1.1                          A bill for an act 
  1.2             relating to education; providing for policy changes to 
  1.3             provisions relating to kindergarten through grade 12 
  1.4             education; providing for rulemaking; amending 
  1.5             Minnesota Statutes 1996, sections 120.03, subdivision 
  1.6             1; 120.101, subdivision 3; 120.17, subdivisions 2, 3, 
  1.7             and 3b; 120.1701, subdivisions 2, 5, and 11; 120.173, 
  1.8             subdivision 6; 121.163, by adding a subdivision; 
  1.9             121.585, subdivision 1; 121.908, subdivisions 2 and 3; 
  1.10            122.23, subdivision 6; 123.935, subdivisions 1 and 2; 
  1.11            124.15; 124.17, subdivision 2; 124.248, subdivisions 1 
  1.12            and 1a; 124.3201, subdivision 5; 124.646, subdivision 
  1.13            4; 124A.036, subdivision 6; and 125.191; 127.27, 
  1.14            subdivisions 2 and 4; Minnesota Statutes 1997 
  1.15            Supplement, sections 120.1701, subdivision 3; 124.17, 
  1.16            subdivisions 1d and 6; 124.248, subdivisions 2a and 6; 
  1.17            124.6475; 124.648, subdivision 3; 124A.036, 
  1.18            subdivision 5; 124A.28, subdivisions 1 and 1a; 126.79, 
  1.19            subdivisions 3, 6, 7, 8, and 9; 127.27, subdivisions 
  1.20            10 and 11; 127.281; 127.31, subdivision 15; 127.32; 
  1.21            and 127.36, subdivision 1; Laws 1992, chapter 499, 
  1.22            article 7, section 31; Laws 1997 First Special Session 
  1.23            chapter 4, articles 1, section 61, subdivision 3; 5, 
  1.24            section 28, subdivision 12; 8, section 4, subdivision 
  1.25            3; and 9, section 11; proposing coding for new law in 
  1.26            Minnesota Statutes, chapter 120; repealing Minnesota 
  1.27            Statutes 1996, sections 120.1701, subdivision 21; 
  1.28            123.932, subdivision 9; 124.647; 124A.697; 124A.698; 
  1.29            124A.70; 124A.71; 124A.711, subdivision 1; 124A.72; 
  1.30            and 124A.73; Minnesota Statutes 1997 Supplement, 
  1.31            sections 124.912, subdivisions 2 and 3; 124A.711, 
  1.32            subdivision 2; and 127.30, subdivision 3. 
  1.33  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.34                             ARTICLE 1 
  1.35                         GENERAL EDUCATION
  1.36     Section 1.  Minnesota Statutes 1996, section 121.908, 
  1.37  subdivision 2, is amended to read: 
  1.38     Subd. 2.  Each district shall submit to the commissioner by 
  1.39  August September 15 of each year an unaudited financial 
  2.1   statement data for the preceding fiscal year.  This statement 
  2.2   financial data shall be submitted on forms in the format 
  2.3   prescribed by the commissioner. 
  2.4      Sec. 2.  Minnesota Statutes 1996, section 121.908, 
  2.5   subdivision 3, is amended to read: 
  2.6      Subd. 3.  By December 31 November 30 of the calendar year 
  2.7   of the submission of the unaudited financial statement data, the 
  2.8   district shall provide to the commissioner and state auditor an 
  2.9   audited financial data for the preceding fiscal year.  An 
  2.10  audited financial statement prepared in a form which will allow 
  2.11  comparison with and correction of material differences in the 
  2.12  unaudited statement financial data shall be submitted to the 
  2.13  commissioner and the state auditor by November 30.  The audited 
  2.14  financial statement must also provide a statement of assurance 
  2.15  pertaining to uniform financial accounting and reporting 
  2.16  standards compliance. 
  2.17     Sec. 3.  Minnesota Statutes 1997 Supplement, section 
  2.18  124.17, subdivision 1d, is amended to read: 
  2.19     Subd. 1d.  [COMPENSATION REVENUE PUPIL UNITS.] Compensation 
  2.20  revenue pupil units for fiscal year 1998 and thereafter must be 
  2.21  computed according to this subdivision.  
  2.22     (a) The compensation revenue concentration percentage for 
  2.23  each building in a district equals the product of 100 times the 
  2.24  ratio of:  
  2.25     (1) the sum of the number of pupils enrolled in the 
  2.26  building eligible to receive free lunch plus one-half of the 
  2.27  pupils eligible to receive reduced priced lunch on October 1 of 
  2.28  the previous fiscal year; to 
  2.29     (2) the number of pupils enrolled in the building on 
  2.30  October 1 of the previous fiscal year. 
  2.31     (b) The compensation revenue pupil weighting factor for a 
  2.32  building equals the lesser of one or the quotient obtained by 
  2.33  dividing the building's compensation revenue concentration 
  2.34  percentage by 80.0.  
  2.35     (c) The compensation revenue pupil units for a building 
  2.36  equals the product of:  
  3.1      (1) the sum of the number of pupils enrolled in the 
  3.2   building eligible to receive free lunch and one-half of the 
  3.3   pupils eligible to receive reduced priced lunch on October 1 of 
  3.4   the previous fiscal year; times 
  3.5      (2) the compensation revenue pupil weighting factor for the 
  3.6   building; times 
  3.7      (3) .60. 
  3.8      (d) Notwithstanding paragraphs (a) to (c), for charter 
  3.9   schools in the first year of operation, compensation revenue 
  3.10  pupil units shall be computed using data for the current fiscal 
  3.11  year.  If the charter school begins operation after October 1, 
  3.12  compensatory revenue pupil units shall be computed based on 
  3.13  pupils enrolled on an alternate date determined by the 
  3.14  commissioner, and the compensation revenue pupil units shall be 
  3.15  prorated based on the ratio of the number of days of student 
  3.16  instruction to 170 days. 
  3.17     (e) The percentages in this subdivision must be based on 
  3.18  the count of individual pupils and not on a building average or 
  3.19  minimum. 
  3.20     Sec. 4.  Minnesota Statutes 1997 Supplement, section 
  3.21  124.17, subdivision 6, is amended to read: 
  3.22     Subd. 6.  [FREE AND REDUCED PRICED LUNCHES.] The 
  3.23  commissioner shall determine the number of children eligible to 
  3.24  receive either a free or reduced priced lunch on October 1 each 
  3.25  year.  Children enrolled in a building on October 1 and 
  3.26  determined to be eligible to receive free or reduced price lunch 
  3.27  by January 15 of the following year shall be counted as eligible 
  3.28  on October 1 for purposes of subdivision 1d.  The commissioner 
  3.29  may use federal definitions for these purposes and may adjust 
  3.30  these definitions as appropriate.  The commissioner may adopt 
  3.31  reporting guidelines to assure accuracy of data counts and 
  3.32  eligibility.  Districts shall use any guidelines adopted by the 
  3.33  commissioner. 
  3.34     Sec. 5.  Minnesota Statutes 1996, section 124.248, 
  3.35  subdivision 1, is amended to read: 
  3.36     Subdivision 1.  [GENERAL EDUCATION REVENUE.] General 
  4.1   education revenue shall be paid to a charter school as though it 
  4.2   were a school district.  The general education revenue for each 
  4.3   pupil unit is the state average general education revenue per 
  4.4   pupil unit minus $170 an amount equal to the product of the 
  4.5   formula allowance according to section 124A.22, subdivision 2, 
  4.6   times .0485, calculated without compensatory basic skills 
  4.7   revenue, transportation sparsity revenue, and the transportation 
  4.8   portion of the transition revenue adjustment, plus compensatory 
  4.9   basic skills revenue as though the school were a school district.
  4.10     Sec. 6.  Minnesota Statutes 1996, section 124.248, 
  4.11  subdivision 1a, is amended to read: 
  4.12     Subd. 1a.  [TRANSPORTATION REVENUE.] Transportation revenue 
  4.13  shall be paid to a charter school that provides transportation 
  4.14  services according to section 120.064, subdivision 15, according 
  4.15  to this subdivision.  Transportation aid shall equal 
  4.16  transportation revenue.  
  4.17     (a) In addition to the revenue under subdivision 1, a 
  4.18  charter school providing transportation services shall receive 
  4.19  general education aid for each pupil unit equal to the sum of 
  4.20  $170 an amount equal to the product of the formula allowance 
  4.21  according to section 124A.22, subdivision 2, times .0485, plus 
  4.22  the transportation sparsity allowance for the school district in 
  4.23  which the charter school is located, plus the transportation 
  4.24  transition allowance for the school district in which the 
  4.25  charter school is located.  
  4.26     (b) For the first two years that a charter school is 
  4.27  providing transportation services, the special programs 
  4.28  transportation revenue equals the charter school's actual cost 
  4.29  in the current school year for transportation services for 
  4.30  children with disabilities under section 124.223, subdivisions 
  4.31  4, 5, 7, and 8.  For the third year of transportation services 
  4.32  and later fiscal years, the special programs transportation 
  4.33  revenue shall be computed according to section 124.225, 
  4.34  subdivision 14.  
  4.35     Sec. 7.  Minnesota Statutes 1997 Supplement, section 
  4.36  124.248, subdivision 2a, is amended to read: 
  5.1      Subd. 2a.  [BUILDING LEASE AID.] When a charter school 
  5.2   finds it economically advantageous to rent or lease a building 
  5.3   or land for any instructional purposes and it determines that 
  5.4   the total operating capital revenue under section 124A.22, 
  5.5   subdivision 10, is insufficient for this purpose, it may apply 
  5.6   to the commissioner for building lease aid for this purpose.  
  5.7   Criteria for aid approval and revenue uses shall be as defined 
  5.8   for the building lease levy in section 124.91, subdivision 1, 
  5.9   paragraphs (a), (b), and (d).  The amount of building lease aid 
  5.10  per pupil unit served for a charter school for any year shall 
  5.11  not exceed the lesser of (a) 80 percent of the approved cost or 
  5.12  (b) the product of the actual pupil units served for the current 
  5.13  school year times the sum of the state average debt redemption 
  5.14  fund revenue plus capital revenue, according to section 124.91, 
  5.15  per actual pupil unit served for the current fiscal year. 
  5.16     Sec. 8.  Minnesota Statutes 1997 Supplement, section 
  5.17  124.248, subdivision 6, is amended to read: 
  5.18     Subd. 6.  [START-UP COSTS.] During the first two years of a 
  5.19  charter school's operation, the charter school is eligible for 
  5.20  aid to pay for start-up costs and additional operating costs. 
  5.21  Start-up cost aid equals the greater of: 
  5.22     (1) $50,000 per charter school; or 
  5.23     (2) $500 times the charter school's pupil units served for 
  5.24  that year. 
  5.25     Sec. 9.  Minnesota Statutes 1996, section 124.3201, 
  5.26  subdivision 5, is amended to read: 
  5.27     Subd. 5.  [SCHOOL DISTRICT SPECIAL EDUCATION REVENUE.] (a) 
  5.28  A school district's special education revenue for fiscal year 
  5.29  1996 and later equals the state total special education revenue, 
  5.30  minus the amount determined under paragraph (b), times the ratio 
  5.31  of the district's adjusted special education base revenue to the 
  5.32  state total adjusted special education base revenue.  If the 
  5.33  state board of education modifies its rules for special 
  5.34  education in a manner that increases a school district's special 
  5.35  education obligations or service requirements, the commissioner 
  5.36  of children, families, and learning shall annually increase each 
  6.1   district's special education revenue by the amount necessary to 
  6.2   compensate for the increased service requirements.  The 
  6.3   additional revenue equals the cost in the current year 
  6.4   attributable to rule changes not reflected in the computation of 
  6.5   special education base revenue, multiplied by the appropriate 
  6.6   percentages from subdivision 2. 
  6.7      (b) Notwithstanding paragraph (a), if the special education 
  6.8   base revenue for a district equals zero, the special education 
  6.9   revenue equals the amount computed according to subdivision 2 
  6.10  using current year data.  
  6.11     (c) Notwithstanding paragraphs (a) and (b), if the special 
  6.12  education base revenue for a district is greater than zero, and 
  6.13  the base year amount for the district under subdivision 2, 
  6.14  paragraph (a), clause (7), equals zero, the special education 
  6.15  revenue equals the sum of the amount computed according to 
  6.16  paragraph (a), plus the amount computed according to subdivision 
  6.17  2, paragraph (a), clause (7), using current year data. 
  6.18     Sec. 10.  Minnesota Statutes 1997 Supplement, section 
  6.19  124A.036, subdivision 5, is amended to read: 
  6.20     Subd. 5.  [ALTERNATIVE ATTENDANCE PROGRAMS.] The general 
  6.21  education aid for districts must be adjusted for each pupil 
  6.22  attending a nonresident district under sections 120.062, 
  6.23  120.075, 120.0751, 120.0752, 124C.45 to 124C.48, and 126.22.  
  6.24  The adjustments must be made according to this subdivision. 
  6.25     (a) General education aid paid to a resident district must 
  6.26  be reduced by an amount equal to the general education revenue 
  6.27  exclusive of compensatory basic skills revenue attributable to 
  6.28  the pupil in the resident district. 
  6.29     (b) General education aid paid to a district serving a 
  6.30  pupil in programs listed in this subdivision shall be increased 
  6.31  by an amount equal to the general education revenue exclusive of 
  6.32  compensatory basic skills revenue attributable to the pupil in 
  6.33  the nonresident district.  
  6.34     (c) If the amount of the reduction to be made from the 
  6.35  general education aid of the resident district is greater than 
  6.36  the amount of general education aid otherwise due the district, 
  7.1   the excess reduction must be made from other state aids due the 
  7.2   district. 
  7.3      (d) The district of residence shall pay tuition to a 
  7.4   district or an area learning center, operated according to 
  7.5   paragraph (e), providing special instruction and services to a 
  7.6   pupil with a disability, as defined in section 120.03, or a 
  7.7   pupil, as defined in section 120.181, who is enrolled in a 
  7.8   program listed in this subdivision.  The tuition shall be equal 
  7.9   to (1) the actual cost of providing special instruction and 
  7.10  services to the pupil, including a proportionate amount for debt 
  7.11  service and for capital expenditure facilities and equipment, 
  7.12  and debt service but not including any amount for 
  7.13  transportation, minus (2) the amount of general education aid 
  7.14  and special education aid, attributable to that pupil, that is 
  7.15  received by the district providing special instruction and 
  7.16  services. 
  7.17     (e) An area learning center operated by a service 
  7.18  cooperative, intermediate district, education district, or a 
  7.19  joint powers cooperative may elect through the action of the 
  7.20  constituent boards to charge tuition for pupils rather than to 
  7.21  calculate general education aid adjustments under paragraph (a), 
  7.22  (b), or (c).  The tuition must be equal to the greater of the 
  7.23  average general education revenue per pupil unit attributable to 
  7.24  the pupil, or the actual cost of providing the instruction, 
  7.25  excluding transportation costs, if the pupil meets the 
  7.26  requirements of section 120.03 or 120.181. 
  7.27     Sec. 11.  Minnesota Statutes 1996, section 124A.036, 
  7.28  subdivision 6, is amended to read: 
  7.29     Subd. 6.  [CHARTER SCHOOLS.] (a) The general education aid 
  7.30  for districts must be adjusted for each pupil attending a 
  7.31  charter school under section 120.064.  The adjustments must be 
  7.32  made according to this subdivision. 
  7.33     (b) General education aid paid to a resident district must 
  7.34  be reduced by an amount equal to the general education revenue 
  7.35  exclusive of compensatory basic skills revenue. 
  7.36     (c) General education aid paid to a district in which a 
  8.1   charter school not providing transportation according to section 
  8.2   120.064, subdivision 15, is located shall be increased by an 
  8.3   amount equal to the product of:  (1) the sum of $170, plus the 
  8.4   transportation sparsity allowance for the district, plus the 
  8.5   transportation transition allowance for the district; times (2) 
  8.6   the pupil units attributable to the pupil.  
  8.7      (d) If the amount of the reduction to be made from the 
  8.8   general education aid of the resident district is greater than 
  8.9   the amount of general education aid otherwise due the district, 
  8.10  the excess reduction must be made from other state aids due the 
  8.11  district. 
  8.12     Sec. 12.  Minnesota Statutes 1997 Supplement, section 
  8.13  124A.28, subdivision 1, is amended to read: 
  8.14     Subdivision 1.  [USE OF THE REVENUE.] The compensatory 
  8.15  education revenue under section 124A.22, subdivision 3, and the 
  8.16  portion of the transition revenue adjustment under section 
  8.17  124A.22, subdivision 13c, attributable to the compensatory 
  8.18  transition allowance under section 124A.22, subdivision 13b, 
  8.19  paragraph (b), must be used to meet the educational needs of 
  8.20  pupils whose progress toward meeting state or local content or 
  8.21  performance standards is below the level that is appropriate for 
  8.22  learners of their age.  Any of the following may be provided to 
  8.23  meet these learners' needs: 
  8.24     (1) direct instructional services under the assurance of 
  8.25  mastery program according to section 124.3111; 
  8.26     (2) remedial instruction in reading, language arts, 
  8.27  mathematics, other content areas, or study skills to improve the 
  8.28  achievement level of these learners; 
  8.29     (3) additional teachers and teacher aides to provide more 
  8.30  individualized instruction to these learners through individual 
  8.31  tutoring, lower instructor-to-learner ratios, or team teaching; 
  8.32     (4) a longer school day or week during the regular school 
  8.33  year or through a summer program that may be offered directly by 
  8.34  the site or under a performance-based contract with a 
  8.35  community-based organization; 
  8.36     (5) comprehensive and ongoing staff development consistent 
  9.1   with district and site plans according to section 126.70, for 
  9.2   teachers, teacher aides, principals, and other personnel to 
  9.3   improve their ability to identify the needs of these learners 
  9.4   and provide appropriate remediation, intervention, 
  9.5   accommodations, or modifications; 
  9.6      (6) instructional materials and technology appropriate for 
  9.7   meeting the individual needs of these learners; 
  9.8      (7) programs to reduce truancy, encourage completion of 
  9.9   high school, enhance self-concept, provide health services, 
  9.10  provide nutrition services, provide a safe and secure learning 
  9.11  environment, provide coordination for pupils receiving services 
  9.12  from other governmental agencies, provide psychological services 
  9.13  to determine the level of social, emotional, cognitive, and 
  9.14  intellectual development, and provide counseling services, 
  9.15  guidance services, and social work services; 
  9.16     (8) bilingual programs, bicultural programs, and programs 
  9.17  for learners of limited English proficiency; 
  9.18     (9) all day kindergarten; 
  9.19     (10) extended school day and extended school year programs; 
  9.20     (11) substantial parent involvement in developing and 
  9.21  implementing remedial education or intervention plans for a 
  9.22  learner, including learning contracts between the school, the 
  9.23  learner, and the parent that establish achievement goals and 
  9.24  responsibilities of the learner and the learner's parent or 
  9.25  guardian; and 
  9.26     (12) other methods to increase achievement, as needed.  
  9.27     Sec. 13.  Minnesota Statutes 1997 Supplement, section 
  9.28  124A.28, subdivision 1a, is amended to read: 
  9.29     Subd. 1a.  [BUILDING ALLOCATION.] A district must allocate 
  9.30  revenue to each school building in the district where the 
  9.31  children who have generated the revenue are served.  For the 
  9.32  purposes of this section and section 124.17, subdivision 1d, 
  9.33  "building" means education site as defined in section 123.951, 
  9.34  subdivision 1. 
  9.35     If the pupil is served at a site other than one owned and 
  9.36  operated by the district, the revenue shall be paid to the 
 10.1   district and used for services for pupils who generate the 
 10.2   revenue. 
 10.3      Sec. 14.  Laws 1992, chapter 499, article 7, section 31, is 
 10.4   amended to read: 
 10.5      Sec. 31.  [REPEALER.] 
 10.6      Minnesota Statutes 1990, sections 124A.02, subdivision 24; 
 10.7   124A.23, subdivisions 2 and 3; 124A.26, subdivisions 2 and 3; 
 10.8   124A.27; 124A.28; and 124A.29, subdivision 2; and Minnesota 
 10.9   Statutes 1991 Supplement, sections 124A.02, subdivisions 16 and 
 10.10  23; 124A.03, subdivisions 1b, 1c, 1d, 1e, 1f, 1g, 1h, and 1i; 
 10.11  124A.04; 124A.22, subdivisions 2, 3, 4, 4a, 4b, 8, and 9; 
 10.12  124A.23, subdivisions 1, 4, and 5; 124A.24; 124A.26, subdivision 
 10.13  1; and 124A.29, subdivision 1, are repealed effective June 30, 
 10.14  1999; Laws 1991, chapter 265, article 7, section 35, is repealed.
 10.15     Sec. 15.  Laws 1997, First Special Session chapter 4, 
 10.16  article 1, section 61, subdivision 3, is amended to read: 
 10.17     Subd. 3.  [EQUALIZING FACTORS.] The commissioner shall 
 10.18  adjust each equalizing factor established using adjusted net tax 
 10.19  capacity per actual pupil unit under Minnesota Statutes, 
 10.20  chapters 124 and 124A, by dividing the equalizing factor by the 
 10.21  ratio of the statewide tax capacity as calculated using the 
 10.22  class rates in effect for assessment year 1996 to the statewide 
 10.23  tax capacity using the class rates for that assessment year. 
 10.24     Sec. 16.  Laws 1997, First Special Session chapter 4, 
 10.25  article 5, section 28, subdivision 12, is amended to read: 
 10.26     Subd. 12.  [GRADUATION RULE IMPLEMENTATION AT THE SITE 
 10.27  AID.] For graduation rule implementation: 
 10.28       $10,000,000     .....     1998
 10.29     (a) This appropriation shall be paid to districts according 
 10.30  to paragraph (b).  The purpose of the aid is to accelerate the 
 10.31  implementation of the graduation rule throughout all education 
 10.32  sites in the district through intensive staff development and 
 10.33  decentralized decision making.  The board shall work with the 
 10.34  teaching staff in the district to determine the most effective 
 10.35  staff development processes to assure an acceleration of the 
 10.36  implementation.  This appropriation is one-time only. 
 11.1      (b) A district shall receive aid equal to $10 times the 
 11.2   number of fund balance pupil units in the district for fiscal 
 11.3   year 1998 excluding pupil units attributable to shared time 
 11.4   pupils.  At least 30 percent must be used for the purposes of 
 11.5   paragraph (a). 
 11.6      Sec. 17.  Laws 1997, First Special Session chapter 4, 
 11.7   article 9, section 11, is amended to read: 
 11.8      Sec. 11.  [ADDITIONAL TECHNOLOGY REVENUE.] 
 11.9      (a) For fiscal year 1998 only, the allowance in Minnesota 
 11.10  Statutes, section 124A.22, subdivision 10, paragraph (a), is 
 11.11  increased by: 
 11.12     (1) $24 per pupil unit; or 
 11.13     (2) the lesser of $25,000 or $80 per pupil unit. 
 11.14     Revenue received under this section must be used according 
 11.15  to Minnesota Statutes, section 124A.22, subdivision 11, clauses 
 11.16  (15), (18), (19), (23), and (24). 
 11.17     (b) For the purposes of paragraph (a), "pupil unit" means 
 11.18  fund balance pupil unit as defined in Minnesota Statutes, 
 11.19  section 124A.26, subdivision 1, excluding pupil units 
 11.20  attributable to shared time pupils. 
 11.21     Sec. 18.  [COMPENSATION PUPIL UNITS; FISCAL YEAR 1998.] 
 11.22     Notwithstanding Minnesota Statutes, section 124.17, 
 11.23  subdivision 1d, paragraphs (a) to (c), for fiscal year 1998 
 11.24  only, compensation revenue pupil units for buildings with no 
 11.25  free or reduced price lunch counts for fiscal year 1997 because 
 11.26  the site did not participate in the national school lunch 
 11.27  program, shall be computed using data for the current fiscal 
 11.28  year. 
 11.29     Sec. 19.  [REPEALER.] 
 11.30     (a) Minnesota Statutes 1997 Supplement, section 124.912, 
 11.31  subdivisions 2 and 3, are repealed effective for taxes payable 
 11.32  in 1998. 
 11.33     (b) Minnesota Statutes 1996, sections 124A.697; 124A.698; 
 11.34  124A.70; 124A.71; 124A.711, subdivision 1; 124A.72; and 124A.73; 
 11.35  Minnesota Statutes 1997 Supplement, section 124A.711, 
 11.36  subdivision 2, are repealed. 
 12.1      Sec. 20.  [EFFECTIVE DATES.] 
 12.2      Section 2 is effective July 1, 1999.  Sections 3, 4, 7, 8, 
 12.3   10, 11, 13, 16, 17, and 18 are effective for revenue for fiscal 
 12.4   year 1998.  Section 15 is effective for taxes payable in 1998. 
 12.5                              ARTICLE 2 
 12.6                           SPECIAL PROGRAMS
 12.7      Section 1.  Minnesota Statutes 1996, section 120.03, 
 12.8   subdivision 1, is amended to read: 
 12.9      Subdivision 1.  Every child who has a hearing impairment, 
 12.10  visual disability, speech or language impairment, physical 
 12.11  handicap, other health impairment, mental handicap, 
 12.12  emotional/behavioral disorder, specific learning 
 12.13  disability, autism, traumatic brain injury, or deaf/blind 
 12.14  disability and needs special instruction and services, as 
 12.15  determined by the standards of the state board, is a child with 
 12.16  a disability.  In addition, every child under age five three, 
 12.17  and at local district discretion from age three to age seven, 
 12.18  who needs special instruction and services, as determined by the 
 12.19  standards of the state board, because the child has a 
 12.20  substantial delay or has an identifiable physical or mental 
 12.21  condition known to hinder normal development is a child with a 
 12.22  disability. 
 12.23     Sec. 2.  Minnesota Statutes 1996, section 120.101, 
 12.24  subdivision 3, is amended to read: 
 12.25     Subd. 3.  [PARENT DEFINED.] In sections 120.101 to 120.103, 
 12.26  "parent" means a parent, guardian, or other person having legal 
 12.27  custody of a child.  In section 120.17, "parent" means a parent, 
 12.28  guardian, or other person having legal custody of a child under 
 12.29  age 18, but for a pupil age 18 or over, "parent" means the pupil 
 12.30  unless a guardian or conservator has been appointed, in which 
 12.31  case it means the guardian or conservator. 
 12.32     Sec. 3.  Minnesota Statutes 1996, section 120.17, 
 12.33  subdivision 2, is amended to read: 
 12.34     Subd. 2.  [METHOD OF SPECIAL INSTRUCTION.] (a) Special 
 12.35  instruction and services for children with a disability must be 
 12.36  based on the assessment and individual education plan.  The 
 13.1   instruction and services may be provided by one or more of the 
 13.2   following methods: 
 13.3      (1) in connection with attending regular elementary and 
 13.4   secondary school classes; 
 13.5      (2) establishment of special classes; 
 13.6      (3) at the home or bedside of the child; 
 13.7      (4) in other districts; 
 13.8      (5) instruction and services by special education 
 13.9   cooperative centers established under this section, or in 
 13.10  another member district of the cooperative center to which the 
 13.11  resident district of the child with a disability belongs; 
 13.12     (6) in a state residential school or a school department of 
 13.13  a state institution approved by the commissioner; 
 13.14     (7) in other states; 
 13.15     (8) by contracting with public, private or voluntary 
 13.16  agencies; 
 13.17     (9) for children under age five and their families, 
 13.18  programs and services established through collaborative efforts 
 13.19  with other agencies; 
 13.20     (10) for children under age five and their families, 
 13.21  programs in which children with a disability are served with 
 13.22  children without a disability; and 
 13.23     (11) any other method approved by the commissioner. 
 13.24     (b) Preference shall be given to providing special 
 13.25  instruction and services to children under age three and their 
 13.26  families in the residence of the child with the parent or 
 13.27  primary caregiver, or both, present. 
 13.28     (c) The primary responsibility for the education of a child 
 13.29  with a disability shall remain with the district of the child's 
 13.30  residence regardless of which method of providing special 
 13.31  instruction and services is used.  If a district other than a 
 13.32  child's district of residence provides special instruction and 
 13.33  services to the child, then the district providing the special 
 13.34  instruction and services shall notify the child's district of 
 13.35  residence before the child's individual education plan is 
 13.36  developed and shall provide the district of residence an 
 14.1   opportunity to participate in the plan's development.  The 
 14.2   district of residence must inform the parents of the child about 
 14.3   the methods of instruction that are available. 
 14.4      (d) Paragraphs (e) to (i) may be cited as the "blind 
 14.5   persons' literacy rights and education act." 
 14.6      (e) The following definitions apply to paragraphs (f) to 
 14.7   (i). 
 14.8      "Blind student" means an individual who is eligible for 
 14.9   special educational services and who: 
 14.10     (1) has a visual acuity of 20/200 or less in the better eye 
 14.11  with correcting lenses or has a limited field of vision such 
 14.12  that the widest diameter subtends an angular distance of no 
 14.13  greater than 20 degrees; or 
 14.14     (2) has a medically indicated expectation of visual 
 14.15  deterioration. 
 14.16     "Braille" means the system of reading and writing through 
 14.17  touch commonly known as standard English Braille.  
 14.18     "Individualized education plan" means a written statement 
 14.19  developed for a student eligible for special education and 
 14.20  services pursuant to this section and section 602(a)(20) of part 
 14.21  A of the Individuals with Disabilities Education Act, United 
 14.22  States Code, title 20, section 1401(a). 
 14.23     (f) In developing an individualized education plan for each 
 14.24  blind student the presumption must be that proficiency in 
 14.25  Braille reading and writing is essential for the student to 
 14.26  achieve satisfactory educational progress.  The assessment 
 14.27  required for each student must include a Braille skills 
 14.28  inventory, including a statement of strengths and deficits.  
 14.29  Braille instruction and use are not required by this paragraph 
 14.30  if, in the course of developing the student's individualized 
 14.31  education program, team members concur that the student's visual 
 14.32  impairment does not affect reading and writing performance 
 14.33  commensurate with ability.  This paragraph does not require the 
 14.34  exclusive use of Braille if other special education services are 
 14.35  appropriate to the student's educational needs.  The provision 
 14.36  of other appropriate services does not preclude Braille use or 
 15.1   instruction.  Instruction in Braille reading and writing shall 
 15.2   be available for each blind student for whom the 
 15.3   multidisciplinary team has determined that reading and writing 
 15.4   is appropriate. 
 15.5      (g) Instruction in Braille reading and writing must be 
 15.6   sufficient to enable each blind student to communicate 
 15.7   effectively and efficiently with the same level of proficiency 
 15.8   expected of the student's peers of comparable ability and grade 
 15.9   level.  
 15.10     (h) The student's individualized education plan must 
 15.11  specify: 
 15.12     (1) the results obtained from the assessment required under 
 15.13  paragraph (f); 
 15.14     (2) how Braille will be implemented through integration 
 15.15  with other classroom activities; 
 15.16     (3) the date on which Braille instruction will begin; 
 15.17     (4) the length of the period of instruction and the 
 15.18  frequency and duration of each instructional session; 
 15.19     (5) the level of competency in Braille reading and writing 
 15.20  to be achieved by the end of the period and the objective 
 15.21  assessment measures to be used; and 
 15.22     (6) if a decision has been made under paragraph (f) that 
 15.23  Braille instruction or use is not required for the student:  
 15.24     (i) a statement that the decision was reached after a 
 15.25  review of pertinent literature describing the educational 
 15.26  benefits of Braille instruction and use; and 
 15.27     (ii) a specification of the evidence used to determine that 
 15.28  the student's ability to read and write effectively without 
 15.29  Braille is not impaired. 
 15.30     (i) Instruction in Braille reading and writing is a service 
 15.31  for the purpose of special education and services under this 
 15.32  section. 
 15.33     (j) Paragraphs (e) to (i) shall not be construed to 
 15.34  supersede any rights of a parent or guardian of a child with a 
 15.35  disability under federal or state law. 
 15.36     Sec. 4.  Minnesota Statutes 1996, section 120.17, 
 16.1   subdivision 3, is amended to read: 
 16.2      Subd. 3.  [RULES OF THE STATE BOARD.] (a) The state board 
 16.3   shall promulgate adopt or amend rules relative to qualifications 
 16.4   of essential personnel, supervision and training of 
 16.5   paraprofessional personnel, courses of study, methods of 
 16.6   instruction, pupil eligibility, size of classes, rooms, 
 16.7   equipment, supervision, parent consultation, and any other rules 
 16.8   it deems necessary for instruction of children with a 
 16.9   disability.  These rules shall provide standards and procedures 
 16.10  appropriate for the implementation of and within the limitations 
 16.11  of subdivisions 3a and 3b.  These rules shall also provide 
 16.12  standards for the discipline, control, management and protection 
 16.13  of children with a disability.  The state board shall not adopt 
 16.14  rules for pupils served in level 1, 2, or 3, as defined in 
 16.15  Minnesota Rules, part 3525.2340, primarily in the regular 
 16.16  classroom establishing either case loads or the maximum number 
 16.17  of pupils that may be assigned to special education teachers.  
 16.18  The state board, in consultation with the departments of health 
 16.19  and human services, shall adopt permanent rules for instruction 
 16.20  and services for children under age five and their families.  
 16.21  These rules are binding on state and local education, health, 
 16.22  and human services agencies.  The state board shall adopt or 
 16.23  amend rules to determine eligibility for special education 
 16.24  services.  The rules shall include procedures and standards by 
 16.25  which to grant variances for experimental eligibility criteria.  
 16.26  The state board shall, according to section 14.05, subdivision 
 16.27  4, notify a district applying for a variance from the rules 
 16.28  within 45 calendar days of receiving the request whether the 
 16.29  request for the variance has been granted or denied.  If a 
 16.30  request is denied, the board shall specify the program standards 
 16.31  used to evaluate the request and the reasons for denying the 
 16.32  request.  
 16.33     (b) The state's regulatory scheme should support schools by 
 16.34  assuring that all state special education rules adopted by the 
 16.35  state board of education result in one or more of the following 
 16.36  outcomes: 
 17.1      (1) increased time available to teachers for educating 
 17.2   students through direct and indirect instruction; 
 17.3      (2) consistent and uniform access to effective education 
 17.4   programs for students with disabilities throughout the state; 
 17.5      (3) reduced inequalities, and conflict, appropriate due 
 17.6   process hearing procedures, and reduced court actions related to 
 17.7   the delivery of special education instruction and services for 
 17.8   students with disabilities; 
 17.9      (4) clear expectations for service providers and for 
 17.10  students with disabilities; 
 17.11     (5) increased accountability for all individuals and 
 17.12  agencies that provide instruction and other services to students 
 17.13  with disabilities; 
 17.14     (6) greater focus for the state and local resources 
 17.15  dedicated to educating students with disabilities; and 
 17.16     (7) clearer standards for evaluating the effectiveness of 
 17.17  education and support services for students with disabilities. 
 17.18     Sec. 5.  Minnesota Statutes 1996, section 120.17, 
 17.19  subdivision 3b, is amended to read: 
 17.20     Subd. 3b.  [PROCEDURES FOR DECISIONS.] Every district shall 
 17.21  utilize at least the following procedures for decisions 
 17.22  involving identification, assessment, and educational placement 
 17.23  of children with a disability: 
 17.24     (a) Parents and guardians shall receive prior written 
 17.25  notice of:  
 17.26     (1) any proposed formal educational assessment or proposed 
 17.27  denial of a formal educational assessment of their child; 
 17.28     (2) a proposed placement of their child in, transfer from 
 17.29  or to, or denial of placement in a special education program; or 
 17.30     (3) the proposed provision, addition, denial or removal of 
 17.31  special education services for their child; 
 17.32     (b) The district shall not proceed with the initial formal 
 17.33  assessment of a child, the initial placement of a child in a 
 17.34  special education program, or the initial provision of special 
 17.35  education services for a child without the prior written consent 
 17.36  of the child's parent or guardian.  The refusal of a parent or 
 18.1   guardian to consent may be overridden by the decision in a 
 18.2   hearing held pursuant to clause (e) at the district's 
 18.3   initiative; 
 18.4      (c) Parents and guardians shall have an opportunity to meet 
 18.5   with appropriate district staff in at least one conciliation 
 18.6   conference, mediation, or other method of alternative dispute 
 18.7   resolution that to which the parties agree to, if they object to 
 18.8   any proposal of which they are notified pursuant to clause (a).  
 18.9   The mediation process must be offered as an informal alternative 
 18.10  to the due process hearing when a parent or guardian requests a 
 18.11  due process hearing; 
 18.12     (d) Mediation may also be used as a method of dispute 
 18.13  resolution prior to the district or parent requesting a due 
 18.14  process hearing.  Mediation must be conducted by a qualified and 
 18.15  impartial mediator who is trained in effective mediation 
 18.16  techniques and knowledgeable in laws and regulations relating to 
 18.17  the provision of special education and related services.  The 
 18.18  department shall maintain a list of mediators.  The conciliation 
 18.19  process, mediation, or other form of alternative dispute 
 18.20  resolution shall not be used to deny or delay a parent or 
 18.21  guardian's right to a due process hearing.  If the parent or 
 18.22  guardian refuses efforts by the district to conciliate or 
 18.23  mediate the dispute with the school district, the requirement of 
 18.24  an opportunity for conciliation, mediation, or other alternative 
 18.25  dispute resolution shall be deemed to be satisfied.  
 18.26  Notwithstanding other law, in any proceeding following a 
 18.27  conciliation conference or mediation, the school district must 
 18.28  not offer a conciliation conference memorandum or mediation 
 18.29  agreement into evidence, in any subsequent due process hearings 
 18.30  or civil proceedings, except for any portions that describe the 
 18.31  district's final proposed offer of service that agreements 
 18.32  reached through conciliation or mediation which are put into an 
 18.33  individual education plan under subdivision 2 shall be 
 18.34  admissible.  Otherwise, with respect to forms of dispute 
 18.35  resolution, mediation, or conciliation, Minnesota Rule of 
 18.36  Evidence 408 applies.  The department of children, families, and 
 19.1   learning may reimburse the districts or directly pay the costs 
 19.2   of lay advocates, not to exceed $150 per dispute, used in 
 19.3   conjunction with alternative dispute resolution. 
 19.4      (d) The commissioner shall establish a mediation process to 
 19.5   assist parents, school districts, or other parties to resolve 
 19.6   disputes arising out of the identification, assessment, or 
 19.7   educational placement of children with a disability.  The 
 19.8   mediation process must be offered as an informal alternative to 
 19.9   the due process hearing provided under clause (e), but must not 
 19.10  be used to deny or postpone the opportunity of a parent or 
 19.11  guardian to obtain a due process hearing. 
 19.12     (e) Parents, guardians, and the district shall have an 
 19.13  opportunity to obtain an impartial due process hearing initiated 
 19.14  and conducted by and in the school district responsible for 
 19.15  assuring that an appropriate program is provided in accordance 
 19.16  with state board rules, if the parent or guardian continues to 
 19.17  object to:  
 19.18     (1) a proposed formal educational assessment or proposed 
 19.19  denial of a formal educational assessment of their child; 
 19.20     (2) the proposed placement of their child in, or transfer 
 19.21  of their child to a special education program; 
 19.22     (3) the proposed denial of placement of their child in a 
 19.23  special education program or the transfer of their child from a 
 19.24  special education program; 
 19.25     (4) the proposed provision or addition of special education 
 19.26  services for their child; or 
 19.27     (5) the proposed denial or removal of special education 
 19.28  services for their child. 
 19.29     Within five business days after the request for a hearing, 
 19.30  or as directed by the hearing officer, the objecting party shall 
 19.31  provide the other party with a brief written statement of 
 19.32  particulars of the objection, the reasons for the objection, and 
 19.33  the specific remedies sought.  The other party shall provide the 
 19.34  objecting party with a written response to the statement of 
 19.35  objections within five business days of receipt of the statement.
 19.36     The hearing shall take place before an impartial hearing 
 20.1   officer mutually agreed to by the school board and the parent or 
 20.2   guardian.  Within four business days of the receipt of the 
 20.3   request for the hearing, if the parties have not agreed on the 
 20.4   hearing officer, the school board shall request the commissioner 
 20.5   to appoint a hearing officer.  The school board shall include 
 20.6   with the request the name of the person requesting the hearing, 
 20.7   the name of the student, the attorneys involved, if any, and the 
 20.8   date the hearing request was received.  The hearing officer 
 20.9   shall not be a school board member or employee of the school 
 20.10  district where the child resides or of the child's school 
 20.11  district of residence, an employee of any other public agency 
 20.12  involved in the education or care of the child, or any person 
 20.13  with a personal or professional interest which would conflict 
 20.14  with the person's objectivity at the hearing.  A person who 
 20.15  otherwise qualifies as a hearing officer is not an employee of 
 20.16  the district solely because the person is paid by the district 
 20.17  to serve as a hearing officer.  If the hearing officer requests 
 20.18  an independent educational assessment of a child, the cost of 
 20.19  the assessment shall be at district expense.  The proceedings 
 20.20  shall be recorded and preserved, at the expense of the school 
 20.21  district, pending ultimate disposition of the action. 
 20.22     (f) The decision of the hearing officer pursuant to clause 
 20.23  (e) shall be rendered not more than 45 calendar days from the 
 20.24  date of the receipt of the request for the hearing, except that 
 20.25  hearing officers are encouraged to accelerate the timeline to 30 
 20.26  days for children birth through two whose needs change rapidly 
 20.27  and require quick resolution of complaints.  A hearing officer 
 20.28  may not grant specific extensions of time beyond the 45-day 
 20.29  period unless requested by either party for good cause shown on 
 20.30  the record.  The decision of the hearing officer shall be 
 20.31  binding on all parties unless appealed to the commissioner by 
 20.32  the parent; guardian; school board of the district where the 
 20.33  child resides pursuant to clause (g); and also in the case of 
 20.34  children birth through two, by the county board. 
 20.35     The local decision shall: 
 20.36     (1) be in writing; 
 21.1      (2) state the controlling facts upon which the decision is 
 21.2   made in sufficient detail to apprise the parties and the hearing 
 21.3   review officer of the basis and reason for the decision; and 
 21.4      (3) be based on the standards set forth in subdivision 3a 
 21.5   and the rules of the state board. 
 21.6      (g) Any local decision issued pursuant to clauses (e) and 
 21.7   (f) may be appealed to the commissioner within 30 calendar days 
 21.8   of receipt of that written decision, by the parent, guardian, or 
 21.9   the school board of the district responsible for assuring that 
 21.10  an appropriate program is provided in accordance with state 
 21.11  board rules.  The appealing party shall note the specific parts 
 21.12  of the hearing decision being appealed. 
 21.13     If the decision is appealed, a written transcript of the 
 21.14  hearing shall be made by the school district and provided by the 
 21.15  district to the parties involved and the hearing review officer 
 21.16  within five calendar days of the filing of the appeal.  The 
 21.17  hearing review officer shall conduct an appellate review and 
 21.18  issue a final independent decision based on an impartial review 
 21.19  of the local decision and the entire record within 30 calendar 
 21.20  days after the filing of the appeal.  However, the hearing 
 21.21  review officer shall seek additional evidence if necessary and 
 21.22  may afford the parties an opportunity for written or oral 
 21.23  argument; provided any hearing held to seek additional evidence 
 21.24  shall be an impartial due process hearing but shall be deemed 
 21.25  not to be a contested case hearing for purposes of chapter 14.  
 21.26  The hearing review officer may grant specific extensions of time 
 21.27  beyond the 30-day period at the request of any party for good 
 21.28  cause shown on the record. 
 21.29     The final decision shall: 
 21.30     (1) be in writing; 
 21.31     (2) include findings and conclusions; and 
 21.32     (3) be based upon the standards set forth in subdivision 3a 
 21.33  and in the rules of the state board. 
 21.34     (h) The decision of the hearing review officer shall be 
 21.35  final unless appealed by the parent or guardian or school board 
 21.36  to the Minnesota court of appeals or federal district court as 
 22.1   provided by federal law.  State judicial review shall be in 
 22.2   accordance with chapter 14.  
 22.3      (i) The commissioner of children, families, and learning 
 22.4   shall select an individual who has the qualifications enumerated 
 22.5   in this paragraph to serve as the hearing review officer: 
 22.6      (1) the individual must be knowledgeable and impartial; 
 22.7      (2) the individual must not have a personal interest in or 
 22.8   specific involvement with the student who is a party to the 
 22.9   hearing; 
 22.10     (3) the individual must not have been employed as an 
 22.11  administrator by the district that is a party to the hearing; 
 22.12     (4) the individual must not have been involved in the 
 22.13  selection of the administrators of the district that is a party 
 22.14  to the hearing; 
 22.15     (5) the individual must not have a personal, economic, or 
 22.16  professional interest in the outcome of the hearing other than 
 22.17  the proper administration of the federal and state laws, rules, 
 22.18  and policies; 
 22.19     (6) the individual must not have substantial involvement in 
 22.20  the development of a state or local policy or procedures that 
 22.21  are challenged in the appeal; 
 22.22     (7) the individual is not a current employee or board 
 22.23  member of a Minnesota public school district, education 
 22.24  district, intermediate unit or regional education agency, the 
 22.25  department of children, families, and learning, the state board 
 22.26  of education; and 
 22.27     (8) the individual is not a current employee or board 
 22.28  member of a disability advocacy organization or group.  
 22.29     (j) In all appeals, the parent or guardian of the pupil 
 22.30  with a disability or the district that is a party to the hearing 
 22.31  may challenge the impartiality or competence of the proposed 
 22.32  hearing review officer by applying to the hearing review officer.
 22.33     (k) Pending the completion of proceedings pursuant to this 
 22.34  subdivision, unless the district and the parent or guardian of 
 22.35  the child agree otherwise, the child shall remain in the child's 
 22.36  current educational placement and shall not be denied initial 
 23.1   admission to school. 
 23.2      (l) The child's school district of residence, a resident 
 23.3   district, and providing district shall receive notice of and may 
 23.4   be a party to any hearings or appeals under this subdivision. 
 23.5      (m) A school district is not liable for harmless technical 
 23.6   violations of this subdivision or rules implementing this 
 23.7   subdivision if the school district can demonstrate on a 
 23.8   case-by-case basis that the violations did not harm the 
 23.9   student's educational progress or the parent or guardian's right 
 23.10  to notice, participation, or due process. 
 23.11     (n) Within ten calendar days after appointment, the hearing 
 23.12  officer shall schedule and hold a prehearing conference.  At 
 23.13  that conference, or later, the hearing officer may take any 
 23.14  appropriate action that a court might take under Rule 16 of 
 23.15  Minnesota Rules of Civil Procedure including, but not limited 
 23.16  to, scheduling, jurisdiction, and listing witnesses including 
 23.17  expert witnesses. 
 23.18     (o) A hearing officer or hearing review officer appointed 
 23.19  under this subdivision shall be deemed to be an employee of the 
 23.20  state under section 3.732 for the purposes of section 3.736 only.
 23.21     (p) In order to be eligible for selection, hearing officers 
 23.22  and hearing review officers shall participate in training and 
 23.23  follow procedures as designated by the commissioner. 
 23.24     (q) The hearing officer may admit all evidence which 
 23.25  possesses probative value, including hearsay, if it is the type 
 23.26  of evidence on which reasonable, prudent persons are accustomed 
 23.27  to rely in the conduct of their serious affairs.  The hearing 
 23.28  officer shall give effect to the rules of privilege recognized 
 23.29  by law.  Evidence which is incompetent, irrelevant, immaterial, 
 23.30  or unduly repetitious shall be excluded. 
 23.31     Sec. 6.  Minnesota Statutes 1996, section 120.1701, 
 23.32  subdivision 2, is amended to read: 
 23.33     Subd. 2.  [DEFINITIONS.] For the purposes of this section 
 23.34  the following terms have the meaning given them.  
 23.35     (a) "Coordinate" means to provide ready access to a 
 23.36  community's services and resources to meet child and family 
 24.1   needs.  
 24.2      (b) "Core early intervention services" means services that 
 24.3   are available at no cost to children and families.  These 
 24.4   services include: 
 24.5      (1) identification and referral; 
 24.6      (2) screening; 
 24.7      (3) evaluation; 
 24.8      (4) assessment; 
 24.9      (5) service coordination; 
 24.10     (6) special education and related services provided under 
 24.11  section 120.17, subdivision 3a, and United States Code, title 
 24.12  20, section 1401; and 
 24.13     (7) protection of parent and child rights by means of 
 24.14  procedural safeguards. 
 24.15     (c) "County board" means a county board established under 
 24.16  chapter 375. 
 24.17     (d) "Early intervention record" means any personally 
 24.18  identifiable information about a child or the child's family 
 24.19  that is generated by the early intervention system, and that 
 24.20  pertains to evaluation and assessment, development of an 
 24.21  individualized family service plan, and the delivery of early 
 24.22  intervention services. 
 24.23     (e) "Early intervention services" means services provided 
 24.24  in conformity with an individualized family service plan that 
 24.25  are designed to meet the special developmental needs of a child 
 24.26  eligible under Code of Federal Regulations, title 34, part 303, 
 24.27  and the needs of the child's family related to enhancing the 
 24.28  child's development and that are selected in collaboration with 
 24.29  the parent.  These services include core early intervention 
 24.30  services and additional early intervention services listed in 
 24.31  subdivision 4 and services defined in Code of Federal 
 24.32  Regulations, title 34, section 303, et seq. 
 24.33     (f) "Early intervention system" means the total effort in 
 24.34  the state to meet the needs of eligible children and their 
 24.35  families, including, but not limited to: 
 24.36     (1) any public agency in the state that receives funds 
 25.1   under the Individuals with Disabilities Education Act, United 
 25.2   States Code, title 20, sections 1471 to 1485 (Part H, Public Law 
 25.3   Number 102-119); 
 25.4      (2) other state and local agencies administering programs 
 25.5   involved in the provision of early intervention services, 
 25.6   including, but not limited to: 
 25.7      (i) the Maternal and Child Health program under title V of 
 25.8   the Social Security Act, United States Code, title 42, sections 
 25.9   701 to 709; 
 25.10     (ii) the Individuals with Disabilities Education Act, 
 25.11  United States Code, title 20, sections 1411 to 1420 (Part B); 
 25.12     (iii) medical assistance under the Social Security Act, 
 25.13  United States Code, title 42, section 1396 et seq.; 
 25.14     (iv) the Developmental Disabilities Assistance and Bill of 
 25.15  Rights Act, United States Code, title 42, sections 6021 to 6030 
 25.16  (Part B); and 
 25.17     (v) the Head Start Act, United States Code, title 42, 
 25.18  sections 9831 to 9852; and 
 25.19     (3) services provided by private groups or third-party 
 25.20  payers in conformity with an individualized family service plan. 
 25.21     (g) "Eligibility for Part H" means eligibility for early 
 25.22  childhood special education under section 120.03 and Minnesota 
 25.23  Rules, part 3525.2335, subpart 1, items A and B. 
 25.24     (h) "Facilitate payment" means helping families access 
 25.25  necessary public or private assistance that provides payment for 
 25.26  services required to meet needs identified in a service plan, 
 25.27  individual education plan (IEP), individual service plan (ISP), 
 25.28  or individualized family service plan (IFSP), according to time 
 25.29  frames required by the plan.  This may also include activities 
 25.30  to collect fees for services provided on a sliding fee basis, 
 25.31  where permitted by state law. 
 25.32     (i) "Individualized family service plan" or "IFSP" means a 
 25.33  written plan for providing services to a child and the child's 
 25.34  family.  
 25.35     (j) "Interagency child find systems" means activities 
 25.36  developed on an interagency basis with the involvement of 
 26.1   interagency early intervention committees and other relevant 
 26.2   community groups to actively seek out, identify, and refer 
 26.3   infants and young children with, or at risk of, disabilities, 
 26.4   and their families. 
 26.5      (k) "Local primary agency" means the agency designated 
 26.6   jointly by the school and county board under subdivision 4. 
 26.7      (l) "Natural environments" means the child's home and 
 26.8   community settings in which children without disabilities 
 26.9   participate. 
 26.10     (l) (m) "Parent" means the biological parent with parental 
 26.11  rights, adoptive parent, legal guardian, or surrogate parent. 
 26.12     (m) (n) "Part H state plan" means the annual state plan 
 26.13  application approved by the federal government under the 
 26.14  Individuals with Disabilities Education Act, United States Code, 
 26.15  title 20, section 1471 et seq. (Part H, Public Law Number 
 26.16  102-119). 
 26.17     (n) (o) "Pay for" means using federal, state, local, and 
 26.18  private dollars available for early intervention services. 
 26.19     (o) (p) "Respite" means short-term, temporary care provided 
 26.20  to a child with a disability due to the temporary absence or 
 26.21  need for relief of the family member or members or primary 
 26.22  caregiver, normally providing the care. 
 26.23     (p) (q) "State lead agency" means the state agency 
 26.24  receiving federal funds under the Individuals with Disabilities 
 26.25  Education Act, United States Code, title 20, section 1471 et 
 26.26  seq. (Part H, Public Law Number 102-119). 
 26.27     (q) (r) "Surrogate parent" means a person appointed by the 
 26.28  local education agency to assure that the rights of the child to 
 26.29  early intervention services are protected.  A person cannot be a 
 26.30  surrogate parent to a child for whom the person provides early 
 26.31  intervention services. 
 26.32     Sec. 7.  Minnesota Statutes 1997 Supplement, section 
 26.33  120.1701, subdivision 3, is amended to read: 
 26.34     Subd. 3.  [STATE INTERAGENCY COORDINATING COUNCIL.] An 
 26.35  interagency coordinating council of at least 17, but not more 
 26.36  than 25 members is established, in compliance with Public Law 
 27.1   Number 102-119, section 682.  The members shall be appointed by 
 27.2   the governor.  Council members shall elect the council chair.  
 27.3   The representative of the commissioner of children, families, 
 27.4   and learning may not serve as the chair.  The council shall be 
 27.5   composed of at least five parents, including persons of color, 
 27.6   of children with disabilities under age 12, including at least 
 27.7   three parents of a child with a disability under age seven, five 
 27.8   representatives of public or private providers of services for 
 27.9   children with disabilities under age five, including a special 
 27.10  education director, county social service director, local Head 
 27.11  Start director, and a community health services or public health 
 27.12  nursing administrator, one member of the senate, one member of 
 27.13  the house of representatives, one representative of teacher 
 27.14  preparation programs in early childhood-special education or 
 27.15  other preparation programs in early childhood intervention, at 
 27.16  least one representative of advocacy organizations for children 
 27.17  with disabilities under age five, one physician who cares for 
 27.18  young children with special health care needs, one 
 27.19  representative each from the commissioners of commerce, 
 27.20  children, families, and learning, health, human services, and 
 27.21  economic security a representative from the state agency 
 27.22  responsible for child care, and a representative from Indian 
 27.23  health services or a tribal council.  Section 15.059, 
 27.24  subdivisions 2 to 5, apply to the council.  The council shall 
 27.25  meet at least quarterly.  
 27.26     The council shall address methods of implementing the state 
 27.27  policy of developing and implementing comprehensive, 
 27.28  coordinated, multidisciplinary interagency programs of early 
 27.29  intervention services for children with disabilities and their 
 27.30  families. 
 27.31     The duties of the council include recommending policies to 
 27.32  ensure a comprehensive and coordinated system of all state and 
 27.33  local agency services for children under age five with 
 27.34  disabilities and their families.  The policies must address how 
 27.35  to incorporate each agency's services into a unified state and 
 27.36  local system of multidisciplinary assessment practices, 
 28.1   individual intervention plans, comprehensive systems to find 
 28.2   children in need of services, methods to improve public 
 28.3   awareness, and assistance in determining the role of interagency 
 28.4   early intervention committees.  
 28.5      Each year by June 1, the council shall recommend to the 
 28.6   governor and the commissioners of children, families, and 
 28.7   learning, health, human services, commerce, and economic 
 28.8   security policies for a comprehensive and coordinated system. 
 28.9      Notwithstanding any other law to the contrary, the state 
 28.10  interagency coordinating council shall expire on June 30, 2001. 
 28.11     Sec. 8.  Minnesota Statutes 1996, section 120.1701, 
 28.12  subdivision 5, is amended to read: 
 28.13     Subd. 5.  [INTERAGENCY EARLY INTERVENTION COMMITTEES.] (a) 
 28.14  A school district, group of districts, or special education 
 28.15  cooperative, in cooperation with the health and human service 
 28.16  agencies located in the county or counties in which the district 
 28.17  or cooperative is located, shall establish an interagency early 
 28.18  intervention committee for children with disabilities under age 
 28.19  five and their families.  Committees shall include 
 28.20  representatives of local and regional health, education, and 
 28.21  county human service agencies; county boards; school boards; 
 28.22  early childhood family education programs; parents of young 
 28.23  children with disabilities under age 12; current service 
 28.24  providers; and may also include representatives from other 
 28.25  private or public agencies.  The committee shall elect a chair 
 28.26  from among its members and shall meet at least quarterly. 
 28.27     (b) The committee shall develop and implement interagency 
 28.28  policies and procedures concerning the following ongoing duties: 
 28.29     (1) develop public awareness systems designed to inform 
 28.30  potential recipient families of available programs and services; 
 28.31     (2) implement interagency child find systems designed to 
 28.32  actively seek out, identify, and refer infants and young 
 28.33  children with, or at risk of, disabilities and their families; 
 28.34     (3) establish and evaluate the identification, referral, 
 28.35  child and family assessment systems, procedural safeguard 
 28.36  process, and community learning systems to recommend, where 
 29.1   necessary, alterations and improvements; 
 29.2      (4) assure the development of individualized family service 
 29.3   plans for all eligible infants and toddlers with disabilities 
 29.4   from birth through age two, and their families, and individual 
 29.5   education plans and individual service plans when necessary to 
 29.6   appropriately serve children with disabilities, age three and 
 29.7   older, and their families and recommend assignment of financial 
 29.8   responsibilities to the appropriate agencies.  Agencies are 
 29.9   encouraged to develop individual family service plans for 
 29.10  children with disabilities, age three and older; 
 29.11     (5) implement a process for assuring that services involve 
 29.12  cooperating agencies at all steps leading to individualized 
 29.13  programs; 
 29.14     (6) facilitate the development of a transitional plan if a 
 29.15  service provider is not recommended to continue to provide 
 29.16  services; 
 29.17     (7) identify the current services and funding being 
 29.18  provided within the community for children with disabilities 
 29.19  under age five and their families; 
 29.20     (8) develop a plan for the allocation and expenditure of 
 29.21  additional state and federal early intervention funds under 
 29.22  United States Code, title 20, section 1471 et seq. (Part H, 
 29.23  Public Law Number 102-119) and United States Code, title 20, 
 29.24  section 631, et seq. (Chapter I, Public Law Number 89-313); and 
 29.25     (9) develop a policy that is consistent with section 13.05, 
 29.26  subdivision 9, and federal law to enable a member of an 
 29.27  interagency early intervention committee to allow another member 
 29.28  access to data classified as not public. 
 29.29     (c) The local committee shall also: 
 29.30     (1) participate in needs assessments and program planning 
 29.31  activities conducted by local social service, health and 
 29.32  education agencies for young children with disabilities and 
 29.33  their families; 
 29.34     (2) review and comment on the early intervention section of 
 29.35  the total special education system for the district, the county 
 29.36  social service plan, the section or sections of the community 
 30.1   health services plan that address needs of and service 
 30.2   activities targeted to children with special health care needs, 
 30.3   and the section of the maternal and child health special project 
 30.4   grants that address needs of and service activities targeted to 
 30.5   children with chronic illness and disabilities; and 
 30.6      (3) prepare a yearly summary on the progress of the 
 30.7   community in serving young children with disabilities, and their 
 30.8   families, including the expenditure of funds, the identification 
 30.9   of unmet service needs identified on the individual family 
 30.10  services plan and other individualized plans, and local, state, 
 30.11  and federal policies impeding the implementation of this section.
 30.12     (d) The summary must be organized following a format 
 30.13  prescribed by the commissioner of the state lead agency and must 
 30.14  be submitted to each of the local agencies and to the state 
 30.15  interagency coordinating council by October 1 of each year. 
 30.16     The departments of children, families, and learning, 
 30.17  health, and human services must provide assistance to the local 
 30.18  agencies in developing cooperative plans for providing services. 
 30.19     Sec. 9.  Minnesota Statutes 1996, section 120.1701, 
 30.20  subdivision 11, is amended to read: 
 30.21     Subd. 11.  [PAYOR OF LAST RESORT.] (a) For fiscal years 
 30.22  1995 and 1996, The state lead agency shall establish maintain a 
 30.23  reserve account from federal sources to pay for services in 
 30.24  dispute or to pay for early intervention services when local 
 30.25  agencies have exhausted all other public and private funds 
 30.26  available for Part H eligible children. 
 30.27     (b) The lead agency shall report to the legislature by 
 30.28  January 1, 1996, regarding county board expenditures for early 
 30.29  intervention services and the continuing need and funding of the 
 30.30  reserve account.  
 30.31     Sec. 10.  [120.1702] [SPECIAL EDUCATION HEARINGS.] 
 30.32     Special education hearings shall be conducted under 
 30.33  sections 120.1703 to 120.1709.  
 30.34     Sec. 11.  [120.1703] [HEARING REQUEST.] 
 30.35     Subdivision 1.  [REQUEST FOR A HEARING.] (a) A child's 
 30.36  parent or guardian or the district may request the other party 
 31.1   to participate in an impartial special education due process 
 31.2   hearing conducted by and in the district responsible for 
 31.3   ensuring a special education program appropriate to the child's 
 31.4   needs, if the parent or guardian objects to:  
 31.5      (1) a proposed formal educational assessment or proposed 
 31.6   denial of a formal educational assessment of the child; 
 31.7      (2) the proposed placement of the child in, or transfer of 
 31.8   the child to, a special education program; 
 31.9      (3) the proposed denial of placement of the child in a 
 31.10  special education program or the transfer of the child from a 
 31.11  special education program; 
 31.12     (4) the proposed provision or addition of special education 
 31.13  services for the child; or 
 31.14     (5) the proposed denial or removal of special education 
 31.15  services for the child. 
 31.16     The child's district of residence, a resident district, and 
 31.17  the providing district may be a party to a hearing under this 
 31.18  paragraph.  
 31.19     (b) A parent or guardian may report issues related to 
 31.20  district noncompliance to the department for investigation 
 31.21  through the department's complaint resolution system established 
 31.22  under section 120.1710. 
 31.23     Subd. 2.  [CONTENT OF REQUEST.] A request for a hearing 
 31.24  under subdivision 1 shall be in writing and include:  
 31.25     (1) the name of the child; 
 31.26     (2) the address of the child; 
 31.27     (3) the name of the school the child is attending; and 
 31.28     (4) a description of the problem relating to the proposed 
 31.29  initiation or change, including specific facts relating to the 
 31.30  problem and specific remedies.  
 31.31     Sec. 12.  [120.1704] [HEARING.] 
 31.32     Subdivision 1.  [SELECTION OF HEARING OFFICER.] (a) Within 
 31.33  four business days of the receipt of the request for a hearing, 
 31.34  the parent or guardian and the district may choose a hearing 
 31.35  officer if the parties agree and the hearing officer agrees to 
 31.36  hear the case.  At the parent or guardian's request or if the 
 32.1   parties are unable to choose a hearing officer, the district 
 32.2   shall immediately request the commissioner to appoint a hearing 
 32.3   officer.  The district request shall be in writing and include:  
 32.4      (1) the name and address of the person requesting the 
 32.5   hearing; 
 32.6      (2) the name of the child; 
 32.7      (3) the names and addresses of the attorneys involved, if 
 32.8   any; and 
 32.9      (4) the date the hearing request was received. 
 32.10     (b) When requested by the district under subdivision 1, the 
 32.11  commissioner shall appoint a hearing officer from the roster 
 32.12  established under section 120.1708.  The parent or guardian or 
 32.13  the district may challenge the impartiality or competency of the 
 32.14  hearing officer by applying to the hearing officer. 
 32.15     Subd. 2.  [RESPONSE.] Within seven calendar days of the 
 32.16  receipt of the request for a hearing, or as directed by the 
 32.17  hearing officer, the party receiving the request shall provide 
 32.18  the party who requested the hearing a written response to the 
 32.19  problem relating to the proposed initiation or change described 
 32.20  in the special hearing request under section 120.1703, 
 32.21  subdivision 2, including specific facts relating to the problem 
 32.22  and specific remedies. 
 32.23     Subd. 3.  [PREHEARING CONFERENCE.] Within ten calendar days 
 32.24  after accepting a request from the parties, or appointment by 
 32.25  the commissioner under subdivision 1, the hearing officer shall 
 32.26  schedule and hold a prehearing conference.  
 32.27     Subd. 4.  [DISCLOSURE OF DOCUMENTS.] At least ten calendar 
 32.28  days before the hearing, or as ordered by the hearing officer, 
 32.29  the parties shall send to the hearing officer:  
 32.30     (1) written information concerning the child's last 
 32.31  educational assessment or reassessment; 
 32.32     (2) copies of tests, evaluations, or other admissible 
 32.33  reports or written information relating to the assessment or 
 32.34  reassessment, if under dispute; 
 32.35     (3) a copy of the child's current IEP; 
 32.36     (4) a copy of the child's proposed IEP, if under dispute; 
 33.1   and 
 33.2      (5) other information from the district or parent or 
 33.3   guardian as the hearing officer may have requested.  
 33.4      Subd. 5.  [HEARING OFFICER RESPONSIBILITY.] A hearing 
 33.5   officer may:  
 33.6      (1) request an independent educational evaluation of the 
 33.7   child at district expense; 
 33.8      (2) require the district to develop an alternative IEP; 
 33.9      (3) order written submissions by the parties; 
 33.10     (4) upon agreement of the parties, decide the matter in 
 33.11  dispute without a hearing upon submission of written documents; 
 33.12     (5) determine which party shall proceed first; 
 33.13     (6) admit all evidence that possesses probative value, 
 33.14  including hearsay, if it is the type of evidence on which 
 33.15  reasonable, prudent persons are accustomed to rely in the 
 33.16  conduct of their serious affairs; 
 33.17     (7) exclude evidence that is incompetent, irrelevant, 
 33.18  immaterial, or unduly repetitious; 
 33.19     (8) take appropriate steps to ensure the orderly 
 33.20  presentation of evidence and protection of the rights of the 
 33.21  parties of the hearing; 
 33.22     (9) grant specific extensions of time beyond the 45-day 
 33.23  period if requested by a party for good cause shown on the 
 33.24  record; and 
 33.25     (10) dismiss a hearing request when the requesting party 
 33.26  fails to proceed to hearing in a timely manner.  
 33.27     Subd. 6.  [EXPEDITED HEARING.] If a district determines 
 33.28  that it is dangerous for the child to be in the current 
 33.29  placement during the pendency of a hearing, the local 
 33.30  educational agency may request an expedited hearing.  
 33.31     Subd. 7.  [RECORD.] A record of the hearing shall be made 
 33.32  at the expense of the district.  
 33.33     Subd. 8.  [TECHNICAL VIOLATIONS.] A district shall not be 
 33.34  liable for a harmless technical violation of section 120.17 or 
 33.35  rules implementing section 120.17.  For the purposes of this 
 33.36  subdivision, "harmless technical violation" means a violation 
 34.1   that does not harm the child's educational progress or deny the 
 34.2   parent or guardian's right to notice, participation, or due 
 34.3   process. 
 34.4      Sec. 13.  [120.1705] [DECISION.] 
 34.5      Subdivision 1.  [TIMELINE.] The decision of the hearing 
 34.6   officer shall be made not more than 45 calendar days from the 
 34.7   date of the receipt of the request for a hearing by the 
 34.8   nonrequesting party, except that the hearing officer may grant 
 34.9   specific extensions of time under section 120.1704, subdivision 
 34.10  5, clause (9).  Hearing officers are encouraged to accelerate 
 34.11  the timeline to 30 days for children birth through age two. 
 34.12     Subd. 2.  [DECISION.] (a) The hearing officer shall 
 34.13  specify, by issue, the prevailing party. 
 34.14     (b) The hearing officer may order the placement or services 
 34.15  recommended by the district, the placement or services requested 
 34.16  by the parent or guardian, either of those placements or 
 34.17  services with modifications, or alternative programs or services 
 34.18  as may be required to ensure the provision of a free appropriate 
 34.19  public education to the child in the least restrictive 
 34.20  environment. 
 34.21     (c) When a hearing officer determines that a child, in 
 34.22  order to have received a free appropriate public education, 
 34.23  should have received a program or services that a district did 
 34.24  not provide, the hearing officer may order the district to 
 34.25  reimburse the cost of the program or services actually provided 
 34.26  to the child.  The reimbursement shall only be retroactive to 
 34.27  the date the parent or guardian gave notice to the district that 
 34.28  the program or services offered were inappropriate. 
 34.29     (d) The decision of the hearing officer shall be binding on 
 34.30  all parties unless appealed to the commissioner by the parent, 
 34.31  guardian, or district where the child resides, or, in the case 
 34.32  of children birth through age two, by the county board.  The 
 34.33  decision shall: 
 34.34     (1) be in writing and available electronically, at the 
 34.35  request of the parent or guardian; 
 34.36     (2) state the controlling facts upon which the decision is 
 35.1   made in sufficient detail to apprise the parties and the hearing 
 35.2   review officer of the basis and reason for the decision; and 
 35.3      (3) be based on the standards under section 120.17, 
 35.4   subdivision 3a, and the rules of the state board. 
 35.5      Sec. 14.  [120.1706] [APPEAL.] 
 35.6      Subdivision 1.  [TIMELINE.] A decision made by a hearing 
 35.7   officer under section 120.1705 may be appealed by the parent, 
 35.8   guardian, or district to the commissioner within 30 calendar 
 35.9   days of the date of the written decision.  The appeal must be in 
 35.10  writing and state the specific facts and conclusion of law being 
 35.11  appealed. 
 35.12     Subd. 2.  [HEARING REVIEW OFFICER.] The commissioner shall 
 35.13  appoint a hearing review officer from the roster established 
 35.14  under section 120.1708.  The parent or guardian or the district 
 35.15  may challenge the impartiality or competence of the hearing 
 35.16  review officer by applying to the hearing review officer. 
 35.17     Subd. 3.  [TRANSCRIPT.] If the decision of a hearing 
 35.18  officer is appealed, a written transcript of the hearing shall 
 35.19  be made by the district and provided to the parties involved and 
 35.20  the hearing review officer within five calendar days of the date 
 35.21  of filing of the appeal with the commissioner.  If the decision 
 35.22  is not appealed, the record of the hearing shall be sent to the 
 35.23  department. 
 35.24     Subd. 4.  [SCOPE OF REVIEW.] The hearing review officer 
 35.25  shall issue a decision on the facts and conclusions being 
 35.26  appealed within 30 calendar days after the date of filing of the 
 35.27  appeal with the commissioner.  The decision shall be based on an 
 35.28  impartial review of the decision made by the hearing officer and 
 35.29  the entire record.  The hearing review officer shall affirm the 
 35.30  decision of the hearing officer or reverse or modify the 
 35.31  decision if the substantial rights of the petitioners have been 
 35.32  prejudiced because the hearing officer's decision is: 
 35.33     (1) in violation of constitutional provisions; 
 35.34     (2) in excess of the statutory authority or jurisdiction of 
 35.35  the hearing officer; 
 35.36     (3) made upon unlawful procedure; 
 36.1      (4) affected by other error of law; 
 36.2      (5) unsupported by substantial evidence in view of the 
 36.3   entire record as submitted; or 
 36.4      (6) arbitrary or capricious. 
 36.5      The hearing review officer shall request additional 
 36.6   evidence if necessary and may give the parties an opportunity 
 36.7   for written or oral argument.  A hearing of additional evidence 
 36.8   shall be an impartial due process hearing and not a contested 
 36.9   case hearing for purposes of chapter 14.  
 36.10     Subd. 5.  [EXTENSIONS.] The hearing review officer may 
 36.11  grant specific extensions of time beyond the 30-day period at 
 36.12  the request of any party for good cause shown on the record. 
 36.13     Subd. 6.  [REVIEW DECISION.] (a) The final decision shall: 
 36.14     (1) be in writing; 
 36.15     (2) include findings and conclusions; and 
 36.16     (3) be based on the standards under section 120.17, 
 36.17  subdivision 3a, and in the rules of the state board.  
 36.18     The hearing review officer shall specify, by issue, the 
 36.19  prevailing party. 
 36.20     (b) The decision of the hearing review officer shall be 
 36.21  final unless appealed by the parent or guardian or school board 
 36.22  to the Minnesota court of appeals or federal district court 
 36.23  within 30 days of the date the review decision was issued.  The 
 36.24  state judicial review shall be according to chapter 14.  
 36.25     Sec. 15.  [120.1707] [CHILD PLACEMENT PENDING RESOLUTION.] 
 36.26     Pending the completion of proceedings under sections 
 36.27  120.1703 to 120.1706, unless the district and the parent or 
 36.28  guardian of the child agree otherwise, the child shall remain in 
 36.29  the child's current educational placement and shall not be 
 36.30  denied initial admission to school.  If the hearing is regarding 
 36.31  a disciplinary action, an interim alternative education setting, 
 36.32  or a manifestation determination, the child shall remain in the 
 36.33  interim alternative education setting pending the decision of 
 36.34  the hearing officer, or 45 days, whichever occurs first, unless 
 36.35  the parent or guardian and the district agree otherwise.  If the 
 36.36  district proposes to change the child's interim alternative 
 37.1   education placement after expiration of the placement, the child 
 37.2   shall remain in the placement prior to the interim alternative 
 37.3   education setting, except as ordered by the hearing officer.  
 37.4      Sec. 16.  [120.1708] [HEARING AND HEARING REVIEW OFFICERS.] 
 37.5      Subdivision 1.  [QUALIFICATIONS.] A qualified hearing 
 37.6   officer or hearing review officer must: 
 37.7      (1) be knowledgeable and impartial; 
 37.8      (2) not have a personal interest in or specific involvement 
 37.9   with the pupil who is a party to the hearing; 
 37.10     (3) not have been employed as an administrator by the 
 37.11  district that is a party to the hearing; 
 37.12     (4) not have been involved in the selection of the 
 37.13  administrators of the district that is a party to the hearing; 
 37.14     (5) not have a personal, economic, or professional interest 
 37.15  in the outcome of the hearing other than the proper 
 37.16  administration of the federal and state laws, rules, and 
 37.17  policies; 
 37.18     (6) not have substantial involvement in the development of 
 37.19  a state or local policy or procedures that are challenged in the 
 37.20  hearing; 
 37.21     (7) not be a current employee or board member of a 
 37.22  Minnesota public school district, education district, 
 37.23  intermediate unit, regional education agency, the department of 
 37.24  children, families, and learning, or the state board of 
 37.25  education; and 
 37.26     (8) not be a current employee or board member of a parent 
 37.27  disability advocacy organization or group. 
 37.28     Subd. 2.  [ROSTER.] (a) The commissioner shall maintain a 
 37.29  roster of hearing officers and a roster of hearing review 
 37.30  officers.  In order to be eligible for selection, hearing 
 37.31  officers and hearing review officers shall participate in 
 37.32  training and follow procedures as determined by the commissioner.
 37.33     (b) If a hearing officer or hearing review officer fails to 
 37.34  comply with applicable state and federal law and rule including 
 37.35  timelines, procedures, and training, the commissioner may remove 
 37.36  the hearing officer or hearing review officer from the roster. 
 38.1      Subd. 3.  [STATUS.] A hearing officer or hearing review 
 38.2   officer appointed under sections 120.1702 to 120.1707 shall be 
 38.3   considered an employee of the state under section 3.732 for the 
 38.4   purposes of section 3.736 only. 
 38.5      Subd. 4.  [HEARING OFFICER.] A person who otherwise 
 38.6   qualifies as a hearing officer is not an employee of the 
 38.7   district solely because the person is paid by the district to 
 38.8   serve as a hearing officer. 
 38.9      Sec. 17.  [120.1709] [IMPLEMENTATION.] 
 38.10     If the district fails to implement the hearing officer's or 
 38.11  hearing review officer's final decision, and no appeal has been 
 38.12  timely filed, the parent or guardian may file a complaint with 
 38.13  the department for investigation through the department's 
 38.14  complaint resolution system.  The commissioner shall impose 
 38.15  sanctions under section 124.15. 
 38.16     Sec. 18.  [120.1710] [COMPLAINT RESOLUTION SYSTEM.] 
 38.17     The department of children, families, and learning shall 
 38.18  establish a complaint resolution system to resolve allegations 
 38.19  of a district's noncompliance with state education code 
 38.20  provisions that directly affect the providing of services to 
 38.21  eligible children with disabilities and United States Code, 
 38.22  title 20, section 33, et seq. 
 38.23     Sec. 19.  Minnesota Statutes 1996, section 120.173, 
 38.24  subdivision 6, is amended to read: 
 38.25     Subd. 6.  [PUPIL RIGHTS.] A pupil participating in the 
 38.26  program must be individually evaluated according to the pupil's 
 38.27  actual abilities and needs.  A pupil who is eligible for 
 38.28  services under section 120.17 is entitled to procedural 
 38.29  protections provided under Public Law Number 94-142 United 
 38.30  States Code, title 20, section 33 in any matter that affects the 
 38.31  identification, evaluation, placement, or change in placement of 
 38.32  a pupil.  The district must ensure the protection of a pupil's 
 38.33  civil rights, provide equal educational opportunities, and 
 38.34  prohibit discrimination.  Failure to comply with this 
 38.35  subdivision will at least cause a district to become ineligible 
 38.36  to participate in the program.  Notwithstanding rules of the 
 39.1   state board of education, a pupil's rights under this section 
 39.2   cannot be waived by the state board. 
 39.3      Sec. 20.  Minnesota Statutes 1996, section 121.163, is 
 39.4   amended by adding a subdivision to read: 
 39.5      Subd. 4.  [STATE RULES.] If the granting federal agency 
 39.6   adopts requirements for eligibility to receive federal funds 
 39.7   necessitating changes in state rule, the state board shall adopt 
 39.8   or amend state rules in conformity with state law and federal 
 39.9   regulations. 
 39.10     Sec. 21.  Minnesota Statutes 1996, section 123.935, 
 39.11  subdivision 1, is amended to read: 
 39.12     Subdivision 1.  [PROVIDED SERVICES.] The state board of 
 39.13  education shall promulgate rules under the provisions of chapter 
 39.14  14 requiring each school district or other intermediary service 
 39.15  area:  (a) to provide each year upon formal request by a 
 39.16  specific date by or on behalf of a nonpublic school pupil 
 39.17  enrolled in a nonpublic school located in that district or area, 
 39.18  the same specific health services as are provided for public 
 39.19  school pupils by the district where the nonpublic school is 
 39.20  located; and (b) to provide each year upon formal request by a 
 39.21  specific date by or on behalf of a nonpublic school secondary 
 39.22  pupil enrolled in a nonpublic school located in that district or 
 39.23  area, the same specific guidance and counseling services as are 
 39.24  provided for public school secondary pupils by the district 
 39.25  where the nonpublic school is located.  The district where the 
 39.26  nonpublic school is located shall provide the necessary 
 39.27  transportation within the district boundaries between the 
 39.28  nonpublic school and a public school or neutral site for 
 39.29  nonpublic school pupils who are provided pupil support services 
 39.30  pursuant to this section.  Each request for pupil support 
 39.31  services shall set forth the guidance and counseling or health 
 39.32  services requested by or on behalf of all eligible nonpublic 
 39.33  school pupils enrolled in a given nonpublic school.  No district 
 39.34  or intermediary service area shall expend an amount for these 
 39.35  pupil support services which exceeds the amount allotted to it 
 39.36  under this section. 
 40.1      Sec. 22.  Minnesota Statutes 1996, section 124.15, is 
 40.2   amended to read: 
 40.3      124.15 [REDUCTION OF AID FOR VIOLATION OF LAW.] 
 40.4      Subdivision 1.  The amount of special state and federal 
 40.5   aids to which a district is entitled shall be the amount 
 40.6   computed according to statutes.  The annual state aid 
 40.7   certificate made by the commissioner to the commissioner of 
 40.8   finance shall show the amount of any reductions made. 
 40.9      Subd. 2.  Whenever the board of the district authorizes or 
 40.10  permits within the district violations of law by: 
 40.11     (1) employment in a public school of the district of a 
 40.12  teacher who does not hold a valid teaching license or permit, or 
 40.13     (2) noncompliance with a mandatory rule of general 
 40.14  application promulgated by the state board in accordance with 
 40.15  statute in the absence of special circumstances making 
 40.16  enforcement thereof inequitable, contrary to the best interest 
 40.17  of, or imposing an extraordinary hardship on, the district 
 40.18  affected, or 
 40.19     (3) continued performance by the district of a contract 
 40.20  made for the rental of rooms or buildings for school purposes or 
 40.21  for the rental of any facility owned or operated by or under the 
 40.22  direction of any private organization, which contract has been 
 40.23  disapproved where time for review of the determination of 
 40.24  disapproval has expired and no proceeding for review is pending, 
 40.25  or 
 40.26     (4) any practice which is a violation of sections 1 and 2 
 40.27  of article 13 of the Constitution of the state of Minnesota, or 
 40.28     (5) failure to provide reasonably for the school attendance 
 40.29  to which a resident pupil is entitled under Minnesota Statutes, 
 40.30  or 
 40.31     (6) noncompliance with state and federal laws prohibiting 
 40.32  discrimination because of race, color, creed, religion, national 
 40.33  origin, sex, age, marital status, status with regard to public 
 40.34  assistance or disability, as defined in including section 363.03 
 40.35  363.01, or 
 40.36     (7) noncompliance with state or federal laws pertinent to 
 41.1   the education of students with disabilities, 
 41.2      the special state or federal aid to which a district is 
 41.3   otherwise entitled for any school year shall be reduced in the 
 41.4   amount and upon the procedure provided in this section or, in 
 41.5   the case of the violation stated in clause (1), upon the 
 41.6   procedure provided in section 124.19, subdivision 3. 
 41.7      Subd. 2a.  After consultation with the commissioner of 
 41.8   human rights, the state board of education shall adopt rules in 
 41.9   conformance with chapter 14 which direct school districts to 
 41.10  file with the commissioner of children, families, and learning 
 41.11  assurances of compliance with state and federal laws prohibiting 
 41.12  discrimination and which specify the information required to be 
 41.13  submitted in support of the assurances.  The assurances shall be 
 41.14  submitted in the form and manner determined by the 
 41.15  commissioner.  The commissioner of children, families, and 
 41.16  learning shall provide copies of the assurances and the 
 41.17  supportive any investigative information to the commissioner of 
 41.18  human rights.  If, after reviewing the assurances and the 
 41.19  supportive information it appears that one or more violations of 
 41.20  the Minnesota human rights act are occurring in the district, 
 41.21  the commissioner of human rights shall notify the commissioner 
 41.22  of children, families, and learning of the violations, and the 
 41.23  commissioner of children, families, and learning may then 
 41.24  proceed pursuant to subdivision 3. 
 41.25     Subd. 3.  When it appears that one or more of the 
 41.26  violations enumerated is occurring in a district, the 
 41.27  commissioner shall forthwith notify the board of that district 
 41.28  in writing thereof.  Such notice shall specify the violations, 
 41.29  set a reasonable time within which the district shall correct 
 41.30  the specified violations, describe the correction required, and 
 41.31  advise that if the correction is not made within the time 
 41.32  allowed, special specified state or federal aids to the district 
 41.33  will be reduced.  The time allowed for correction may be 
 41.34  extended by the commissioner if there is reasonable ground 
 41.35  therefor. 
 41.36     Subd. 4.  In the event the commissioner orders a reduction 
 42.1   in the total amount of state aids for the year, or the district 
 42.2   is determined ineligible for federal aids under United States 
 42.3   Code, title 20, section 1400, et seq., the board to which such 
 42.4   notice is given may by a majority vote of the whole board decide 
 42.5   to dispute that the specified violation exists or that the time 
 42.6   allowed is reasonable or the correction specified is correct, or 
 42.7   that the commissioner may reduce aids, in which case written 
 42.8   notice of such decision shall be given the commissioner.  If the 
 42.9   commissioner, after such further investigation as the 
 42.10  commissioner deems necessary, adheres to the previous notice, 
 42.11  such board shall be entitled to a hearing by the state board, in 
 42.12  which event a time and place shall be set therefor and notice be 
 42.13  given by mail to the board of the district.  The commissioner 
 42.14  shall appoint an impartial hearing officer with the cost of the 
 42.15  hearing paid by the district.  The state board shall adopt rules 
 42.16  governing the proceedings for hearings which shall be designed 
 42.17  to give a full and fair hearing and permit interested parties an 
 42.18  opportunity to produce evidence relating to the issues 
 42.19  involved.  Such rules may provide that any question of fact to 
 42.20  be determined upon such review may be referred to one or more 
 42.21  members of the board or to an employee of the state board acting 
 42.22  as a referee to hear evidence and report to the state board the 
 42.23  testimony taken. The state board, or any person designated to 
 42.24  receive evidence upon a review under this act, shall have the 
 42.25  same right to issue subpoenas and administer oaths and parties 
 42.26  to the review shall have the same right to subpoenas issued as 
 42.27  are accorded with respect to proceedings before the industrial 
 42.28  commission.  There shall be a stenographic record made of all 
 42.29  testimony given and other proceedings during such hearing, and 
 42.30  as far as practicable rules governing reception of evidence in 
 42.31  courts shall obtain.  The decision recommendation of the state 
 42.32  board hearing officer shall be in writing and the controlling 
 42.33  facts upon which the decision is made shall be stated in 
 42.34  sufficient detail to apprise the parties and the reviewing court 
 42.35  the basis and reason of the decision.  The decision hearing 
 42.36  officer's recommendation shall be confined to whether or not the 
 43.1   specified violations or any of them existed at the date of the 
 43.2   commissioner's first notice, whether such violations as did 
 43.3   exist were corrected within the time permitted, and whether such 
 43.4   violations require reduction of the state aids under this 
 43.5   section. 
 43.6      Subd. 5.  [VIOLATION; AID REDUCTION.] If the violation 
 43.7   specified is corrected within the time permitted, or if the 
 43.8   commissioner on being notified of the district board's decision 
 43.9   to dispute decides the violation does not exist, or if the state 
 43.10  board commissioner decides after hearing that no violation 
 43.11  specified in the commissioner's notice existed at the time of 
 43.12  it, or that any that existed were corrected within the time 
 43.13  permitted, there shall be no reduction of state aids payable to 
 43.14  the school district.  Otherwise, the commissioner shall 
 43.15  determine the amount of state or federal aids to be reduced.  If 
 43.16  the commissioner determines that all state aids payable to the 
 43.17  district for the year in which the violation occurred shall be 
 43.18  reduced, the reduction shall be made as follows:  The total 
 43.19  amount of state aids to which the district may be entitled shall 
 43.20  be reduced in the proportion that the period during which a 
 43.21  specified violation continued, computed from the last day of the 
 43.22  time permitted for correction, bears to the total number of days 
 43.23  school is held in the district during the year in which a 
 43.24  violation exists, multiplied by 60 percent of the basic revenue, 
 43.25  as defined in section 124A.22, subdivision 2, of the district 
 43.26  for that year.  In the event a local agency fails to provide a 
 43.27  free and appropriate education according to this section and 
 43.28  United States Code, title 20, section 33, the department shall 
 43.29  use the funds reduced under this section to ensure the provision 
 43.30  of a free and appropriate education. 
 43.31     Subd. 6.  Reductions in aid under this section and section 
 43.32  124.19 shall be from general education aid or federal aid flowed 
 43.33  to the district by the department of children, families, and 
 43.34  learning.  If there is not sufficient general education aid 
 43.35  remaining to be paid for the school year in which the violation 
 43.36  occurred, the reduction shall be from the other aids listed in 
 44.1   section 124.155, subdivision 2, that are payable to the district 
 44.2   for that year in the order in which the aids are listed in 
 44.3   section 124.155, subdivision 2.  If there is not a sufficient 
 44.4   amount of state aids remaining payable to the district for the 
 44.5   school year in which the violation occurred to permit the full 
 44.6   amount of reduction required, that part of the required 
 44.7   reduction not taken from that school year's aids will be taken 
 44.8   from the state aids payable to the district for the next school 
 44.9   year, and the reduction will be made from the various aids 
 44.10  payable for the next year in the order above specified. 
 44.11     Subd. 7.  [APPEAL.] A decision of the state board under 
 44.12  this section may be appealed in accordance with chapter 14.  
 44.13     Subd. 8.  Any notice to be given the board of a district 
 44.14  will be deemed given when a copy thereof is mailed, registered, 
 44.15  to the superintendent of the district, if there is a 
 44.16  superintendent, and to the clerk of the board of the district, 
 44.17  unless it is shown that neither the superintendent nor the clerk 
 44.18  in fact received such notice in the ordinary course of mail, in 
 44.19  which event time for correction will be accordingly extended by 
 44.20  the commissioner so that a reasonable time will be allowed from 
 44.21  actual receipt of notice for correction.  If notice is sent by 
 44.22  the commissioner with respect to a violation which is continued 
 44.23  by the district in a succeeding year, no separate notice for 
 44.24  that violation for the succeeding year will be required. 
 44.25  Proceedings initiated by such notice shall include any 
 44.26  continuing violation notwithstanding that a part thereof occurs 
 44.27  in a year different from that in which it started. The 
 44.28  commissioner may require reasonable proof of the time that a 
 44.29  violation ceased for the determination of the amount of aids to 
 44.30  be withheld.  Costs and disbursements of the review by the 
 44.31  district court, exclusive of those incurred in the 
 44.32  administrative proceedings, may be taxed against the losing 
 44.33  party and in the event taxed against the state shall be paid 
 44.34  from the appropriations made to the department for the payment 
 44.35  of special state aids. 
 44.36     Sec. 23.  Minnesota Statutes 1996, section 124.17, 
 45.1   subdivision 2, is amended to read: 
 45.2      Subd. 2.  [AVERAGE DAILY MEMBERSHIP.] Membership for pupils 
 45.3   in grades kindergarten through 12 and for prekindergarten pupils 
 45.4   with disabilities shall mean the number of pupils on the current 
 45.5   roll of the school, counted from the date of entry until 
 45.6   withdrawal.  The date of withdrawal shall mean the day the pupil 
 45.7   permanently leaves the school or the date it is officially known 
 45.8   that the pupil has left or has been legally excused.  However, a 
 45.9   pupil, regardless of age, who has been absent from school for 15 
 45.10  consecutive school days during the regular school year or for 
 45.11  five consecutive school days during summer school or 
 45.12  intersession classes of flexible school year programs without 
 45.13  receiving instruction in the home or hospital shall be dropped 
 45.14  from the roll and classified as withdrawn.  Nothing in this 
 45.15  section shall be construed as waiving the compulsory attendance 
 45.16  provisions cited in section 120.101.  Average daily membership 
 45.17  shall equal the sum for all pupils of the number of days of the 
 45.18  school year each pupil is enrolled in the district's schools 
 45.19  divided by the number of days the schools are in session.  Days 
 45.20  of summer school or intersession classes of flexible school year 
 45.21  programs shall only be included in the computation of membership 
 45.22  for pupils with a disability not appropriately served at level 
 45.23  4, 5, or 6 of the continuum of placement model described in 
 45.24  Minnesota Rules, part 3525.0200 primarily in the regular 
 45.25  classroom. 
 45.26     Sec. 24.  Minnesota Statutes 1996, section 127.27, 
 45.27  subdivision 2, is amended to read: 
 45.28     Subd. 2.  "Dismissal" means the denial of the appropriate 
 45.29  current educational program to any pupil, including exclusion, 
 45.30  expulsion, and suspension.  It does not include removal from 
 45.31  class.  
 45.32     Sec. 25.  Minnesota Statutes 1996, section 127.27, 
 45.33  subdivision 4, is amended to read: 
 45.34     Subd. 4.  "Exclusion" means an action taken by the school 
 45.35  board to prevent enrollment or reenrollment of a pupil for a 
 45.36  period that shall not extend beyond the end of the current 
 46.1   school year. 
 46.2      Sec. 26.  Minnesota Statutes 1997 Supplement, section 
 46.3   127.27, subdivision 10, is amended to read: 
 46.4      Subd. 10.  [SUSPENSION.] "Suspension" means an action by 
 46.5   the school administration, under rules promulgated by the school 
 46.6   board, prohibiting a pupil from attending school for a period of 
 46.7   no more than ten school days.  If a suspension is longer than 
 46.8   five days, the suspending administrator must provide the 
 46.9   superintendent with a reason for the longer suspension.  This 
 46.10  definition does not apply to dismissal from school for one 
 46.11  school day or less, except as provided in federal law for a 
 46.12  student with a disability.  Each suspension action shall may 
 46.13  include a readmission plan.  The readmission plan shall include, 
 46.14  where appropriate, a provision for implementing alternative 
 46.15  educational services upon readmission and may not be used to 
 46.16  extend the suspension.  The school administration may not impose 
 46.17  consecutive suspensions against the same pupil for the same 
 46.18  course of conduct, or incident of misconduct, except where the 
 46.19  pupil will create an immediate and substantial danger to self or 
 46.20  to surrounding persons or property, or where the district is in 
 46.21  the process of initiating an expulsion, in which case the school 
 46.22  administration may extend the suspension up to a total of 15 
 46.23  days.  In the case of a pupil with a disability, a suspension 
 46.24  may not exceed ten school days school districts must comply with 
 46.25  applicable federal law.  The school administration shall 
 46.26  implement alternative educational services to the extent that 
 46.27  when the suspension exceeds five ten days.  A separate 
 46.28  administrative conference is required for each period of 
 46.29  suspension. 
 46.30     Sec. 27.  Minnesota Statutes 1997 Supplement, section 
 46.31  127.27, subdivision 11, is amended to read: 
 46.32     Subd. 11.  [ALTERNATIVE EDUCATIONAL SERVICES.] "Alternative 
 46.33  educational services" may include, but are not limited to, 
 46.34  special tutoring, modified curriculum, modified instruction, 
 46.35  other modifications or adaptations, instruction through 
 46.36  electronic media, special education services as indicated by 
 47.1   appropriate assessment, homebound instruction, supervised 
 47.2   homework, or enrollment in another district or in an alternative 
 47.3   learning center under section 124C.45 selected so as to allow 
 47.4   the pupil to make progress towards meeting graduation standards, 
 47.5   although in a different setting. 
 47.6      Sec. 28.  Minnesota Statutes 1997 Supplement, section 
 47.7   127.281, is amended to read: 
 47.8      127.281 [EXCLUSION AND EXPULSION OF PUPILS WITH A 
 47.9   DISABILITY.] 
 47.10     When a pupil who has an individual education plan is 
 47.11  excluded or expelled under sections 127.26 to 127.39 for 
 47.12  misbehavior that is not a manifestation of the pupil's 
 47.13  disability, the district shall continue to provide special 
 47.14  education and related services after a period of suspension, if 
 47.15  suspension is imposed.  The district shall initiate a review of 
 47.16  the individual education plan within five ten school days of 
 47.17  commencing an expulsion, exclusion, or a suspension. 
 47.18     Sec. 29.  Minnesota Statutes 1997 Supplement, section 
 47.19  127.31, subdivision 15, is amended to read: 
 47.20     Subd. 15.  [ADMISSION OR READMISSION PLAN.] A school 
 47.21  administrator shall prepare and enforce an admission or 
 47.22  readmission plan for any pupil who is suspended, excluded, or 
 47.23  expelled from school.  The plan may include measures to improve 
 47.24  the pupil's behavior and require parental involvement in the 
 47.25  admission or readmission process, and may indicate the 
 47.26  consequences to the pupil of not improving the pupil's behavior. 
 47.27     Sec. 30.  Minnesota Statutes 1997 Supplement, section 
 47.28  127.32, is amended to read: 
 47.29     127.32 [APPEAL.] 
 47.30     A party to an exclusion or expulsion decision made under 
 47.31  sections 127.26 to 127.39 may appeal the decision to the 
 47.32  commissioner of children, families, and learning within 21 
 47.33  calendar days of school board action.  Upon being served with a 
 47.34  notice of appeal, the district shall provide the commissioner 
 47.35  and the parent or guardian with a complete copy of the hearing 
 47.36  record within five days of its receipt of the notice of appeal.  
 48.1   All written submissions by the appellant must be submitted and 
 48.2   served on the respondent within ten days of its actual receipt 
 48.3   of the transcript.  All written submissions by the respondent 
 48.4   must be submitted and served on the appellant within ten days of 
 48.5   its actual receipt of the written submissions of the appellant.  
 48.6   The decision of the school board must be implemented during the 
 48.7   appeal to the commissioner. 
 48.8      In an appeal under this section, the commissioner may 
 48.9   affirm the decision of the agency or may reverse or modify the 
 48.10  decision if the substantial rights of the petitioners may have 
 48.11  been prejudiced because the administrative findings, inferences, 
 48.12  conclusions, or decisions are: 
 48.13     (1) in violation of constitutional provisions; 
 48.14     (2) in excess of the statutory authority or jurisdiction of 
 48.15  the school district; 
 48.16     (3) made upon unlawful procedure, except as provided in 
 48.17  section 127.311; 
 48.18     (4) affected by other error of law; 
 48.19     (5) unsupported by substantial evidence in view of the 
 48.20  entire record submitted; or 
 48.21     (6) arbitrary or capricious. 
 48.22  The commissioner or the commissioner's representative shall make 
 48.23  a final decision based upon the record of evidence presented at 
 48.24  the hearing.  The commissioner shall issue a decision within 30 
 48.25  calendar days of receiving the entire record and the parties' 
 48.26  written submission on appeal.  The commissioner's decision shall 
 48.27  be final and binding upon the parties after the time for appeal 
 48.28  expires under section 127.33. 
 48.29     Sec. 31.  Minnesota Statutes 1997 Supplement, section 
 48.30  127.36, subdivision 1, is amended to read: 
 48.31     Subdivision 1.  [EXCLUSIONS AND EXPULSIONS.] The school 
 48.32  board shall report each exclusion or expulsion within 30 days of 
 48.33  the effective date of the action to the commissioner of 
 48.34  children, families, and learning.  This report shall include a 
 48.35  statement of alternative educational services given the pupil 
 48.36  before beginning exclusion or expulsion proceedings, and the 
 49.1   reason for, the effective date, and the duration of the 
 49.2   exclusion or expulsion.  
 49.3      Sec. 32.  [RULEMAKING AUTHORITY.] 
 49.4      (a) The state board of education shall adopt or amend as 
 49.5   necessary rules to bring the state of Minnesota into compliance 
 49.6   with new requirements of United States Code, title 20, section 
 49.7   33. 
 49.8      (b) The state board of education shall adopt or amend as 
 49.9   necessary rules to establish, correct, and clarify requirements 
 49.10  for pupil eligibility for special education, due process hearing 
 49.11  procedures, and discipline for students with disabilities. 
 49.12     (c) The state board of education shall adopt necessary 
 49.13  rules to regulate the supervision and training of 
 49.14  paraprofessional personnel. 
 49.15     Sec. 33.  [REPEALER.] 
 49.16     Minnesota Statutes 1996, section 120.1701, subdivision 21; 
 49.17  and Minnesota Statutes 1997 Supplement, section 127.30, 
 49.18  subdivision 3, are repealed. 
 49.19                             ARTICLE 3
 49.20                      EDUCATION POLICY ISSUES
 49.21     Section 1.  Minnesota Statutes 1996, section 121.585, 
 49.22  subdivision 1, is amended to read: 
 49.23     Subdivision 1.  [PROGRAM ESTABLISHED.] A learning year 
 49.24  program provides instruction throughout the year.  A pupil may 
 49.25  participate in the program and accelerate attainment of grade 
 49.26  level requirements or graduation requirements.  A learning year 
 49.27  program may begin after the close of the regular school year in 
 49.28  June.  The program may be for students in one or more grade 
 49.29  levels from kindergarten through grade 12.  
 49.30     Students may participate in the program if they reside in:  
 49.31     (1) a district that has been designated a learning year 
 49.32  site under subdivision 2; 
 49.33     (2) a district that is a member of the same education 
 49.34  district as a site; or 
 49.35     (3) a district that participates in the same area learning 
 49.36  center program as a site.  
 50.1      Sec. 2.  Minnesota Statutes 1996, section 122.23, 
 50.2   subdivision 6, is amended to read: 
 50.3      Subd. 6.  The commissioner shall, upon receipt of a plat, 
 50.4   forthwith examine it and approve, modify or reject it.  The 
 50.5   commissioner shall also approve or reject any proposal contained 
 50.6   in the resolution or petition regarding the disposition of the 
 50.7   bonded debt of the component districts.  If the plat shows the 
 50.8   boundaries of proposed separate election districts and if the 
 50.9   commissioner modifies the plat, the commissioner shall also 
 50.10  modify the boundaries of the proposed separate election 
 50.11  districts.  The commissioner shall conduct a hearing public 
 50.12  meeting at the nearest county seat in the area upon reasonable 
 50.13  notice to the affected districts and county boards if requested 
 50.14  within 20 days after submission of the plat.  Such a hearing The 
 50.15  public meeting may be requested by the board of any affected 
 50.16  district, a county board of commissioners, or the petition of 20 
 50.17  resident voters living within the area proposed for 
 50.18  consolidation.  The commissioner shall endorse on the plat 
 50.19  action regarding any proposal for the disposition of the bonded 
 50.20  debt of component districts and the reasons for these actions 
 50.21  and within after a minimum of 20 days, but no more than 60 days 
 50.22  of the date of the receipt of the plat, the commissioner shall 
 50.23  return it to the county auditor who submitted it.  The 
 50.24  commissioner shall furnish a copy of that plat, and the 
 50.25  supporting statement and its endorsement to the auditor of each 
 50.26  county containing any land area of the proposed new district.  
 50.27  If land area of a particular county was included in the plat, as 
 50.28  submitted by the county auditor, and all of such land area is 
 50.29  excluded in the plat as modified and approved, the commissioner 
 50.30  shall also furnish a copy of the modified plat, supporting 
 50.31  statement, and any endorsement to the auditor of such county. 
 50.32     Sec. 3.  Minnesota Statutes 1996, section 123.935, 
 50.33  subdivision 2, is amended to read: 
 50.34     Subd. 2.  [LOCATION OF SERVICES.] Health guidance and 
 50.35  counseling services may be provided to nonpublic school pupils 
 50.36  pursuant to this section at a public school, a neutral site, the 
 51.1   nonpublic school, or any other suitable location.  Guidance and 
 51.2   counseling services may be provided to nonpublic school pupils 
 51.3   pursuant to this section only at a public school or a neutral 
 51.4   site.  District or intermediary service area personnel and 
 51.5   representatives of the nonpublic school pupils receiving pupil 
 51.6   support services shall hold an annual consultation regarding the 
 51.7   type of services, provider of services, and the location of the 
 51.8   provision of these services.  The district board or intermediary 
 51.9   service area governing board shall make the final decision on 
 51.10  the location of the provision of these services. 
 51.11     Sec. 4.  Minnesota Statutes 1996, section 124.646, 
 51.12  subdivision 4, is amended to read: 
 51.13     Subd. 4.  [SCHOOL FOOD SERVICE FUND.] (a) The expenses 
 51.14  described in this subdivision must be recorded as provided in 
 51.15  this subdivision. 
 51.16     (b) In each school district, the expenses for a school food 
 51.17  service program for pupils must be attributed to a school food 
 51.18  service fund.  Under a food service program, the school food 
 51.19  service may prepare or serve milk, meals, or snacks in 
 51.20  connection with school or community service activities. 
 51.21     (c) Revenues and expenditures for food service activities 
 51.22  must be recorded in the food service fund.  The costs of 
 51.23  processing applications, accounting for meals, preparing and 
 51.24  serving food, providing kitchen custodial services, and other 
 51.25  expenses involving the preparing of meals or the kitchen section 
 51.26  of the lunchroom may be charged to the food service fund or to 
 51.27  the general fund of the district.  The costs of lunchroom 
 51.28  supervision, lunchroom custodial services, lunchroom utilities, 
 51.29  and other administrative costs of the food service program must 
 51.30  be charged to the general fund. 
 51.31     That portion of superintendent and fiscal manager costs 
 51.32  that can be documented as attributable to the food service 
 51.33  program may be charged to the food service fund provided that 
 51.34  the school district does not employ or contract with a food 
 51.35  service director or other individual who manages the food 
 51.36  service program, or food service management company.  If the 
 52.1   cost of the superintendent or fiscal manager is charged to the 
 52.2   food service fund, the charge must be at a wage rate not to 
 52.3   exceed the statewide average for food service directors as 
 52.4   determined by the department of children, families, and learning.
 52.5      (d) Capital expenditures for the purchase of food service 
 52.6   equipment must be made from the capital general fund and not the 
 52.7   food service fund, unless two conditions apply: 
 52.8      (1) the unreserved balance in the food service fund at the 
 52.9   end of the last fiscal year is greater than the cost of the 
 52.10  equipment to be purchased; and 
 52.11     (2) the department of children, families, and learning has 
 52.12  approved the purchase of the equipment. 
 52.13     (e) If the two conditions set out in paragraph (d) apply, 
 52.14  the equipment may be purchased from the food service fund. 
 52.15     (f) If a deficit in the food service fund exists at the end 
 52.16  of a fiscal year, and the deficit is not eliminated by revenues 
 52.17  from food service operations in the next fiscal year, then the 
 52.18  deficit must be eliminated by a permanent fund transfer from the 
 52.19  general fund at the end of that second fiscal year.  However, if 
 52.20  a district contracts with a food service management company 
 52.21  during the period in which the deficit has accrued, the deficit 
 52.22  must be eliminated by a payment from the food service management 
 52.23  company. 
 52.24     (g) Notwithstanding paragraph (f), a district may incur a 
 52.25  deficit in the food service fund for up to three years without 
 52.26  making the permanent transfer if the district submits to the 
 52.27  commissioner by January 1 of the second fiscal year a plan for 
 52.28  eliminating that deficit at the end of the third fiscal year. 
 52.29     (h) If a surplus in the food service fund exists at the end 
 52.30  of a fiscal year for three successive years, a district may 
 52.31  recode for that fiscal year the costs of lunchroom supervision, 
 52.32  lunchroom custodial services, lunchroom utilities, and other 
 52.33  administrative costs of the food service program charged to the 
 52.34  general fund according to paragraph (c) and charge those costs 
 52.35  to the food service fund in a total amount not to exceed the 
 52.36  amount of surplus in the food service fund. 
 53.1      Sec. 5.  Minnesota Statutes 1997 Supplement, section 
 53.2   124.6475, is amended to read: 
 53.3      124.6475 [SUMMER FOOD SERVICE REPLACEMENT AID.] 
 53.4      States funds are available to compensate 
 53.5   department-approved summer food program sponsors for reduced 
 53.6   federal operating reimbursement rates under Public Law Number 
 53.7   104-193, the federal summer food service program.  A sponsor is 
 53.8   eligible for summer food service replacement aid equal to the 
 53.9   sum of the following amounts: 
 53.10     (1) for breakfast service, subtract the current year 
 53.11  maximum reimbursement rate from the 1996 maximum reimbursement 
 53.12  rate and multiply the result by the number of breakfasts the 
 53.13  district served up to four cents per breakfast served by the 
 53.14  sponsor during the current school program year; 
 53.15     (2) for lunch or supper service, subtract the current year 
 53.16  maximum reimbursement rate from the 1996 maximum reimbursement 
 53.17  rate and multiply the result by the number of lunches and 
 53.18  suppers the district served up to 14 cents per lunch or supper 
 53.19  served by the sponsor during the current school program year; 
 53.20  and 
 53.21     (3) for supplement service, subtract the current year 
 53.22  maximum reimbursement rate from the 1996 maximum reimbursement 
 53.23  rate and multiply the result by the number of up to ten cents 
 53.24  per supplement meals served by the district served sponsor 
 53.25  during the current school program year. 
 53.26     Sec. 6.  Minnesota Statutes 1997 Supplement, section 
 53.27  124.648, subdivision 3, is amended to read: 
 53.28     Subd. 3.  [PROGRAM GUIDELINES; DUTIES OF THE COMMISSIONER.] 
 53.29  (a) The commissioner shall: 
 53.30     (1) encourage all districts to participate in the school 
 53.31  milk program for kindergartners; 
 53.32     (2) prepare program guidelines, not subject to chapter 14 
 53.33  until July 1, 1998, which will effectively and efficiently 
 53.34  distribute appropriated and donated money to participating 
 53.35  districts; and 
 53.36     (3) seek donations and matching funds from appropriate 
 54.1   private and public sources. 
 54.2      (b) Program guidelines may provide for disbursement to 
 54.3   districts through a mechanism of prepayments or by reimbursement 
 54.4   for approved program expenses. 
 54.5      (c) It is suggested that the benefits of the school milk 
 54.6   program may reach the largest number of kindergarten students if 
 54.7   districts are allowed to submit annual bids stating the 
 54.8   per-serving level of support that would be acceptable to the 
 54.9   district for their participation in the program.  The 
 54.10  commissioner would review all bids received and approve bids in 
 54.11  sufficient number and value to maximize the provision of milk to 
 54.12  kindergarten students consistent with available funds. 
 54.13     Sec. 7.  Minnesota Statutes 1996, section 125.191, is 
 54.14  amended to read: 
 54.15     125.191 [LICENSE AND DEGREE EXEMPTION FOR HEAD COACH.] 
 54.16     Notwithstanding section 125.03, subdivision 1, a school 
 54.17  district may employ as a head varsity coach of an 
 54.18  interscholastic sport at its secondary school a person who does 
 54.19  not have a license as head varsity coach of interscholastic 
 54.20  sports and who does not have a bachelor's degree if: 
 54.21     (1) in the judgment of the school board, the person has the 
 54.22  knowledge and experience necessary to coach the sport; 
 54.23     (2) the position has been posted as a vacancy within the 
 54.24  present teaching staff for a period of 30 days and no licensed 
 54.25  coaches have applied for the position; 
 54.26     (3) the person can verify completion of six quarter 
 54.27  credits, or the equivalent, or 60 clock hours of instruction in 
 54.28  first aid and the care and prevention of athletic injuries; and 
 54.29     (4) the person (3) can verify completion of a coaching 
 54.30  methods or theory course. 
 54.31     Notwithstanding section 125.121, a person employed as a 
 54.32  head varsity coach under this section has an annual contract as 
 54.33  a coach that the school board may or may not renew as the board 
 54.34  sees fit, after annually posting the position as required in 
 54.35  clause (2) and no licensed coach has applied for the position. 
 54.36     Sec. 8.  Minnesota Statutes 1997 Supplement, section 
 55.1   126.79, subdivision 3, is amended to read: 
 55.2      Subd. 3.  [LOCAL PROGRAMS; APPLICATION PROCEDURE; GRANT 
 55.3   AWARDS.] The commissioner shall make grants to eligible 
 55.4   applicants programs to establish local learn and earn programs.  
 55.5   Each program shall operate for at least a four-year period.  A 
 55.6   local program shall select its participants from among eligible 
 55.7   students who are entering or are in the ninth grade at the 
 55.8   inception of the program.  A program may not refill a program 
 55.9   slot with another student if a student drops out of the program. 
 55.10  Students selected to participate in the program shall be 
 55.11  considered part of the program class and students who drop out 
 55.12  may return to the program at any time prior to graduation. 
 55.13     The commissioner shall establish the application procedure 
 55.14  for awarding grants under this section.  The commissioner shall 
 55.15  begin awarding grants by September 1, 1997. 
 55.16     Sec. 9.  Minnesota Statutes 1997 Supplement, section 
 55.17  126.79, subdivision 6, is amended to read: 
 55.18     Subd. 6.  [PROGRAM COMPONENTS.] Each learn and earn 
 55.19  graduation achievement program must provide the opportunity for 
 55.20  participating students to complete: 
 55.21     (1) 250 hours each year, not including regular required 
 55.22  classroom hours, in basic education competency skills; 
 55.23     (2) 250 hours each year of service to the community 
 55.24  service; and 
 55.25     (3) 250 hours each year of cultural enrichment and personal 
 55.26  development, including but not limited to adult mentoring; 
 55.27  participating in community cultural events; developing life 
 55.28  skills for use in the home, workplace, and community; and 
 55.29  learning to set goals, manage time, and make appropriate 
 55.30  behavior choices for varying social situations. 
 55.31     Sec. 10.  Minnesota Statutes 1997 Supplement, section 
 55.32  126.79, subdivision 7, is amended to read: 
 55.33     Subd. 7.  [PROGRAM INCENTIVES.] (a) Each participating 
 55.34  student shall receive a monetary stipend for each hour spent in 
 55.35  a program component activity, plus a bonus upon completion of 
 55.36  each component during each year of the program. 
 56.1      (b) An additional amount equal to or greater than each 
 56.2   student's earned stipends and bonuses must be deposited for the 
 56.3   student in a post-secondary opportunities interest-bearing 
 56.4   account, established by the commissioner through the higher 
 56.5   education services office.  A student may, upon graduation from 
 56.6   high school, use the funds accumulated for the student toward 
 56.7   the costs, including tuition, books, and lab fees, of attending 
 56.8   a Minnesota post-secondary institution or participating in a 
 56.9   Minnesota post-secondary program in a career training program.  
 56.10  Funds accumulated for a student shall be available to the 
 56.11  student from the time the student graduates from high school 
 56.12  until ten years after the date the student entered the learn and 
 56.13  earn graduation achievement program.  After ten years, the 
 56.14  commissioner shall close the student's account and any remaining 
 56.15  money in the account shall revert to the general fund. 
 56.16     The commissioner shall establish a procedure for providing 
 56.17  the monetary stipends and bonuses to students.  The commissioner 
 56.18  may delegate this authority to grantees. 
 56.19     Sec. 11.  Minnesota Statutes 1997 Supplement, section 
 56.20  126.79, subdivision 8, is amended to read: 
 56.21     Subd. 8.  [PROGRAM COORDINATOR.] The local learn and earn 
 56.22  program coordinator must maintain contact with all participating 
 56.23  students and their families; work with the school to link 
 56.24  students with the resources needed to improve their educational 
 56.25  skills; arrange for service to the community service and 
 56.26  cultural enrichment opportunities for students; maintain records 
 56.27  regarding student completion of program component hours; and 
 56.28  perform other administrative duties as necessary.  A program 
 56.29  coordinator must, to the extent possible, agree to remain with 
 56.30  the program for four years to provide continuity of adult 
 56.31  contact to the participating students. 
 56.32     Sec. 12.  Minnesota Statutes 1997 Supplement, section 
 56.33  126.79, subdivision 9, is amended to read: 
 56.34     Subd. 9.  [EVALUATION AND REPORTS.] The commissioner shall 
 56.35  collect information about participating students and a 
 56.36  demographically similar control group and shall evaluate the 
 57.1   short-term and long-term benefits participating students receive 
 57.2   from the learn and earn graduation achievement program, based on 
 57.3   the outcome measures specified in subdivision 2, and any other 
 57.4   criteria established by the commissioner as part of the grant 
 57.5   application process.  The evaluation must include a statistical 
 57.6   comparison of students participating in the program and the 
 57.7   control group.  The commissioner shall track follow 
 57.8   participating students and the control group for a minimum of 
 57.9   six years from the start of the program.  The commissioner shall 
 57.10  submit a preliminary report to the governor and the chairs of 
 57.11  the senate and house committees having jurisdiction over 
 57.12  education and crime prevention by December 15, 2000, regarding 
 57.13  continuation of the learn and earn graduation achievement 
 57.14  program for participating schools and expansion of the program 
 57.15  to additional schools.  The commissioner shall submit a final 
 57.16  report on this initial project by December 15, 2002. 
 57.17     Sec. 13.  Laws 1997, First Special Session chapter 4, 
 57.18  article 8, section 4, subdivision 3, is amended to read: 
 57.19     Subd. 3.  [BOARD; APPOINTMENTS.] The resolution in 
 57.20  subdivision 2 shall provide for a library board of five seven 
 57.21  members as follows:  two members appointed by the school board 
 57.22  of independent school district No. 319, one member appointed by 
 57.23  each town board located within independent school district No. 
 57.24  319 boundaries, one member appointed by the council of the city 
 57.25  of Nashwauk, and one member appointed by the Itasca county board 
 57.26  to represent the unorganized towns within the school district 
 57.27  territory. 
 57.28     Sec. 14.  [REPEALER.] 
 57.29     Minnesota Statutes 1996, sections 123.932, subdivision 9; 
 57.30  and 124.647, are repealed.