445, is 
125.26  amended to read: 
125.27     124.2445 [PURCHASE OF CERTAIN EQUIPMENT.] 
125.28     The board of a school district may issue general obligation 
125.29  certificates of indebtedness or capital notes subject to the 
125.30  school district debt limits to purchase:  (a) vehicles, 
125.31  computers, telephone systems, cable equipment, photocopy and 
125.32  office equipment, technological equipment for instruction, and 
125.33  other capital equipment having an expected useful life at least 
125.34  as long as the terms of the certificates or notes; and (b) 
125.35  computer software, without regard to its expected useful life, 
125.36  whether bundled with machinery or equipment or unbundled.  The 
126.1   certificates or notes must be payable in not more than five 
126.2   years and must be issued on the terms and in the manner 
126.3   determined by the board.  The certificates or notes may be 
126.4   issued by resolution and without the requirement for an 
126.5   election.  The certificates or notes are general obligation 
126.6   bonds for purposes of section 124.755.  A tax levy must be made 
126.7   for the payment of the principal and interest on the 
126.8   certificates or notes, in accordance with section 475.61, as in 
126.9   the case of bonds.  The sum of the tax levies under this section 
126.10  and section 124.2455 for each year must not exceed the amount of 
126.11  the district's total operating capital revenue for the year the 
126.12  initial debt service levies are certified.  The district's 
126.13  general education levy for each year must be reduced by the sum 
126.14  of (1) the amount of the tax levies for debt service certified 
126.15  for each year for payment of the principal and interest on the 
126.16  certificates or notes as required by section 475.61., and (2) 
126.17  any excess amount in the debt redemption fund used to retire 
126.18  certificates or notes issued after April 1, 1997, other than 
126.19  amounts used to pay capitalized interest.  A district using an 
126.20  excess amount in the debt redemption fund to retire the 
126.21  certificates or notes shall report the amount used for this 
126.22  purpose to the commissioner by July 15 of the following fiscal 
126.23  year.  A district having an outstanding capital loan under 
126.24  section 124.431 or an outstanding debt service loan under 
126.25  section 124.42 must not use an excess amount in the debt 
126.26  redemption fund to retire the certificates or notes. 
126.27     Sec. 9.  Minnesota Statutes 1996, section 124.2455, is 
126.28  amended to read: 
126.29     124.2455 [BONDS FOR CERTAIN CAPITAL FACILITIES.] 
126.30     (a) In addition to other bonding authority, with approval 
126.31  of the commissioner, a school district may issue general 
126.32  obligation bonds for certain capital projects under this 
126.33  section.  The bonds must be used only to make capital 
126.34  improvements including: 
126.35     (1) under section 124A.22, subdivision 11, total operating 
126.36  capital revenue uses specified in clauses (4), (6), (7), (8), 
127.1   (9), and (10); 
127.2      (2) the cost of energy modifications; 
127.3      (3) improving handicap accessibility to school buildings; 
127.4   and 
127.5      (4) bringing school buildings into compliance with life and 
127.6   safety codes and fire codes.  
127.7      (b) Before a district issues bonds under this subdivision, 
127.8   it must publish notice of the intended projects, the amount of 
127.9   the bond issue, and the total amount of district indebtedness.  
127.10     (c) A bond issue tentatively authorized by the board under 
127.11  this subdivision becomes finally authorized unless a petition 
127.12  signed by more than 15 percent of the registered voters of the 
127.13  school district is filed with the school board within 30 days of 
127.14  the board's adoption of a resolution stating the board's 
127.15  intention to issue bonds.  The percentage is to be determined 
127.16  with reference to the number of registered voters in the school 
127.17  district on the last day before the petition is filed with the 
127.18  school board.  The petition must call for a referendum on the 
127.19  question of whether to issue the bonds for the projects under 
127.20  this section.  The approval of 50 percent plus one of those 
127.21  voting on the question is required to pass a referendum 
127.22  authorized by this section. 
127.23     (d) The bonds must be paid off within ten years of 
127.24  issuance.  The bonds must be issued in compliance with chapter 
127.25  475, except as otherwise provided in this section.  A tax levy 
127.26  must be made for the payment of principal and interest on the 
127.27  bonds in accordance with section 475.61.  The sum of the tax 
127.28  levies under this section and section 124.2455 for each year 
127.29  must not exceed the amount of the district's total operating 
127.30  capital revenue for the year the initial debt service levies are 
127.31  certified.  The district's general education levy for each year 
127.32  must be reduced by the sum of (1) the amount of the tax levies 
127.33  for debt service certified for each year for payment of the 
127.34  principal and interest on the bonds., and (2) any excess amount 
127.35  in the debt redemption fund used to retire bonds issued after 
127.36  April 1, 1997, other than amounts used to pay capitalized 
128.1   interest.  A district using an excess amount in the debt 
128.2   redemption fund to retire the bonds shall report the amount used 
128.3   for this purpose to the commissioner by July 15 of the following 
128.4   fiscal year.  A district having an outstanding capital loan 
128.5   under section 124.431 or an outstanding debt service loan under 
128.6   section 124.42 must not use an excess amount in the debt 
128.7   redemption fund to retire the bonds. 
128.8      (e) Notwithstanding paragraph (d), bonds issued by a 
128.9   district within the first five years following voter approval of 
128.10  a combination according to section 122.243, subdivision 2, must 
128.11  be paid off within 20 years of issuance.  All the other 
128.12  provisions and limitation of paragraph (d) apply. 
128.13     Sec. 10.  Minnesota Statutes 1996, section 124.2727, 
128.14  subdivision 6d, is amended to read: 
128.15     Subd. 6d.  [REVENUE USES.] (a) A district must place its 
128.16  district cooperation revenue in a reserved account and may only 
128.17  use the revenue to purchase goods and services from entities 
128.18  formed for cooperative purposes or to otherwise provide 
128.19  educational services in a cooperative manner. 
128.20     (b) A district that was a member of an intermediate school 
128.21  district organized pursuant to chapter 136D on July 1, 1994 July 
128.22  1, 1996, must place its district cooperation revenue in a 
128.23  reserved account and must allocate a portion of the reserved 
128.24  revenue for instructional services from entities formed for 
128.25  cooperative services for special education programs and 
128.26  secondary vocational programs.  The allocated amount is equal to 
128.27  the levy made according to section 124.2727, subdivision 6, for 
128.28  taxes payable in 1994 divided by the actual pupil units in the 
128.29  intermediate school district for fiscal year 1995 times the 
128.30  number of actual pupil units in the school district in 1995.  
128.31  The district must use 5/11 of the revenue for special education 
128.32  and 6/11 of the revenue for secondary vocational education.  The 
128.33  district must demonstrate that the revenue is being used to 
128.34  provide the full range of special education and secondary 
128.35  vocational programs and services available to each child served 
128.36  by the intermediate.  The secondary vocational programs and 
129.1   service must meet the requirements established in an 
129.2   articulation agreement developed between the state board of 
129.3   education and the board of trustees of the Minnesota state 
129.4   colleges and universities. 
129.5      (c) A district that was not a member of an intermediate 
129.6   district organized under chapter 136D on July 1, 1994, must 
129.7   spend at least $9 per pupil unit of its district cooperation 
129.8   revenue on secondary vocational programs. 
129.9      Sec. 11.  Minnesota Statutes 1996, section 124.42, 
129.10  subdivision 4, is amended to read: 
129.11     Subd. 4.  Each district receiving a debt service loan shall 
129.12  levy for debt service in that year and each year thereafter, 
129.13  until all its debts to the fund are paid, (a) the amount of its 
129.14  maximum effort debt service levy, or (b) the amount of its 
129.15  required debt service levy less the amount of any debt service 
129.16  loan in that year, whichever is greater.  Whenever the maximum 
129.17  effort debt service levy is greater the district shall remit to 
129.18  the commissioner, within ten days after its receipt of the last 
129.19  regular tax distribution in the year in which it is collected, 
129.20  that portion of the maximum effort debt service tax collections, 
129.21  including penalties and interest, which exceeds the required 
129.22  debt service levy.  The district shall remit payments to the 
129.23  commissioner according to section 124.45.  On or before 
129.24  September 1 30 in each year the commissioner shall notify the 
129.25  county auditor of each county containing taxable property 
129.26  situated within the school district of the amount of the maximum 
129.27  effort debt service levy of the district for that year, and said 
129.28  county auditor or auditors shall extend upon the tax rolls an ad 
129.29  valorem tax upon all taxable property within the district in the 
129.30  aggregate amount so certified.  
129.31     Sec. 12.  Minnesota Statutes 1996, section 124.431, 
129.32  subdivision 11, is amended to read: 
129.33     Subd. 11.  [CONTRACT.] (a) Each capital loan must be 
129.34  evidenced by a contract between the school district and the 
129.35  state acting through the commissioner.  The contract must 
129.36  obligate the state to reimburse the district, from the maximum 
130.1   effort school loan fund, for eligible capital expenses for 
130.2   construction of the facility for which the loan is granted, an 
130.3   amount computed as provided in subdivision 8.  The commissioner 
130.4   must receive from the school district a certified resolution of 
130.5   the school board estimating the costs of construction and 
130.6   reciting that contracts for construction of the facilities for 
130.7   which the loan is granted have been awarded and that bonds of 
130.8   the district have been issued and sold in the amount necessary 
130.9   to pay all estimated costs of construction in excess of the 
130.10  amount of the loan.  The contract must obligate the district to 
130.11  repay the loan out of the excesses of its maximum effort debt 
130.12  service levy over its required debt service levy, including 
130.13  interest at a rate equal to the weighted average annual rate 
130.14  payable on Minnesota state school loan bonds issued for the 
130.15  project and disbursed to the districts on a reimbursement basis, 
130.16  but in no event less than 3-1/2 percent per year on the 
130.17  principal amount from time to time unpaid. 
130.18     (b) The district shall each year, as long as it is indebted 
130.19  to the state, levy for debt service (a) (i) the amount of its 
130.20  maximum effort debt service levy or (b) (ii) the amount of its 
130.21  required debt service levy, whichever is greater, except as the 
130.22  required debt service levy may be reduced by a loan under 
130.23  section 124.42.  On November 20 of each year each district 
130.24  having an outstanding capital loan shall compute the excess 
130.25  amount in the debt redemption fund.  The commissioner shall 
130.26  prescribe the form and calculation to be used in computing the 
130.27  excess amount.  A completed copy of this form shall be sent to 
130.28  the commissioner before December 1 of each year.  The 
130.29  commissioner may recompute the excess amount and shall promptly 
130.30  notify the district of the recomputed amount.  On December 15 of 
130.31  each year, the district shall remit to the commissioner an 
130.32  amount equal to the excess amount in the debt redemption fund.  
130.33  When the maximum effort debt service levy is greater, the 
130.34  district shall remit to the commissioner within ten days after 
130.35  its receipt of the last regular tax distribution in each year, 
130.36  that part of the debt service tax collections, including 
131.1   penalties and interest that exceeded the required debt service 
131.2   levy.  The district shall remit payments to the commissioner 
131.3   according to section 124.45. 
131.4      (c) The commissioner shall supervise the collection of 
131.5   outstanding accounts due the fund and may, by notice to the 
131.6   proper county auditor, require the maximum levy to be made as 
131.7   required in this subdivision.  Interest on capital loans must be 
131.8   paid on December 15 of the year after the year the loan is 
131.9   granted and annually in later years.  On or before September 1 
131.10  30 in each year the commissioner shall notify the county auditor 
131.11  of each county containing taxable property situated within the 
131.12  school district of the amount of the maximum effort debt service 
131.13  levy of the district for that year.  The county auditor or 
131.14  auditors shall extend upon the tax rolls an ad valorem tax upon 
131.15  all taxable property within the district in the aggregate amount 
131.16  so certified. 
131.17     Sec. 13.  Minnesota Statutes 1996, section 124.45, is 
131.18  amended to read: 
131.19     124.45 [PAYMENT AND APPLICATIONS OF PAYMENT.] 
131.20     Subdivision 1.  [PAYMENT.] (a) On November 20 of each year, 
131.21  each district having an outstanding capital loan or debt service 
131.22  loan shall compute the excess amount in the debt redemption 
131.23  fund.  The commissioner shall prescribe the form and calculation 
131.24  to be used in computing the excess amount.  A completed copy of 
131.25  this form shall be sent to the commissioner before December 1 of 
131.26  each year.  The commissioner may recompute the excess amount and 
131.27  shall promptly notify the district of the recomputed amount. 
131.28     (b) On December 15 of each year, the district shall remit 
131.29  to the commissioner an amount equal to the greater of: 
131.30     (i) the excess amount in the debt redemption fund; or 
131.31     (ii) the amount by which the maximum effort debt service 
131.32  levy exceeds the required debt service levy for that calendar 
131.33  year. 
131.34  Any late payments shall be assessed an interest charge using the 
131.35  interest rates specified for the debt service notes and capital 
131.36  loan contracts. 
132.1      (c) If a payment required under the maximum effort school 
132.2   aid law is not made within 30 days, the commissioner may reduce 
132.3   any subsequent payments due the district under chapters 124 and 
132.4   124A by the amount due, after providing written notice to the 
132.5   district. 
132.6      Subd. 2.  [APPLICATION OF PAYMENTS.] The commissioner shall 
132.7   apply payments received from collections of maximum effort debt 
132.8   service levies in excess of required debt service levies of a 
132.9   district on its debt service notes and capital loan 
132.10  contracts under the maximum effort school aid law and aids 
132.11  withheld according to subdivision 1, paragraph (b), as follows:  
132.12  First, to payment of interest accrued on its notes, if any; 
132.13  second, to interest on its contracts, if any; third, toward 
132.14  principal of its notes, if any; and last, toward principal of 
132.15  its contracts, if any.  While more than one note or more than 
132.16  one contract is held, priority of payment of interest shall be 
132.17  given to the one of earliest date, and after interest accrued on 
132.18  all notes is paid, similar priority shall be given in the 
132.19  application of any remaining amount to the payment of 
132.20  principal.  In any year when the receipts from a district are 
132.21  not sufficient to pay the interest accrued on any of its notes 
132.22  or contracts, the deficiency shall be added to the principal, 
132.23  and the commissioner shall notify the district and each county 
132.24  auditor concerned of the new amount of principal of the note or 
132.25  contract. 
132.26     Sec. 14.  Minnesota Statutes 1996, section 124.83, 
132.27  subdivision 1, is amended to read: 
132.28     Subdivision 1.  [HEALTH AND SAFETY PROGRAM.] To receive 
132.29  health and safety revenue for any fiscal year a district must 
132.30  submit to the commissioner of children, families, and learning 
132.31  an application for aid and levy by the date determined by the 
132.32  commissioner.  The application may be for hazardous substance 
132.33  removal, fire and life safety code repairs, labor and industry 
132.34  regulated facility and equipment violations, and health, safety, 
132.35  and environmental management, including indoor air quality 
132.36  management.  The application must include a health and safety 
133.1   program adopted by the school district board.  The program must 
133.2   include the estimated cost, per building, of the program by 
133.3   fiscal year. 
133.4      Sec. 15.  Minnesota Statutes 1996, section 124.83, 
133.5   subdivision 2, is amended to read: 
133.6      Subd. 2.  [CONTENTS OF PROGRAM.] A district must adopt a 
133.7   health and safety program.  The program must include plans, 
133.8   where applicable, for hazardous substance removal, fire and life 
133.9   safety code repairs, regulated facility and equipment 
133.10  violations, and health, safety, and environmental management, 
133.11  including indoor air quality management.  
133.12     (a) A hazardous substance plan must contain provisions for 
133.13  the removal or encapsulation of asbestos from school buildings 
133.14  or property, asbestos-related repairs, cleanup and disposal of 
133.15  polychlorinated biphenyls found in school buildings or property, 
133.16  and cleanup, removal, disposal, and repairs related to storing 
133.17  heating fuel or transportation fuels such as alcohol, gasoline, 
133.18  fuel, oil, and special fuel, as defined in section 296.01.  If a 
133.19  district has already developed a plan for the removal or 
133.20  encapsulation of asbestos as required by the federal Asbestos 
133.21  Hazard Emergency Response Act of 1986, the district may use a 
133.22  summary of that plan, which includes a description and schedule 
133.23  of response actions, for purposes of this section.  The plan 
133.24  must also contain provisions to make modifications to existing 
133.25  facilities and equipment necessary to limit personal exposure to 
133.26  hazardous substances, as regulated by the federal Occupational 
133.27  Safety and Health Administration under Code of Federal 
133.28  Regulations, title 29, part 1910, subpart Z; or is determined by 
133.29  the commissioner to present a significant risk to district staff 
133.30  or student health and safety as a result of foreseeable use, 
133.31  handling, accidental spill, exposure, or contamination. 
133.32     (b) A fire and life safety plan must contain a description 
133.33  of the current fire and life safety code violations, a plan for 
133.34  the removal or repair of the fire and life safety hazard, and a 
133.35  description of safety preparation and awareness procedures to be 
133.36  followed until the hazard is fully corrected. 
134.1      (c) A facilities and equipment violation plan must contain 
134.2   provisions to correct health and safety hazards as provided in 
134.3   department of labor and industry standards pursuant to section 
134.4   182.655.  
134.5      (d) A health, safety, and environmental management plan 
134.6   must contain a description of training, record keeping, hazard 
134.7   assessment, and program management as defined in section 124.829.
134.8      (e) A plan to test for and mitigate radon produced hazards. 
134.9      (f) A plan to monitor and improve indoor air quality. 
134.10     Sec. 16.  Minnesota Statutes 1996, section 124.91, 
134.11  subdivision 1, is amended to read: 
134.12     Subdivision 1.  [TO LEASE BUILDING OR LAND.] (a) When a 
134.13  district finds it economically advantageous to rent or lease a 
134.14  building or land for any instructional purposes or for school 
134.15  storage or furniture repair, and it determines that 
134.16  the operating capital expenditure facilities revenues revenue 
134.17  authorized under sections 124.243 and section 124A.22, 
134.18  subdivision 10, are insufficient for this purpose, it may apply 
134.19  to the commissioner for permission to make an additional capital 
134.20  expenditure levy for this purpose.  An application for 
134.21  permission to levy under this subdivision must contain financial 
134.22  justification for the proposed levy, the terms and conditions of 
134.23  the proposed lease, and a description of the space to be leased 
134.24  and its proposed use.  
134.25     (b) The criteria for approval of applications to levy under 
134.26  this subdivision must include:  the reasonableness of the price, 
134.27  the appropriateness of the space to the proposed activity, the 
134.28  feasibility of transporting pupils to the leased building or 
134.29  land, conformity of the lease to the laws and rules of the state 
134.30  of Minnesota, and the appropriateness of the proposed lease to 
134.31  the space needs and the financial condition of the district.  
134.32  The commissioner must not authorize a levy under this 
134.33  subdivision in an amount greater than the cost to the district 
134.34  of renting or leasing a building or land for approved purposes.  
134.35  The proceeds of this levy must not be used for custodial or 
134.36  other maintenance services.  A district may not levy under this 
135.1   subdivision for the purpose of leasing or renting a 
135.2   district-owned building to itself. 
135.3      (c) For agreements finalized after July 1, 1997, a district 
135.4   may not levy under this subdivision for the purpose of leasing:  
135.5   (1) a newly constructed building used primarily for regular 
135.6   kindergarten, elementary, or secondary instruction; or (2) a 
135.7   newly constructed building addition or additions used primarily 
135.8   for regular kindergarten, elementary, or secondary instruction 
135.9   that contains more than 20 percent of the square footage of the 
135.10  previously existing building. 
135.11     (d) The total levy under this subdivision for a district 
135.12  for any year must not exceed $100 times the actual pupil units 
135.13  for the fiscal year to which the levy is attributable. 
135.14     (e) Notwithstanding paragraph (d), a district that has 
135.15  received levy authority under this subdivision for no fewer than 
135.16  four consecutive years and has failed to receive approval from 
135.17  voters to authorize debt under section 475.58, no fewer than 
135.18  three times within a period of five fiscal years preceding 
135.19  approval under this subdivision may levy for lease or lease 
135.20  purchase agreements.  Levies under this section do not qualify 
135.21  for debt service equalization aid. 
135.22     Sec. 17.  Minnesota Statutes 1996, section 124.95, 
135.23  subdivision 2, is amended to read: 
135.24     Subd. 2.  [ELIGIBILITY.] (a) The following portions of a 
135.25  district's debt service levy qualify for debt service 
135.26  equalization: 
135.27     (1) debt service for repayment of principal and interest on 
135.28  bonds issued before July 2, 1992; 
135.29     (2) debt service for bonds refinanced after July 1, 1992, 
135.30  if the bond schedule has been approved by the commissioner and, 
135.31  if necessary, adjusted to reflect a 20-year maturity schedule; 
135.32  and 
135.33     (3) debt service for bonds issued after July 1, 1992, for 
135.34  construction projects that have received a positive review and 
135.35  comment according to section 121.15, if the commissioner has 
135.36  determined that the district has met the criteria under section 
136.1   124.431, subdivision 2, and if the bond schedule has been 
136.2   approved by the commissioner and, if necessary, adjusted to 
136.3   reflect a 20-year maturity schedule.  
136.4      (b) The criterion in section 124.431, subdivision 2, 
136.5   paragraph (a), clause (2), shall be considered to have been met 
136.6   if the district in the fiscal year in which the bonds are 
136.7   authorized at an election conducted under chapter 475: 
136.8      (i) serves an average of at least 66 pupils per grade in 
136.9   the grades to be served by the facility if grades 9 through 12 
136.10  are to be served by the facility, and an average of at least 66 
136.11  pupils per grade in these grades are served; or 
136.12     (ii) is eligible for elementary or secondary sparsity 
136.13  revenue. 
136.14     (c) The criterion in section 124.431, subdivision 2, 
136.15  paragraph (a), clause (2), shall also be considered to have been 
136.16  met if the construction project under review serves students in 
136.17  prekindergarten to grade 8.  Only the debt service levy for that 
136.18  portion of the facility serving students in prekindergarten 
136.19  through grade 8, as determined by the commissioner, shall be 
136.20  eligible for debt service equalization under this paragraph. 
136.21     (d) The criterion described in section 124.431, subdivision 
136.22  2, paragraph (a), clause (9), does not apply to bonds authorized 
136.23  by elections held before July 1, 1992. 
136.24     (e) For the purpose of this subdivision the department 
136.25  shall determine the eligibility for sparsity at the location of 
136.26  the new facility, or the site of the new facility closest to the 
136.27  nearest operating school if there is more than one new facility. 
136.28     Sec. 18.  Minnesota Statutes 1996, section 136D.72, 
136.29  subdivision 2, is amended to read: 
136.30     Subd. 2.  [TERMS.] The terms of the members of the first 
136.31  school board shall, as nearly as possible, consist of one-third 
136.32  of the members for one year, one-third of the members for two 
136.33  years, and one-third of the members for three years.  The 
136.34  members of the first board shall determine by lot which length 
136.35  of term each member of the first board shall be assigned.  Terms 
136.36  of office of the members of the board shall expire on June 30 
137.1   January 1.  Thereafter the terms of office of board members 
137.2   shall be for three four years commencing on July 1 January 1 of 
137.3   each year.  If a vacancy occurs on the board, it shall be filled 
137.4   by the appropriate school board.  A person appointed to the 
137.5   board shall qualify as a board member by filing with the chief 
137.6   executive officer thereof a written certificate of appointment 
137.7   from the appointing school board.  
137.8      Sec. 19.  Minnesota Statutes 1996, section 136D.72, 
137.9   subdivision 3, is amended to read: 
137.10     Subd. 3.  [ANNUAL ORGANIZATIONAL MEETING.] The first 
137.11  meeting of the first school board shall be at such time mutually 
137.12  agreed to by the members appointed by the participating school 
137.13  districts.  Thereafter The school board shall meet in July 
137.14  January of each year when notified of such meeting by the chief 
137.15  executive officer of the intermediate school district.  At such 
137.16  first the organizational meeting, the officers of the 
137.17  intermediate school district for the current year shall be 
137.18  chosen and such other organizational business as may be 
137.19  necessary shall be conducted. 
137.20     Sec. 20.  [CHISAGO LAKES AREA SCHOOLS, BONDED DEBT.] 
137.21     Independent school district No. 2144, Chisago Lakes Area, 
137.22  may modify its plan adopted according to Minnesota Statutes, 
137.23  section 122.242, subdivision 9, clause (1), so that independent 
137.24  school district No. 2144 assumes all of the remaining debt 
137.25  service as of the effective date of this section for bonds that 
137.26  were outstanding at the time of the combination of independent 
137.27  school districts No. 141, Chisago Lakes and No. 140, Taylors 
137.28  Falls, and the tax levy for that debt service is spread on all 
137.29  the property in independent school district No. 2144, Chisago 
137.30  Lakes Area. 
137.31     Sec. 21.  [DUTIES OF THE DEPARTMENT OF CHILDREN, FAMILIES, 
137.32  AND LEARNING.] 
137.33     Subdivision 1.  [DUTIES.] The department of children, 
137.34  families, and learning must, in collaboration with the 
137.35  departments of health and administration, school districts, and 
137.36  other public and private agencies, develop the following: 
138.1      (1) an indoor air quality maintenance manual; 
138.2      (2) a planning and construction manual to assure indoor air 
138.3   quality; and 
138.4      (3) a public information plan for students, parents, staff, 
138.5   and other members of the public. 
138.6   The above manuals and plans will contain the following elements: 
138.7      (1) process standards for school districts and the 
138.8   department of children, families, and learning to follow when 
138.9   addressing indoor air quality concerns; 
138.10     (2) informational materials for a model school district 
138.11  indoor air quality program; 
138.12     (3) training needs for school district employees; 
138.13     (4) procedures for school districts when disseminating 
138.14  indoor air quality information and test results to parents, 
138.15  teachers, and other persons; 
138.16     (5) indoor air quality considerations under the review and 
138.17  comment process for school buildings, specific evaluations of 
138.18  proposed construction standards and materials, to be included in 
138.19  the review and comment standards; 
138.20     (6) building systems maintenance and housekeeping practices 
138.21  required to assure adequate indoor air quality; 
138.22     (7) architectural, engineering, maintenance engineering, 
138.23  and other design practices to positively affect indoor air 
138.24  quality; 
138.25     (8) regional and state resources available to assist 
138.26  districts with information and training needs of school staff, 
138.27  parents, and community; 
138.28     (9) regional and state resources available to assist 
138.29  districts with medical evaluation relative to indoor air quality 
138.30  complaints; and 
138.31     (10) recommended steps a district should take to attain a 
138.32  satisfactory level of indoor air quality. 
138.33     Subd. 2.  [RESOURCE MANUAL; REPORT.] The indoor air quality 
138.34  resource manual must be made available for distribution and 
138.35  training February 1, 1998, and a report regarding the status of 
138.36  indoor air quality in Minnesota schools will be made to the 1998 
139.1   legislature. 
139.2      Sec. 22.  [INTERDISTRICT COOPERATION FOR SCHOOL DISTRICT 
139.3   NO. 638, SANBORN.] 
139.4      Notwithstanding Minnesota Statutes, section 122.541, 
139.5   subdivision 1, or other law to the contrary, independent school 
139.6   district No. 638, Sanborn, may participate in an interdistrict 
139.7   cooperation agreement with independent school district No. 178, 
139.8   Storden-Jeffers, and independent school district No. 633, 
139.9   Lamberton, although independent school district No. 638, 
139.10  Sanborn, does not operate a school with at least three grades.  
139.11  Resident pupils of independent school district No. 638, Sanborn, 
139.12  may be educated in either of the other two cooperating districts.
139.13     Sec. 23.  [LEASE LEVY; NORTH ST. PAUL-MAPLEWOOD.] 
139.14     Notwithstanding Minnesota Statutes, section 124.91, 
139.15  subdivision 1, independent school district No. 622, North St. 
139.16  Paul-Maplewood, annually may levy the amount necessary to pay 
139.17  its obligations under a lease or a lease with option to purchase 
139.18  agreement during the term of that agreement for the financing of 
139.19  capital improvements approved by its school board to the 
139.20  building, or any portion thereof, at 2520 East Twelfth Avenue, 
139.21  North St. Paul.  The total payments under the terms of the lease 
139.22  may not exceed $4,000,000.  The agreement must be executed by 
139.23  July 1, 1998, and may include a sale and leaseback with option 
139.24  to purchase with a public or private entity.  The agreement is 
139.25  not required to include a nonappropriation clause.  An election 
139.26  is not required in connection with the execution of the 
139.27  agreement and the obligation created by the agreement does not 
139.28  constitute debt and must not be included in the calculation of 
139.29  net debt for the district.  Levies under this section do not 
139.30  qualify for debt service equalization aid. 
139.31     Sec. 24.  [LEVY FOR EXTENDED SCHOOL HOURS AND DAYS.] 
139.32     In addition to other levies, independent school district 
139.33  Nos. 622, North St. Paul-Maplewood-Oakdale; 833, South 
139.34  Washington County; and 834, Stillwater may each levy up to 
139.35  $200,000 each year, in proportion to the number of district 
139.36  students served in the facility, for the costs of operating 
140.1   extended year, extended day, or all day kindergarten programs at 
140.2   the joint elementary facility authorized in Laws 1995, First 
140.3   Special Session chapter 3, article 5, section 19. 
140.4      Sec. 25.  [YOUTH GRANT.] 
140.5      The commissioner may use available bond proceeds under Laws 
140.6   1996, chapter 463, section 4, subdivision 2, to also acquire or 
140.7   demolish recreation buildings or acquire park land. 
140.8      Sec. 26.  [TRANSITION.] 
140.9      As a result of section 18, the terms of office of members 
140.10  and officers of the board shall be lengthened to expire on the 
140.11  January 1 following the June 30 on which they otherwise would 
140.12  have expired. 
140.13     Sec. 27.  [REVENUE USE APPROVAL.] 
140.14     The use of revenue for construction in independent school 
140.15  district No. 561, Goodridge, authorized in Laws 1995, First 
140.16  Special Session chapter 3, article 8, section 23, and in 
140.17  independent school district No. 600, Fisher, authorized in Laws 
140.18  1995, First Special Session chapter 3, article 8, section 22, 
140.19  subdivision 21, is approved.  The department shall not make any 
140.20  levy or aid adjustments based on expenditure changes related to 
140.21  these projects.  
140.22     Sec. 28.  [SPECIAL EDUCATION AND SECONDARY VOCATIONAL 
140.23  FACILITIES.] 
140.24     The commissioner shall review and report on the quality, 
140.25  availability, and accessibility of intermediate school district 
140.26  special education and secondary vocational facilities and shall 
140.27  make recommendations to the legislature concerning alternatives 
140.28  that are cost-effective and in the best interests of the 
140.29  students in such programs. 
140.30     Sec. 29.  [APPROPRIATIONS.] 
140.31     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
140.32  LEARNING.] The sums indicated in this section are appropriated 
140.33  from the general fund to the department of children, families, 
140.34  and learning for the fiscal years designated.  
140.35     Subd. 2.  [SPECIAL CONSOLIDATION AID.] For special 
140.36  consolidation aid under Minnesota Statutes, section 124.2728: 
141.1        $3,000     .....     1998
141.2      The 1998 appropriation includes $3,000 for 1997 and $0 for 
141.3   1998. 
141.4      Subd. 3.  [CONSOLIDATION TRANSITION AID.] For districts 
141.5   consolidating under Minnesota Statutes, section 124.2726: 
141.6        $1,254,000     .....     1998
141.7        $1,151,000     .....     1999
141.8      The 1998 appropriation includes $67,000 for 1997 and 
141.9   $1,187,000 for 1998. 
141.10     The 1999 appropriation includes $131,000 for 1998 and 
141.11  $1,020,000 for 1999. 
141.12     Any balance in the first year does not cancel but is 
141.13  available in the second year. 
141.14     Subd. 4.  [COOPERATION AND COMBINATION AID.] For aid for 
141.15  districts that cooperate and combine according to Minnesota 
141.16  Statutes, section 124.2725: 
141.17       $562,000     .....     1998 
141.18       $ 42,000     .....     1999 
141.19     The 1998 appropriation includes $178,000 for 1997 and 
141.20  $384,000 for 1998.  
141.21     The 1999 appropriation includes $42,000 for 1998 and $0 for 
141.22  1999.  
141.23     Any balance in the first year does not cancel but is 
141.24  available in the second year. 
141.25     Subd. 5.  [DISTRICT COOPERATION REVENUE.] For district 
141.26  cooperation revenue aid: 
141.27       $9,766,000     .....     1998
141.28       $7,821,000     .....     1999
141.29     The 1998 appropriation includes $1,172,000 for 1997 and 
141.30  $8,594,000 for 1998. 
141.31     The 1999 appropriation includes $939,000 for 1998 and 
141.32  $6,882,000 for 1999. 
141.33     Subd. 6.  [HIBBING GRANT.] For a grant to independent 
141.34  school district No. 701, Hibbing, for expenses not covered by 
141.35  insurance for a fire loss at Hibbing high school: 
141.36       $250,000     .....     1998 
142.1      Subd. 7.  [GRANTS FOR FLOOD LOSSES.] For grants to 
142.2   independent school district Nos. 521, Ada; 2176, 
142.3   Warren-Alvarado-Olso; 846, Breckenridge; 595, East Grand Forks; 
142.4   and other districts affected by the 1997 floods, for expenses 
142.5   not covered by insurance, state, or federal disaster relief for 
142.6   flood damage at buildings within the districts: 
142.7        $4,000,000     .....     1997
142.8      The commissioner shall award grants to the districts for an 
142.9   amount that is estimated for the cost of the flood damage to 
142.10  building sites in the districts.  The districts shall reimburse 
142.11  the department in the amount they received in state and federal 
142.12  disaster assistance relief and from flood insurance.  The 
142.13  commissioner may request any necessary information from school 
142.14  districts before awarding a grant. 
142.15     Sec. 30.  [REPEALER.] 
142.16     Minnesota Statutes 1996, section 124.2728, is repealed 
142.17  effective for revenue for fiscal year 1999. 
142.18     Sec. 31.  [EFFECTIVE DATE.] 
142.19     Section 16 is effective for bonds outstanding on July 1, 
142.20  1997, that meet the criteria and is effective for revenue for 
142.21  fiscal year 1999.  Section 20 is effective the day following 
142.22  compliance by the school board of independent school district 
142.23  No. 2144, Chisago Lakes Area, with Minnesota Statutes, section 
142.24  645.021, and contingent upon successful passage of new bond 
142.25  issue under Minnesota Statutes, section 475.58.  Section 29, 
142.26  subdivision 8, and 30 are effective the day following final 
142.27  enactment. 
142.28                             ARTICLE 5
142.29                        EDUCATION EXCELLENCE 
142.30     Section 1.  Minnesota Statutes 1996, section 120.062, 
142.31  subdivision 3, is amended to read: 
142.32     Subd. 3.  [CLOSED DISTRICTS LIMITED ENROLLMENT OF 
142.33  NONRESIDENT PUPILS.] (a) A school board may, by 
142.34  resolution, determine that limit the enrollment of nonresident 
142.35  pupils may not attend any of in its schools or programs 
142.36  according to this section. to a number not less than the lesser 
143.1   of: 
143.2      (1) one percent of the total enrollment at each grade level 
143.3   in the district; or 
143.4      (2) the number of district residents at that grade level 
143.5   enrolled in a nonresident district according to this section.  
143.6      (b) A district that limits enrollment of nonresident pupils 
143.7   under paragraph (a) shall report to the commissioner by July 15 
143.8   on the number of nonresident pupils denied admission due to the 
143.9   limitations on the enrollment of nonresident pupils. 
143.10     Sec. 2.  Minnesota Statutes 1996, section 120.062, 
143.11  subdivision 6, is amended to read: 
143.12     Subd. 6.  [NONRESIDENT DISTRICT PROCEDURES.] A district 
143.13  that does not exclude nonresident pupils, according to 
143.14  subdivision 3, shall notify the parent or guardian in writing by 
143.15  February 15 whether the application has been accepted or 
143.16  rejected.  If an application is rejected, the district must 
143.17  state in the notification the reason for rejection.  The parent 
143.18  or guardian shall notify the nonresident district by March 1 
143.19  whether the pupil intends to enroll in the nonresident 
143.20  district.  Notice of intent to enroll in the nonresident 
143.21  district obligates the pupil to attend the nonresident district 
143.22  during the following school year, unless the school boards of 
143.23  the resident and the nonresident districts agree in writing to 
143.24  allow the pupil to transfer back to the resident district, or 
143.25  the pupil's parents or guardians change residence to another 
143.26  district.  If a parent or guardian does not notify the 
143.27  nonresident district, the pupil may not enroll in that 
143.28  nonresident district during the following school year, unless 
143.29  the school boards of the resident and nonresident district agree 
143.30  otherwise.  The nonresident district shall notify the resident 
143.31  district by March 15 of the pupil's intent to enroll in the 
143.32  nonresident district.  The same procedures apply to a pupil who 
143.33  applies to transfer from one participating nonresident district 
143.34  to another participating nonresident district. 
143.35     Sec. 3.  Minnesota Statutes 1996, section 120.062, 
143.36  subdivision 7, is amended to read: 
144.1      Subd. 7.  [BASIS FOR DECISIONS.] The school board must 
144.2   adopt, by resolution, specific standards for acceptance and 
144.3   rejection of applications.  Standards may include the capacity 
144.4   of a program, class, grade level, or school building.  The 
144.5   school board may not reject applications for enrollment in a 
144.6   particular grade level if the nonresident enrollment at that 
144.7   grade level does not exceed the limit set by the board under 
144.8   subdivision 3.  Standards may not include previous academic 
144.9   achievement, athletic or other extracurricular ability, 
144.10  disabling conditions, proficiency in the English language, or 
144.11  previous disciplinary proceedings, or the student's district of 
144.12  residence.  
144.13     Sec. 4.  Minnesota Statutes 1996, section 120.062, 
144.14  subdivision 11, is amended to read: 
144.15     Subd. 11.  [INFORMATION.] A district that does not exclude 
144.16  nonresident pupils according to subdivision 3 shall make 
144.17  information about the district, schools, programs, policies, and 
144.18  procedures available to all interested people.  
144.19     Sec. 5.  Minnesota Statutes 1996, section 120.064, 
144.20  subdivision 3, is amended to read: 
144.21     Subd. 3.  [SPONSOR.] A school board, private college, 
144.22  community college, state university, technical college, or the 
144.23  University of Minnesota may sponsor one or more charter schools. 
144.24     No more than a total of 40 charter schools may be 
144.25  authorized not more than three of which may be sponsored by 
144.26  public post-secondary institutions.  The state board of 
144.27  education shall advise potential sponsors when the maximum 
144.28  number of charter schools has been authorized. 
144.29     Sec. 6.  Minnesota Statutes 1996, section 120.064, 
144.30  subdivision 8, is amended to read: 
144.31     Subd. 8.  [REQUIREMENTS.] (a) A charter school shall meet 
144.32  all applicable state and local health and safety requirements. 
144.33     (b) The A school must sponsored by a school board may be 
144.34  located in the sponsoring any district, unless another the 
144.35  school board agrees to locate a charter school sponsored by 
144.36  another district in its boundaries of the district of the 
145.1   proposed location disapproves by written resolution.  If such a 
145.2   school board denies a request to locate within its boundaries a 
145.3   charter school sponsored by another district school board, the 
145.4   sponsoring district school board may appeal to the state board 
145.5   of education.  If the state board authorizes the school, the 
145.6   state board shall sponsor the school.  
145.7      (c) A charter school must be nonsectarian in its programs, 
145.8   admission policies, employment practices, and all other 
145.9   operations.  A sponsor may not authorize a charter school or 
145.10  program that is affiliated with a nonpublic sectarian school or 
145.11  a religious institution. 
145.12     (d) Charter schools shall not be used as a method of 
145.13  providing education or generating revenue for students who are 
145.14  being home-schooled. 
145.15     (e) The primary focus of a charter school must be to 
145.16  provide a comprehensive program of instruction for at least one 
145.17  grade or age group from five through 18 years of age.  
145.18  Instruction may be provided to people younger than five years 
145.19  and older than 18 years of age. 
145.20     (f) A charter school may not charge tuition. 
145.21     (g) A charter school is subject to and shall comply with 
145.22  chapter 363 and section 126.21. 
145.23     (h) A charter school is subject to and shall comply with 
145.24  the pupil fair dismissal act, sections 127.26 to 127.39, and the 
145.25  Minnesota public school fee law, sections 120.71 to 120.76. 
145.26     (i) A charter school is subject to the same financial 
145.27  audits, audit procedures, and audit requirements as a school 
145.28  district.  The audit must be consistent with the requirements of 
145.29  sections 121.904 to 121.917, except to the extent deviations are 
145.30  necessary because of the program at the school.  The department 
145.31  of children, families, and learning, state auditor, or 
145.32  legislative auditor may conduct financial, program, or 
145.33  compliance audits. 
145.34     (j) A charter school is a school district for the purposes 
145.35  of tort liability under chapter 466. 
145.36     Sec. 7.  Minnesota Statutes 1996, section 120.064, 
146.1   subdivision 10, is amended to read: 
146.2      Subd. 10.  [PUPIL PERFORMANCE.] A charter school must 
146.3   design its programs to at least meet the outcomes adopted by the 
146.4   state board of education for public school students.  In the 
146.5   absence of state board requirements, the school must meet the 
146.6   outcomes contained in the contract with the sponsor.  The 
146.7   achievement levels of the outcomes contained in the contract may 
146.8   exceed the achievement levels of any outcomes adopted by the 
146.9   state board for public school students. 
146.10     Sec. 8.  Minnesota Statutes 1996, section 120.064, is 
146.11  amended by adding a subdivision to read: 
146.12     Subd. 14b.  [REVIEW AND COMMENT.] The department shall 
146.13  review and comment on the evaluation, by the chartering school 
146.14  district, of the performance of a charter school before the 
146.15  charter school's contract is renewed.  The information from the 
146.16  review and comment shall be reported to the state board of 
146.17  education in a timely manner.  Periodically, the state board 
146.18  shall report trends or suggestions based on the evaluation of 
146.19  charter school contracts to the education committees of the 
146.20  state legislature. 
146.21     Sec. 9.  Minnesota Statutes 1996, section 120.064, 
146.22  subdivision 20a, is amended to read: 
146.23     Subd. 20a.  [TEACHERS TEACHER AND OTHER EMPLOYEE 
146.24  RETIREMENT.] (a) Teachers in a charter school shall be public 
146.25  school teachers for the purposes of chapters 354 and 354a. 
146.26     (b) Except for teachers under paragraph (a), employees in a 
146.27  charter school shall be public employees for the purposes of 
146.28  chapter 353. 
146.29     Sec. 10.  Minnesota Statutes 1996, section 121.11, 
146.30  subdivision 7c, is amended to read: 
146.31     Subd. 7c.  [RESULTS-ORIENTED GRADUATION RULE.] (a) The 
146.32  legislature is committed to establishing a rigorous, 
146.33  results-oriented graduation rule for Minnesota's public school 
146.34  students.  To that end, the state board shall use its rulemaking 
146.35  authority under subdivision 7b to adopt a statewide, 
146.36  results-oriented graduation rule to be completely implemented 
147.1   starting no later than with students beginning ninth grade in 
147.2   the 1996-1997 1998-1999 school year.  The board shall not 
147.3   prescribe in rule or otherwise the delivery system, or form of 
147.4   instruction, or a single statewide form of assessment that local 
147.5   sites must use to meet the requirements contained in this rule. 
147.6      (b) To successfully accomplish paragraph (a), the state 
147.7   board shall set in rule high academic standards for all 
147.8   students.  The standards must contain the foundational skills in 
147.9   the three core curricular areas of reading, writing, and 
147.10  mathematics while meeting requirements for high school 
147.11  graduation.  The standards must also provide an opportunity for 
147.12  students to excel by meeting higher academic standards through a 
147.13  profile of learning that uses curricular requirements to allow 
147.14  allows students to expand their knowledge and skills beyond the 
147.15  foundational skills.  All state board actions regarding the rule 
147.16  must be premised on the following:  
147.17     (1) the rule is intended to raise academic expectations for 
147.18  students, teachers, and schools; 
147.19     (2) any state action regarding the rule must evidence 
147.20  consideration of school district autonomy; and 
147.21     (3) the department of children, families, and learning, 
147.22  with the assistance of school districts, must make available 
147.23  information about all state initiatives related to the rule to 
147.24  students and parents, teachers, and the general public in a 
147.25  timely format that is appropriate, comprehensive, and readily 
147.26  understandable. 
147.27     (c) For purposes of adopting the rule, the state board, in 
147.28  consultation with the department, recognized psychometric 
147.29  experts in assessment, and other interested and knowledgeable 
147.30  educators, using the most current version of professional 
147.31  standards for educational testing, shall evaluate the 
147.32  alternative approaches to assessment.  
147.33     (d) The content of the graduation rule must differentiate 
147.34  between minimum competencies reflected in the basic requirements 
147.35  assessment and rigorous profile of learning standards.  When 
147.36  fully implemented, the requirements for high school graduation 
148.1   in Minnesota must include both basic requirements and the 
148.2   required profile of learning.  The profile of learning must 
148.3   measure student performance using performance-based assessments 
148.4   compiled over time that integrate higher academic standards, 
148.5   higher order thinking skills, and application of knowledge from 
148.6   a variety of content areas.  The profile of learning shall 
148.7   include a broad range of academic experience and, accomplishment 
148.8   , and allow for nonschool based community, work, or 
148.9   post-secondary experiences necessary to achieve the goal of 
148.10  preparing students to function effectively as purposeful 
148.11  thinkers, effective communicators, self-directed learners, 
148.12  productive group participants, and responsible citizens. 
148.13     (e) The state board shall periodically review and report on 
148.14  the assessment process and student achievement with the 
148.15  expectation of raising the standards and expanding high school 
148.16  graduation requirements.  Districts must not require students to 
148.17  pass the basic requirements assessment at a higher standard than 
148.18  the standard set in rules adopted by the state board of 
148.19  education. 
148.20     (f) The state board shall report in writing to the 
148.21  legislature annually by January 15 on its progress in developing 
148.22  and implementing the graduation requirements according to the 
148.23  requirements of this subdivision and section 123.97 until such 
148.24  time as all the graduation requirements are implemented. 
148.25     Sec. 11.  Minnesota Statutes 1996, section 121.11, 
148.26  subdivision 9, is amended to read: 
148.27     Subd. 9.  [UNIFORM FORMS FOR STATE EXAMINATIONS.] Upon the 
148.28  request of any superintendent of any public or private school 
148.29  teaching high school courses in the state, the state board shall 
148.30  designate or prepare uniform forms for state examinations 
148.31  in each high school subject subjects during the month of May of 
148.32  each year; such request shall be in writing and delivered to the 
148.33  commissioner before January first of such year. 
148.34     Sec. 12.  Minnesota Statutes 1996, section 121.611, is 
148.35  amended to read: 
148.36     121.611 [NONLICENSED COMMUNITY EXPERTS; VARIANCE.] 
149.1      Subdivision 1.  [AUTHORIZATION.] Notwithstanding any law or 
149.2   state board of education rule to the contrary, the board of 
149.3   teaching may allow school districts or charter schools to hire 
149.4   nonlicensed community experts to teach in the public schools or 
149.5   charter schools on a limited basis according to this section. 
149.6      Subd. 2.  [APPLICATIONS; CRITERIA.] The school district or 
149.7   charter school shall apply to the board of teaching for approval 
149.8   to hire nonlicensed teaching personnel from the community.  In 
149.9   approving or disapproving the district's application for each 
149.10  community expert, the board shall consider: 
149.11     (1) the qualifications of the community person whom the 
149.12  district or charter school proposes to employ; 
149.13     (2) the reasons for the district's need for a variance from 
149.14  the teacher licensure requirements; 
149.15     (3) the district's efforts to obtain licensed teachers, who 
149.16  are acceptable to the school board, for the particular course or 
149.17  subject area or the charter school's efforts to obtain licensed 
149.18  teachers for the particular course or subject area; 
149.19     (4) the amount of teaching time for which the community 
149.20  expert would be hired; 
149.21     (5) the extent to which the district or charter school is 
149.22  utilizing other nonlicensed community experts under this 
149.23  section; 
149.24     (6) the nature of the community expert's proposed teaching 
149.25  responsibility; and 
149.26     (7) the proposed level of compensation to the community 
149.27  expert. 
149.28     Subd. 3.  [APPROVAL OF PLAN.] The board of teaching shall 
149.29  approve or disapprove an application within 60 days of receiving 
149.30  it from a school district or charter school. 
149.31     Sec. 13.  Minnesota Statutes 1996, section 123.951, is 
149.32  amended to read: 
149.33     123.951 [SCHOOL SITE DECISION-MAKING AGREEMENT.] 
149.34     Subdivision 1.  [PURPOSE.] The purpose of school site 
149.35  decision-making is to improve student performance, to increase 
149.36  parental involvement in schools, and to enhance the ability of 
150.1   school boards, students, and parents to hold schools accountable 
150.2   for results. 
150.3      Subd. 2.  [DEFINITION.] "Education site" means a separate 
150.4   facility.  A program within a facility is an education site if 
150.5   the school board recognizes it as a site.  
150.6      Subd. 3.  [AGREEMENT.] (a) A Either the school board or the 
150.7   school site may request that the school board may enter into an 
150.8   agreement with a school site decision-making team concerning the 
150.9   governance, management, or control of any the school in the 
150.10  district.  Upon a written request from a proposed school site 
150.11  decision-making team, An initial school site decision-making 
150.12  team shall be appointed by the school board principal and may 
150.13  include the school principal, representatives of teachers in the 
150.14  school, representatives of other employees in the school, 
150.15  representatives of parents of pupils in the school, 
150.16  representatives of pupils in the school, representatives of or 
150.17  other members in the community, or others determined appropriate 
150.18  by the board.  The school site decision-making team shall 
150.19  include the school principal or other person having general 
150.20  control and supervision of the school.  No more than one-half of 
150.21  the members shall be employees of the district. 
150.22     (b) School site decision-making agreements must delegate 
150.23  powers and duties to site teams and involve staff members, 
150.24  students as appropriate, and parents in decision making. 
150.25     (c) An agreement shall include: 
150.26     (1) a statement of specific powers, duties, 
150.27  responsibilities, and authority to be delegated to the site; 
150.28     (2) the process by which the site team will define roles, 
150.29  accountability, responsibilities, and authority within the site; 
150.30  and 
150.31     (3) a written learning site performance expectation 
150.32  agreement with each education site for the purpose of setting 
150.33  learning performance expectations for that site, including: 
150.34     (i) the previous year baseline information at the site 
150.35  regarding student achievement based on the graduation standards, 
150.36  remediation needs, student attendance and behavior patterns, 
151.1   retention rates, dropout rates where applicable, other 
151.2   nationally normed standardized tests, and other student 
151.3   performance indicators at the site; 
151.4      (ii) the expected levels of improvement in each area of 
151.5   student performance during the next year; 
151.6      (iii) how student performance will be measured including 
151.7   assessment procedures required by law and rule; 
151.8      (iv) other performance expectations and measures determined 
151.9   by the board, including, but not limited to, increased parental 
151.10  involvement in learning activities with students, community 
151.11  involvement, or other areas; 
151.12     (v) frequency of site reporting to the board; and 
151.13     (vi) how the performance results will be made available to 
151.14  parents and to the public. 
151.15     The board and site shall determine the method of developing 
151.16  the learning site performance expectations. 
151.17     The learning site performance expectation agreement must be 
151.18  completed not later than July prior to the beginning of the 
151.19  school year.  However, for the 1997-1998 school year, a school 
151.20  board planning to enter into a learning site performance 
151.21  expectation agreement must notify the commissioner by November 1 
151.22  of its plan to enter an agreement to be eligible for site 
151.23  performance pay according to subdivision 5. 
151.24  The term of an agreement shall be for no more than two years.  
151.25  An agreement may be renewed for no more than two years at a time.
151.26     (c) (d) An agreement may include: 
151.27     (1) a mechanism to implement flexible support systems for 
151.28  improvement in student achievement of education outcomes and for 
151.29  implementation of the graduation rule; 
151.30     (2) a decision-making structure that allows teachers to 
151.31  identify instructional problems and control and apply the 
151.32  resources needed to solve them; 
151.33     (3) a mechanism to allow principals, or other persons 
151.34  having general control and supervision of the school, to make 
151.35  decisions regarding how financial and personnel resources are 
151.36  best allocated at the site and from whom goods or services are 
152.1   purchased; 
152.2      (4) a mechanism to implement parental involvement programs 
152.3   under section 126.69 and to provide for effective parental 
152.4   communication and feedback on this involvement at the site 
152.5   level; 
152.6      (5) a provision that would allow the team to determine who 
152.7   is hired into licensed and nonlicensed positions; 
152.8      (6) a provision that would allow teachers to choose the 
152.9   principal or other person having general control; 
152.10     (7) a provision that allows direct contact with other 
152.11  social service providers; 
152.12     (8) in-service training for site decision-making team 
152.13  members for financial management of school sites; and 
152.14     (9) an amount of revenue allocated to the site under 
152.15  subdivision 4; and 
152.16     (10) any other powers and duties determined appropriate by 
152.17  the board. 
152.18     The school board of the district remains the legal employer 
152.19  under clauses (5) and (6). 
152.20     (d) (e) Any powers or duties not delegated to the school 
152.21  site management team in the school site management agreement 
152.22  shall remain with the school board. 
152.23     (e) (f) Approved agreements shall be filed with the 
152.24  commissioner.  If a school board denies a request to enter into 
152.25  a school site management agreement, it shall provide a copy of 
152.26  the request and the reasons for its denial to the commissioner.  
152.27     Subd. 4.  [REVENUE AND COST ALLOCATION; SITE-BASED 
152.28  DECISION-MAKING AID.] (a) Revenue for a fiscal year received or 
152.29  receivable by the district shall be allocated to education sites 
152.30  according to this subdivision if agreed to by the school board 
152.31  and the site-based decision-making team.  Revenue shall remain 
152.32  allocated to each site until used by the site.  The site teams 
152.33  and the board may enter an agreement that permits the district 
152.34  to provide services and retain the revenue required to pay for 
152.35  the services provided.  The district remains responsible for 
152.36  legally entering into contracts and expending funds. 
153.1      (b) Except as provided in paragraph (c), not less than 75 
153.2   percent of the general education and referendum revenue, 
153.3   excluding total operating capital revenue under section 124A.22, 
153.4   subdivision 10, and not less than 25 percent of the total 
153.5   operating capital revenue under section 124A.22, subdivision 10, 
153.6   shall be allocated to participating education sites in the 
153.7   district.  The allocation shall be based on the number of pupil 
153.8   units served at the site as a portion of total pupil units 
153.9   served in the district. 
153.10     (c) One hundred percent of compensatory education revenue 
153.11  shall be allocated to the education sites at which qualifying 
153.12  students were enrolled as determined under section 124.175.  
153.13  Revenue received under sections 124.312, 124.3201, 124.3202, 
153.14  124.321, 124.322, 124.323, and 124.574 shall be allocated to the 
153.15  sites where the costs are incurred.  If costs exceed available 
153.16  revenue, the agreement shall include a provision for additional 
153.17  revenue to be allocated to the site. 
153.18     (d) The district must charge the accounts of each site the 
153.19  actual costs of goods and services from the general or capital 
153.20  funds attributable to the site. 
153.21     (e) For the purposes of this subdivision, "allocation" 
153.22  means that the determination of the use of the revenue shall be 
153.23  under the control of the site. 
153.24     (f) A district's site-based decision-making aid is equal to 
153.25  $3 for fiscal year 1998 and $3 for fiscal year 1999 and later 
153.26  years times the actual pupil units enrolled at sites operating 
153.27  under subdivision 3, paragraph (d), clause (9).  At least 50 
153.28  percent of this revenue shall be allocated to the school site 
153.29  and the board may use the remaining amount at its discretion for 
153.30  learning improvement.  
153.31     Subd. 5.  [SITE PERFORMANCE PAY AID.] (a) The learning site 
153.32  performance expectation agreement under subdivision 3 may 
153.33  include the awarding of additional revenue to the site if the 
153.34  site achieves or exceeds the expected levels of improvement.  A 
153.35  determination by the board as to whether to make an award to an 
153.36  education site and the amount of the award shall be final.  
154.1      (b) An education site that receives site performance pay 
154.2   has sole discretion over the use of the revenue as long as it is 
154.3   used for an educational purpose for that site.  Uses of the 
154.4   revenue may include staff development, technology, compensation, 
154.5   materials or equipment, or other such educational purposes.  
154.6      (c) Each school district that has established a site 
154.7   performance pay program under this subdivision shall receive 
154.8   site performance pay aid in the amount of $1 for fiscal year 
154.9   1998 and $1 for fiscal year 1999 and later years times the 
154.10  actual pupil units enrolled at the sites with a site performance 
154.11  pay program.  The aid may only be used to establish and operate 
154.12  a site performance pay award program.  A district is not 
154.13  required to expend any specific amount of aid in any year.  The 
154.14  district shall deposit the aid in a separate account in the 
154.15  general fund.  Revenue received under this section shall not be 
154.16  included in the determination of the reduction under section 
154.17  124A.26, subdivision 1. 
154.18     Subd. 6.  [COMMISSIONER'S ROLE.] The commissioner of the 
154.19  department of children, families, and learning shall: 
154.20     (1) upon request, provide technical support for districts 
154.21  and sites with agreements under this section; 
154.22     (2) conduct and compile research on the effectiveness of 
154.23  site decision making; and 
154.24     (3) periodically report on and evaluate the effectiveness 
154.25  of site management agreements on a statewide basis. 
154.26     Sec. 14.  Minnesota Statutes 1996, section 123.972, 
154.27  subdivision 5, is amended to read: 
154.28     Subd. 5.  [REPORT.] (a) By October 1 of each year, the 
154.29  school board shall use standard statewide reporting procedures 
154.30  the commissioner develops and adopt a report that includes the 
154.31  following: 
154.32     (1) student performance goals for meeting state graduation 
154.33  standards adopted for that year; 
154.34     (2) results of local assessment data, and any additional 
154.35  test data; 
154.36     (3) the annual school district improvement plans; and 
155.1      (4) information about district and learning site progress 
155.2   in realizing previously adopted improvement plans; and 
155.3      (5) the amount and type of revenue generated by each 
155.4   education site as defined in section 123.951, subdivision 2. 
155.5      (b) The school board shall publish the report in the local 
155.6   newspaper with the largest circulation in the district or by 
155.7   mail.  The board shall make a copy of the report available to 
155.8   the public for inspection.  The board shall send a copy of the 
155.9   report to the commissioner of children, families, and learning 
155.10  by October 15 of each year. 
155.11     (c) The title of the report shall contain the name and 
155.12  number of the school district and read "Annual Report on 
155.13  Curriculum, Instruction, and Student Performance."  The report 
155.14  must include at least the following information about advisory 
155.15  committee membership: 
155.16     (1) the name of each committee member and the date when 
155.17  that member's term expires; 
155.18     (2) the method and criteria the school board uses to select 
155.19  committee members; and 
155.20     (3) the date by which a community resident must apply to 
155.21  next serve on the committee. 
155.22     Sec. 15.  Minnesota Statutes 1996, section 124.248, is 
155.23  amended by adding a subdivision to read: 
155.24     Subd. 2a.  [BUILDING LEASE AID.] When a charter school 
155.25  finds it economically advantageous to rent or lease a building 
155.26  or land for any instructional purposes and it determines that 
155.27  the total operating capital revenue under section 124A.22, 
155.28  subdivision 10, is insufficient for this purpose, it may apply 
155.29  to the commissioner for building lease aid for this purpose.  
155.30  Criteria for aid approval and revenue uses shall be as defined 
155.31  for the building lease levy in section 124.91, subdivision 1.  
155.32  The amount of building lease aid per pupil unit for a charter 
155.33  school for any year shall not exceed the lesser of (a) 80 
155.34  percent of the approved cost or (b) the product of the actual 
155.35  pupil units for the current school year times the sum of the 
155.36  state average debt redemption fund revenue plus capital revenue, 
156.1   according to section 124.91, per actual pupil unit for the 
156.2   current fiscal year. 
156.3      Sec. 16.  Minnesota Statutes 1996, section 124.248, 
156.4   subdivision 4, is amended to read: 
156.5      Subd. 4.  [OTHER AID, GRANTS, REVENUE.] (a) A charter 
156.6   school is eligible to receive other aids, grants, and revenue 
156.7   according to chapters 120 to 129, as though it were a school 
156.8   district except that, notwithstanding section 124.195, 
156.9   subdivision 3, the payments shall be of an equal amount on each 
156.10  of the 23 payment dates unless a charter school is in its first 
156.11  year of operation in which case it shall receive on its first 
156.12  payment date 15 10 percent of its cumulative amount guaranteed 
156.13  for the year and 22 payments of an equal amount thereafter the 
156.14  sum of which shall be 85 90 percent of the cumulative amount 
156.15  guaranteed.  However, it may not receive aid, a grant, or 
156.16  revenue if a levy is required to obtain the money, except as 
156.17  otherwise provided in this section.  Federal aid received by the 
156.18  state must be paid to the school, if it qualifies for the aid as 
156.19  though it were a school district. 
156.20     (b) Any revenue received from any source, other than 
156.21  revenue that is specifically allowed for operational, 
156.22  maintenance, capital facilities revenue under paragraph (c), and 
156.23  capital expenditure equipment costs under this section, may be 
156.24  used only for the planning and operational start-up costs of a 
156.25  charter school.  Any unexpended revenue from any source under 
156.26  this paragraph must be returned to that revenue source or 
156.27  conveyed to the sponsoring school district, at the discretion of 
156.28  the revenue source. 
156.29     (c) A charter school may receive money from any source for 
156.30  capital facilities needs.  Any unexpended capital facilities 
156.31  revenue must be reserved and shall be expended only for future 
156.32  capital facilities purposes.  In the year-end report to the 
156.33  state board of education, the charter school shall report the 
156.34  total amount of funds received from grants and other outside 
156.35  sources. 
156.36     Sec. 17.  [124.253] [CHARTER SCHOOL START-UP LOAN FUND.] 
157.1      (a) A charter school start-up loan fund is created in the 
157.2   general fund in the state treasury.  $2,000,000 shall be 
157.3   deposited in the fund on July 1, 1997, for initial 
157.4   capitalization.  Any interest earned on the principal of the 
157.5   fund shall be retained by the fund and available for 
157.6   distribution.  At the end of every fiscal year, any balance in 
157.7   the fund in excess of $2,000,000 shall not cancel. 
157.8      (b) A charter school operating under section 120.064 or a 
157.9   program which has been granted a charter under section 120.064 
157.10  may apply to the commissioner of children, families, and 
157.11  learning for a loan from the charter school facilities fund. 
157.12  Each dollar of state money must be matched by the charter school 
157.13  with at least 50 cents of nonstate money. 
157.14     (c) Loans shall be used for curriculum planning, budget 
157.15  planning, development of information for students and parents, 
157.16  purchasing equipment and other uses approved by the commissioner 
157.17  of children, families, and learning.  The funds shall not be 
157.18  used for acquisition, renting, or leasing of facilities. 
157.19     (d) All loan agreements between a charter school and the 
157.20  department of children, families, and learning must include a 
157.21  plan for repayment of the funds over a maximum period of five 
157.22  years.  Additional repayment terms shall be determined by the 
157.23  department of children, families, and learning in consultation 
157.24  with the department of finance.  
157.25     (e) In the event that the repayment terms are violated, the 
157.26  department of children, families, and learning may modify the 
157.27  terms of repayment and require a plan for repayment under the 
157.28  procedures specified in section 124.755, subdivision 8, or 
157.29  recover the funds through the procedures specified in section 
157.30  124.755, subdivision 5.  In the event that the charter school 
157.31  ceases to operate, any assets of the charter school may be 
157.32  claimed and auctioned by the commissioner as payment against the 
157.33  loan. 
157.34     Sec. 18.  [124.254] [CHARTER SCHOOL START-UP GRANTS.] 
157.35     (a) A program that has been granted a charter under section 
157.36  120.064, but has not yet begun operation, may apply to the 
158.1   commissioner for a planning grant. 
158.2      (b) These grants may be used for curriculum planning, 
158.3   budget planning, development of information for students and 
158.4   parents, staff recruitment, and other uses approved by the 
158.5   department.  The funds may not be used for expenses related to 
158.6   the acquisition, improvement, renting, or leasing of capital 
158.7   facilities. 
158.8      (c) Grant criteria and amounts shall be determined by the 
158.9   commissioner. 
158.10     Sec. 19.  [124.325] [HOMEWORK HOTLINES.] 
158.11     An amount not to exceed $385,000 in fiscal year 1998 and 
158.12  each year thereafter is appropriated from the general fund to 
158.13  the commissioner for programs to assist students with homework 
158.14  by telephone or other interactive technology.  Both the homework 
158.15  helpline and the metro hotline for homework programs must be 
158.16  supported by this appropriation at a level sufficient to respond 
158.17  to at least 200 calls a night, five days a week.  The 
158.18  commissioner shall consider programs that offer a match of local 
158.19  nonpublic funds. 
158.20     Sec. 20.  Minnesota Statutes 1996, section 125.05, 
158.21  subdivision 1c, is amended to read: 
158.22     Subd. 1c.  [SUPERVISORY AND COACH QUALIFICATIONS; CODE OF 
158.23  ETHICS.] The state board of education shall issue licenses under 
158.24  its jurisdiction to persons the state board finds to be 
158.25  qualified and competent for their respective positions under the 
158.26  rules it adopts.  The state board of education may develop, by 
158.27  rule, a code of ethics for supervisory personnel covering 
158.28  standards of professional practices, including areas of ethical 
158.29  conduct and professional performance and methods of enforcement. 
158.30     Sec. 21.  Minnesota Statutes 1996, section 125.05, 
158.31  subdivision 2, is amended to read: 
158.32     Subd. 2.  [EXPIRATION AND RENEWAL.] (a) Each license issued 
158.33  the department of children, families, and learning issues 
158.34  through the its licensing section of the department of children, 
158.35  families, and learning must bear the date of issue.  Licenses 
158.36  must expire and be renewed in accordance with according to the 
159.1   respective rules adopted by the board of teaching or the state 
159.2   board of education adopts.  Requirements for renewal of renewing 
159.3   a license must include production of showing satisfactory 
159.4   evidence of successful teaching experience for at least one 
159.5   school year during the period covered by the license in grades 
159.6   or subjects for which the license is valid or completion of 
159.7   completing such additional preparation as the board of 
159.8   teaching shall prescribe prescribes.  The state board of 
159.9   education shall establish requirements for renewal of renewing 
159.10  the licenses of supervisory personnel must be established by the 
159.11  state board of education.  
159.12     (b) The board of teaching shall offer alternative 
159.13  continuing relicensure options for teachers who are accepted 
159.14  into and complete the national board for professional teaching 
159.15  standards certification process, and offer additional continuing 
159.16  relicensure options for teachers who earn national board for 
159.17  professional teaching standards certification.  Continuing 
159.18  relicensure requirements for teachers who do not maintain 
159.19  national board for professional teaching standards certification 
159.20  are those the board prescribes.  
159.21     Sec. 22.  Minnesota Statutes 1996, section 126.22, 
159.22  subdivision 3, is amended to read: 
159.23     Subd. 3.  [ELIGIBLE PROGRAMS.] (a) A pupil who is eligible 
159.24  according to subdivision 2 may enroll in area learning centers 
159.25  under sections 124C.45 to 124C.48, or according to section 
159.26  121.11, subdivision 12. 
159.27     (b) A pupil who is eligible according to subdivision 2 and 
159.28  who is between the ages of 16 and 21 may enroll in 
159.29  post-secondary courses under section 123.3514. 
159.30     (c) A pupil who is eligible under subdivision 2, may enroll 
159.31  in any public elementary or secondary education program.  
159.32  However, a person who is eligible according to subdivision 2, 
159.33  clause (b), may enroll only if the school board has adopted a 
159.34  resolution approving the enrollment. 
159.35     (d) A pupil who is eligible under subdivision 2, may enroll 
159.36  in any nonprofit, nonpublic, nonsectarian school that has 
160.1   contracted with the serving school district to provide 
160.2   educational services. 
160.3      (e) A pupil who is between the ages of 16 and 21 may enroll 
160.4   in any adult basic education programs approved under section 
160.5   124.26 and operated under the community education program 
160.6   contained in section 121.88. 
160.7      Sec. 23.  Minnesota Statutes 1996, section 126.22, 
160.8   subdivision 3a, is amended to read: 
160.9      Subd. 3a.  [ADDITIONAL ELIGIBLE PROGRAM.] A pupil who is at 
160.10  least 16 years of age, who is eligible under subdivision 2, 
160.11  clause (a), and who has been enrolled only in a public school, 
160.12  if the pupil has been enrolled in any school, during the year 
160.13  immediately before transferring under this subdivision, may 
160.14  transfer to any nonprofit, nonpublic school that has contracted 
160.15  with the serving school district to provide nonsectarian 
160.16  educational services.  Such a school must enroll every eligible 
160.17  pupil who seeks to transfer to the school under this program 
160.18  subject to available space. 
160.19     Sec. 24.  Laws 1995, First Special Session chapter 3, 
160.20  article 11, section 21, subdivision 3, is amended to read: 
160.21     Subd. 3.  [CHARTER SCHOOL EVALUATION.] For the state board 
160.22  of education to evaluate the performance of charter schools 
160.23  authorized according to Minnesota Statutes, section 120.064: 
160.24       $75,000     .....     1996 
160.25     The state board must review and comment on the evaluation, 
160.26  by the chartering school district, of the performance of a 
160.27  charter school before that charter school's contract is 
160.28  renewed.  The state board may provide assistance to a school 
160.29  district in evaluating a charter school that has been chartered 
160.30  by that school board.  The board must report annually to the 
160.31  education committees of the legislature on the results of its 
160.32  evaluations.  This amount is available until June 30, 1997. 
160.33     Sec. 25.  Laws 1996, chapter 412, article 4, section 34, 
160.34  subdivision 4, is amended to read: 
160.35     Subd. 4.  [COMMUNITY-BASED CHARTER SCHOOL GRANT.] For a 
160.36  grant for community-based charter ï¿½schools involving the 
161.1   participation of an operating foundation, the city and county, 
161.2   and St. Paul public schools located in independent school 
161.3   district No. 625, St. Paul: 
161.4        $300,000     .....     1997 
161.5      The commissioner may establish criteria and any reporting 
161.6   or match requirements for the grant under this section. 
161.7      Sec. 26.  [GRANT PROGRAM TO PROMOTE PROFESSIONAL TEACHING 
161.8   STANDARDS THROUGH THE NATIONAL BOARD FOR PROFESSIONAL TEACHING 
161.9   STANDARDS.] 
161.10     Subdivision 1.  [ESTABLISHMENT.] A grant program to promote 
161.11  professional teaching standards through the national board for 
161.12  professional teaching standards for fiscal year 1998 is 
161.13  established to provide eligible teachers with the opportunity to 
161.14  receive national board for professional teaching standards 
161.15  certification and to reward teachers who have already received 
161.16  such certification. 
161.17     Subd. 2.  [ELIGIBILITY.] An applicant for a grant must be a 
161.18  licensed K-12 school teacher employed in a state school.  To be 
161.19  eligible for a grant, the teacher must have been employed as a 
161.20  teacher for a minimum of five school years and demonstrate 
161.21  either that the national board for professional teaching 
161.22  standards has accepted the teacher as a candidate for board 
161.23  certification or that the teacher already has received board 
161.24  certification. 
161.25     Subd. 3.  [APPLICATION PROCESS.] To obtain a grant to 
161.26  participate in the national board for professional teaching 
161.27  standards certification process or to receive a reward for 
161.28  already completing the board certification process, a teacher 
161.29  must submit an application to the commissioner of children, 
161.30  families, and learning in the form and manner the commissioner 
161.31  establishes.  The applicant must demonstrate either that the 
161.32  national board for professional teaching standards has accepted 
161.33  the teacher as a candidate for board certification or that the 
161.34  teacher already has received board certification.  The 
161.35  commissioner shall consult with the state board of teaching when 
161.36  reviewing the applications. 
162.1      Subd. 4.  [GRANT AWARDS; PROCEEDS.] (a) The commissioner 
162.2   may award up to 150 matching grants of $1,000 each to eligible 
162.3   teachers who provide a matching amount through collaboration 
162.4   with either a school district, professional organization, or 
162.5   both and are accepted as candidates for national board for 
162.6   professional teaching standards certification.  Grant recipients 
162.7   shall use the grant to participate in the certification 
162.8   process.  Within 24 months of receiving certification, a grant 
162.9   recipient must satisfactorily complete one year of teaching 
162.10  service in a state school or repay the state the amount of the 
162.11  grant, except if the commissioner determines that death or 
162.12  disability prevents the grant recipient from providing the one 
162.13  year of teaching service. 
162.14     (b) The commissioner may award up to 150 grants to eligible 
162.15  teachers who have earned national board for professional 
162.16  teaching standards certification.  The amount of each grant 
162.17  shall not exceed $1,000 and the commissioner shall establish 
162.18  criteria to determine the actual amount of each grant.  Grant 
162.19  recipients shall use the grant proceeds for educational 
162.20  purposes, including purchasing instructional materials, 
162.21  equipment, or supplies and realizing professional development 
162.22  opportunities.  
162.23     Sec. 27.  [ST. PAUL COMMUNITY-BASED SCHOOL PROGRAM; 
162.24  APPROPRIATION.] 
162.25     $2,000,000 in fiscal year 1998 is appropriated from the 
162.26  general fund to the commissioner of children, families, and 
162.27  learning for a grant to independent school district No. 625, St. 
162.28  Paul, for the establishment and operation of a community-based 
162.29  school program.  The purpose of the program is to improve 
162.30  student achievement and to provide an integrated set of 
162.31  academic, health, social, and recreational support services 
162.32  year-round, and for an extended day to children, families, and 
162.33  the community. 
162.34     Independent school district No. 625 shall collaborate with 
162.35  the city of St. Paul; Ramsey county; the commissioner of 
162.36  children, families, and learning; and a nonprofit operating 
163.1   foundation located in St. Paul to establish and operate the 
163.2   program.  Before implementing the program, the district must 
163.3   submit the following to the commissioner: 
163.4      (1) the name and address of the school or schools to be 
163.5   community-based schools; 
163.6      (2) the grade levels and number of students to be served; 
163.7      (3) general demographic characteristics of the area and 
163.8   students to be served; 
163.9      (4) the education curriculum and other programs to be 
163.10  offered; 
163.11     (5) the goals of the school and the means to measure 
163.12  student achievement; 
163.13     (6) a budget and operating plan, including the governing 
163.14  structure, financial commitments, and program commitments by the 
163.15  city, county, and foundation to the program; and 
163.16     (7) documentation of community support. 
163.17     This money may also be used to construct, remodel, design, 
163.18  renovate, equip, and repair facilities used for a 
163.19  community-based school program.  This appropriation is available 
163.20  until June 30, 1999. 
163.21     Sec. 28.  [APPROPRIATION.] 
163.22     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
163.23  LEARNING.] The sums indicated in this section are appropriated 
163.24  from the general fund to the department of children, families, 
163.25  and learning for the fiscal year designated.  The appropriations 
163.26  in subdivisions 7 to 12 are one-time appropriations only. 
163.27     Subd. 2.  [ADVANCED PLACEMENT AND INTERNATIONAL 
163.28  BACCALAUREATE PROGRAMS.] For the state advanced placement and 
163.29  international baccalaureate programs: 
163.30       $1,625,000     .....     1998 
163.31       $1,375,000     .....     1999 
163.32     Notwithstanding Minnesota Statutes, section 126.239, 
163.33  subdivisions 1 and 2, $200,000 each year is for teachers to 
163.34  attend subject matter summer training programs and follow-up 
163.35  support workshops approved by the advanced placement or 
163.36  international baccalaureate programs.  The amount of the subsidy 
164.1   for each teacher attending an advanced placement or 
164.2   international baccalaureate summer training program or workshop 
164.3   shall be the same.  The commissioner shall determine the payment 
164.4   process and the amount of the subsidy. 
164.5      Notwithstanding Minnesota Statutes, section 126.239, 
164.6   subdivision 3, in each year to the extent of available 
164.7   appropriations, the commissioner shall pay all examination fees 
164.8   for all students sitting for an advanced placement examination, 
164.9   international baccalaureate examination, or both.  If this 
164.10  amount is not adequate, the commissioner may pay less than the 
164.11  full examination fee. 
164.12     $500,000 each year is for student scholarships.  A student 
164.13  scholarship shall be awarded to a student scoring three or 
164.14  better on one or more advanced placement examinations or a four 
164.15  or better on one or more international baccalaureate 
164.16  examinations.  The amount of each scholarship shall range from 
164.17  $150 to $500 based on the student's score on the exams.  The 
164.18  scholarships shall be awarded only to students who are enrolled 
164.19  in a Minnesota public or private college or university.  The 
164.20  total amount of each scholarship shall be paid directly to the 
164.21  student's designated college or university and must be used by 
164.22  the student only for tuition, required fees, and books in 
164.23  nonsectarian courses or programs.  The higher education services 
164.24  office, in consultation with the commissioner, shall determine 
164.25  the payment process, the amount of the scholarships, and 
164.26  provisions for unused scholarships.  
164.27     In order to be eligible to receive advanced placement or 
164.28  international baccalaureate scholarships on behalf of the 
164.29  qualifying students, the college or university must have an 
164.30  advanced placement, international baccalaureate, or both, credit 
164.31  and placement policy for the scholarship recipients.  In 
164.32  addition, each college or university must certify these policies 
164.33  to the department each year.  The department must provide each 
164.34  secondary school in the state with a copy of the post-secondary 
164.35  advanced placement and international baccalaureate policies each 
164.36  year. 
165.1      $375,000 each year is for teacher stipends.  A teacher who 
165.2   teaches an advanced placement or international baccalaureate 
165.3   course shall receive a stipend for each student in that 
165.4   teacher's course who receives a three or better on the advanced 
165.5   placement or a four or better on the international baccalaureate 
165.6   examination that covers the subject matter of the course.  The 
165.7   commissioner shall determine the payment process and the amount 
165.8   of the teacher stipend ranging from $25 to $50 for each student 
165.9   receiving a qualifying score. 
165.10     A stipend awarded to a teacher under this subdivision shall 
165.11  not be a mandatory subject of bargaining under Minnesota 
165.12  Statutes, chapter 179A, or any other law and shall not be a term 
165.13  or condition of employment.  The amount of any award shall be 
165.14  final and shall not be subject to review by an arbitrator 
165.15  through any grievance or other process or by a court through any 
165.16  appeal process.  
165.17     Any balance in the first year does not cancel but is 
165.18  available in the second year. 
165.19     Subd. 3.  [SITE PERFORMANCE PAY AID.] For site performance 
165.20  pay aid: 
165.21       $1,750,000     .....     1998
165.22       $1,750,000     .....     1999
165.23     Any balance in the first year does not cancel but is 
165.24  available in the second year. 
165.25     Subd. 4.  [SITE-BASED DECISION-MAKING AID.] For school 
165.26  site-based decision-making aid: 
165.27       $3,250,000     .....     1998
165.28       $3,250,000     .....     1999
165.29     Any balance in the first year does not cancel but is 
165.30  available in the second year. 
165.31     Subd. 5.  [CHARTER SCHOOL BUILDING LEASE AID.] For building 
165.32  lease aid according to section 124.248, subdivision 2a: 
165.33       $1,078,000     .....     1998 
165.34       $1,577,000     .....     1999 
165.35     The 1999 appropriation includes $120,000 for 1998 and 
165.36  $1,457,000 for 1999. 
166.1      Subd. 6.  [CHARTER SCHOOL START-UP GRANTS.] For charter 
166.2   school start-up grants under Minnesota Statutes, section 124.254:
166.3        $1,000,000     .....     1998 
166.4      Any balance in the first year does not cancel but is 
166.5   available in the second year.  This appropriation may also be 
166.6   used for grants to convert existing schools into charter schools.
166.7      Subd. 7.  [GRADUATION RULE IMPLEMENTATION AT THE SITE AID.] 
166.8   For graduation rule implementation: 
166.9        $20,000,000     .....     1998
166.10     (a) This appropriation shall be paid to districts according 
166.11  to paragraph (b).  The purpose of the aid is to accelerate the 
166.12  implementation of the graduation rule throughout all education 
166.13  sites in the district through intensive staff development and 
166.14  decentralized decision making.  The funds may be allocated to 
166.15  education sites under section 13.  The board shall work with the 
166.16  teaching staff in the district to determine the most effective 
166.17  staff development processes to assure an acceleration of the 
166.18  implementation. 
166.19     (b) A district that does not have referendum authority 
166.20  under Minnesota Statutes, section 124A.03, shall receive aid 
166.21  equal to $50 times the number of pupil units in the district.  
166.22  At least 30 percent must be used for the purposes of paragraph 
166.23  (a).  A district with referendum authority under section 124A.03 
166.24  shall receive aid equal to $15 times the number of pupil units 
166.25  in the district. 
166.26     Subd. 8.  [TEACHER EDUCATION IMPROVEMENT.] For board of 
166.27  teaching responsibilities relating to teacher licensure 
166.28  restructuring and implementation of the teaching residency 
166.29  program: 
166.30       $450,000     .....     1998
166.31       $450,000     .....     1999 
166.32     Any balance in the first year does not cancel but is 
166.33  available in the second year. 
166.34     The board of teaching shall use the funds for further 
166.35  development of the results-oriented teacher licensure system, 
166.36  for pilot site grants and other methods of implementing the 
167.1   teacher residency program, and for programs relating to teacher 
167.2   mentoring. 
167.3      Subd. 9.  [SCIENCE-MATHEMATICS GRANT.] For continuation of 
167.4   systemic change in science and mathematics education programs: 
167.5        $1,352,000     .....     1998 
167.6        $1,352,000     .....     1999
167.7      Any balance in the first year does not cancel but is 
167.8   available in the second year. 
167.9      Subd. 10.  [YEAR-ROUND SCHOOL/EXTENDED WEEK OR DAY GRANTS.] 
167.10  For year-round school/extended week or day grants under Laws 
167.11  1995, First Special Session chapter 3, article 7, section 4: 
167.12       $1,800,000     .....     1998 
167.13     The department of children, families, and learning must 
167.14  award grants to school districts with priority given to programs 
167.15  that have not previously received year-round school/extended 
167.16  week or day pilot grants.  Of this amount, $500,000 is for a 
167.17  grant to independent school district No. 624, White Bear Lake.  
167.18  Of this amount, $300,000 is for an open enrollment year-round 
167.19  technology project in independent school district No. 138, North 
167.20  Branch.  The maximum grant amount is $300,000.  Grant recipients 
167.21  are required to make reports on progress made, planning, and 
167.22  implementing projects in the form and manner specified by the 
167.23  department of children, families, and learning. 
167.24     Subd. 11.  [WEST ST. PAUL-MENDOTA HEIGHTS-EAGAN GRANT.] For 
167.25  a grant to independent school district No. 197, West St. 
167.26  Paul-Mendota Heights-Eagan, for implementing multiple pathways 
167.27  for students to meet graduation standards: 
167.28       $167,000     .....     1998
167.29     The district must match the grant in an amount determined 
167.30  by the commissioner of children, families, and learning.  The 
167.31  appropriation is available until June 30, 1999. 
167.32     Subd. 12.  [COLLABORATIVE URBAN EDUCATOR PROGRAM.] For a 
167.33  grant to a collaborative urban educator program that prepares 
167.34  and licenses people of color to teach: 
167.35       $895,000     .....     1998
167.36     This appropriation is available until June 30, 1999. 
168.1      Subd. 13.  [SCHOOL RESTRUCTURING GRANT.] For school 
168.2   restructuring: 
168.3        $300,000     .....     1998
168.4        $300,000     .....     1999
168.5      This appropriation is for a grant to a nonstate 
168.6   organization to develop systemic site decision-making models and 
168.7   implement systemic site decision-making in school districts. 
168.8      Any balance in the first year does not cancel but is 
168.9   available in the second year. 
168.10     Subd. 14.  [PROFESSIONAL TEACHING STANDARDS CERTIFICATION 
168.11  GRANTS.] For grants to teachers for professional teaching 
168.12  standards certification: 
168.13       $900,000     .....     1998
168.14     This appropriation shall be used for grants to eligible 
168.15  teachers accepted as candidates for national board for 
168.16  professional teaching standards certification; for grants to 
168.17  eligible teachers who have earned national board for 
168.18  professional teaching standards certification for purchasing 
168.19  instructional materials, equipment, or supplies and realizing 
168.20  professional development opportunities; and for the commissioner 
168.21  to pay for four half-time state coordinators that grants to 
168.22  school districts working cooperatively to establish support 
168.23  networks to counsel and assist teacher candidates for national 
168.24  board for professional teaching standards certification.  The 
168.25  grants must be used to hire up to four half-time statewide 
168.26  coordinators who must be licensed kindergarten through grade 12 
168.27  public school teachers.  The commissioner shall determine the 
168.28  form and manner for grant applications.  Applications must 
168.29  include an implementation plan that demonstrates collaboration 
168.30  among school districts and professional organizations in 
168.31  providing support activities to facilitate the work of the 
168.32  coordinators.  Of this amount, $500,000 may be awarded by the 
168.33  commissioner to districts to certify teachers in early 
168.34  intervention reading programs. 
168.35     Any balance in the first year does not cancel but is 
168.36  available in the second year. 
169.1      Subd. 15.  [SCHOOL ENRICHMENT PARTNERSHIP PROGRAM.] For 
169.2   school enrichment partnership program aid according to Minnesota 
169.3   Statutes, section 124.255: 
169.4        $500,000      .....      1998 
169.5      Any balance remaining in the first year does not cancel but 
169.6   is available in the second year. 
169.7      Subd. 16.  [ONE TIME AID FOR LOW SPENDING DISTRICTS.] For 
169.8   one time aid for low spending districts: 
169.9        $15,000,000     .....     1998
169.10     The commissioner shall allocate this revenue to qualifying 
169.11  districts that are low spending districts.  To qualify, a 
169.12  district must have referendum authority under Minnesota 
169.13  Statutes, section 124A.03, and either qualify for sparsity 
169.14  revenue or where the referendum per pupil, after adjustments, is 
169.15  lower than 25 percent of the formula allowance. 
169.16     Sec. 29.  [REPEALER.] 
169.17     Minnesota Statutes 1996, section 121.11, subdivision 8, is 
169.18  repealed. 
169.19                             ARTICLE 6
169.20               NUTRITION AND OTHER EDUCATION PROGRAMS
169.21     Section 1.  Minnesota Statutes 1996, section 121.602, 
169.22  subdivision 1, is amended to read: 
169.23     Subdivision 1.  [PROGRAM OUTCOMES.] The outcomes of the 
169.24  educational effectiveness program are to: 
169.25     (1) increase meaningful parental involvement in site-based 
169.26  decision making; 
169.27     (2) improve results-oriented instructional educational 
169.28  processes; 
169.29     (3) create flexible school-based organizational structures; 
169.30  and 
169.31     (4) improve student achievement. 
169.32     Sec. 2.  Minnesota Statutes 1996, section 121.602, 
169.33  subdivision 2, is amended to read: 
169.34     Subd. 2.  [ADVISORY TASK FORCE; PROGRAM IMPLEMENTATION.] 
169.35  The commissioner of children, families, and learning shall 
169.36  develop and maintain a program of educational effectiveness and 
170.1   results-oriented instruction education.  The commissioner may 
170.2   appoint an advisory task force to assist the department of 
170.3   children, families, and learning in developing an implementation 
170.4   program for providing staff development to school district staff 
170.5   in educational effectiveness.  The program shall be based on 
170.6   established principles of instructional design and the essential 
170.7   elements of effective instruction as determined by educational 
170.8   research.  The program shall take into account the diverse needs 
170.9   of the school districts due to such factors as district size and 
170.10  location. 
170.11     Sec. 3.  Minnesota Statutes 1996, section 121.602, 
170.12  subdivision 4, is amended to read: 
170.13     Subd. 4.  [EDUCATIONAL EFFECTIVENESS STAFF DEVELOPMENT.] 
170.14  The department of children, families, and learning shall provide 
170.15  assistance to the school districts in implementing an 
170.16  educational effectiveness program.  In selecting an agency to 
170.17  provide assistance to the school districts, the department shall 
170.18  consider such factors as support of the proposal by the 
170.19  participating school districts and the extent to which the 
170.20  proposal provides for participation by school district staff.  
170.21  The department shall evaluate the performance of the service 
170.22  providers.  The staff development shall be facilitated by 
170.23  building level decision-making teams.  The staff development 
170.24  shall include clarification of individual school missions, 
170.25  goals, expectations, enhancement of collaborative planning and 
170.26  collegial relationships among the building staff, improvement of 
170.27  curriculum, assessment, instructional and organizational skills, 
170.28  improvement of financial and management skills, and planning of 
170.29  other staff development programs. 
170.30     Sec. 4.  Minnesota Statutes 1996, section 123.70, 
170.31  subdivision 5, is amended to read: 
170.32     Subd. 5.  If a person transfers from one elementary or 
170.33  secondary school to another, the person shall be allowed school 
170.34  board of a public school district or the administrator of a 
170.35  nonpublic school may allow the person up to a maximum of 30 days 
170.36  to submit one or more of the statements as specified in 
171.1   subdivision 1 or 3, during which time the person may enroll in 
171.2   and attend the school.  If a person enrolls in a child care 
171.3   facility in which at least 75 percent of children in the 
171.4   facility participate on a one-time only or occasional basis to a 
171.5   maximum of 45 hours per child, per month, or is placed in a 
171.6   facility by a crisis nursery, the person shall be exempt from 
171.7   all requirements of this section for up to five consecutive 
171.8   days, starting from the first day of attendance. 
171.9      Sec. 5.  Minnesota Statutes 1996, section 123.70, 
171.10  subdivision 7, is amended to read: 
171.11     Subd. 7.  Each school or child care facility shall maintain 
171.12  on file immunization records for all persons in attendance that 
171.13  contain the information required by subdivisions 1, 2, and 3.  
171.14  The school shall maintain the records for at least five years 
171.15  after the person attains the age of majority.  The department of 
171.16  health and the board of health, as defined in section 145A.02, 
171.17  subdivision 2, in whose jurisdiction the school or child care 
171.18  facility is located, shall have access to the files maintained 
171.19  pursuant to this subdivision.  When a person transfers to 
171.20  another elementary or secondary school or child care facility, 
171.21  the administrator or other person having general control and 
171.22  supervision of the school or child care facility shall assist 
171.23  the person's parent or guardian in the transfer of the 
171.24  immunization file to the person's new school or child care 
171.25  facility within 30 days of the transfer.  Upon the request of a 
171.26  public or private post-secondary educational institution, as 
171.27  defined in section 135A.14, the administrator or other person 
171.28  having general control or supervision of a school shall assist 
171.29  in the transfer of a student's immunization file to the 
171.30  post-secondary institution. 
171.31     Sec. 6.  Minnesota Statutes 1996, section 123.70, 
171.32  subdivision 10, is amended to read: 
171.33     Subd. 10.  A statement required to be submitted under 
171.34  subdivisions 1, 2, and 4 to document evidence of immunization 
171.35  shall include month, day, and year for immunizations 
171.36  administered after January 1, 1990.  
172.1      (a) For persons enrolled in grades 7 and 12 during the 
172.2   1996-1997 school term, the statement must indicate that the 
172.3   person has received a dose of tetanus and diphtheria toxoid no 
172.4   earlier than 11 years of age. 
172.5      (b) Except as specified in paragraph (e), for persons 
172.6   enrolled in grades 7, 8, and 12 during the 1997-1998 school 
172.7   term, the statement must indicate that the person has received a 
172.8   dose of tetanus and diphtheria toxoid no earlier than 11 years 
172.9   of age.  
172.10     (c) Except as specified in paragraph (e), for persons 
172.11  enrolled in grades 7, 8, 9, and through 12 during the 1998-1999 
172.12  school term and for each year thereafter, the statement must 
172.13  indicate that the person has received a dose of tetanus and 
172.14  diphtheria toxoid no earlier than 11 years of age.  
172.15     (d) for persons enrolled in grades 7, 8, 9, 10, and 12 
172.16  during the 1999-2000 school term, the statement must indicate 
172.17  that the person has received a dose of tetanus and diphtheria 
172.18  toxoid no earlier than 11 years of age.  
172.19     (e) for persons enrolled in grades 7 through 12 during the 
172.20  2000-2001 school term and for each year thereafter, the 
172.21  statement must indicate that the person has received a dose of 
172.22  tetanus and diphtheria toxoid no earlier than 11 years of age. 
172.23     (f) (d) For persons enrolled in grades 7 through 12 during 
172.24  the 1996-1997 school year and for each year thereafter, the 
172.25  statement must indicate that the person has received at least 
172.26  two doses of vaccine against measles, mumps, and rubella, given 
172.27  alone or separately and given not less than one month apart. 
172.28     (e) A person who has received at least three doses of 
172.29  tetanus and diphtheria toxoids, with the most recent dose given 
172.30  after age six and before age 11, is not required to have 
172.31  additional immunization against diphtheria and tetanus until ten 
172.32  years have elapsed from the person's most recent dose of tetanus 
172.33  and diphtheria toxoid. 
172.34     Sec. 7.  Minnesota Statutes 1996, section 124.276, is 
172.35  amended by adding a subdivision to read: 
172.36     Subd. 2a.  [AID.] A district with an approved plan shall 
173.1   receive $30 per pupil served at the school site with the family 
173.2   connections program.  The district must provide a match of $15 
173.3   per pupil served at the school site with the family connections 
173.4   program. 
173.5      Sec. 8.  Minnesota Statutes 1996, section 124.276, 
173.6   subdivision 3, is amended to read: 
173.7      Subd. 3.  [COMMISSIONER APPROVAL.] The commissioner may 
173.8   approve plans and applications for districts throughout the 
173.9   state for family connections aid.  Application procedures and 
173.10  deadlines shall be established by the commissioner.  After 
173.11  approval, the commissioner shall distribute family connections 
173.12  aid to districts in the order the applications are received. 
173.13     Sec. 9.  Minnesota Statutes 1996, section 124C.46, 
173.14  subdivision 1, is amended to read: 
173.15     Subdivision 1.  [PROGRAM FOCUS.] The programs and services 
173.16  of a center must focus on academic and learning skills, applied 
173.17  learning opportunities, trade and vocational skills, work-based 
173.18  learning opportunities, work experience, youth service to the 
173.19  community, and transition services.  Applied learning, 
173.20  work-based learning, and service learning may best be developed 
173.21  in collaboration with a local education and transitions 
173.22  partnership.  In addition to offering programs, the center shall 
173.23  coordinate the use of other available educational services, 
173.24  social services, health services, and post-secondary 
173.25  institutions in the community and services area.  
173.26     Sec. 10.  Minnesota Statutes 1996, section 124C.46, 
173.27  subdivision 2, is amended to read: 
173.28     Subd. 2.  [PEOPLE TO BE SERVED.] A center shall provide 
173.29  programs for secondary pupils and adults, giving priority to 
173.30  serving persons between 16 and 21 years of age.  Secondary 
173.31  pupils to be served are those who are chemically dependent, not 
173.32  likely to graduate from high school, need assistance in 
173.33  vocational and basic skills, can benefit from employment 
173.34  experiences, and need assistance in transition from school to 
173.35  employment.  Adults to be served are dislocated homemakers and 
173.36  workers and others who need basic educational and social 
174.1   services.  In addition to offering programs, the center shall 
174.2   coordinate the use of other available educational services, 
174.3   social services, and post-secondary institutions in the 
174.4   community.  The A center may also provide programs, including 
174.5   work-based, service-learning, and applied learning opportunities 
174.6   developed in collaboration with a local education and employment 
174.7   transitions partnership, and services for elementary and 
174.8   secondary pupils who are not attending the center to assist them 
174.9   in completing high being successful in school.  Pupils eligible 
174.10  to be served are those age five to adults 21 and older who 
174.11  qualify under the graduation incentives program in section 
174.12  126.22, subdivision 2.  
174.13     Sec. 11.  Minnesota Statutes 1996, section 126.22, 
174.14  subdivision 2, is amended to read: 
174.15     Subd. 2.  [ELIGIBLE PUPILS.] The following pupils are 
174.16  eligible to participate in the education options graduation 
174.17  incentives program:  
174.18     (a) any pupil under the age of 21 who:  
174.19     (1) performs substantially below the performance level for 
174.20  pupils of the same age in a locally determined achievement test; 
174.21  or 
174.22     (2) is at least one year behind in satisfactorily 
174.23  completing coursework or obtaining credits for graduation; or 
174.24     (3) is pregnant or is a parent; or 
174.25     (4) has been assessed as chemically dependent; or 
174.26     (5) has been excluded or expelled according to sections 
174.27  127.26 to 127.39; or 
174.28     (6) has been referred by a school district for enrollment 
174.29  in an eligible program or a program pursuant to section 126.23; 
174.30  or 
174.31     (7) is a victim of physical or sexual abuse; or 
174.32     (8) has experienced mental health problems; or 
174.33     (9) has experienced homelessness sometime within six months 
174.34  before requesting a transfer to an eligible program; or 
174.35     (10) speaks English as a second language or has limited 
174.36  English proficiency; or 
175.1      (11) has withdrawn from school or has been chronically 
175.2   truant; or 
175.3      (b) any person who is at least 21 years of age and who:  
175.4      (1) has received fewer than 14 years of public or nonpublic 
175.5   education, beginning at age 5; 
175.6      (2) has not completed the requirements for a high school 
175.7   diploma; and 
175.8      (3) at the time of application, (i) is eligible for 
175.9   reemployment insurance benefits or has exhausted the benefits, 
175.10  (ii) is eligible for, or is receiving income maintenance and 
175.11  support services, as defined in section 268.0111, subdivision 5, 
175.12  or (iii) is eligible for services under the displaced homemaker 
175.13  program, state wage-subsidy program, or any programs under the 
175.14  federal Jobs Training Partnership Act or its successor. 
175.15     Sec. 12.  Minnesota Statutes 1996, section 144.29, is 
175.16  amended to read: 
175.17     144.29 [HEALTH RECORDS; CHILDREN OF SCHOOL AGE.] 
175.18     It shall be the duty of every school nurse, school 
175.19  physician, school attendance officer, superintendent of schools, 
175.20  principal, teacher, and of the persons charged with the duty of 
175.21  compiling and keeping the school census records, to cause a 
175.22  permanent public health record to be kept for each child of 
175.23  school age.  Such record shall be kept in such form that it may 
175.24  be transferred with the child to any school which the child 
175.25  shall attend within the state and transferred to the 
175.26  commissioner when the child ceases to attend school.  It shall 
175.27  contain a record of such health matters as shall be prescribed 
175.28  by the commissioner, and of all mental and physical defects and 
175.29  handicaps which might permanently cripple or handicap the 
175.30  child student health data as defined in section 13.32, 
175.31  subdivision 2, paragraph (a), and shall be classified as private 
175.32  data as defined in section 13.32, subdivision 3.  Nothing in 
175.33  sections 144.29 to 144.32 shall be construed to require any 
175.34  child whose parent or guardian objects in writing thereto to 
175.35  undergo a physical or medical examination or treatment.  A copy 
175.36  shall be forwarded to the proper department of any state to 
176.1   which the child shall remove.  Each district shall assign a 
176.2   teacher, school nurse, or other professional person to review, 
176.3   at the beginning of each school year, the health record of all 
176.4   pupils under the assignee's direction.  Growth, results of 
176.5   vision and hearing screening, and findings obtained from health 
176.6   assessments must be entered periodically on the pupil's health 
176.7   record. 
176.8      Sec. 13.  [REGIONAL TRAINING SITES FOR HIV EDUCATION IN 
176.9   SCHOOLS.] 
176.10     The commissioner of children, families, and learning shall 
176.11  establish four regional training centers in partnership with 
176.12  school districts outside of the cities of Minneapolis and St. 
176.13  Paul to implement comprehensive curriculum and program to 
176.14  prevent and reduce the risk of HIV/AIDS as required under 
176.15  Minnesota Statutes, section 121.203.  The commissioner shall 
176.16  provide technical and financial assistance to each school 
176.17  district to identify policy, curriculum, and service gaps, to 
176.18  purchase curriculum and materials and to provide training or 
176.19  services to fill these gaps, to identify opportunities to 
176.20  coordinate HIV education with other special curriculum 
176.21  offerings, and to assess the effectiveness of curriculum and 
176.22  services.  Each regional training center will provide programs 
176.23  and services to nearby school districts to meet the requirements 
176.24  of Minnesota Statutes, section 121.203.  The commissioner and 
176.25  each school district shall work with a community advisory 
176.26  committee to establish and review the operation of each training 
176.27  center. 
176.28     Sec. 14.  [TARGETED BREAKFAST GRANTS.] 
176.29     Subdivision 1.  [ESTABLISHMENT.] A grant program for fiscal 
176.30  year 1998 is established to further explore the policy of 
176.31  providing nutritious breakfasts to public elementary school 
176.32  children, without regard to whether the children are eligible to 
176.33  receive free or reduced price meals, so that they can learn 
176.34  effectively. 
176.35     Subd. 2.  [ELIGIBILITY.] An applicant for a grant must be 
176.36  an elementary school that participates in the federal school 
177.1   breakfast and lunch programs.  For a school to receive a grant, 
177.2   at least 33 percent of the lunches the school served to children 
177.3   during the preceding school year must have been provided free or 
177.4   at a reduced price. 
177.5      Subd. 3.  [APPLICATION PROCESS.] To obtain a grant to 
177.6   receive reimbursement for providing breakfasts to all children, 
177.7   whether or not the children are from low-income families and 
177.8   eligible to receive free or reduced price meals, a public 
177.9   elementary school must submit an application to the commissioner 
177.10  of children, families, and learning in the form and manner the 
177.11  commissioner prescribes.  The application must describe how the 
177.12  applicant will encourage all children in the school to 
177.13  participate in the breakfast program.  The applicant also must 
177.14  demonstrate to the commissioner that the applicant will receive 
177.15  a $1 local match of funding or in-kind contributions for every 
177.16  $3 of state funding the applicant receives.  The commissioner 
177.17  may require additional information from the applicant. 
177.18     Subd. 4.  [GRANT AWARDS.] The commissioner shall award 
177.19  grants to the four grant recipients under Laws 1994, chapter 
177.20  647, article 8, section 35, and then on a first-come, 
177.21  first-served basis to all other schools that meet the 
177.22  requirements of subdivisions 2 and 3 until funding under this 
177.23  section is expended.  The commissioner shall determine the 
177.24  amount of the grant using average statewide statistics and 
177.25  individual school statistics adjusted for other state and 
177.26  federal reimbursements.  Grant recipients must use the proceeds 
177.27  to provide breakfasts to school children every day school is in 
177.28  session. 
177.29     Sec. 15.  [APPROPRIATIONS.] 
177.30     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
177.31  LEARNING.] The sums indicated in this section are appropriated 
177.32  from the general fund to the department of children, families, 
177.33  and learning for the fiscal years designated.  The 
177.34  appropriations in subdivisions 10 to 12 are one-time 
177.35  appropriations only.  
177.36     Subd. 2.  [ABATEMENT AID.] For abatement aid according to 
178.1   Minnesota Statutes, section 124.214:  
178.2        $16,661,000     .....     1998 
178.3        $13,774,000     .....     1999 
178.4      The 1998 appropriation includes $684,000 for 1997 and 
178.5   $15,977,000 for 1998.  
178.6      The 1999 appropriation includes $1,441,000 for 1998 and 
178.7   $12,333,000 for 1999.  
178.8      Subd. 3.  [NONPUBLIC PUPIL AID.] For nonpublic pupil 
178.9   education aid according to Minnesota Statutes, sections 123.79 
178.10  and 123.931 to 123.947: 
178.11       $9,415,000      .....      1998 
178.12       $9,688,000      .....      1999 
178.13     The 1998 appropriation includes $885,000 for 1997 and 
178.14  $8,530,000 for 1998. 
178.15     The 1999 appropriation includes $947,000 for 1998 and 
178.16  $8,741,000 for 1999. 
178.17     Subd. 4.  [SCHOOL LUNCH AND FOOD STORAGE AID.] (a) For 
178.18  school lunch aid according to Minnesota Statutes, section 
178.19  124.646, and Code of Federal Regulations, title 7, section 
178.20  210.17, and for food storage and transportation costs for United 
178.21  States Department of Agriculture donated commodities; and for a 
178.22  temporary transfer to the commodity processing revolving fund to 
178.23  provide cash flow to permit schools and other recipients of 
178.24  donated commodities to take advantage of volume processing rates 
178.25  and for school milk aid according to Minnesota Statutes, section 
178.26  124.648:  
178.27       $7,254,000     .....     1998 
178.28       $7,254,000     .....     1999 
178.29     (b) Any unexpended balance remaining from the 
178.30  appropriations in this subdivision shall be prorated among 
178.31  participating schools based on the number of free, reduced, and 
178.32  fully paid federally reimbursable student lunches served during 
178.33  that school year.  
178.34     (c) If the appropriation amount attributable to either year 
178.35  is insufficient, the rate of payment for each fully paid student 
178.36  lunch shall be reduced and the aid for that year shall be 
179.1   prorated among participating schools so as not to exceed the 
179.2   total authorized appropriation for that year.  
179.3      (d) Any temporary transfer processed in accordance with 
179.4   this subdivision to the commodity processing fund will be 
179.5   returned by June 30 in each year so that school lunch aid and 
179.6   food storage costs can be fully paid as scheduled.  
179.7      (e) Not more than $800,000 of the amount appropriated each 
179.8   year may be used for school milk aid. 
179.9      (f) The commissioner may reduce other state aid payments 
179.10  due to school districts and other organizations for the costs of 
179.11  processing and storage of commodities used by the district or 
179.12  organization. 
179.13     Subd. 5.  [SUMMER FOOD SERVICE.] For summer food service: 
179.14       $15,000     .....     1998
179.15       $15,000     .....     1999
179.16     Subd. 6.  [SCHOOL BREAKFAST.] To operate the school 
179.17  breakfast program according to Minnesota Statutes, sections 
179.18  124.6469 and 124.6472: 
179.19       $456,000     .....     1998
179.20       $456,000     .....     1999
179.21     If the appropriation amount attributable to either year is 
179.22  insufficient, the rate of payment for each fully paid student 
179.23  breakfast shall be reduced and the aid for that year shall be 
179.24  prorated among participating schools so as not to exceed the 
179.25  total authorized appropriation for that year.  Any unexpected 
179.26  balance remaining shall be used to subsidize the payments made 
179.27  for school lunch aid per Minnesota Statutes, section 124.646.  
179.28     Up to one percent of the program funding can be used by the 
179.29  department of children, families, and learning for technical and 
179.30  administrative assistance. 
179.31     Subd. 7.  [PSEO REPLACEMENT AID.] For PSEO replacement aid: 
179.32       $12,000       .....     1998 
179.33     The 1998 appropriation includes $12,000 for 1997 and $0 for 
179.34  1998. 
179.35     Subd. 8.  [FAMILY CONNECTIONS AID.] For family connections 
179.36  aid under Minnesota Statutes, section 124.276: 
180.1        $300,000     .....     1998
180.2        $300,000     .....     1999
180.3      Any balance in the first year does not cancel but is 
180.4   available in the second year. 
180.5      Subd. 9.  [TARGETED BREAKFAST GRANTS.] For targeted 
180.6   breakfast grants: 
180.7        $1,037,000     .....     1998 
180.8      This appropriation is available until June 30, 1999. 
180.9      Subd. 10.  [NETT LAKE COMMUNITY CENTER.] For a grant to 
180.10  independent school district No. 707, Nett Lake, for maintenance 
180.11  replacement funds to cover delayed lease payments for the 
180.12  collaborative community center: 
180.13       $70,000     .....     1998 
180.14     Subd. 11.  [HIV EDUCATION TRAINING SITES.] For regional 
180.15  training sites for HIV education in schools: 
180.16       $200,000    .....     1998
180.17     This appropriation is contingent on a matching grant of 
180.18  $100,000 in federal funds. 
180.19     This appropriation is available until June 30, 1999. 
180.20     Subd. 12.  [WILLMAR.] For a grant to independent school 
180.21  district No. 347, Willmar: 
180.22       200,000     .....     1998 
180.23     This appropriation shall be used to improve community 
180.24  understanding of the cultures within the community, improve 
180.25  communication between the district and the Latino community, 
180.26  improve parental involvement in the school, to use mediation to 
180.27  resolve conflict in the school and community, and to assist 
180.28  surrounding communities and districts in achieving these goals. 
180.29     This appropriation is available only if the federal lawsuit 
180.30  against the district is dismissed for settlement. 
180.31     This appropriation is available until June 30, 1999. 
180.32     Sec. 16.  [REPEALER.] 
180.33     Minnesota Statutes 1996, sections 121.602, subdivisions 3 
180.34  and 5; and 124.276, subdivision 2, are repealed. 
180.35                             ARTICLE 7
180.36              OTHER NONFUNDING EDUCATION POLICY ISSUES
181.1      Section 1.  Minnesota Statutes 1996, section 12.21, 
181.2   subdivision 3, is amended to read: 
181.3      Subd. 3.  [SPECIFIC AUTHORITY.] In performing duties under 
181.4   this chapter and to effect its policy and purpose, the governor 
181.5   may: 
181.6      (1) make, amend, and rescind the necessary orders and rules 
181.7   to carry out the provisions of this chapter and section 216C.15 
181.8   within the limits of the authority conferred by this section, 
181.9   with due consideration of the plans of the federal government 
181.10  and without complying with sections 14.001 to 14.69, but no 
181.11  order or rule has the effect of law except as provided by 
181.12  section 12.32; 
181.13     (2) ensure that a comprehensive emergency operations plan 
181.14  and emergency management program for this state are developed 
181.15  and maintained, and are integrated into and coordinated with the 
181.16  emergency plans of the federal government and of other states to 
181.17  the fullest possible extent; 
181.18     (3) in accordance with the emergency operations plan and 
181.19  the emergency management program of this state, procure supplies 
181.20  and equipment, institute training programs and public 
181.21  information programs, and take all other preparatory steps, 
181.22  including the partial or full activation of emergency management 
181.23  organizations in advance of actual disaster to ensure the 
181.24  furnishing of adequately trained and equipped forces of 
181.25  emergency management personnel in time of need; 
181.26     (4) make studies and surveys of the industries, resources, 
181.27  and facilities in this state as may be necessary to ascertain 
181.28  the capabilities of the state for emergency management and to 
181.29  plan for the most efficient emergency use of those industries, 
181.30  resources, and facilities; 
181.31     (5) on behalf of this state, enter into mutual aid 
181.32  arrangements or cooperative agreements with other states and 
181.33  with Canadian provinces, and coordinate mutual aid plans between 
181.34  political subdivisions of this state; 
181.35     (6) delegate administrative authority vested in the 
181.36  governor under this chapter, except the power to make rules, and 
182.1   provide for the subdelegation of that authority; 
182.2      (7) cooperate with the president and the heads of the armed 
182.3   forces, the emergency management agency of the United States and 
182.4   other appropriate federal officers and agencies, and with the 
182.5   officers and agencies of other states in matters pertaining to 
182.6   the emergency management of the state and nation, including the 
182.7   direction or control of: 
182.8      (i) emergency preparedness drills and exercises; 
182.9      (ii) warnings and signals for drills or actual emergencies 
182.10  and the mechanical devices to be used in connection with them; 
182.11     (iii) shutting off water mains, gas mains, electric power 
182.12  connections and the suspension of all other utility services; 
182.13     (iv) the conduct of persons in the state and the movement 
182.14  and cessation of movement of pedestrians and vehicular traffic 
182.15  during, prior, and subsequent to drills or actual emergencies; 
182.16     (v) public meetings or gatherings; and 
182.17     (vi) the evacuation, reception, and sheltering of persons; 
182.18     (8) contribute to a political subdivision, within the 
182.19  limits of the appropriation for that purpose, not more than 25 
182.20  percent of the cost of acquiring organizational equipment that 
182.21  meets standards established by the governor; 
182.22     (9) formulate and execute, with the approval of the 
182.23  executive council, plans and rules for the control of traffic in 
182.24  order to provide for the rapid and safe movement over public 
182.25  highways and streets of troops, vehicles of a military nature, 
182.26  materials for national defense and war or for use in any war 
182.27  industry, for the conservation of critical materials or for 
182.28  emergency management purposes, and coordinate the activities of 
182.29  the departments or agencies of the state and its political 
182.30  subdivisions concerned directly or indirectly with public 
182.31  highways and streets, in a manner that will best effectuate 
182.32  those plans; 
182.33     (10) alter or adjust by executive order, without complying 
182.34  with sections 14.01 to 14.69, the working hours, work days and 
182.35  work week of, and annual and sick leave provisions and payroll 
182.36  laws regarding all state employees in the executive branch as 
183.1   the governor deems necessary to minimize the impact of the 
183.2   disaster or emergency, conforming the alterations or adjustments 
183.3   to existing state laws, rules, and collective bargaining 
183.4   agreements to the extent practicable; 
183.5      (11) authorize the commissioner of children, families, and 
183.6   learning to alter school schedules, curtail school activities, 
183.7   or order schools closed without affecting state aid to schools, 
183.8   as defined in section 120.05, and including charter schools 
183.9   under section 120.064, and elementary schools enrolling 
183.10  prekindergarten pupils in district programs.  
183.11     Sec. 2.  Minnesota Statutes 1996, section 120.0111, is 
183.12  amended to read: 
183.13     120.0111 [MISSION STATEMENT.] 
183.14     The mission of public education in Minnesota, a system for 
183.15  lifelong learning, is to ensure individual academic achievement, 
183.16  an informed citizenry, and a highly productive work force.  This 
183.17  system focuses on the learner, promotes and values diversity, 
183.18  provides participatory decision-making, ensures accountability, 
183.19  models democratic principles, creates and sustains a climate for 
183.20  change, provides personalized learning environments, encourages 
183.21  learners to reach their maximum potential, and integrates and 
183.22  coordinates human services for learners.  The public schools of 
183.23  this state shall serve the needs of the students by cooperating 
183.24  with the students' parents and legal guardians to develop the 
183.25  students' intellectual capabilities and life-work skills in a 
183.26  safe and positive environment.  It is part of the department's 
183.27  mission that within the department's resources the commissioner 
183.28  shall endeavor to: 
183.29     (1) prevent the waste or unnecessary spending of public 
183.30  money; 
183.31     (2) use innovative fiscal and human resource practices to 
183.32  manage the state's resources and operate the department as 
183.33  efficiently as possible; 
183.34     (3) coordinate the department's activities wherever 
183.35  appropriate with the activities of other governmental agencies; 
183.36     (4) use technology where appropriate to increase agency 
184.1   productivity, improve customer service, increase public access 
184.2   to information about government, and increase public 
184.3   participation in the business of government; 
184.4      (5) utilize constructive and cooperative labor-management 
184.5   practices to the extent otherwise required by chapters 43A and 
184.6   179A; 
184.7      (6) include specific objectives in the performance report 
184.8   required under section 15.91 to increase the efficiency of 
184.9   agency operations, when appropriate; and 
184.10     (7) recommend to the legislature, in the performance report 
184.11  of the department required under section 15.91, appropriate 
184.12  changes in law necessary to carry out the mission of the 
184.13  department. 
184.14     Sec. 3.  [120.1055] [ENTERING GRADE 10 AFTER COMPLETING 
184.15  GRADE 8.] 
184.16     A district may allow students meeting district criteria to 
184.17  enter grade 10 after completing grade 8.  A district allowing 
184.18  students to enter grade 10 after completing grade 8 must 
184.19  establish criteria for students selecting this option.  The 
184.20  district must disseminate information regarding the district's 
184.21  policy and criteria for entering grade 10 after grade 8 to the 
184.22  district's students and their parents. 
184.23     Sec. 4.  Minnesota Statutes 1996, section 120.101, 
184.24  subdivision 5, is amended to read: 
184.25     Subd. 5.  [AGES AND TERMS.] For the 1988-1989 school year 
184.26  and the school years thereafter, Every child between seven and 
184.27  16 years of age shall receive instruction for at least the 
184.28  number of days each year required under subdivision 5b.  For the 
184.29  2000-2001 school year and later school years, every child 
184.30  between seven and 18 years of age shall receive instruction for 
184.31  at least the number of days each year required under subdivision 
184.32  5b.  Every child under the age of seven who is enrolled in a 
184.33  half-day kindergarten, or a full-day kindergarten program on 
184.34  alternate days, or other kindergarten programs shall receive 
184.35  instruction at least equivalent to half of each day for the 
184.36  number of days each year set out in subdivision 5b.  Except as 
185.1   provided in subdivision 5a, a parent may withdraw a child under 
185.2   the age of seven from enrollment at any time. 
185.3      Sec. 5.  [121.175] [ADVERTISING ON SCHOOL BUSES.] 
185.4      (a) The commissioner, through a competitive process, and 
185.5   with the approval of the school bus safety advisory committee 
185.6   may contract with advertisers regarding advertising on school 
185.7   buses.  At a minimum, the contract must prohibit advertising and 
185.8   advertising images that: 
185.9      (1) solicit the sale of, or promote the use of, alcoholic 
185.10  beverages and tobacco products; 
185.11     (2) are discriminatory in nature or content; 
185.12     (3) imply or declare an endorsement of the product or 
185.13  service by the school district; 
185.14     (4) contain obscene material; 
185.15     (5) are false, misleading, or deceptive; or 
185.16     (6) relate to an illegal activity or antisocial behavior. 
185.17     (b) Advertisement must meet the following conditions: 
185.18     (1) the advertising attached to the school bus does not 
185.19  interfere with bus identification under section 169.441; and 
185.20     (2) the bus with attached advertising meets the school bus 
185.21  equipment standards under sections 169.4501 to 169.4504. 
185.22     (c) All buses operated by school districts may be attached 
185.23  with advertisements under the state contract.  All school 
185.24  district contracts shall include a provision for advertisement.  
185.25  Each school district shall be reimbursed by the advertiser for 
185.26  all costs incurred by the district and its contractors for 
185.27  supporting the advertising program, including, but not limited 
185.28  to, retrofitting buses, storing advertising, attaching 
185.29  advertising to the bus, and related maintenance. 
185.30     (d) The commissioner shall hold harmless and indemnify each 
185.31  district for all liabilities arising from the advertising 
185.32  program.  Each district must tender defense of all such claims 
185.33  to the commissioner within five days of receipt. 
185.34     (e) All revenue from the contract shall be deposited in the 
185.35  general fund. 
185.36     Sec. 6.  Minnesota Statutes 1996, section 123.35, 
186.1   subdivision 8, is amended to read: 
186.2      Subd. 8.  The board may establish and maintain public 
186.3   evening schools and adult and continuing education programs and 
186.4   such evening schools and adult and continuing education programs 
186.5   when so maintained shall be available to all persons over 16 
186.6   years of age through the 1999-2000 school year and over 18 years 
186.7   of age beginning with the 2000-2001 school year who, from any 
186.8   cause, are unable to attend the full-time elementary or 
186.9   secondary schools of such district. 
186.10     Sec. 7.  Minnesota Statutes 1996, section 123.35, is 
186.11  amended by adding a subdivision to read: 
186.12     Subd. 19c.  [JOINTLY OWNED FACILITIES.] Notwithstanding 
186.13  section 123.35, subdivision 19a, if a school district and a city 
186.14  jointly own a building, the district and the city may enter into 
186.15  an agreement that extends beyond the end of the fiscal year to 
186.16  pay operating costs for that building. 
186.17     Sec. 8.  Minnesota Statutes 1996, section 123.3514, 
186.18  subdivision 8, is amended to read: 
186.19     Subd. 8.  [TRANSPORTATION.] A parent or guardian of a pupil 
186.20  enrolled in a course for secondary credit may apply to the 
186.21  pupil's district of residence for reimbursement for transporting 
186.22  the pupil between the secondary school in which the pupil is 
186.23  enrolled or the pupil's home and the post-secondary institution 
186.24  that the pupil attends.  The commissioner shall establish 
186.25  guidelines for providing state aid to districts to The state 
186.26  shall provide state aid to a district in an amount sufficient to 
186.27  reimburse the parent or guardian for the necessary 
186.28  transportation costs, which shall be based on financial 
186.29  need when the family's or guardian's income is at or below the 
186.30  poverty level, as determined by the federal government.  The 
186.31  reimbursement may not exceed shall be the pupil's actual cost of 
186.32  transportation or 15 cents per mile traveled, whichever is 
186.33  less.  Reimbursement may not be paid for more than 250 miles per 
186.34  week.  However, if the nearest post-secondary institution is 
186.35  more than 25 miles from the pupil's resident secondary school, 
186.36  the weekly reimbursement may not exceed the reimbursement rate 
187.1   per mile times the actual distance between the secondary school 
187.2   or the pupil's home and the nearest post-secondary institution 
187.3   times ten.  The state shall pay aid to the district according to 
187.4   the guidelines established under this subdivision.  Chapter 14 
187.5   does not apply to the guidelines. 
187.6      Sec. 9.  Minnesota Statutes 1996, section 123.799, 
187.7   subdivision 1, is amended to read: 
187.8      Subdivision 1.  [RESERVED REVENUE USE.] A district shall 
187.9   use the student transportation safety reserved revenue under 
187.10  section 124.225, subdivision 7f, for providing student 
187.11  transportation safety programs to enhance student conduct and 
187.12  safety on the bus or when boarding and exiting the bus.  A 
187.13  district's student transportation policy must specify the 
187.14  student transportation safety activities to be carried out under 
187.15  this section.  A district's student transportation safety 
187.16  reserved revenue may only be used for the following purposes: 
187.17     (1) to provide paid adult bus monitors, including training 
187.18  and salary costs; 
187.19     (2) to provide a volunteer bus monitor program, including 
187.20  training costs and the cost of a program coordinator; 
187.21     (3) to purchase or lease optional external public address 
187.22  systems or video recording cameras for use on buses; and 
187.23     (4) to purchase new or retrofit existing school buses with 
187.24  seatbelts or other occupant restraint systems after consultation 
187.25  with and approval by the commissioner of public safety; and 
187.26     (4) (5) other activities or equipment that have been 
187.27  reviewed by the state school bus safety advisory committee and 
187.28  approved by the commissioner of public safety. 
187.29     Sec. 10.  Minnesota Statutes 1996, section 123.7991, 
187.30  subdivision 1, is amended to read: 
187.31     Subdivision 1.  [SCHOOL BUS SAFETY WEEK.] The first third 
187.32  week of school is designated as school bus safety week. 
187.33     A school board may designate one day of school bus safety 
187.34  week as school bus driver day. 
187.35     Sec. 11.  Minnesota Statutes 1996, section 123.7991, 
187.36  subdivision 2, is amended to read: 
188.1      Subd. 2.  [STUDENT TRAINING.] (a) Each school district 
188.2   shall provide public school pupils enrolled in grades 
188.3   kindergarten through 10 with age-appropriate school bus safety 
188.4   training.  The training shall be results-oriented and shall 
188.5   consist of both classroom instruction and practical training 
188.6   using a school bus.  Upon completing the training, a student 
188.7   shall be able to demonstrate knowledge and understanding of at 
188.8   least the following competencies and concepts: 
188.9      (1) transportation by school bus is a privilege and not a 
188.10  right; 
188.11     (2) district policies for student conduct and school bus 
188.12  safety; 
188.13     (3) appropriate conduct while on the school bus; 
188.14     (4) the danger zones surrounding a school bus; 
188.15     (5) procedures for safely boarding and leaving a school 
188.16  bus; 
188.17     (6) procedures for safe street or road crossing; and 
188.18     (7) school bus evacuation and other emergency procedures. 
188.19     (b) Each nonpublic school located within the district shall 
188.20  provide all nonpublic school pupils enrolled in grades 
188.21  kindergarten through 10 who are transported by school bus at 
188.22  public expense and attend school within the district's 
188.23  boundaries with training as required in paragraph (a).  The 
188.24  school district shall make a bus available for the practical 
188.25  training if the district transports the nonpublic students.  
188.26  Each nonpublic school shall provide the instruction. 
188.27     (c) Student school bus safety training shall commence 
188.28  during school bus safety week.  All students enrolled in grades 
188.29  kindergarten through 3 who are transported by school bus and are 
188.30  enrolled during the first or second week of school must 
188.31  demonstrate achievement of the school bus safety training 
188.32  competencies by the end of the third week of school.  All 
188.33  students enrolled in grades 4 through 10 who are transported by 
188.34  school bus and are enrolled during the first or second week of 
188.35  school must demonstrate achievement of the competencies by the 
188.36  end of the sixth week of school.  Students enrolled in grades 
189.1   kindergarten through 10 who enroll in a school after the second 
189.2   week of school and are transported by school bus shall undergo 
189.3   school bus safety training and demonstrate achievement of the 
189.4   school bus safety competencies within four weeks of the first 
189.5   day of attendance.  The pupil transportation safety director in 
189.6   each district must certify to the commissioner of children, 
189.7   families, and learning annually that all students transported by 
189.8   school bus within the district have satisfactorily demonstrated 
189.9   knowledge and understanding of the school bus safety 
189.10  competencies according to this section or provide an explanation 
189.11  for a student's failure to demonstrate the competencies.  The 
189.12  principal or other chief administrator of each nonpublic school 
189.13  must certify annually to the public transportation safety 
189.14  director of the district in which the school is located that all 
189.15  of the school's students transported by school bus at public 
189.16  expense have received training.  A school district may deny 
189.17  transportation to a student who fails to demonstrate the 
189.18  competencies, unless the student is unable to achieve the 
189.19  competencies due to a disability, or to a student who attends a 
189.20  nonpublic school that fails to provide training as required by 
189.21  this subdivision. 
189.22     (d) A school district and a nonpublic school with students 
189.23  transported by school bus at public expense must, to the extent 
189.24  possible, provide kindergarten pupils with bus safety training 
189.25  before the first day of school. 
189.26     (e) A school district and a nonpublic school with students 
189.27  transported by school bus at public expense must also provide 
189.28  student safety education for bicycling and pedestrian safety, 
189.29  for students enrolled in grades kindergarten through 5. 
189.30     (f) A school district and a nonpublic school with students 
189.31  transported by school bus at public expense must make reasonable 
189.32  accommodations for the school bus, bicycle, and pedestrian 
189.33  safety training of pupils known to speak English as a second 
189.34  language and pupils with disabilities. 
189.35     Sec. 12.  Minnesota Statutes 1996, section 124.26, 
189.36  subdivision 1b, is amended to read: 
190.1      Subd. 1b.  [PROGRAM REQUIREMENTS.] An adult basic education 
190.2   program is a day or evening program offered by a district that 
190.3   is for people over 16 years of age through the 1999-2000 school 
190.4   year and over 18 years of age beginning with the 2000-2001 
190.5   school year who do not attend an elementary or secondary 
190.6   school.  The program offers academic instruction necessary to 
190.7   earn a high school diploma or equivalency certificate.  Tuition 
190.8   and fees may not be charged to a learner for instruction paid 
190.9   under this section, except for a security deposit to assure 
190.10  return of materials, supplies, and equipment. 
190.11     Sec. 13.  Minnesota Statutes 1996, section 124C.498, 
190.12  subdivision 2, is amended to read: 
190.13     Subd. 2.  [APPROVAL AUTHORITY; APPLICATION FORMS.] To the 
190.14  extent money is available, the commissioner of children, 
190.15  families, and learning may approve projects from applications 
190.16  submitted under this section.  The grant money must be used only 
190.17  to design, acquire, construct, remodel, improve, furnish, or 
190.18  equip the building or site of a magnet school facility according 
190.19  to contracts entered into within 15 24 months after the date on 
190.20  which a grant is awarded. 
190.21     Sec. 14.  Minnesota Statutes 1996, section 126.036, is 
190.22  amended to read: 
190.23     126.036 [LAW ENFORCEMENT RECORDS.] 
190.24     A law enforcement agency shall provide notice of any drug 
190.25  incident occurring within the agency's jurisdiction, in which 
190.26  the agency has probable cause to believe a student violated 
190.27  section 152.021, 152.022, 152.023, 152.024, 152.025, 152.027, 
190.28  152.097, or 340A.503, subdivision 1, 2, or 3, or 609.685, 
190.29  subdivision 3.  The notice shall be in writing and shall be 
190.30  provided, within two weeks after an incident occurs, to the 
190.31  chemical abuse preassessment team in the school where the 
190.32  student is enrolled. 
190.33     Sec. 15.  Minnesota Statutes 1996, section 126.037, 
190.34  subdivision 1, is amended to read: 
190.35     Subdivision 1.  [TEACHER'S DUTY.] A teacher in a nonpublic 
190.36  school participating in a school district chemical use program, 
191.1   or a public school teacher, who knows or has reason to believe 
191.2   that a student is using, possessing, or transferring alcohol, 
191.3   tobacco, or a controlled substance while on the school premises 
191.4   or involved in school-related activities, shall immediately 
191.5   notify the school's chemical abuse preassessment team of this 
191.6   information.  A teacher who complies with this section shall be 
191.7   defended and indemnified under section 466.07, subdivision 1, in 
191.8   any action for damages arising out of the compliance. 
191.9      Sec. 16.  Minnesota Statutes 1996, section 127.26, is 
191.10  amended to read: 
191.11     127.26 [CITATION.] 
191.12     Sections 127.26 to 127.39 may be cited as "The pupil fair 
191.13  dismissal act of 1974."  
191.14     Sec. 17.  Minnesota Statutes 1996, section 127.27, 
191.15  subdivision 5, is amended to read: 
191.16     Subd. 5.  [EXPULSION.] "Expulsion" means an action taken by 
191.17  a school board action to prohibit an enrolled pupil from further 
191.18  attendance for a period that shall not extend beyond an amount 
191.19  of time equal up to one school year 12 months from the date a 
191.20  the pupil is expelled. 
191.21     Sec. 18.  Minnesota Statutes 1996, section 127.27, 
191.22  subdivision 6, is amended to read: 
191.23     Subd. 6.  [PARENT.] "Parent" means (a) one of the pupil's 
191.24  parents, or (b) in the case of divorce or legal separation, or 
191.25  if the child's mother was not married to the child's father when 
191.26  the child was conceived nor when the child was born, the 
191.27  custodial parent the parent or parents with physical custody of 
191.28  the pupil, including a noncustodial parent with legal custody 
191.29  who has provided the district with a current address and 
191.30  telephone number, or (c) a legally appointed guardian.  In the 
191.31  case of a pupil with a disability under the age of 18, parent 
191.32  may include a district-appointed surrogate parent. 
191.33     Sec. 19.  Minnesota Statutes 1996, section 127.27, 
191.34  subdivision 7, is amended to read: 
191.35     Subd. 7.  [PUPIL.] "Pupil" means any student with or: 
191.36     (1) without a disability under 21 years of age; or 
192.1      (2) with a disability until September 1 after the child 
192.2   with a disability becomes 22 years of age; 
192.3      (3) and who remains eligible to attend a public elementary 
192.4   or secondary school. 
192.5      Sec. 20.  Minnesota Statutes 1996, section 127.27, 
192.6   subdivision 8, is amended to read: 
192.7      Subd. 8.  [SCHOOL.] "School" means any school as defined in 
192.8   Minnesota Statutes 1971, section 120.05, subdivision 2. 
192.9      Sec. 21.  Minnesota Statutes 1996, section 127.27, 
192.10  subdivision 10, is amended to read: 
192.11     Subd. 10.  [SUSPENSION.] "Suspension" means an action taken 
192.12  by the school administration, under rules promulgated by the 
192.13  school board, prohibiting a pupil from attending school for a 
192.14  period of no more than ten school days.  If a suspension is 
192.15  longer than five days, the suspending administrator must provide 
192.16  the superintendent with a reason for the longer suspension.  
192.17  This definition does not apply to dismissal from school for one 
192.18  school day or less.  Each suspension action shall include a 
192.19  readmission plan.  The readmission plan shall include, where 
192.20  appropriate, a provision for implementing alternative programs 
192.21  to be implemented educational services upon readmission.  
192.22  Suspension may not be consecutively imposed The school 
192.23  administration may not impose consecutive suspensions against 
192.24  the same pupil for the same course of conduct, or incident of 
192.25  misconduct, except where the pupil will create an immediate and 
192.26  substantial danger to self or to surrounding persons or 
192.27  property, or where the district is in the process of initiating 
192.28  an expulsion, in which case the school administration may extend 
192.29  the suspension up to 15 days.  In no event shall suspension 
192.30  exceed 15 school days, provided that an In the case of a pupil 
192.31  with a disability, a suspension may not exceed ten school days.  
192.32  The school administration shall implement alternative program 
192.33  shall be implemented educational services to the extent that 
192.34  suspension exceeds five days.  A separate administrative 
192.35  conference is required for each period of suspension. 
192.36     Sec. 22.  Minnesota Statutes 1996, section 127.27, is 
193.1   amended by adding a subdivision to read: 
193.2      Subd. 11.  [ALTERNATIVE EDUCATIONAL SERVICES.] "Alternative 
193.3   educational services" may include, but are not limited to, 
193.4   special tutoring, modified curriculum, modified instruction, 
193.5   other modifications or adaptations, special education services 
193.6   as indicated by appropriate assessment, homebound instruction, 
193.7   or enrollment in another district or in an alternative learning 
193.8   center under section 124C.45. 
193.9      Sec. 23.  Minnesota Statutes 1996, section 127.281, is 
193.10  amended to read: 
193.11     127.281 [EXCLUSION AND EXPULSION OF PUPILS WITH A 
193.12  DISABILITY.] 
193.13     When a pupil who has an individual education plan is 
193.14  excluded or expelled under sections 127.26 to 127.39 for 
193.15  misbehavior that is not a manifestation of the pupil's disabling 
193.16  condition disability, the district shall continue to provide 
193.17  special education and related services after a period of 
193.18  suspension, if suspension is imposed.  The district shall 
193.19  initiate a review of the pupil's individual education plan 
193.20  within ten five school days of the commencement of commencing an 
193.21  expulsion, exclusion, or a suspension of ten days or more.  
193.22     Sec. 24.  Minnesota Statutes 1996, section 127.29, is 
193.23  amended to read: 
193.24     127.29 [GROUNDS FOR DISMISSAL.] 
193.25     Subdivision 1.  No school shall dismiss any pupil without 
193.26  attempting to provide alternative programs of education prior to 
193.27  dismissal educational services before dismissal proceedings, 
193.28  except where it appears that the pupil will create an immediate 
193.29  and substantial danger to self or to surrounding persons or 
193.30  property.  Such programs may include special tutoring, 
193.31  modification of the curriculum for the pupil, placement in a 
193.32  special class or assistance from other agencies. 
193.33     Subd. 2.  A pupil may be dismissed on any of the following 
193.34  grounds: 
193.35     (a) willful violation of any reasonable school board 
193.36  regulation.  Such regulation must be clear and definite to 
194.1   provide notice to pupils that they must conform their conduct to 
194.2   its requirements; 
194.3      (b) willful conduct which that materially and substantially 
194.4   disrupts the rights of others to an education; or 
194.5      (c) willful conduct which that endangers the pupil or other 
194.6   pupils, or the surrounding persons, or property of the school. 
194.7      Sec. 25.  Minnesota Statutes 1996, section 127.30, 
194.8   subdivision 1, is amended to read: 
194.9      Subdivision 1.  No suspension The school administration 
194.10  shall not suspend a pupil from school shall be imposed without 
194.11  an informal administrative conference with the pupil, except.  
194.12  The informal administrative conference shall take place before 
194.13  the suspension, except where it appears that the pupil will 
194.14  create an immediate and substantial danger to self or to 
194.15  surrounding persons or property, in which case the conference 
194.16  shall take place as soon as practicable following the suspension.
194.17     Sec. 26.  Minnesota Statutes 1996, section 127.30, is 
194.18  amended by adding a subdivision to read: 
194.19     Subd. 1a.  At the informal administrative conference, a 
194.20  school administrator shall notify the pupil of the grounds for 
194.21  the suspension, provide an explanation of the evidence the 
194.22  authorities have, and the pupil may present the pupil's version 
194.23  of the facts. 
194.24     Sec. 27.  Minnesota Statutes 1996, section 127.30, 
194.25  subdivision 2, is amended to read: 
194.26     Subd. 2.  A written notice containing the grounds for 
194.27  suspension, a brief statement of the facts, a description of the 
194.28  testimony, a readmission plan, and a copy of sections 127.26 to 
194.29  127.39, shall be personally served upon the pupil at or before 
194.30  the time the suspension is to take effect, and upon the pupil's 
194.31  parent or guardian by certified mail within 48 hours of the 
194.32  conference.  The district shall make reasonable efforts to 
194.33  notify the parents of the suspension by telephone as soon as 
194.34  possible following suspension.  In the event a pupil is 
194.35  suspended without an informal administrative conference on the 
194.36  grounds that the pupil will create an immediate and substantial 
195.1   danger to surrounding persons or property, the written notice 
195.2   shall be served either personally or by certified mail upon the 
195.3   pupil and the pupil's parent or guardian within 48 hours of the 
195.4   suspension.  Service by certified mail is complete upon mailing. 
195.5      Sec. 28.  Minnesota Statutes 1996, section 127.30, 
195.6   subdivision 3, is amended to read: 
195.7      Subd. 3.  Notwithstanding the provisions of subdivisions 1 
195.8   and 2, the pupil may be suspended pending the school board's 
195.9   decision in the expulsion or exclusion hearing; provided that an 
195.10  alternative program shall be educational services are 
195.11  implemented to the extent that suspension exceeds five days. 
195.12     Sec. 29.  Minnesota Statutes 1996, section 127.31, 
195.13  subdivision 2, is amended to read: 
195.14     Subd. 2.  Written notice of intent to take action shall: 
195.15     (a) be served upon the pupil and the pupil's parent or 
195.16  guardian personally or by certified mail; 
195.17     (b) contain a complete statement of the facts, a list of 
195.18  the witnesses and a description of their testimony; 
195.19     (c) state the date, time, and place of the hearing; 
195.20     (d) be accompanied by a copy of sections 127.26 to 127.39; 
195.21     (e) describe alternative educational programs services 
195.22  accorded the pupil prior to commencement of in an attempt to 
195.23  avoid the expulsion or exclusion proceedings; and 
195.24     (f) inform the pupil and parent or guardian of the right to:
195.25     (1) have a representative of the pupil's own choosing, 
195.26  including legal counsel, at the hearing.  The district shall 
195.27  advise the pupil's parent or guardian that free or low-cost 
195.28  legal assistance may be available and that a legal assistance 
195.29  resource list is available from the department of children, 
195.30  families, and learning; 
195.31     (2) examine the pupil's records before the hearing; 
195.32     (3) present evidence; and 
195.33     (4) confront and cross-examine witnesses.  
195.34     Sec. 30.  Minnesota Statutes 1996, section 127.31, 
195.35  subdivision 7, is amended to read: 
195.36     Subd. 7.  The hearing shall take place before: 
196.1      (a) (1) an independent hearing officer; 
196.2      (b) (2) a member of the school board; 
196.3      (c) (3) a committee of the school board,; or; 
196.4      (d) (4) the full school board; 
196.5   as determined by the school board.  The hearing shall be 
196.6   conducted in a fair and impartial manner. 
196.7      Sec. 31.  Minnesota Statutes 1996, section 127.31, 
196.8   subdivision 8, is amended to read: 
196.9      Subd. 8.  The proceedings of the hearing shall be recorded 
196.10  and preserved, at the expense of the school district, pending 
196.11  ultimate disposition of the action.  The school board shall 
196.12  record the hearing proceedings at district expense, and a party 
196.13  may obtain a transcript at its own expense.  Testimony shall be 
196.14  given under oath.  The hearing officer or a member of the school 
196.15  board shall have the power to issue subpoenas and administer 
196.16  oaths.  
196.17     Sec. 32.  Minnesota Statutes 1996, section 127.31, 
196.18  subdivision 13, is amended to read: 
196.19     Subd. 13.  The recommendation of the hearing officer or 
196.20  school board member or committee shall be based solely upon 
196.21  substantial evidence presented at the hearing and must be made 
196.22  to the school board and served upon the parties within two days 
196.23  of the end of the hearing.  
196.24     Sec. 33.  Minnesota Statutes 1996, section 127.31, 
196.25  subdivision 14, is amended to read: 
196.26     Subd. 14.  The decision by The school board shall be based 
196.27  base its decision upon the recommendation of the hearing officer 
196.28  or school board member or committee and shall be rendered render 
196.29  its decision at a special meeting held within five days after 
196.30  receipt of receiving the recommendation.  The school board may 
196.31  provide the parties with the opportunity to present exceptions 
196.32  and comments to the hearing officer's recommendations provided 
196.33  that neither party presents any evidence not admitted at the 
196.34  hearing.  The decision shall by the school board must be based 
196.35  on the record, must be in writing, and must state the 
196.36  controlling facts found upon on which the decision is made shall 
197.1   be stated in sufficient detail to apprise the parties and the 
197.2   commissioner of children, families, and learning of the basis 
197.3   and reason for the decision. 
197.4      Sec. 34.  Minnesota Statutes 1996, section 127.31, 
197.5   subdivision 15, is amended to read: 
197.6      Subd. 15.  [ADMISSION OR READMISSION PLAN.] A school board 
197.7   may administrator shall prepare and enforce an admission or 
197.8   readmission plan for any pupil who is suspended, excluded, or 
197.9   expelled from school.  The plan may include measures to improve 
197.10  the pupil's behavior and require parental involvement in the 
197.11  admission or readmission process, and may indicate the 
197.12  consequences to the pupil of not improving the pupil's behavior. 
197.13     Sec. 35.  Minnesota Statutes 1996, section 127.311, is 
197.14  amended to read: 
197.15     127.311 [GOOD FAITH EXCEPTION.] 
197.16     A violation of the technical provisions of the pupil fair 
197.17  dismissal act of 1974, made in good faith, is not a defense to a 
197.18  disciplinary procedure under the act unless the pupil can 
197.19  demonstrate actual prejudice as a result of the violation. 
197.20     Sec. 36.  Minnesota Statutes 1996, section 127.32, is 
197.21  amended to read: 
197.22     127.32 [APPEAL.] 
197.23     A party to an exclusion or expulsion decision made pursuant 
197.24  to under sections 127.26 to 127.39 may be appealed appeal the 
197.25  decision to the commissioner of children, families, and learning 
197.26  within 21 calendar days of school board action.  Upon being 
197.27  served with a notice of appeal, the district shall provide the 
197.28  commissioner and the parent or guardian with a complete copy of 
197.29  the hearing record within five days of its receipt of the notice 
197.30  of appeal.  All written submissions by the appellant must be 
197.31  submitted and served on the respondent within ten days of its 
197.32  actual receipt of the transcript.  All written submissions by 
197.33  the respondent must be submitted and served on the appellant 
197.34  within ten days of its actual receipt of the written submissions 
197.35  of the appellant. 
197.36     In an appeal under this section, the commissioner may 
198.1   affirm the decision of the agency or may reverse or modify the 
198.2   decision if the substantial rights of the petitioners may have 
198.3   been prejudiced because the administrative findings, inferences, 
198.4   conclusions, or decisions are: 
198.5      (1) in violation of constitutional provisions; 
198.6      (2) in excess of the statutory authority or jurisdiction of 
198.7   the school district; 
198.8      (3) made upon unlawful procedure, except as provided in 
198.9   section 127.311; 
198.10     (4) affected by other error of law; 
198.11     (5) unsupported by substantial evidence in view of the 
198.12  entire record submitted; or 
198.13     (6) arbitrary or capricious. 
198.14  The commissioner or the commissioner's representative shall make 
198.15  a final decision based upon a the record of evidence presented 
198.16  at the hearing.  Such ruling shall be binding upon the parties, 
198.17  subject to judicial review as provided in section 127.33.  The 
198.18  commissioner shall issue a decision within 30 calendar days of 
198.19  receiving the entire record and the parties' written submission 
198.20  on appeal.  The commissioner's decision shall be final and 
198.21  binding upon the parties after the time for appeal expires under 
198.22  section 127.33. 
198.23     Sec. 37.  Minnesota Statutes 1996, section 127.33, is 
198.24  amended to read: 
198.25     127.33 [JUDICIAL REVIEW.] 
198.26     The decision of the commissioner of children, families, and 
198.27  learning made pursuant to under sections 127.26 to 127.39 shall 
198.28  be is subject to judicial review in accordance with chapter 14 
198.29  under sections 14.63 to 14.69.  The decision of the commissioner 
198.30  is stayed pending an appeal under this section. 
198.31     Sec. 38.  Minnesota Statutes 1996, section 127.36, is 
198.32  amended to read: 
198.33     127.36 [REPORT TO COMMISSIONER OF CHILDREN, FAMILIES, AND 
198.34  LEARNING.] 
198.35     Subdivision 1.  [EXCLUSIONS AND EXPULSIONS.] The school 
198.36  board shall report each exclusion or expulsion within 30 days of 
199.1   the effective date of the action to the commissioner of 
199.2   children, families, and learning.  This report shall include a 
199.3   statement of alternative programs of education accorded 
199.4   educational services given the pupil prior to the commencement 
199.5   of before beginning exclusion or expulsion proceedings, and the 
199.6   reason for, the effective date, and the duration of the 
199.7   exclusion or expulsion.  
199.8      Subd. 2.  [REPORT.] The school board must include state 
199.9   student identification numbers of affected pupils on all 
199.10  dismissal reports required by the department.  The department 
199.11  must report annually to the commissioner summary data on the 
199.12  number of dismissals by age, grade, gender, race, and special 
199.13  education status of the affected pupils. 
199.14     Sec. 39.  Minnesota Statutes 1996, section 127.37, is 
199.15  amended to read: 
199.16     127.37 [NOTICE OF RIGHT TO BE REINSTATED.] 
199.17     Whenever a pupil fails to return to school within ten 
199.18  school days of the termination of dismissal, a school 
199.19  administrator shall inform the pupil and the pupil's 
199.20  parents shall be informed by certified mail of the pupil's right 
199.21  to attend and to be reinstated in the public school.  
199.22     Sec. 40.  Minnesota Statutes 1996, section 127.38, is 
199.23  amended to read: 
199.24     127.38 [POLICIES TO BE ESTABLISHED.] 
199.25     (a) The commissioner of children, families, and learning 
199.26  shall promulgate guidelines to assist each school board.  Each 
199.27  school board shall establish uniform criteria for dismissal and 
199.28  adopt written policies and rules in writing to effectuate the 
199.29  purposes of sections 127.26 to 127.39.  The policies will shall 
199.30  emphasize the prevention of dismissal action preventing 
199.31  dismissals through early detection of problems.  The policies 
199.32  shall recognize the continuing responsibility of the school for 
199.33  the education of the pupil during the dismissal period.  The 
199.34  alternative educational services, if the pupil wishes to take 
199.35  advantage of them, must be adequate to allow the pupil to make 
199.36  progress towards meeting the graduation standards adopted under 
200.1   section 121.11, subdivision 7c, and help prepare the pupil for 
200.2   readmission.  
200.3      (b) An area learning center under section 124C.45 may not 
200.4   prohibit an expelled or excluded pupil from enrolling solely 
200.5   because a district expelled or excluded the pupil.  The board of 
200.6   the area learning center may use the provisions of the Pupil 
200.7   Fair Dismissal Act to exclude a pupil or to require an admission 
200.8   plan. 
200.9      (c) The commissioner shall actively encourage and assist 
200.10  school districts to cooperatively establish alternative learning 
200.11  programs educational services that offer instruction to pupils 
200.12  who are dismissed from school for willfully engaging in 
200.13  dangerous, disruptive, or violent behavior, including for 
200.14  possessing a firearm in a school zone. 
200.15     Sec. 41.  [127.465] [HAZING POLICY.] 
200.16     Subdivision 1.  [DEFINITIONS.] (a) "Hazing" means doing an 
200.17  act against a student, or coercing a student into doing an act, 
200.18  in order for the student to be initiated into or affiliated with 
200.19  a student organization, if the act creates a substantial risk of 
200.20  harm to any person. 
200.21     (b) "Student organization" means a group, club, or 
200.22  organization that has students as its primary members or 
200.23  participants. 
200.24     Subd. 2.  [MODEL POLICY.] The commissioner shall maintain 
200.25  and make available to school boards a model policy on hazing by 
200.26  students or staff that addresses the requirements of subdivision 
200.27  3.  
200.28     Subd. 3.  [SCHOOL BOARD POLICY.] Each school board shall 
200.29  adopt a written policy governing hazing by students.  The policy 
200.30  must apply to behavior that occurs on or off school property and 
200.31  during and after school hours.  The policy must include 
200.32  reporting procedures and disciplinary actions against students 
200.33  or staff that will be taken for a violation of the policy.  
200.34  Disciplinary actions must be of sufficient severity to deter 
200.35  violations and provide sanctions for the behavior.  Disciplinary 
200.36  actions must conform with sections 127.27 to 127.39.  The policy 
201.1   must be included in each school's student handbook on school 
201.2   policies. 
201.3      Sec. 42.  Minnesota Statutes 1996, section 128C.02, 
201.4   subdivision 2, is amended to read: 
201.5      Subd. 2.  [SEXUAL HARASSMENT AND VIOLENCE; HAZING.] The 
201.6   board of the league shall adopt a policy, rules, penalties, and 
201.7   recommendations addressing sexual harassment and sexual violence 
201.8   and hazing toward and by participants in league activities. 
201.9      Sec. 43.  Minnesota Statutes 1996, section 128C.02, is 
201.10  amended by adding a subdivision to read: 
201.11     Subd. 9.  [BUDGET.] The league is subject to the 
201.12  commissioner of finance's rules and instructions governing 
201.13  budget preparation.  The league budget must be submitted to the 
201.14  commissioner of finance and to the legislature in the same 
201.15  manner as budgets of executive branch agencies. 
201.16     Sec. 44.  Minnesota Statutes 1996, section 128C.12, 
201.17  subdivision 1, is amended to read: 
201.18     Subdivision 1.  [DUES AND EVENTS REVENUE.] The state 
201.19  auditor annually must examine the accounts of, and audit all 
201.20  money paid to, the state high school league by its members.  The 
201.21  audit must include financial and compliance issues.  The state 
201.22  auditor must also audit all money derived from any event 
201.23  sponsored by the league and review any private audits done for 
201.24  the league.  League audits must include audits of administrative 
201.25  regions of the league.  The league and its administrative 
201.26  regions may not contract with private auditors.  The scope of 
201.27  the state auditor's examinations of the league must be agreed 
201.28  upon by the board and the state auditor, provided that all 
201.29  requirements of this section must be met. 
201.30     Sec. 45.  [128C.13] [INVESTMENT.] 
201.31     The governing board of the league may request the state 
201.32  board of investment to invest nonretirement funds of the league, 
201.33  and the state board of investment may invest these funds when 
201.34  requested. 
201.35     Sec. 46.  [135A.081] [REMEDIAL INSTRUCTION; HIGH SCHOOL 
201.36  DIPLOMA WARRANTY.] 
202.1      Subdivision 1.  [CONDITIONS.] A public post-secondary 
202.2   institution may provide remedial instruction if within 12 months 
202.3   of first enrollment, the institution determines that the 
202.4   student's English language reading or writing ability, or the 
202.5   student's mathematic ability does not rise to the level that is 
202.6   a necessary prerequisite to minimally acceptable comprehension 
202.7   of entry level courses or programs at the institution. 
202.8      Subd. 2.  [CONFIRMATION.] The institution's determination 
202.9   of a student's substandard ability is confirmed if the student 
202.10  scores below 12th grade level in a standardized test in any of 
202.11  the following areas covered by the determination:  English 
202.12  language reading comprehension, English language composition, or 
202.13  mathematics. 
202.14     Subd. 3.  [HIGH SCHOOL DIPLOMA WARRANTY COVERAGE.] (a) If a 
202.15  student who graduated from a public high school scores below the 
202.16  10th grade level on a confirming test, the student's high school 
202.17  shall pay the tuition for the student for all remedial courses 
202.18  in the area covered by the confirming test that the student 
202.19  takes in the first year after the student's graduation from high 
202.20  school.  The student's high school shall pay one-half of the 
202.21  tuition for the student for all remedial courses in the area 
202.22  covered by the confirming test that the student takes in the 
202.23  second year after the student's graduation from high school.  
202.24  This subdivision shall apply to students graduating from a 
202.25  public high school on or after May 1, 1999. 
202.26     (b) The payment of tuition by the public high school shall 
202.27  be waived if the high school can demonstrate, through the 
202.28  results of a standardized test, that the student had attained 
202.29  10th grade level performance in the area covered by the 
202.30  confirming test prior to graduation. 
202.31     Subd. 4.  [NO CREDITS; STUDENT COSTS.] A post-secondary 
202.32  institution providing remedial instruction under this section 
202.33  must not award credit to a student toward a degree or program 
202.34  completion for remedial instruction provided under this section. 
202.35     Subd. 5.  [JUST CLAIM.] A request for payment for remedial 
202.36  instruction to a student under this section is, under section 
203.1   123.40, subdivision 1, a just claim against the school district 
203.2   that includes the student's high school. 
203.3      Sec. 47.  [135A.155] [HAZING POLICY.] 
203.4      The board of trustees of the Minnesota state colleges and 
203.5   universities shall, and the University of Minnesota is requested 
203.6   to, adopt a clear, understandable written policy on student 
203.7   conduct, including hazing.  The policy must include procedures 
203.8   for reporting incidents of inappropriate hazing and for 
203.9   disciplinary actions against individual violators and 
203.10  organizations.  The policy must be provided to students when 
203.11  they register and must be posted at appropriate locations on 
203.12  campus.  A private post-secondary institution that is an 
203.13  eligible institution as defined in section 136A.101, subdivision 
203.14  4, must adopt a policy that meets the requirements of this 
203.15  section. 
203.16     Sec. 48.  Minnesota Statutes 1996, section 169.01, 
203.17  subdivision 6, is amended to read: 
203.18     Subd. 6.  [SCHOOL BUS.] "School bus" means a motor vehicle 
203.19  used to transport pupils to or from a school defined in section 
203.20  120.101, or to or from school-related activities, by the school 
203.21  or a school district, or by someone under an agreement with the 
203.22  school or a school district.  A school bus does not include a 
203.23  motor vehicle transporting children to or from school for which 
203.24  parents or guardians receive direct compensation from a school 
203.25  district, a motor coach operating under charter carrier 
203.26  authority, a transit bus providing services as defined in 
203.27  section 174.22, subdivision 7, or a vehicle otherwise qualifying 
203.28  as a type III vehicle under paragraph (5), when the vehicle is 
203.29  properly registered and insured and being driven by an employee 
203.30  or agent of a school district for nonscheduled transportation.  
203.31  A school bus may be type A, type B, type C, or type D, or type 
203.32  III as follows:  
203.33     (1) A "type A school bus" is a conversion or body 
203.34  constructed upon a van-type compact truck or a front-section 
203.35  vehicle, with a gross vehicle weight rating of 10,000 pounds or 
203.36  less or cutaway front section vehicle with a left-side driver's 
204.1   door, designed for carrying more than ten persons.  This 
204.2   definition includes two classifications:  type A-I, with a gross 
204.3   vehicle weight rating (GVWR) over 10,000 pounds; and type A-II, 
204.4   with a GVWR of 10,000 pounds or less. 
204.5      (2) A "type B school bus" is a conversion or body 
204.6   constructed and installed upon a van or front-section vehicle 
204.7   chassis, or stripped chassis, with a gross vehicle weight rating 
204.8   of more than 10,000 pounds, designed for carrying more than ten 
204.9   persons.  Part of the engine is beneath or behind the windshield 
204.10  and beside the driver's seat.  The entrance door is behind the 
204.11  front wheels. 
204.12     (3) A "type C school bus" is a body installed upon a flat 
204.13  back cowl chassis with a gross vehicle weight rating of more 
204.14  than 10,000 pounds, designed for carrying more than ten 
204.15  persons.  All of the engine is in front of the windshield and 
204.16  the entrance door is behind the front wheels. 
204.17     (4) A "type D school bus" is a body installed upon a 
204.18  chassis, with the engine mounted in the front, midship or rear, 
204.19  with a gross vehicle weight rating of more than 10,000 pounds, 
204.20  designed for carrying more than ten persons.  The engine may be 
204.21  behind the windshield and beside the driver's seat; it may be at 
204.22  the rear of the bus, behind the rear wheels, or midship between 
204.23  the front and rear axles.  The entrance door is ahead of the 
204.24  front wheels. 
204.25     (5) Type III school buses and type III Head Start buses are 
204.26  restricted to passenger cars, station wagons, vans, and buses 
204.27  having a maximum manufacturer's rated seating capacity of ten 
204.28  people, including the driver, and a gross vehicle weight rating 
204.29  of 10,000 pounds or less.  In this subdivision, "gross vehicle 
204.30  weight rating" means the value specified by the manufacturer as 
204.31  the loaded weight of a single vehicle.  A "type III school bus" 
204.32  and "type III Head Start bus" must not be outwardly equipped and 
204.33  identified as a type A, B, C, or D school bus or type A, B, C, 
204.34  or D Head Start bus. 
204.35     Sec. 49.  Minnesota Statutes 1996, section 169.21, 
204.36  subdivision 2, is amended to read: 
205.1      Subd. 2.  [RIGHTS IN ABSENCE OF SIGNALS.] (a) Where 
205.2   traffic-control signals are not in place or in operation, the 
205.3   driver of a vehicle shall stop to yield the right-of-way to a 
205.4   pedestrian crossing the roadway within a marked crosswalk or 
205.5   within any crosswalk at an intersection but no pedestrian shall 
205.6   suddenly leave a curb or other place of safety and walk or run 
205.7   into the path of a vehicle which is so close that it is 
205.8   impossible for the driver to yield.  This provision shall not 
205.9   apply under the conditions as otherwise provided in this 
205.10  subdivision. 
205.11     (b) When any vehicle is stopped at a marked crosswalk or at 
205.12  any unmarked crosswalk at an intersection to permit a pedestrian 
205.13  to cross the roadway, the driver of any other vehicle 
205.14  approaching from the rear shall not overtake and pass the 
205.15  stopped vehicle. 
205.16     (c) It is unlawful for any person to drive a motor vehicle 
205.17  through a column of school children crossing a street or highway 
205.18  or past a member of a school safety patrol or adult crossing 
205.19  guard, while the member of the school safety patrol or adult 
205.20  crossing guard is directing the movement of children across a 
205.21  street or highway and while the school safety patrol member or 
205.22  adult crossing guard is holding an official signal in the stop 
205.23  position.  A peace officer may arrest the driver of a motor 
205.24  vehicle if the peace officer has probable cause to believe that 
205.25  the driver has operated the vehicle in violation of this 
205.26  paragraph within the past four hours. 
205.27     (d) A person who violates this subdivision is guilty of a 
205.28  misdemeanor and may be sentenced to imprisonment for not more 
205.29  than 90 days or to payment of a fine of not more than $700, or 
205.30  both.  A person who violates this subdivision a second or 
205.31  subsequent time within one year of a previous conviction under 
205.32  this subdivision is guilty of a gross misdemeanor and may be 
205.33  sentenced to imprisonment for not more than one year or to 
205.34  payment of a fine of not more than $3,000, or both. 
205.35     Sec. 50.  Minnesota Statutes 1996, section 169.435, 
205.36  subdivision 2, is amended to read: 
206.1      Subd. 2.  [SCHOOL BUS SAFETY ADVISORY COMMITTEE.] (a) The 
206.2   commissioner of public safety shall establish the school bus 
206.3   safety advisory committee.  The commissioner shall provide the 
206.4   committee with meeting space and clerical support.  The 
206.5   commissioner of public safety or the commissioner's designee 
206.6   shall chair the committee.  The members of the committee also 
206.7   shall include: 
206.8      (1) the commissioner of children, families, and learning or 
206.9   the commissioner's designee; 
206.10     (2) the commissioner of human rights or the commissioner's 
206.11  designee; 
206.12     (3) a county or city attorney; 
206.13     (4) a representative of the state patrol; 
206.14     (5) a school board member; 
206.15     (6) a school superintendent; 
206.16     (7) two school bus drivers, one representing the 
206.17  metropolitan area and one representing greater Minnesota; 
206.18     (8) two school transportation contractors, one representing 
206.19  the metropolitan areas and one representing greater Minnesota; 
206.20     (9) two school transportation safety directors, one 
206.21  representing the metropolitan area and one representing greater 
206.22  Minnesota; and 
206.23     (10) five public members, including at least four parents 
206.24  of children who ride a school bus, among them a parent of a 
206.25  child with a disability.  The public members shall be 
206.26  geographically representative. 
206.27     The commissioner of public safety, in consultation with the 
206.28  commissioner of children, families, and learning, shall appoint 
206.29  the members listed in clauses (3) to (9).  The governor shall 
206.30  appoint the public members in clause (10).  Terms, compensation, 
206.31  and removal of committee members shall be according to section 
206.32  15.059.  The committee shall meet quarterly or as required by 
206.33  the chair. 
206.34     (b) The duties of the committee shall include: 
206.35     (1) an annual report by January 15 to the governor and the 
206.36  education committees of the legislature, including 
207.1   recommendations for legislative action when needed, on student 
207.2   bus safety education, school bus equipment requirements and 
207.3   inspection, including seat belts and other occupant restraint 
207.4   systems, bus driver licensing, training, and qualifications, bus 
207.5   operation procedures, student behavior and discipline, rules of 
207.6   the road, school bus safety education for the public, or any 
207.7   other aspects of school transportation safety the committee 
207.8   considers appropriate; 
207.9      (2) a quarterly review of all school transportation 
207.10  accidents, crimes, incidents of serious misconduct, incidents 
207.11  that result in serious personal injury or death, and bus driver 
207.12  dismissals for cause; and 
207.13     (3) periodic review of school district comprehensive 
207.14  transportation safety policies. 
207.15     (c) The committee expires June 30, 2001. 
207.16     Sec. 51.  Minnesota Statutes 1996, section 169.443, 
207.17  subdivision 3, is amended to read: 
207.18     Subd. 3.  [WHEN SIGNALS NOT USED.] School bus drivers shall 
207.19  not activate the prewarning flashing amber signals or flashing 
207.20  red signals and shall not use the stop arm signal: 
207.21     (1) in special school bus loading areas where the bus is 
207.22  entirely off the traveled portion of the roadway and where no 
207.23  other motor vehicle traffic is moving or is likely to be moving 
207.24  within 20 feet of the bus; 
207.25     (2) in residence districts or business districts, as 
207.26  defined in section 169.01, of home rule or statutory cities when 
207.27  directed not to do so, in writing, by the local school 
207.28  administrator board; 
207.29     (3) when a school bus is being used on a street or highway 
207.30  for purposes other than the actual transportation of school 
207.31  children to or from school or a school-approved activity, except 
207.32  as provided in subdivision 8; 
207.33     (4) at railroad grade crossings; and 
207.34     (5) when loading and unloading people while the bus is 
207.35  completely off the traveled portion of a separated, one-way 
207.36  roadway that has adequate shoulders.  The driver shall drive the 
208.1   bus completely off the traveled portion of this roadway before 
208.2   loading or unloading people. 
208.3      Sec. 52.  Minnesota Statutes 1996, section 169.444, is 
208.4   amended by adding a subdivision to read: 
208.5      Subd. 1a.  [PASSING ON RIGHT.] No person may pass or 
208.6   attempt to pass a school bus in a motor vehicle on the 
208.7   right-hand, passenger-door side of the bus when the school bus 
208.8   is displaying the prewarning flashing amber signals as required 
208.9   in section 169.443, subdivision 1. 
208.10     Sec. 53.  Minnesota Statutes 1996, section 169.444, 
208.11  subdivision 2, is amended to read: 
208.12     Subd. 2.  [VIOLATIONS BY DRIVERS; PENALTIES.] (a) A person 
208.13  who fails to stop a vehicle or to keep it stopped, as required 
208.14  in subdivision 1, or who violates subdivision 1a, is guilty of a 
208.15  misdemeanor punishable by a fine of not less than $300. 
208.16     (b) A person is guilty of a gross misdemeanor if the person 
208.17  fails to stop a motor vehicle or to keep it stopped, as required 
208.18  in subdivision 1, and commits either or both of the following 
208.19  acts: 
208.20     (1) passes or attempts to pass the school bus in a motor 
208.21  vehicle on the right-hand, passenger-door side of the bus; or 
208.22     (2) passes or attempts to pass the school bus in a motor 
208.23  vehicle when a school child is outside of and on the street or 
208.24  highway used by the school bus or on the adjacent sidewalk. 
208.25     Sec. 54.  Minnesota Statutes 1996, section 169.444, 
208.26  subdivision 5, is amended to read: 
208.27     Subd. 5.  [CAUSE FOR ARREST.] A peace officer may arrest 
208.28  the driver of a motor vehicle if the peace officer has probable 
208.29  cause to believe that the driver has operated the vehicle in 
208.30  violation of subdivision 1 or 1a within the past four hours. 
208.31     Sec. 55.  Minnesota Statutes 1996, section 169.444, 
208.32  subdivision 6, is amended to read: 
208.33     Subd. 6.  [VIOLATION; PENALTY FOR OWNERS AND LESSEES.] (a) 
208.34  If a motor vehicle is operated in violation of subdivision 1 or 
208.35  1a, the owner of the vehicle, or for a leased motor vehicle the 
208.36  lessee of the vehicle, is guilty of a petty misdemeanor. 
209.1      (b) The owner or lessee may not be fined under paragraph 
209.2   (a) if (1) another person is convicted for that violation, or 
209.3   (2) the motor vehicle was stolen at the time of the violation.  
209.4      (c) Paragraph (a) does not apply to a lessor of a motor 
209.5   vehicle if the lessor keeps a record of the name and address of 
209.6   the lessee.  
209.7      (d) Paragraph (a) does not prohibit or limit the 
209.8   prosecution of a motor vehicle operator for violating 
209.9   subdivision 1 or 1a.  
209.10     (e) A violation under paragraph (a) does not constitute 
209.11  grounds for revocation or suspension of the owner's or lessee's 
209.12  driver's license.  
209.13     Sec. 56.  Minnesota Statutes 1996, section 169.444, 
209.14  subdivision 7, is amended to read: 
209.15     Subd. 7.  [EVIDENTIARY PRESUMPTIONS.] (a) There is a 
209.16  rebuttable presumption that signals described in section 169.442 
209.17  were in working order and operable when a violation of 
209.18  subdivision 1, 1a, 2, or 5 was allegedly committed, if the 
209.19  signals of the applicable school bus were inspected and visually 
209.20  found to be in working order and operable within 12 hours 
209.21  preceding the incident giving rise to the violation. 
209.22     (b) There is a rebuttable presumption that a motor vehicle 
209.23  outwardly equipped and identified as a school bus satisfies all 
209.24  of the identification and equipment requirements of section 
209.25  169.441 when a violation of subdivision 1, 1a, 2, or 5 was 
209.26  allegedly committed, if the applicable school bus bears a 
209.27  current inspection certificate issued under section 169.451. 
209.28     Sec. 57.  Minnesota Statutes 1996, section 169.447, 
209.29  subdivision 6, is amended to read: 
209.30     Subd. 6.  [OVERHEAD BOOK RACKS; STORAGE 
209.31  COMPARTMENTS.] Types A, B, C, and D School buses may be equipped 
209.32  with padded, permanent overhead book racks that do not hang over 
209.33  the center aisle of the bus.  School buses manufactured after 
209.34  January 1, 1998, may also be equipped with interior overhead 
209.35  storage compartments provided they meet the requirements of the 
209.36  1995 "National Standards for School Buses and School Bus 
210.1   Operations." 
210.2      Sec. 58.  Minnesota Statutes 1996, section 169.4501, 
210.3   subdivision 1, is amended to read: 
210.4      Subdivision 1.  [NATIONAL STANDARDS ADOPTED.] Except as 
210.5   provided in sections 169.4502 and 169.4503, the construction, 
210.6   design, equipment, and color of types A, B, C, and D school 
210.7   buses used for the transportation of school children shall meet 
210.8   the requirements of the "bus chassis standards" and "bus body 
210.9   standards" in the 1990 1995 revised edition of the "National 
210.10  Standards for School Buses and School Bus Operations" adopted by 
210.11  the Eleventh Twelfth National Conference on School 
210.12  Transportation and published by the National Safety Council.  
210.13  Except as provided in section 169.4504, the construction, 
210.14  design, and equipment of types A, B, C, and D school buses used 
210.15  for the transportation of students with disabilities also shall 
210.16  meet the requirements of the "specially equipped school bus 
210.17  standards" in the 1990 1995 National Standards for School Buses 
210.18  and School Bus Operations.  The "bus chassis standards," "bus 
210.19  body standards," and "specially equipped school bus standards" 
210.20  sections of the 1990 1995 revised edition of the "National 
210.21  Standards for School Buses and School Bus Operations" are 
210.22  incorporated by reference in this chapter. 
210.23     Sec. 59.  Minnesota Statutes 1996, section 169.4501, 
210.24  subdivision 2, is amended to read: 
210.25     Subd. 2.  [APPLICABILITY.] (a) The standards adopted in 
210.26  this section and sections 169.4502 and 169.4503, govern the 
210.27  construction, design, equipment, and color of school buses used 
210.28  for the transportation of school children, when owned and 
210.29  operated by a school or privately owned and operated under a 
210.30  contract with a school, and these standards must be made a part 
210.31  of that contract by reference.  Each school, its officers and 
210.32  employees, and each person employed under the contract is 
210.33  subject to these standards. 
210.34     (b) The standards apply to school buses manufactured after 
210.35  December 31, 1994 1997.  Buses complying with these standards 
210.36  when manufactured need not comply with standards established 
211.1   later except as specifically provided for by law. 
211.2      (c) A school bus manufactured on or before December 31, 
211.3   1994 1997, must conform to the Minnesota standards in effect on 
211.4   the date the vehicle was manufactured except as specifically 
211.5   provided for in law. 
211.6      (d) A new bus body may be remounted on a used chassis 
211.7   provided that the remounted vehicle meets state and federal 
211.8   standards for new buses which are current at the time of the 
211.9   remounting.  Permission must be obtained from the commissioner 
211.10  of public safety before the remounting is done.  A used bus body 
211.11  may not be remounted on a new or used chassis. 
211.12     Sec. 60.  Minnesota Statutes 1996, section 169.4502, 
211.13  subdivision 2, is amended to read: 
211.14     Subd. 2.  [BRAKES.] The braking system must include an 
211.15  emergency brake.  The braking system must meet federal motor 
211.16  vehicle safety standards in effect at the time of manufacture.  
211.17  All buses manufactured with air brakes after January 1, 1995, 
211.18  shall have automatic slack adjusters. 
211.19     Sec. 61.  Minnesota Statutes 1996, section 169.4502, 
211.20  subdivision 7, is amended to read: 
211.21     Subd. 7.  [EXHAUST SYSTEM.] The tailpipe must: 
211.22     (1) extend to but not more than one inch beyond the bumper 
211.23  and be mounted outside of the chassis frame rail; or 
211.24     (2) extend to but not more than one inch two inches beyond 
211.25  the left side of the bus, behind the driver's compartment.  A 
211.26  type A bus and a type B bus with a gross vehicle weight rating 
211.27  under 15,000 pounds, shall comply with the manufacturer's 
211.28  standard.  No exhaust pipe may exit beneath an emergency exit, 
211.29  or, on a type C or type D bus, under the fuel fill location.  No 
211.30  exhaust pipe shall be reduced in size beyond the muffler. 
211.31     Sec. 62.  Minnesota Statutes 1996, section 169.4502, 
211.32  subdivision 9, is amended to read: 
211.33     Subd. 9.  [FUEL TANK.] If mounted behind the rear wheels, 
211.34  the fuel tank on a vehicle constructed with a power lift unit 
211.35  shall be between the frame rails.  Fuel tanks for a type A bus 
211.36  and for a type B bus with a gross vehicle weight rating under 
212.1   15,000 pounds may must be manufacturer manufacturer's standard 
212.2   and must conform with federal motor vehicle safety standard 
212.3   number 301, Code of Federal Regulations, title 49, part 571. 
212.4      Sec. 63.  Minnesota Statutes 1996, section 169.4502, 
212.5   subdivision 11, is amended to read: 
212.6      Subd. 11.  [TIRES AND RIMS.] The use of multipiece rims or 
212.7   tube-type tires is permitted.  Radial and bias ply tires shall 
212.8   not be used on the same axle.  Front tire tread depth shall not 
212.9   be less than 4/32 inch in any major tire tread groove. Rear tire 
212.10  tread shall not be less than 2/32 inch.  Tires must be measured 
212.11  in three locations around the tire, in two adjoining grooves.  
212.12  No recapped tires shall be used on the front wheels.  Recapped 
212.13  tires are permitted on the rear wheels. 
212.14     Sec. 64.  Minnesota Statutes 1996, section 169.4502, is 
212.15  amended by adding a subdivision to read: 
212.16     Subd. 13.  [AIR CLEANER.] The air intake system for diesel 
212.17  buses may have an air cleaner restriction indicator installed. 
212.18     Sec. 65.  Minnesota Statutes 1996, section 169.4502, is 
212.19  amended by adding a subdivision to read: 
212.20     Subd. 14.  [CLUTCH.] A starter interlock may be installed 
212.21  to prevent actuation of the starter if the clutch is not 
212.22  depressed. 
212.23     Sec. 66.  Minnesota Statutes 1996, section 169.4502, is 
212.24  amended by adding a subdivision to read: 
212.25     Subd. 15.  [OIL FILTER.] An oil filtration system may be 
212.26  used in lieu of an oil filter. 
212.27     Sec. 67.  Minnesota Statutes 1996, section 169.4503, 
212.28  subdivision 1, is amended to read: 
212.29     Subdivision 1.  [RELATION TO NATIONAL STANDARDS.] The bus 
212.30  body standards contained in this section are required in 
212.31  addition to those required by sections 169.450 169.4501 and 
212.32  169.4502.  When a Minnesota standard contained in this section 
212.33  conflicts with a national standard adopted in section 169.450 
212.34  169.4501, the Minnesota standard contained in this section is 
212.35  controlling. 
212.36     Sec. 68.  Minnesota Statutes 1996, section 169.4503, 
213.1   subdivision 2, is amended to read: 
213.2      Subd. 2.  [BACKUP WARNING ALARM.] An automatic audible 
213.3   backup alarm may be installed.  A spring-loaded button in the 
213.4   driver's compartment that will temporarily disable the backup 
213.5   alarm is allowed for usage in school bus overnight parking lots 
213.6   and repair facilities. 
213.7      Sec. 69.  Minnesota Statutes 1996, section 169.4503, 
213.8   subdivision 10, is amended to read: 
213.9      Subd. 10.  [EMERGENCY EQUIPMENT; FIRE EXTINGUISHERS.] The 
213.10  fire extinguisher must have at least a 10BC rating The bus must 
213.11  be equipped with at least one UL-approved pressurized, dry 
213.12  chemical fire extinguisher with a total rating of 2A10BC or 
213.13  greater. 
213.14     Sec. 70.  Minnesota Statutes 1996, section 169.4503, 
213.15  subdivision 13, is amended to read: 
213.16     Subd. 13.  [IDENTIFICATION.] (a) Each bus shall, in the 
213.17  beltline, identify the school district serviced, or company 
213.18  name, or owner of the bus.  Numbers necessary for identification 
213.19  must appear on the sides and rear of the bus.  Symbols or 
213.20  letters may be used on the outside of the bus near the entrance 
213.21  door for student identification.  A manufacturer's nameplate or 
213.22  logo may be placed on the side of the bus near the entrance door 
213.23  and on the rear. 
213.24     (b) Effective December 31, 1994, all buses sold must 
213.25  display lettering "Unlawful to pass when red lights are 
213.26  flashing" on the rear of the bus.  The lettering shall be in 
213.27  two-inch black letters on school bus yellow background.  This 
213.28  message shall be displayed directly below the upper window of 
213.29  the rear door.  On rear engine buses, it shall be centered at 
213.30  approximately the same location.  Only signs and lettering 
213.31  approved or required by state law may be displayed. 
213.32     Sec. 71.  Minnesota Statutes 1996, section 169.4503, 
213.33  subdivision 14, is amended to read: 
213.34     Subd. 14.  [INSULATION.] (a) Ceilings and wall shall be 
213.35  insulated to a minimum of one and one-half inch fiberglass and 
213.36  installed so the insulation does not compact or sag.  Floor 
214.1   insulation must be nominal 19/32 inches thick plywood, or a 
214.2   material of equal or greater strength and insulation R value 
214.3   that equals or exceeds properties of exterior-type softwood 
214.4   plywood, C-D grade as specified in standard issued by the United 
214.5   States Department of Commerce.  Type A and B A-II buses with a 
214.6   gross vehicle weight rating under 15,000 pounds must have a 
214.7   minimum of one-half inch plywood.  All exposed edges on plywood 
214.8   shall be sealed.  Every school bus shall be constructed so that 
214.9   the noise level taken at the ear of the occupant nearest to the 
214.10  primary vehicle noise source shall not exceed 85 dba when tested 
214.11  according to procedures in the 1990 1995 National Standards for 
214.12  School Buses and School Bus Operations. 
214.13     (b) The underside of metal floor may be undercoated with 
214.14  polyurethane floor insulation, foamed in place.  The floor 
214.15  insulation must be combustion resistant.  The authorization in 
214.16  this paragraph does not replace the plywood requirement. 
214.17     Sec. 72.  Minnesota Statutes 1996, section 169.4503, 
214.18  subdivision 17, is amended to read: 
214.19     Subd. 17.  [MIRRORS.] A type B bus with a gross vehicle 
214.20  weight rating less than 15,000 pounds shall have a minimum of 
214.21  six-inch by 16-inch mirror.  A type B bus with a gross vehicle 
214.22  weight rating over 15,000 pounds shall have a minimum of a 
214.23  six-inch by 30-inch mirror.  After January 1, 1995, all school 
214.24  buses must be equipped with a minimum of two crossover mirrors, 
214.25  mounted to the left and right sides of the bus. 
214.26     Sec. 73.  Minnesota Statutes 1996, section 169.4503, 
214.27  subdivision 19, is amended to read: 
214.28     Subd. 19.  [RUB RAILS.] There shall be one rub rail at the 
214.29  base of the skirt of the bus on all type A, excluding van 
214.30  conversions, B, C, and D buses. 
214.31     Sec. 74.  Minnesota Statutes 1996, section 169.4503, 
214.32  subdivision 23, is amended to read: 
214.33     Subd. 23.  [WINDOWS.] Windshield, entrance, and rear 
214.34  emergency exit doors must be of approved safety glass.  
214.35  Laminated or tempered glass (AS-2 or AS-3) is permitted in all 
214.36  other windows.  All glass shall be federally approved and marked 
215.1   as provided in section 169.74.  The windshield may be of uniform 
215.2   tint throughout or may have a horizontal gradient band starting 
215.3   slightly above the line of vision and gradually decreasing in 
215.4   light transmission to 20 percent or less at the top of the 
215.5   windshield.  The use of tinted glass, as approved by section 
215.6   169.71, is permitted on side windows and rear windows except for 
215.7   the entrance door, the first window behind the service door, and 
215.8   the window to the left of the driver.  The window to the left of 
215.9   the driver, the upper service door windows, and the window 
215.10  immediately behind the entrance door must be thermal glass.  The 
215.11  window to the left of the driver for type A and B buses with a 
215.12  gross vehicle weight rating under 15,000 pounds need not be 
215.13  thermal glass. 
215.14     Sec. 75.  Minnesota Statutes 1996, section 169.4503, 
215.15  subdivision 24, is amended to read: 
215.16     Subd. 24.  [WIRING.] If not protected by a grommet, wire 
215.17  that passes through holes shall be encased in an 
215.18  abrasive-resistant protective covering.  If a master cutoff 
215.19  switch is used, it shall not be wired as to kill power to the 
215.20  electric brake system. 
215.21     Sec. 76.  Minnesota Statutes 1996, section 169.4503, is 
215.22  amended by adding a subdivision to read: 
215.23     Subd. 25.  [DRIVER COMPARTMENT.] The driver's seat must be 
215.24  a high-back seat. 
215.25     Sec. 77.  Minnesota Statutes 1996, section 169.4504, 
215.26  subdivision 1, is amended to read: 
215.27     Subdivision 1.  [RELATION TO NATIONAL STANDARDS.] The 
215.28  specially equipped school bus standards contained in this 
215.29  section are required in addition to those required by section 
215.30  169.450 169.4501.  When a Minnesota standard contained in this 
215.31  section conflicts with a national standard adopted in 
215.32  section 169.450 169.4501, the Minnesota standard contained in 
215.33  this section is controlling. 
215.34     Sec. 78.  Minnesota Statutes 1996, section 169.4504, is 
215.35  amended by adding a subdivision to read: 
215.36     Subd. 6.  [SECUREMENT AND RESTRAINT SYSTEM.] The securement 
216.1   and restraint system must be located and installed so that when 
216.2   an occupied wheelchair or other mobility aid is secured, the 
216.3   installation meets the requirements of the applicable federal 
216.4   motor vehicle safety standard. 
216.5      Sec. 79.  Minnesota Statutes 1996, section 169.452, is 
216.6   amended to read: 
216.7      169.452 [ACCIDENT AND SERIOUS INCIDENT REPORTING.] 
216.8      The department of public safety shall develop uniform 
216.9   definitions of a school bus accident, an incident of serious 
216.10  misconduct, and an incident that results in personal injury or 
216.11  death.  The department shall determine what type of information 
216.12  on school bus accidents and incidents, including criminal 
216.13  conduct, and bus driver dismissals for cause should be collected 
216.14  and develop a uniform accident and incident reporting form to 
216.15  collect those data, including data relating to type III 
216.16  vehicles, statewide.  In addition to the form, the department 
216.17  shall have an alternative method of reporting that allows school 
216.18  districts to use computer technology to provide the required 
216.19  information.  School districts selected by the commissioner 
216.20  shall report the information required by the department using 
216.21  either format.  A school district must not be charged for 
216.22  reporting forms or reporting procedures under this section.  
216.23  Data collected under this section shall be analyzed to help 
216.24  develop accident, crime, and misconduct prevention programs.  
216.25  This section is not subject to chapter 14. 
216.26     Sec. 80.  Minnesota Statutes 1996, section 171.321, 
216.27  subdivision 3, is amended to read: 
216.28     Subd. 3.  [STUDY OF APPLICANT.] (a) Before issuing or 
216.29  renewing a school bus endorsement, the commissioner shall 
216.30  conduct a criminal and driver's license records check of the 
216.31  applicant.  The commissioner may also conduct the check at any 
216.32  time while a person is so licensed.  The check shall consist of 
216.33  a criminal records check of the state criminal records 
216.34  repository and a check of the driver's license records system.  
216.35  If the applicant has resided in Minnesota for less than five 
216.36  years, the check shall also include a criminal records check of 
217.1   information from the state law enforcement agencies in the 
217.2   states where the person resided during the five years before 
217.3   moving to Minnesota, and of the national criminal records 
217.4   repository including the criminal justice data communications 
217.5   network.  The applicant's failure to cooperate with the 
217.6   commissioner in conducting the records check is reasonable cause 
217.7   to deny an application or cancel a school bus endorsement.  The 
217.8   commissioner may not release the results of the records check to 
217.9   any person except the applicant. 
217.10     (b) The commissioner may issue to an otherwise qualified 
217.11  applicant a temporary school bus endorsement, effective for no 
217.12  more than 120 180 days, upon presentation of (1) an affidavit by 
217.13  the applicant that the applicant has not been convicted of a 
217.14  disqualifying offense and (2) a criminal history check from each 
217.15  state of residence for the previous five years.  The criminal 
217.16  history check may be conducted and prepared by any public or 
217.17  private source acceptable to the commissioner.  The commissioner 
217.18  may reissue the temporary endorsement if the National Criminal 
217.19  Records Repository check is timely submitted but not completed 
217.20  within the 180-day period. 
217.21     Sec. 81.  Minnesota Statutes 1996, section 171.3215, 
217.22  subdivision 4, is amended to read: 
217.23     Subd. 4.  [WAIVER OF PERMANENT CANCELLATION.] The 
217.24  commissioner of public safety or the commissioner's designee, in 
217.25  consultation with the school bus safety advisory committee 
217.26  division of driver and vehicle services, may waive the permanent 
217.27  cancellation requirement of section 171.3215 for a person 
217.28  convicted of a nonfelony violation of chapter 152 or a felony 
217.29  that is not a violent crime under section 609.152. 
217.30     Sec. 82.  Minnesota Statutes 1996, section 245.91, 
217.31  subdivision 2, is amended to read: 
217.32     Subd. 2.  [AGENCY.] "Agency" means the divisions, 
217.33  officials, or employees of the state departments of human 
217.34  services and, health, children, families, and learning, and of 
217.35  local school districts and designated county social service 
217.36  agencies as defined in section 256G.02, subdivision 7, that are 
218.1   engaged in monitoring, providing, or regulating services or 
218.2   treatment for mental illness, mental retardation or a related 
218.3   condition, chemical dependency, or emotional disturbance. 
218.4      Sec. 83.  [CLASS SIZE PROJECT.] 
218.5      A class size project is established in independent school 
218.6   district No. 12, Centennial.  The purpose of this project is to 
218.7   establish that significantly lower class size and 
218.8   instructor-to-learner ratios in a suburban community will result 
218.9   in measurable achievements for students, staff, and parents. 
218.10     Sec. 84.  [CONVEYANCE OF TRUST FUND LANDS; MCLEOD COUNTY.] 
218.11     Notwithstanding Special Laws 1858, chapter 21, as amended 
218.12  by Special Laws 1865, chapter 7; Minnesota Statutes 1866, 
218.13  chapter 35, title 1; Special Laws 1868, chapter 114; or any 
218.14  other law to the contrary, the McLeod county board of 
218.15  commissioners may transfer its existing authority to appoint the 
218.16  trustees of the Stevens Seminary to the Glencoe-Silver Lake 
218.17  school board.  The board may also transfer any other authority 
218.18  held by the board over the trustees to the school board. 
218.19     Sec. 85.  [EXEMPTION TO LABOR DAY SCHOOL START 
218.20  RESTRICTION.] 
218.21     Notwithstanding Minnesota Statutes, section 126.12, 
218.22  subdivision 1, for the 1998-1999 and 1999-2000 school years 
218.23  only, a school board may begin the elementary or secondary 
218.24  school year on the Wednesday, Thursday, or Friday prior to Labor 
218.25  Day. 
218.26     Subdivision 1.  [WAYZATA.] Notwithstanding Minnesota 
218.27  Statutes, section 126.12, subdivision 1, independent school 
218.28  district No. 284, Wayzata, may begin the 1997-1998 school year 
218.29  prior to Labor Day only by the number of days necessary to 
218.30  accommodate the transition into the new senior high school 
218.31  building. 
218.32     Subd. 2.  [CROOKSTON.] Notwithstanding Minnesota Statutes, 
218.33  section 126.12, subdivision 1, independent school district No. 
218.34  593, Crookston, may begin the 1997-1998 school year the 
218.35  Wednesday before Labor Day to accommodate the transition into 
218.36  the new high school and the renovated junior high school 
219.1   building. 
219.2      Subd. 3.  [NEW PRAGUE.] Notwithstanding Minnesota Statutes, 
219.3   section 126.12, subdivision 1, independent school district No. 
219.4   721, New Prague, may begin the 1997-1998 school year prior to 
219.5   Labor Day only by the number of days necessary to accommodate 
219.6   the district building and remodeling project. 
219.7      Subd. 4.  [LAKE PARK; AUDUBON.] Notwithstanding Minnesota 
219.8   Statutes, section 126.12, subdivision 1, for the 1997-1998 
219.9   school year, independent school district Nos. 24, Lake Park, and 
219.10  21, Audubon, may begin the elementary and secondary school year 
219.11  on August 25, 1997, in order for independent school district No. 
219.12  24, Lake Park, to accommodate its building renovation schedule 
219.13  at the end of that school year. 
219.14     Subd. 5.  [ISLE.] Notwithstanding Minnesota Statutes, 
219.15  section 126.12, subdivision 1, for the 1997-1998 school year, 
219.16  independent school district No. 473, Isle, may begin the 
219.17  elementary and secondary school year on August 18, 1997, in 
219.18  order for the school district to complete its conversion of an 
219.19  existing elementary school to a K-12 facility before the 
219.20  beginning of the 1998-1999 school year. 
219.21     Sec. 86.  [FUND TRANSFERS.] 
219.22     Subdivision 1.  [BELGRADE-BROOTEN-ELROSA.] Notwithstanding 
219.23  Minnesota Statutes, sections 121.912 and 121.9121, on June 30, 
219.24  1997, independent school district No. 2364, 
219.25  Belgrade-Brooten-Elrosa, may permanently transfer up to $250,000 
219.26  from its bus purchase account to its general fund unreserved 
219.27  balance. 
219.28     Subd. 2.  [FERGUS FALLS.] Notwithstanding Minnesota 
219.29  Statutes, sections 121.912, 121.9121, and 475.61, subdivision 4, 
219.30  on June 30, 1997, independent school district No. 544, Fergus 
219.31  Falls, may permanently transfer up to $202,000 from its debt 
219.32  redemption fund to its building construction fund without making 
219.33  a levy reduction. 
219.34     Subd. 3.  [FOSSTON.] Notwithstanding Minnesota Statutes, 
219.35  sections 121.912, 121.9121, and 475.61, subdivision 4, on or 
219.36  before June 30, 1997, independent school district No. 601, 
220.1   Fosston, may permanently transfer up to $105,000 from the debt 
220.2   redemption fund to its building construction fund without making 
220.3   a levy reduction. 
220.4      Subd. 4.  [HILL CITY.] Notwithstanding Minnesota Statutes, 
220.5   section 121.912 or 121.9121, before June 30, 1997, independent 
220.6   school district No. 2, Hill City, may permanently transfer up to 
220.7   $55,000 from its general fund to its debt redemption fund for 
220.8   the purpose of repaying the principal and any interest owed on 
220.9   its outstanding debt service loans.  Any amount transferred but 
220.10  not used to repay the debt service loans must be applied to the 
220.11  district's outstanding capital loan balance. 
220.12     Subd. 5.  [MEDFORD.] Notwithstanding Minnesota Statutes, 
220.13  sections 121.912 and 121.9121, independent school district No. 
220.14  763, Medford, may permanently transfer up to a total of $200,000 
220.15  by June 30, 1998, from reserve accounts in the general fund to 
220.16  the unreserved general fund.  The transfers may be made from the 
220.17  reserve for operating capital account. 
220.18     Sec. 87.  [INDEPENDENT SCHOOL DISTRICT NO. 4, MCGREGOR; 
220.19  LEVY.] 
220.20     Independent school district No. 4, McGregor, may levy, with 
220.21  the approval of the commissioner, to eliminate a deficit in the 
220.22  net unappropriated balance in the operating funds of the 
220.23  district, determined and adjusted and certified by the 
220.24  commissioner as of June 30, 1997.  This amount shall be reduced 
220.25  by referendum revenue authorized under Minnesota Statutes, 
220.26  section 124A.03, pursuant to a plan filed under Minnesota 
220.27  Statutes, section 121.917, and any other revenue made available 
220.28  for this purpose.  The total levy for all years it is made shall 
220.29  not exceed the amount of the deficit.  The proceeds of this levy 
220.30  or other available revenue shall only be used for cash flow 
220.31  requirements and shall not be used to supplement district 
220.32  revenue or income. 
220.33     Sec. 88.  [INSTRUCTIONAL DAY CLARIFICATION.] 
220.34     (a) This section applies to any school district employee 
220.35  who was scheduled to work on January 16, 1997, did not work on 
220.36  that day, and did not receive compensation for that day. 
221.1      (b) Notwithstanding any law to the contrary, a school 
221.2   district must either:  (1) allow any school district employee 
221.3   under paragraph (a) the opportunity to work on another day that 
221.4   the school district designates and must compensate the employee 
221.5   working on the designated day at the employee's normal rate of 
221.6   pay; or (2) compensate any school district employee under 
221.7   paragraph (a) for that day at the employee's normal rate of pay. 
221.8      Sec. 89.  [GRANTS TO IMPLEMENT CONSTRUCTIVE SCHOOL 
221.9   DISCIPLINE POLICIES.] 
221.10     Subdivision 1.  [POLICY.] The legislature acknowledges the 
221.11  importance of teaching students in a regular classroom setting 
221.12  where possible.  Students in an educational setting should 
221.13  expect to behave in a manner that is appropriate for learning.  
221.14  When students misbehave, school discipline policies should 
221.15  penalize students' misbehavior, with the ultimate goal of 
221.16  returning students to their regular classrooms.  Schools should 
221.17  involve parents in collaborative efforts to alter students' 
221.18  classroom misbehavior.  Schools and parents should find ways to 
221.19  ensure that students' misbehavior does not become chronic, 
221.20  necessitating long-term intervention and the need for special 
221.21  services. 
221.22     Subd. 2.  [ESTABLISHMENT.] A grant program for fiscal year 
221.23  1998 is established to develop, implement, and evaluate school 
221.24  discipline policies, consistent with the Pupil Fair Dismissal 
221.25  Act under Minnesota Statutes, sections 127.26 to 127.48.  
221.26  Discipline policies, developed under this section, should be 
221.27  designed to enable students to successfully return to the 
221.28  regular classroom setting after being disciplined for 
221.29  misbehavior.  Discipline policies should focus on early 
221.30  intervention strategies that limit the need to provide regular 
221.31  education students with additional special programs or services. 
221.32     Subd. 3.  [ELIGIBILITY.] An applicant for a grant must be a 
221.33  school site, a school district, a charter school, or a provider 
221.34  of an alternative education program.  To be eligible for a 
221.35  grant, the grant applicant must meet all of the following 
221.36  criteria: 
222.1      (1) develop a plan to establish a school site mediation 
222.2   board under Minnesota Statutes, sections 127.411 to 127.42, to 
222.3   mediate issues relating to district or school site codes of 
222.4   conduct that apply to students; 
222.5      (2) include in the code of conduct a plan to remove from 
222.6   the regular classroom setting those students who violate the 
222.7   code; 
222.8      (3) provide students who violate the code with an 
222.9   alternative education setting within the school or program site; 
222.10  and 
222.11     (4) make the alternative education setting a constructive 
222.12  experience by using instructional materials tied to educational 
222.13  standards, placing students in an alternative setting outside 
222.14  the normal school day, involving parents in effecting 
222.15  discipline, or developing intervention techniques such as time 
222.16  outs, among other alternatives. 
222.17     Subd. 4.  [APPLICATION PROCESS.] To obtain a grant to 
222.18  implement constructive school discipline policies, a grant 
222.19  applicant must submit an application to the commissioner of 
222.20  children, families, and learning in the form and manner the 
222.21  commissioner establishes.  The application must describe how the 
222.22  applicant will meet the eligibility criteria under subdivision 
222.23  3.  The commissioner may require the applicant to provide 
222.24  additional information. 
222.25     Subd. 5.  [GRANT AWARDS.] The commissioner may award up to 
222.26  ten grants of up to $50,000.  Grant recipients must be located 
222.27  throughout the state and have diverse experiences with student 
222.28  disciplinary matters.  The amount of the grant shall be based on 
222.29  the number of students the grant recipient anticipates will be 
222.30  disciplined and on the alternative education settings the grant 
222.31  recipient proposes to use.  Grant recipients must use the grant 
222.32  proceeds to accomplish the purposes of this section. 
222.33     Subd. 6.  [EVALUATION.] The commissioner shall evaluate the 
222.34  grant sites and selected control sites to determine the impact 
222.35  of the constructive discipline policy grant program on measures 
222.36  of student behavior and performance, including at least, student 
223.1   achievement and attendance, and the impact of the program on the 
223.2   school site, the student body, the classroom, and the school 
223.3   faculty.  The evaluation must also address the financial impact 
223.4   of the program on the district and the school site.  Upon 
223.5   implementing a student code of conduct consistent with this 
223.6   section, the grant recipient must cooperate in evaluating the 
223.7   impact of code policies.  As a part of the evaluation process, 
223.8   the grant recipient must document student and parent response to 
223.9   code policies over at least a three-year period.  The 
223.10  commissioner shall compile for the education committees of the 
223.11  legislature a progress report by February 1, 1999, and a final 
223.12  report by February 1, 2001, on the effectiveness and impact of 
223.13  discipline policies. 
223.14     Sec. 90.  [HIGH SCHOOL LEAGUE COMPENSATION PLAN.] 
223.15     The current total compensation plan for the executive 
223.16  director and for all other league employees shall be reviewed by 
223.17  the commissioner of employee relations.  In considering total 
223.18  compensation for league employees, the commissioner of employee 
223.19  relations shall compare league compensation to the compensation 
223.20  of other Minnesota state employees and school district 
223.21  employees, taking account of the knowledge, skills, 
223.22  responsibilities, and working conditions of the jobs. 
223.23     Sec. 91.  [MODEL STUDENT BILL OF RIGHTS AND 
223.24  RESPONSIBILITIES.] 
223.25     The commissioner of children, families, and learning shall 
223.26  maintain and make available to school boards a model student 
223.27  bill of rights and responsibilities.  The commissioner shall 
223.28  develop the model policy, in consultation with students involved 
223.29  in YMCA youth in government, Project 120, governor's scholars, 
223.30  the student council association, and other student groups. 
223.31     Sec. 92.  [STATE BOARD OF EDUCATION.] 
223.32     The state board of education shall amend its guidelines for 
223.33  approving experimental management systems to eliminate the 
223.34  requirement for renewal after initial approval of an 
223.35  experimental management arrangement. 
223.36     Sec. 93.  [CONSULTATION.] 
224.1      The commissioner of children, families, and learning shall 
224.2   consult with the Minnesota school boards association in 
224.3   preparing the model hazing policy. 
224.4      Sec. 94.  [TEACHER RETIREMENT.] 
224.5      (a) Notwithstanding Minnesota Statutes, section 354.41, 
224.6   subdivision 4, a person who is a member of the teacher 
224.7   retirement association and is employed by the Minnesota 
224.8   federation of teachers or its affiliated branches within the 
224.9   state or by the Minnesota education association on July 1, 1997, 
224.10  may remain a coordinated member. 
224.11     (b) Notwithstanding Minnesota Statutes, section 354.41, 
224.12  subdivision 5, payments of the applicable employee 
224.13  contributions, employer contributions, and additional employer 
224.14  contributions under Minnesota Statutes, section 354.42, 
224.15  subdivisions 2, 3, and 5, must be made in a lump sum to the 
224.16  association on or before June 30 of each fiscal year. 
224.17     Sec. 95.  [APPROPRIATIONS.] 
224.18     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
224.19  LEARNING.] The sums indicated in this section are appropriated 
224.20  from the general fund to the department of children, families, 
224.21  and learning for the fiscal years designated. 
224.22     Subd. 2.  [NONPROFIT COMMUNITY HEALTH AND PHYSICAL FITNESS 
224.23  CENTER.] For a grant to independent school district No. 99, 
224.24  Esko, to develop an operate a nonprofit community health and 
224.25  physical fitness center: 
224.26       $30,000     .....     1998
224.27     This appropriation is contingent upon the school district 
224.28  obtaining a $30,000 in-kind contribution of physical fitness 
224.29  equipment from a nonprofit health care provider that is made 
224.30  permanently available to the community health and physical 
224.31  fitness center. 
224.32     Subd. 3.  [MCGREGOR LEVY.] For a grant to independent 
224.33  school district No. 4, McGregor, to reduce a net operating fund 
224.34  deficit: 
224.35       $50,000     .....     1998
224.36     Subd. 4.  [CENTENNIAL CLASS SIZE PROJECT.] For a grant to 
225.1   independent school district No. 12, Centennial, for the class 
225.2   size project: 
225.3        $180,000     .....     1998 
225.4        $180,000     .....     1999 
225.5      Any balance remaining in the first year does not cancel but 
225.6   is available in the second year. 
225.7      Subd. 5.  [MINNESOTA INTERNATIONAL CENTER.] For a grant to 
225.8   the Minnesota International Center to encourage and foster 
225.9   contacts between Minnesota school children, their teachers, and 
225.10  people from other nations through international classroom 
225.11  connection: 
225.12         $160,000     .....     1998 
225.13     Subd. 6.  [AQUILA CEDAR MANOR COMMUNITY CENTER.] For a 
225.14  grant to independent school district No. 283, St. Louis Park, 
225.15  for the Aquila community together project: 
225.16       $50,000     .....     1998 
225.17     This appropriation must be matched from nonstate sources.  
225.18  This appropriation is available until June 30, 1999. 
225.19     Subd. 7.  [CONSTRUCTIVE SCHOOL DISCIPLINE GRANTS.] For 
225.20  constructive school discipline grants: 
225.21       $250,000     .....     1998
225.22     Grant recipients may expend grant proceeds over a 
225.23  three-year period.  Of this amount, $10,000 is for the 
225.24  evaluation. 
225.25     Subd. 8.  [LEARNING READINESS; HEAD START PROGRAMS.] For 
225.26  learning readiness programs and Head Start program: 
225.27       $20,000,000     .....     1998
225.28       $20,000,000     .....     1999
225.29     Of this amount, $10,000,00 shall be allocated to each 
225.30  program.  This appropriation shall be proportionally reduced if 
225.31  the revenue in any year under Minnesota Statutes 1996, section 
225.32  121.175, is less than the appropriation.  The commissioner may 
225.33  also use part of the appropriation to reimburse districts that 
225.34  can demonstrate it incurred excess costs in implementing 
225.35  Minnesota Statutes 1996, section 121.175. 
225.36     Sec. 96.  [REPEALER.] 
226.1      (a) Minnesota Statutes 1996, sections 120.105; 120.65; 
226.2   127.31, subdivision 6; 169.4502, subdivision 6; 169.4503, 
226.3   subdivisions 3, 8, 9, 11, 12, and 22; and 169.454, subdivision 
226.4   11, are repealed. 
226.5      (b) Minnesota Statutes 1996, section 128B.10, is repealed 
226.6   effective June 30, 1997. 
226.7      Sec. 97.  [EFFECTIVE DATE.] 
226.8      Sections 43 and 44 are effective 30 days after final 
226.9   enactment.  Section 1 applies to the 1997-1998 school year and 
226.10  thereafter.  Section 84 is effective the day following final 
226.11  enactment without local approval pursuant to Minnesota Statutes, 
226.12  section 645.021, subdivision 2.  Sections 82, 85, and 86 are 
226.13  effective the day following final enactment.  Section 41 is 
226.14  effective January 1, 1998. 
226.15                             ARTICLE 8
226.16                             LIBRARIES
226.17     Section 1.  Minnesota Statutes 1996, section 134.155, 
226.18  subdivision 2, is amended to read: 
226.19     Subd. 2.  [GRANTS.] The commissioner of children, families, 
226.20  and learning, in consultation with the multicultural advisory 
226.21  committee established in section 126.82, shall award grants for 
226.22  professional development programs to recruit and educate people 
226.23  of color in the field of library science or information 
226.24  management.  Grant applicants must be a public library 
226.25  jurisdiction with a growing minority population working in 
226.26  collaboration with an accredited institution of higher education 
226.27  with a library education program in the state of Minnesota. 
226.28     Sec. 2.  Minnesota Statutes 1996, section 134.155, 
226.29  subdivision 3, is amended to read: 
226.30     Subd. 3.  [PROGRAM REQUIREMENTS.] (a) A grant recipient 
226.31  shall recruit people of color to be library staff in public 
226.32  libraries and provide support in linking program participants 
226.33  with jobs in the recipient's library jurisdiction. 
226.34     (b) A grant recipient shall establish an advisory council 
226.35  composed of representatives of communities of color. 
226.36     (c) A grant recipient, with the assistance of the advisory 
227.1   council, may recruit high school students, undergraduate 
227.2   students or other persons; support them through the higher 
227.3   education application and admission process; advise them while 
227.4   enrolled; and link them with support resources in the college or 
227.5   university and the community.  
227.6      (d) A grant recipient shall award stipends to people of 
227.7   color enrolled in a library education program to help cover the 
227.8   costs of tuition, student fees, supplies, and books.  Stipend 
227.9   awards must be based upon a student's financial need and 
227.10  students must apply for any additional financial aid for which 
227.11  they are eligible to supplement this program.  No more than ten 
227.12  percent of the grant may be used for costs of administering the 
227.13  program.  Students must agree to work in the grantee library 
227.14  jurisdiction for at least two years after graduation if the 
227.15  student acquires a master's degree and at least three years 
227.16  after graduation if the student acquires both a bachelor's and a 
227.17  master's degree while participating in the program.  If no 
227.18  full-time position is available in the library jurisdiction, the 
227.19  student may fulfill the work requirement in another Minnesota 
227.20  public library.  
227.21     (e) The commissioner of children, families, and learning 
227.22  shall consider the following criteria in awarding grants:  
227.23     (1) whether the program is likely to increase the 
227.24  recruitment and retention of persons of color in librarianship; 
227.25     (2) whether grant recipients will establish or have a 
227.26  mentoring program for persons of color; and 
227.27     (3) whether grant recipients will provide a library 
227.28  internship for persons of color while participating in this 
227.29  program.  
227.30     Sec. 3.  Minnesota Statutes 1996, section 134.34, 
227.31  subdivision 4, is amended to read: 
227.32     Subd. 4.  A regional library basic system support grant 
227.33  shall not be made to a regional public library system for a 
227.34  participating city or county which decreases the dollar amount 
227.35  provided for support for operating purposes of public library 
227.36  service below the amount provided by it for the second preceding 
228.1   year.  This subdivision shall not apply to participating cities 
228.2   or counties where the adjusted net tax capacity of that city or 
228.3   county has decreased, if the dollar amount of the reduction in 
228.4   support is not greater than the dollar amount by which support 
228.5   would be decreased if the reduction in support were made in 
228.6   direct proportion to the decrease in adjusted net tax capacity. 
228.7      Sec. 4.  [LIBRARY PILOT PROJECT.] 
228.8      Subdivision 1.  [ESTABLISHMENT.] Notwithstanding Minnesota 
228.9   Statutes, chapter 134, and subject to approvals in subdivision 
228.10  2, a public library may operate as a pilot project jointly with 
228.11  the school library at Nashwauk-Keewatin High School, located in 
228.12  the city of Nashwauk.  The public library is established to 
228.13  serve persons within the boundaries of independent school 
228.14  district No. 319, except the city of Keewatin. 
228.15     Subd. 2.  [APPROVALS.] Operation of the public library is 
228.16  contingent upon a resolution approved by the governing bodies of 
228.17  cities, towns, and unorganized townships within the geographical 
228.18  boundaries of independent school district No. 319, except for 
228.19  the city of Keewatin.  For the purposes of this subdivision, the 
228.20  Itasca county board is designated as the governing body for the 
228.21  unorganized townships. 
228.22     Subd. 3.  [BOARD; APPOINTMENTS.] The resolution in 
228.23  subdivision 2 shall provide for a library board of five members 
228.24  as follows:  two members appointed by the school board of 
228.25  independent school district No. 319, one member appointed by 
228.26  each town board located within independent school district No. 
228.27  319 boundaries, one member appointed by the council of the city 
228.28  of Nashwauk, and one member appointed by the Itasca county board 
228.29  to represent the unorganized towns within the school district 
228.30  territory. 
228.31     Subd. 4.  [BOARD TERMS; COMPENSATION.] The library board 
228.32  members shall serve for the two-year pilot study.  An appointing 
228.33  authority may remove for misconduct or neglect any member it has 
228.34  appointed to the board and may replace that member by 
228.35  appointment.  Board members shall receive no compensation for 
228.36  their services but may be reimbursed for actual and necessary 
229.1   travel expenses incurred in the discharge of library board 
229.2   duties and activities. 
229.3      Subd. 5.  [FUNDING.] For taxes payable in 1998 and 1999 
229.4   only, the library board may levy a tax in an amount up to 
229.5   $25,000 annually on property located within the boundaries of 
229.6   independent school district No. 319, except the city of 
229.7   Keewatin.  The Itasca county auditor shall collect the tax and 
229.8   distribute it to the library board.  The money may be used for 
229.9   library staff and for the purchase of library materials, 
229.10  including computer software.  The levy must also fund the amount 
229.11  necessary to receive bookmobile services from the Arrowhead 
229.12  regional library system.  For taxes payable in 1998 and 1999 
229.13  only, the county may not levy under Minnesota Statutes, section 
229.14  134.07, for the areas described in this section. 
229.15     Subd. 6.  [BUILDING.] The school district shall provide the 
229.16  physical space and costs associated with operating the library 
229.17  including, but not limited to, heat, light, telephone service, 
229.18  and maintenance. 
229.19     Subd. 7.  [ORGANIZATION.] Immediately after appointment, 
229.20  the library board shall organize by electing one of its number 
229.21  as president and one as secretary, and it may appoint other 
229.22  officers it finds necessary. 
229.23     Subd. 8.  [DUTIES.] The library board shall adopt bylaws 
229.24  and regulations for the library and for the conduct of its 
229.25  business as may be expedient and conformable to law.  It shall 
229.26  have exclusive control of the expenditure of all money collected 
229.27  for it.  The library board shall appoint a qualified library 
229.28  director and other staff, establish the compensation of 
229.29  employees, and remove any of them for cause.  The library board 
229.30  may contract with the school board, the regional library board, 
229.31  or the city in which the library is located to provide 
229.32  personnel, fiscal, or administrative services.  The contract 
229.33  shall state the personnel, fiscal, and administrative services 
229.34  and payments to be provided by each party. 
229.35     Subd. 9.  [CRITERIA.] The library shall meet all 
229.36  requirements in statutes and rules applicable to public 
230.1   libraries and school media centers.  A media supervisor licensed 
230.2   by the board of teaching may be the director of the library.  
230.3   Public parking, restrooms, drinking water, and other necessities 
230.4   shall be easily accessible to library patrons. 
230.5      Sec. 5.  [APPROPRIATIONS.] 
230.6      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
230.7   LEARNING.] The sums indicated in this section are appropriated 
230.8   from the general fund to the department of children, families, 
230.9   and learning for the fiscal years designated.  
230.10     Subd. 2.  [BASIC SUPPORT GRANTS.] For basic support grants 
230.11  according to Minnesota Statutes, sections 134.32 to 134.35: 
230.12       $7,819,000     .....     1998 
230.13       $7,819,000     .....     1999 
230.14     The 1998 appropriation includes $781,000 for 1997 and 
230.15  $7,038,000 for 1998.  
230.16     The 1999 appropriation includes $781,000 for 1998 and 
230.17  $7,038,000 for 1999.  
230.18     Subd. 3.  [LIBRARIANS OF COLOR.] For the librarians of 
230.19  color program according to Minnesota Statutes, section 134.155: 
230.20       $55,000     .....     1998
230.21       $55,000     .....     1999
230.22     Any balance in the first year does not cancel but is 
230.23  available in the second year. 
230.24     Subd. 4.  [CHILDREN'S LIBRARY SERVICES GRANTS.] For grants 
230.25  for collaborative programs to strengthen library services to 
230.26  children, young people, and their families: 
230.27       $150,000     .....     1998
230.28       $150,000     .....     1999
230.29     Any balance in the first year does not cancel but is 
230.30  available in the second year. 
230.31     Subd. 5.  [MULTICOUNTY, MULTITYPE LIBRARY SYSTEMS.] For 
230.32  grants according to Minnesota Statutes, sections 134.353 and 
230.33  134.354, to multicounty, multitype library systems: 
230.34       $527,000     .....     1998 
230.35       $527,000     .....     1999 
230.36     The 1998 appropriation includes $52,000 for 1997 and 
231.1   $475,000 for 1998.  
231.2      The 1999 appropriation includes $52,000 for 1998 and 
231.3   $475,000 for 1999. 
231.4      Subd. 6.  [REGIONAL PUBLIC LIBRARY SYSTEMS.] For grants to 
231.5   regional public library systems for outreach and direct library 
231.6   services to children and families: 
231.7        $500,000     .....     1998
231.8        $500,000     .....     1999
231.9      In each year $115,000 is for the Metropolitan Library 
231.10  Services Agency and the remainder is for $35,000 to each of the 
231.11  other 11 regional public library systems. 
231.12     Sec. 6.  [REPEALER.] 
231.13     Minnesota Statutes 1996, section 134.34, subdivision 4a, is 
231.14  repealed. 
231.15     Sec. 7.  [EFFECTIVE DATE; LOCAL APPROVAL.] 
231.16     Section 4 is effective in the territory located within 
231.17  independent school district No. 319, except Keewatin, the day 
231.18  after compliance with Minnesota Statutes, section 645.021, 
231.19  subdivision 3, by the last of all the governing bodies for the 
231.20  cities, towns, and unorganized townships.  For the unorganized 
231.21  townships, the governing body is the Itasca county board. 
231.22                             ARTICLE 9
231.23                             TECHNOLOGY
231.24     Section 1.  Minnesota Statutes 1996, section 121.932, is 
231.25  amended by adding a subdivision to read: 
231.26     Subd. 7.  [ESTABLISHMENT.] (a) The commissioner of 
231.27  children, families, and learning shall establish a program to 
231.28  provide statewide licenses to commercial electronic databases of 
231.29  periodicals, encyclopedias, and associated reference materials 
231.30  for school media centers and public libraries.  The commissioner 
231.31  shall solicit proposals for access licenses to commercial 
231.32  vendors of the databases.  Responses to those proposals shall be 
231.33  evaluated by staff of the office of library development and 
231.34  services, in the department of children, families, and learning, 
231.35  Minitex staff, and a representative panel of school media 
231.36  specialists and public librarians. 
232.1      (b) Access to the selected databases shall be made 
232.2   available to a school media center or a public library as 
232.3   defined in Minnesota Statutes, section 134.001, subdivision 2.  
232.4   With appropriate authentication, any user of a library may have 
232.5   access to the databases from a remote site. 
232.6      (c) The commissioner shall charge fees sufficient to 
232.7   recover the costs of the licenses.  The fees shall be deposited 
232.8   in the general fund and are appropriated to the commissioner for 
232.9   the purposes of this subdivision. 
232.10     Sec. 2.  [121.97] [LEARNING ACADEMY.] 
232.11     Subdivision 1.  [ESTABLISHMENT.] The commissioner shall 
232.12  develop standards and requirements and certify courses for a 
232.13  Minnesota learning academy to provide training opportunities for 
232.14  educators, administrators, and librarians in the use of 
232.15  technology and its integration into learning activities.  Only 
232.16  certified classes may be used to fulfill the requirements of the 
232.17  learning academy. 
232.18     Subd. 2.  [DEVELOPMENT OF THE LEARNING ACADEMY.] To develop 
232.19  the learning academy, the commissioner shall consult with 
232.20  representatives of public schools, higher education, teacher 
232.21  organizations, students, private business, state agencies, 
232.22  libraries, and political subdivisions to do the following: 
232.23     (1) set measures for teacher training opportunities on 
232.24  technical skills and technology integration skills; 
232.25     (2) identify and establish outcomes for a series of 
232.26  training courses that provide for technical skills and 
232.27  technology classroom integration skills; 
232.28     (3) identify existing education organizations, public, or 
232.29  private institutions to develop and provide training courses; 
232.30     (4) evaluate prerequisites for the classroom integration 
232.31  skills course; 
232.32     (5) certify or decertify classes and courses for inclusion 
232.33  in or exclusion from the learning academy; and 
232.34     (6) coordinate and make certified classes and courses 
232.35  available to eligible participants. 
232.36     Sec. 3.  Minnesota Statutes 1996, section 124.91, 
233.1   subdivision 5, is amended to read: 
233.2      Subd. 5.  [INTERACTIVE TELEVISION.] (a) A school district 
233.3   with its central administrative office located within economic 
233.4   development region one, two, three, four, five, six, seven, 
233.5   eight, nine, and ten may apply to the commissioner of children, 
233.6   families, and learning for ITV revenue up to the greater of .5 
233.7   percent of the adjusted net tax capacity of the district or 
233.8   $25,000 for the construction, maintenance, and lease costs of an 
233.9   interactive television system for instructional purposes.  The 
233.10  approval by the commissioner of children, families, and learning 
233.11  and the application procedures set forth in subdivision 1 shall 
233.12  apply to the revenue in this subdivision.  In granting the 
233.13  approval, the commissioner must consider whether the district is 
233.14  maximizing efficiency through peak use and off-peak use pricing 
233.15  structures. 
233.16     (b) To obtain ITV revenue, a district may levy an amount 
233.17  not to exceed the district's ITV revenue times the lesser of one 
233.18  or the ratio of: 
233.19     (1) the quotient derived by dividing the adjusted net tax 
233.20  capacity of the district for the year before the year the levy 
233.21  is certified by the actual pupil units in the district for the 
233.22  year to which the levy is attributable; to 
233.23     (2) 100 percent of the equalizing factor as defined in 
233.24  section 124A.02, subdivision 8, for the year to which the levy 
233.25  is attributable. 
233.26     (c) A district's ITV aid is the difference between its ITV 
233.27  revenue and the ITV levy. 
233.28     (d) The revenue in the first year after reorganization for 
233.29  a district that has reorganized under section 122.22, 122.23, or 
233.30  122.241 to 122.247 shall be the greater of: 
233.31     (1) the revenue computed for the reorganized district under 
233.32  paragraph (a), or 
233.33     (2)(i) for two districts that reorganized, 75 percent of 
233.34  the revenue computed as if the districts involved in the 
233.35  reorganization were separate, or 
233.36     (ii) for three or more districts that reorganized, 50 
234.1   percent of the revenue computed as if the districts involved in 
234.2   the reorganization were separate. 
234.3      (e) The revenue in paragraph (d) is increased by the 
234.4   difference between the initial revenue and ITV lease costs for 
234.5   leases that had been entered into by the preexisting districts 
234.6   on the effective date of the consolidation or combination and 
234.7   with a term not exceeding ten years.  This increased revenue is 
234.8   only available for the remaining term of the lease.  However, in 
234.9   no case shall the revenue exceed the amount available had the 
234.10  preexisting districts received revenue separately. 
234.11     (f) Effective for fiscal year 2000, the revenue under this 
234.12  section shall be 75 percent of the amount determined in 
234.13  paragraph (a); for fiscal year 2001, 50 percent of the amount in 
234.14  paragraph (a); and for fiscal year 2002, 25 percent of the 
234.15  amount in paragraph (a). 
234.16     (g) This section expires effective for revenue for fiscal 
234.17  year 2003, or when leases in existence on the effective date of 
234.18  this act expire. 
234.19     Sec. 4.  Laws 1995, First Special Session chapter 3, 
234.20  article 12, section 7, subdivision 1, is amended to read: 
234.21     Subdivision 1.  [STATE COUNCIL MEMBERSHIP.] The membership 
234.22  of the Minnesota education telecommunications council 
234.23  established in Laws 1993, First Special Session chapter 2, is 
234.24  expanded to include representatives of elementary and secondary 
234.25  education.  The membership shall consist of three 
234.26  representatives from the University of Minnesota; three 
234.27  representatives of the board of trustees for Minnesota state 
234.28  colleges and universities; one representative of the higher 
234.29  education services offices; one representative appointed by the 
234.30  private college council; eight representatives selected by the 
234.31  commissioner of education children, families, and learning, at 
234.32  least one of which must come from each of the six higher 
234.33  education telecommunication regions; a representative from the 
234.34  information policy office; one member two members each from the 
234.35  senate and the house of representatives selected by the 
234.36  subcommittee on committees of the committee on rules and 
235.1   administration of the senate and the speaker of the house, one 
235.2   member from each body must be a member of the minority party; 
235.3   and three representatives of libraries, one representing 
235.4   regional public libraries, one representing multitype libraries, 
235.5   and one representing community libraries, selected by the 
235.6   governor.  The council shall: 
235.7      (1) develop a statewide vision and plans for the use of 
235.8   distance learning technologies and provide leadership in 
235.9   implementing the use of such technologies; 
235.10     (2) recommend to the commissioner and the legislature by 
235.11  December 15, 1996, a plan for long-term governance and a 
235.12  proposed structure for statewide and regional 
235.13  telecommunications; 
235.14     (3) recommend educational policy relating to 
235.15  telecommunications; 
235.16     (4) determine priorities for use; 
235.17     (5) oversee coordination of networks for post-secondary 
235.18  campuses, K-12 education, and regional and community libraries; 
235.19     (6) review application for telecommunications access grants 
235.20  under Minnesota Statutes, section 124C.74 and recommend to the 
235.21  department grants for funding; and 
235.22     (7) determine priorities for grant funding proposals. 
235.23     The council shall consult with representatives of the 
235.24  telecommunication industry in implementing this section.  
235.25     Sec. 5.  [ELECTRONIC CURRICULUM RESOURCE.] 
235.26     Subdivision 1.  [ELECTRONIC CURRICULUM RESOURCE.] This 
235.27  program is established to expand and complete the electronic 
235.28  curriculum library pilot established under Laws 1996, chapter 
235.29  412, article 12, section 15, subdivision 4, paragraph (a).  The 
235.30  expansion of this pilot shall include a centralized repository 
235.31  of curriculum units that serve as a resource for teachers.  The 
235.32  curriculum units contained within the library must be aligned 
235.33  with the content standards of the graduation rule.  
235.34  Post-secondary institutions may apply for the electronic 
235.35  curriculum resource project if the institutions make curriculum 
235.36  available through the repository.  The department will set 
236.1   standards to assist in alignment of individualized learning 
236.2   plans systems to the centralized repository.  The commissioner 
236.3   may require a match of local and private funds as part of the 
236.4   application process. 
236.5      Subd. 2.  [GOPHER BIOLOGY SHARE WARE.] (a) The goal of this 
236.6   project is to make multimedia instructional management software 
236.7   available at no cost to both kindergarten through grade 12 and 
236.8   higher education faculty throughout the state, to train faculty 
236.9   and technology support staff in kindergarten through grade 12 
236.10  districts both on how to use the software and database, as well 
236.11  as how to design curricula to take full advantage of the 
236.12  software, and to model how students and teachers can use 
236.13  computers to enhance teaching and learning.  It will demonstrate 
236.14  this by: 
236.15     (1) giving the multimedia software for biology instruction 
236.16  developed by the University of Minnesota's general biology 
236.17  program to a cohort of Minnesota biology high school teachers 
236.18  and technology support coordinators, paired in teams; 
236.19     (2) supplying the cohorts with the technological means to 
236.20  use the software in teacher-trainer pairs through the trainer 
236.21  mode; 
236.22     (3) providing cohorts with a summer workshop and follow-up 
236.23  seminars during the academic year; and 
236.24     (4) assessing the effectiveness of both the professional 
236.25  development days and the high school teachers use of the 
236.26  software and the impact of the software on student and teacher 
236.27  performance and attitudes. 
236.28     (b) The commissioner must establish a competitive grant 
236.29  process to implement the project.  To be eligible a district 
236.30  must demonstrate the capacity to expand use of the software to 
236.31  other faculty in the district. 
236.32     Subd. 3.  [INTERNET ACCESS.] The commissioner of children, 
236.33  families, and learning shall develop and distribute a model 
236.34  policy for school districts concerning appropriate usage of the 
236.35  Internet with recommended protocols for staff and students to 
236.36  follow in order to maximize the educational benefits of on-line 
237.1   services. 
237.2      Subd. 4.  [AT HOME ACCESS FOR CURRICULUM AND TEACHING.] The 
237.3   Internet access for Minnesota school projects, the InforMNs 
237.4   project, will be continued for the next biennium. 
237.5      Subd. 5.  [MIDSTATE EDUCATIONAL DISTRICT.] A grant project 
237.6   is established for the midstate educational district and 
237.7   independent school district No. 482, Little Falls, to 
237.8   demonstrate student interaction with the local business 
237.9   community. 
237.10     Subd. 6.  [UNIVERSITY OF MINNESOTA; BELL MUSEUM.] A grant 
237.11  project is established for the University of Minnesota for the 
237.12  Bell Museum of Natural History to deliver science curriculum 
237.13  through distance learning methods. 
237.14     Subd. 7.  [EAST RANGE SECONDARY TECHNICAL CENTER.] A grant 
237.15  project is established for the East Range Secondary Technical 
237.16  Center to purchase equipment for classroom and laboratories to 
237.17  demonstrate effective integration of technology into the 
237.18  curriculum. 
237.19     Subd. 8.  [COLLABORATIVE ARTS INTERNET PROJECT.] A grant 
237.20  project is established for the Walker Art Center and the 
237.21  Minneapolis Institute of Arts for an arts via the Internet 
237.22  project.  The project will connect, via the Internet, the 
237.23  thousands of objects in these two collections to every 
237.24  classroom, library, college and university, historical sites, 
237.25  and study centers in the state by digitizing the collections. 
237.26     Sec. 6.  [PROTECTIVE SOFTWARE.] 
237.27     Subdivision 1.  [SOFTWARE RECOMMENDATIONS.] The 
237.28  commissioner of children, families, and learning shall research, 
237.29  evaluate, and make recommendations to school districts on 
237.30  computer software products that filter, block, or otherwise 
237.31  prevent the use of school computers for the transmission of any 
237.32  comment, request, suggestion, proposal, image, or other 
237.33  communication which is: 
237.34     (1) obscene, indecent, or sexually explicit; or 
237.35     (2) intended to promote or incite violence against other 
237.36  living persons. 
238.1      Subd. 2.  [SCHOOL DISTRICTS.] Within one year of the 
238.2   commissioner completing the requirements of subdivision 1, each 
238.3   school district must adopt a policy on Internet usage. 
238.4      Sec. 7.  [SITE-BASED TECHNOLOGY TRANSFORMATION LEARNING 
238.5   GRANTS.] 
238.6      Subdivision 1.  [ESTABLISHMENT; PURPOSE.] A matching grant 
238.7   program is established for school districts or a group of school 
238.8   districts, the residential academies, and the center for arts 
238.9   education to fund technology projects in support of learning and 
238.10  to increase and enhance closer ties with the community.  
238.11  Projects that are eligible for grant funds include, but are not 
238.12  limited to, hardware and software purchases or leasing and 
238.13  installation, establishment or expansion of local or wide area 
238.14  networks, technical support, and training and staff development 
238.15  in the use of technology and software.  Districts may use the 
238.16  funds for youth entrepreneurship and school-to-work activities, 
238.17  other collaborative efforts, or year-round open enrollment 
238.18  projects. 
238.19     Subd. 2.  [GOALS.] The goals for this grant program include 
238.20  the creation of projects that accomplish one or more of the 
238.21  following: 
238.22     (1) enhance teaching and learning productivity through the 
238.23  use of technology; 
238.24     (2) develop individual learner classroom-based teaching and 
238.25  learning systems that can be aggregated into site, district, and 
238.26  state frameworks; 
238.27     (3) develop personalized learning plans designed to give 
238.28  learners more responsibility for their learning success and 
238.29  change the role of teacher to learning facilitator; 
238.30     (4) match and allocate resources; 
238.31     (5) create a curriculum environment that is multiplatform; 
238.32     (6) provide user and contributor access to electronic 
238.33  libraries; 
238.34     (7) schedule activities; 
238.35     (8) automate progress reports; 
238.36     (9) increase collaboration between school district and 
239.1   sites, with businesses, higher education institutions, 
239.2   libraries, and local government units; 
239.3      (10) correlate state-defined outcomes to curriculum units 
239.4   for each student; 
239.5      (11) increase accountability through a reporting system; 
239.6      (12) provide technical support, project evaluation, 
239.7   dissemination services, and replication; and 
239.8      (13) connect to the Learning Network of Minnesota. 
239.9      Subd. 3.  [APPLICATION; ELIGIBILITY.] The commissioner 
239.10  shall establish a process and application forms for grant 
239.11  funds.  Eligible applicants must, at a minimum, identify the 
239.12  specific site needs that the project will address, define the 
239.13  project's expected outcomes, and provide the source, type, and 
239.14  amounts of all matching funds.  To be eligible for a site-based 
239.15  technology learning grant, a school district must:  
239.16     (1) have each dollar of grant money matched by at least one 
239.17  dollar of school district money, plus at least one dollar of 
239.18  either nonstate or nonschool district money, or in-kind 
239.19  contributions; 
239.20     (2) agree to disseminate and share information about its 
239.21  project; 
239.22     (3) provide a benefit to the greater community; and 
239.23     (4) maintain any ongoing costs of support for the 
239.24  technology project after the initial funding under the grant 
239.25  program. 
239.26  Districts may count toward their match any eligible expenditures 
239.27  made from July 1, 1996.  Other applicants do not need to provide 
239.28  a matching amount. 
239.29     Subd. 4.  [COMPETITIVE TECHNOLOGY INVESTMENT GRANTS.] By 
239.30  August 15, 1997, the department shall establish guidelines and 
239.31  an application process.  The money must provide technology 
239.32  investments at school sites, including media centers, community 
239.33  education sites, the center for arts education, or at the 
239.34  residential academies. 
239.35     Sec. 8.  [LIBRARY TECHNOLOGY SITE GRANT PROGRAM.] 
239.36     Subdivision 1.  [ESTABLISHMENT; PURPOSE.] A matching grant 
240.1   program is established for library sites to fund projects to 
240.2   expand and integrate technology into library operations, 
240.3   increase public access to technology, and enhance closer ties 
240.4   with the community.  
240.5      Subd. 2.  [ELIGIBLE PROJECTS.] (a) The grants are available 
240.6   to public or school library sites or to a partnership of library 
240.7   sites.  Recipients shall use grant proceeds for the LDS/MINITEX 
240.8   joint standards and guidelines for automated library systems. 
240.9      (b) Projects that are eligible for grant funds include, but 
240.10  are not limited to, hardware and software purchases and 
240.11  installation, establishment, or expansion of local or wide area 
240.12  networks, and training and staff development in the use of 
240.13  technology and software, with consideration given to: 
240.14     (1) converting school media center bibliographic records 
240.15  into standard formats; 
240.16     (2) loading school library site media records into regional 
240.17  public or multicounty, multitype library systems or other 
240.18  appropriate library networks; 
240.19     (3) staff development for library personnel; 
240.20     (4) upgrading and increasing database development; and 
240.21     (5) improving public and library staff use of networked 
240.22  library resources at library sites. 
240.23     Subd. 3.  [APPLICATION; ELIGIBILITY.] The commissioner 
240.24  shall establish a process and application forms for library 
240.25  sites to apply for grant funds.  Eligible applicants must, at a 
240.26  minimum, describe how the proposed project is consistent with 
240.27  the technology plans that ensure interoperability of hardware, 
240.28  software, and telecommunication, identify the specific site 
240.29  needs that the project will address, define the project's 
240.30  expected outcomes, and provide the source, type, and amounts of 
240.31  all matching funds.  To be eligible for a site-based technology 
240.32  learning grant, a library site must: 
240.33     (1) be a school library, a public library, or a partnership 
240.34  of public and school libraries; 
240.35     (2) have each dollar of grant money matched by at least one 
240.36  dollar of library site money, including in-kind contributions; 
241.1      (3) have each dollar of grant money matched by at least one 
241.2   dollar of nonstate and nonlibrary site money, including in-kind 
241.3   contributions; 
241.4      (4) agree to disseminate and share information about its 
241.5   project; 
241.6      (5) provide a benefit to the greater community; and 
241.7      (6) maintain any ongoing costs of support for the 
241.8   technology project after the initial funding under the grant 
241.9   program. 
241.10     Subd. 4.  [GRANT AWARD.] The commissioner shall consult 
241.11  with representatives of the public and private sectors in 
241.12  establishing criteria and awarding site-based technology 
241.13  learning grants. 
241.14     Sec. 9.  [REFURBISHED COMPUTER PROGRAM.] 
241.15     The commissioner of children, families, and learning shall 
241.16  establish a program to refurbish donated computers to increase 
241.17  the number of multimedia computers in Minnesota schools.  In 
241.18  establishing the program, the commissioner shall work with the 
241.19  commissioners of administration and corrections, and the office 
241.20  of technology.  The program must be implemented in conjunction 
241.21  with the education technology improvement clearinghouses under 
241.22  Minnesota Statutes, section 121.95, and in partnership with 
241.23  business, nonprofit organizations, and institutions of higher 
241.24  education.  The program must: 
241.25     (1) establish the number of multimedia computers to be 
241.26  refurbished by July 1, 2000; 
241.27     (2) establish partnerships with nonprofit or business 
241.28  organizations to solicit donations; 
241.29     (3) develop an agreement with the commissioner of 
241.30  corrections to facilitate computers in Minnesota correctional 
241.31  institutions with procedures to minimize security risks; 
241.32     (4) promote the program to public and nonpublic schools; 
241.33  and 
241.34     (5) develop plans to equitably distribute computers to 
241.35  public and nonpublic schools and ensure proper recycling of 
241.36  unsuitable equipment. 
242.1      Sec. 10.  [ADDITIONAL TECHNOLOGY REVENUE.] 
242.2      For fiscal year 1998 only, the allowance in Minnesota 
242.3   Statutes, section 124A.22, subdivision 10, paragraph (a), is 
242.4   increased by $31.  The revenue shall be used in the same manner 
242.5   prescribed for that revenue. 
242.6      Sec. 11.  [APPROPRIATIONS.] 
242.7      Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
242.8   LEARNING.] The sums indicated in this section are appropriated 
242.9   from the general fund to the commissioner of children, families, 
242.10  and learning for the fiscal years designated.  The 
242.11  appropriations in subdivisions 6 and 7 are one-time 
242.12  appropriations only. 
242.13     Subd. 2.  [TELECOMMUNICATIONS ACCESS GRANTS.] For grants to 
242.14  school districts and regional public library systems to 
242.15  establish telecommunication connections according to Minnesota 
242.16  Statutes, section 124C.74: 
242.17       $13,000,000     .....     1998 
242.18       $5,250,000      .....     1999 
242.19     Any balance in the first year does not cancel but is 
242.20  available in the second year. 
242.21     Before a district can receive a grant under this 
242.22  subdivision in fiscal year 1999, the district must submit to the 
242.23  commissioner evidence that it has pursued all possible funding 
242.24  options, including ITV revenue under Minnesota Statutes, section 
242.25  124.91, subdivision 5.  Notwithstanding section 124.91, 
242.26  subdivision 5, ITV revenue may also be used for the purposes of 
242.27  the telecommunication access grants under Minnesota Statutes, 
242.28  section 124C.74.  This amount shall not be included as part of 
242.29  the base for fiscal year 2000-2001. 
242.30     In allocating grant funds, the council, as appropriate, may 
242.31  consider expenditures by district made from July 1, 1995. 
242.32     Subd. 3.  [SITE-BASED TECHNOLOGY TRANSFORMATION LEARNING 
242.33  GRANTS.] For grants under section 7: 
242.34       $14,000,000     .....     1998 
242.35     This appropriation is available until June 30, 1999. 
242.36     Subd. 4.  [LIBRARY TECHNOLOGY SITE GRANT PROGRAM.] For 
243.1   one-time library site grants under section 8: 
243.2        $4,650,000     .....     1998 
243.3      This appropriation is available until June 30, 1999. 
243.4      Subd. 5.  [COMPUTER REFURBISHMENT PROGRAM.] For the 
243.5   multimedia computer refurbishment program under section 9: 
243.6        $6,000,000     .....     1998
243.7      The commissioner may use up to $250,000 of this amount for 
243.8   the education technology improvement clearinghouses under 
243.9   Minnesota Statutes, section 121.95. 
243.10     The commissioner may use all or part of this appropriation 
243.11  for an agreement with the commissioner of corrections to 
243.12  establish refurbishment centers at one or more correctional 
243.13  institution. 
243.14     These funds are available until June 30, 2000. 
243.15     Subd. 6.  [ELECTRONIC CURRICULUM RESOURCE.] For support of 
243.16  electronic curriculum development: 
243.17       $3,000,000     .....     1998
243.18     Of this amount, $2,700,000 is for the electronic curriculum 
243.19  resource under section 5, $1,000,000 of which is for the 
243.20  collaborative arts project in subdivision 8 of that section. 
243.21     Of this amount, $300,000 is for the purposes of the Gopher 
243.22  Biology Share Ware Project under section 5, subdivision 2. 
243.23     Subd. 7.  [UNIVERSITY OF MINNESOTA; BELL MUSEUM.] For a 
243.24  grant to the University of Minnesota for the Bell Museum of 
243.25  Natural History to deliver science curriculum through distance 
243.26  learning methods: 
243.27       $500,000     .....     1998
243.28       $500,000     .....     1999
243.29     Subd. 8.  [INTERACTIVE TELEVISION (ITV) AID.] For 
243.30  interactive television (ITV) aid under Minnesota Statutes, 
243.31  section 124.91, subdivision 5: 
243.32       $4,030,000     .....     1998
243.33       $5,942,000     .....     1999
243.34     The 1998 appropriation includes $384,000 for 1997 and 
243.35  $3,646,000 for 1998. 
243.36     The 1999 appropriation includes $405,000 for 1998 and 
244.1   $5,537,000 for 1999. 
244.2      Subd. 9.  [INSTRUCTIONAL TRANSFORMATION THROUGH TECHNOLOGY 
244.3   GRANTS.] For grants according to Laws 1995, First Special 
244.4   Session chapter 3, article 12, section 8: 
244.5        $4,000,000     .....     1998
244.6      This appropriation is available until June 30, 1999. 
244.7      Subd. 10.  [ADDITIONAL OPERATING CAPITAL.] For a one-time 
244.8   increase in operating capital according to section 10: 
244.9        $30,000,000    .....     1998
244.10     Subd. 11.  [LEARNING ACADEMY.] For training and staff 
244.11  development according to section 2: 
244.12       $2,000,000     .....     1998
244.13     This appropriation is available until June 30, 1999. 
244.14     Sec. 12.  [REPEALER.] 
244.15     Minnesota Statutes 1996, section 134.46, is repealed. 
244.16                             ARTICLE 10
244.17                           STATE AGENCIES
244.18     Section 1.  Minnesota Statutes 1996, section 128A.02, is 
244.19  amended by adding a subdivision to read: 
244.20     Subd. 7.  [GRANTS.] The state board, through the chief 
244.21  administrators of the academies, may apply for all competitive 
244.22  grants administered by agencies of the state and other 
244.23  government or nongovernment sources.  Application may not be 
244.24  made for grants over which the board has discretion. 
244.25     Sec. 2.  Minnesota Statutes 1996, section 129C.10, 
244.26  subdivision 3, is amended to read: 
244.27     Subd. 3.  [POWERS AND DUTIES OF BOARD.] (a) The board has 
244.28  the powers necessary for the care, management, and control of 
244.29  the Lola and Rudy Perpich Minnesota center for arts education 
244.30  and all its real and personal property.  The powers shall 
244.31  include, but are not limited to, those listed in this 
244.32  subdivision. 
244.33     (b) The board may employ and discharge necessary employees, 
244.34  and contract for other services to ensure the efficient 
244.35  operation of the center for arts education. 
244.36     (c) The board may receive and award grants.  The board may 
245.1   establish a charitable foundation and accept, in trust or 
245.2   otherwise, any gift, grant, bequest, or devise for educational 
245.3   purposes and hold, manage, invest, and dispose of them and the 
245.4   proceeds and income of them according to the terms and 
245.5   conditions of the gift, grant, bequest, or devise and its 
245.6   acceptance.  The board shall adopt internal procedures to 
245.7   administer and monitor aids and grants. 
245.8      (d) The board may establish or coordinate evening, 
245.9   continuing education, extension, and summer programs for 
245.10  teachers and pupils. 
245.11     (e) The board may identify pupils who have artistic talent, 
245.12  either demonstrated or potential, in dance, literary arts, media 
245.13  arts, music, theater, and visual arts, or in more than one art 
245.14  form. 
245.15     (f) The board shall educate pupils with artistic talent by 
245.16  providing:  
245.17     (1) an interdisciplinary academic and arts program for 
245.18  pupils in the 11th and 12th grades.  The total number of pupils 
245.19  accepted under this clause and clause (2) shall not exceed 300; 
245.20     (2) additional instruction to pupils for a 13th grade. 
245.21  Pupils eligible for this instruction are those enrolled in 12th 
245.22  grade who need extra instruction and who apply to the board, or 
245.23  pupils enrolled in the 12th grade who do not meet learner 
245.24  outcomes established by the board.  Criteria for admission into 
245.25  the 13th grade shall not be subject to chapter 14; 
245.26     (3) intensive arts seminars for one or two weeks for pupils 
245.27  in grades 9 to 12; 
245.28     (4) summer arts institutes for pupils in grades 9 to 12; 
245.29     (5) artist mentor and extension programs in regional sites; 
245.30  and 
245.31     (6) teacher education programs for indirect curriculum 
245.32  delivery. 
245.33     (g) The board may determine the location for the Lola and 
245.34  Rudy Perpich Minnesota center for arts education and any 
245.35  additional facilities related to the center, including the 
245.36  authority to lease a temporary facility. 
246.1      (h) The board must plan for the enrollment of pupils on an 
246.2   equal basis from each congressional district.  
246.3      (i) The board may establish task forces as needed to advise 
246.4   the board on policies and issues.  The task forces expire as 
246.5   provided in section 15.059, subdivision 6.  
246.6      (j) The board may request the commissioner of children, 
246.7   families, and learning for assistance and services. 
246.8      (k) The board may enter into contracts with other public 
246.9   and private agencies and institutions for residential and 
246.10  building maintenance services if it determines that these 
246.11  services could be provided more efficiently and less expensively 
246.12  by a contractor than by the board itself.  The board may also 
246.13  enter into contracts with public or private agencies and 
246.14  institutions, school districts or combinations of school 
246.15  districts, or service cooperatives to provide supplemental 
246.16  educational instruction and services. 
246.17     (l) The board may provide or contract for services and 
246.18  programs by and for the center for arts education, including a 
246.19  store, operating in connection with the center; theatrical 
246.20  events; and other programs and services that, in the 
246.21  determination of the board, serve the purposes of the center. 
246.22     (m) The board may provide for transportation of pupils to 
246.23  and from the center for arts education for all or part of the 
246.24  school year, as the board considers advisable and subject to its 
246.25  rules.  Notwithstanding any other law to the contrary, the board 
246.26  may charge a reasonable fee for transportation of pupils.  Every 
246.27  driver providing transportation of pupils under this paragraph 
246.28  must possess all qualifications required by the state board of 
246.29  education.  The board may contract for furnishing authorized 
246.30  transportation under rules established by the commissioner of 
246.31  children, families, and learning and may purchase and furnish 
246.32  gasoline to a contract carrier for use in the performance of a 
246.33  contract with the board for transportation of pupils to and from 
246.34  the center for arts education.  When transportation is provided, 
246.35  scheduling of routes, establishment of the location of bus 
246.36  stops, the manner and method of transportation, the control and 
247.1   discipline of pupils, and any other related matter is within the 
247.2   sole discretion, control, and management of the board. 
247.3      (n) The board may provide room and board for its pupils.  
247.4   If the board provides room and board, it shall charge a 
247.5   reasonable fee for the room and board.  The fee is not subject 
247.6   to chapter 14 and is not a prohibited fee according to sections 
247.7   120.71 to 120.76. 
247.8      (o) The board may establish and set fees for services and 
247.9   programs without regard to chapter 14.  If the board sets fees 
247.10  not authorized or prohibited by the Minnesota public school fee 
247.11  law, it may do so without complying with the requirements of 
247.12  section 120.75, subdivision 1. 
247.13     (p) The board may apply for all competitive grants 
247.14  administered by agencies of the state and other government or 
247.15  nongovernment sources. 
247.16     Sec. 3.  [APPROPRIATIONS; DEPARTMENT OF CHILDREN, FAMILIES, 
247.17  AND LEARNING.] 
247.18     Subdivision 1.  [DEPARTMENT OF CHILDREN, FAMILIES, AND 
247.19  LEARNING.] The sums indicated in this section are appropriated 
247.20  from the general fund to the department of children, families, 
247.21  and learning for the fiscal years designated. 
247.22     Subd. 2.  [DEPARTMENT.] For the department of children, 
247.23  families, and learning: 
247.24        $22,048,000       .....      1998
247.25        $21,666,000       .....      1999
247.26     (a) Any balance in the first year does not cancel but is 
247.27  available in the second year. 
247.28     (b) $21,000 each year is from the trunk highway fund. 
247.29     (c) $622,000 in 1998 and $627,000 in 1999 is for the 
247.30  academic excellence foundation. 
247.31     Up to $50,000 each year is contingent upon the match of $1 
247.32  in the previous year from private sources consisting of either 
247.33  direct monetary contributions or in-kind contributions of 
247.34  related goods or services, for each $1 of the appropriation.  
247.35  The commissioner of children, families, and learning must 
247.36  certify receipt of the money or documentation for the private 
248.1   matching funds or in-kind contributions.  The unencumbered 
248.2   balance from the amount actually appropriated from the 
248.3   contingent amount in 1996 does not cancel but is available in 
248.4   1997.  The amount carried forward must not be used to establish 
248.5   a larger annual base appropriation for later fiscal years. 
248.6      (d) $207,000 in 1998 and $210,000 in 1999 is for the state 
248.7   board of education. 
248.8      (e) $230,000 in 1998 and $234,000 in 1999 is for the board 
248.9   of teaching. 
248.10     (f) The expenditures of federal grants and aids as shown in 
248.11  the biennial budget document and its supplements are approved 
248.12  and appropriated and shall be spent as indicated. 
248.13     (g) The department of children, families, and learning 
248.14  shall develop a performance report on the quality of its 
248.15  programs and services.  The report must be consistent with the 
248.16  process specified in Minnesota Statutes, sections 15.90 to 
248.17  15.92.  The goals, objectives, and measures of this report must 
248.18  be developed in cooperation with the chairs of the finance 
248.19  divisions of the education committees of the house of 
248.20  representatives and senate, the department of finance, and the 
248.21  office of legislative auditor.  The report must include data to 
248.22  indicate the progress of the department in meeting its goals and 
248.23  objectives. 
248.24     (h) $188,000 each year is appropriated from the special 
248.25  revenue fund for the graduation rule.  The department 
248.26  appropriation is to be used to fund continued assessment and 
248.27  standards development and piloting; to broaden public 
248.28  understanding through communication; to continue development of 
248.29  learning benchmarks; for ongoing statewide assessment efforts; 
248.30  to develop system performance standards; and to provide 
248.31  technical assistance to schools throughout the state.  The 
248.32  appropriation from the special revenue fund is to be used for 
248.33  appropriate development efforts in health-related standards and 
248.34  assessments.  Any amount of this appropriation does not cancel 
248.35  and shall be carried forward to the following fiscal year.  
248.36     (i) Notwithstanding Minnesota Statutes, section 15.53, 
249.1   subdivision 2, the commissioner of children, families, and 
249.2   learning may contract with a school district for a period no 
249.3   longer than five consecutive years to work in the development or 
249.4   implementation of the graduation rule.  The commissioner may 
249.5   contract for services and expertise as necessary.  The contracts 
249.6   are not subject to Minnesota Statutes, sections 16B.06 to 16B.08.
249.7      (j) In preparing the department budget for fiscal years 
249.8   2000-2001, the department shall shift all administrative funding 
249.9   in programs level appropriations into the department allotments. 
249.10     Sec. 4.  [APPROPRIATIONS; LOLA AND RUDY PERPICH MINNESOTA 
249.11  CENTER FOR ARTS EDUCATION.] 
249.12     The sums indicated in this section are appropriated from 
249.13  the general fund to the center for arts education for the fiscal 
249.14  years designated: 
249.15      $5,541,000     .....     1998
249.16      $6,054,000     .....     1999
249.17     Of the fiscal year 1998 appropriation, $154,000 is to fund 
249.18  artist and arts organization participation in the education 
249.19  residency and education technology projects, $75,000 is for 
249.20  school support for the residency project, and $121,000 is for 
249.21  further development of the partners:  arts and school for 
249.22  students (PASS) program, including pilots.  Of the fiscal year 
249.23  1999 appropriation, $154,000 is to fund artist and arts 
249.24  organizations participation in the education residency project, 
249.25  $75,000 is for school support for the residency project, and 
249.26  $121,000 is to fund the PASS program, including additional 
249.27  pilots.  The guidelines for the education residency project and 
249.28  the pass program shall be developed and defined by the center 
249.29  for arts education in cooperation with the Minnesota arts 
249.30  board.  The Minnesota arts board shall participate in the review 
249.31  and allocation process.  The center for arts education and the 
249.32  Minnesota arts board shall cooperate to fund these projects. 
249.33     Any balance in the first year does not cancel but is 
249.34  available in the second year. 
249.35     Sec. 5.  [APPROPRIATIONS; FARIBAULT ACADEMIES.] 
249.36     The sums indicated in this section are appropriated from 
250.1   the general fund to the department of children, families, and 
250.2   learning for the Faribault academies for the fiscal years 
250.3   designated:  
250.4        $9,410,000     .....     1998
250.5        $9,408,000     .....     1999 
250.6      Any balance in the first year does not cancel but is 
250.7   available in the second year. 
250.8      $500,000 each year is for technology infrastructure. 
250.9      In the next biennial budget, the academies must assess 
250.10  their progress in meeting the established performance measures 
250.11  for the Faribault academies and inform the legislature on the 
250.12  content of that assessment.  The information must include an 
250.13  assessment of its progress by consumers and employees. 
250.14                             ARTICLE 11 
250.15                TECHNICAL AND CONFORMING AMENDMENTS
250.16     Section 1.  Minnesota Statutes 1996, section 124A.225, 
250.17  subdivision 1, is amended to read: 
250.18     Subdivision 1.  [REVENUE.] Of a district's general 
250.19  education revenue an amount equal to the sum of the number of 
250.20  elementary fund balance pupils in average daily membership 
250.21  defined in section 124.17, subdivision 1h 1f, and one-half of 
250.22  the number of kindergarten fund balance pupils in average daily 
250.23  membership as defined in section 124.17, subdivision 1h 1f, 
250.24  times .06 for fiscal year 1995 and thereafter times the formula 
250.25  allowance must be reserved according to this section.